The Real Deal New York

Contractors charged with cheating workers out of $1M in wages

Construction crews were bilked out of money on NYCHA and public school projects

April 09, 2015 09:30AM

Rendering of 404-414 West 155th Street in Sugar Hill (credit: David Adjaye) (inset: Eric Schneiderman and Mark Peters)

Five builders were hit with criminal charges yesterday accusing them of failing to pay workers $1 million in wages on city-subsidized projects.

The builders were working on a Queens NYCHA development called the Pomonok Houses, Harlem’s taxpayer-subsidized Sugar Hill housing development, and two public schools, according to the New York Daily News.

“We are seeking to make workers whole. We are taking money out of the pockets of cheating contractors,” said Attorney General Eric Schneiderman.

The charges come following a joint investigation of wage-cheating by Schneiderman and Department of Investigation Commissioner Mark Peters.

Among the builders charged is Lalo Drywall, owned by Sergio Raymundo. The company was a subcontractor on the Sugar Hill development and is accused of underpaying workers by $800,000 and falsifying documents. [NYDN] — Tess Hofmann