Maria Savakis, Payroll Fraud, Pennsylvania 2017

Philadelphia, PA – Maria Savakis, formerly of Merritt Island, Florida, was sentenced to two years of probation and $2,600 in fines on July 18, 2017, after pleading guilty to defrauding a federal highway project of over $61,000. The case, investigated by a multi-agency task force, reveals a deliberate scheme to underreport employee wages on certified payrolls, diverting union welfare funds for personal gain.

Savakis, owner of Hercules Painting Company, was a key player in a joint venture awarded a $42.7 million contract by the Pennsylvania Department of Transportation (PennDOT) in April 2011. The contract focused on structural steel painting and repairs for the George C. Platt Memorial Bridge in Philadelphia, a project heavily funded by the Federal Highway Administration (FHWA). Investigators discovered that Savakis orchestrated a dual payroll system designed to circumvent prevailing wage requirements mandated by the DOT-funded contract.

The scheme involved maintaining one payroll accurately reflecting hours worked at the legally required rate, submitted to PennDOT and the Department of Labor (DOL). Simultaneously, a second, unreported payroll documented the remaining hours, paying employees at a significantly lower rate. This allowed the joint venture to retain $61,689 in funds legally obligated to be deposited into the welfare fund for the International Union of Painters and Allied Trades District Council No. 21. The deception effectively shortchanged workers’ benefits while boosting the company’s profits.

Federal prosecutors charged Savakis in March 2017 with violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. 669 (Theft from Healthcare Programs – though the case involved a highway project, the statute was used due to the welfare fund aspect) and 18 U.S.C. 981 (False, Fictitious, and Fraudulent Claims). The guilty plea, entered on April 18, 2017, led to the sentencing of two years probation and $2,600 in fines. Beyond the criminal penalties, the FHWA suspended and proposed the debarment of both Hercules Painting and Savakis from future federal contracts, effectively barring them from participating in federally funded projects.

Table of Contents

Key Facts

Defendant: Maria Savakis
Crime: Payroll Fraud, Theft from a Welfare Fund
Location: Philadelphia, Pennsylvania
Year: 2017
Project: George C. Platt Memorial Bridge Repair
Amount Defrauded: $61,689
Statutes Violated: 18 U.S.C. 669, 18 U.S.C. 981
Penalty: 2 years probation, $2,600 in fines, proposed debarment

The investigation, a collaborative effort between the DOT-OIG, FBI, DOL-OIG, EPA-CID, Homeland Security Investigations, and IRS-Criminal Investigations, underscores the increasing scrutiny of contractors working on federally funded infrastructure projects. Substantial assistance was also provided by the FHWA and PennDOT, demonstrating a commitment to ensuring accountability and protecting worker benefits. This case serves as a warning to those who attempt to exploit public funds through fraudulent practices.

GrimyTimes will continue to follow this case and report on any further developments, including the outcome of the proposed debarment proceedings against Savakis and Hercules Painting Company.

Source: EPA ECHO Enforcement Case Database

Related Federal Cases