SALEM, Ore. -- The Oregon Attorney General's Office has filed a settlement agreement with a man accused of ripping off local veterans. The agreement says Tim Leatherby of Leatherby Tools will pay $100,000 to the state.
KATU investigated Leatherby and showed how he hired local veterans to do remodeling work at a Salem apartment complex, but did not pay them the wages he promised them. The veterans said he owed them more than $15,000 in wages. He promised them multiple times that he would pay them their wages, but did not.
In the report, the veterans said that Leatherby told them he was working closely with Oregon Governor John Kitzhaber. However, a Kitzhaber spokesperson told KATU that Governor Kitzhaber had never met Leatherby.
The settlement agreement, also called an Assurance of Voluntary Compliance, says that Leatherby must immediately stop doing business in Oregon. It also says that Leatherby will not represent or imply that the Governor approves of his business practices.
The agreement says that Leatherby may operate Leatherby Tools for the purpose of manufacturing tools only if he satisfies all of the Oregon Bureau of Labor and Industries' wage and hour claims. Veterans have filed more than a dozen BOLI wage and hour claims against Leatherby.
The agreement adds that the Oregon Department of Justice has agreed to suspend $98,000 of the $100,000 payment, provided that Leatherby complies with the terms of the Assurance of Voluntary Compliance. He must pay the $2,000 within 30 days of the agreement.
BOLI is continuing to investigate the wage claims by veterans against Leatherby.
KATU News also reported that the Oregon Construction Contractors Board has filed a final order against Leatherby, fining him $1,000 for working as a contractor without a license.