Pair's Sham Charitable Foundation Bilked LI High School Students Out of Wages: DA

Two Long Island men ran a sham charitable foundation that bilked high school students out of summer wages earned while working at concession stands at Citi Field and Nikon at Jones Beach Theater, authorities say.

Whelton Herron, 43, of Brightwaters, and Amadii Owens, 32, of Wyandanch, have been indicted by a Nassau County grand jury and face felony charges of grand larceny, scheme to defraud and conspiracy, Acting Nassau County District Attorney Madeline Singas announced Thursday.

The foundation the men ran, The Herron Foundation, faces similar charges.

According to Singas, Herron and Owens recruited more than 100 high school students from Freeport, Brentwood, and Huntington high schools, and at least 50 students in three other states to work at concession stands operated by Aramark Sports and Entertainment Services.

Herron and Owens advertised concession employment on Craigslist to an unknown number of other victims, Singas said.

Contract and payment records show that students worked at Nikon at Jones Beach Theater, Citi Field, MCU Park, Reliant Stadium, Minute Maid Stadium, Barnum and Bailey Circus in Houston, Texas, LPN Field in Nashville, Tennessee and Soldier Field in Chicago, Illinois, beginning in 2014, Singas said.

Records show that the Herron Foundation was incorporated in April 2013, the DA said, by Whelton Herron “for the charitable purpose of aiding students in grades K-12 who reside in impoverished communities and are in need of academic intervention, mentoring or other supplemental educational services by providing such students with web-based or live individualized tutoring services, self-motivation and confidence building skills programs, and church or community based volunteer leadership opportunities.”

In 2013 and 2014, Herron applied to the Non-Profit Program operated by the Aramark Sports and Entertainment Services Inc. In contracts, Singas said that Herron represented that The Herron Foundation was a non-profit, tax-exempt 501(c)(3) charity seeking to “engage in fund raising for civic, charitable, religious or educational purposes through the conduct of concessions operations” in exchange for which the Herron Foundation would receive commissions based on a percentage of the total “gross receipts from the Concessions Operations.” In the contracts, Herron agreed to provide volunteers to work at Aramark concession stands who would be required to indicate to Aramark that “he/she is providing time and effort for the benefit of Group, without intention of receiving wages or benefits.” The contracts further stated that, “In addition, Group shall not provide any compensation or benefits to its volunteers of any kind or nature in regard to their services hereunder, including, without limitation, reimbursing volunteers for their cost and expenses (such as child care or transportation costs).”

Herron and Owens falsely represented to Aramark representatives that students were providing services as volunteers with no expectation of being paid for their work, according to prosecutors.

Herron and Owens allegedly told students that they would be paid by the Herron Foundation as Herron employees but were considered “volunteers” by the Aramark Corporation. The men instructed Herron workers that if asked by any Aramark representatives, they should state that they were “merely volunteers for the Herron Foundation” and were not being paid for their services,” Singas said.

When the students began to question why they weren’t being paid in full or at all, Singas said Herron and Owens falsely represented to the Herron workers and others that the Herron Foundation had not yet been paid by Aramark for the hours worked.

According to prosecutors:

• In May 2014, the Freeport High School students started working at Jones Beach and Citi Field. They paid for their own transportation or in some cases, parents shuttled the kids to and from the venues, often at late hours after events ended. The students worked hundreds of hours, usually in shifts of five to eight hours.
• In June 2014, the Freeport students had not been paid. When students requested payment, Owens called a meeting at the Freeport Library and threatened to fire any student that alerted Aramark employees that they were owed payment by the Herron Foundation.
• In July 2014, the students continued to ask for payment. This time, defendants lied and again told them that Aramark had not yet paid the Herron Foundation and that the workers would be paid when the money was received from Aramark. Some received money orders for $36, a mere fraction of their wages.
• In August 2014, when Freeport High School students informed faculty that they had not been paid, or paid for just a small fraction of the hours they worked, faculty members contacted Owens and Herron. Both defendants promised that once Aramark paid The Herron Foundation, the students would be receiving their promised payment. Some students received additional $36 money orders. Others received nothing. In total, nearly $30,000 is owed to the Freeport students.

In 2013 and 2014, based on the false representations, Aramark paid the Herron Foundation in more than $100,000 under Aramark’s Non-Profit Organization program, Singas said. Bank records show that Herron and Owens used that money for personal purposes, including the purchase a Mercedes Benz, travel, and the creation of a golf cart web magazine (www.golfcaroutfitter.com), authorities said.

Owens’ attorney told Newsday that Herron was the mastermind behind the scheme and that Owens quit once he found out about the illegal activities.

NCDA photos: Whelton Herron (L) and Amadii Owens