New York Daily News

Builder bigs nailed for stiffing workers

- BYJENNIFER H. CUNNINGHAM jcunningha­m@nydailynew­s.com

A BRONX constructi­on company has agreed to pay $500,000 in back wages after stiffing nonunion laborers on a city-funded affordable housing project for nearly a year.

A Bronx Supreme Court Judge Steven Barrett ordered four top Applied Constructi­on executives to repay 20 workers following a guilty plea in November of scheming to defraud, a felony.

“Developmen­t of affordable housing is critical for New York City, but it must be done with contractor­s and subcontrac­tors who follow the law and pay their workers properly,” said state Attorney General Eric Schneiderm­an.

In 2011, Applied Constructi­on scored a contract with the city Department of Housing Preservati­on and Developmen­t to renovate 2865 Kingsbridg­e Terrace in Kingsbridg­e, officials said.

Applied Constructi­on owner Mohammad Riaz, 35, agreed to pay workers at least $8 an hour plus health benefits as they installed new windows and repaired the facade of the 105-unit Mitchell-Lama co-op building, officials said.

But instead of honoring the contract, Riaz, his manager Mohammad Arshad, 40, and foremen Zbigniew Lakomiec, 59, and Socrates “Tony” Carrera, 39, colluded to pay their non-union workers up to $20 an hour — without benefits.

They concealed the scheme by paying some workers what they were entitled to and forcing them to kick some of it back, according to charges filed by Schneiderm­an’s office.

The executives paid some workers in cash and left out others in payroll reports to the city.

HPD officials tipped off the Attorney General’s office after noticing irregulari­ties in compliance paperwork.

“Today’s sentencing sends an unambiguou­s message to any contractor that would cheat its employees,” said HPD Commission­er Vicki Been in a prepared statement.

All four of the men have been barred from working on public constructi­on projects for the next five years.

No one answered the phone listed for Applied Constructi­on Tuesday.

Newspapers in English

Newspapers from United States