Business Owner Sentenced for Illegal Alien Employment Ring

An Arkansas business owner was sentenced to 30 months in federal prison Monday, September 24, 2012, for providing counterfeit immigration documents and Social Security cards to illegal aliens and then employing them at various locations across three states. The sentence follows an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Valentin Gutierrez, 53, owner of Action Staffing and Action Labor Contractors in Arkansas, Mississippi and Alabama, was sentenced as a result of his May 10 guilty plea to one count of harboring and shielding illegal aliens for financial gain. In addition to the sentence Gutierrez was ordered to pay $10,000 in fines and to serve two years supervised release upon his release from prison.

HSI special agents received information in November 2008 that Gutierrez was employing illegal aliens and providing them with counterfeit work authorization documents. HSI subsequently arrested 13 foreign nationals associated with the scheme. Investigators also determined from financial records that Gutierrez made at least $6.4 million from May to December 2008 as a result of selling illegal alien labor to various companies. HSI seized Gutierrez's bank accounts and recovered approximately $117,000 in forfeited funds traced to harboring and shielding illegal aliens.

The FBI along with task force officers from the Rogers Police Department, the Washington County Sheriff's Office and the Springdale Police Department assisted with the case.

Scott Crawford, resident agent in charge of the HSI Fayetteville field office said this successful prosecution resulted from a coordinated effort of federal, state and local law enforcement agencies and this case illustrates the serious consequences of harboring and shielding illegal aliens.

"This case shows that individuals who violate immigration laws face significant penalties along with the forfeiture of proceeds gained as a result of their criminal activity," said Crawford. "This sentence serves as a stark reminder that employing illegal aliens or assisting others in doing so is a serious crime that carries serious penalties. Federal, state and local law enforcement partners work vigilantly each day and will continue to identify these criminals and ensure they face justice."

Two Illegal Aliens Sentenced for Extensive Immigration and Document Fraud Operation

Two Mexican nationals residing in Baltimore were sentenced to prison for conspiring to operate a document mill in Baltimore and selling thousands of fraudulent government identification documents manufactured as part of the conspiracy.

"Document fraud poses a severe threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States," said U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Baltimore Special Agent in Charge William Winter. "This investigation resulted in the dismantlement of a document fraud criminal organization based out of Maryland and the arrest of its leaders. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system."

Miguel Reyes-Ontiveros, 41, was sentenced by U.S. District Judge William D. Quarles Jr., July 19 to 57 months in prison followed by three years of supervised release. Adrian Badillo-Carrasco, aka "Rana," 36, was also sentenced by Judge Quarles July 17, to 33 months in prison followed by three years of supervised release. Both defendants are in the United States illegally and face deportation upon completing their sentence.

According to the plea agreements and other court documents, responsibility for manufacturing identity documents – including permanent resident cards and Social Security cards – rotated among various individuals. From June 2008 through May 2010, Ivan Altamirano-Perez, aka "Elmer," 32, and his brother, Roberto Morales-Perez, aka "Piza," 26, received the income from manufacturing the identity documents. Beginning in May 2010 and continuing until their arrests, the Perez brothers shared the territory and income with Miguel Reyes-Ontiveros (collectively, the operators). The location of the manufacturing operation changed frequently to avoid detection.

In addition to manufacturing the documents, the operators sold the documents themselves or helped collect orders from salesmen. The defendants used a group of at least 10 individuals, including Badillo-Carrasco, to sell and distribute the fake identity documents. The documents were offered for sale and distributed in and around the 200 block of South Broadway in Baltimore.

According to their plea agreements, Badillo-Carrasco and the other salesmen solicited individuals in the Broadway territory to purchase the fake identification documents, either in person or by distributing business cards. The salesman would negotiate a price with the buyer, usually between $130 and $160, and obtain a picture and the information which the buyer wanted on the identification card. The salesman would then call in the order to the operator who was working that week. The completed identity document would subsequently be provided to the salesman to be sold to the buyer.

The defendants manufactured and sold thousands of fraudulent identification documents for which they are alleged to have received approximately $1.68 million.

On Feb 15, a defendant in a related case, Victor Lopez Escamilla, was convicted by a jury of manufacturing and trafficking in counterfeit identity documents, Social Security cards, and immigration identity documents, and was sentenced to 97 months in prison.

All of the nine defendants involved in the conspiracy have pleaded guilty in this case, and the remaining seven defendants are awaiting sentencing. Each faces a maximum sentence of 15 years in prison for conspiracy to commit fraud and a maximum of 10 years in prison for fraud and misuse of immigration documents. In addition, the Perez brothers each face a maximum of five years in prison for Social Security fraud and Altamirano-Perez faces a maximum of 15 years in prison for identification document fraud. The defendants, all of whom are in the U.S. illegally, face deportation upon the completion of their sentences.

Anyone who has information on this type of fraud may contact ICE via its toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423).

The investigation was conducted by HSI Baltimore and the Social Security Administration, Office of Inspector General with the assistance of the U.S. State Department Diplomatic Security Service, Washington Field Office; the Maryland Motor Vehicle Administration, Investigation and Security Services Division and the Baltimore County Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Tamera L. Fine and Judson T. Mihok.

Chicago Man Sentenced for Employment Fraud, Immigration Fraud

A local man was sentenced Wednesday, May 16, to three years in federal prison for engaging in a fraud scheme that caused the Illinois Department of Employment Insurance (IDES) to pay about $480,000 in unemployment insurance payments to more than 55 ineligible claimants who were not legally allowed to work in the United States.

The sentence was announced by Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois; James Vanderberg, special agent in charge of the U.S. Department of Labor, Office of Inspector General in Chicago; Gary Hartwig, special agent in charge of U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Chicago; and Thomas P. Brady, inspector in charge of the U.S. Postal inspection Service in Chicago.

The defendant, Roberto Cisneros, pleaded guilty to mail fraud in January and was sentenced May 16 by U.S. District Judge Harry Leinenweber. Cisneros admitted that more than half of the fraudulently obtained proceeds, about $261,017, was deposited into bank accounts he controlled.

Cisneros, 34, who was in the country illegally when he was arrested in June 2011, has remained in federal custody and will be subject to deportation following completion of his sentence. He was ordered to pay restitution totaling $479,571 to IDES.

According to court documents, between 2006 and 2009 Cisneros accepted money to assist individuals whom he knew were ineligible for unemployment insurance payments by aiding a cohort in submitting fraudulent applications for benefits to an IDES employee for processing.

Unbeknownst to Cisneros, the individual to whom he provided the false applications had later begun cooperating with law enforcement. Cisneros knew that the claims he submitted and assisted in submitting for unemployment insurance were fraudulent because the claimants were not legally allowed to work in the United States due to their immigration status, making them ineligible to receive unemployment insurance payments.

Cisneros admitted assisting in obtaining unemployment insurance benefits on behalf of 57 individuals using Social Security numbers that did not match their names and/or dates of birth, numbers that were not issued by the Social Security Administration, or whose numbers matched their names but were not eligible to work in the United States.

Assistant U.S. Attorneys Halley B. Guren and Matthew Getter, Northern District of Illinois, prosecuted the case.

Virginia Animal Hospital Adds to Growing List of Businesses in ICE's IMAGE Program

A local animal hospital has become the latest Washington-area employer to join a U.S. Immigration and Customs Enforcement (ICE) program designed to strengthen hiring practices and combat the unlawful employment of illegal aliens.

Linden Heights Animal Hospital in Winchester, Va., recently signed an agreement to participate in IMAGE (ICE Mutual Agreement between Government and Employers), a voluntary program in which ICE partners with businesses to reduce unauthorized employment and the use of fraudulent identity documents. Representatives for the animal hospital, which employs 21 workers, took part in a ceremony Thursday, April 12, at ICE's Washington office to formally mark its entry into the program.

There are now a total of seven Washington-area employers partnering with ICE under the IMAGE program, and more than 150 businesses nationwide.

"Our IMAGE partnerships enable us to foster best practices in the employment arena, and that, in turn, contributes to a safe and productive work environment," said John P. Torres, special agent in charge of ICE's Homeland Security Investigations (HSI) Washington, D.C. "When employers make a commitment to hire and maintain a lawful workforce, it's good for their business and it's good for the community."

In qualifying for IMAGE certification, Linden Heights Animal Hospital complied with the following requirements:

·                             Enroll in the E-Verify program within 60 days;

·                             Establish a written hiring and employment eligibility verification policy that includes internal I-9 audits at least once per year; and

·                             Submit to a Form I-9 inspection.

Open since 1967, Linden Heights Animal Hospital was acquired in 1986 by brothers Dr. Joseph Schmitt and Dr. Peter Schmitt. Accredited by the American Animal Hospital Association (AAHA), Linden Heights Animal Hospital is a full-service, small animal veterinary hospital providing comprehensive medical, surgical and dental care.

"The primary purpose of this practice is to provide the highest quality medical, surgical and dental care to our patients and the best possible service to our clients," Dr. Joseph Schmitt said. "We believe working with ICE as an IMAGE partner is the best way to demonstrate our commitment to seeking excellence in all aspects of the hospital. It's the right thing to do for the right reason."

Undocumented workers create vulnerabilities in today's marketplace by presenting false documents to gain employment, completing applications for fraudulent benefits and stealing the identities of legal U.S. workers. To combat this, ICE initiated the IMAGE program in 2006.

Upon enrollment in and commitment to IMAGE best employment practices, program participants are deemed "IMAGE certified," a distinction the Department of Homeland Security and ICE believe will become an industry standard. IMAGE also provides all employers free training on the Form I-9, fraudulent document detection and building a solid immigration compliance model.

Washington-area companies interested in obtaining more information about the IMAGE program are encouraged to contact HSI Washington D.C.'s IMAGE coordinator at (202) 345-7151.

Mississippi Businesses Join ICE's IMAGE Program

Three Mississippi businesses signed agreements Monday, April 9, with U.S. Immigration and Customs Enforcement (ICE) to become members of the IMAGE program, short for "ICE Mutual Agreement between Government and Employers." VT Halter Marine, United States Marine, INC., and DCD Construction, INC., joined IMAGE, which provides businesses an opportunity to partner with the agency to develop a more secure and stable workforce.

The three companies are part of only a handful of companies in the state that have undergone the rigorous IMAGE certification process. As part of this process, they have completed extensive training and rigorous evaluation of their hiring processes.

At the signing ceremony on Monday, April 9, Raymond R. Parmer, Jr., special agent in charge of ICE's Homeland Security Investigations (HSI) New Orleans said, "ICE recognizes that the highest level of employment integrity can only be achieved through close coordination with industry partners. VT Halter Marine, United States Marine, INC. and DCD Construction, INC. will join IMAGE business participants around the country who are committed to protecting the integrity of their workforce by helping ensure that their employees are who they represent themselves to be."

The companies echoed similar sentiments by saying their acceptance into the IMAGE program not only solidified their positions as responsible corporate citizens, it reaffirmed their pride in the diversity of their compliant workforce. The contributions of their workforce strengthen the economy and embody the American ideal of hard work. Undocumented workers create vulnerabilities in the marketplace by presenting false documents to gain employment, completing applications for fraudulent benefits and stealing identities of legal workers. The IMAGE program provides employers with screening tools to prevent unauthorized workers from being hired.

The IMAGE program was initiated in 2006 with partners from around the United States and a wide range of industries, including: employment services, aviation, transportation, construction, high technology, shipping and manufacturing. By signing the IMAGE contract for full membership, businesses establish a formal partnership with law enforcement to follow the best hiring practices recommended by the program, train their staff to uphold the high standards required by the program and use the tools offered by the federal government to screen employees and ensure they are lawfully authorized to work.

IMAGE members work with ICE to meet the standards set by the program. In addition, they partner with ICE officials to assess their business practices and improve the way they hire, process 1-9 forms, maintain employment records and otherwise comply with U.S. laws regarding employment. The E- Verify program is administered by U.S. Citizenship and Immigration Services. Through this program, employers can verify that newly hired employees are eligible to work in the United States. This Internet-based program is available in all 50 states and is free to employers. E-verify provides an automated link to the Social Security Administration database and Department of Homeland Security immigration records.

Mississippi-area employers interested in the IMAGE program may contact the local IMAGE coordinator at 1-866-DHS-2ICE.

Pennsylvania Businessmen Sentenced for Employing Illegal Aliens and Tax Fraud

Two Pennsylvania business executives have been sentenced for the unlawful employment of illegal aliens and tax evasion. The sentence is the result of an investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); and the Internal Revenue Service, Criminal Investigation (IRS-CI).

John Cimino, 55, of Doylestown, Pa., vice president of LTCI Ltd., was sentenced Thursday, April 5, in U.S. District Court to six months home confinement, twelve weekends in a residential reentry center and three years of supervised release. He was sentenced for tax evasion and conspiracy to conceal, harbor and shield illegal aliens from detection for commercial advantage and private financial gain.

Anthony Cimino, 57, of West New Hope, Pa., president of LTCI, was sentenced to six months home confinement and three years of supervised release. He was also sentenced for conspiracy to conceal, harbor and shield illegal aliens from detection for commercial advantage and private financial gain.

"Homeland Security Investigations is committed to holding businesses accountable when they knowingly hire an illegal workforce," said Nick DiNicola, assistant special agent in charge of HSI Albany, N.Y. "Employers who willfully violate our nation's hiring laws gain an unfair economic advantage over their law abiding competitors. Our goal is to protect job opportunities for the nation's legal workers and level the playing field for those businesses that play by the rules."

In April 2008, HSI special agents discovered that LTCI, a Philadelphia-based construction company specializing in the refurbishment of movie theaters, was employing undocumented illegal aliens at their worksite located at the Shoppingtown Mall movie theaters in DeWitt, N.Y. The investigation revealed that LTCI had hired and employed eight illegal aliens at this site.

An additional investigation conducted by IRS-CI revealed that during 2007 and 2008, Cimino, who was in charge of the company's payroll, evaded federal tax owed on the Employer's Quarterly Federal Tax Return (Form 941) by paying his employees – both legal and illegal – a majority of their overtime wages "off the books."

In addition to home confinement and supervised release, U.S. District Court Judge David N. Hurd imposed a fine of $20,000 on each defendant. The Ciminos forfeited $223,000 to the U.S. government as proceeds from the unlawful employment of the illegal aliens. Additionally, the Ciminos paid $622,492 for under-reported payroll taxes owed, which included $225,000 in penalties.

HSI has a vital responsibility to enforce the law and engage in effective worksite enforcement to reduce the demand for illegal employment and protect employment opportunities for the nation's lawful workforce. HSI employs an effective, comprehensive worksite enforcement strategy that addresses both employers who knowingly hire illegal workers as well as the workers themselves.

HSI focuses its resources in the worksite enforcement program on the criminal prosecution of employers who knowingly hire illegal workers, in order to target the root cause of illegal immigration. Furthermore, HSI uses all available civil and administrative tools, including civil fines and debarment, to penalize and deter illegal employment.

This case was prosecuted by Assistant U.S. Attorney Carla Freedman, Northern District of New York.