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Former Seneca Business Bounces Payroll Checks

Lag Design Custom Wood Doors Inc. closed on May 1st.  Owner Rilie Tilley released the 30 plus employees with less than one days notice.  Now more than a dozen of the former employees have paychecks that cannot be cashed due to insufficient funds. 

In addition, former employees learned the deductions were taken out from the last three paychecks; however, the funds were not paid to the required agencies.  Deductions included state and federal taxes, medical insurance, Social Security, 401K’s and child support payments.  The result was a lapse in employees’ insurance and taxes may have to be paid again by the employees. Two employees reported the insufficient-fund paychecks to Nemaha County Sheriff Richard Vernon this past Tuesday. Vernon said his office had investigated the report and about two weeks ago turned the case over to County Attorney Brad Lippert.  Lippert would not comment on the investigation.

According to employees; when Lag Design closed May 1, dozens of customer orders were left unfilled. Some of those customers had paid 50 percent of the cost in advance. Some orders were shipped out unfinished.

Koch and Co. in Seneca purchased Lag Design’s assets — building, real estate and equipment — in late May from United Bank and Trust.

Currently, the Lag Design website has a scroll bar that indicates the company has moved to Florida and lists the phone number of Paul Brous, who is identified on the website as president of sales and marketing for Lag Design corporate headquarters in Riviera Beach, Fla. Phone calls to Brous weren’t returned.

About Jeff Ottens