Laborers classified as florists in scheme to avoid $1M in comp premiums
A company that secured more than 100 contracts with New York City allegedly misclassified the type of work laborers were doing as part of a scheme to evade more than $1 million in workers compensation premiums, the Manhattan District Attorney’s office announced.
Dragonetti Bros. Landscaping, Nursery & Florist and D.B. Demolition, as well as owners Nicholas Dragonetti and Vito Dragonetti, were indicted on charges including insurance fraud and fraudulent practices under New York workers compensation law.
The Manhattan district attorney’s office said Dragonetti Bros. Landscaping, Nursery & Florist since 1998 has secured more than 100 contracts with New York to provide landscaping and maintenance in city parks, as well as sidewalk reconstruction and pedestrian crosswalk ramp construction.
“According to court documents and statements made on the record in court, between 2017 and 2019, (the company) intentionally misclassified numerous employees on its applications to the New York State Insurance Fund for workers compensation insurance in order to avoid paying the required premiums,” the district attorney’s office said. The company “bid on and won contracts for excavation, sidewalk reconstruction and pedestrian ramp replacement for residential blocks throughout the city totaling millions of dollars, and falsely classified 217 laborers, foremen and heavy-equipment operators as florists, office workers or sales representatives.”
During the same period, D.B. Demo allegedly misclassified several commercial drivers as office workers and avoided about $81,000 in premiums, according to the district attorney’s office.
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