UPDATE Complaints against Snyder County businesses referred to state AG's office [The Daily Item, Sunbury, Pa.] - Insurance News | InsuranceNewsNet

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January 5, 2022 Newswires
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UPDATE Complaints against Snyder County businesses referred to state AG's office [The Daily Item, Sunbury, Pa.]

Daily Item (Sunbury, PA)

Jan. 5—The state Attorney General's Office has received complaints against the beleaguered Snyder County businesses operated by Maurice Brubaker.

District Attorney Michael Piecuch said he referred allegations of insurance fraud to the state Attorney General's Office regarding Brubaker, who with his wife, Deb Brubaker, owns William Penn Cabinetry, in Freeburg, Stanley Woodworking, in Middleburg, and Wood-Metal, in Selinsgrove.

Piecuch said the allegations involving failure to make payments for insurance policy premiums of employees while continuing to deduct contributions from their paychecks are similar to those made against the former Wood-Mode Inc. in Kreamer, which suddenly closed in May 2019. The plant has since reopened under new ownership and a new name, Wood-Mode LLC.

Since the Attorney General's Office has a dedicated insurance fraud section and the resources to investigate allegations of this nature, Piecuch said, he decided to refer the case.

"Mindful of the trust given to me by the voters in Snyder County, I don't refer cases if I can avoid it," he said. "In this type of case though, I feel that these complainants are best served by inviting investigators and prosecutors with specialized knowledge to evaluate the allegations and prosecute, if appropriate."

Late Tuesday night, the Attorney General's office confirmed they received the referral, but offered no additional comments on the case.

Employees at William Penn and Stanley Woodworking said the Brubakers — who work together as tax specialists in Lewisburg — dropped their benefits this summer without informing them and continued to deduct contributions from their pay. In recent weeks, paychecks have been spotty at all three businesses and the couple has failed to pay utility and rent bills, prompting the owners of two properties they lease to seek court-ordered evictions against them.

Late last month, Dennis Van, the owner of the 401 E. Front St. plant in Freeburg that the Brubakers had been leasing for about two years since starting William Penn Cabinetry from the ground up in February 2020, obtained a judgment in district court to evict them after they failed to pay $78,000 in rent. William Penn stopped production in October.

Bill French also obtained a court judgment to evict the Brubakers for failing to pay more than $40,000 in rent for the 100 E. Sherman St. property in Selinsgrove where they have been operating Wood-Metal since acquiring the business in August. The business continues to operate with fewer employees.

R. Tom Fitzgerald told The Daily Item recently that he doesn't expect to be paid the $1.7 million the Brubakers still owe him for Stanley Woodworking, which he had operated for 20 years before selling it to them in March 2020. That business has also significantly slowed production and several employees have been furloughed or left.

Deb Brubaker is scheduled to appear in district court later this month to answer a bad checks charge for paying a $700 Moyer's Gas bill with a worthless check.

Fitzgerald said he'd like to see a forensic audit of Brubaker's accounts to determine what happened with a three-year $500,000 CARES Act loan and more than $370,000 in Paycheck Protection Program (PPP) loans he's received in the past year.

The Snyder County commissioners hope the Attorney General's Office will determine what has happened.

"It affects so many county residents," said Commissioner Adam Ewig.

Commissioner Chuck Steininger said he wants to make sure "no wrongdoing was done."

"If any of the allegations are true, it needs to be looked into," said Commissioner Joe Kantz. "If I were the owner of a business that was struggling, I'd be doing everything personally to change my habits to meet my financial obligations."

Maurice Brubaker did not return a call to The Daily Item on Tuesday.

___

(c)2022 The Daily Item (Sunbury, Pa.)

Visit The Daily Item (Sunbury, Pa.) at www.dailyitem.com

Distributed by Tribune Content Agency, LLC.

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