http://news.bostonherald.com/immigratio ... eid=144997

Reilly under fire as tax losses rise
By Casey Ross
Boston Herald Reporter

Thursday, June 22, 2006 - Updated: 11:05 AM EST

The housing construction industry’s widescale use of illegal aliens, despite a crackdown by state and federal officials, is depriving the state of untold millions in lost tax revenue.

The issue has put attorney general and Democratic gubernatorial candidate Tom Reilly in the crosshairs of a raging national debate. Reilly says immigration issues are not his responsibility, but industry officials say fraud and wage violations are happening on his watch.

“There is no excuse for employers engaging in these practices,” said Mark Erlich of the New England Regional Council of Carpenters. His union, battling to get more work for its members, is among the groups that routinely refer cases and lobby Reilly’s office for enforcement. A top investigator in Reilly’s office said he hasn’t shied away from workplace enforcement, recovering $2.3 million last year in unpaid wages. It is unclear how much of that is for illegal immigrants stiffed by unscrupulous employers.

Rick Grundy of the AG’s business and labor bureau said, “We have to prove cases based on documents, and that leads understandbly to frustration because out on these sites it seems pretty apparent what’s going on.”

Many of the construction sites where the Herald found illegal immigrants working were in plain view of major highways. The blatant hiring has increased pressure on authorities who say lack of a crackdown is due to the magnitude of the problem, and the difficulty of bringing prosecutions against companies schooled in skirting the laws.

Immigration and Customs Enforcement is increasing its attention to the issue after fines against employers dropped to three in 2004 from 417 in 1999, ICE spokesman Mike Gilhooly said. “We want folks to know . . . we do not have any tolerance for employers who basically perpetuate a shadow economy.” He said the agency has logged 382 criminal arrests on work sites in 2006.