Three businessmen charged with ripping off their workers on public works projects

ORANGE COUNTY DISTRICT ATTORNEY PRESS RELEASE

Case # 15CF0737

Date: April 27, 2015

THREE BUSINESSMEN CHARGED FOR TAKING WORKERS’ WAGES ON PUBLIC WORKS PROJECT

SANTA ANA – Three businessmen have been charged for defrauding employees by taking their wages on a public works project. Saeed Kenari, 54, Tujunga, is charged with four felony counts of conspiring to take a portion of workers’ wages on a public works project, 34 felony counts of taking workers’ wages on a public works project, 20 felony counts of failure to pay taxes, four felony counts of conspiracy to commit a crime, and 10 felony counts of conspiring to file a false or forged document with a sentencing enhancement allegation for property loss over $200,000. If convicted, Kenari faces a maximum sentence of 56 years and three months in state prison. Kenari is being held on $340,000 bail and was arraigned today. He is scheduled for pre-trial on May 15, 2015, at 8:30 a.m. in Department C-55, Central Justice Center, Santa Ana.

Co-defendant Rina Arakelian, 62, Glendale, is charged with four felony counts of conspiring to take a portion of workers’ wages on a public works project, 34 felony counts of taking workers’ wages on a public works project, four felony counts of conspiracy to commit a crime, and 10 felony counts of conspiring to file a false or forged document with a sentencing enhancement allegation for property loss over $200,000. If convicted, Arakelian faces a maximum sentence of 27 years in state prison. Arakelian is being held on $340,000 bail and is scheduled for continued arraignment on May 15, 2015, at 8:30 a.m. in Department C-55, Central Justice Center.

Co-defendant Shahan Haider Zaidi, 44, Long Beach, is charged with four felony counts of conspiracy to commit fraud. If convicted, he faces a maximum sentence of five years and six months in state prison. Zaidi remains a fugitive.

Between October 2006 and December 2012, Kenari is accused of operating Sunland Fire Protection (SFP) in Glendale. Kenari is accused of conspiring to take a portion of his workers’ wages on SFP’s public works projects from newly immigrated workers who were not familiar with the law. Kenari is accused of hiring Arakelian as a bookkeeper and Zaidi as an office worker and an estimator with SFP. Kenari is accused of accepting public works projects for SFP in both Los Angeles and Orange County.

Kenari, Arakelian, and Zaidi are each accused of falsifying SFP payroll records in order to conceal the hours worked by workers who were not paid their full wage. Kenari is accused of failing to report over $1 million in payroll to the Employment Development Department resulting in a loss of over $100,000.

This case was referred to the Orange County District Attorney’s Office by the California Department of Industrial Relations (DIR) after investigating the wage theft and issuing a Civil Wage and Penalty.

“These types of crimes have an incredibly negative impact on both workers and on our state economy,” said Christine Baker, director of DIR. “We will continue to hold employers like these accountable for failing to follow laws that protect workers as well as businesses that play by the rules.” The Labor Commissioner’s Office is a division of the DIR.

“Our office is committed to seeking the harshest penalties for contractors who intentionally steal wages from their workers and cheat their competitors by gaining public works projects unlawfully,” stated Labor Commissioner Julie A. Su. “I also want to commend the criminal enforcement at the Orange County District Attorney’s Office,” said Su.

Deputy District Attorney Donde McCament of the Workman’s Compensation Fraud Unit is prosecuting this case.

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TONY RACKAUCKAS, District Attorney

Susan Kang Schroeder, Chief of Staff
Office: 714-347-8408
Cell: 714-292-2718