Clients often ask, “What’s the risk of not complying with immigration law?” In essence, what they’re asking is how much it will cost if they don’t get it right. So, I thought it might be helpful to look at some recent immigration-related penalties to illustrate what’s at stake.
The penalties will of course be fact-dependent, and, as you know, the good faith of the employer can have an enormous impact, but generally speaking, sentences for employers range from up to six months in prison for knowingly hiring an illegal worker to 10 years for harboring one. Also, other charges and additional penalties can be tacked on for crimes like tax evasion, money laundering, bank fraud and false statements that stem from what began as an immigration-related investigation. Immigration violations also carry significant civil fines of up to $16,000 per worker.
But jail time and fines are not the only significant penalties. Asset forfeiture, debarment, and reinstatement requirements can also be added on, and there is also the indirect damage from lost productivity, attorneys’ fees and negative publicity.
To put these penalties in real terms, see these examples from recent cases:
|
Company |
Date |
Charge |
Prison Time |
Monetary Penalties |
|
HerbCo International, Inc. |
May 2012 |
|
|
$1,000,000 |
|
Atrium Companies (Champion Window and Advanced Containment Systems, Inc. (ACSI)) |
January 2012 |
|
$2,000,000 forfeited funds |
|
|
University of California San Diego Medical Center |
January 2012 |
Discrimination in employment eligibility verification process |
|
$115,000 |
|
Aguila Farms, LLC |
November 2011 |
Knowingly hiring and aiding and abetting (owner)
|
3 years probation (owners) 5 years probation (company) |
$2,000,000 forfeited funds (company) $234,000 fines (owners) $500,000 fine (company) |
|
YCL, Inc. (The Gateway Hotel) |
October 2011 |
Conspiracy to smuggle, transport and/or harbor, money laundering and tax fraud (owner) Conspiracy to smuggle and harbor (company)
|
15 years (owner) 5 years probation (company) |
Over $2,300,000 fine (owner) Over $480,000 restitution (owner) Over $870,000 money judgment (company) $5,000 fine (company) |
|
Farmland Foods |
August 2011 |
Discrimination in employment eligibility verification process |
|
$290,400 |
|
Howard Industries |
February 2011 |
|
$2,500,000 |
|
|
Hi-Tech Trucking |
November 2010 |
Hire and harbor illegal aliens
|
18 months (owners) 2 years probation (owners) |
Over $1,200,000 forfeit and $100,000 fine |
|
Catholic Healthcare West |
October 2010 |
Discrimination in employment eligibility verification process |
|
$257,000 |
|
Abercrombie & Fitch |
September 2010 |
|
$1,000,000 |
|
|
Pilgrim’s Pride |
December 2009 |
|
$4,500,000 |
|
|
Agriprocessors |
June 2010 March 2009
|
Aiding and abetting in harboring (supervisor) Bank fraud, false statements, money laundering (company)
|
27 years (former CEO) 23 months (supervisor) 1 year + 2 years supervised release (manager) 2 years probation (manager) |
$26,000,000 restitution
|
|
IFCO Systems |
December 2008 |
Hiring and employment of illegal aliens; Overtime violations; Conspiring to harbor illegal aliens (managers)
|
16 managers and executives convicted; 5 sentenced to pay a fine and the remaining 11 await sentencing |
Over $20,000,000 |