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Post date: August 1 2012

A.G. Schneiderman Announces Arrest Of Construction Firm Owner For Underpaying Workers By Over $700k

Owner Did Not Pay His Workers The Prevailing Wage On A Government Project

NEW YORK- Attorney General Eric T. Schneiderman today announced the arrest and arraignment of Michael Ktistakis for failing to pay the required prevailing wages to his workers on a Dormitory Authority - State of New York construction project on Roosevelt Island.

Ktistakis, 31, owned and operated Dyna Contracting Inc., a Brooklyn construction company that performed brick facing and roofing work. The defendant and his company, as a subcontractor, performed brick and roofing work on a public project at Coler Memorial Hospital on Roosevelt Island and failed to pay at least 12 employees the wages they were owed, which amounted to over $700,000 in wages stolen from the workers. In order to cover up the illegal underpayments to his employees, the defendant submitted false Payroll Certification Forms to the Dormitory Authority - State of New York.

"Paying workers less than the law requires and then lying about it in official documents is not a mistake or a paperwork problem - it is criminal behavior. Mr. Ktistakis will held accountable for breaking the law and ripping off hardworking New Yorkers," saidAttorney General Schneiderman. "When contractors bid on a public project involving taxpayer dollars, they have to play by the rules. This construction firm owner broke the law and now he will face justice."

The defendant was arraigned in New York County Supreme Court, Honorable Bonnie G. Wittner pursuant to Indictment number 3055-2012. Under the indictment, Defendant is charged with one count of Grand Larceny in the Second Degree, a class "C" felony, one count of a violation of Labor Law Section 220(3)(d)(i)(4), a class "C" felony, nine counts of Falsifying Business Records in the First Degree, a class "E" felony, and nine counts of Offering a False Instrument for Filing in the First Degree, a class "E" felony.

Bail for Ktistakis was set at $5,000 bond or $2,500 cash.

New York's prevailing wage law seeks to ensure that government contractors pay wages that are comparable to the local norms for a given trade. The law requires an hourly rate for construction work performed for public agencies that is well above the state minimum wage of $7.25 per hour, along with benefits, and also higher wages for overtime, weekends, or work at night.

‪The Attorney General thanked the Dormitory Authority - State of New York and the Department of Labor's Bureau of Public Works along with Investigator Jacqueline Martinez.

The investigation was conducted by New York Attorney General Investigator Edward Ortiz under the supervision of Supervising Investigator Kenneth Morgan and Deputy Chief John McManus.

The case is being prosecuted by Assistant Attorney General Meredith McGowan and Labor Bureau Section Chief Felice Sontupe under the supervision of Bureau Chief Terri Gerstein and Executive Deputy Attorney General Janet Sabel and Executive Deputy Attorney General Nancy Hoppock.

The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty in a court of law.

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