Demolition Company Owners Heading to Prison

A father and son who operated a demolition company that did work for New York City’s housing agency were sentenced in Manhattan Federal Court to six years and four years in prison, respectively, for paying employees less than required under the prevailing-wage law, tampering with witnesses and using other people’s identities to further the scheme.

Jover Naranjo, 37, of Queens, owner and president of Enviro & Demo Masters, and his father, Luperio Naranjo Sr., 65, also of Queens, a foreman for the company, were also sentenced to three years’ supervised release by U.S. District Judge Jed S. Rakoff. Restitution and forfeiture will be determined at a later date.

The U.S. Department of Labor had taken legal action to recover more than $829,000 in back wages for 32 workers employed as demolition laborers.

An investigation by the Labor Department’s Wage and Hour Division District Office in New York City revealed that the companies and their officials had violated wage and benefit requirements of the Davis-Bacon Act and the Contract Work Hours and Safety Standards Act on two New York City public housing construction projects that were partially funded by the American Recovery and Reinvestment Act of 2009. The investigation found that the companies had failed to pay prevailing wage rates and fringe benefits to some employees, failed to pay employees time and one-half their basic rate of pay for hours worked over 40 in a week, and submitted inaccurate certified payroll and time records.

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