Scheme Unveiled When Death of Worker Was Killed on the Job
The owner of a Dix Hills-based construction company 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.
Quirino Rotondo, the owner of Metro Industrial Wrecking & Environmental Construction, was sentenced to 12 months in prison and two years of supervised release, and ordered to pay $1,235,804.30 in restitutionafter previously pleading 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.”
“A fatal tragedy revealed Quirino Rotondo’s clandestine scheme manipulating workers compensation programs designed to protect his employees,” said FBI New York Assistant Director in Charge Christopher G. Raia. “The defendant’s actions grossly jeopardized those he had an ethical duty to protect. The FBI remains determined to investigate any employer who compromises the welfare of others for a personal profit.”