ICE Probe of Nevada McDonald’s Franchisee Results in Guilty Pleas by Local Corporation and Current and Former Executives on Immigration Charges

    McDonald's Franchisee Admits to Two Felony Counts - Agrees to Pay $1

Million Fine



    WASHINGTON, July 16 /EMWNews/ -- One current and one

former top executive for a franchisee that owns 11 McDonald's restaurants

in and around Reno, Nev., and the corporation itself pleaded guilty in

federal court in Las Vegas today to federal felony immigration offenses for

encouraging illegal aliens to reside in the United States. These charges

stem from an investigation by U.S. Immigration and Customs Enforcement

(ICE) into allegations the company knowingly hired illegal alien workers.



    U.S. Attorney for the District of Nevada Gregory A. Brower and

Department of Homeland Security Assistant Secretary for ICE Julie L. Myers

announced the plea agreements, which are the latest developments in an ICE

probe that began in March 2007 after the agency received a tip about a

possible incidence of identity theft from the sheriff's office in Lyon

County, Nev.



    In a hearing this morning in Las Vegas before U.S. District Court Judge

James Mahan, attorneys for Mack Associates Inc., which owns the Reno-area

McDonald's restaurants, pleaded guilty on behalf of the franchisee to one

count of conspiracy to encourage and induce an alien's unlawful residence

in the United States and one count of aiding and abetting an alien to

remain in the United States, both felony offenses. Joe Gillespie, 53, of

Sparks, Nev., the Director of Operations for Mack Associates Inc., also

pleaded guilty to one count of aiding and abetting an alien to remain in

the United States. Both defendants waived indictment by a federal grand

jury and agreed to plead guilty to criminal informations.



    The government and Mack Associates agreed that the corporation will pay

a $1 million fine -- $500,000 for each count, the maximum allowed -- and be

placed on probation during the period that the fine is outstanding. The

court accepted this agreement and sentenced Mack Associates today to one

year of probation and ordered the corporation to pay the agreed upon fine,

with $300,000 payable immediately and the balance to be paid within nine

months.



    The plea agreement details how Mack Associates' management employed

individuals they knew were in the country illegally, including two

restaurant managers, by furnishing them with names and Social Security

numbers belonging to other individuals.



    In addition, Jimmy Moore, 47, the franchisee's former vice-president,

pleaded guilty to one felony count of inducing an illegal alien to remain

in the United States. At sentencing, Moore faces a maximum penalty of up to

five years in prison and a $250,000 fine.



    A third defendant in the case, Anntoinette Richmond, 44, the

corporation's controller, has been charged with one misdemeanor count of

continuing employment of an unauthorized alien.



    "This case should serve as a reminder to employers that knowingly

hiring illegal aliens violates federal law," said U.S. Attorney Brower.

"Companies and their managers who engage in such conduct are on notice that

violations will be prosecuted and that the criminal penalties can be

significant."



    "This investigation clearly shows our resolve to pursue those who

willfully violate our nation's hiring laws, regardless of their place on

the corporate ladder," said Assistant Secretary Myers. "On television,

criminal cases are wrapped up in an hour; but in real life, these

investigations are complex and can take months, or even years, to build. We

will invest whatever time it takes to ensure that those who flout the law

are brought to justice."



    In September 2007, ICE agents executed federal search warrants at the

11 McDonald's restaurants owned by Mack Associates in the Reno area and at

the franchisee's corporate office. During the operation, agents encountered

58 illegal aliens who were working illegally at the McDonald's restaurants.

The illegal alien workers were arrested on administrative immigration

violations and processed for removal. Approximately 30 of those workers

have been returned to their native countries. The remaining illegal workers

were provided with documentation allowing them to remain in the United

States pending the outcome of the criminal investigation.



    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 and public safety, protecting critical

infrastructure, and ensuring fair labor standards.



    Thus far in fiscal year 2008 (October 2007 through July 11, 2008), ICE

has made 937 criminal arrests in connection with worksite enforcement

investigations. Of those, 99 involve owners, managers, supervisors or human

resources employees who face charges ranging from harboring to knowingly

hiring illegal aliens. In addition to the criminal arrests, ICE has made

more than 3,500 administrative arrests for immigration violations during

worksite investigations in that same time frame. Last year, ICE made more

than 4,900 arrests in worksite enforcement cases, including 863 involving

criminal violations. Last year's figure represents a 45-fold increase in

criminal worksite arrests compared to fiscal year 2001. Furthermore, in

fiscal year 2007, ICE obtained more than $31 million in criminal fines,

restitutions and civil judgments as a result of worksite related

enforcement actions.