.png)
NEW YORK—A retailer who owned Mistique Boutique and six other stores in New York City was arrested on Tuesday for allegedly paying his employees less than legal wages, faking tax returns, and obstructing investigation into his case.
According to the state attorney general's office, David Cohen, whose clothing stores were quite popular, owes $1.5 million in unpaid wages and damages. Many of Cohen's stores are in prime spots on Broadway in Manhattan, like Exstaza, a clothing store, and Amsterdam boutique.
“In this case, workers were not only ripped off but were also intimidated to make sure they stayed quiet,” said Attorney General Andrew Cuomo, who filed a civil as well as a criminal suit against Cohen.
Cuomo's office added that Cohen's employees have worked 10 or 11 hour shifts for six days a week since 2004. He added that the employees, who often worked more than 40 hours per week, did not receive due overtime payment.
Overall, 150 employees need to be compensated a total $1.5 million, said Cuomo. In some instances Cohen paid his employees $5.25 an hour, which is well below state minimum wage laws.
When the employees tried to alert authorities, Cohen threatened and intimidated them, said the attorney general's office.
“All workers deserve fair pay and have a right to stand up for themselves,” said the attorney general. “Today’s civil and criminal charges should send a strong message: No one is above the law.”
Cohen tried to cover up any wrongdoing, and one of the workers was allegedly paid $50,000 by Cohen to keep quiet during the investigation, said Cuomo.
Cohen is charged with 19 first-degree counts of falsifying business records along with various other charges, which may net him as much as eight years in prison if convicted. Other charges include tampering with a witness, failure to pay wages, and other labor law violations—all misdemeanors.