After an investigation by the New York State Department of Labor and the Manhattan District Attorney’s Construction Fraud Task Force, approximately 500 welders and iron workers will be compensated for stolen wages.
The investigation revealed that Maspeth, Queens County-based AGL Industries cheated workers out of overtime pay and wages owed and reported fraudulent financial information to the state. When workers brought concerns about underpayment to the company, they were told that there was nothing they could do to receive their proper wages.
Deciding to settle with the state, AGL signed plea agreement that will return approximately $6 million in stolen wages. That amount is the most ever recovered by the New York Department of Labor.
The structural steel fabrication company has admitted to third degree grand larceny and will pay back the money on a five-year plan, starting with a $1.5 million payment that was due on August 13th. Company official Dominic Lofaso also pleaded guilty to a Class D felony for grand larceny.
In total, AGL will be responsible for $6.25 million in restitution, which in addition to wage restitution also includes $260,855 in contributions due to the state’s Unemployment Insurance fund.
“Wage theft and fraud have no place in New York, and unscrupulous companies who break the law will be held accountable. I thank our diligent investigators and Manhattan prosecutors, as well as the heads-up from [Iron Workers] Local 361 that helped expose these crooks and bring them to justice,” said Department of Labor Commissioner Roberta Reardon
