7-Eleven Franchisees Convicted in Largest-Ever ICE Worksite Enforcement Forfeiture

Author: Melissa A. Silver, XpertHR Legal Editor

September 30, 2014

As the result of one of the largest criminal alien employment investigations ever conducted by the Department of Justice and the Department of Homeland Security, five franchisee-owners and managers of 14 7-Eleven stores located in New York and Virginia have pled guilty to charges of committing wire fraud and concealing and harboring illegal aliens they employed.

Last year, the Immigration and Customs Enforcement's Homeland Security Investigation (HSI) arrested the individuals for conspiring to commit wire fraud, stealing identities and concealing and harboring illegal aliens employed at their stores.

According to a press release, the court filings and the facts presented in court alleged that the individuals engaged in the following activities during the course of the conspiracies:

  • Hiring dozens of illegal aliens;
  • Providing them with more than 20 stolen US identities;
  • Housing them at residences owned by the franchisees and operators; and
  • Stealing substantial portions of their wages.

As a result of these actions, the owners and managers earned over $182 million in profits, which they shared among themselves and with 7-Eleven.

Loretta E. Lynch, US Attorney for the Eastern District of NY, stated in the press release that "[u]sing the 7-Eleven brand, the defendants dispensed wire fraud and identity theft, along with Big Gulps and candy bars. In our backyards, the defendants not only systemically employed illegal aliens, but concealed their employment by stealing the identities of children and even the dead. The defendants also exploited their alien employees, stealing their wages and requiring them to live in unregulated boarding houses."

Although sentencing proceedings have not yet been scheduled, two of the convicted individuals face 20-year prison terms, and the other three face 10- year prison terms. They have also agreed to take the following actions:

  • Forfeit (i.e., seize) their franchise rights to 10 7-Eleven stores in New York and four in Virginia;
  • Forfeit ownership of five houses in New York worth over $1.3 million; and
  • Pay over $2.6 million in stolen back wages.

HSI Special Agent-in-Charge James T. Hayes stated in a press release that "[t]his case serves notice to employers - that they will be severely punished if they seek to profit on the back of an illegal workforce."