A former construction field superintendent in Baltimore has pleaded guilty to a felony wage-theft scheme that deprived workers of tens of thousands of dollars in earnings on major public projects, according to an announcement from Maryland Attorney General Anthony G. Brown.
Fredy Arellano, 45, of York, Pennsylvania, entered a guilty plea in Baltimore City Circuit Court to one count of felony theft scheme between $25,000 and $100,000. Investigators determined that Arellano, along with an associate, systematically underpaid employees working on two University of Maryland construction projects by failing to provide the state-mandated prevailing wage.
Arellano was sentenced to five years of incarceration, with all but 90 days suspended. Instead of serving jail time, the 90 days will be completed through home detention, followed by three years of supervised probation.
Prior to sentencing, Arellano paid $63,157 in full restitution, the amount determined to be his share of the stolen wages.
Attorney General Brown emphasized the seriousness of the offense, stating:
“This case shows that we will prosecute employers when they steal wages from their employees, taking food off the table for Maryland families. Our Office will always fight for Maryland workers to get paid every dollar that they’ve earned.”
The theft was connected to two public works projects in Prince George’s County:
Under Maryland law, companies on these projects were obligated to pay employees the prevailing wage, a standardized hourly rate established by the Commissioner of Labor and Industry for public contracts.
However, the Attorney General’s investigation uncovered that certified payroll records were falsified to make it appear workers were paid properly. In reality, Arellano and the subcontractor’s owner used deceptive methods—including fake payroll names—to keep the wage difference for themselves.
The scheme involved the subcontractor Congratulations Construction Inc., whose owner, Jose Walter Marquez Rivera, was sentenced in a related case in 2024.
The Attorney General’s Office is now encouraging any laborers who worked for Congratulations Construction Inc. on the affected University of Maryland projects to come forward to determine if they are eligible for restitution. Workers can contact:
📧 restitution@oag.state.md.us
Originally reported by Chris Montcalmo in Nottingham MD.
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