Avalon Security Declares Bankruptcy; Reneges on Union Contract
Last October, Avalon Security officers celebrated what they thought was the end of a long fight to join our union when Avalon owner Dan Seman signed our union contract, which sets the standard for private security in the Twin Cities.
What Dan Seman failed to disclose was that he had filed for bankruptcy just days earlier. Instead of meeting our contract standards, he reneged on the contract he signed, and Avalon no longer has labor peace with his workers.
Avalon's bankruptcy documents reveal that they owe at least $3 million in back taxes, including nearly $700,000 to the Minnesota Department of Revenue. Rather than acting like a responsible contractor, Dan Seman filed for bankruptcy on the backs of his workers and the taxpayers of Minnesota. Unfortunately, that's just one piece of Avalon and Dan Seman's long and troubling record:
- Avalon has been fined multiple times by the Minnesota Private Detective and Protective Agent Services Board for problems with training and armed certification, and worst of all, failure to conduct criminal history record checks.
- In violation of client policy, an Avalon Fortress officer allowed entry to people who were then involved in a gang-rape sexual assault at a Minneapolis Public Housing complex; Avalon settled the suit in 2004 and later lost the MPHA account.
- Dan Seman and his previous security company, Chase Security, were found guilty of providing illegal transportation services in violation of Minn. Stat. # 221.151
- The City of Saint Paul Public Works Department is reviewing its snow emergency ticketing service with Avalon after officers ticketed parents who were picking up their children from school in subzero weather, and then laughed about it.
- Avalon has a history of bounced checks to employees and has had to use multiple banks in recent years; Avalon recently lost the contract at the Minneapolis Convention Center - where there was almost 100% turnover in a one-year period - after numerous checks to officers bounced.
- Avalon has often failed to pay outgoing employees their final paycheck.
There are several responsible private security contractors in the Twin Cities: ABM, Allied Barton, American, Securitas, Viking, and Whelan.