Fredy Arellano Stole Over $63,000 in Wages Meant for Workers; Sentenced to Home Detention and Probation
BALTIMORE, MD — Maryland Attorney General Anthony G. Brown announced today that Fredy Arellano, 45, from York, Pennsylvania, has admitted guilt in a felony theft scheme involving the embezzlement of wages from construction workers assigned to projects at the University of Maryland.
Arellano, who held the position of field superintendent for a construction firm based in Baltimore, participated in a wage theft operation that misappropriated tens of thousands of dollars meant for drywall carpenters and laborers engaged in two significant projects: the University of Maryland Capital Region Cancer Center and the University’s Field Hockey and Women’s Lacrosse Complex, both situated in Prince George’s County.
According to Maryland law, workers on public projects are entitled to receive a prevailing wage, as determined by the Commissioner of Labor and Industry, and employers are obligated to provide certified payroll records as verification. However, the Attorney General’s Office reported that Arellano and Jose Walter Marquez Rivera, the owner of Congratulations Construction Inc., falsified these payroll records—employing deceptive tactics such as using fictitious employee names—to falsely assert compliance with the law while significantly underpaying workers.
Arellano personally profited $63,157 from this fraudulent scheme. He pleaded guilty in Baltimore City Circuit Court to one count of felony theft scheme involving amounts between $25,000 and $100,000.
Judge Jeffrey M. Geller sentenced Arellano to five years in prison, with all but 90 days suspended. Arellano will serve his time under home detention, followed by three years of supervised probation. He has already repaid the entire amount he stole as restitution before entering his plea.
“This case shows that we will prosecute employers when they steal wages from their employees, taking food off the table for Maryland families,” said Attorney General Brown. “Our Office will always fight for Maryland workers to get paid every dollar that they’ve earned.”
Arellano’s co-conspirator, Marquez Rivera, was sentenced in a related case in 2024.
The Attorney General’s Office is urging any employee who worked for Congratulations Construction Inc. on the previously mentioned University of Maryland projects to reach out to restitution@oag.state.md.us
to find out if they qualify for restitution.
For additional details or to report wage theft, residents of Maryland are advised to get in touch with the Office of the Attorney General or check their official website.
