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Tennessee Man Employed Undocumented Aliens to Avoid Workers’ Compensation and Taxes

By

slaughterhouse-329350_1920-300x199The sentencing of a Tennessee man who was found guilty of wire fraud, tax fraud, and employing individuals living in the country without authorization has been delayed while another, related case is concluded.

James Brantley, age 61, is the owner of Southern Provision, LLC, a slaughterhouse and meatpacking business based in Bean Station in eastern Tennessee. Between 1988 and 2018, Brantley deliberately hired people living in the United States illegally in order to avoid paying workers’ compensation insurance premiums as well as unemployment insurance premiums and other tax obligations.

Brantley has agreed to pay $127,405 restitution to Southern Provision’s former workers’ compensation insurance provider for understating how many employees required coverage. He has also agreed to pay $1,423,588 to the Internal Revenue Service (IRS) for avoiding his tax obligations. At his sentencing, Brantley will face up to 20 years in prison for the charge of wire fraud, five years in prison for the tax charges, and six months in prison for employing people without authorization to be in the country.

The investigation against Brantley was conducted jointly by U.S. Homeland Security Investigations, the IRS Criminal Investigation Division, and the Tennessee Highway Patrol. A Latino agent worked at Southern Provision undercover to discover more about the company’s hiring practices.

According to an affidavit by IRS investigator Nicholas Worsham, the undercover agent “stated that he knew that several of these employees used to work at another meat-processing plant in Morristown but had been fired because their identification paperwork was fraudulent.”

Investigators also learned that Brantley regularly withdrew cash amounting to $100,000 from his account at Citizens Bank. This was, Brantley told bank officials, to pay “cash wages to Hispanics.”

With a federal search warrant in hand, investigators led a raid on Southern Provisions in April 2018. There, agents found that more than 100 undocumented aliens were currently employed there. Brantley paid these workers between $8 and $10 an hour and regularly asked these employees to work overtime at this same rate rather than the legally required time-and-a-half. Brantley was also dramatically underreporting payroll to the IRS, claiming at the time he only had 44 employees.

This is hardly a unique phenomenon. In Jacksonville, Florida, brother and sister Roger Omar Zelaya-Mendez and Fanny Melina Zelaya-Mendez were sentenced to prison for knowingly employing hundreds of undocumented aliens in the construction industry. By doing so and by concealing their true payroll, the siblings avoided paying millions of dollars in tax obligations and workers’ compensation insurance premiums. In Texas, Alpha Mar underreported payroll to reduce their workers’ compensation overheads between 2008 and 2012. Alpha Mar has been ordered to pay $250,000 to their former insurance provider as restitution.

Worsham’s affidavit implicated not only Brantley for the crimes at Southern Provisions, but also his wife, daughter, and another employee. As part of his plea deal, Brantley alone has faced federal prosecution.

Sentencing was delayed at the request of Assistant U.S. Attorney Timothy C. Harker. Although Harker did not state the specific reason for the request, he explained it was to do with a related case. “It is in the best interests of (the defendant) and in the best interest of justice that the date of the sentencing hearing be continued, so that other matters may be resolved prior to the sentencing of the defendant.”

If Brantley has indeed been cooperating with authorities in another case, this may help reduce his eventual sentence.

Florida Workers’ Compensation Fraud Defense Attorney

If you are involved in a worker’s compensation fraud investigation, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced workers’ compensation fraud defense attorneys.

Sources

2018-09-12 Southeastern Provision Owner James Brantley Pleads Guilty to Federal Information

2019-01-16 Sentencing for Meat-Packing Plant Owner Delayed

Tennessee Man Employed Undocumented Aliens to Avoid Workers’ Compensation and Taxes

By

slaughterhouse-329350_1920-300x199The sentencing of a Tennessee man who was found guilty of wire fraud, tax fraud, and employing individuals living in the country without authorization has been delayed while another, related case is concluded.

James Brantley, age 61, is the owner of Southern Provision, LLC, a slaughterhouse and meatpacking business based in Bean Station in eastern Tennessee. Between 1988 and 2018, Brantley deliberately hired people living in the United States illegally in order to avoid paying workers’ compensation insurance premiums as well as unemployment insurance premiums and other tax obligations.

Brantley has agreed to pay $127,405 restitution to Southern Provision’s former workers’ compensation insurance provider for understating how many employees required coverage. He has also agreed to pay $1,423,588 to the Internal Revenue Service (IRS) for avoiding his tax obligations. At his sentencing, Brantley will face up to 20 years in prison for the charge of wire fraud, five years in prison for the tax charges, and six months in prison for employing people without authorization to be in the country.

The investigation against Brantley was conducted jointly by U.S. Homeland Security Investigations, the IRS Criminal Investigation Division, and the Tennessee Highway Patrol. A Latino agent worked at Southern Provision undercover to discover more about the company’s hiring practices.

According to an affidavit by IRS investigator Nicholas Worsham, the undercover agent “stated that he knew that several of these employees used to work at another meat-processing plant in Morristown but had been fired because their identification paperwork was fraudulent.”

Investigators also learned that Brantley regularly withdrew cash amounting to $100,000 from his account at Citizens Bank. This was, Brantley told bank officials, to pay “cash wages to Hispanics.”

With a federal search warrant in hand, investigators led a raid on Southern Provisions in April 2018. There, agents found that more than 100 undocumented aliens were currently employed there. Brantley paid these workers between $8 and $10 an hour and regularly asked these employees to work overtime at this same rate rather than the legally required time-and-a-half. Brantley was also dramatically underreporting payroll to the IRS, claiming at the time he only had 44 employees.

This is hardly a unique phenomenon. In Jacksonville, Florida, brother and sister Roger Omar Zelaya-Mendez and Fanny Melina Zelaya-Mendez were sentenced to prison for knowingly employing hundreds of undocumented aliens in the construction industry. By doing so and by concealing their true payroll, the siblings avoided paying millions of dollars in tax obligations and workers’ compensation insurance premiums. In Texas, Alpha Mar underreported payroll to reduce their workers’ compensation overheads between 2008 and 2012. Alpha Mar has been ordered to pay $250,000 to their former insurance provider as restitution.

Worsham’s affidavit implicated not only Brantley for the crimes at Southern Provisions, but also his wife, daughter, and another employee. As part of his plea deal, Brantley alone has faced federal prosecution.

Sentencing was delayed at the request of Assistant U.S. Attorney Timothy C. Harker. Although Harker did not state the specific reason for the request, he explained it was to do with a related case. “It is in the best interests of (the defendant) and in the best interest of justice that the date of the sentencing hearing be continued, so that other matters may be resolved prior to the sentencing of the defendant.”

If Brantley has indeed been cooperating with authorities in another case, this may help reduce his eventual sentence.

Florida Workers’ Compensation Fraud Defense Attorney

If you are involved in a worker’s compensation fraud investigation, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced workers’ compensation fraud defense attorneys.

Sources

2018-09-12 Southeastern Provision Owner James Brantley Pleads Guilty to Federal Information

2019-01-16 Sentencing for Meat-Packing Plant Owner Delayed

Nashville Renews Federal Civil Asset Forfeiture Program

By

city-3195717_1920-300x200After a lively debate, the Metropolitan Council of Nashville, Tennessee has agreed to renew its participation in a controversial federal civil asset forfeiture program called “equitable sharing.” Opponents from both the left and the right argue the program encourages “policing for profit.”

Civil asset forfeiture is the legal procedure where law enforcement can seize an individual’s property or cash without filing criminal charges. In most states, all that is required is the suspicion that the property was involved in a crime. In a criminal case, the burden of proof lies with the prosecution. In Tennessee, in cases where a vehicle is seized, however, the burden of proving innocence lies with the property owner.

Earlier this year, Tennessee’s governor, Bill Haslam signed into law reforms of the state’s civil asset forfeiture procedures. The new law requires the state’s law enforcement agencies to disclose where money from civil asset forfeitures is spent. Between 2009 and 2014, law enforcement seized $86 million in cash, yet there has been no reporting on where that money was spent. Additionally, while there are statewide records of how much cash was seized at this time, there are no records of how much physical property—for example, vehicles and electronics—were seized during this time.

The libertarian Institute for Justice (IJ) which has long opposed the practice of civil asset forfeiture applauded the changes but sounded a cautionary note. “By itself, improved transparency cannot fix the fundamental problems with civil forfeiture—namely, the property rights abuses it permits and the temptation it creates to police for profit,” said Jennifer McDonald of IJ.

Further, while these reforms apply to forfeitures carried out at the local and state level, they do not appear to apply to the federal equitable sharing program. In the period between 2009-2014, Tennessee law enforcement agencies received an additional $69 million in funds from equitable sharing.

Equitable sharing is a type of civil asset forfeiture where local law enforcement partner with the feds on a case. The federal government keeps 20% of the proceeds; the regional law enforcement agency receives the remaining 80%. As part of the program, the law enforcement agency has to keep the money for itself. In other states where restrictions have been placed on civil asset forfeiture, agencies use equitable sharing to avoid these restrictions and keep the money for themselves.

Critics of civil asset forfeiture and equitable sharing argue the programs give police departments an incentive to seize property, leading to what’s known as “policing for profit.”

Councilman Freddie O’Connell argued against Nashville renewing its participation in the program. He represents a low-income neighborhood. These areas are often the most affected by civil asset forfeiture, and innocent owners may not be able to afford a lawyer to help retrieve their property.

In the end, the argument came down to the city’s need for cash. The fire department and schools are in need of money. The new police oversight board will cost an additional $1.5 million. More money is needed, and equitable sharing provides needed funding for law enforcement.

In voting in favor of continuing equitable sharing, Councilman Doug Pardue, a former police officer vented his frustration. “It’s obvious the damn council isn’t going to help them [Nashville law enforcement],” he said. “They beg for equipment, and that’s what this money is used for.”

The measure passed 25-5 in favor with two abstentions.

Civil Asset Forfeiture Attorney

If your lawful property has been seized, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced civil forfeiture defense attorneys.

Sources

2018-11-30 Civil Forfeiture Approval Shows Nashville is Desperate for Cash

2018-05-22 Tennessee Will Require Law Enforcement to Report Their Forfeiture Spending

Nashville Renews Federal Civil Asset Forfeiture Program

By

city-3195717_1920-300x200After a lively debate, the Metropolitan Council of Nashville, Tennessee has agreed to renew its participation in a controversial federal civil asset forfeiture program called “equitable sharing.” Opponents from both the left and the right argue the program encourages “policing for profit.”

Civil asset forfeiture is the legal procedure where law enforcement can seize an individual’s property or cash without filing criminal charges. In most states, all that is required is the suspicion that the property was involved in a crime. In a criminal case, the burden of proof lies with the prosecution. In Tennessee, in cases where a vehicle is seized, however, the burden of proving innocence lies with the property owner.

Earlier this year, Tennessee’s governor, Bill Haslam signed into law reforms of the state’s civil asset forfeiture procedures. The new law requires the state’s law enforcement agencies to disclose where money from civil asset forfeitures is spent. Between 2009 and 2014, law enforcement seized $86 million in cash, yet there has been no reporting on where that money was spent. Additionally, while there are statewide records of how much cash was seized at this time, there are no records of how much physical property—for example, vehicles and electronics—were seized during this time.

The libertarian Institute for Justice (IJ) which has long opposed the practice of civil asset forfeiture applauded the changes but sounded a cautionary note. “By itself, improved transparency cannot fix the fundamental problems with civil forfeiture—namely, the property rights abuses it permits and the temptation it creates to police for profit,” said Jennifer McDonald of IJ.

Further, while these reforms apply to forfeitures carried out at the local and state level, they do not appear to apply to the federal equitable sharing program. In the period between 2009-2014, Tennessee law enforcement agencies received an additional $69 million in funds from equitable sharing.

Equitable sharing is a type of civil asset forfeiture where local law enforcement partner with the feds on a case. The federal government keeps 20% of the proceeds; the regional law enforcement agency receives the remaining 80%. As part of the program, the law enforcement agency has to keep the money for itself. In other states where restrictions have been placed on civil asset forfeiture, agencies use equitable sharing to avoid these restrictions and keep the money for themselves.

Critics of civil asset forfeiture and equitable sharing argue the programs give police departments an incentive to seize property, leading to what’s known as “policing for profit.”

Councilman Freddie O’Connell argued against Nashville renewing its participation in the program. He represents a low-income neighborhood. These areas are often the most affected by civil asset forfeiture, and innocent owners may not be able to afford a lawyer to help retrieve their property.

In the end, the argument came down to the city’s need for cash. The fire department and schools are in need of money. The new police oversight board will cost an additional $1.5 million. More money is needed, and equitable sharing provides needed funding for law enforcement.

In voting in favor of continuing equitable sharing, Councilman Doug Pardue, a former police officer vented his frustration. “It’s obvious the damn council isn’t going to help them [Nashville law enforcement],” he said. “They beg for equipment, and that’s what this money is used for.”

The measure passed 25-5 in favor with two abstentions.

Civil Asset Forfeiture Attorney

If your lawful property has been seized, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced civil forfeiture defense attorneys.

Sources

2018-11-30 Civil Forfeiture Approval Shows Nashville is Desperate for Cash

2018-05-22 Tennessee Will Require Law Enforcement to Report Their Forfeiture Spending

Tennessee Legislature Passes Civil Asset Forfeiture Reforms

By

Tennessee_Highway_Patrol_vehicle-300x190A bill giving new protections for people involved in civil asset forfeiture has now passed both houses of the Tennessee legislature. If Governor Haslam signs it into law, it may become easier for people to regain property seized by law enforcement.

The bill passed the State Senate with unanimous support and was supported by both civil rights and libertarian groups. “This is a rare bill because you had the ACLU on one side and the Beacon Center on the other, and they both agreed on it,” said Sen. Todd Gardenhire (R-Chattanooga) who cosponsored the bill.

Civil Asset Forfeiture is a process where law enforcement officials can take possession of a person’s property or money if it is suspected of having been involved in criminal activity. It is legal in most states, and in Tennessee, property can be seized without a criminal conviction or even criminal charges being filed.

Prosecutors, police chiefs and sheriffs have strongly supported the practice, arguing it targets suspected criminals such as drug traffickers. Law enforcement uses the proceeds of civil asset forfeiture to fund future operations; something critics argue amounts to policing for profit.

During hearings last year, the House Civil Justice Committee heard horror stories of Tennessean’s attempts to regain their property after it was wrongfully seized. An attorney from Knoxville spoke of how a woman had been stopped under suspicion of drunken driving. She was charged for possessing prescription drugs for sale; these were later shown to be antacids bought over the counter.

Law enforcement seized her car and the $11,000 in cash she had on her. The cash turned out to be the legitimate proceeds from the sale of her late mother’s property. Although the woman’s case was thrown out, she had a confusing and lengthy fight to regain both her vehicle and her money.

In another case, Mount Juliet police went to the home of Lewis Cain and seized his BMW. Law enforcement said Cain’s son had been seen selling cocaine from the car. The ACLU argued law enforcement had taken the car without a forfeiture warrant and so had violated Cain’s rights under the Fourth Amendment. Further, the ACLU said Cain’s son had been misrepresented as owner of the car in police reports.

The Tennessee Department of Safety and Homeland Security later dismissed the state’s claim to the car and returned it to Cain.

“I have the utmost respect for law enforcement, but the Fourth Amendment has to mean something,” said Cain. “I hope that now the police learn that they can’t just take people’s property for no reason.”

The new bill states that the property owner must be notified within five business days of the Notice of Forfeiture Warrant Hearing. Wrongfully seized property must be returned within five business days after an order of dismissal. The bill also says that seizing agencies must pay attorney fees in cases of wrongful seizure, not to exceed 25 percent of the property or $3,000, whichever is the lesser.

“Tennesseans should not have their property seized without being charged with, or convicted of, a crime. … This bill brings much-needed reforms which should drastically curtail the practice of civil asset forfeiture,” said Tori Venable, executive director of Americans for Prosperity–Tennessee.

Civil Asset Forfeiture Attorney

If your lawful property has been seized, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced civil forfeiture defense attorneys.

Sources

04-05-2018 State Senate Unanimously Passes bill Sponsored by Sen. Todd Gardenhire

04-05-2018 Civil Asset Forfeiture Reform Bill Passes Tennessee Senate