Case details

Employees: Public works contractor committed wage fraud

SUMMARY

$648929

Amount

Settlement

Result type

Not present

Ruling
KEYWORDS
FACTS
Between 2009 and 2012, plaintiffs Genaro Banos, Jose Banos, Candido Diaz, Jose Duran, Edgar Martinez, Rafael Martinez, Isidro Ramirez, Jesus Rubio, Rafael Rubio and Jose Salvador were employees of Reza Mohammedi, who owned and operated Southland Construction. Mohammedi acted as a public works contractor in Southern California and undertook public works projects on behalf of numerous cities, school districts and other governmental agencies in Southern California. However, Mohammedi’s employees claimed that while performing the work on public projects, Mohammedi engaged in systematic wage fraud. Criminal prosecution against Mohammedi was successful, and Mohammedi pleaded guilty and was remanded into custody to serve a two-year state prison sentence. Mohammedi’s employees, Genaro Banos, Jose Banos, Candido Diaz, Jose Duran, Edgar Martinez, Rafael Martinez, Isidro Ramirez, Jesus Rubio, Rafael Rubio and Jose Salvador, sued Mohammedi, who was doing business as Southland Construction. The employees also sued American Contractors Indemnity Co. and Suretec Insurance Co., which issued public works payment bonds that guaranteed wages on the projects. Plaintiffs’ counsel contended that Mohammedi used threats and intimidation to exploit his workers and that Mohammedi paid a fraction of the required prevailing wage while demanding a code of silence among the employees. Counsel also contended that Mohammedi failed to pay for all hours worked, failed to pay the required wage, required employees pay him kickbacks, and engaged in systematic fraud to cover up the wrongful conduct. Additionally, plaintiffs’ counsel contended that Mohammedi submitted false certified payroll records to the awarding agencies and that when he was subjected to an investigation, Mohammedi demanded his workers lie to inspectors and investigators under the threat of losing their job., Genaro Banos, Jose Banos, Candido Diaz, Jose Duran, Edgar Martinez, Rafael Martinez, Isidro Ramirez, Jesus Rubio, Rafael Rubio and Jose Salvador sought recovery for the unpaid prevailing wages and overtime. They also sought recovery in the form of penalties and interest.
COURT
Superior Court of Los Angeles County, Los Angeles, CA

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