MINEOLA, N.Y. – A Long Island asbestos removal and demolition company and its top executives have pleaded guilty to wage theft and unemployment insurance fraud stemming from work on school renovation projects in Merrick and Oceanside between 2019 and 2021, Nassau County District Attorney Anne T. Donnelly announced.
BJA Renovations Corp., based in North Babylon, and its manager Joseph Demasco, 67, admitted in court to failing to pay over $80,000 in required prevailing wages to workers and falsifying payroll records, resulting in an additional $63,036 shortfall to the state’s unemployment insurance fund.
Demasco faces up to three years in prison, though that could be reduced to six months and probation if he pays $25,000 in restitution by his May 14, 2025 sentencing. The company also faces five-year debarment from state public contracts.
The company’s president, Nicholas Barnett, previously pleaded guilty to misdemeanors and is expected to receive three years’ probation. Vice president Dana Petrizzo pleaded guilty to disorderly conduct and received a conditional discharge.
Key Details of the Case:
Projects Involved: Merrick Union Free School District (Birch, Chatterton, and Lakeside Schools) and Oceanside High School
Period: June 2019 to September 2021
Underpayment Example:
Claimed wage: $44/hour
Actual pay: $35/hour (often in cash)
Legal prevailing wage: Up to $74.70/hour for some positions
Fraudulent Filings: In 2020, reported only $52,904 in wages to the state for 15 employees, while actual payroll was over $185,000
“These very employees showed up day in and day out, putting their health and safety at risk, only to be denied the wages and benefits they were entitled to,” said DA Donnelly.
New York State Labor Commissioner Roberta Reardon praised the investigation, warning that the state has “zero tolerance” for payroll fraud or worker exploitation.
The case was led by Richard Balletta, Senior Investigative Counsel, with cooperation from the New York State Department of Labor.
