Roofing Contractor Pleads Guilty to Tax, Mail Fraud

Local roofing contractor Stephen Gretchen admitted in federal court to paying employees under the table over a period of five years and fraudulently collecting insurance money on a camping trailer destroyed in a staged crash.

Gretchen, 44, of McMechen pleaded guilty to filing a false tax form and mail fraud before U.S. Magistrate James Seibert. As part of a plea agreement, Gretchen - who owns A-1 Roofs Done Right in Wheeling and STS General Contracting in McMechen - agreed to pay more than $225,000 in unpaid taxes and other restitution resulting from his crimes.

He faces a maximum of 23 years in prison and $500,000 in fines, but Assistant U.S. Attorney Robert McWilliams said he would recommend a penalty toward the lower end of federal sentencing guidelines if Gretchen abides by the terms of the agreement.

Photo by Ian Hicks Stephen Gretchen of McMechen, owner of A-1 Roofs Done Right in Wheeling, pleaded guilty to federal fraud charges Wednesday.

During Wednesday's hearing, McWilliams called two federal investigators to testify about Gretchen's activities.

Internal Revenue Service Special Agent Jason Somerville said Gretchen falsely reported on his Form 941, a quarterly report detailing wages paid and taxes withheld, that he had no employees and thus paid no wages. But he testified to speaking with several people who admitted Gretchen paid them under the table.

"The majority of employees I talked to, early on, were paid solely in cash, and later on were paid in a combination of cash and check," Somerville said.

Tammy Mayle, a U.S. Postal Service inspector, then testified that on April 24, 2012, Gretchen staged a collision involving a camping trailer in order to collect insurance money. He received a $22,776 check from Progressive Insurance Co. via FedEx in June of that year after claiming the camper was destroyed in a hit-and-run accident, Mayle testified.

"The employee told the other investigators that he was solicited to crash a dump truck into the camper," she said.

Mayle said the investigation revealed Gretchen paid the employee $500 to destroy the camper, and a second employee overheard the two discussing the arrangement.

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Roofing Contractor Pleads Guilty to Tax, Mail Fraud