Kenner Woman and Construction Company Plead Guilty to Labor Violations and False Statements

U.S. Attorney Kenneth A. Polite announced that KATIA MURILLO COSTA, age 42, of Kenner, pled guilty today to violating provisions of the Fair Labor Standards Act.  Her company, KLV OPERATIONS LLC (“KLV”), also pled guilty to violating the Fair Labor Standards Act and to having representatives make false statements to federal agents.

According to court documents, in November 2013, the U.S. Department of Labor (“DOL”), a department or agency of the United States, began investigating whether KLV was paying its employees proper overtime and minimum wage pay in compliance with the Fair Labor Standards Act. The investigation disclosed that the defendants, KLV and COSTA, failed to pay 47 employees overtime and minimum wage. In addition, representatives of KLV submitted materially false and fraudulent payroll and timesheet records to the DOL, in an effort to make representatives of the DOL believe that KLV was complying with the Fair Labor Standards Act.

COSTA faces a possible penalty of up to six months imprisonment, a fine of up to $10,000, restitution in the amount of approximately $58,679.71, and a special assessment of $25. KLV faces a possible fine of up to $500,000, restitution of approximately $58,679.71, and a special assessment of $400.  U.S. District Judge Jane Triche Milazzo set sentencing for June 9, 2016.

U.S. Attorney Polite praised the work of Investigators with the DOL, and Special Agents with the DOL, Office of Inspector General in investigating this matter.  Assistant U. S. Attorney Sharan E. Lieberman is in charge of the prosecution.