skip to content

National Wage and Hour Clearinghouse

Retailer arrested for cheating employees

Tuesday, February 23, 2010

Three weeks ago, hundreds of disgruntled New York workers braved the cold weather to march 20 blocks in protest of unfair wage practices. On Tuesday, they received some vindication. One of the objects of their protest, David Cohen, owner of fast fashion, seven-store chain Mystique Boutique, was arrested by the state attorney general's office for cheating his employees out of $1.5 million.
“Workers were not only ripped off, but were also intimidated to make sure they stayed quiet,” said Attorney General Andrew Cuomo, in a statement. “Today's civil and criminal charges should send a strong message: No one is above the law. My office will take action against employers that take advantage of their workers and cheat the state's unemployment insurance fund.”
Mr. Cohen owns stores such as Mystique at 547 Broadway, Exstaza at 491 Broadway, and Amsterdam at 454 Broadway. Employees at his stores were allegedly paid $5.25 an hour, which is $2 below minimum wage. In addition, for the last six years, employees have worked 66-hour work weeks and were not paid overtime. About 150 workers are owed the $1.5 million. The attorney general's office also reported filings that Mr. Cohen allegedly threatened workers, and even offered one person up to $50,000 to divulge which employees were involved in the investigation against him and his business.  (click link to read full story)
 

Login
Pro Bono and legal aid attorney resources - Pro Bono Net