Originally published on April 25, 2006 in the Client Alert on Immigration
On April 19, 2006, U.S. Immigration and Customs Enforcement (ICE) agents arrested seven current and former managers of IFCO Systems North America, Inc. ("IFCO"), the largest pallet services company in the United States. These individuals have been charged with conspiring to transport, harbor, and encourage and induce illegal aliens to reside in the United States for commercial advantage and private financial gain, in violation of Title 8, USC Section 1324(a). The conspiracy charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 for each alien with respect to whom the violation takes place. Two other IFCO employees were arrested on criminal charges relating to fraudulent documents. In addition to the criminal arrests, ICE agents also conducted "consent" searches or executed criminal search warrants at more than 40 IFCO plants and related locations in 26 states that resulted in the apprehension of approximately 1,187 illegal alien IFCO employees.
The federal government’s actions were unusual in that most workplace raids since the 9/11 terrorist attacks have targeted undocumented workers in industries critical to national security, such as airports and nuclear power plants. However, the IFCO raids were timed as Department of Homeland Security officials announced its renewed strategy aimed at companies that employ illegal immigrants. The interior enforcement strategy now in place represents the second phase of the Secured Border Initiative (SBI), which is the Department of Homeland Security’s multi-year plan to secure America’s borders and reduce illegal migration.
The interior enforcement strategy recently announced by Homeland Security will target companies that employ illegal aliens and punish employers that knowingly and recklessly employ them. ICE has already initiated a strategic shift in the way it approaches such employers by bringing criminal charges against them and seizing their illegally-derived assets rather than relying on the old tactic of administrative fines as sanctions. Last fiscal year, this new approach resulted in 127 criminal convictions, up from 46 the previous fiscal year. More employers are also being charged with money laundering violations, which can result in prison sentences of up to 20 years. Last year, a single ICE worksite enforcement investigation resulted in a settlement and forfeiture of $15 million, an amount that represented the largest worksite enforcement penalty in U.S. history and surpassed the sum of all administrative fines from the previous eight years. ICE seeks to enhance its worksite enforcement investigations with proposed additional funding. The Administration’s Fiscal Year 2007 budget request seeks $41.7 million in new funds and 171 additional agents to enhance ICE’s worksite enforcement efforts.
Julie Myers, Assistant Secretary to ICE, announced that "the IFCO enforcement actions demonstrate how ICE will use all its investigative tools to bring these individuals to justice, no matter how large or small their company." Further, Homeland Security Secretary Michael Chertoff added, "Employers and workers alike should be on notice that the status quo has changed."
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