Bragg Announces Indictment of MTA Contractor for Wage Theft

A contractor on the Second Ave. subway was allegedly shaking down workers, illegally demanding a 22 percent kickback from their wages.

A family-owned HVAC business, Rocco Mechanical Inc. (“ROCCO”), of Maspeth, Queens was the subject of the indictment filed by Manhattan district attorney Alvin Bragg, alleging that its president, Steven Restrepo and its treasurer Rocio Restepro stole approximately $339,000 from 13 employees from September 2020 through December 2024.

As alleged, the defendants systematically violated prevailing wage requirements by demanding their own employees return cash kickbacks worth an average of 22 percent of each paycheck. The defendants are charged in a New York State Supreme Court indictment with Grand Larceny in the Second Degree and Failure to Pay Wages in Accordance with the Labor Law, as well as 32 counts of Offering a False Instrument for Filing in the First Degree.

“The subway system is the backbone of New York City, and the workers and contractors that keep it running deserve every dollar they earn,” said DA Bragg. “Instead, we allege, Rocco Mechanical and its executives stole hundreds of hours’ worth of lawfully earned compensation from its employees by issuing paychecks reflecting the mandatory prevailing wage, but then brazenly requiring cash kickbacks from their own workers.”

The alleged scheme utilized two parallel payroll systems. ROCCO submitted sworn affidavits and certified payroll reports (“CPRs”) falsely certifying that employees were paid the full prevailing wage. The CPRs classified workers as steamfitters, sheet metal workers, or plumbing mechanics and listed wage and benefit rates consistent with the Comptroller’s schedules.

Relying on these false certifications, the MTA issued payments for work performed across nine MTA contracts citywide, including a project at the 14th Street-Sixth Avenue station in Manhattan.

ROCCO simultaneously maintained an internal payroll system reflecting substantially lower wages, the indictment alleges. After issuing paychecks that matched the CPR amounts, ROCCO allegedly required employees to return a portion of those wages. In total, the kickbacks amounted to approximately $339,000.

Workers who questioned the practice or failed to pay in full were allegedly punished through reduced hours or threats that they would lose work.

Bragg thanked the MTA Inspector General’s Office and the New York City Comptroller’s Office for their assistance with the investigation.