A New Jersey man and two accomplices were criminally charged for allegedly running a tobacco-processing operation in Brooklyn, which prosecutors claim systematically exploited immigrant workers.
The serious allegations surfaced in a 74-count indictment announced by Brooklyn District Attorney Eric Gonzalez, targeting HotHead Grabba LLC, its owner Hunter Segree, and two associates.
They are accused of withholding hundreds of thousands of dollars in wages from around 25 workers, mainly middle-aged mothers from Ecuador, who were engaged in unsafe working conditions.
These allegations detail that the workers labored under conditions likened to sweatshops, stripping tobacco by hand for hours on end—12 or more hours a day, six or seven days a week.
The alleged unpaid wages amount to $310,000 that the workers were owed between October 2022 and July 2024.
The investigation into this unlawful operation was led by the Brooklyn district attorney’s fraud bureau, supported by the state Department of Labor, the Workers Compensation Board, and the Inspector General’s office.
In a statement, Gonzalez emphasized the importance of holding employers accountable for exploiting workers, asserting, “We allege that these defendants operated a business that profited by systematically underpaying their employees, denying them basic protections, and exposing them to hazardous and degrading conditions.”
Gonzalez warned that such exploitation would not be tolerated in Brooklyn and promised to continue holding unscrupulous employers accountable.
Segree, along with his associates Isayed Rojas and Joshua Howard, faced arraignment in Kings County Supreme Court.
The trio all pleaded not guilty to charges including grand larceny, falsifying business records, and violations of state labor laws, among others, and were released without bail.
They have another court appearance scheduled for August 13 and were ordered to surrender their passports due to concerns about possible flight risks, with prosecutors indicating they may have “considerable assets.”
The public first learned of HotHead Grabba’s questionable practices in a February 2024 expose by THE CITY.
Four workers reported their disturbing experiences at a HotHead Grabba facility in Cypress Hills, describing health problems stemming from extended shifts stripping tobacco in an enclosed environment.
These health issues included dizziness, fainting, fatigue, and nausea.
The women also voiced concerns about their supervisors threatening to report them to immigration authorities when they inquired about their unpaid wages.
The four employees collectively filed complaints with the state Department of Labor, claiming a total of $65,000 in unpaid wages and overtime rights.
This case has drawn attention from various investigative bodies, including local, state, and federal organizations, following whistleblower reports.
Last September, the U.S. Occupational Safety and Health Administration (OSHA) proposed over $91,000 in fines against HotHead Grabba as part of an ongoing investigation into labor practices at their facilities.
Moreover, HotHead Grabba also faced scrutiny from the state Workers Compensation Board and federal labor organizations connected to operations at Cypress Hills.
In March, the state issued a temporary stop-work order due to a lack of workers’ compensation insurance, prompting HotHead to relocate its operations to a different site in Springfield Gardens, Queens.
In September, the National Labor Relations Board intervened, ordering the company to cease threatening employees with termination for filing complaints about unpaid wages and reinstating a worker who had voiced concerns.
The multitude of allegations highlights a troubling trend in labor exploitation, particularly among vulnerable immigrant communities, as more investigations reveal the rampant issues within industries such as tobacco processing.
As the case unfolds, the focus remains on seeking justice for the workers affected by these alleged exploitations and ensuring accountability for those who fail to uphold labor laws.
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