March 28, 2007

Company executives sentenced for hiring illegal alien workers
California company forfeits $4.7 million in profits, executives fined

SAN DIEGO - Two top executives for the Golden State Fence company were sentenced today for ignoring warnings by U.S. Immigration and Customs Enforcement (ICE) and repeatedly hiring unauthorized workers, capping the first federal prosecution of a California-based employer for illegal hiring practices.

At a hearing here this morning, U.S. District Judge Barry T. Moskowitz sentenced Golden State's president, Melvin Kay, to three years probation, with 180 days of home confinement, and a $200,000 fine. The company's vice president, Michael McLaughlin, was sentenced to three years probation, with 180 days of home confinement, and a $100,000 fine. In addition, the Judge ordered the Riverside, Calif., corporation to forfeit $4.7 million of proceeds generated by its illegal hiring practices.

"Meaningful employer sanctions, such as those imposed against Golden State and its principals, are an important component of criminal enforcement of illegal immigration across our border with Mexico," said United States Attorney Karen P. Hewitt.

Golden State, which builds fences for residential, commercial and military projects throughout Calif., was first notified in writing in 1999 that at least 15 of its employees at its Oceanside, Calif., office were unauthorized alien workers following a visit by agents with the former Immigration and Naturalization Service (INS) in July of that year.

At that time, Golden State stated they were terminating the employees. However, in September 2004, ICE agents determined that at least 49 Golden State employees at the Oceanside office were unauthorized aliens. Three of the employees were among those listed in the 1999 notice as unauthorized alien workers.

"Companies that willfully flout our nation's hiring laws will pay the price for their illegal actions, in this case $4.7 million of the corporation's assets are being forfeited to the government," said Michael Carney, acting special agent in charge of the ICE Office of Investigations in San Diego. "Knowingly hiring illegal aliens not only harms law-abiding businesses, it also exposes the companies that break the law to prosecution and financial penalties."

In June and September 2005, ICE agents again observed unauthorized aliens listed in the 1999 and 2004 notices working at the Oceanside office. Then in August 2005, ICE agents inspected Golden State's Riverside, Calif., office. ICE agents again found that at least three of the employees working in the Riverside office were unauthorized aliens who were listed in the 1999 notice as unauthorized alien workers.

In December 2006, the corporation pleaded guilty to hiring unauthorized alien workers between January 1999 and November 2, 2005. At the same time, Kay and McLaughlin each pleaded guilty to hiring at least ten individuals whom they knew were unauthorized aliens.

ICE received substantial assistance in the investigation from U.S. Customs and Border Protection Border Patrol, the Social Security Administration, Office of the Inspector General and the Naval Criminal Investigative Service.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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