Tuesday, June 12, 2012

Former Trade Association Executive Sentenced

{Charleston, West Virginia}...Jonathan S. Deutsch, 58, of Charleston, has been sentenced to two years in prison after pleading guilty in May to making a false statement to a financial institution. Deutsch worked as the executive secretary for the Constructors' Labor Council of West Virginia and the administrator of its related trust fund, the West Virginia Heavy and Highway Construction Industry Fund, from 1995 through 2007. In September 2004, Deutsch obtained a $120,000 line of credit from SunTrust Bank, secured by the highway construction industry fund assets. He admitted he did not receive board member approval and failed to disclose to the bank that he lacked proper authority. Beginning in mid-2007, Deutsch created a series of backdated false meeting minutes and presented them to board members to sign in an effort to conceal the line of credit. SunTrust was forced to write off the loan as a loss because of the false statement.