Several construction companies have filed a lawsuit accusing multiple individuals and law firms of orchestrating a fraudulent scheme involving staged construction accidents. The lawsuit, filed on Nov. 15, in the U.S. District Court for the Eastern District of New York, involves Ionian RE, LLC, Skyline Restoration Inc., Urban D.C. Inc., and DNA Contracting & Waterproofing LLC.
The defendants include Patricio Cedillo, Carlos Figueroa-Orellana, Rosario Guillermina Cedillo, Erik M. Barrezueta Orellana, Wilson Barrezueta, Freddy Fajardo, Ronald Efrain Bravo, Cristhian Orlando Montesdeoca Peralta, Miguel Angel Teleguario Tzay, Erwin Marcelo Guarango-Marin, Milton Javier Guarango-Marin, Johnny Geovanny Clavijos Fajardo, as well as law firms Subin & Associates LLC and Wingate Russotti Shapiro Moses & Halperin LLP.
The plaintiffs allege that the defendants violated the Racketeer Influenced and Corrupt Organizations (RICO) Act by staging fake construction site accidents. These incidents were then used to file fraudulent workers' compensation claims and personal injury lawsuits.
According to the complaint, these accidents were staged by "runners" who recruited construction workers to fake injuries at job sites across New York. The lawsuits detail incidents starting in December 2017, where accidents occurred shortly after workers began their employment at various locations.
One such incident involved Patricio Cedillo, who allegedly jumped from a second-story balcony at a Brooklyn site on December 21, 2017. Despite being discharged from the hospital hours later with no significant injuries, Cedillo’s attorneys filed exaggerated claims detailing severe injuries requiring extensive medical treatment.
Other defendants, including Carlos Figueroa-Orellana and Rosario Cedillo, are accused of staging falls that resulted in inflated damage claims.
The plaintiffs argue that these fraudulent activities were aided by complicit law firms. These firms reportedly represented claimants in personal injury lawsuits and referred them to medical providers who performed unnecessary treatments to inflate settlement amounts.
"The scheme is part of a grand organized effort to defraud insurance companies," the complaint states. The conspiracy has reportedly cost New York State hundreds of millions of dollars in increased insurance premiums, impacting real estate owners and contractors.
In response to these allegations, the plaintiffs seek compensatory damages for financial losses caused by the fraudulent claims. They are also seeking punitive damages against all involved defendants and injunctive relief to prevent further fraudulent activities.
Representing the plaintiffs is The Willis Law Group LLC. Case I.D. 1:24-cv-07969.