A significant indictment in a wage theft case has been announced by the Manhattan District Attorney Alvin L. Bragg, Jr., and MTA Inspector General Daniel G. Cort. The case involves HVAC contractor ROCCO MECHANICAL, INC. and two executives, President Steven Restrepo and Treasurer Rocio Restrepo. They are accused of stealing roughly $339,000 from their employees by enforcing cash kickbacks, which averaged around 22% of each paycheck, between September 2020 and December 2024.
In a statement obtained by the Manhattan District Attorney's Office, outlined the gravity of the situation, "The subway system is the backbone of New York City and the workers and contractors that keep it running deserve every dollar they earn." Further detailing the alleged deceit, Bragg revealed, "nstead, we allege, Rocco Mechanical and its executives stole hundreds of hours’ worth of lawfully earned compensation from its employees by issuing paychecks reflecting the mandatory prevailing wage, but then brazenly requiring cash kickbacks from their own workers." Workers who failed to comply with the kickback demands allegedly faced reduced hours or the threat of losing work entirely.
The case sheds light on the exploitation within public contracts, specifically those overseen by the Metropolitan Transportation Authority. According to the authorities, Rocco Mechanical fabricated a parallel set of payroll records to mask their illicit activities. While the official reports indicated employees were receiving a full prevailing wage, an internal system recorded much lower payments with demands for the difference in cash kickbacks. The Restrepos now face charges including Grand Larceny in the Second Degree and Failure to Pay Wages in Accordance with the Labor Law.
According to the Manhattan District Attorney's Office, support from the New York City Comptroller's Office was pivotal in the investigation, as stated by MTA Inspector General Cort, "MTA contractors have a legal and moral obligation to pay their workers the prevailing wage." Cort praised the employees who courageously reported the misconduct, "The defendants in this case allegedly stole MTA funds from their workers' pockets and breached the public’s trust." Assistant D.A. Rachana Pathak, head of the Worker Protection Unit, is leading the prosecution with support from several colleagues and the MTA Inspector General’s Office.
The Manhattan DA's office is reaching out to others who may have been victimized. Bragg urged any individuals affected by wage theft to contact his office's Worker Protection Unit. Workers' rights remain a focal point for law enforcement as they continue to hold accountable employers who undermine labor laws and exploit those who maintain essential services like the New York City subway system.
