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Arrest made in construction fraud Date published: 10/13/2009
Arkansas authorities have arrested the CEO of an Arkansas construction company that hasn't paid subcontractors for work done on the Lowe's store in southern Stafford.
Lewis May, CEO of May Construction, was arrested last week in Little Rock on charges of fraud. He was indicted in Stafford County last month. The Associated Press reported that May posted a $50,000 bond and was released. The charges stem from the company's failure to pay Henderson Construction for work done on the Lowe's building. In July, Henderson got a default judgment in federal court in Alexandria against May for more than $450,000. Other area subcontractors say they are owed money by May as well, and at least one, Heard Concrete, has filed a lawsuit in Stafford County Circuit Court. Henderson has also filed a mechanic's lien in Stafford. According to an Arkansas business Web site, Arkansas Business.com, May said he plans to sue Heard Construction for "malicious prosecution and abuse of process." In a press release, May blames Heard, a Chesapeake company, for the criminal charge against him, although the indictment from Stafford says the charge is related to money owed to Henderson Construction. According to several local subcontractors who say they are owed money, calls to May were either not returned, or they were given a series of excuses as to why they hadn't been paid. Information from subcontractors and court filings indicate that May has been paid by Lowe's, except for a small percentage being held back because the subcontractors have not been satisfied. Court documents indicate that May Construction told Lowe's all subcontractors were paid and satisfied in full. ArkansasBusiness.com quoted May as saying his company is suffering from the economic downturn. "I regret these circumstances have happened, but my company will continue to perform work and deal with these issues," May said in a press release. According to ArkansasBusiness.com, the subcontractors on the Stafford Lowe's aren't the only money problems May Construction has had. The Web site reported in June that an Oklahoma company, Naylor Concrete Construction, had filed a $4.1 million lien against May over work done on a pipe plant in Little Rock, and other firms had also filed liens related to that project. Those liens appear now to have been satisfied, but May's press release says he also plans to sue the company that was building that plant, Welspun, over payment issues. ArkansasBusiness.com says May has seen a 40 percent reduction in staff since last October, and that the company reported 2008 revenue of $94 million.
they are supposed to and or cause other problems/costs for the Contractors then they do not always get paid what they want or if the customer holds they money back/ pays late then the subs need to wait. These companies will not get work from other contractors now they appear to have abused the process. These subs are probably broke because of the economy and their own mistakes and are trying to scapegoat this contractor
while the workers get the shaft.
I am amazed if he still has his license! There should be a national website where these rotten Companies and individuals are named. Being self employed is difficult enough without thieves like this stealing our money. Even more so in this bad economy. The banks want more and more paperwork and time to pay out to our customers, but the supply houses still have us all on a 30 day net pay. The subs need to get paid on time! I hope they throw the book at this highway robber and everyone gets paid plus interest!
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