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Thursday, July 24, 2014

AG says builder cheated workers

By Adam Wisnieski
Posted

The owner of a Bronx-based construction company was arrested last week for allegedly ripping off employees who worked on an affordable housing project in Kingsbridge.

On March 7, Attorney General Eric Schneiderman, formerly a state senator representing Riverdale, announced the arrest of Mohammad Riaz, owner of Applied Construction, Inc.

Mr. Schneiderman accuses the owner of cheating employees out of hundreds of thousands of dollars in wages for work done at 2865 Kingsbridge Terrace between Nov. 9, 2011 and Aug. 30, 2012. 

Mr. Riaz and Allied’s manager and foreman are accused of not paying prevailing wages, required for projects overseen by the city’s Department of Housing and Preservations and Development, and of failing to provide benefits. 

Some workers were allegedly paid the required salary but bosses required them to return a portion of their weekly wages. 

“Contractors who work on affordable housing cannot ignore New York State’s labor laws,” Mr. Schneiderman said in a press release. “These defendants broke the law and will be brought to justice.”

The three men are charged with grand larceny in the second degree, which carries a maximum term of 5 to 15 years in prison. Mr. Riaz is also charged with money laundering in the second degree, scheming to defraud, falsifying business records and violating the worker’s compensation law.

The men were arraigned in Bronx Supreme Court on March 6.

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