In 2007, the Fusella Group (“Fusella”) received a sub-contract to remove dirt and debris from the WTC reconstruction site in the East Bathtub. The contract required Fusella to pay the prevailing wages and benefit fund contributions on behalf of its employees and as required by their agreement with Local 282 of the Teamsters. Fusella failed to make these payments but submitted false certified payrolls verifying that it had done so. They also failed to pay social security and federal and state income tax contributions for employees by falsely classifying truck driver-employees as independent contractors and by failing to report salary payments made to their office workers and mechanics.
On December 22, 2011, a thirty-one count indictment was unsealed in federal court in Brooklyn, charging the owners of Fusella, Gerardo and Vincent Fusella, with crimes of embezzlement, tax evasion and mail fraud. They are charged with failing to make more than $150,000 in employee social security contributions between 2007 and 2009 and for embezzling more than $1,000,000 in union benefit fund payments.
Read the full U.S. DOJ Press Release.