BOSTON — The Massachusetts Attorney General’s Office (AGO) has announced a settlement with Avatar Construction Corporation, a Watertown-based firm, and its owner, Nazar Vincent. This settlement addresses allegations of violating the Massachusetts False Claims Act (MFCA) regarding prevailing wage theft on five public construction projects in cities including Cambridge, Lawrence, Saugus, and Watertown.

As part of the settlement, Avatar has agreed to pay $320,000 to the Commonwealth, enabling the state to provide approximately $172,000 in restitution to affected workers.

The AGO's lawsuit, initiated in March 2023, claimed that Avatar submitted 68 fraudulent payroll forms—prepared by its subcontractor, Gonza Construction, Inc.—to falsely certify compliance with the Massachusetts Prevailing Wage Law. It was alleged that workers were compensated less than half of their entitled wages, with the payroll forms containing numerous blatant errors.

The Massachusetts Prevailing Wage Law establishes minimum wage rates for certain worker classifications on public construction projects. Compliance necessitates the submission of certified payroll forms as a condition for payment on public contracts. Subcontractors are prohibited from submitting false records related to payment claims without taking reasonable steps to ensure their accuracy.

This case follows a previous ruling against BPI Construction Corporation, which was ordered to pay nearly $1 million for similar violations, emphasizing that liability extends up the payment chain to contractors who facilitate misconduct through negligence.

The complaint originated from the Plumbers Union Local 12 and was pursued through a coordinated effort between the AGO's False Claims Division and Fair Labor Division, responding to a troubling pattern of wage theft complaints associated with subcontractor-prepared payroll.

The AGO's False Claims Division, established in 2015, aims to protect public funds and ensure accountability in public contracting. Individuals suspecting fraud related to state or municipal contracts are encouraged to report it via the AGO’s tip line at 617-963-2600.

Workers feeling their rights have been compromised are advised to file complaints at mass.gov/ago/fld, while information on wage and hour laws can be accessed through the AG’s Fair Labor Hotline at (617) 727-3465.

Perspective from Construction Owners

‍Construction owners should recognize the importance of adhering to labor laws and ensuring that subcontractors are compliant with prevailing wage regulations. Not only does this foster fair treatment of workers, but it also protects companies from potential legal issues and financial liabilities that arise from non-compliance.

Takeaway

‍This settlement underscores the critical need for transparency and accountability in public construction projects. It serves as a reminder for construction companies to rigorously vet their subcontractors and maintain accurate payroll practices to safeguard against allegations of wage theft and protect both their workers and their business integrity.