MYNORTHWEST NEWS

Former Seahawks’ player charged with wage theft, defrauding state

Feb 6, 2015, 11:41 AM | Updated: 12:13 pm

The owners of a failed West Seattle health club and several others are charged with wage theft and ...

The owners of a failed West Seattle health club and several others are charged with wage theft and fraud totaling over $500,000. (AP Photo/G. Newman Lowrance)

(AP Photo/G. Newman Lowrance)

In only the second case of its kind ever brought by the state, Washington Attorney General Bob Ferguson has filed wage theft and fraud charges against former Seahawks defensive lineman Sam Adams and his partner.

The suit by Attorney General Bob Ferguson accuses Adams and his partner Dana Sargent of defrauding employees and the state out of more than $500,000 at the West Seattle Athletic Club and another gym they operated. It accuses the defendants of withholding wages from workers, and failing to pay state taxes, workers’ insurance premiums and unemployment insurance.

The pair owned and operated six athletic clubs, four in Oregon and two in Washington, between 2012 and 2014, according to charging documents.

Lincoln Plaza Athletic Club LLC in Tacoma closed in 2013 due to unpaid retail sales tax.

The other Washington location, West Seattle Athletic Club LLC, closed in 2013, after which West Seattle Club LLC opened at the same location. It shut down in October 2014 after the landlord evicted the defendants for unpaid rent, according to charging documents.

“Wage theft is a crime, and its victims are often among our most vulnerable residents. I won’t stand for violators who cheat working families out of their hard-earned wages,” said Attorney General Bob Ferguson. “My office will prosecute unscrupulous businesses that steal money out of the pockets of wage earners and taxpayers.

The suit alleges the pair failed to pay the state approximately $446,000 in retail sales taxes that they collected for their Washington athletic clubs. It also accuses them of failing to pay 11 employees wages they rightfully earned, totaling $7,166.

The defendants are also alleged to have deducted insurance premium payments from employee paychecks but failed to pay the insurance company, costing Aetna Healthcare approximately $41,640 in unpaid medical and dental premiums, and exposing employees to the risk of unpaid medical bills.

The suit also accuses the pair of failing to pay over $35,000 into state unemployment insurance.

The Seahawks selected Adams in the first round (eighth overall) in the 1994 NFL Draft,[3] and he played for the Seahawks from 1994 to 1999.

All told, the defendants are charged with five counts of Theft in the First Degree, four counts of Filing a False or Fraudulent Tax Return, both felonies, and nine counts of Theft in the Third Degree, a misdemeanor.

The pair could face up to 57 months in prison.

The Attorney General is also seeking full restitution for all of the victims including the employees, the State of Washington and Aetna.

Arraignment is scheduled for Feb. 18, 2015 in King County Superior Court.

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