In a case impacting the New York construction industry, Manhattan District Attorney Alvin L. Bragg, Jr. has announced an indictment against Schnellbacher-Sendon Group, LLC (SSG) and its affiliates. They are accused of defrauding the New York State Insurance Fund (NYSIF) of more than $9 million in workers’ compensation insurance premiums. According to a statement from the Manhattan D.A.'s Office, the group allegedly concealed roughly $40 million in cash payroll over a seven-year period, thereby misleading tax authorities and the workers’ compensation system.
The indictment alleges that Schnellbacher-Sendon Group, LLC (SSG), under the direction of owners Eric Schnellbacher and Valeriano Sendon, along with other company executives, operated a network of shell companies to manage an unreported cash payroll for over 100 employees between 2017 and 2024. During this period, the company reportedly represented to the New York State Insurance Fund (NYSIF) that it employed only 18 office workers. The case outlines a complex arrangement involving both SSG leadership and operators of a New Jersey-based check cashing business, Check Pros, which was allegedly used to facilitate the $40 million in unreported payroll, allowing the company to avoid detection and underreport employee compensation.
Court filings describe a structured process in which checks issued by SSG were routed through multiple intermediaries before being cashed, enabling the company to pay its workers off the books. Check Pros is alleged to have facilitated these transactions by cashing checks for SSG employees under false identities and documentation. When an unreported SSG worker filed a workers’ compensation claim, SSG and executive Montilla reportedly informed NYSIF that the claimant worked for a fictitious subcontractor, according to records cited by the Manhattan D.A.'s Office.
In June 2024, authorities executed search warrants at the offices of both SSG and Check Pros, recovering evidence including fraudulent identification documents and business records. These materials allegedly linked SSG to active construction projects and a significant number of workers, contradicting the company’s 2020 statement to the New York State Department of Labor that it had ceased construction operations in the state. The investigation was led by the Manhattan District Attorney’s Rackets Bureau in coordination with multiple enforcement agencies in New York and New Jersey.
The investigation involved coordination among multiple law enforcement agencies, including the New Jersey Attorney General’s Office Division of Criminal Justice and various local police departments, who contributed to uncovering the alleged fraudulent activities. The prosecution is being led by Senior Investigative Counsel Edward Burns and Assistant District Attorney Soraya N. Attia. The case highlights an example of inter-agency collaboration focused on enforcing labor laws and protecting workers across state jurisdictions.
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