Several individuals from all over Long Island, including Selden, St. James and Northport, have been implicated in multiple labor crime violations.
Suffolk County District Attorney Tim Sini (D) joined Suffolk police along with multiple New York State officials from the labor and insurance departments to announce their arrest.
Sini said, collectively, the charged crimes involve the theft of more than $250,000 in employees’ wages and benefits, nonpayment of more than $58,000 to the state Department of Labor for unemployment insurance fund contributions and nonpayment of more than $133,000 to the New York State Insurance Fund for workers’ compensation insurance premiums.
Paul Gilistro, 58, of Selden, and his company Goldstar Installation Services Inc. are each charged with a scheme to defraud in the first degree and willful failure to file a true certified payroll.
From 2016 to 2019, the defendants, formerly doing business as The Floor Worx of Long Island, allegedly misclassified 12 employees as independent contractors to avoid paying the statutory prevailing wage on public works jobs performed throughout Suffolk and Nassau counties. The DA said, during that time period, Gilistro allegedly regularly falsified the sworn certified payroll records he submitted to reflect the job classifications and wages the employees should have received.
“Here in Suffolk County, we will not tolerate the exploitation of workers or our taxpayers by greedy corporations and business owners,” Sini said. “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.”
Alan James, 70, of St. James, and his company APJ Restoration Inc. were each charged with fraudulent practices against the state insurance fund in violation of New York State workers’ compensation law.
An audit by the NYSIF revealed evidence that between August 2017 and August 2018 the defendants allegedly failed to report more than $450,000 in revenue to the NYSIF in order to avoid paying $68,613.69 in policy premiums that would have otherwise been assessed.
Richard Hall, 57, of Northport, and his company Regal Contracting Inc. were each charged with a scheme to defraud and willful failure to pay prevailing wages in an amount less than $25,000, a misdemeanor in violation of state DOL law. In addition, Hall and Triangle Enterprises of Long Island Inc. are each charged with fraudulent practices against the NYSIF in violation of New York State workers’ compensation law.
In the summer of 2018, Hall and Regal Contracting Inc. allegedly failed to pay $7,400 in benefits to the Laborers Local 66 Benefit Fund for multiple workers on five different projects. In December 2018, Regal canceled its state insurance fund policy. Hall then incorporated Triangle Enterprises of Long Island Inc. and allegedly fraudulently omitted his ownership of the company on its application for workers’ compensation insurance. Regal Contracting allegedly owes more than $28,000 in unpaid unemployment insurance fund contributions to the DOL and allegedly owes more than $48,000 in unpaid workers’ compensation premiums to the insurance fund, therefore making Hall ineligible to take out a new policy.