Man accused of alleged kickback scheme
MUDDY CREEK TWP — A former employee at a suburban Pittsburgh business is accused of demanding kickbacks from the owners of a local subcontracting company.
State police allege Gary P. Hite, 33, of Muddy Creek Township demanded that Shane and Jennifer Young provide 10 percent of their earnings to his company.
The purported scheme cost the couple, owners of J&S Painting and Repair in Muddy Creek Township, nearly $3,000.
Hite on Tuesday turned himself in to authorities on a felony charge of theft by deception and a misdemeanor charge of demanding property to secure employment.
He was released on $5,000 unsecured bail following arraignment. A preliminary hearing is set for Feb. 22 at the office of District Judge William O’Donnell in Slippery Rock.
Police on Jan. 27 began investigating the suspected kickback case that targeted the Youngs’ small painting business.
The Youngs told police that their firm in August 2016 became an approved contractor for FireDEX of Pittsburgh, where Hite was then working as a program coordinator, according to court documents.
Shane Young recounted that after his firm completed several jobs, he started receiving text messages from Hite advising him not to forget about the 10 percent in kickbacks he owed the defendant.
According to a statement posted on FireDEX's website, the company was “shocked and deeply disappointed” to learn of the charges against Hite and immediately fired him after the allegations surfaced.
