Former Construction Superintendent Admits to Wage Theft Scheme on University of Maryland Projects

According to the Maryland Attorney General’s office, a former field superintendent for a Baltimore-based construction company has pleaded guilty to felony theft for his role in a scheme that deprived workers of their rightful wages. The case involved construction projects at the University of Maryland, where Fredy Arellano, 45, of York, Pennsylvania, orchestrated a plan to steal money owed to carpenters and laborers.

The investigation revealed that Congratulations Construction Inc., a company contracted for work on the University of Maryland Capital Region Cancer Center and the University of Maryland Field Hockey and Women’s Lacrosse Complex in Prince George’s County, was required to pay prevailing wages as determined by the Commissioner of Labor and Industry. Certified payroll records submitted to the state falsely indicated that these wages were being paid. However, Arellano, acting as the field superintendent, and the owner of Congratulations Construction Inc. engaged in a fraudulent practice, which included the use of fabricated payroll names, to divert funds intended for the workers. These workers were ultimately paid significantly less than the legally mandated and certified wage rates. Arellano personally benefited from this scheme, receiving $63,157. The owner of Congratulations Construction Inc., Jose Walter Marquez Rivera, was previously sentenced in a related legal action.

Arellano faced sentencing in the Circuit Court for Baltimore City for one count of felony theft involving an amount between $25,000 and $100,000. Judge Jeffrey M. Geller handed down a sentence of five years of incarceration, with all but 90 days suspended, which will be served under home detention. He will also be subject to three years of supervised probation. In a significant development, Arellano had already paid the full restitution of $63,157 prior to his guilty plea.

The Attorney General’s office is extending an invitation to any worker who was employed by Congratulations Construction Inc. on either the University of Maryland Capital Region Cancer Center or the University of Maryland Field Hockey and Women’s Lacrosse Complex projects. These individuals are encouraged to contact the Office of the Attorney General at restitution@oag.state.md.us to inquire about potential restitution they may be owed as a consequence of this case. This case underscores the state’s commitment to ensuring that employers are held accountable for wage theft, a practice that directly impacts the financial stability of Maryland families.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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