Complaint Review: Losardo Contracting - Brooklyn New York

Thank you for taking the time to read this transmittal. First a little about SNR Networks, we are a low voltage subcontractor working out of Brooklyn New York. Our company specializes in combining every low voltage discipline (av, fire, security, telecom) under one umbrella to help general contractors meet their mbe goals for construction contracts. One of our best initiatives is hiring at risk youth from east New York to keep them off the streets and out of gang violence. We have had alot of success with these initiatives and look forward to putting more and more young men to work in the future. Like our fellow sub contractors Company JH Electric (mwbe) and Nts Electric (mwbe) we have run into issues at Contract No : CITYW-CUCF-04-14-03-GC1, CUNY Brooklyn College, specifically we have run into issues with Leviathan Mechanical D.B.A "Losardo Contracting" We were hired to provide low voltage services to Losardo Contracting at Brooklyn College. From the onset we were suspicious as our request for a schedule went unanswered for months. Then suddenly we were expected to complete a half million dollar installation within a 2 month notice. As work at the jobsite became increasingly hectic and disorganized Losardo Contracting saw the loss of 3 project managers, and their controller who basically abandoned ship mid-project. The project managers were never replaced, each of the Losardo family would jump on board as needed for a week at a time then disappear.

As the project dragged on and expenses mounted Losardo began an unscrupulous campaign of blaming their busted schedule on their subcontractors including the two electricians we worked behind. As other subs and SNR continued to work to salvage the job 2 things became abundantly apparent Losardo Contracting had run out of money and that Losardo Contracting was willing to do whatever it took to avoid paying their subs. One by one subcontractors refused to work without payment and Losardo Contracting adopted a 'scorched earth' approach of burning out contractors by delaying or outright refusing to pay them, then recycling a fresh batch of subs to complete work. Losardo Contracting would routinely get paid off of their sub contractor requisites then use the money to put out whatever fire they were experiencing.

This action is a direct violation of New York State Lien Law 3 Section A, which establishes sub contractors as beneficiaries of the trust (payments) and general contractors (Losardo) as the Fiduciary. Diverging assets 82 Rockaway 1B Parkway Brooklyn, NY 11212 Tel: 347-221-0928, Fax: 347-425-7245 Email: [email protected] from the trust carries a stiff civil and criminal penalty. Attached are links explaining the letter of the law and an attachment of then Losardo Contracting Controller Arnulfo Pachon scheduling payments to SNR because they didn’t have enough money to satisfy their debts. How bad have things gotten?

Well last winter the Hvac sub pulled out of the job and outright refused to complete work on the heating system because Losardo didn't pay them and classes started and the students are forced to wear jackets.......JACKETS.... at a historical Cuny College ....in Brooklyn. Losardo Contracting has recklessly put the livelihood of their workers and clients at risk. SNR Networks has substantially completed the job in full and Losardo is refusing to pay us our requisite that is 365 days overdue. They stretched us out so long that we were forced to default on scheduled payments to the union Local 3. As standard practice the general contractor has an option to write a two party check to cure the deficiency but Losardo has refused to make this customary exemption. The requisite amount is $200,000 owed for the months of October through February. We have documented a pattern of Losardo Contracting embezzling funds from paid requisites intended for sub contractors to handle their personal expenses. When we made complaints to the construction manager Epic Management they were completely apathetic and the Cuny Representatives at Brooklyn College only care that the equipment is working. Every time we complain to Losardo they write us a 72 Hour notice for frivolous items as a means of intimidation. Losardo Contracting has also made improper direct payments to our white employees while ignoring our black employees.

Here is summary of our issues:

1. Losardo has embezzled funds from the project for personal use,

2. Losardo purposefully creates frivolous issues to backcharge subs at exorbitant rates.

3. Losardo sabotages the jobsite ( we have had $3500 worth of equipment stolen while under direct supervision of the site manager Tom Pescumal)

4. Losardo's breaking their contractual obligations to pay us and other subs in a timely matter. Losardo is being sued by multiple subs including : JH Electric and NTS Electric.

5. Losardo Contracting has violated Section 3a of NY’s lien law several times and we have documented evidence of this.

6. Losardo Contracting has at times attempted to pay our white employee’s directly while leaving our black employees to rot so there is a strong racial aspect in all this.

7. Losardo Contracting appears to be targeting minority subcontractors including those that are :Women, African American and Latinx. (See Better Business Bureau Reviews) I’m sure if there's an investigation there will be an avalanche of violations and oversights that will enable the city of new york to shut down these guys for good.

See attached reviews from other sub contractors, there are dozens of subs and hundreds of families that have been impacted by this. Please let us know how you can assist.