July 18, 2025

Long Island Business News: LI contractor jailed for tax evasion and insurance fraud

David Winzelberg

July 18, 2025

The owner of a Long Island construction firm was sentenced to a year in prison for a tax evasion and insurance fraud scheme, according to a statement from the New York State Inspector General’s office.

Quirino Rotondo, owner of Metro Industrial Wrecking & Environmental Construction in Dix Hills, falsely classified high-risk demolition workers as low-risk employees performing clerical, carpentry, or painting work when applying for workers’ compensation insurance, according to the IG. In addition, Rotondo insured his workers under a network of unrelated companies, to shield his own business from liability while placing workers at risk.

The scheme was brought to light after an employee of the company was killed while removing a sign from a brewery. An investigation found that Rotondo’s employees, including the victim, had not been properly listed under the company’s insurance, which led to denied claims, delayed treatment, and postponed death benefits.

Besides the prison sentence, Rotondo was ordered to pay a total of more than $1.235 million in restitution, specifically $515,172.78 to Continental Insurance, $174,069.52 to the New York State Insurance Fund, and $546,562 to the IRS, according to the statement.

“Employers have a legal duty and a moral imperative to protect workers, especially when their jobs put their lives on the line,” New York State Inspector General Lucy Lang said in the statement. “Let the outcome of this tragedy serve as a stark reminder that New York does not tolerate employers who prioritize profit over human life. Thank you to our partners at IRS-CI, FBI, and the U.S. Attorney’s Office for their commitment to holding accountable those who fail to protect workers.”