Brooklyn Construction Company Stiffs Workers, Forfeits $2.5M

November 16, 2017
Michael Riglietti will serve five years probation and give back $2.5 million

Michael Riglietti, secretary of MSR Electrical Construction Company, admitted underpaying his workers and was found guilty Wednesday of grand larceny and violating New York's prevailing wage requirements.

Instead of paying five employees the prevailing ware of between $51-$54 per hour, plus benefits of $42.45-$50.13 and overtime - Riglietti signed off on paychecks that were 75 percent less than what New York requires for public projects.

According to the Brooklyn District Attorney’s Office, MSR Electrical Construction received 15 public works contracts between December 2012 and December 2015, including work at 13 public schools, five MTA locations and the Creedmoor Psychiatric Center in Queens. After receiving contracts from the New York City School Construction Authority (NYCSCA), MTA and the state Office of General Services (OGS), the company was required to pay its workers $54 an hour, plus benefits.

"This Brooklyn company and its owner won public contracts but their criminal conduct makes them no better than common swindlers stealing wages from their workers,” NYC Department of Investigation Commissioner Mark Peters said in a statement. “These guilty pleas will mean this company and its owner are disqualified from doing school construction business.”

In a plea deal, Michael Riglietti will serve five years probation, give back $2.5 million - $700,000 of which will go to his employees - and be banned from all public works projects for five years.