Monday, April 28, 2025
An asbestos removal and demolition company and its executives have pleaded guilty to failing to pay more than $80,000 in prevailing wages to employees who worked on public school projects in Merrick and Oceanside between 2019 and 2021, Nassau County District Attorney Anne Donnelly announced.
BJA Renovations Corp., based in North Babylon, and company manager Joseph Demasco, 67, pleaded guilty before Judge Christopher Quinn to felony charges of failing to pay the prevailing wage. The company also admitted to falsifying business records related to its payroll and unemployment insurance contributions.
As part of the plea agreement, Demasco and BJA Renovations must jointly pay $81,592 in restitution to affected employees and an additional $63,036 for misreported unemployment insurance contributions. In addition, the company and Demasco will be barred from working on New York state public work contracts for five years.
Demasco is scheduled to be sentenced on May 14, 2025, and faces up to three years in prison. However, if he pays $25,000 in restitution by that date, his sentence will be reduced to six months in jail followed by five years of probation, with the remaining restitution to be paid through probation.
The company’s president, Nicholas Barnett, pleaded guilty on March 4 to misdemeanor charges of failing to pay the prevailing wage and falsifying business records. He is expected to be sentenced on April 30 to three years of probation and will also be prohibited from working on public contracts for five years. Vice President Dana Petrizzo pleaded guilty to disorderly conduct and was sentenced to a conditional discharge the same day.
“We do not tolerate companies that exploit their employees or deceive the public,” Donnelly said. “BJA Renovations Corp. and its leaders shortchanged hardworking people when they should have ensured that they were paid fairly. 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. We remain committed to standing up for workers and holding businesses accountable when they break the law.”
New York State Department of Labor Commissioner Roberta Reardon echoed those sentiments, emphasizing the state’s commitment to protecting workers. “New York State has zero tolerance for those who cheat the unemployment insurance system or shortchange their workers out of hard-earned pay,” she said. “I am proud of the New York State Department of Labor’s continued partnership with the Nassau County District Attorney’s Office. Together, we will continue protecting law-abiding businesses and stamping out worker exploitation in all its forms.”
Prosecutors said BJA Renovations underpaid employees while working as a subcontractor on school renovation projects, including work at Birch School, Roland A. Chatterton School, and Norman J. Levy Lakeside School in the Merrick Union Free School District between June and November 2019. The company also performed similar work at Oceanside High School between June and September 2021.
The company submitted certified payroll records claiming workers were paid $44 per hour for hazardous construction labor and $37.44 for general construction labor. In reality, workers were paid only $35 per hour, often in cash, which was well below the prevailing wage. The correct rate under New York State labor laws at the time ranged from $52.70 to $74.70 per hour, depending on the role.
In addition to underpaying workers, prosecutors said the company also falsified its unemployment insurance filings. In February 2020, Barnett and BJA Renovations submitted a quarterly tax and wage report to the New York State Department of Taxation and Finance, falsely claiming that total wages paid to 15 employees between July and September 2019 amounted to $52,904. However, payroll records indicated that actual payments to those employees exceeded $185,000. The misrepresentation defrauded the state’s unemployment fund by more than $63,000.
Demasco and Barnett personally handled payroll deliveries at the worksites, prosecutors said, further implicating them in the scheme. Defendants surrendered to investigators on June 7, 2024, following a joint investigation by the Nassau County District Attorney’s Office and the New York State Department of Labor.
The case is being prosecuted by Senior Investigative Counsel Richard Balletta, under the supervision of Major Financial Crimes Bureau Chief Maureen McCormack and Executive Assistant District Attorney for the Investigations Division Rick Whelan. The defendants are represented by private attorneys.
