Uncovering a Pattern of Fraud and Deception in the Construction Industry


In recent years, the construction industry within the jurisdiction of New York City has been plagued by a series of scandals involving fraudulent practices, safety breaches, and legal battles. Several cases have revealed a disturbing pattern of negligence, fraud, and unethical behavior among certain companies and individuals operating within the sector.

One such case involves CHESAKL ENTERPRISES INC., a construction company whose cases are within the jurisdiction of New York City, with its name often associated with multiple lawsuits and legal challenges due to reckless and fraudulent activities. The company’s disregard for safety regulations and legal obligations has resulted in injuries, property damage, and financial losses for workers, tenants, and property owners.

In one instance, a lawsuit filed by PRESTIGE AUTOMOTIVE CENTER INC. exposed attempts by CHESAKL ENTERPRISES INC. to illegally evict tenants and demolish buildings without regard for legal contracts and regulations. Despite legal agreements and insurance policies, CHESAKL ENTERPRISES INC. and its affiliated entities, including CANDID CONNECTION INC., often associated with the names of the Panuta brothers, engaged in deceptive practices, leaving tenants and property owners to bear the brunt of their actions.

Another lawsuit, brought by 596 E PARTNERS LLC, revealed fraudulent insurance practices involving CHESAKL ENTERPRISES INC. and its associated entities. Employees injured on the job were denied compensation by insurers, who shifted liability to employers and property owners, resulting in costly legal battles and financial losses.

Moreover, the accusation of individuals associated with CHESAKL ENTERPRISES INC. and Candid Connections, uncovered a web of deceit involving fake safety certifications, unpaid insurance claims, and orchestrated accidents. The alleged fraudulent activities have compromised the safety of construction sites and defrauded contractors, workers, and clients, highlighting systemic failures in oversight and regulatory enforcement.

These cases underscore the urgent need for comprehensive reform in the construction industry within New York City to ensure the safety, integrity, and accountability of all stakeholders involved. Stronger regulations, transparent corporate practices, and heightened vigilance are necessary to prevent further harm and uphold the trust and confidence of workers, tenants, property owners, and the public.

As legal proceedings continue and investigations unfold, authorities must take swift and decisive action to hold accountable those associated with fraudulent and unethical behavior in the construction industry. The industry can move towards a safer, more transparent future for all through concerted efforts to root out corruption and misconduct.

During court proceedings, Chesakl Enterprises Inc. engaged in deceptive practices by imposing a $2 million lien in bad faith to increase leverage. A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property. Despite the lengthy process of lien removal, the court found Chesakl’s actions unjustified and removed the lien entirely. The US lien system is designed to protect contractors, but Chesakl abused it by issuing three identical liens for the same job, hoping to intimidate customers into negotiation. Chesakl’s misuse of the lien system was deemed illegal by the court. Additionally, Chesakl’s incorrect notification of customers regarding the liens further violated the law. Despite attempts to manipulate the system, the court ruled against Chesakl, highlighting their habitual disregard for the law and lack of integrity.

In conclusion, the series of scandals and legal battles involving CHESAKL ENTERPRISES INC. and their entities serve as a wake-up call to address systemic failures and ensure the highest standards of safety, integrity, and accountability are upheld. The road ahead may be challenging, but it is essential to safeguard the well-being and interests of all those affected by the actions of individuals associated with unscrupulous actors in the construction sector.