Thread: S.D. - Feds charge 9 with using undocumented workers

Published Thursday, September 27, 2012
The Associated Press

The U.S. Attorney of South Dakota has charged nine people who own and operate logging companies and a check cashing business in the Black Hills with employing undocumented workers in a bid to defraud the government.

The indictment against the nine individuals was unsealed Thursday. In it, federal prosecutors accuse the nine people of defrauding the federal government by bidding on U.S. Forest Service contracts with undocumented workers who earned less than fair wages.

The federal government says the nine individuals shared workers among several different logging companies and used a check cashing business to issue one check for several of the workers.

The defendants own or work at Munoz Logging and Construction, Black Hills Thinning, Escalante Logging, SM Logging and Benja's Mexican Store.

The Daily Republic | Mitchell, South Dakota

KRISTI EATON, Associated Press
Updated 8:08 p.m., Thursday, September 27, 2012

SIOUX FALLS, S.D. (AP) — Prosecutors have charged four people who own and operate logging companies in the Black Hills of South Dakota with defrauding the federal government by circumventing contract requirements and employing illegal immigrant workers, U.S. Attorney Brendan Johnson said Thursday.

A federal indictment unsealed Thursday afternoon accuses Angel Munoz-Escalante, who owns and operates Munoz Logging and Construction, Aurelio Munoz-Escalante, owner and operator of Black Hills Thinning, Rogelio Escalante, who owns and operates Escalante Logging, and Sergio Munoz-Escalante, owner and operator of SM Logging, with defrauding the United States and harboring illegal immigrants.

Also indicted for harboring illegal immigrants were Barbara Munoz, Christina Pourier, Mario Rangel and Miguel Soto, who all work at the companies, and Benjamin Munoz-Botello, who owns and operates Benja's Mexican Store, a grocery store and check cashing business.

Ace Crawford, a spokeswoman for the U.S. Attorney's Office, said seven of the nine were arrested Thursday and appeared in U.S. District Court for South Dakota in Rapid City to enter not guilty pleas.

Lawyers for eight of the defendants were either not listed on the indictment, were unavailable or would not comment. John Richard Murphy, the lawyer for Sergio Munoz-Escalante, said he was pleased the judge released his client on personal recognizance.

Since about January 2008, the four logging companies conspired to defraud the government by bidding on U.S. Forest Service contracts to thin timber using illegal immigrants, the indictment said. By using illegal immigrant workers who were paid less than the prevailing wage, the companies were able to successfully bid lower than other companies — sometimes by as much as hundreds of thousands of dollars.

By employing illegal immigrants "who are not paid fair wages, benefits, and overtime as prescribed by law and as outlined in the contract, they are able to secure profits even when submitting what are much lower bids," the indictment stated.

Prosecutors said each company would often bid on the same federal contract, and when it was awarded to one of the companies, workers for the other companies would assist in completing the work.

Munoz Logging would use one person's name and direct that person to break down the check for several of the workers. The checks were cashed at Benja's Mexican Store in Rapid City because the workers did not have valid documentation, the indictment said.

Since January 2009, 23 illegal immigrants working at the companies have been arrested or deported, the indictment said.

Johnson, the U.S. Attorney for South Dakota, said the indictment shows his office's commitment to enforcing the nation's immigration laws.

"This includes limiting the demand for undocumented workers by prosecuting employers who knowingly hire illegal workers," he said in a news release.

Special agents arrested 18 people for immigration violations during the course of the investigation, according to Shawn Neudauer, spokesman for U.S. Immigration and Customs Enforcement's Homeland Security Investigations. In addition to ICE, other federal and state law enforcement agencies involved in the investigation included the U.S. Forest Service, Rapid City Police Department and the Pennington County Sheriff's Office.

Conspiracy to defraud the U.S. carries a maximum sentence of five years in custody and a $250,000 fine. Conspiracy to harbor illegal immigrants and harboring illegal immigrants is punishable by a maximum of 10 years in custody and a $250,000 fine.

Feds charge 9 with using illegal workers - SFGate

I.C.E.News Release

September 27, 2012
Rapid City, SD

9 South Dakota residents indicted for conspiracy to defraud US, harboring aliens

RAPID CITY, S.D. — Nine people from Rapid City and the surrounding Black Hills community were indicted Thursday by a federal grand jury for conspiracy to harbor aliens and harboring aliens. Four of the nine individuals are charged with an additional count of conspiracy to defraud the United States.

The indictments resulted from a criminal investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), in partnership with the following agencies: U.S. Forest Service, Rapid City Police Department, Pennington County Sheriff's Office, South Dakota Division of Criminal Investigation, U.S. Marshals Service, U.S. Department of Agriculture's Office of the Inspector General, Custer County Police Department, U.S. Department of Labor and the South Dakota Highway Patrol.

"Today's law enforcement operation sends a strong message that HSI and our law enforcement partners are ever vigilant against those seeking to manipulate the system to gain an unfair advantage over their competitors," said Michael Feinberg, special agent in charge of HSI St. Paul, which covers South Dakota. "The combined resources of a joint federal, state and local law enforcement operation present a formidable obstacle to any criminal enterprise seeking to harm hard-working citizens and American business interests.

The following indictments have been handed down:

• Angel Munoz-Escalante, owner and operator of Munoz Logging and Construction Company, Rapid City, South Dakota – charged with one count of conspiracy to defraud the United States, one count of conspiracy to harbor aliens and one count of harboring aliens.
• Barbara Munoz, owner and operator of Munoz Logging and Construction Company – charged with one count of conspiracy to harbor aliens and one count of harboring aliens.
• Christina Pourier, bookkeeper of Munoz Logging and Construction Company – charged with one count of conspiracy to harbor aliens and one count of harboring aliens.
• Mario Rangel, manager for Munoz Logging and Construction Company – charged with one count of conspiracy to harbor aliens and one count of harboring aliens.
• Aurelio Munoz-Escalante, owner and operator of the Black Hills Thinning Company – charged with one count of conspiracy to defraud the United States, one count of conspiracy to harbor aliens and one count of harboring aliens.
• Miguel Soto, foreman for the Black Hills Thinning Company – charged with one count of conspiracy to harbor aliens and one count of harboring aliens.
• Rogelio Escalante, owner and operator of the Escalante Logging Company – charged with one count of conspiracy to defraud the United States, one count of conspiracy to harbor aliens and one count of harboring aliens.
• Sergio Munoz-Escalante, owner and operator of the SM Logging Company – charged with one count of conspiracy to defraud the United States, one count of conspiracy to harbor aliens and one count of harboring aliens.
• Benjamin Munoz-Botello, owner and operator of Benja's Mexican Store, a grocery and licensed money-transmitting and check-cashing business – charged with one count of conspiracy to harbor aliens and one count of harboring aliens.

Seven of those indicted were arrested Sept. 27.

"The United States Attorney's Office is committed to enforcing our nation's immigration laws. This includes limiting the demand for undocumented workers by prosecuting employers who knowingly hire illegal workers," said Johnson.

The alleged fraud is in connection with contracts entered into with the U.S. Forest Service. Conspiracy to defraud the United States is punishable by a maximum penalty of five years in prison, a $250,000 fine, or both; three years' supervised release (a violation of condition of release could result in two years' additional incarceration on any such violation); a $100 assessment fee; and restitution.

Conspiracy to harbor aliens and harboring aliens is punishable by a maximum of 10 years in prison, a $250,000 fine, or both; three years' supervised release (a violation of condition of release could result in two years' additional incarceration on any such violation); a $100 assessment fee; and restitution.

The charges contained in the indictment are merely accusations, and all of the individuals named in the indictment are presumed innocent unless and until they are proven guilty.

U.S. Immigration and Customs Enforcement (ICE) is the largest investigative arm of the Department of Homeland Security.

ICE is a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities. For more information, visit www.ICE.gov. To report suspicious activity, call 1-866-347-2423 or complete our tip form.

DHS.gov

9 South Dakota residents indicted for conspiracy to defraud US, harboring aliens

Every resident of South Dakota should see and know this so they can boycott these businesses. I'm sure they will stay in operation under other family members even if the owners are sitting in jail.

A federal indictment unsealed Thursday afternoon accuses Angel Munoz-Escalante, who owns and operates Munoz Logging and Construction, Aurelio Munoz-Escalante, owner and operator of Black Hills Thinning, Rogelio Escalante, who owns and operates Escalante Logging, and Sergio Munoz-Escalante, owner and operator of SM Logging, with defrauding the United States and harboring illegal immigrants.

Looks like this little family was raking it in using slave/illegal labor.