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Cyrus R. Vance, Jr.

District Attorney, New York County

For Immediate Release
March 27, 2012

DISTRICT ATTORNEY VANCE ANNOUNCES GUILTY PLEA FOR PREVAILING WAGE VIOLATIONS

Manhattan District Attorney Cyrus R. Vance, Jr., today announced a plea agreement with MASCON RESTORATION, INC. (“MASCON”) in which MASCON will plead guilty to the felony charge of Offering a False Instrument for Filing relating to its failure to pay prevailing wages to employees, and its falsification of payroll records for work performed at New York City construction sites. MASCON has also been barred from submitting a bid on, or from being awarded, any public work contract, or subcontract, within the State, any municipal corporation or public body for a period of five years, and has been ordered to pay by the date of sentence approximately $1.5 million dollars in fines and restitution.

“This company and its principals exploited hardworking, honest employees,” District Attorney Vance said.  “Failure to comply with wage laws and agreements hurts workers, taxpayers, and the legitimate businesses that follow the law.”

According to the plea agreement, MASCON provided construction services as a subcontractor under various New York City Department of Housing Preservation and Development (“HPD”) contracts between 2005 and 2009.  Pursuant to those contracts, MASCON completed general construction work in connection with the rehabilitation of buildings owned by the City of New York located at 484 Convent Avenue, 1801 Seventh Avenue, 525 West 134th Street, and 212 West 108th Street. In pleading guilty, MASCON admitted that it knowingly failed to pay prevailing wages to its employees and filed false certified payroll reports during the execution of the HPD contracts at those four properties.

MASCON has paid a total of $1,178,323 to the New York City’s Comptroller Office for the wage violations. Of that amount, $107,120 is payment to the City’s general fund as a civil penalty. MASCON will also pay $243,880 to the New York State Department of Labor relating to its underpayment of unemployment insurance and $75,000 to the District Attorney’s Office in lieu of fine, forfeiture, for cost of investigation and prosecution.

Assistant District Attorney and Labor Investigations and Construction Fraud Unit Chief Brenda Fischer conducted the investigation into this case.  District Attorney Vance also thanked the New York City Comptroller’s Bureau of Labor Law and the New York State Department of Labor Office of Special Investigations for their assistance and cooperation.

 

MASCON RESTORATION, INC.

Queens, NY

Convicted:

  • Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count