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Rodgers' hearing put off to Dec. 11: DA asks for more time to investigate 'complex' case

 

Saturday, Oct 17,2009, 8:35:41 PM   Click:

In Forsyth District Court yesterday, William Rodgers Sr., the owner of Pace Airlines, made his first court appearance on a charge that he failed to pay health-insurance premiums for employees of the now-defunct company.

At least 12 former Pace employees sat in the courtroom for the hearing, which lasted less than five minutes.

Rodgers was arrested last month and was in court for a probable-cause hearing.

But Assistant District Attorney Ben White and Walter Holton, Rodgers' attorney, asked that the hearing be continued to Dec. 11. Judge Lawrence Fine granted the motion to continue.

White said that more time is needed to complete the investigation.

"It is very complex," he said.

Rodgers did not speak while in court. He is charged with a felony count of willful failure to pay group-health premiums for his employees. If convicted, he could face up to 10 years in prison and a fine. Other charges may be filed, officials with the N.C. Department of Insurance said.

Rodgers bought Pace Airlines in May, based on a promissory note to pay $9 million for Pace stock and take over $6 million in liabilities. He told employees that he was wealthy and was an aviation expert and that he had access to tens of millions of dollars in investor capital.

But Pace Airlines suspended operations last month, and the company's 300 local employees have not been paid for work done in August and September. Most were let go in two separate layoffs. The criminal-investigations unit of the U.S. Department of Labor is investigating nonpayment of employees.

On Tuesday, a former employee of Pace filed a class-action lawsuit accusing the company of violating the Worker Adjustment and Retraining Notification Act. The act requires companies to notify state and local officials and affected workers at least 60 days before layoffs.

After the hearing yesterday morning, Rodgers and Holton left the courtroom. A group of former Pace employees followed Rodgers out of the courtroom, down the stairs to the second floor of the Hall of Justice and out of the courthouse. They didn't talk directly to Rodgers, but their anger at their former boss was apparent.

"That's the crookedest man walking on the earth," said Jeff Catlin, a Pace employee who was laid off Sept. 14. "I just want justice to be done."

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