Loretto Man Gets 22 Months For Lying About Employee Wages

MINNEAPOLIS (WCCO) -- A 52-year-old Loretto man was sentenced Tuesday in U.S. District Court to nearly two years federal prison for lying about employee wages for a company that assisted with state highway and road construction projects.

Jeffery John Plzak was ordered to serve 22 months in prison, pay $240,000 in restitution along with a fine and will be on one year of supervised release after serving his term. He pleaded guilty to one count of false statements on July 8, 2014.

According to court documents, Plzak and his spouse run Loretto-based Honda Electric, Inc., a company that bids on construction projects, including highway and road projects, that are state and federally funded. Many of the projects Plzak bid on mandated that Honda Electric pay its electricians and laborers the prevailing wage rate.

Plzak won those bids based on the representation that his employees would receive that rate. According to court documents, Plzak knew in many circumstances that employees were being paid less than half the prevailing wage rate for certain projects. He admitted that over a series of projects from 2010 to 2013, the company underpaid its employees more than $241,000.