Attorney General James and Comptroller Stringer Announce Guilty Pleas Of Previously Debarred Construction Contractor For Continuing Prevailing Wage Violations

NEW YORK – Attorney General Letitia James and Comptroller Scott M. Stringer announced the guilty pleas of Vickram Mangru, his wife Gayatri Mangru, and AVM Construction Corp., of Valley Stream, NY, for failing to pay prevailing wages to workers and falsifying business records related to construction projects on New York City public schools from December 2012 through February 2015.

The Comptroller had debarred Vickram Mangru in December 2013 for prevailing wage violations on public school projects and neither he nor any companies related to him were allowed to work on any new City or State public work contracts for five years.  Vickram Mangru continued to underpay workers after his debarment, then incorporated AVM Construction Corp. with his wife, Gayatri Mangru in January 2014. Although Gayatri Mangru was listed as the owner of AVM, Vickram Mangru managed its day to day operations as it continued to perform construction work at New York City public schools and continued to underpay prevailing wages to several employees between April 13, 2014 and February 14, 2015.  The defendants were charged with failing to pay three workers their required prevailing and overtime wages, as well as supplemental benefits from December 2012 through February 2015. The defendants unlawfully falsified payroll records to conceal their crimes, and thereby stole more than $280,000 from three workers. In October 2017, a Bronx County Grand Jury returned an indictment charging the defendants with two counts of Failure to Pay Prevailing Wages and Benefits and two counts of Falsifying Business Records in the First Degree.

“Intentionally underpaying workers is both highly illegal and immoral,” said Attorney General Letitia James. “Not only did the defendants take advantage of innocent workers trying to earn a living, they also took advantage of New York City by falsifying records to the Department of Education. This office will never hesitate to investigate any employer who tries to cheat our workers or our government.”

“An honest days work deserves an honest days pay and when employers cheat workers from the wages they rightfully earned, regardless of their status,  it’s labor abuse at its worst,” said New York City Comptroller Scott Stringer. “Despite being debarred, this unscrupulous contractor attempted to use his wife’s name to open a company and take advantage of immigrant workers by withholding their prevailing wages yet again — now he is facing the consequences of his actions. I would like to thank the Attorney General for working side by side with my office to prosecute this contractor and bring justice to the workers who are owed their fair share.”

Defendants Vickram Mangru and AVM Construction Corp. both pleaded guilty in Bronx County Supreme Court before the Honorable Barry E. Warhit, to felony Failure to Pay Prevailing Wages and Benefits counts under the indictment. Defendant Gayatri Mangru pleaded guilty to one count of misdemeanor Failure to Pay Prevailing Wages and Benefits in the indictment for her involvement in the crimes. As a condition of their pleas, the Defendants will pay restitution to the three workers in the amount of $80,000 before their sentencing. Defendant Vickram Mangru will be sentenced to 30 days of incarceration and will subsequently serve three years probation; Defendants AVM Construction Corp. and Gayatri Mangru will be sentenced to conditional discharges and additional fines. A judgment order of restitution will be entered for the remaining amount owed.

State law requires that on certain construction projects designated as “public works,” workers must be paid a pre-determined industry minimum wage per hour, plus a benefit rate, collectively known as a “prevailing wage rate.” Instead of paying this prevailing wage rate, the investigation revealed that Vickram Mangru allegedly paid his workers between $120 and $160/day for 40-50 hours worked per week – an amount far less than what his employees were owed under the prevailing wage rate. To cover up the crime, Vickram Mangru falsified Certified Payroll Records and Reports submitted to the New York City Department of Education by claiming that he did pay workers the proper prevailing wage rate.

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