Honesdale police gets $250,000 for Wal Mart raid

[Brian503a]

http://www.zwire.com/site/news.cfm?news ... 5154&rfi=6

08/15/2006
Honesdale police gets $250,000 windfall for its part in illegal labor probe
BY MICHAEL RACE
HARRISBURG BUREAU CHIEF


HARRISBURG — When the Honesdale Police Department responded to a burglary call in 1998, Police Chief Mark Flynn had no idea it would lead to a national probe of illegal labor and net his department a $250,000 windfall.

“Never could have imagined this,” he said Monday as he held a mock check for $253,632.52. “We’re the big winners here.”

The money was given to the Honesdale Police Department by the federal government as part of a $15 million settlement with Wal-Mart and several cleaning contractors who serviced the mega-retailer from 1998 through 2003.

Last year, Wal-Mart agreed to pay $11 million to settle federal allegations it used about 245 illegal immigrants to clean some of its stores in at least 21 states, including Pennsylvania. A dozen cleaning companies hired by Wal-Mart agreed to pay another $4 million. None of the companies was required to admit any wrongdoing under the terms of the settlements.

While the bulk of the settlement cash — about $12.5 million — will go to the federal Treasury’s asset forfeiture fund, the feds determined the state’s Office of Attorney General and the Honesdale police should get a cut for their roles in the national probe.

“The asset sharing announced today reflects the indispensable roles of these state and local agencies in this investigation,” U.S. Attorney Thomas Marino said during a check-passing ceremony in Harrisburg.

“Without the work of the Honesdale Police Department and the Pennsylvania Attorney General’s Office, this case would not have moved forward,” said Julie Myers, an assistant secretary with U.S. Immigration and Customs Enforcement.

Flynn, who has led the 16-member police force since last year, barely recalls the incident that triggered the national investigation. He remembers it began with a residential burglary complaint in which the victim and the alleged burglar were illegal immigrants.

The department contacted federal immigration officials, who asked Honesdale police to keep tabs on the two and relay information about others who associated with them. Flynn said his department did its best to help out, and racked up about $1,500 in overtime costs in the process.

“Well, chief, just consider the rest of this quarter million dollars a tip,” Marino joked before the check was handed over to Flynn.

The money represents more than a third of the police department’s annual budget of about $740,000. Flynn said the department would put some of the cash aside for future expenses, but he also plans to spend some on upgrades of radios and other equipment. He said the money could not be used to reduce the department’s existing budget.

Myers said the distribution of the settlement money is based on a complex formula that takes into account how much manpower an agency expended and how significant it was to the overall investigation.

Flynn said his department has received some forfeited assets in the past for help in criminal probes, “but nothing close to this.”

mrace@timesshamrock.com

[Brian503a]

http://www.pennlive.com

WAYNE COUNTY
Wal-Mart case pays off for police, state
Tuesday, August 15, 2006
BY PETE SHELLEM
Of The Patriot-News
It started with what authorities said was a burglary involving two illegal immigrants in Honesdale and led to the largest settlement involving a company's alleged use of undocumented workers in U.S. history.

Yesterday, part of the proceeds of a $15 million settlement paid to the federal government in an investigation of Wal-Mart subcontractors was distributed to the law enforcement agencies. The probe of subcontractors that provided cleaning services using illegal workers led to arrests in 21 states.

U.S. Immigration and Customs Enforcement distributed more than $2.5 million to the tiny Honesdale Police Department in Wayne County and the state Attorney General's Office, which was investigating money laundering by the cleaning subcontractors when the federal agencies became involved.

The Honesdale Police Department received $253,633 and the Attorney General's Office received $2,254,511.

Honesdale Police Chief Mark Flynn said the investigation stemmed from a burglary in 1998. Because the victim and the perpetrator were both illegal aliens from Russia, his department alerted federal authorities. Honesdale also provided assistance as the case took on wider proportions.

Flynn joked that the payment was a good return on the $1,500 in overtime pay -- which put him over his budget -- during the investigation. He said the money will be invested in equipment and training.

State Attorney General Thomas Corbett said the money his office received would be put "in our piggy bank" and used to compensate for budgetary shortfalls in the future.

The money was presented at a news conference yesterday by Thomas A. Marino, U.S. Attorney for the Middle District of Pennsylvania, and Julie Myers, assistant secretary of the Department of Homeland Security U.S. Immigration and Customs Enforcement.

The investigation culminated on Oct. 23, 2003, when more than 300 law enforcement officials descended on 60 Wal-Mart stores in 21 states, including one in Harrisburg and one in York. Approximately 245 undocumented workers were arrested and sent to deportation proceedings.

Two years later, Wal-Mart agreed to pay an $11 million civil settlement to end the criminal investigation without admitting wrongdoing. In addition, charges were filed against 12 Missouri-based cleaning companies that hired the workers and paid another $4 million in fines.

Marino said the investigation should send a signal to companies considering cutting costs by hiring illegal immigrants. "The message is out there, if you hire illegal aliens, this group and others will be coming after you," he said. "The penalties are severe and we will enforce them."

PETE SHELLEM: 255-8156 or pshellem@patriot-news.com