Design and Construction Report staff writer
A Bronx-based masonry subcontractor is at the center of a federal investigation into an alleged multimillion-dollar payroll and tax fraud scheme affecting public construction projects in New York and surrounding states.
Nigel Kenneth Joseph, 45, founder of BWK, was arrested this week and charged in a 14-count federal complaint that includes payroll tax evasion, wire fraud, and aggravated identity theft. Prosecutors allege Joseph failed to pay more than $3.6 million in payroll taxes and fraudulently obtained nearly $2 million on public construction contracts by falsifying certified payroll records.
According to the U.S. Attorney’s Office for the Southern District of New York, Joseph operated BWK from 2019 to 2021 as a subcontractor on projects in New York, New Jersey, and Connecticut, earning at least $10 million during that period.
Despite these revenues, authorities say he refused to collect and remit required payroll taxes on behalf of his workers and instead used the company’s funds to finance personal expenses, including luxury vehicles, NBA courtside tickets, and international travel.
“As alleged, Nigel Joseph didn’t just shortchange his workers—he lied about it, falsified records, and pocketed the money for himself,” said U.S. Attorney Jay Clayton. “Then he allegedly defrauded the public by ducking millions in taxes.
“That’s not entrepreneurship that fuels growth—it’s fraud that erodes trust.”
In addition to the alleged tax evasion, Joseph is accused of conspiring with others to create falsified certified payroll documents to secure about $1.96 million in payments on at least two school construction projects on Long Island.
The falsified records reportedly included fake names, inflated hours, and nonexistent tax withholdings. Among the fraudulent entries were listings of Joseph himself as a foreman, his wife as a laborer, and employees who had not worked on the sites in question.
Communications obtained by investigators suggest Joseph was aware of the risks. In one 2022 message, he wrote, “Damn… I’m thinking I should not have put everyone working 35 hours every week.” In another exchange, he indicated plans to stop working with an accountant and instead “fake it until we make it.”
Joseph faces 11 counts of failing to pay payroll taxes—each carrying a maximum sentence of five years—along with conspiracy and wire fraud charges (up to 20 years each), and one count of aggravated identity theft, which carries a mandatory two-year sentence.
The case is being prosecuted by the U.S. Attorney’s General Crimes Unit and investigated by the IRS-Criminal Investigation division.
All charges remain allegations, and Joseph is presumed innocent unless and until proven guilty in court.
