New York, NY – Attorney General Eric T. Schneiderman has announced an eight-count indictment of Vickram Mangru, his wife Gayatri Mangru, and son Ravi Mangru, of Valley Stream, NY, for allegedly failing to pay proper prevailing wages to workers and falsifying business records related to a publicly-funded New York City construction project. Between 2012 and 2015, the New York City Department of Education Division of School Facilities contracted Vick Construction and AVM Construction Corp. for a development and repair project at several Bronx public schools. Vickram Mangru owned and operated Vick Construction between 2012 and 2014 and Gayatri Mangru and Ravi Mangru owned AVM Construction Corp. between 2014 and 2015. However, Vickram Mangru ran the day-to-day operations of both companies.
As alleged in the indictment, Vickram Mangru created AVM Construction Corp. as an extension of Vick Construction—which had previously been debarred and banned for a five-year period from performing public work projects by the New York City Comptroller’s Office for failing to pay proper prevailing wages to workers. As the indictment alleges, an investigation conducted by the Attorney General uncovered that the pervasive non-payment of prevailing wages and falsification of business records continued uninterrupted between both companies, resulting in the combined underpayment of $281,630.09 to several former employees of both companies.
“The law is clear: employers must pay their staff the prevailing wage on any publicly-funded project,” said Attorney General Schneiderman. “These defendants allegedly underpaid their employees for years — and tried to evade the law by closing down one sham business and opening up another. We have zero tolerance for this sort of behavior, and will continue to ensure all New Yorkers are paid a fair wage for a fair day’s work.”