Construction Company Owner Pleads Guilty to Fraud

June 18, 2015

A construction company owner pleaded guilty to defrauding the government and was ordered to pay $1.6 million to settle a whistleblower lawsuit, reports the Milwaukee Journal Sentinel.

Scott Watry, of Watry Homes, is accused of paying employees less than the mandated prevailing wage to do federally funded work at a public housing project in Milwaukee, Wis. He is accused of telling federal officials he was paying the proper rate and then pocketing the difference.

The Journal Sentinel reports a plea agreement calls for Watry to pay approximately $660,000 in restitution to the employees of his New Berlin construction company and $1 million to the government. Federal prosecutors will recommend a sentence of one year and a day in prison.