You should contact the NYS Dept of Labor about not being paid. They will try to get the money for you. My experience is that small cleaning companies are hard to sue. They disappear easily and usually hard to locate.
The EEOC has stated that it considers it to be discriminatory for an employer to base an adverse change in working conditions, including termintation, on an arrest, if the person is a minority employee. Contact the union asap.
It sounds like you are the one asking to be paid on the books, and your boss is refusing. So, I do not think that will be a problem for you if you decide to sue. It will be a problem for the company. Also, you are probably entitled to unemployment benefits if you quit, even if you are off the books. In any event, you should consult an attorney to discuss your rights and options before you decide what to do.
My experience is that the employer wants you to sign as much as or more than you may want to. If you say you need time to show it to an attorney, chances are they will wait. If they refuse, I strongly caution you against signing any legal document without having an attorney look it over first.
For mental anguish and humiliation, the NYC Commission on Human Rights tends to give awards in the low 5 figures. The NYS Division of Human Rights is more like low to mid-five figures. If you are in court, you may see mid to high 5 figures.
If you have tenant's insurance it will cover these losses regardless of what caused it. In order to get paid from your landlord's inurance policy, your attorney will need to prove that the landlord was negligent. The sooner you retain a lawyer, the better your chances. Good luck.