Rockland County District Attorney Thomas P. Zugibe today announced that Stuart Chaitin (DOB 04/22/64) of 617 North Broadway, Nyack, New York has been charged with one count of Grand Larceny in the Second Degree, a class “C” Felony.

Between 2006 and 2010, Chaitin, who operated his business under the company name of ASCAPE Landscape and Construction Corp, billed the state and received money from the state as if he was paying a prevailing wage. It is alleged that the defendant failed to pay the legally required prevailing wages for more than 80 workers charged with maintaining the grounds of numerous publically-owned properties in Rockland and Westchester counties.

Chaitin is accused of falsely reporting to the state that he was paying his workers the prevailing wage, when he was, in fact, pocketing the money that was skimmed from the workers.

District Attorney Zugibe said, "Companies doing business with local municipalities and state agencies are legally bound to pay their employees the fair and prevailing wage. In this case, the defendant chose to enrich himself at the expense of his own workers. This arrest will serve notice to all contractors that Rockland County, New York State and the federal government will not tolerate wage fraud or any other cheating on public projects."

The defendant, via New York State’s competitive bidding process, was awarded outdoor maintenance contracts for several entities, including the New York State Department of Transportation, the New York State Department of Environmental Conservation, MTA Metro-North Railroad and the Peekskill Central School District.

As provided by the New York State Labor Law, and under the terms of these contracts, Chaitin was required to pay all of the employees in the public works jobs the prevailing wage levels set by the state and the supplemental benefit rate for overtime work.

Contractors and sub-contractors are required by law to submit certified payroll records to the state or its subdivision. During the public works jobs in which ASCAPE was hired, site visits by investigators revealed that workers were not being paid the prevailing wage.

Further investigation showed that wages paid by Chaitin were inconsistent with third party reports, statements from the workers and information derived from bank records. A state Department of Labor audit found that certified payrolls were falsified, leading to the underpayment of workers by over $137,807.77.

It is alleged that the defendant took a number of criminal steps to hide the underpayments from the State Labor Department.

The arrest of the defendant resulted from an investigation conducted by the Rockland County Special Investigations Unit, the New York State Department of Labor, the United States Department of Labor, OIG, Office of Labor Racketeering and Fraud Investigations and the New York State Department of Taxation and Finance.

Chaitin was arraigned in the Town of Clarkstown Justice Court by the Honorable Judge Ugell. He was released on a $300,000 bond and due to return to court on May 23, 2011.

If convicted, the defendant faces up to fifteen years in prison. 

It should be noted that a criminal complaint is merely an accusation and that a defendant is presumed innocent until proven guilty.

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