RECEIVERSHIPS: Paragon/Par 2 Contractors

WAYNE KLEIN, RECEIVER FOR Paragon
PO Box 1836
Salt Lake City, UT 84110
Telephone: (801) 824-9616
E-mail: wklein@kleinutah.com

Welcome to the Klein & Associates website! This page contains information regarding the Receivership: Paragon. On this page, you will find:

    1. Copies of the Court Order Appointing a Receiver and other Court filings about the Receivership;
    1. Copies of Status Reports and other notices the Receiver will file with the Court;
    1. General information about the Receivership.

Court Order Appointing Receiver.

On August 25, 2021, the U.S. District Court of Utah appointed Wayne Klein as receiver for Paragon Contractors Corp., Par 2 Contractors, LLC and the assets of Brian Jessop, of Hildale, Utah. The case caption is Martin J. Walsh, Secretary of Labor, United States Department of Labor v. Paragon Contractors Corp.; James Jessop, Brian Jessop, and Par 2 Contractors, LLC, Case No. 2:06-cv-700-TC (D. Utah). The order is docket no. 298.

The federal court order gives the receiver exclusive control over the assets of these companies and Mr. Jessop, as well as real property located at 745 North Box Elder Street (1400 West) in Hildale, Utah and specified additional construction equipment and vehicles. These are listed in the August 25, 2021 “Order Appointing Receiver.” Links to that order and other key court rulings in the case can be found below.

Background. In 2007, the federal court issued an injunction against Paragon Contractors and Brian and James Jessop for violating the Fair Labor Standards Act. The Court subsequently held that Paragon and Brian Jessop were in contempt of the injunction and ordered them to pay $1,012,960.60 in back wages. This finding was upheld on appeal by the Tenth Circuit Court of Appeals. $200,000 of the judgment amount was paid, leaving an unpaid amount of $812,960.60. In 2018, Par 2 Contractors was made a defendant in the enforcement action and made jointly liable for the back wages. The failure of defendants to pay the judgment amount led the Court to appoint Mr. Klein as receiver, with a mandate to recover and sell sufficient assets to satisfy the judgment amount.

Key Court Rulings.

The order requires all persons holding any assets or records belonging to Paragon, Par 2, or Brian Jessop to deliver those to the receiver. Failure to turn over assets and records can be punished by civil or criminal contempt proceedings. The receiver’s contact information is:

Wayne Klein, Receiver for Paragon
PO Box 1836
Salt Lake City, UT 84110
Telephone: (801) 824-9616
E-mail: wklein@kleinutah.com

 

Court Documents