The Allstate Sales Group lawsuit picture has several moving parts. Former employees have filed a federal class action under the federal and New Jersey WARN Acts after roughly 500 workers were laid off with no notice in August 2025. The company’s founder and CEO, Anthony Tepedino, was separately indicted in December 2025 on federal fraud, bribery, and witness-tampering charges. A lender, Bank Hapoalim, has sued ASG and affiliated entities and won the appointment of a receiver over the company’s assets. Subcontractors and vendors have their own claims, including a default judgment already entered in New York.
What Triggered the Litigation
On August 29, 2025, ASG’s HR department emailed employees that the company faced “financial constraints” and told them to “pause work until further notice.” Around 500 workers lost their jobs, roughly 170 of them full-time employees at ASG’s Holmdel, New Jersey headquarters. A follow-up memo dated August 31 said the company’s “funding partners” had frozen access to all accounts after an “unexpected funding delay.”1Wireless Estimator. Contractor ASG Sued in Federal Court Over WARN Act Violations Workers reported that unpaid wages, accrued PTO, holiday pay, and benefits deductions were never addressed.
The WARN Act Class Action
On September 8, 2025, former ASG Vice President of Electrical Sales Joseph Horling filed a federal class action in the U.S. District Court for the District of New Jersey. The case is Horling v. Allstate Sales Group, Inc. et al., No. 3:25-cv-15321, brought by Raisner Roupinian LLP.2PACER Monitor. Horling v. Allstate Sales Group, Inc. et al.
The complaint names ASG as a corporate defendant along with CEO Anthony Tepedino and President/COO Patryk Mielnicki. The individual executives are named under the New Jersey WARN Act, with the complaint alleging that Mielnicki “directly oversaw the company’s decisions leading to the mass layoffs.”1Wireless Estimator. Contractor ASG Sued in Federal Court Over WARN Act Violations
The suit alleges two sets of violations. Under the federal WARN Act, employers with 100 or more employees must give at least 60 days’ written notice before a mass layoff. The complaint alleges ASG gave none and seeks 60 days of back pay and benefits for affected workers. New Jersey’s version, formally the Millville Dallas Airmotive Plant Job Loss Notification Act, is stricter. As amended in 2023, it requires 90 days’ notice and mandates severance equal to one week of pay per year of service. An employer that fails to give the required 90 days owes an additional four weeks of severance on top of that, and the state statute does not allow the “unforeseen circumstances” defense available under federal law.3Inside Towers. ASG Sued for Abrupt Layoff of 500 Workers
An amended complaint was filed on December 15, 2025, reasserting both claims. The case remains active as of mid-2026, with a telephone status conference scheduled for September 22, 2026. The court is also monitoring the related receivership over ASG’s assets.2PACER Monitor. Horling v. Allstate Sales Group, Inc. et al.
Criminal Charges Against CEO Anthony Tepedino
On December 11, 2025, a federal grand jury indictment against Anthony Tepedino, 61, was unsealed in the U.S. District Court for the Southern District of New York, Case No. 1:25-cr-00562. Tepedino was arrested that morning and presented before a magistrate judge in Manhattan.4U.S. Department of Justice. CEO of Telecommunications Construction Company Charged With Commercial Bribery, Fraud, and Witness Tampering
The six-count indictment charges conspiracy to commit wire fraud and honest-services wire fraud (up to 20 years), wire fraud (up to 20 years), honest-services wire fraud (up to 20 years), bank fraud (up to 30 years), aggravated identity theft (a mandatory consecutive two-year sentence), and witness tampering (up to 20 years).4U.S. Department of Justice. CEO of Telecommunications Construction Company Charged With Commercial Bribery, Fraud, and Witness Tampering The case was initially assigned to Judge Margaret Garnett, who recused herself, and was reassigned to Judge Richard M. Berman.5CourtListener. United States v. Tepedino Tepedino is represented by attorney Kevin Marino.6The City. Indictment Anthony Tepedino ASG Manhattan No arraignment, plea, or trial date appears in the public docket as of mid-2026.
The Alleged Scheme
Prosecutors allege the conduct spanned 2018 to 2024. In 2018, Tepedino and a subordinate identified as “CC-1” created a shell company with no employees, equipment, or real operations. Tepedino then allegedly approved fraudulent invoices from that entity inside ASG’s own accounting system, sometimes forging other executives’ signatures. By 2024, the shell had received more than $5 million. The indictment alleges the funds were spent on personal items, including roughly $730,000 for construction and a pool at Tepedino’s New Jersey home and $1.6 million routed into personal accounts and luxury-event spending.7Wireless Estimator. Inside the $300 Million Contracting Scandal That Brought Down ASG
Starting in 2020, prosecutors allege, Tepedino also paid more than $1 million in bribes to a senior manager at ASG’s largest client, “CC-2,” who in return steered contracts and approved inflated invoices. During those four years, ASG received more than $300 million from that single client, and prosecutors say over 90% of the shell-company money traced back to the client’s payments.7Wireless Estimator. Inside the $300 Million Contracting Scandal That Brought Down ASG
Prosecutors also allege that in late 2021 and early 2022, Tepedino sought more than $18 million in commercial credit from a federally insured bank while concealing the scheme and misrepresenting ASG’s financial condition.4U.S. Department of Justice. CEO of Telecommunications Construction Company Charged With Commercial Bribery, Fraud, and Witness Tampering The FBI seized Tepedino’s cell phone on September 4, 2024, and the scheme apparently stopped then.6The City. Indictment Anthony Tepedino ASG Manhattan The witness-tampering count alleges that after the investigation opened, Tepedino held a meeting where he instructed co-conspirators to mask their discussions with background noise and characterize the bribe payments as “legitimate consulting fees.”8International Business Times. Fast-Rising Allstate Sales Group Collapses After CEO Tepedino Charged
Bank Hapoalim Suit and the Receivership
On December 1, 2025, Bank Hapoalim B.M. sued ASG and several related entities in the U.S. District Court for the District of New Jersey, Case No. 3:25-cv-18047. The action is a contract case under diversity jurisdiction and names ASG together with Aegis Service Group LLC, Home Services USA LLC, Ocean Investment Holdings LLC, Ocean Properties LLC, Ocean Property Management LLC, and Ocean Property Management II LLC.9PACER Monitor. Bank Hapoalim B.M. v. Allstate Sales Group Inc., et al. The defendants collectively owe approximately $21.4 million in outstanding principal, according to the receivership order.10CaseMine. Bank Hapoalim B.M. v. Allstate Sales Group Inc. Georgia corporate records list Tepedino as the registered agent for Ocean Investment Holdings LLC, which shares ASG’s Holmdel address and was formed in 2018.11Georgia Secretary of State. Ocean Investment Holdings LLC
On February 5, 2026, Judge Georgette Castner granted the bank’s motion to appoint a receiver over substantially all of the defendants’ assets. Province Fiduciary Services, LLC, acting through Thomas Buck, was given control of ASG’s real estate, equipment, vehicles, accounts, inventory, and other property, with the defendants’ consent. The court noted that easily movable equipment, machinery, and vehicles were at risk of theft or loss after ASG’s closure.10CaseMine. Bank Hapoalim B.M. v. Allstate Sales Group Inc. As of June 2026, the receiver has filed a motion to stay all litigation against the receivership property, with a hearing set for July 2026.9PACER Monitor. Bank Hapoalim B.M. v. Allstate Sales Group Inc., et al. That stay motion matters for any worker or vendor trying to collect from ASG’s remaining property.
Vendor and Subcontractor Claims
Subcontractors and vendors were also left unpaid. DiFazio Industries, LLC, which had performed renovation and restoration work on Verizon facilities at Randall’s Island and Far Rockaway in New York, filed a breach-of-contract action in New York Supreme Court, Case No. 655873/2025. ASG did not appear or respond to court orders, and in April 2026 the court granted DiFazio a default judgment. The court also ordered ASG to produce trust-fund records under New York’s Lien Law, finding that ASG had received payments from Verizon for DiFazio’s work and was required to hold those funds in trust for the subcontractor.12Justia. DiFazio Indus., LLC v. Allstate Sales Group Inc. Reporting in September 2025 indicated ASG faced at least two vendor lawsuits alleging $300,000 in unpaid debts.3Inside Towers. ASG Sued for Abrupt Layoff of 500 Workers
Industry reporting and former employees have identified ASG’s unnamed largest client in the indictment as Verizon. A Verizon spokesperson told Wireless Estimator the company was “aware of the situation” but declined to comment further or confirm its identity in the indictment.7Wireless Estimator. Inside the $300 Million Contracting Scandal That Brought Down ASG The federal indictment itself does not name the client.