Since about January 2008, the four logging companies conspired to defraud the government by bidding on U.S. Forest Service contracts to thin timber using illegal immigrants, the indictment said. By using illegal immigrant workers who were paid less than the prevailing wage, the companies were able to successfully bid lower than other companies — sometimes by as much as hundreds of thousands of dollars.
Prosecutors have charged four people who own and operate logging companies in the Black Hills of South Dakota with defrauding the federal government by circumventing contract requirements and employing illegal immigrant workers, U.S. Attorney Brendan Johnson said Thursday.
A federal indictment unsealed Thursday afternoon accuses Angel Munoz-Escalante, who owns and operates Munoz Logging and Construction, Aurelio Munoz-Escalante, owner and operator of Black Hills Thinning, Rogelio Escalante, who owns and operates Escalante Logging, and Sergio Munoz-Escalante, owner and operator of SM Logging, with defrauding the United States and harboring illegal immigrants.
Also indicted for harboring illegal immigrants were Barbara Munoz, Christina Pourier, Mario Rangel and Miguel Soto, who all work at the companies, and Benjamin Munoz-Botello, who owns and operates Benja’s Mexican Store, a grocery store and check cashing business.
Ace Crawford, a spokeswoman for the U.S. Attorney’s Office, said seven of the nine were arrested Thursday and appeared in U.S. District Court for South Dakota in Rapid City to enter not guilty pleas.
Lawyers for eight of the defendants were either not listed on the indictment, were unavailable or would not comment. John Richard Murphy, the lawyer for Sergio Munoz-Escalante, said he was pleased the judge released his client on personal recognizance.
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