America
Indian-American contractor indicted for fraud
New York, Aug 11
An Indian-American former
president of a construction company has been indicted in a $1.9 million
union fraud scheme in which his workers were under paid and for making
false statements in documents.
Yashvant C. Patel, while serving
as president of My Baps Construction Corp -- a Southwest Side
construction company - paid less than union scale wages to his workers
to defraud the benefit funds of the employees' labour union by reducing
the employer contribution, a report in The Voice Online said on Tuesday.
Patel,
59, was arrested last week and has been charged with four counts each
of mail fraud and making false statements in company documents.
"Patel
falsely reported that My Baps and a sister company, Vijay Construction
Corp, owed approximately $600,000 less to the benefit funds of the
Construction and General Labourers' District Council of Chicago and
Vicinity," the indictment stated.
The indictment also stated that
the companies owed approximately $1.3 million less to the companies'
employees than what was required by collective-bargaining agreements
with the union. Patel under-reported about 33,000 hours of work
performed by his employees, the report added.
Each count of mail
fraud carries a maximum sentence of 20 years in prison, a $250,000 fine
and mandatory restitution while each count of making false statements in
documents carries a maximum sentence of five years in prison, a
$250,000 fine, and mandatory restitution, the report said.
From
January 2009 through October 2010, Patel controlled the daily operations
and finances of My Baps and Vijay, both of which operated as concrete
and asphalt contractors.