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    RI regulators investigating security company after employees report bounced checks

    By Sarah Guernelli,

    1 days ago

    https://img.particlenews.com/image.php?url=3ql8Rm_0w9nL4eg00

    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 .

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