NY-AG v. Michael Martin

Michael Martin allegedly masterminded a scheme to fraudulently obtain public construction contracts, willfully failed to pay over $400000 in wages to dozens of employees, and stole over $150000 from a minority-owned business and over $200000 from an insurance company by filing a false insurance claim on behalf of the minority-owned business, according to NY-AG. Martin and co-defendant Dr. Scott Henzel allegedly offered two minority business enterprises, Lorice Enterprises, Inc. and Precision Environmental Solutions, Inc., the opportunity to partner with Eastern for the purpose of teaching the businesses how to successfully operate and bid on construction projects. In reality, Martin and Henzel allegedly took over the two businesses, managing all day-to-day business activities, including staffing of laborers and bidding decisions, as well as all banking activity and financial decisions, according to NY-AG. Martin admitted that he and Henzel systematically failed to pay over 50 laborers $6 per hour in pension funds, which Eastern was obligated to pay as part of their prevailing wage, according to NY-AG. Martin admitted that he and Henzel issued false paystubs to employees indicating that the payments had been made, and falsely certified on public works projects that the payments had been made when in fact they had not, according to NY-AG. Martin also admitted that beginning in 2014, after Eastern went out of business, he embezzled over $150000 from Precision by diverting over $9000 per month pursuant to a phony lease agreement with a company called Delta Land Holdings, LLC, which was controlled exclusively by Martin, according to NY-AG.

Summary generated from official New York Attorney General press release