New England Biz Law Update
In recent weeks, two separate cases have emerged involving business owners accused of harboring illegal aliens and, in one case, failing to pay millions in employment taxes.
In Pittsburgh, Pennsylvania, Andy Ha, owner of Prosperity Services, Inc., a temporary staffing agency, pleaded guilty to harboring illegal aliens for financial gain and failing to pay over $3 million in employment taxes.
According to the court, Ha provided housing and transportation for more than 25 workers who were not authorized to be in the United States. Furthermore, he provided false information to his tax preparer, resulting in a substantial tax loss to the U.S. government.
Ha faces up to 10 years in prison and fines on the harboring charge, and up to five years in prison and fines on the tax charge.
In a separate case in Brownsville, Texas, Leonardo Baez and Alicia Avila-Guel, owners of Abby’s Bakery and Dulce’s Café, have been indicted on charges of harboring illegal aliens. The couple, both legal permanent residents of the United States, allegedly employed and housed illegal aliens within their restaurant. A worksite enforcement action revealed that the couple provided a room with six mattresses on the floor to house unauthorized workers.
If convicted, Baez and Avila-Guel face up to 10 years in federal prison and a fine of up to $250,000.
These cases highlight the importance of compliance with immigration and employment tax laws. Employers must ensure that their workers are legally authorized to work in the United States and that they are paying the required employment taxes. Failure to do so can result in severe consequences, including criminal charges, jail time, and substantial fines.
