Harrisburg, PA – Andrew Manganas, owner of Panthera Painting, Inc., was sentenced to 46 months in federal prison on August 14, 2019, following a protracted investigation into wage fraud, wire fraud, and the illegal discharge of pollutants into the Susquehanna River. Manganas and his company were found guilty of systematically defrauding federal agencies and stealing from union members during the multi-year George Wade Bridge restoration project in Cumberland and Dauphin Counties, Pennsylvania.
The George Wade Bridge project, valued at over $42 million, received 90% of its funding through the Federal Highway Administration. Panthera Painting secured a $10 million subcontract in 2009 to handle the bridge’s blasting, resurfacing, and painting. However, prosecutors revealed a scheme where Manganas intentionally falsified Certified Payroll Reports to underreport worker wages. Workers received a base wage check omitting overtime pay, with the additional overtime funds disbursed as untaxed “per diem” payments. This practice allowed Manganas to avoid proper tax remittances and union contributions, effectively pocketing money owed to both the government and his employees.
The scheme extended beyond wage theft. Investigators found that Manganas knowingly directed Panthera Painting to violate environmental regulations by illegally discharging pollutants directly into the Susquehanna River. Despite contractual obligations and environmental laws requiring the use of containment systems—ropes, fabric, pans, and recycling systems—to capture waste materials during blasting and painting, Manganas ordered workers to bypass these safeguards. Abrasive paint blasting materials, waste paint, and metal debris were intentionally released into the river, circumventing proper hazardous waste disposal procedures. Manganas was aware he lacked the necessary permits for such discharges.
The investigation, led by the Environmental Protection Agency (EPA) and the Department of Labor, uncovered a deliberate pattern of misconduct. Prosecutors presented evidence demonstrating Manganas’s direct involvement in both the payroll fraud and the environmental violations, establishing that he knowingly prioritized profit over legal compliance and the well-being of his workers and the environment. The Federal Highway Administration’s oversight of the project was undermined by Panthera’s deceptive practices.
Key Facts
- Defendant: Andrew Manganas and Panthera Painting, Inc.
- Location: George Wade Bridge, Cumberland & Dauphin Counties, PA
- Project Value: $42,480,434.05
- Fraudulent Activity: Falsified payroll reports, underreporting wages, untaxed “per diem” payments.
- Environmental Crime: Illegal discharge of pollutants (paint, metal, abrasive materials) into the Susquehanna River.
- Sentencing: Manganas – 46 months imprisonment, 5 years supervised release, $20,000 fine. Panthera Painting – $200,000 fine.
Manganas pleaded guilty to charges under 33 U.S.C. 1319(c)(2) (Clean Water Act violation), 18 U.S.C. 1343 (Wire Fraud), and 18 U.S.C. 664 (Theft from Employee Benefit Plans). The case highlights the EPA’s commitment to prosecuting environmental crimes and holding individuals accountable for defrauding federal programs and endangering public resources. The sentencing serves as a warning to other contractors seeking to cut corners at the expense of workers, the environment, and the integrity of public infrastructure projects.
The Department of Labor also recovered restitution for the affected union members and is continuing to investigate potential further damages. Authorities emphasize that the investigation underscores the importance of robust oversight and vigilant enforcement of labor and environmental regulations, particularly on large-scale federal projects.
Source: EPA ECHO Enforcement Case Database
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