NEW YORK CITY AND STATE PARTNERS ANNOUNCE JOINT EFFORT TO COMBAT WAGE THEFT IN THE CONSTRUCTION INDUSTRY

Prosecutors Announce Criminal Charges in Multiple Cases Involving $2.5 Million in Stolen Wages

Indictments Stem from Joint Effort to Prevent Worker Exploitation through Statewide Wage Theft Initiative

  Manhattan District Attorney Cyrus R. Vance, Jr., New York State Governor Andrew M. Cuomo, New York State Attorney General Eric T. Schneiderman, Acting Brooklyn District Attorney Eric Gonzalez, Bronx District Attorney Darcel D. Clark, Queens District Attorney Richard A. Brown, Staten Island District Attorney Michael E. McMahon, Nassau County District Attorney Madeline Singas, Westchester District Attorney Anthony A. Scarpino, Jr., New York City Department of Investigation Commissioner Mark G. Peters, and New York City Comptroller Scott M. Stringer today announced criminal charges in a series of cases stemming from a joint effort by city and state partners in law enforcement and government to prevent the exploitation of workers through the Wage Theft Initiative and as part of a greater effort to ensure workplace safety, root out corruption, and deter fraud in the construction industry.

“Every week, New Yorkers lose $20 million in unpaid wages,” said Manhattan District Attorney Cyrus R. Vance, Jr. “And every day, construction workers who risk their lives doing dangerous jobs have to wonder whether they’ll actually be paid for their work. Wage theft is one of the most pervasive problems in New York City and State, and in the construction industry in particular, workers are all too often preyed upon by their employers, who are able to steal millions of dollars in unpaid wages. I’m proud and grateful to stand with our partners in law enforcement and government against this type of fraud. As the giving season approaches, it is my hope that the holidays will be that much brighter for the families of more than 300 New Yorkers who will be receiving $500,000 in back pay owed to them.”

Governor Cuomo said: “New York believes in a fair day’s pay for a fair day’s work and ‎has zero tolerance for those who seek to rob employees and deny them the wages they are rightfully owed. This crackdown sends a strong and direct message that workers will be protected and the principles of fairness and equality will continue to be upheld in this great state.”

Attorney General Schneiderman said: “The law is clear: New Yorkers are entitled to a fair day's pay for a fair day's work. My office has zero tolerance for wage theft. Since 2011, we’ve recovered nearly $30 million in stolen wages for more than 21,000 workers – and we’ll continue to ensure that New York’s working families are given the fair shake they deserve.”

Acting District Attorney Eric Gonzalez said: “In Brooklyn, we are committed to protecting workers and ensuring that they are not cheated out of their hard-earned wages. We have been fighting to hold employers accountable for a long time, and will continue to do so. We are proud to be a part of the Wage Theft Initiative to make certain that businesses across the state are put on notice that stealing from workers is a crime and will be prosecuted.” 

Bronx District Attorney Darcel D. Clark said: “Anyone who would exploit construction workers who perform difficult, often dangerous jobs building our city’s skyline will be prosecuted and face punishment. The Statewide Wage Theft Initiative empowers us to fight more effectively as partners to ensure wage-fairness, and to stem corruption and fraud in this vital industry.  As in the past, the Bronx District Attorney’s Office is prepared to investigate and prosecute all offenders who consciously prey on hard-working hardhats. They deserve, as do all workers, to be paid a fair wage for every hour of labor.”

Queens District Attorney Richard Brown said: “The failure to pay wages is a prevalent problem all over New York and in Queens, in particular, due to our large immigrant population. Many immigrant workers who come to the United States are forced to work for private contractors for far below prevailing rates and then only to see their wages withheld or their paychecks bounce for lack of funds. The end result is that the workers are put in the difficult position of complaining and losing their jobs or staying silent and being taken advantage of. In the case being prosecuted in Queens, the employers are alleged to have refused to pay employees the wages agreed upon by both parties.”

DOI Commissioner Mark G. Peters said: “As alleged, these contractors preyed on their workers, using deception and betrayal to steal their pay. This law enforcement initiative to expose and stop construction owners from cheating their employees and then lying to regulators so they can keep going is critical to instilling integrity and stopping these charged crimes. DOI is proud to stand with the Manhattan DA’s Office and all our partners to put an end to this type of worker exploitation.”

New York City Comptroller Scott M. Stringer said: “This is about right and wrong—and it’s about fairness. That’s why I take our authority to set and enforce prevailing wages very seriously, and it’s why my office will continue to work with the Attorney General and District Attorneys to bring unscrupulous employers to justice. We’re going to work together like never before to track down those who commit serious prevailing wage violations and stand up for the law.”

Joint Wage Theft Initiative

In New York State, wage theft accounts for more than $1 billion in lost wages per year and affects tens of thousands of workers. To address this type of fraud, district attorneys from New York City and State, the New York City Department of Investigation (“DOI”), New York City Comptroller’s Office, New York State Attorney General’s Office, and New York State Department of Labor (“NYS DOL”) joined together to investigate wage-related theft, fraud, and abuse as part of the Wage Theft Initiative. 

To date, several cases involving multiple jurisdictions have been brought against defendants across New York City and State, accounting for more than $2.5 million in stolen wages affecting over 400 workers. [1] 

Manhattan

CITY METRO CORP., NIKITAS NIKOLIS, 61, and ANTHONY CAGGIANO, 54, are charged in an indictment filed in New York County Supreme Court with Grand Larceny in the Second and Third Degrees, Scheme to Defraud in the First Degree, and Offering a False Instrument for Filing in the First Degree for stealing over $241,000 from more than 45 construction workers, who were tasked with performing a concrete installation project at a hotel being built in Midtown Manhattan. Between June 2015 and April 2017, a number of workers were only paid part of their wages, or in some cases, not paid at all. Instead, the defendants diverted portions of the monies that should have been used to pay their employees. Assistant District Attorneys Leah Keith and Carey Ng are handling the prosecution of the case, under the supervision of Assistant District Attorney Diana Florence, Attorney-in-Charge of the Construction Fraud Task Force and Senior Investigative Counsel, and with the assistance of Task Force Coordinator Hildalyn Colon Hernandez, Principal Financial Investigator Robert Pomeroy, and Paralegals Sophia Inkeles and Amanda Bauza.

In a separate case, WHISK REMODELING CORP. was convicted of Offering a False Instrument for Filing in the Second Degree for failing to pay nearly 29 workers approximately $90,000 in wages. Assistant District Attorney Carey Ng handled the prosecution of the case with the assistance of Paralegal Sophia Inkeles.

In yet another case, SKY MATERIALS CORP. was previously convicted of Offering a False Instrument for Filing in the First Degree for submitting false information about the value of its payroll. The company agreed to pay approximately $464,000 in back wages to their workers, which has been paid in full. The same company was also convicted of Manslaughter in the Second Degree for the death of a worker at a construction site overseen by the company. Assistant District Attorney Diana Florence, Attorney-in-Charge of the Construction Fraud Task Force and Senior Investigative Counsel, handled the prosecution of the case.

All of the cases were handled under the supervision of Assistant District Attorney Michael Ohm, Deputy Chief of the Rackets Bureau, Assistant District Attorney Judy Salwen, Principal Deputy Chief of the Rackets Bureau, Assistant District Attorney Jodie Kane, Chief of the Rackets Bureau, and Executive Assistant District Attorney Michael Sachs, Chief of the Investigation Division. The following agencies and individuals also assisted with the investigations: DOI, in particular, Special Investigator Janaina Siguencia, Chief Investigator James McElligott, Assistant Inspector General Dan Taylor, Inspector General Gregory Cho, Associate Commissioner Jay Flaherty, Deputy Commissioner & Chief of Investigations Michael Carroll, and First Deputy Commissioner Lesley Brovner; and NYS DOL, in particular, Deputy Commissioner for Worker Protection James Rogers, Assistant Deputy Commissioner for Worker Protection Milan Bhatt, Chief Labor Standards Investigator Frank King, Supervising Labor Standards Investigator Emy Bautista, and Labor Standards Investigator Carlos A. Ortiz.

Brooklyn

In November, MICHAEL RIGLIETTI, 50, and MSR ELECTRICAL CONSTRUCTION COMPANY, pleaded guilty in Brooklyn Supreme Court to Grand Larceny in the Second Degree and agreed to forfeit $2.5 million for stealing more than $700,000 from workers by failing to pay the prevailing wage on several public works projects. Between December 2012 and December 2015, the defendants were granted more than a dozen public works contracts from three government agencies, including the New York City School Construction Authority, which contracted the defendants to complete electrical work at multiple public schools in Brooklyn; the New York State Office of General Services, which contracted the defendants to perform work at a psychiatric center in Queens; and the Metropolitan Transportation Authority (“MTA”), which contracted the defendants to perform services at five MTA locations in Manhattan and Queens. Assistant District Attorney Samantha Magnani, of the Brooklyn District Attorney’s Office, handled the prosecution of the case under the supervision of Assistant District Attorney Dana Roth, Deputy Bureau Chief, and Assistant District Attorney Patricia McNeill, Deputy Chief of the Investigations Division.

In a separate case, MEHDI DAYAN and the defendant’s company, EEC GROUP TECH INC., pleaded guilty in Brooklyn Supreme Court to Grand Larceny in the Second Degree and Scheme to Defraud in the First Degree and agreed to pay restitution in the amount of $650,000 for stealing hundreds of thousands of dollars from their employees, who were underpaid for work performed at a construction project in Brooklyn. Assistant District Attorney Meredith McGowan, formerly of the Brooklyn District Attorney’s Office, handled the prosecution of the case under the supervision of Assistant District Attorney Dana Roth, Deputy Chief of the Frauds Bureau, Assistant District Attorney Felice Sontupe, Chief of the Frauds Bureau, Assistant District Attorney Patricia McNeill, Deputy Chief of the Investigations Division, and Executive Assistant District Attorney William E. Schaeffer, Chief of the Investigations Division. 

Bronx

AVM CONSTRUCTION CORP., GAYATRI MANGRU, RAVI MANGRU, and VICKRAM MANGRU are charged in an indictment filed in Bronx Supreme Court with Falsifying Business Records in the First Degree and Failure to Pay Prevailing Wages and Benefits for failing to pay employees approximately $281,000 in wages. Between 2014 and 2015, the defendants falsified payroll summaries to indicate that workers were being paid prevailing wages for public works projects, when in fact, workers were paid less than prevailing wages. Assistant Attorney General Matthew Ross is handling the prosecution of the case, under the supervision of Assistant Attorney General Richard Balletta, Criminal Section Chief of the Labor Bureau.

Queens

NIKITAS NIKOLIS and MAGNETIC CONTRACTING CORP. are charged in a criminal complaint filed in Queens County Criminal Court with Grand Larceny in the Second and Third Degrees, Criminal Possession of Stolen Property in the Second and Third Degrees, Scheme to Defraud in the First Degree, and other charges for stealing more than $90,000 from at least six workers. Assistant District Attorney Neil F. Gitin, Supervisor of the Queens District Attorney’s Office’s Special Proceedings Bureau, and Assistant District Attorney Kiran K. Cheema, also of the Special Proceedings Bureau, are handling the prosecution of the case under the supervision of Assistant District Attorneys Oscar W. Ruiz and Nicoletta J. Caferri, Deputy Bureau Chiefs, Assistant District Attorney Anthony M. Communiello, Bureau Chief, and Executive Assistant District Attorney for Investigations Peter A. Crusco. The following individuals provided additional assistance with the investigation: Investigator Leslie Harrington, of the New York State Police’s Queens Criminal Squad, Senior Investigator David S. Douglas, Lieutenant Frank Vitko, Captain Paul Hogan, and Major Robert Willis, Commanding Officer of Troop NYC.

Nassau

NATIONAL INSULATION & GC CORP. was convicted of Offering a False Instrument for Filing in the First Degree and NICHOLAS GRGAS was convicted of Offering a False Instrument for Filing in the Second Degree for failing to pay at least 6 employees more than $13,000 in wages. Assistant District Attorney Mayra Ivelisse Lopez handled the prosecution of the case, with the assistance of Detective Investigators Thomas McDonald and Miguel Brodoy, both of the Investigations Bureau.

Westchester

DONATO PAGNOTTA, GIOVANNI DILULLO, and their company, J&D PAINTING CONTRACTORS CORP. (“J&D”) are charged in an indictment filed in Westchester County Supreme Court with Grand Larceny in the Third and Fourth Degrees, Scheme to Defraud in the First Degree, and other charges for stealing approximately $39,000 from 6 workers. In addition to failing to pay their workers properly, the defendants also failed to contribute to the Unemployment Insurance Fund during the second, third, and fourth quarters of 2016. Assistant Attorney General Jeremy Pfetsch is handling the prosecution of the case, under the supervision of Assistant Attorney General Richard Balletta, Criminal Section Chief of the Labor Bureau. Deputy Commissioner for Worker Protection James Rogers and Assistant Deputy Commissioner for Worker Protection Milan Bhatt, both of NYS DOL, provided additional assistance with the investigation. 

Construction Safety Community Project

In January 2016 and following a series of successful trial convictions related to the death of worker Carlos Moncayo at an unsafe construction site in the Meatpacking District, Manhattan District Attorney Cyrus R. Vance, Jr., created the Construction Safety Community Project to train workers to recognize workplace safety hazards and report them to law enforcement. To date, prosecutors and community coordinators assigned to a task force, along with DOI investigators, have given approximately 45 presentations to more than 2,000 workers in both English and Spanish, encouraging them to submit anonymous reports, photos, videos, and other materials documenting unsafe work conditions. Through WhatsApp, messages may be sent directly to the Manhattan District Attorney’s Office at 646-712-0298.

These reports may be investigated by members of the Construction Fraud Task Force, which was formed in partnership with multiple city agencies to identify and pursue criminal cases against those who endanger the wellbeing of others, contribute to industry corruption, and create unsafe spaces in New York City and State. 

Criminal Justice Investment Initiative

This year, the Manhattan District Attorney’s Office also announced a $1.6 million grant to the New York Committee for Occupational Safety and Health (“NYCOSH”) to fund a program benefiting tens of thousands of low wage-earning individuals. The program, which is part of the Manhattan District Attorney’s Criminal Justice Investment Initiative (“CJII”), is designed to end the disproportionate number of immigrant workers who become victims of workplace crimes committed by their employers, including wage theft, provide victims with referrals and access to support services, and increase the reporting of criminal activities by employers. 

^[1] The charges contained in the criminal complaints and indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.

REMARKS OF DOI COMMISSIONER MARK G. PETERS FOR ANNOUNCEMENT OF JOINT EFFORT TO COMBAT WAGE THEFT IN THE CONSTRUCTION INDUSTRY

  I want to thank Manhattan District Attorney Cy Vance and all of our law enforcement partners here today on this important wage theft initiative within the construction industry. DOI is proud to stand side-by-side with you and to help protect the rights of workers and the integrity of construction sites. 

 These cases are significant. They expose how contractors and construction owners used their payroll as a way to cheat their workers, steal their wages, and illegally profit from their own employees. These cases show how worker exploitation degrades integrity on construction sites and undermines the construction industry.

 And, finally, these cases show that if we are not vigilant, owners will then lie to government regulators in ways that conceal their bad acts.

 There is no other way to describe this conduct than criminal. Two cases that we worked together on with the Brooklyn District Attorney have led to arrests in a total of $1.7 million in wage theft, where the contractors are charged with falsifying payrolls on City construction jobs. In each of these cases, law enforcement was alerted to potential misconduct by DOI monitors on these construction sites.

 In another case DOI investigated with the Manhattan District Attorney, we found that City Metro Corp. lured crews of workers with the promise of a $45-an-hour job; strung these workers along with a promise to pay them for the work they did; then either did not pay them or provided “empty” checks that employees were instructed to cash only at check-cashing establishments. The result: when the check cashing establishments realized there were no funds to back up the checks, they went after the workers for the funds.

 These workers did nothing wrong. They showed up to work. They did their job. They deserve their pay.

 Through these cases, DOI and all of the agencies standing here before you hope to realize that goal and recoup the stolen funds for all the workers victimized in these schemes. We are already seeing some success and look forward to advancing this effort.

 Further, as investigators, we know that wage theft can be a red flag to other misconduct. One of the cases we investigated demonstrates that link. As charged in the indictment, DOI also found that the owner of City Metro Corp. concealed his ownership to another similar company, in an application for a general contracting license he submitted to the City Buildings Department. That concealment would have obscured the true history and associations of the company.

 Criminal complaints and indictments are accusations. Defendants are presumed innocent until proven guilty.

A.G. Schneiderman Announces FCC IG's Office Reverses Course After Pressure, Signals Intent To Assist With AG's Investigation Into Fake Comments Submitted During Net Neutrality Comment Process

A.G. and FCC Commissioner Rosenworcel Call for FCC Vote to be Halted, FCC’s Full Cooperation with AG Investigation – with One Million Americans’ Identities Potentially Misused 

AG’s Office Reveals New Numbers on New Yorkers Whose IDs Were Taken to Submit Fake Comments 

A.G. Encourages New Yorkers to Check if Their Identity was Misused and Report It to His Office at ag.ny.gov/FakeComments

  New York Attorney General Eric T. Schneiderman and Federal Communications Commission (FCC) Commissioner Jessica Rosenworcel today called on the FCC to fully cooperate with Attorney General Schneiderman’s investigation, after the FCC Inspector General’s office reversed course and signaled its intent today to assist with Attorney General’s inquiry into one million fake comments submitted during the net neutrality comment process. Attorney General Schneiderman and Commissioner Rosenworcel also called for the FCC’s planned December 14^thvote on net neutrality to be halted while these fake comments are investigated.

“Federal law guarantees every American a voice in shaping our policies. But my office’s investigation found that this process was deeply corrupted – with one million comments that may have been submitted using real people’s stolen identities,” said Attorney General Schneiderman. “For months the FCC refused to help us get to the bottom of what happened. That’s why we asked New Yorkers to help – and in the last few days alone, thousands of Americans and hundreds of New Yorkers have reported that their identities were misused. Finally, just this morning, the FCC Inspector General’s office indicated that it may help. We’re going to hold them to that – and, in the meantime, it’s vital that the FCC delay the vote until we know what happened.”

“Our Internet economy is the envy of the world because it is open to all. That is why I support net neutrality. But the FCC is on course to eliminate net neutrality guided by a record corrupted by hundreds of thousands of filings with stolen identities, close to half a million comments from Russian e-mail addresses, and an alleged distributed denial of service attack,” said FCC Commissioner Jessica Rosenworcel. “This is unacceptable. The integrity of the public record matters. The FCC needs to get to the bottom of this mess. No vote should take place until a responsible investigation is complete.”

In a November 21^stopen letter to FCC Chairman Ajit Pai, Attorney General Schneiderman announced that his office has – for six months – been investigating the submission of enormous numbers of fake comments on the possible repeal of neutrality rules, which used real Americans’ identities. An updated analysis by the Attorney General’s office found that approximately one million of these comments may have misused the real names and addresses of Americans – including tens of thousands of New Yorkers.

Prior to releasing the open letter, the Attorney General’s office had contacted the FCC and its top officials at least nine times to request assistance in its investigation. The FCC and the FCC Inspector General’s office had been unwilling to provide records necessary to investigate who may be behind the misused identities – a departure from past practice, where the FCC has cooperated with the Attorney General’s office on confidential investigations into practices that harmed New Yorkers and residents of other states. However, earlier today, the FCC’s Inspector General’s office reversed course, indicating that it will assist with the Attorney General’s investigation.

Last week, on Wednesday, Attorney General Schneiderman launched a new webpage for New Yorkers to check whether their identities were wrongfully used without their consent. In the last five days alone, over 3,200 people have reported misused identities to the Attorney General’s office, including nearly 350 New Yorkers from across the state.

Attorney General Schneiderman urges New Yorkers to continue to check whether their identity was misused and report it to his office in order to inform the investigation.

A.G. Schneiderman Announces Indictments Of Construction Contractors For Failing To Pay More Than $280,000 In Wages To Workers On Public Work Projects

Vickram, Gayatri, And Ravi Mangru—Operators Of  Vick Construction and AVM Construction Corp.—Allegedly Failed To Pay Prevailing Wages, Falsified Documents On Construction Work at Several NYC Public Schools

To Date, Attorney General Schneiderman Has Won Back Nearly $30 Million in Stolen Wages for Over 21,000 Workers Across New York

   Attorney General Eric T. Schneiderman today announced an eight-count indictment of Vickram Mangru, his wife Gayatri Mangru, and son Ravi Mangru, of Valley Stream, NY, for allegedly failing to pay proper prevailing wages to workers and falsifying business records related to a publicly-funded New York City construction project.

Between 2012 and 2015, the New York City Department of Education Division of School Facilities contracted Vick Construction and AVM Construction Corp. for a development and repair project at several Bronx public schools. Vickram Mangru owned and operated Vick Construction between 2012 and 2014 and Gayatri Mangru and Ravi Mangru owned AVM Construction Corp. between 2014 and 2015. However, Vickram Mangru ran the day-to-day operations of both companies. 

As alleged in the indictment, Vickram Mangru created AVM Construction Corp. as an extension of Vick Construction—which had previously been debarred and banned for a five-year period from performing public work projects by the New York City Comptroller’s Office for failing to pay proper prevailing wages to workers. As today’s indictment alleges, an investigation conducted by the Attorney General uncovered that the pervasive non-payment of prevailing wages and falsification of business records continued uninterrupted between both companies, resulting in the combined underpayment of $281,630.09 to several former employees of both companies.

“The law is clear: employers must pay their staff the prevailing wage on any publicly-funded project,” said Attorney General Schneiderman. “These defendants allegedly underpaid their employees for years — and tried to evade the law by closing down one sham business and opening up another. We have zero tolerance for this sort of behavior, and will continue to ensure all New Yorkers are paid a fair wage for a fair day’s work.”

The indictment further alleges that between December 22, 2012 and April 12, 2014, Vickram Mangru—as owner of Vick Construction—failed to pay several of his employees’ proper prevailing wages for construction and repair work on several public schools in the Bronx. State law requires that on certain construction projects designated as “public works,” workers must be paid a pre-determined industry minimum wage per hour, plus a benefit rate, collectively known as a “prevailing wage rate.” Instead of paying this prevailing wage rate, the investigation revealed that Vickram Mangru allegedly paid his workers between $120 and $160/day for 40-50 hours worked per week – an amount far less than what his employees were owed under the prevailing wage rate. To cover up the crime, Vickram Mangru falsified Certified Payroll Records and Reports submitted to the New York City Department of Education by claiming that he did pay workers the proper prevailing wage rate. However, bank checks subpoenaed by the Attorney General revealed that Vickram Mangru was lying about those payments to his workers. As a result, Vickram Mangru and Vick Construction were debarred by the New York City Comptroller’s Office from bidding on or being awarded any public works projects for five years in 2013. Undeterred, Vickram Mangru continued operating Vick Construction and allegedly continued failing to pay prevailing wages at the same Bronx, NY public schools. 

In April 2014, Vick Construction ceased operation and AVM Construction Corp. was formed by Gayatri and Ravi Mangru. However, the Attorney General’s investigation showed that Vickram Mangru allegedly continued to run the day-to-day operations that included the same type of construction work on the same Bronx public schools with the same employees. It is alleged that between April 13, 2014 and February 14, 2015, Vickram, Gayatri and Ravi Mangru continued to pay AVM Construction Corp. employees daily rates well below the proper prevailing wage rate, and that Gayatri Mangru falsified Certified Payroll Records and Reports to cover up the crime. 

The eight-count indictment filed in Bronx Supreme Court, Criminal Division, charges Vickram Mangru with one count of Failure to Pay Prevailing Wages and Benefits, a class “D” felony; three counts of Falsifying Business Records in the First Degree (in connection with Vick Construction), a class “E” felony. Vickram, Gayatri, and Ravi Mangru, as well as AVM Construction Corp., are charged with one count of Failure to Pay Prevailing Wages and Benefits (in connection with AVM Construction Corp.),  a class “D” felony. Additionally, Gayatri Mangru and AVM Construction Corp. are charged with three counts of Falsifying Business Records in the First Degree (in connection with AVM Construction Corp.),  a class “E” felony . All defendants face 2 1/3 to 7 years in prison if convicted of the top count. Vickram Mangru was previously arrested in May in connection with these charges and upon this indictment, Vickram Mangru, Gayatri Mangru, and Ravi Mangru were formally arraigned in Bronx Supreme Court on November 6, 2017.  The defendants are due back in court on February 7, 2018. 

To date, Attorney General Schneiderman has won back nearly $30 million in stolen wages for over 21,000 workers across New York. This case represents the latest in the Attorney General’s enforcement efforts to stop wage crimes throughout the state. Most recently, the Attorney General has:

• Convicted the owner of Mical Home Health Care Agency in Peekskill, NY of defrauding 67 employees out of over $135,000 in wages. The defendant was sentenced to 1 year in jail.
• Arrested and indicted the owners of J&D Painting in Westchester, NY for allegedly failing to pay six workers nearly $20,000 in wages.
• Arrested and indicted the owner of Southampton Princess Diner for allegedly stealing over $82,000 in wages from 13 employees. 

The Attorney General thanks the New York City Comptroller’s Office, specifically Constantine Kokkoris Chief of the Bureau of Labor and the Comptroller’s Office’s Bureau of Labor Law Supervising Attorney Michael Turilli, Agency Attorney Caroline Friedman, Management Auditor Ilona Stadnicka, as well as the Comptroller’s Office Director of Investigations Francisco Gonzalez and Investigator Dwayne Gibson.  The Attorney General also thanks the New York City Department of Education Division of School Facilities Deputy Director of Procurement Kimberly De Vine as well as Labor Law Investigator David Coles.   

The investigation was handled for the Attorney General’s Office by Investigators Frank Tirri and Ray Almodovar and Supervising Investigator Sylvia Rivera, under the supervision of Deputy Chief Investigator John McManus and Chief Dominick Zarrella.

The charges are merely accusations and all defendants are presumed innocent unless and until proven guilty in a court of law.

100 PERCENT

100 PERCENT

By Robert Press

What Happened?

  I have been asked what happened to my political column in the Bronx Voice. It was not my choice, and I will leave it at that. I have made it a policy not to say anything bad about previous connections, but I was not given a reason why the column was halted. Yes I was getting information that was turning out to be factual, Yes I did call the winning percentage of the Democratic primary in the 13th City Council race to the percentage point 39%, Yes the I was in the middle of several hot stories, and Yes I did not pull any punches in the column. 

  It seems when you are trying to be as objective as possible there are those who see it as a threat. Maybe it was the fact that after winning races by over 90% every time, when you criticize some one for winning an open seat with only 42 %, certain people don't like it. Since the 32nd State Senate seat will soon be an open seat now that State Senator Ruben Diaz Sr. has become Councilman Elect Ruben Diaz Sr. there should be a special election to fill his soon to be vacant state senate seat. I know that is what current Assemblyman Luis Sepulveda is hoping for, and the reason is that he can run for the state senate while still being an Assemblyman. If there was to be no special election Assemblyman Sepulveda would have to decide which seat in Albany he would go for, while leaving the other seat for someone else. However in a special election any registered voter can run, as long as you move into the district (within thirty days) should they win. 

  Then there is the 80th Assembly District which will also be vacant soon, and may have a special election called to fill that vacancy. The reason many people say there will be a special election is that there is another vacant State Senate seat in Westchester County. Both vacant State Senate seats were held by Mainline Democrats, and should be won by Democrats that is unless the person who wins the vacant 32nd district joins the IDC, and the person who wins the vacant Westchester seat is a Republican. 

  The Independent Democratic Conference or IDC is now an eight member group of elected Democrats who instead of blindly listening to Democratic State Senate bosses, have become a conference that is trying to push Democratic values, while working the other side of the isle. This has paid off for the IDC members who have climbed the ladder of success for their districts. Any IDC member who would leave the IDC would find themselves back at the bottom of the ladder, and their districts would suffer. 

  As for the political column 100 PERCENT, here and on my facebook page 100 PERCENT is where you will be able to find this column, that is unless I find a new home for it (which is already in the works). As for me I will continue to do my job, but I am also looking into doing consulting work on campaigns like I should have done this past year. I am already speaking to more than one serious candidate, and I am open to listening to others. The coming year features races for Congress, State Senate, and State Assembly, not to mention all the party positions. 

  In future columns I will get back to the usual summary of events. If you have any comments you can e-mail me at 100percentbronxnews@gmail.com or call me at 718-644-4199.  

STATEMENT FROM BOROUGH PRESIDENT DIAZ RE: Senate Passage of the Trump Tax Bill

  “The Trump administration and the Republican-led Congress have partnered to pass a new tax law that is a disaster for the people of New York City.

 

“This new law eliminates local deductions and the ability to deduct medical expenses, both of which will only increase the burden on those who are struggling to get by.

 

“A rushed, hyper-partisan tax plan that benefits the super rich at the expense of the sick is not what this city and this nation deserve,” said Bronx Borough President Ruben Diaz Jr.

EDITOR'S NOTE:

It is interesting that Bronx Borough President Ruben Diaz Jr. cares for the people of New York City over the people of the Bronx who he is currently suppose to represent. 

Are we looking at another Bill de Blasio who is looking at his possible future aspirations over his current job?

Borough President Diaz just how many residents of the Bronx use form 1040 or 1040A to itemize deductions, and how many use 1040EZ where the taxpayer can not itemize deduction? Just how many residents of the Bronx will actually be hurt from the new tax code that Democrats are trying to sabotage?

When you can come up with exact numbers, then say so. At least Comptroller Scott Stringer came up with 20 reasons, and projected numbers, as small as they are for a city of 8.5 million people.

A.G. Schneiderman Announces Grand Jury Indictment Of Steve Pigeon, Kristy Mazurek, And David Pfaff

Western New York Political Operatives Charged With Knowingly and Willfully Engaging In Illegal Campaign Coordination 

  Attorney General Eric T. Schneiderman announced a grand jury indictment charging G. Steven Pigeon, 56, Kristy Mazurek, 46, and David Pfaff, 58, each with two class E felonies in violation of Election Law section 14-126 (5), related to unlawful coordination with candidates for the Erie County Legislature. The three defendants were previously arraigned on a felony complaint regarding the same charges on April 19, 2017 before the Hon. Donald F. Cerio, Jr., in New York State Supreme Court, Erie County. 

According to the indictment, Pigeon, Mazurek, and Pfaff are alleged to have knowingly and willfully engaged in illegal campaign coordination while acting on behalf of the Western New York Progressive Caucus (“WNYPC”) and Western New York Freedom (“WNYF”), “unauthorized political committees,” regarding the nomination for election of two political candidates in the September 10, 2013 Democratic primary. Each defendant faces a maximum sentence of four years if convicted on either count. The indictment stems from a joint investigation conducted by the Office of the Attorney General, the New York State Police, the Federal Bureau of Investigation (FBI), and the New York State Board of Elections.

The full indictment can be read here.

“Today’s indictment sends a clear message that we’ll continue to aggressively enforce our state’s election and campaign finance laws,” said Attorney General Eric Schneiderman. “As we allege, the defendants illegally coordinated with their own handpicked candidates for office, using a political committee to circumvent the law and undermine the integrity of our elections. These actions aren’t just illegal – they erode the public trust, and we intend to hold them accountable.”

According to the original felony complaint, Pigeon and Mazurek are alleged to have created WNYPC for the purpose of electing their preferred candidates and so that many of the candidates funded by WNYPC were relying almost entirely on the political committee for all campaign-related expenditures. In fact, as the felony complaint detailed, very little money was raised by the candidates themselves. For example, one candidate raised just $125 between July 27, 2013 and September 10, 2013, while WNYPC received approximately $283,000 in contributions and spent extensively in support of the candidate’s campaign – resulting in the vast majority of the candidate’s campaign-related costs being borne by WNYPC rather than the candidate’s committee.

As the original felony complaint also alleged, the defendants – on behalf of WNYPC – sought input from two candidates regarding campaign literature and arranged for them to appear at a photo shoot paid for by WNYPC. WNYPC also paid other expenses on behalf of one of the candidates that exceeded the $1,476.50 contribution limit of that race by over $15,000; and paid nearly $12,000 worth of expenses over the $2,192.70 contribution limit for the second candidate’s race. 

An unauthorized political committee is a political committee that is not specifically authorized by one candidate or a group of candidates to raise or spend money on their behalf for their election.  

Campaign coordination is a crime under the Election Law that is committed when a person knowingly and willfully solicits, organizes, or coordinates the activities of an unauthorized committee with the activities of a candidate or the candidate’s agents for the purpose of making expenditures on behalf of the candidate that exceed the contribution limit for that candidate’s race.

In addition to the new charges filed today, Pigeon is currently under indictment for the crimes of Bribery in the Second Degree, Bribery in the Third Degree, six counts of Rewarding Official Misconduct in the Second Degree, and Grand Larceny in the Third Degree. The charges arise from conduct involving former State Supreme Court Justice John A. Michalek, who resigned from the bench after pleading guilty to the felony charges of Bribe Receiving in the Third Degree and Offering a False Instrument for Filing in the First Degree on June 29, 2016. Pigeon is also under federal indictment for Conspiracy, Wire Fraud, Bribery, and Travel Act charges; that case is pending before Federal Magistrate Michael J. Roemer.

Assistant Attorney General Susan H. Sadinsky of the Attorney General’s Public Integrity Bureau and Assistant Attorney General Diane M. LaVallee of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau are prosecuting this case under the supervision of Public Integrity Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The investigation was handled by Supervising Investigator Richard Doyle and Investigator Brian G. Ross of the Investigators Bureau, which is led by Deputy Chief Antoine Karan and Chief Dominick Zarrella, and Special Agent Brian A. Burns of the Federal Bureau of Investigation. Senior Analyst Robert Vanwey of the Attorney General’s Office also worked on the investigation. The Attorney General thanks Chief Enforcement Counsel Risa Sugarman and the New York State Board of Elections for their vital work on the case.

The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.

A.G. Schneiderman Announces Indictment Charging Rensselaer County DA Joel Abelove With Official Misconduct And Perjury

  New York Attorney General Eric T. Schneiderman announced a grand jury indictment charging Rensselaer County District Attorney Joel Abelove with two counts of official misconduct and one count of perjury in the first degree. The charges stem from Abelove’s handling of the April 2016 death of Edson Thevenin, a civilian who was shot and killed during an encounter with Troy police.

In July 2015, Governor Cuomo signed Executive Order No. 147, appointing the Attorney General as special prosecutor in cases where a law enforcement officer causes the death of an unarmed civilian or where there is a significant question as to whether the civilian was armed and dangerous. Following the death of Edson Thevenin during an interaction with Troy Sergeant Randall French, the Attorney General’s Special Investigations and Prosecutions Unit informed Abelove that it needed further information to determine whether the death fell within the Attorney General’s jurisdiction, pursuant to the Executive Order.However, as the Attorney General’s office has alleged, instead of providing that information, Abelove quickly and surreptitiously presented the case to a grand jury.

In violation of both his legal and ethical obligations, Abelove allegedly withheld material evidence from the grand jury, effectively coopting its ability to make an informed decision about the matter – with the inevitable and intended result that no charges were brought against French. Furthermore, Abelove allegedly took the extraordinary step of conferring immunity upon French before the grand jury even took a vote, seeking to protect French from any potential future prosecution in the Thevenin shooting.

On April 29, 2016, Governor Cuomo issued Executive Order No. 147.4, empowering the Attorney General to investigate any “unlawful acts or omissions” by Abelove or any other law enforcement officer involved in the Thevenin grand jury presentation. Abelove then testified during the grand jury investigation into his handling of the Thevenin matter, and allegedly, in an effort to legitimize his own conduct, made a materially false claim about the granting of immunity by another prosecutor during the grand jury investigation of a prior police shooting handled by his office.

The indictment charges Abelove with two counts of official misconduct, a class A misdemeanor, for knowingly withholding evidence from a grand jury investigating the death of Edson Thevenin and knowingly failing to secure a waiver of immunity from French as a condition of his testifying before the grand jury; and one count of perjury in the first degree, a class D felony, for making a false statement under oath to a Rensselaer County grand jury investigating Abelove’s conduct.

“As we allege, District Attorney Abelove’s actions violated the law and undermined a criminal investigation,” said Attorney General Schneiderman. “The Governor’s Executive Order was designed to restore public confidence in our criminal justice system – yet the actions we detail today only served to further erode that confidence. My office will continue to work collaboratively with law enforcement agencies across the state, including district attorneys, to ensure fair, comprehensive, and independent investigations of every case within our jurisdiction, so that families like the Thevenins get the answers they deserve.”

In March 2017, Abelove – in an attempt to stop the Attorney General’s investigation – filed suit against the Attorney General, arguing that Executive Order No. 147 was unconstitutional. The New York Supreme Court rejected Abelove’s claims and dismissed the suit in full in an August 2017 ruling.

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.