Brooklyn construction firm will forfeit $2.5M for underpaying workers

MSR Electrical pleaded guilty to grand larceny and violating prevailing wage rules

New York /
Nov.November 15, 2017 02:15 PM

Creedmoor Psychiatric Center (Credit: Jim.henderson)

A Brooklyn construction company has admitted to underpaying its workers and will forfeit $2.5 million because of it.

MSR Electrical Construction Company and its head, 50-year-old Michael Riglietti, pleaded guilty on Wednesday to grand larceny and violating New York’s prevailing wage requirements, according to the Brooklyn District Attorney’s Office. On multiple projects, the firm was supposed to pay its workers $54 an hour plus benefits, but these workers instead got between $13.50 and $25 per hour with no overtime or benefits, officials said.

Riglietti will be sentenced to five years’ probation, and his company will be banned from public works contracts for five years and forfeit $2.5 million. Five of MSR’s workers will get more than $700,000 of the money, while the rest will go to city and state agencies.

MSR received 15 public works contracts between December 2012 and December 2015, according to the DA. The company worked at 13 public schools, five MTA locations and the Creedmoor Psychiatric Center in Queens.

Riglietti did not respond to a request for comment.

“This decision to steal wages turned out to be a very costly theft for these defendants,” acting Brooklyn District Attorney Eric Gonzalez said in a statement, “and should serve as notice to others considering cheating employees that they will be prosecuted.”


Related Articles

arrow_forward_ios
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

Silicon Valley exodus: Where’d everyone go?

Silicon Valley exodus: Where’d everyone go?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...