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Monday, October 21, 2019

New York attorney general announces contractor scheme to cheat employees

By Mark Iandolo | May 26, 2016

NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman has announced Lalo Drywall Inc. and its owner, Sergio Raymundo, have admitted to cheating eight workers at a Harlem housing project out of roughly $800,000 in wages over a 17-month period.

The defendants allegedly tried to conceal the underpayments by signing false checks that indicated payment to workers but then never giving the checks to the employees.

“Wage theft is a crime, one that frequently involves companies exploiting low and middle-income workers for their own gain,” Schneiderman said. “My office will continue to aggressively prosecute those who commit wage theft and ensure that workers received the compensation they have earned.”

Raymundo and Lalo Drywall initially paid $300,000 to the state for restitution and an additional $50,000 for unpaid unemployment insurance contributions. Now the defendants will pay $200,000 more in restitution and an additional $10,000 in unpaid unemployment insurance contributions.

“Contractors who cheat workers out of their rightful pay must be held accountable and DOI, along with the attorney general and our partner agencies, will continue to aggressively seek out and expose the individuals and businesses who attempt to line their pockets with the hard-earned wages of workers,” said New York City Department of Investigation Commissioner Mark G. Peters.


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