November 7, 2007

ICE probe of alleged illegal hiring practices leads to criminal charges against owner of Oakland carpentry business

SAN FRANCISCO - The owner of an Oakland carpentry business, illegally living in the United States, was arraigned this morning in U.S. District Court on criminal charges in connection with an ongoing probe by U.S. Immigration and Customs Enforcement (ICE) into allegations that he knowingly hired illegal aliens.

Jose De Jesus Guzman-Baez, 35, a Mexican national and the owner of Pepe's Cabinets, was arrested yesterday by ICE agents following a search executed at the business on 47th Avenue. Guzman is charged with unlawfully employing illegal aliens and harboring illegal aliens, violations that carry maximum penalties of six months in prison and five years in prison, respectively.

Yesterday's enforcement action follows a 16-month investigation into the hiring practices at Pepe's Cabinets. The probe was sparked by information provided to ICE's toll-free tip line, (1-866-DHS-2ICE).

According to the criminal complaint filed in the case, Guzman, also known as Pepe, is not only illegally in the United States himself, but his entire workforce consists of eight illegal aliens. In the course of the investigation, ICE agents discovered that Guzman and all of his employees were using Social Security numbers that appeared to be fraudulent or did not match Social Security Administration records. Increasingly, illegal aliens are assuming the identities of U.S. citizens or lawful permanent residents to gain employment. The identity theft victims suffer adverse consequences from these schemes, including being assessed for taxes on income they did not earn.

The criminal complaint alleges that Guzman failed to check the documents of prospective employees to ensure they were eligible to work in the United States and that he continued to employ illegal aliens he knew were not lawfully in the country. Evidence suggests that employees may have been paid in cash to conceal their illegal employment, and that at least one worker may have entered into living arrangements with the defendant.

"Yesterday's enforcement action is part of ICE's ongoing pursuit of employers who violate our nation's hiring laws,� said Mark Wollman, acting special agent in charge of the ICE office of investigations in San Francisco. "ICE will use every tool at its disposal to target businesses that exploit an illegal workforce to turn a profit."

In addition to Guzman's arrest on criminal charges, ICE agents detained and processed seven illegal alien workers encountered during yesterday's operation on administrative immigration violations. These individuals will be voluntarily returned to their native countries or placed in immigration removal proceedings and scheduled for a hearing before an immigration judge.

Since its establishment in 2003, ICE has dramatically enhanced its efforts to combat the unlawful employment of illegal aliens in this country. ICE's comprehensive strategy for worksite enforcement is aimed at promoting national security, protecting critical infrastructure, and ensuring fair labor standards. As part of this strategy, ICE is targeting unscrupulous employers by seeking to initiate criminal prosecutions and forfeiture of businesses' assets.

In fiscal year 2007, which ended September 30, ICE made more than 4,900 criminal and administrative arrests in connection with worksite enforcement investigations, nearly four times the number of worksite-related arrests just two years ago. In addition, during the first three quarters of fiscal year 2007, ICE obtained criminal fines, restitutions, and civil judgments of more than $30 million in connection with these types of cases.

-- 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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