RI regulators investigating security company after employees report bounced checks
by: Sarah Guernelli
PROVIDENCE, R.I. (WPRI) — Carlette Osafo had been working part-time as a security guard in Rhode Island for nearly a year before she says her paychecks started bouncing.
Target 12 interviewed three people who said the payment problems started after Alabama-based Riley Security took over the company earlier this summer.
“We were first getting paid every week — then it went to every two weeks,” Osafo said. “The second paycheck from Riley bounced and I have two checks that bounced from Riley.”
Osafo said she was hit with a bank fee after the checks bounced.
Osafo is one of five people who have filed a complaint against Riley Security with the R.I. Department of Labor and Training. The R.I. Attorney General’s Office has also received a complaint and is investigating in partnership with the DLT, according to a spokesperson.
Kevin Hagan, an attorney for Riley Security, said the owner is working with the DLT to ensure that every employee gets paid in-full. He said the nonpayment was caused by the company running into unforeseen issues with a third-party payment contractor.
“Recently, Riley Security LLC encountered emergency financial problems as the result of their clients making invoiced payments to a third party, which had subsequently put a hold on releasing those payments to Riley Security,” Hagan said in a statement.
He said the delayed release of funds has caused a cascade of financial difficulties for the company and its employees. After not being paid, Osafo said her daughter had to step in to pay her rent.
“I only work part-time,” she said. “There’s other people that would work 30 hours, or five days a week.”
Records reviewed by Target 12 show Riley Security received two Paycheck Protection Program loans thought the U.S. Small Business Administration during the Covid-19 pandemic. The company still owes money to the federal government.
The company also operates in Tennessee and Mississippi. In Alabama, WAFF-TV reported earlier this week that some employees there were also not being paid.
“I wanted to make some noise,” Osafo said. “You know, I wanted it to be heard. I’m not the only one going through this.”
Sarah Guernelli (sguernelli@wpri.com) is the consumer investigative reporter for 12 News. Connect with her on Twitter and on Facebook.