Manhattan District Attorney Alvin Bragg has announced the indictment of Benedetto Cupo, a 66-year-old construction executive accused of orchestrating multiple fraud schemes, including wage theft and insurance fraud. The 30-count indictment alleges that Cupo diverted more than $5.7 million, impacting workers and public funds.
According to charges brought following an interagency investigation led by the D.A.’s Rackets Bureau, Cupo fraudulently obtained $1.6 million in COVID-relief loans despite his companies not paying payroll taxes. Prosecutors allege that employees lost $3 million in wages, with Cupo keeping the taxes that were withheld, leaving workers liable during tax season. The indictment also claims Cupo misrepresented employee numbers to the New York State Insurance Fund, significantly reducing his workers’ compensation premiums while leaving more than a hundred employees without proper coverage.
"As alleged, Benedetto Cupo orchestrated numerous frauds over the course of years, stealing millions from hard-working New Yorkers’ wages and the public funds they rely on when hurt on the job," DA Bragg said in a press release. Multiple local and federal agencies, including the NYPD, NYSIF, and the U.S. Small Business Administration (SBA), collaborated to investigate the scheme.
The case highlighted the work of prosecutors and investigators, including Assistant District Attorney James Hanley and Rackets Bureau officials Christopher Beard and Christopher Conroy. They collaborated with the New York State Insurance Fund, whose Executive Director Gaurav Vasisht stated, “Defrauding the system hurts all businesses and jeopardizes the health and welfare of those who must rely upon it,” according to the DA's office. The scheme affected hundreds of workers, who were left underpaid as a result of the alleged fraud.
Cupo faces prosecution on charges of fraud affecting public funds and workers. Business Integrity Commission (BIC) Commissioner Elizabeth Crotty stated that corruption depriving employees of earned compensation will not be tolerated and highlighted the importance of addressing fraud in the construction industry. The indictment will move forward as the case proceeds in court.
