D.A Bragg Announces Indictment in $40 Million Cash Payroll Conspiracy

www.Manhattanda.org, Press Release, June 6, 2025

Manhattan District Attorney Alvin L. Bragg, Jr., today announced the indictment of the SCHNELLBACHER-SENDON GROUP, LLC (“SSG”), its owners, and executives and managers, for using fictitious shell companies to steal more than $9 million in unpaid workers’ compensation premiums from the New York State Insurance Fund (“NYSIF”) by failing to report at least $40 million in cash payroll for more than 100 employees from 2017 to 2024. The defendants are charged in a New York State Supreme Court indictment with Conspiracy in the Fourth Degree and Money Laundering in the First Degree. Certain defendants are also charged with various counts of Insurance Fraud in the First Degree and Falsifying Business Records in the First Degree.[1]

“This indictment captures an alleged conspiracy that stretched from a construction company to the check cashing business that generated its $40 million unreported payroll,” said District Attorney Bragg. “NYSIF provides an important service in a city where construction is never-ending, and fraud impacts its ability to make injured workers whole. My Office’s Rackets Bureau followed the money, working with numerous enforcement partners here and in New Jersey, to put an end to this alleged scheme.”

“Fraud impacts the entire workers’ compensation system, raising costs for all businesses and putting workers at risk,” said Gaurav Vasisht, Executive Director & CEO of the New York State Insurance Fund. “This indictment highlights the need for vigilance in rooting out fraud and we’re grateful to D.A. Bragg and his office for their partnership.” Continue Press Release