News Summary
Fredy Arellano, a construction superintendent, was sentenced to five years in prison for a felony wage-theft scheme that exploited workers at University of Maryland projects. Arellano, found guilty of underpaying workers, will serve 90 days in custody and undergo three years of probation. He must pay $63,157 in restitution to affected workers. This case highlights ongoing issues of wage theft in the construction industry, prompting the Attorney General’s Office to encourage impacted laborers to come forward.
Baltimore, Maryland – Fredy Arellano, a 45-year-old construction superintendent from York, Pennsylvania, has been found guilty of a felony wage-theft scheme that exploited workers at two major University of Maryland construction projects. Arellano was sentenced in Baltimore City Circuit Court to five years in prison, with only 90 days to be served in custody, while the remaining time is suspended. Following his incarceration, he will undergo three years of supervised probation. The court ordered him to pay full restitution of $63,157 prior to his guilty plea, which is part of the funds owed to the underpaid workers.
The investigation into Arellano’s actions revealed that he, along with an associate, paid workers far below the state-mandated prevailing wage on the Capital Region Cancer Center and the Field Hockey and Women’s Lacrosse Complex projects. Despite this reality, certified payroll records were submitted by Arellano that falsely depicted compliance with prevailing wage regulations, misleading state authorities. To facilitate this scheme, Arellano and the owner of Congratulations Construction Inc., where he was employed as a field superintendent, employed several deceptive methods including the use of phony payroll names.
Jose Walter Marquez Rivera, the owner of Congratulations Construction Inc., has already faced sentencing in a related case from the previous year, further highlighting the extent of wage theft within the company. The Attorney General’s Office has reached out to workers from Congratulations Construction Inc. who were involved in the aforementioned projects, inviting them to come forward regarding possible restitution they may be entitled to.
Details of the Wage Theft Scheme
The felony wage theft case against Arellano was rooted in the unlawful underpayment of laborers working on critical construction projects at the University of Maryland. The company in question, Congratulations Construction Inc., misrepresented payments made to workers, significantly affecting their earned wages and potentially stripping them of fair compensation for their labor.
Impact on Workers
Victims of this wage theft scheme, primarily laborers involved in the construction projects, were deprived of their legal wages. The Attorney General’s Office is urging any affected workers to reach out to them, emphasizing the importance of restitution and ensuring that individuals receive the money they are legally owed.
Background Context
Wage theft remains a serious issue within the construction industry, affecting countless laborers across the nation. Cases similar to Arellano’s have prompted investigations and legal actions aimed at enforcing labor laws and requiring compliance with wage standards in construction contracts. The efforts by the Attorney General’s Office to investigate these cases underline the commitment to uphold the rights of workers and ensure fair pay practices, a crucial element in maintaining ethical standards within the labor force.
The sentencing and restitution associated with Arellano’s case reflect a larger movement towards accountability in wage theft cases, reinforcing the necessity for contractors to adhere to prevailing wage regulations and protect the livelihoods of all workers involved in construction projects.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- CBS News: Former Baltimore Construction Manager Pleads Guilty to Wage Theft
- Fox Baltimore: Former Baltimore Construction Superintendent Sentenced for Stealing Wages
- Mocoshow: Pennsylvania Man Sentenced in Wage Theft Scheme
- Baltimore Sun: Wage Theft on UMD Projects
- Wikipedia: Wage Theft
- Google Search: Wage Theft in Construction Industry
Author: STAFF HERE BALTIMORE WRITER
BALTIMORE STAFF WRITER The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
