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Hotel operator to forfeit $2 million after managers start temp firms

September 11, 2014

Grand America Hotels and Resorts agreed last week to forfeit $1.95 million after an investigation found operational managers at the hotel company had formed temp firms to hire undocumented workers, the U.S. Attorney’s Office for Utah announced.

The incident unfolded during an audit of the hotel company by U.S. Immigration and Customs Enforcement, according to the U.S. Attorney’s office. The audit, which began in September 2010 and ended a year later, found 133 undocumented workers. All the workers were terminated, and the company received a warning.

However, lower- and midlevel managers at the hotel company had created three temporary staffing firms to rehire some of the terminated workers, according to the office. The managers started the firms without alerting top executives at the hotel company.

Two of the temp firms began before the audit ended and the hotel received its warning. But the U.S. Attorney reported they hired approximately 30 undocumented workers to work at The Grand America Hotel. All three temp firms ultimately employed 43 undocumented workers — with most returning to their hotel jobs under different names and using fake documents.

When an investigation brought the temp firms to light, the hotel company fired four operations managers and reprimanded two others, according to the office. In addition, the undocumented workers were not allowed to continue work at the hotel company.

Grand America Hotel and Resorts will not be prosecuted in exchange for its continued cooperation with the investigation, according to the office. But it must forfeit $1.95 million because of the alleged criminal conduct by employees who were acting on its behalf.

“The amount of the forfeiture was determined by looking at the total number of illegal aliens employed over the entire period of the investigation and determining the benefit gained by the corporation as a result of employing undocumented workers during that period,” according to the office.

In addition, the corporation is expected to take remedial measures that will cost around $500,000 to implement.

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