A Long Island business owner has been sentenced to prison for orchestrating a fraud scheme that placed workers at risk and surfaced only after one of them was killed on the job.
Quirino Rotondo, owner of Metro Industrial Wrecking & Environmental Construction in Dix Hills, was sentenced to 12 months in prison and two years of supervised release after pleading guilty to eight felony counts of tax evasion. He was also ordered to pay over $1.2 million in restitution.
New York State Inspector General Lucy Lang announced the sentence Thursday following a joint investigation by the Inspector General’s Office, the IRS Criminal Investigation Division, and the FBI. Rotondo must repay $515,172.78 to Continental Insurance, $174,069.52 to the New York State Insurance Fund, and $546,562 to the IRS.
Investigators found that Rotondo misclassified high-risk demolition workers as clerical, carpentry, or painting staff to obtain lower insurance premiums. He also shielded his business from liability by insuring employees under unrelated companies.
The fraud scheme was uncovered after a worker was killed while removing a sign from a brewery. The victim and other employees were not properly listed under the company’s insurance, which resulted in denied claims and delayed death benefits.
“Employers have a legal duty and a moral imperative to protect workers, especially when their jobs put their lives on the line,” Lang said. “Let the outcome of this tragedy serve as a stark reminder that New York does not tolerate employers who prioritize profit over human life.”
Lang thanked her investigative team and law enforcement partners for their role in the case, including the U.S. Attorney’s Office for the Eastern District of New York.
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