Long Island Employer Sentenced in Fraud Scheme After Worker Kille...

Business Owner Sentenced to Prison and Ordered to Pay over $1.2 Million in Restitution for Tax Liabilities and Misclassifying High-Risk Workers

New York State Inspector General Lucy Lang announced today that Quirino Rotondo, owner of Metro Industrial Wrecking & Environmental Construction in Dix Hills, NY, has been sentenced to prison and ordered to pay restitution for his role in a large-scale insurance fraud and tax evasion scheme that endangered workers and exploited the state's workers' compensation system.

Rotondo was sentenced to 12 months in prison and two years of supervised release, and ordered to pay $1,235,804.30 in restitution following his previously entered plea of guilty to eight counts of felony tax evasion. This comes following a joint investigation by the Offices of the Inspector General (OIG), Internal Revenue Service Criminal Investigation (IRS-CI), and Federal Bureau of Investigation (FBI). Specifically, Rotondo was ordered to pay $174,069.52 to the New York State Insurance Fund, $546,562 to the IRS, and $515,172.78 to Continental Insurance.

This joint investigation revealed that in order to unlawfully obtain lower premiums, Rotondo falsely classified high-risk demolition workers as low-risk employees performing clerical, carpentry, or painting work when applying for workers' compensation insurance. He also insured his workers under a network of unrelated companies, effectively shielding his own business from liability while placing workers at risk.

The scheme came to light due in part to a tragic workplace incident during which an employee was killed while removing a sign from a brewery. The investigation subsequently uncovered that Rotondo's employees, including the victim, had not been properly listed under the company's insurance - leading to denied claims, delayed treatment, and postponed death benefits.

"Employers have a legal duty and a moral imperative to protect workers, especially when their jobs put their lives on the line," said New York State Inspector General Lucy Lang. "Let the outcome of this tragedy serve as a stark reminder that New York does not tolerate employers who prioritize profit over human life. Thank you to our partners at IRS-CI, FBI, and the U.S. Attorney's Office for their commitment to holding accountable those who fail to protect workers."

Inspector General Lang thanked the members of her staff who worked on the investigation, including Downstate Deputy Chief of Investigations Dave Regazzi and Senior Investigative Counsel Jaclyn Belson, under the supervision of Long Island Deputy Inspector General Jean Carsey. IG Lang also expressed her appreciation to OIG's law enforcement partners at IRS-CI, FBI, and the U.S. Attorney's Office for the Eastern District of New York for their dedication in bringing this case to justice.

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The Offices of the New York State Inspector General: Fostering confidence in New York State government by promoting integrity and transparency through oversight of covered agencies, their employees, and those doing business with the State.

To report wrongdoing, call 1-800-DO-RIGHT (367-4448) or visit ig.ny.gov.

Follow the office's work on social media at @NewYorkStateIG.