New York, Aug 11 (IANS): An Indian-American former president of a construction company has been indicted in a $1.9 million union fraud scheme in which his workers were under paid and for making false statements in documents.

Yashvant C. Patel, while serving as president of My Baps Construction Corp -- a Southwest Side construction company - paid less than union scale wages to his workers to defraud the benefit funds of the employees' labour union by reducing the employer contribution, a report in The Voice Online said on Tuesday.

Patel, 59, was arrested last week and has been charged with four counts each of mail fraud and making false statements in company documents.

"Patel falsely reported that My Baps and a sister company, Vijay Construction Corp, owed approximately $600,000 less to the benefit funds of the Construction and General Labourers' District Council of Chicago and Vicinity," the indictment stated.

The indictment also stated that the companies owed approximately $1.3 million less to the companies' employees than what was required by collective-bargaining agreements with the union. Patel under-reported about 33,000 hours of work performed by his employees, the report added.

Each count of mail fraud carries a maximum sentence of 20 years in prison, a $250,000 fine and mandatory restitution while each count of making false statements in documents carries a maximum sentence of five years in prison, a $250,000 fine, and mandatory restitution, the report said.

From January 2009 through October 2010, Patel controlled the daily operations and finances of My Baps and Vijay, both of which operated as concrete and asphalt contractors.