8 People, 9 Businesses Charged In Labor Crackdown: Officials

SUFFOLK COUNTY, NY — Eight people and nine businesses have been charged in a labor-related crackdown in Suffolk County.

The crimes collectively saw the theft of more than $250,000 in employees’ wages and benefits, nonpayment of more than $58,000 to the Department of Labor for unemployment insurance fund contributions, and failure to pay more than $133,000 to the state’s insurance fund for workers’ compensation insurance premiums, prosecutors said. Two defendants also illegally dumped polluted water into a public storm water drain, prosecutors said.

"Here in Suffolk County, we will not tolerate the exploitation of workers or our taxpayers by greedy corporations and business owners," Suffolk County District Attorney Timothy D. Sini said in a news release. "That is why my Office, along with our partners, is aggressively identifying and prosecuting bad actors in the business community and holding them accountable. Indeed, not only will our efforts protect workers and taxpayers, they will also prevent these bad businesses from gaining an unfair competitive advantage against legitimate, law-abiding businesses."

The sweep involved a months-long investigation and resulted in the following arrests:

• Robert Montgomery, 60, of Garden City, and Bob 1232 Jericho Corp., also known as DHCW Inc., which did business as Dix Hills Brushless Car Wash, were charged with first-degree scheme to defraud , first-degree offering a false instrument for filing and discharging into state waters without a permit, a misdemeanor.

Operating as Dix Hills Brushless Car Wash, at 1232 E. Jericho Turnpike, Huntington, since 2014, the defendants paid employees less than minimum wage and did not pay time-and-a-half for extensive overtime worked, prosecutors said. Employees regularly worked more than 60 hours a week, prosecutors said. The defendants owe more than $180,000 for three years of unpaid wages beginning in 2014, prosecutors said. The defendants also falsely reported having no workers to avoid paying $29,000 in unemployment insurance contributions, prosecutors said.

Montgomery also dumped the car wash runoff water from the collection tanks into storm water drains on Jericho Turnpike, prosecutors said, instead of having it pumped and carted away as required by state environmental regulators. Volatile organic compounds and high levels of heavy metals tested positive in the runoff, authorities said.

• Andrew Woodstock, 57, of Oyster Bay, and Woodstock Construction Group, Inc., were charged with first-degree scheme to defraud and willful failure to file a true certified payroll, both felonies, prosecutors said.

From 2016 to 2018, Woodstock Construction Group was hired by the towns of Babylon and Islip for the Gilgo Beach Marina Dock Restoration public works project and the Bayport Beach Breakwater Restoration public works project respectively, prosecutors said. During those projects, employees were underpaid by more than $50,000, and dock-builders were improperly classifed as lower-wage workers and not paid overtime, prosecutors said. Woodstock left off overtime hours on the payroll documents and listed incorrect job classifications for 22 workers during the two projects, prosecutors said.

• Paul Gilistro, 58, of Selden, and Goldstar Installation Services, Inc., were charged with first-degree scheme to defraud and deliberately failing to file a true certified payroll, both felonies.

From 2016 to 2019, Gilistro and the company, which did business as The Floor Worx of Long Island, misclassified a dozen employees as independent contractors to avoid paying the statutory prevailing wage on public works jobs performed across Long Island, prosecutors said. Gilistro regularly falsified payroll records he filed to reflect the job classifications and wages the employees should have received, prosecutors said.

• Nicholas Guercio, 40, of Brightwaters, and Environmental Compliance Associates Corp., also known as "ECAC," were charged with two counts of first-degree offering a false instrument for filing, a felony).

In 2018, ECAC was the general contractor for a public works project at the Wading River Fire Department. During the course of the project, prosecutors said Guercio submitted forged lien releases signed by two subcontractors saying they were paid when they were actually owed more than a combined $30,000.

• Arsenio Carcamo, 58, of Oceanside, and Answer Construction Corp. were charged with insurance fraud practices, a felony.

Carcamo didn’t disclose his ownership of Answer Construction when applying for a workers’ compensation policy, prosecutors said. Before incorporating Answer Construction, prosecutors said Carcamo owned Multiwork Construction, which has an outstanding balance of more than $17,000 with the insurance fund, which made him ineligible to take out a new policy.

• Tosef Siddiqi, 66, of Westbury, and Allstate Enterprises, were charged with first-degree offering a false instrument for filing, and willful failure to file a true certified payroll, both felonies.

Siddiqi and Allstate Enterprises submitted a forged performance bond to the Huntington Union Free School District after winning the bid for a 2018 district-wide capital improvement project, prosecutors said. The defendants failed to submit certified payrolls for their time on the project, Sini said.

• Alan James, 70, of St. James, and APJ Restoration were charged with fraudulent insurance practices, a felony, according to prosecutors.

Insurance auditors discovered that between August 2017 to August 2018, the defendants failed to report more than $450,000 in revenue to avoid paying about $69,000 in policy premiums, officials said.

• Richard Hall, 57, of Northport, and Regal Contracting, were charged with first-degree scheme to defraud a felony, and deliberately failing to pay prevailing wages of less than $25,000, a misdemeanor, In addition, Hall and Triangle Enterprises of Long Island, were charged with fraudulent insurance practices, a felony.

In summer 2018, Hall and Regal Contracting, failed to pay $7,400 in benefits to the Laborers Local 66 Benefit Fund for multiple workers on five different projects, Sini said. In December 2018, Regal cancelled its Insurance Fund policy, officials said. Hall then incorporated Triangle Enterprises of Long Island and prosecutors said he fraudulently omitted his ownership of the company on its application for workers’ compensation insurance. Regal Contracting owes more than $28,000 in unpaid unemployment insurance contributions and owes more than $48,000 in unpaid workers’ compensation premiums, therefore making Hall ineligible to take out a new policy, officials said.

"The Governor and the Department of Labor take the responsibility of enforcing labor and worker protections very seriously," Roberta Reardon, New York State Department of Labor commissioner, said. "We have zero tolerance for those businesses who seek to defraud the system. Businesses who don’t play by the rules will be held accountable. We are fortunate to have law enforcement partners like the Suffolk County DA’s office to help us reinforce those protections."

The investigations are ongoing. Sini urges anyone who worked for one of the companies and was underpaid or deprived of his or her wages to contact the Labor Crime Unit at 631-853-4232 or via email to InfoDA@SuffolkCountyNY.gov.