FOR IMMEDIATE RELEASE
Wednesday, June 4, 2025
Owner and Managers of Tobacco Processing Company Indicted for
Wage Theft for Allegedly Stealing Approximately $310,000 From
More Than Two Dozen Employees
Defendants Allegedly Routinely Underpaid Workers, Failed to Pay Wages and Subjected Employees to Unsafe Working Conditions in Brooklyn Sweatshop
Brooklyn District Attorney Eric Gonzalez, together with New York State Department of Labor Commissioner Roberta Reardon, New York State Workers’ Compensation Board Chair Clarissa M. Rodriguez, and New York State Inspector General Lucy Lang, today announced that the owner of Hothead Grabba, LLC, two managers and the company itself have been arraigned on a 74-count indictment in which they are variously charged with grand larceny, conspiracy, and related charges for allegedly withholding wages and violating New York State labor laws. More than two dozen employees who processed tobacco at the Cypress Hills plant were allegedly cheated out of more than $310,000 in wages.
District Attorney Gonzalez said, “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. These serious charges send a strong message that this kind of exploitation will not be tolerated in Brooklyn, and we will continue to use every available tool to hold unscrupulous employers accountable and seek restitution for workers. I thank our prosecutors and our enforcement partners for their work on this case.”
NYS DOL Commissioner Reardon said, “New York State has zero tolerance for anyone who cheats their workers out of hard-earned pay or forces them to work in dangerous and illegal conditions. I am proud of the New York State Department of Labor’s continued partnership with the Kings County District Attorney’s Office. Armed with expanded enforcement powers provided by Gov. Hochul’s 2026 budget, we will continue to fight worker exploitation in all its forms and put money back in the pockets of workers.”
NYS Workers’ Compensation Board Chair Rodriguez said, “The Board applauds the work of its task force members and all of the agencies that played a role in this investigation. Holding bad actors accountable underscores New York’s dedication to keeping workers safe and promoting compliance with the law.”
NYS Inspector General Lang said, “The exploitation of vulnerable workers through wage theft and unsafe labor conditions is both unconscionable and illegal. Every worker in New York deserves fair pay and a safe workplace, and in collaboration with our partners across federal, state, and local agencies, my office will continue working to ensure those rights are protected.”
The District Attorney identified the defendants as Hunter Segree, 28, of New Jersey; Isayed Rojas, 30, of Staten Island; Joshua Howard, 30, of Queens, and Hothead Grabba, LLC. They were arraigned today by Brooklyn Supreme Court Justice Danny Chun on a 74-count indictment in which they are variously charged with second-, third- and fourth-degree grand larceny, fourth-degree conspiracy, petit larceny, first-degree offering a false instrument for filing, first-degree scheme to defraud, first-degree falsifying business records, violation of Section 52 of the NYS Workers’ Compensation Law, second-degree reckless endangerment, Labor Law section 198-A (1) and Labor Law section 662 (1). They were released without bail and ordered to return to court on August 13, 2025.
The District Attorney said that, according to the investigation, Hothead Grabba, LLC, is a company that produces and sells “grabba,” which is ground up tobacco that may be added to marijuana. Hothead Grabba processed tobacco leaves for that purpose at a factory located at 234 Chestnut Street in Cypress Hills, Brooklyn until March 26, 2024. On that date, a task force which included members from the New York State Department of Labor, the New York State Workers’ Compensation Board, and the New York State Inspector General’s Office, conducted a civil enforcement sweep at that location and the New York State Workers’ Compensation Board issued a stop work order for failure to maintain workers’ compensation insurance.
The closure of the Brooklyn location caused Hothead Grabba to move to a worksite in Queens where it continued to pay its employees by the pound, in violation of the minimum wage law. It sold the product to convenience stores and other retailers.
Many Hothead Grabba employees allegedly worked approximately 12 hours a day, six or seven days a week, cleaning and separating tobacco leaves from their stems, according to the investigation, and were paid according to the quantity of pounds they processed, and not on an hourly basis. It is alleged that the workers, mostly women, were paid approximately $7 a pound for processing approximately 15 pounds of the leaves per day. Because the work was so time consuming, their payment for the pounds of tobacco they processed equated to a rate which was far lower than that provided by the applicable minimum wage and overtime laws and regulations.
Furthermore, it is alleged, the defendants failed to pay the employees on a timely basis, sometimes failing to pay them at all for weeks at a time.
Additionally, it is alleged, the workers were made to work with no official lunch or other breaks, in a room with no windows or ventilation, and generally with no protective equipment, despite the negative health effects tobacco processing can have. Furthermore, there was only one exit at the factory, which was allegedly frequently obstructed by tobacco and other materials, and no signs marking that exit, if an emergency required the workers to evacuate the location.
The indictment alleges the defendants withheld approximately $310,000 from a total of 25 employees between October 31, 2022 and July 15, 2024.
NYSDOL Chief Labor Standards Investigator Frank King and Senior Labor Standards Investigator Jorge Gordillo Alvarado and NYS Workers’ Compensation Board Senior Investigator Aleksandra Boyko assisted in the investigation.
The District Attorney thanked KCDA Intelligence Analyst Yacelys Corona, Financial Analyst Veronica Beltran, and KCDA Detective Investigators for their work on the case.
The case is being prosecuted by Assistant District Attorney Frank Longobardi, Chief of the District Attorney’s Construction Crimes and Labor Fraud Unit, and Senior Assistant District Attorney Sergey Marts of the Investigations Division, under the supervision of Assistant District Attorney Gregory Pavlides, Chief of the Frauds Bureau, and Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division, and the overall supervision of Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.
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An indictment is an accusatory instrument and not proof of a defendant’s guilt