Human Trafficking—Eastern European Workers

A Floridian, who is originally from Poland and holds conditional lawful permanent residency, has pleaded guilty to playing a role in a scheme that brought hundreds of Eastern European workers to the United States, as well as depriving the United States government of millions of dollars in taxes.^[1] Pavel Preus is the first member of a six-man ring which allegedly brought 550 people from the Czech Republic, Poland, Hungary, the Slovak Republic, and other countries, to the United States under somewhat false pretenses.^[2]

Mr. Preus was originally indicted and arrested in early April of this year as part of Operation Pisces, which began in 2002.^[3] The 26-count indictment alleges that over the past ten years, the defendants conspired to provide unauthorized Eastern Europeans who had entered the country on tourist visas, to American companies who had contracted with the defendants to provide legally authorized foreign workers.^[4] These workers were employed illegally on farms, in dairies, and in factories, throughout the Midwest and Southeastern US.^[5] The defendants were supposed to pay payroll taxes and workers’ compensation deductions, but they allegedly did not do so; nearly $6 million in payroll taxes were allegedly not paid, and the defendants allegedly laundered more than $20 million.^[6]

Mr. Preus pleaded guilty to three charges:

1. conspiracy to induce and encourage aliens to enter and remain unlawfully in the United States for commercial advantage, conspiracy to transport and conceal aliens in the United States for commercial advantage, and conspiracy to cause the making of false statements to government agencies;
2. conspiracy to commit money laundering; and
3. conspiracy to defraud the United States of taxes due.^[7]

Sentencing is scheduled for November 21.^[8]

Charge 1
The crimes in Charge 1 are all covered by 8 U.S.C. § 1324(a)(1)(A). Inducing and encouraging aliens to enter the US is covered by section 1324(a)(1)(A)(iv), transporting aliens is covered by section 1324(a)(1)(A)(ii) and concealing aliens is covered by section 1324(a)(1)(A)(iii). The conspiracy provision is found at section 1324(a)(1)(A)(v)(I), which punishes a conspiracy to commit the violations as if the violations had been committed. Because the conspiracy was entered into for financial gain, the punishment is a fine and imprisonment for up to 10 years.^[9]

Charge 2
We have previously discussed conspiracies to commit money laundering here.

Charge 3
Tax-fraud conspiracies are typically prosecuted under 18 U.S.C. § 371, which states that if any person conspires with another to commit any offense against the United States, or to defraud the United States or any agency of the United States, he will be fined, imprisoned for up to five years, or both. Unlike conspiracy to launder money, or conspiracy to traffic in narcotics,^[10] there is a requirement under section 371 that the government prove an overt act, though in this case that is a somewhat irrelevant point, since Mr. Preus pleaded guilty before trial.

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[1] Curt Anderson, Feds Get Guilty Plea Florida Man in Eastern European Worker Scam, Sun-Sentinel, Sept. 13, 2005, available here. See also Department of Justice, Press Release: Defendant Pleads Guilty in Eastern European Employee Leasing Scam, Sept. 13, 2005, available here [hereinafter DOJ I].
[2] Anderson.
[3] Department of Justice, Press Release: Leaders of Nationwide Illegal Alien Employee-Leasing Conspiracy Indicted, Apr. 12, 2005, available here.
[4] Id.
[5] Id.
[6] Id.
[7] DOJ I at 1.
[8] Id.
[9] 8 U.S.C. § 1324(a)(2)(B)(ii).
[10] For more information on the overt act requirement, please see our discussion of it here.