Andrew Manganas, Wage Fraud & Wire Fraud, Pennsylvania 2019

Harrisburg, PA – Andrew Manganas, owner of Panthera Painting, Inc., was sentenced to 46 months in federal prison on August 14, 2019, after pleading guilty to a complex scheme involving wage fraud, wire fraud, and the illegal discharge of pollutants into the Susquehanna River. The case, stemming from Panthera Painting’s role as a subcontractor on the multi-million dollar George Wade Bridge restoration project, highlights a deliberate pattern of deceit and environmental disregard, according to federal prosecutors.

The George Wade Bridge project, spanning the Susquehanna River on Interstate 81 in Cumberland and Dauphin Counties, carried a total contract value of $42,480,434.05, with 90 percent of the funds coming from federal-aid programs. Panthera Painting secured a $9.875 million subcontract in 2009, later increased to over $10 million, to handle the blasting, resurfacing, and painting of the bridge’s structural steel. As a federally funded project, strict regulations required accurate Certified Payroll Reports to ensure workers received prevailing wages.

Federal investigators discovered Manganas and Panthera Painting systematically falsified these reports, underreporting wages and circumventing proper tax and union remittance procedures. Workers received a base wage check omitting overtime pay, with additional overtime delivered via separate “per diem” payments. This allowed Manganas to avoid paying necessary taxes and contributions to workers’ unions, effectively stealing funds from both employees and their representatives. The scheme defrauded federal agencies overseeing the project, diverting taxpayer money intended for legitimate labor costs.

Beyond the wage fraud, Manganas directed Panthera Painting to deliberately violate environmental regulations. Despite contractual obligations and federal law prohibiting the discharge of pollutants without a permit, workers, under Manganas’s direction, knowingly released abrasive paint blasting materials, waste paint, and metal directly into the Susquehanna River. The company failed to implement required containment measures – ropes, cables, fabric, and waste collection systems – designed to prevent such pollution. Investigators confirmed Manganas was aware of the lack of a discharge permit but chose to prioritize cost-cutting over environmental compliance.

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Key Facts

Defendant: Andrew Manganas & Panthera Painting, Inc.
Location: George Wade Bridge, Pennsylvania
Fraud Amount: Millions diverted from federal funding and union plans
Environmental Impact: Illegal discharge of pollutants into the Susquehanna River
Statutes Violated: 33 U.S.C. 1319(c)(2) (Clean Water Act), 18 U.S.C. 1343 (Wire Fraud), 18 U.S.C. 664 (Theft from Employee Benefit Plans)
Penalties: Manganas – 46 months imprisonment, $20,000 fine; Panthera Painting – $200,000 fine. Both received 5 years of supervised release.

The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and the Department of Labor’s Employee Benefits Security Administration (EBSA). “This prosecution demonstrates our commitment to protecting both the environment and the rights of workers,” stated an EPA spokesperson. “Mr. Manganas’s actions were a blatant disregard for the law and a calculated attempt to enrich himself at the expense of the public and his employees.” The sentencing serves as a warning to other contractors who may attempt to cut corners on federally funded projects, potentially jeopardizing both environmental health and worker welfare.

Panthera Painting, Inc. also received a $200,000 fine in addition to the prison sentence handed down to Manganas. The company is now defunct, leaving a trail of unpaid wages and environmental damage in its wake. Legal experts suggest this case will likely be cited in future prosecutions involving similar schemes of fraud and environmental violations.

Source: EPA ECHO Enforcement Case Database

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