High Volt Electric Corp. and its president, Mark Astudillo, pleaded guilty Thursday in New York State Supreme Court to what prosecutors describe as a two-year wage theft scheme that pulled at least $325,000 from the paychecks of workers on New York City school construction projects. Investigators say the company falsified payroll records while working as a subcontractor for the New York City School Construction Authority, shortchanging at least seven employees. The case adds another chapter to a run of wage theft prosecutions that city construction fraud investigators have been chasing in recent years.
What prosecutors say
According to the Manhattan District Attorney’s office, High Volt and Astudillo admitted to one count of offering a false instrument for filing in the first degree and one count of grand larceny in the second degree. Prosecutors say the charges stem from certified payrolls and related paperwork that were falsified to hide underpayments to workers. In a statement shared by Alvin L. Bragg, Jr., the office said at least seven workers were shorted and the scheme totaled roughly $325,000.
Who is High Volt
High Volt has appeared on city and municipal job rosters for years and lists Astudillo as its president in industry directories. Business records place the company at an address in East Elmhurst. Listings in The Blue Book describe the firm as a subcontractor qualified to work on public projects.
How the case was investigated
Prosecutors say the indictment and plea resulted from a coordinated, multi-agency investigation led by the Manhattan District Attorney’s Construction Fraud Task Force, working with the New York City Department of Investigation and the School Construction Authority’s Office of the Inspector General. That task force structure, which pulls city and state investigators into joint cases, has been used to pursue construction fraud and recover stolen wages on public jobs since 2018. For more on oversight of SCA projects, see the SCA Office of Inspector General.
Penalties, restitution and debarment
As part of the pleas, prosecutors said High Volt and Astudillo were debarred from New York City contracts for five years and must pay roughly $325,000 to resolve wage theft claims tied to the scheme. The debarment blocks the company and its president from bidding on School Construction Authority and other city contracts during that period, according to a statement from Alvin L. Bragg, Jr..
Legal implications
The guilty pleas resolve felony charges. Offering a false instrument for filing in the first degree is classified as a class E felony under N.Y. Penal Law §175.35, and grand larceny in the second degree is a class C felony under N.Y. Penal Law §155.40. A court will decide the sentences and any additional civil penalties after prosecutors submit the final plea paperwork and restitution plan.
Why it matters for city construction
The construction fraud task force has repeatedly targeted contractors that falsify records and short workers on public projects, bringing in guilty pleas, restitution and lengthy debarments that are meant to protect both workers and taxpayers. Prosecutors say recovering stolen wages and keeping repeat offenders away from public contracts are central goals of those efforts, as outlined by the Manhattan District Attorney’s Office.
Next up is sentencing, along with the process for getting restitution into the hands of affected workers. Individuals who believe they were underpaid on public construction jobs, or who have information about wage fraud on city contracts, can contact the School Construction Authority Office of Inspector General or the Manhattan DA’s Construction Fraud Task Force.
