Owners of Construction Firm Charged in Alleged $13.5M Fraud on NYC School Repairs
BROOKLYN, NY – June 30, 2025 – Two Long Island construction executives were arrested and charged with conspiracy to commit wire fraud in an alleged multi-year scheme involving falsified payroll records and underpayment of undocumented workers on public school projects.
Federal prosecutors say Dalip Singh, 67, of East Meadow, and Gurnirmal Singh, 64, of Westbury, owners of TEMCO Construction NY, Inc., defrauded the New York City Department of Education (DOE) out of more than $13.5 million between 2017 and 2025.
The criminal complaint, unsealed in federal court in Brooklyn, accuses the two men of hiring undocumented workers to perform masonry, scaffolding, and construction work at DOE buildings—while failing to pay prevailing wages required by New York labor laws.
“As alleged, the defendants lied to the DOE about using undocumented workers, and deprived those workers—who toiled long days, school holidays, and weekends—of proper compensation they had earned, so that they could line their pockets and bank accounts on New York City’s tab,” said U.S. Attorney Joseph Nocella.
Pattern of Exploitation and Cover-Up
According to investigators, Dalip Singh submitted fraudulent certified payrolls that inflated wages, omitted actual workers, and included names of relatives who did not perform any work at school sites. Some workers were paid off-the-books in cash or had their wages manipulated to offset payments required under prevailing wage rules.
“The Singhs allegedly laundered more than thirteen million dollars from the City of New York,” stated IRS-Criminal Investigation Special Agent in Charge Harry Chavis. “These two men took advantage of both the taxpayers and undocumented workers, then tried to destroy the evidence.”
The complaint alleges that when Singh grew suspicious of an ongoing investigation, he ordered employees to destroy records and lie to city investigators about their pay.
Construction Industry and Accountability
Construction industry leaders condemned the alleged conduct, warning that such schemes create an uneven playing field.
“Any contractor who exploits workers and manipulates public contracts harms not only those laborers but also honest companies that follow the law,” said Mario Benitez, a New York contractor and member of a public works coalition. “This is wage theft at scale—and it makes public trust harder to maintain.”
Federal officials made clear the case also intersects with broader immigration and labor enforcement priorities.
“The message is clear: if you exploit the unauthorized workforce for personal gain and undercut American jobs, HSI—along with our law enforcement partners—will hold you accountable,” said Michael Alfonso, Acting Special Agent in Charge at Homeland Security Investigations in New York.
Amy Connelly of the SSA’s Office of Inspector General added, “These defendants broke the law by hiring illegal undocumented workers, exploited them by underpaying them and manipulating wage records to falsely inflate their own and their family members’ Social Security earnings.”
Legal Process and Next Steps
Dalip Singh and Gurnirmal Singh were arraigned before U.S. Magistrate Judge Cheryl L. Pollak and are presumed innocent unless proven guilty. If convicted of conspiracy to commit wire fraud, they each face up to 20 years in federal prison.
The case is being prosecuted by the U.S. Attorney’s Office’s Business and Securities Fraud Section, led by Assistant U.S. Attorney John Vagelatos, and is part of the Eastern District’s Transnational Criminal Organizations (TCOs) Strike Force, which focuses on dismantling fraud networks with global reach.
Defendants
- Dalip Singh, 67, East Meadow, NY
- Gurnirmal Singh, 64, Westbury, NY
Case No.: 25-MJ-219 (E.D.N.Y.)
Press Contact
- John Marzulli / Denise Taylor
U.S. Attorney’s Office, Eastern District of New York
📞 (718) 254-6323
This case highlights the vulnerability of public contracting systems when enforcement of labor protections is weak. Advocates are urging New York City to expand compliance audits and fund more wage theft investigators to root out similar misconduct. Labor unions and city agencies are watching closely, with more potential charges or civil suits likely to follow.
Originally reported by U.S. Attorney's Office.