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SSC High Rise

A concerning record[1]

2018: Manslaughter conviction following worker’s death

  • SSC was convicted of manslaughter following the death of Juan Chonillo at 161 Maiden Lane, after Chonillo fell 29 stories to his death on the luxury condo project. SSC paid $842,000 as restitution following the conviction, as well as a $10,000 fine, the maximum corporate fine under New York law.[i] 

2018: Wage theft and payroll fraud findings

  • SSC was also found as part of the investigation into Chonillo’s death to owe its workers $517,000 in stolen wages, and ordered to pay $568,700 to the state Department of Labor.[ii]

  • In addition, SSC had committed millions of dollars of insurance fraud, hiding over $2 million in payroll in a scheme to obtain lower insurance premiums.[iii]

2012: tax fraud finding

  • In 2011, SSC principal Michael Mahoney was sued by the US Attorney for the Southern District for tax fraud by paying his employees illegally in cash off the books in order to limit his tax liabilities. Mahoney pled guilty in 2012, was placed on two years of probation and was ordered to pay more than $300,000 in restitution.[iv]

2011: forced to pay $1.6 million for race-based pay scale, wage theft.

  • SSC principal Mahoney was previously the principal of a number of other construction companies, including EMC Contracting. In 2009, then-Attorney General Andrew Cuomo sued EMC and other Mahoney-controlled firms for $4 million in back wages for forcing his employees to work as many as 70 hours a week with no overtime and, most shockingly, for instituting a three-tiered wage rate in which Irish workers were paid $25 an hour, African-Americans about $18 and Latino employees $15. In 2011, Mahoney and his companies were ordered to pay more than $1.6 million, plus interest, in this matter.[v]

[i] https://www1.nyc.gov/assets/doi/press-releases/2018/jul/pr_SSCHighrise_7132018.pdf

[ii] https://www1.nyc.gov/assets/doi/press-releases/2018/jul/pr_SSCHighrise_7132018.pdf

[iii] https://www1.nyc.gov/assets/doi/press-releases/2018/jul/pr_SSCHighrise_7132018.pdf

[iv] http://www.ml46.org/petition/

[v] http://www.ml46.org/petition/

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