March 5, 2008

Five IFCO Managers Indicted on Federal Charges Stemming from Employing Illegal Aliens

Last Friday, almost 2 years after the Immigration and Custom Enforcement raids, a grand jury returned a six-count felony indictment against five current managers of the Pallet Management Division of IFCO Systems North America ("IFCO"). The indictment charges the defendants with engaging in a Conspiracy to Harbor Illegal Aliens, Abetting the Harboring of Illegal Aliens Encourage and Induce Illegal Aliens, and to Transport Illegal Aliens. Those included in the indictment are current employees including the Vice President-New Market Development, 2 Managers, a Forman and a Human Resources Manager.

The ICE press release states: "The indictment stems from a long-term investigation by ICE of illegal employment-related practices at IFCO plants nationwide. The investigation began in February 2005, when an employee of the IFCO plant in Albany, NY, called ICE to report that Hispanic workers at the plant were ripping up W-2 forms and a manager told him they were doing so because they were illegal aliens, had fake social security cards and did not intend to file their taxes."

The IFCO raids were the largest single worksite enforcement operation ever performed by the ICE in conjunction with the Internal Revenue Service, the Department of Labor, the Social Security Administration Inspector General, as well as state and local law enforcement agencies. "On April 19, 2006, agents arrested seven current and former managers and executed search warrants at 9 IFCO facilities. At the same time, a worksite enforcement action was conducted at over 40 IFCO plants nationally. ICE detained nearly 1,200 illegal aliens working at the plants at the time, the majority of the foreman and manual laborers present at the plants. Nearly all of the pallet workers and foremen ICE encountered at IFCO newest plants were illegal aliens - for example, 24 of 26 pallet workers in Albany, NY; 18 of 19 in Rittman, OH; 20 of 21 in Boston, MA; and all of the 27 pallet workers in St. Louis, MO; were illegal aliens. Seven IFCO managers pled guilty in 2007 to felony and misdemeanor charges related to the unlawful employment of illegal aliens and await sentencing on those charges" stated the ICE press release.

These criminal conspiracy charges carry a penalty up to ten (10) years in prison and a fine of up to $250,000 per violation. However the aiding and abetting charge, carries a five-year maximum term of imprisonment. GT will keep you apprised of any further developments.