12:49 PM CDT on Thursday, April 20, 2006

From 11 News Staff Reports

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ICE agents arrested seven managers of a nationwide pallet company and more than a thousand workers who were here illegally, according to Homeland Security officials.

KHOU-TV

More than a 1,000 illegal immigrants were taken into custody in Houston and other cities.

The sting took place Wednesday in Houston and cities in 25 others states.

The federal sting targeted IFCO Systems North America, Inc., the largest pallet services company in the United States. IFCO is headquartered in Houston.

Roughly 53 percent of the firm’s employees during 2005 had invalid or mismatched Social Security numbers, according to federal authorities.

“It is disturbing that there are businesspeople who have decided to exploit illegal aliens for the sole purpose of their own financial gain," said New York State Police Superintendent Wayne E. Bennett. "Compounding the issue is the fact that corporation officials also engaged in tactics to obtain false identifications; instructed illegal aliens on how to avoid detection by law enforcement officials; and, practiced deception with government agencies regarding the true identifications of the workers.”

The current and former managers arrested will face criminal charges including conspiring to transport, harbor, and encourage and induce illegal aliens to reside in the United States for commercial advantage and private financial gain.

The conspiracy charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 for each illegal immigrant.

Two other IFCO employees were arrested on criminal charges relating to fraudulent documents.

The arrests are part of an ongoing criminal investigation of IFCO’s Pallet Management Services division that began more than a year ago.

KHOU

According to a government affidavit, the investigation began in February 2005 when ICE agents received information that IFCO workers in Guilderland, NY, were seen ripping up their W-2 tax forms. The source said an IFCO assistant general manager had explained that these workers were illegal, had fake Social Security cards and did not intend to file tax returns.

According to the affidavit, subsequent investigation indicated that IFCO officials transported illegal aliens to and from work; paid rent for the housing of illegal alien employees; and deducted money from their monthly paychecks to cover these expenses.

Former IFCO employees also said it was common practice for IFCO to hire workers who lacked social security cards or produced bogus identification cards.

The affidavit also alleges that IFCO officials knowingly hired an illegal immigrant who was an informant for ICE. In numerous recorded conversations, IFCO officials reimbursed the informant for obtaining fraudulent identity documents for other illegal immigrants; used the person to recruit other illegal workers; and advised the person and other illegal alien employees on how to avoid law enforcement detection, the affidavit alleges.

The affidavit further alleges that approximately 53.4 percent of the Social Security numbers contained on the IFCO Systems North America Inc. payroll of roughly 5,800 workers during 2005 were either invalid, did not match the true name registered with the Social Security Administration for that number, or belonged to children or deceased persons.

The Social Security Administration sent at least 13 written notifications to IFCO headquarters about such discrepancies on its payroll records in 2004 and 2005, the affidavit alleges.

“Employers and workers alike should be on notice that the status quo has changed,” said Homeland Security Secretary Michael Chertoff. “These enforcement actions demonstrate that this department has no patience for employers who tolerate or perpetuate a shadow economy. We intend to find employers who knowingly or recklessly hire unauthorized workers and we will use every authority within our power to shut down businesses that exploit an illegal workforce to turn a profit.”

ICE Assistant Secretary Myers said, “ICE has no tolerance for corporate officers who harbor illegal aliens for their workforce. This nationwide enforcement action shows how we will use all our investigative tools to bring these individuals to justice, no matter how large or small their company.”

Those arrested yesterday pursuant to the criminal complaints are:

Abelino “Lino” Chicas, 40, of Houston, TX, the assistant general manager of the Houston West IFCO plant in Houston, TX; arrested yesterday in Atlanta.

James Rice, 36, of Houston, TX, a former IFCO new market development manager and regional general manager; arrested yesterday in Houston.

Robert Belvin, 43, of Clifton Park, NY, the former general manager of the IFCO plant in Guilderland, NY; arrested yesterday in Guilderland.

William “Billy” Hoskins, 29, of Cincinnati, OH, an IFCO new market development manager and the general manager of the Cincinnati IFCO plant; arrested yesterday in Milwaukee.

Michael Ames, 44, of Shrewsbury, MA, the general manager of the IFCO plant in Westborough, MA; arrested yesterday in Westborough.

Dario Salzano, 36, of Amsterdam, NY, the assistant general manager of the IFCO plant in Guilderland, NY; arrested yesterday in Guilderland.

Scott Dodge, 43, of Amsterdam, NY, a former foreman at the IFCO plant in Guilderland and at the IFCO satellite location within the Target Distribution Center in Amsterdam, NY; arrested yesterday in Amsterdam.

Vincente Araus-Rivera, 44, an employee at the IFCO plant in Guilderland, NY; arrested yesterday in Guilderland.

Ovidio Umana, 28, an employee at the IFCO plant in Guilderland, NY; arrested yesterday in Guilderland.