Federal authorities have charged an Indian-American businessman with allegedly paying off-the-books cash wages to workers, some of them illegal aliens, and under-reporting their hours as part of a scheme to defraud the benefit funds of the employees’ labor union. If convicted he could face 20 years in prison and would have to pay up $1.9 million in restitution.
Yashvant C. Patel, 59, of St. Charles was arrested Aug. 7 and charged with four counts of mail fraud and four counts of making false statements in official retirement documents and will have to forfeit $1.9 million if convicted, a release from the U.S. Attorney for the Northern District of Illinois said.
Each count of mail fraud carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. Each count of making false statements on official documents carries a maximum sentence of five years in prison, a $250,000 fine, and mandatory restitution.
According to the indictment, while serving as president of My Baps Construction Corp., from the period January 2009 to October 2010, Patel allegedly paid less-than-union-scale wages to dozens of employees, including illegal aliens, in order to reduce the employer contributions to the benefit funds of the Construction and General Laborers’ District Council of Chicago and Vicinity.
He is alleged to have falsely reported that My Baps and a sister company, Vijay Construction Corp., owed approximately $600,000 less to the benefit funds and approximately $1.3 million less to the companies’ employees than what was required by collective-bargaining agreements with the union.
Also, he is charged with under-reporting approximately 33,000 hours of work of his employees, some of whom were not lawfully entitled to work in the United States.
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