Under the terms of the statute, to which the defendants pleaded guilty, 29 U.S.C. Section 666, both JUNGER and ACOSTA face up to six months imprisonment and a maximum fine of $250,000. In addition, pursuant to his plea agreement with the government, JUNGER has agreed to pay a $100,000 penalty to settle OSHA citations issued in connection with the South 8th Street building collapse.

The government�s investigation began following the April 30th collapse of the two-story warehouse in Brooklyn. JUNGER�s company, MRI, was hired to demolish the building to make way for new construction. On April 30, 2001, workers for MRI, with JUNGER�s knowledge and approval, drove a 24,000 pound material handler, similar to a large forklift, up a ramp to the second floor of the building to be used in the removal of a number of 5,000 pound steel beams. While removing one beam, a section of the cement floor beneath the material handler collapsed, causing the beam to fall on top of a worker, Rogelio Villanueva-Daza. Villanueva-Daza died after being removed to Woodhull Hospital in Brooklyn.

The government�s investigation disclosed that an OSHA inspection at the site had been conducted by an OSHA compliance officer on March 7, 2001, prior to MRI�s being hired to oversee the demolition. At that time the compliance officer instructed the general contractor that demolition work could not proceed until he, or a demolition subcontractor, obtained an engineering survey to determine whether the building had the strength and structural integrity to support the workers and any mechanical equipment they planned to use. Shortly thereafter, MRI was hired to handle the demolition at the South 8th Street site, and JUNGER was advised by the general contractor that he had to obtain an engineering survey before beginning demolition. However, JUNGER authorized the demolition to proceed without obtaining an engineering survey.

ACOSTA was JUNGER�s foreman at the time of the building collapse. Like JUNGER, he was aware that OSHA had required that an engineering survey be completed before demolition commenced. Following the building collapse and the death of Villanueva-Daza, ACOSTA lied to an OSHA compliance officer who questioned him about the circumstances surrounding the collapse, stating that he did not know that OSHA had required an engineering survey.

In announcing these guilty pleas, MR. VINEGRAD stated: �These prosecutions reflect our commitment to holding those who willfully violate OSHA regulations, or lie to OSHA investigators, criminally responsible for their actions, to the maximum extent allowed by law. I am hopeful that these two criminal convictions will deter future violations of this sort as well as provide some measure of justice to the family of Rogelio Villanueva-Daza, the victim of the 102-04 8th Street building collapse.�

Assistant Secretary of Labor HENSHAW stated: �This needless tragedy could have been prevented had the defendants met the obligations under the OSHA act. Our deepest sympathies go out to Mr. Villanueva-Daza�s family for their loss. Although we cannot bring him back, we hope that bringing these defendants to justice will help prevent other such terrible accidents in the future.�

Mr. HEDDELL stated: �Lying to Labor Department officials, especially in serious matters such as the investigation of a workplace fatality, is intolerable and is the type of offense we will vigorously pursue. I applaud the cooperative effort displayed between our New York regional office and the other agencies involved, particularly with the Occupational Safety and Health Administration, which was instrumental in this investigation.�

JUNGER�S sentencing has been scheduled for April 17, 2002. ACOSTA�s sentencing has been scheduled for April 15, 2002.

The government�s case is being prosecuted by Assistant U.S. Attorney Richard T. Faughnan.