ICE raids Montoursville-area construction business, owner charged
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The owner of a Montoursville-area construction business is accused of running a corrupt organization by allegedly using illegal immigrants for unfair labor practices over the past two years, Montoursville police said.
Eight undocumented immigrants recently were taken into custody by Immigration Customs Enforcement (ICE) agents and the owner, Milton Nain Guerra, 41, of the 1200 block of Route 87, is facing charges, an affidavit by borough police Deputy Chief Clinton Gardner states.
Guerra was identified as the owner of Tool Masters Home Improvement Inc. He's been charged with the offenses of corrupt organization/control in enterprise and proceeds of unlawful activities. Search warrants were executed at two properties, 1278 and 1244 Route 87, Montoursville.
Guerra and his company allegedly benefited financially through a pattern of racketeering, according to the affidavit.
Police noted there were no W-2s, 1099s, pay stubs or other official state or federal related documents to indicate the proper taxes or other filings were done in relation to any employees. All payment transactions to employees were done in cash via a white envelope with their name, authorities said.
The employees interviewed also stated they were always paid in cash. The amount the employees stated they would make for anything over 40 hours was not fair compensation for overtime. It was the same amount they earned for straight time.
The employees interviewed stated they would work six days a week on average. None of them stated that they received any benefits. They were each charged $400 a month for rent.
According to a ledger recovered by police, the total amount of cash payments to employees dating back two years was nearly $1 million. A significant amount of cash was recovered between the two residences, totalling $15,000 to $20,000. Some of this cash was already marked specifically for payment for employees. Also discovered was Tool Master Home Improvement Inc.'s business bank account through a bank located in the borough.
In conjunction with their illegal status and crammed living conditions (up to three adult beds in a small bedroom), Guerra's disassociation from his own employees when confronted about their work status and pay, rent costs, unfair wages for full-time employees, lack of benefits, lack of any official financial state or federal work documentation, it is clear Guerra was exploiting the employees for labor, according to the affidavit.
It is probable that Guerra was able to unfairly underbid competition on work projects. It is probable he benefitted significantly from these corrupt practices. It is clear that over the course of two years, through his enterprise that he benefitted financially through a pattern of racketeering (dealing in illicit funds).
He's been arraigned by and was released on $50,000 unsecured bail. First Assistant District Attorney Martin Wade is prosecuting the case, according to the documents at District Judge Gary Whiteman's.