Thread: IFCO $20.7 million settlement for hiring illegal aliens

I.C.E. News Release

December 19, 2008

IFCO Systems enters into record $20.7 million settlement of claims related to employment of illegal aliens


ALBANY, NY - After one of the largest worksite enforcement operations conducted by U.S. Immigration and Customs Enforcement, IFCO headquartered in Houston, Texas has agreed to pay $20.7 million dollars in civil forfeitures and penalties over four years, for employing illegal alien workers at its plants. John P. Torres, Acting Assistant Secretary of Homeland Security for U.S. Immigration and Customs Enforcement (ICE); Andrew T. Baxter, Acting U.S. Attorney for the Northern District of New York; and Superintendent Harry J. Corbitt, New York State Police, made the announcement today.

IFCO Systems North America ("IFCO"). IFCO, headquartered in Houston, Texas, is the largest
pallet management services company in the United States. The settlement amount includes $2.6 million dollars in back pay and penalties relating to IFCO's overtime violations with respect to 1,700 of its pallet workers. IFCO is also paying $18.1 million in civil forfeitures that will be available to support future law enforcement activities. If IFCO fully complies with the terms of the settlement agreement, the United States Attorney for the Northern District of New York agrees not to pursue corporate criminal charges against IFCO for the conduct of its employees in hiring illegal alien workers at IFCO pallet plants prior to April 19, 2006. The government began its investigation of IFCO following a tip to ICE in February 2005, that illegal alien laborers at the Albany IFCO plant were observed ripping up their W-2 forms. On April 19, 2006, ICE agents, in concert with other federal and state authorities, conducted a work site enforcement action at over 40 IFCO pallet plants in 26 states, which resulted in the detention of 1,182 illegal aliens working at those plants. The United States Attorney's Office has prosecuted several IFCO managers and employees for criminal offenses associated with the employment of illegal alien workers at IFCO pallet plants. To date, nine IFCO managers and employees have entered pleas of guilty related to such criminal conduct. Four managers are currently pending trial on a felony indictment in U.S. District Court in the Northern District of New York1 and the investigation of IFCO employees is continuing. The IFCO settlement agreement concerns only the liability of the corporation and does not address any pending or possible future criminal charges against individual employees.

The government's investigation documented that several IFCO managers and employees harbored and transported illegal aliens, and encouraged and induced them to remain in the United States as pallet workers. An analysis of the payroll information IFCO submitted to the Internal Revenue Service ("IRS") and the Social Security Administration ("SSA"), and the hiring patterns and practices at IFCO, suggests that during the time period from 2003 through April 2006, as many as 6,000 illegal aliens worked at IFCO pallet plants.

IFCO received repeated notice from the SSA and others, dating back to at least the year 2000, of the irregularities in the social security numbers used for employment purposes by many of its pallet workers. IFCO, its managers and employees, failed to take significant measures to verify the social security numbers of these workers, and in 2004 and 2005, failed to make any effort to address the use of invalid social security numbers by numerous pallet employees. Investigative entities further concluded that, at 30 of IFCO's pallet plants, back wages were due, under the Fair Labor Standards Act, to piece-wage pallet workers - the vast majority of whom were illegal aliens. Under the settlement agreement, IFCO acknowledges and accepts responsibility for the unlawful conduct of its managers and employees, as described in the agreement. The company further agrees to cooperate fully and actively with the U.S. Attorney's Office and the government entities involved in the investigation, as it has done since the date of the work site enforcement action. The agreement further includes a precedent-setting, compliance and reporting program, designed to prevent the employment of illegal aliens at IFCO plants in the future. The company will take remedial actions in hiring, such as use of DHS's "E-Verify" screening program for all new hires, and will verify the social security numbers of all IFCO employees through SSA.

IFCO is also required to maintain an employee hotline to receive reports of any suspected violation of law at the company. The agreement runs through the year 2012, at which time, if the company has been in full compliance with all of the agreement's terms and conditions, the United States Attorney's Office will not seek to prosecute the company for any criminal charges related to the conduct of its employees prior to April 2006.

"Today's announcement that IFCO Systems North America will pay the largest settlement amount ever in a work site enforcement case and the fact that nine IFCO managers have admitted their guilt related to the employment of illegal aliens will send a powerful message that ICE will investigate and bring to justice companies which hire illegal workers," said John P. Torres, Acting Assistant Secretary of Homeland Security for ICE. "Companies who break the law by employing illegal aliens often exploit them and gain an unfair competitive advantage in the marketplace. By hiring illegal workers, these companies are unjustly able to undercut their law-a-biding competition."

Andrew T. Baxter, Acting United States Attorney stated, "This settlement accomplishes the government's objective of deterring employers who might seek to subvert the immigration laws of this country. The Agreement severely punishes IFCO for its serious immigration and employment violations; but it also allows the corporation to continue its operations, so that its lawful employees and innocent shareholders do not suffer the consequences of a business failure in this economy. It is our hope that the compliance and reporting requirements under the agreement will serve as a model for other businesses."

New York State Police Superintendent Harry J. Corbitt said, "The New York State Police commends all of the investigative agencies for their hard work in investigating IFCO Systems and prosecuting the individuals who engaged in illegal immigration and employment-related conduct. This agreement sends a strong message to corporations that exploitive and illegal business practices for the sole purpose of their own financial gain will not be tolerated." Acting U.S. Attorney Baxter expressed his appreciation to the New York State Police for their invaluable assistance in this nation-wide investigation.

The IFCO managers who previously entered guilty pleas, and the respective charges to which they pled guilty, are as follows:

Robert Belvin, of Stuart, FL (former General Manager, Albany IFCO plant): Conspiracy to Transport and Harbor Illegal Aliens and Conspiracy to Possess Identification Documents with the Intent to Use Unlawfully (felonies);
James Rice, of Houston, TX (former corporate New Market Development Manager): Conspiracy to Transport and Harbor Illegal Aliens (felony);
Steven Means, of Cincinnati, OH (former corporate New Market Development Manager): Conspiracy to Unlawfully Employ Illegal Aliens (misdemeanor);
Bryan Baily, of Nashville, TN (former corporate New Market Development Manager): Conspiracy to Unlawfully Employ Illegal Aliens (misdemeanor);
Abelino "Lino" Chicas, of Houston, TX (former Systems Manager): Aiding and Abetting the Transportation and Harboring of Illegal Aliens (felony);
Michael Ames, of Shrewsbury, MA (former General Manager, Westborough, MA IFCO plant): Unlawful Employment of Illegal Aliens (misdemeanor);
Craig Losurdo, of Arlington, TN (former Assistant General Manager, Albany IFCO plant): Unlawful Employment of Illegal Aliens (misdemeanor);
Dario Salzano, of Amsterdam, NY (former Assistant General Manager, Albany IFCO plant): Unlawful Employment of Illegal Aliens (misdemeanor);
Scott Dodge, of Elmira, NY (former Assistant General Manager, Albany IFCO plant): Conspiracy to Unlawfully Employ Illegal Aliens (misdemeanor).
The IFCO managers who are indicted on felony charges and pending trial are:

Charles Davidson, of San Antonio, TX (current Vice President - New Market Development; formerly, Director, New Market Development);
William Hoskins, of Cincinnati, OH (New Market Development Manager);
Thomas Soto Castillo, of Cincinnati, OH (Foreman, Cincinnati; operations manager for New Market Development);
Wendy Mudra, of Tampa, FL (Human Resources Manager).
The government's investigation of the involvement of certain IFCO's managers and employees in the hiring of illegal aliens and related conduct is continuing. The investigation is being conducted by ICE; the New York State Police, Special Investigation Unit; SSA, Office of Inspector General; IRS, Criminal Investigation; and the U.S.Department of Labor, Wage and Hour Division. The Guilderland Town Police Department and Schenectady Police Department also provided assistance during the investigation. The prosecution is being handled by Assistant United States Attorney, Tina E. Sciocchetti.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

Last Modified: Friday, December 19, 2008
U.S. Department of Homeland

http://www.ice.gov/pi/nr/0812/081219albany.htm

Good! It would have cost them less if they had hired legal immigrants and US citizens for those jobs. Wonder what they think about "cheap" labor now?

$20.7 MILLION fine and FELONY charges for the company employees should get the attention of a few companies who hire illegal aliens.

Walmart got hit with an 11 Million settlement and at the time it was the largest every won. These guys got hit hard.

Dixie

This is great news! I am glad that they published all the names of the traitors. I hope they all lose their jobs so they can feel what its like for Americans to try to find a decent job without competing with cheap foreign labor.

Originally Posted by miguelina

Good! It would have cost them less if they had hired legal immigrants and US citizens for those jobs. Wonder what they think about "cheap" labor now?

I bet they don't think it's half as funny as I do!

Recycling company to pay $21M in immigration case
By RICHARD RICHTMYER , Associated Press

December 19, 2008

ALBANY, N.Y. - A wood pallet recycling company caught in a national crackdown on hiring illegal immigrants has agreed to pay a record sum of almost $21 million to settle charges lodged by federal prosecutors in upstate New York.

Several senior managers of IFCO Systems North America had previously pleaded guilty to misdemeanor and felony immigration charges since authorities conducted a 26-state roundup of nearly 1,200 foreign workers two years ago. A plant in Minneapolis was among those raided.

Now prosecutors say they'll drop charges against the company as part of the settlement announced Friday, which includes IFCO taking responsibility for the illegal hiring.

"The agreement severely punishes IFCO for its serious immigration and employment violations, but it also allows the corporation to continue its operations, so that its lawful employees and innocent shareholders do not suffer the consequences of a business failure in this difficult economy," said Andrew Baxter, acting U.S. Attorney for the Northern District of New York.

The government's settlement with IFCO is the largest ever with a corporation charged with employing illegal immigrants, almost doubling the $11 million Wal-Mart agreed to pay in 2005 to settle allegations it used hundreds of illegal immigrants to clean its stores, said John Torres, acting Assistant Secretary of Homeland Security for Immigrations and Customs Enforcement.

The Houston-based subsidiary of the Dutch company IFCO Systems describes itself as the leading company in America servicing wooden pallets used in shipping and storage.

The investigation began in February 2005 after a tipster called to report that illegal alien laborers at a plant in Guilderland, just outside Albany, were tearing up their W-2 tax forms, said Torres.

Coordinated raids at 40 IFCO plants a little more than a year later netted 1,182 illegal workers, most of them Mexican, Torres said. Investigators believe that as many as 6,000 illegal immigrants worked at IFCO plants between 2003 and 2006, though not all at the same time.

ICE agents arrested 30 workers at the company's Minneapolis plant, said Tim Counts, an ICE spokesman in Minnesota. Every employee working on the plant's floor was arrested, leaving only three managerial and administrative employees in the building, he said in an e-mail.

Under the settlement, IFCO agreed to make the payments in installments through 2012. It also agreed to cooperate with the government's continuing investigation and try to prevent hiring illegal workers at its plants in the future by verifying all employee Social Security numbers.

Dave Russell, IFCO Systems North America's president, said in a prepared statement that the company has already upgraded its employee screening procedures to go well beyond what the law requires.

"Today I am confident that IFCO is the most compliant company in the industry," Russell said.

If IFCO meets all the terms and conditions by 2012, the government has agreed not to pursue criminal charges against the company related to the conduct of its employees before April 2006.

Nine IFCO managers have already pleaded guilty to felony and misdemeanor criminal charges related to transporting and employing illegal aliens. Four more still face felony charges and might stand trial, prosecutors said.

http://www.startribune.com/nation/36467804.html

When I saw this in the Houston Chronicle, it brought a smile to my face...

LOVE it. So they bite the hands that gave them work and stole from American citizens. KARMA.

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http://www.alipac.us/article3839.html