Nev. McDonald's franchisee pleads guilty to immigration charges

Nev. McDonald's franchisee pleads guilty to immigration charges
Tags: Burger/Steak/BBQ, Legal Issues, Operations Management
July 16, 2008

WASHINGTON — The U.S. Department of Justice has reported that one current and one former top executive for a Reno, Nev.-area McDonald's franchisee, and the corporation itself, pleaded guilty in federal court in Las Vegas 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 workers.

In a July 16 hearing in Las Vegas U.S. District Court, attorneys for Mack Associates Inc., which owns 11 McDonald's restaurants in and around Reno, 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 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 corporation will pay a $1 million fine — $500,000 for each count, the maximum allowed —and will be placed on probation during the period that the fine is outstanding. The court also sentenced Mack Associates to one year 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, 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, the corporation's controller, has been charged with one misdemeanor count of continuing employment of an unauthorized alien.

The probe began in March 2007 after the ICE received a tip about a possible incidence of identity theft from the sheriff's office in Lyon County, Nev. In September 2007, ICE agents executed federal search warrants for the 11 McDonald's restaurants and the franchisee's corporate office.

During the operation, agents encountered 58 illegal aliens who were working at the McDonald's restaurants. The 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 workers were provided with documentation allowing them to remain in the United States pending the outcome of the criminal investigation.