More Than $2 Million In Theft Uncovered In 'Multiple' Labor Investigations In Nassau County: DA

MINEOLA, NY — Prosecutors have uncovered more than $2 million in theft through multiple labor investigations since the start of the year and returned more than $450,000 to 80 workers who were victimized by companies that failed to pay proper wages, Nassau County District Attorney Anne Donnelly's office said.

Donnelly said she is "incredibly proud" of the work done by her prosecutors in the Major Financial Frauds Bureau.

"Their continued diligence and determination have resulted in the recovery of millions of dollars this year in stolen wages and other funds," she said. "But this is not just about dollars and cents. It’s about justice for the hardworking men and women of Nassau County who were taken advantage of by heartless crooks."

"We will continue to pursue every lead, work together with our partners in labor, and make sure that victims of labor crimes get the pay and protections that they rightfully deserve," she added.

She announced the arrests of several people and companies for crimes, including wage theft and workers' compensation theft.

On Sept. 8, Jason Sichel and Neil Sims, co-owners of Timeless Body II, LLC, a medspa in Garden City that provides surgical and non-surgical cosmetic procedures, were arraigned, along with the company on two counts of third-and fourth-degree grand larceny, first-degree scheme to defraud, and two counts of failure to pay wages, as well as willful failure to pay contributions, Donnelly said.

Sichel and Sims told two prospective employees that they would be required to pay $6,000 each for training toward certificates to be hired, and each person paid the defendants, but no training was ever provided, according to Donnelly.

Once employed, the people were tasked with performing procedures on customers for which they did not have proper training, Donnelly said, adding that the defendants also failed to pay the women for their work at the medspa over a period of three weeks, around 150 hours, despite repeated requests.

The investigation found the company and both its owners failed to register with the state's Department of Labor and failed to contribute to the fund for Unemployment Insurance, according to Donnelly.

In total, Sichel and Sims, as owners of Timeless Body II, LLC, are charged with more than $16,000 in theft, Donnelly said.

The pair pleaded not guilty and are due back in court on Sept. 19.

They each face up to seven years in prison if convicted.

Patch has reached out to their attorney, Edward G. Sponzilli of New Jersey, for comment.

Detective Investigators also arrested and charged a Rockville Centre business owner and his Queens-based iron and erection construction company on Sept. 4 in connection with a $1.5 million workers compensation scheme, according to Donnelly.

Mahendranauth Khargie, 36, and his company, GC Stud Inc., were charged with three counts of second-degree grand larceny, three counts of second-degree insurance fraud, three counts of effect of failure to secure compensation under the state's Workers’ Compensation Law, and three counts of fraudulent practices under the state's Workers' Compensation Law, Donnelly said.

Khargie maintained a hidden bank account discovered by the state's Insurance Fund investigators that the defendant had not reported to premium auditors during their legally required annual audits during three policy periods between April 2019 and March 2022, according to Donnelly.

In the scheme, Khargie under-reported his payroll by more than $3.5 million, resulting in underpayments of the company’s policy premiums of $1.54 million, Donnelly said.

Khargie pleaded not guilty and is due back in court Sept. 17.

He faces up to 15 years in prison if convicted.

Khargie's attorney, Joseph Nohavicka of Manhattan, told Patch that a not guilty plea has been entered and the defense is currently cooperating with the DA’s office.

"Our past clients have always been treated fairly by that office and we are confident that the matter will be resolved soon," he added.

The case's next court date is Oct. 15.

Labor crime attorneys also aggressively pursued companies for prevailing wage violations, ensuring workers are returned money that they are owed and companies are held accountable, according to Donnelly.

On Aug. 21, BJA Renovations Corporation, a North Babylon asbestos removal and demolition labor company, was sentenced in a prevailing wage theft that stole more than $80,000 from workers on public work projects at schools in the Merrick and Oceanside Union Free School Districts between 2019 and 2021, Donnelly said.

The company was sentenced to a three-year Conditional Discharge on Aug. 21, and is prohibited from performing any public work projects in the state for five years, and the company’s president, Nicholas Barnett, was sentenced in May 2025 to three years’ probation, Donnelly said.

Like BJA Renovations Corp., Barnett is also prohibited from performing any public work projects in New York State for five years, according to Donnelly.

As part of the company’s sentence, BJA Renovations Corp. was ordered to pay $63,000 to the state's Department of Labor for its failure to pay Unemployment Insurance contributions, Donnelly said.

The final co-defendant, Joseph Demasco, is scheduled to be sentenced on Nov. 25, where he is to pay $81,592 in underpaid wages to more than 40 workers or face up to 3 years in jail, Donnelly said, adding that he also faces a prohibition from performing public work in New York for five years.

Patch has reached out to BJA Renovations Corp. and Demasco's attorney, Robert Schaulk of Mineola, and Barnett's attorney, James Iannone of Williston Park, for comment.

Schaulk told Newsday that BJA Renovations Corp. "deeply regrets any oversight that occurred when it came to these matters and is working with the District Attorney’s Office to make the appropriate restitution."

The Major Financial Frauds Bureau also resolved an additional five cases since January 2025 with non-prosecution agreements, getting money back into workers' pockets and forcing companies to change their practices, according to Donnelly.

The agreements resulted in the return of $363,000 to 37 workers in the construction and agriculture industries in Nassau, including nearly $130,000 for a worker who was denied prevailing wages on a job, Donnelly said.

The county Department of Labor Commissioner Christopher Fusco said his agency has an "open-door policy" for any wage theft, Prevailing Wage misclassifications, compensation and insurance fraud or for any violation that can be prosecuted.

“We work in collaboration with the Nassau Suffolk Building Trades Council, the Long Island Federation of Labor, and the Long Island Contractors Association and have a direct line of communication to the District Attorney’s Office, resulting in felony arrests and restitution," he said. "Nassau County labor attorneys and detectives leave no stone unturned.”

New York State Department of Labor Commissioner Roberta Reardon said that at her agency's mission is "to hold employers accountable and ensure workers receive fair pay for a day’s work."

"These cases serve as a warning to bad actors, and I applaud Nassau County District Attorney Donnelly and her team for bringing these violators to justice," she said. "Combatting wage theft continues to be a top priority for the Governor, and we will continue to collaborate with law enforcement to safeguard the rights of workers.”

The state's Insurance Fund Executive Director and CEO Gaurav Vasisht noted that insurance and labor fraud "hurts workers, businesses, and the integrity of the entire system."

“Thanks to the diligence of NYSIF staff and our partners in law enforcement, this fraud was uncovered," he added.

President of the Long Island Federation of Labor, AFL-CIO John Durso said Donnelly's "commitment to justice is clear."

"If you are a criminal employer in Nassau County, you will be held accountable," he said. "Our union movement will continue to work with District Attorney Donnelly to protect workers, return stolen wages, and make sure that honest employers are not undercut by criminals who cheat the system. Every worker deserves a fair day’s pay for an honest day’s work.”

Vincent Alu, Business Manager of Laborers Local 66, said that "for years, the honor system of certifying employee payroll and paying required wages has been corruptly mishandled by pirate contractors betraying public trust and exploiting workers who are not paid in full for their labor or their time."

"Wage theft is often accompanied by many other crimes, including the mishandling of hazardous materials in public buildings, insurance fraud and tax fraud,” he said, adding that Donnelly and her team "have our unwavering respect and gratitude for drawing a line in the sand."

"If you plan to utilize public money on our community construction projects, do it lawfully," he said. "The consequences pile up quickly when you don’t, and this team of prosecutors will not tolerate it.”