Contractor, Wife Plead No Contest in Wage Scam

A Lancaster electrical contractor and his wife who faced criminal charges in a labor fraud case agreed to plead no contest in return for reduced charges, prosecutors said Thursday.

James Paxin, 38, president of Paxin Electric, had been charged with 21 felony counts of perjury, labor fraud and conspiracy in connection with contracting work done at Lancaster City Hall and Canyon Country Park in Santa Clarita in 1988 and 1989. He pleaded no contest Wednesday to 10 misdemeanor counts of failure to maintain complete and accurate payroll records.

His wife, Brenda Paxin, 40, who faced all but the perjury charges, pleaded no contest to one count of the same misdemeanor charge.

Criminal charges in such cases are rare, but they were filed against the Paxins because they had been the target of civil action for similar complaints in the past, and because employees supplied information and offered to testify in this case.

The Paxins allegedly required workers to report that they received higher wages for fewer hours than they actually worked, to create the appearance that the company was matching the specified “prevailing wage” in the area, as required by city government contracts. They were accused of underpaying employees by about $170,000.

As part of the plea agreement, the Paxins will pay $67,000 in restitution to the employees involved, said Deputy Dist. Atty. Dan Damon. In addition, James Paxin was fined $10,750, and Brenda Paxin was fined $2,150.

James Paxin also faces the possibility of up to 180 days in jail when he is sentenced Feb. 6. As a condition of a three-year probation, he will not be allowed to bid for public works projects, although he may petition the court to end his probation after one year.

Brenda Paxin will be placed on probation for one year under the same terms, Damon said.