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HAZE Temp: 40 °F Wind: CLM at 0 mph Friday, November 22, 2002 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend September 28, 2002 Jury says guilty in contract case Nielsen and Greenstone plan to appeal racketeering, theft and forgery convictions By DANI DODGE Mail Tribune After three days of deliberation, a Jackson County jury Friday found former Medford Planning Commissioner Dennis Michael Nielsen and his business partner Lee M. Greenstone guilty of racketeering, aggravated theft and forgery. While overseeing the remodeling of a Medford beer distribution plant, Nielsen, 53, and Greenstone, 52, forged subcontractors’ invoices to reflect higher costs before submitting them for payment. When the beer company paid, the men pocketed the difference. Deputy District Attorney Karen Loomis said the verdict sends a message "that the community won’t tolerate this." "You can’t use your business to cheat and forge and steal money that way," she said. The state may ask for sentences of between 16 and 20 months in prison for the men, Loomis said. Judge Patricia Crain, who oversaw the six-day trial, will make the final sentencing decision in three weeks. Nielsen and Greenstone, partners in First Choice Construction, expect to appeal the verdict, said defense attorney Carl Caplan. In 2000, the men, who are cousins as well as business partners, agreed to oversee the half-million-dollar remodeling of a Western Beverage Co. distribution center on Mason Way in Medford. Nielsen and Greenstone hired subcontractors who did most of the work. But instead of faxing the subcontractor invoices as they were to Western Beverage Co. in Eugene, they increased the prices on the invoices. Sometimes they blotted out the original invoice amount, and in one instance, they put mailing labels over what was written by the subcontractor. Then they filled in prices that were thousands of dollars more. Loomis estimated the theft at more than $100,000. But Nielsen and Greenstone’s attorneys pointed out throughout the trial that Western Beverage had signed off on all the invoices and the costs involved. Although he praised the jury for its careful deliberation, defense attorney David Orf said he disagreed with the verdict. "They did not take anything that was not agreed to," Orf said. "For every dollar that First Construction received, they gave change orders and invoices." Orf said he still believes this should have been handled in civil court instead of criminal court. Greenstone declined comment. When asked about the verdict, Nielsen replied: "I’m disappointed. That’s all I can say. I’m disappointed." In addition to serving on Medford’s planning commission, Nielsen was a member of several other boards and commissions and ran for Medford City Council twice. The jury convicted both men of racketeering, aggravated theft, first-degree forgery, criminal possession of a forged instrument, and doing construction contracting without a license. The jury found them not guilty of three counts of first-degree theft, charges related to stealing from the subcontractors. It is highly unlikely they ever will get construction contractor licenses again, said Craig Smith, the administrator for the state’s construction contractors board. "We certainly would try to prevent it," Smith said. "The spirit of the law is when folks have proven themselves untrustworthy in the construction industry they should not ... have the right to hold a license." Loomis said while this case revealed some of the worst to be seen in the construction industry, it also displayed some of the best. She pointed out it was the subcontractors on the job who came forward and reported that Nielsen and Greenstone appeared to be cheating Western Beverage. "I feel so good knowing subcontractors in this valley are so honest," she said. "If not for them, this wouldn’t have been discovered." Before this conviction, Greenstone had a clean record. In August, Nielsen was convicted of food stamp fraud and sentenced to five days in jail. Their sentencing is scheduled for 11 a.m. Oct. 15. Reach reporter Dani Dodge at 776-4471, or e-mail [email protected] Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright 1997-2002 Mail Tribune. All rights reserved. Privacy Policy webmaster feedback A D V E R T I S E R S