Covering His Tracks
“Mr. Fridman not only stole state dollars from his own workers, but he demanded kickbacks and laundered money to cover his tracks,” Schneiderman said. “My office will continue to take action, including filing criminal charges, against employers who violate New York’s labor laws, steal taxpayer dollars, and violate the public trust.”
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Wikimedia Commons |
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Millennium Commercial Corp. was contracted to build JetBlue's Terminal 5 at JFK Airport in 2010.
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Fridman, 60, owned and operated Millennium Commercial Corp., a Brooklyn-based company that performed tile work, authorities said.
The company performed tile restoration work as a subcontractor on the renovation of the TWA Flight Center at John F. Kennedy Airport in 2009 and 2010.
Fridman could not be reached for comment.
Pay Reports and Kickbacks
Under the Port Authority contract for the project and the Labor Law, Fridman was required to pay his employees more than $50 per hour for laborers and mason tenders and more than $70 per hour for tile setters. According to court records, Fridman knew that he was required to pay prevailing wages, but still paid his workers only $10 to $30 per hour.
To avoid detection, Fridman filed false certified payroll reports that showed he had paid the appropriate wages and issued paychecks in the proper amounts, authorities said.
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Leonid Fridman stole state dollars from his own workers, then "demanded kickbacks and laundered money to cover his tracks," said Attorney General Eric T. Schneiderman.
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But he then "made his workers cash the checks at his bank and kick back, or return, a majority of the cash to him" and "hid over $100,000 of the money he stole by moving it into the account of a Florida corporation he controlled, Green Investments Inc.," the attorney general said.
Potential Prison Terms
Fridman faces one count each of second-degree grand larceny and second-degree money laundering. Both are class "C" felonies punishable by up to five to 15 years behind bars. He also faces a class "D" felony, violation of labor law, and 52 counts each of first-degree falsification of business records and first-degree offering a false instrument for filing, class "E" felonies.
New York's prevailing wage law seeks to ensure that government contractors pay wages that are comparable to the local norms for a given trade. The law requires an hourly rate for construction work performed for public agencies that is well above the state minimum wage of $7.25 per hour, along with benefits, as well as higher wages for overtime, weekends or work at night.
