U.S. Department of Justice
Federal Bureau of Investigation
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U.S. Department of Justice Federal Bureau of Investigation |
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| In Reply, Please Refer to Release No. |
219 South Dearborn Street Chicago, Illinois 60604 |
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November 21, 2003 PALOS PARK COUPLE CHARGED IN $500,000 MAIL FRAUD SCHEME Thomas J. Kneir, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois announced today that a Federal Grand Jury in Chicago returned a four count indictment against a Palos Park, Illinois couple,alleging that they defrauded the Chicago District Council of Carpenters (CDCC) of over $500,000 in benefit payments for union members. According to the indictment, RICHARD A. ZERTH, age 60, and his wife, BARBARA T. ZERTH, age 56, both of southwest suburban Palos Park, who were the owners and operators or Roof Right Roofing and Insulation, located at 14045 South Cleveland in Posen, Illinois, had entered into a contract with at 14045 South Cleveland in Posen, Illinois, had entered into a contract with the CDCC to hire and employ only union carpenters for all of their labor needs. As part of this contract, they were obligated to submit to the union's Trust Fund, monthly reports detailing the number of hours worked by each union member, along with a check for their benefits based on these hours. The indictment alleges that, in an effort to avoid paying these benefits, the ZERTHS established a "shell company", K&K supply, which they used to hire and pay non-union carpenters. By violating their agreement with the CDCC, the indictment alleges that between 1994 and 1998, the ZERTHS saved in excess of $500,000 in labor benefits based on a payroll to non-union carpenters of approximately 4 million dollars. The ZERTHS will have an initial appearance in U.S. District Court in Chicago, sometime next week. If convicted of the charges against them, both RICHARD and BARBARA ZERTH face a possible sentence of up to 20 years incarceration. The public is reminded that an indictment is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law. EDITOR's NOTE: A copy of the indictment returned by the Grand Jury in this case is available from the Chicago FBI Press Office at (312) 786-2645. |
