Illegals hiring case cites 1920 sea law


December 27, 2007


By Jim McElhatton - The enforcement of a little-known federal law requiring 75 percent of workers on fishing boats to be U.S. citizens is at the center of a scandal that could cost a Newport News-based company millions of dollars and a Coast Guardsman his freedom.

Federal authorities are seeking more than $6 million from Peabody Corp. for purportedly hiring at least 126 illegal aliens during more than 300 fishing trips since at least 2003.

Court records say the company violated a provision of the Merchant Marine Act of 1920, commonly called the Jones Act, that requires an unlicensed seaman to be a U.S. citizen or an "alien lawfully admitted to the United States for permanent residence."

The so-called "75-25 rule" says no more than 25 percent of the unlicensed crew can be "aliens lawfully admitted to the United States for permanent residence."

Federal authorities have filed a separate case against Coast Guard Chief Petty Officer Morris Wade Hughes.

Chief Petty Officer Hughes is accused of having a "relationship" with an unnamed executive of a fishing company and "counseling" her on circumventing the rule by hiring crews of illegal aliens.

Court records say Chief Petty Officer Hughes, of Chesapeake, was "disgruntled" because of his superior's enforcement of the rule. The Daily Press in Newport News has reported that Chief Petty Officer Hughes is a boatswain's mate.

"U.S. citizens don't need ID on commercial fishing vessels, so tell your boys not to take IDs," Chief Petty Officer Hughes, 50, is quoted as telling the woman, according to documents filed by the U.S. attorney's office.

Chief Petty Officer Hughes remains free pending trial. His attorney could not be reached for comment.

Peabody's president, William Peabody, 63, and vice president, Yvonne Michelle Peabody, 35, have pleaded guilty in federal court in Norfolk and agreed to turn over $6.2 million in "illegal profits." A federal judge has not accepted the agreement.

According to court records in both cases, federal authorities accuse Chief Petty Officer Hughes of giving confidential information to Miss Peabody.

Prosecutors say the company employed 126 illegal aliens on 332 commercial fishing trips from 2003 to 2006, hauling in a catches that yielded nearly $7 million in profits.

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