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December 23, 2008
IFCO SYSTEMS TO PAY $20.7 MILLION IN SETTLEMENT CLAIMSIFCO, the
largest pallet management services company in the U.S, has agreed to pay
$20.7 million dollars in civil forfeitures and penalties for employing
illegal alien workers at its plants. This comes after one of the largest
worksite enforcement operations conducted by U.S. Immigration and
Customs Enforcement (ICE).
The settlement amount includes $2.6 million dollars in back pay and
penalties relating to overtime violations and $18.1 million in civil
forfeitures that will be available to support future law enforcement
activities. Other key points of the settlement include:
- If IFCO fully complies with the settlement agreement (runs
through 2012), the U.S. Attorney will not 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.
- IFCO acknowledges and accepts responsibility for the unlawful
conduct of its managers and employees, as described in the
agreement.
- IFCO agrees to cooperate fully and actively with the U.S.
Attorney's Office and the government entities involved in the
investigation.
- A compliance and reporting program, designed to prevent the
employment of illegal aliens at IFCO plants in the future.
- IFCO is required to maintain an employee hotline to receive
reports of any suspected violation of law at the company.
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 IFCO managers and employees harbored and transported
illegal aliens, and encouraged and induced them to remain in the United
States as pallet workers. Analysis of company records suggest that
during the time period from 2003 through April 2006, as many as 6,000
illegal aliens worked at IFCO pallet plants. 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.
See Full Story at
http://www.ice.gov/pi/nr/0812/081219albany.htm.
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