Employers Still Held Accountable for Info In No-Match Letters
April 23rd, 2010 § Leave a Comment
Michel Malecot, Owner The French Gourmet
On April 21, 2010, a sixteen count indictment was unsealed that alleges the owner, manager, and The French Gourmet, a San Diego bakery, knowingly employed undocumented workers. Michel Malecot, the owner of the bakery, and Richard Kauffmann, a manager, are charged with twelve felony counts of making false statements and shielding undocumented employees from detection. If convicted, they face a maximum of five years in prison for each count, a $250,000 fine for each count, and three years of supervised release. The indictment is also seeking criminal forfeiture of the company’s proceeds that were gained from the business’ unlawful activities, including the company’s building that is valued at $1.3 million according to county records. Both men entered not guilty pleas and posted bail.
The government has built the case on the no-match letters from the Social Security Administration and records seized by a warrant in May 2008. Social Security no-match letters are issued by the Social Security Administration and notify an employer that the names and numbers of specific employees do not match.
The indictment alleges that, after receiving no-match letters from the Social Security Administration, the managers paid the employees in cash until a new set of documents with different Social Security numbers were provided.
Employers should seek legal advice if they have received Social Security no-match letters in the past. This indictment shows that employers are still being held accountable for the information contained in the no-match letters.
