A recent fraud case in Brooklyn is impacting the construction industry. Owners of TEMCO Construction NY, Inc., Dalip Singh and Gurnirmal Singh (unrelated), are facing serious allegations of conspiracy to commit wire fraud, brought forward in a complaint filed in federal court. The charges stem from accusations of the owners defrauding the New York City Department of Education by falsifying payroll records for public school repairs, as per the U.S. Attorney's Office for the Eastern District of New York.
The government's assertion is that TEMCO engaged in underpaying undocumented workers hired between 2017 and 2025 to perform various construction services at New York City public schools. Allegedly the defendants skirted, labor laws and cheated these workers out of their rightful compensation, while also duping the city by pocketing the difference. This was revealed by Joseph Nocella, Jr., U.S. Attorney for the Eastern District of New York, who stated in the press release, "the defendants lied to the DOE about using undocumented workers, and deprived those workers—who toiled long days, school holidays, and weekends—of proper compensation they had earned, so that they could line their pockets and bank accounts on New York City’s tab." This indictment has been a result of a collaboration between various agencies, including IRS-CI, HSI New York, and the SSA Office of the Inspector General.
TEMCO's owners are accused of submitting falsified certified payrolls to the Department of Education. The scheme, according to investigators, involved listing relatives who did not work on the job sites, omitting certain undocumented workers, and inflating wages for actual employees. Michael Alfonso, Acting Special Agent in Charge at HSI New York, emphasized that those who exploit unauthorized labor and undermine fair employment practices will be held accountable through coordinated law enforcement efforts.
The charges include allegations of wire fraud, which carry potential prison sentences of up to 20 years if the defendants are convicted. However, they are presumed innocent unless and until proven guilty. According to the complaint, Dalip Singh allegedly instructed employees to destroy evidence after becoming aware of a possible investigation.
This case is part of a broader initiative led by the Transnational Criminal Organizations (TCOs) Strike Force under the U.S. Attorney’s Office for the Eastern District of New York. The Strike Force focuses on dismantling criminal networks that undermine economic and labor systems. Assistant U.S. Attorney John Vagelatos is overseeing the prosecution, with a commitment to pursuing justice in response to these alleged business violations.
