News Summary
Dalip Singh and Gurnirmal Singh, owners of TEMCO Construction Company, have been charged with conspiracy to commit wire fraud. They allegedly defrauded the New York City Department of Education out of over $13 million by submitting falsified payroll records, underpaying workers and hiring undocumented labor. Federal investigations revealed that they misled authorities and laundered funds through their fraudulent operations. If convicted, both defendants face up to 20 years in prison. This case highlights ongoing concerns regarding labor practices within the construction industry.
New York City — Two owners of TEMCO Construction Company have been charged with conspiracy to commit wire fraud, following allegations they defrauded the New York City Department of Education (DOE) out of more than $13 million through a fraudulent scheme involving public school repairs. Dalip Singh, 67, from East Meadow, and Gurnirmal Singh, 64, of Westbury, face serious legal repercussions if convicted.
The indictment, released by federal authorities, claims the Singhs submitted falsified payroll records for workers involved in repairs at New York City public schools between December 2017 and April 2025. These payroll records allegedly indicated that workers were being paid the prevailing wages required by New York State labor law, when, in reality, many were underpaid or compensated in cash—far below those wages.
In addition to underpayment, investigations suggest that the defendants hired undocumented workers without proper authorization to carry out construction services. Operations for TEMCO began in Jamaica, Queens, before relocating to Hicksville in April. Evidence indicates that the Singhs pocketed the difference between the actual wages paid and the required prevailing wages.
U.S. Attorney for the Eastern District, Joseph Nocella Jr., described the actions of the defendants as not only an exploitation of taxpayers but also as a serious breach of trust towards vulnerable undocumented workers. Further allegations state that the Singhs directed their employees to mislead investigators regarding their wages and advised them to destroy evidence when they sensed an investigation was underway.
Moreover, Dalip Singh is accused of instructing employees to conceal records from law enforcement. The case has revealed a web of deceit, with special attention paid by the IRS Criminal Investigations New York Special Agent in Charge Harry Clavis, who stated that the defendants laundered more than $13 million through this fraudulent operation.
If found guilty of wire fraud, both Dalip and Gurnirmal Singh could face significant prison time, with each potentially receiving a sentence of up to 20 years. The case represents part of a larger initiative by the Transnational Criminal Organizations (TCOs) Strike Force, aimed at dismantling criminal networks that undermine economic and labor systems.
Various agencies, including the IRS-Criminal Investigations, Homeland Security Investigations (HSI) New York, and the Social Security Administration Office of the Inspector General, worked collaboratively on the investigation leading to these charges. Assistant U.S. Attorney John Vagelatos is overseeing the prosecution of this case.
The defendants are currently presumed innocent until proven guilty in a court of law. The outcome of this case may have significant implications not only for the individuals involved but also for the integrity of the public contracting system, as well as the protections afforded to workers in New York City.
This situation highlights ongoing concerns regarding labor practices within the construction industry and raises questions about accountability among contractors working on public projects. As investigations continue, further developments in this case are expected, shedding light on the extent of the alleged fraud and its consequences for the broader community.
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- Hoodline: Brooklyn Construction Company Owners Charged
- Wikipedia: Wire Fraud
- Cooperator News: Industry Group Gathers in BK to Protest Fraud
- Google Search: New York construction fraud
- Courier Press: Evansville Construction Company Owners Face Fraud Charges
- Encyclopedia Britannica: Fraud
- New York Times: Vandelay Industries Fraud Sentencing
- Google News: Construction Industry Fraud
- Insurance Insider: Tradesman Ionian Re-files Joint RICO Complaint
- Google Scholar: Construction Fraud New York
