(September 5, 2008)-- Shipley Do-Nut Flour and Supply Co., Inc. pleaded guilty Friday to conspiring to harbor illegal immigrants, federal prosecutors said.
Three former and current managers of the Houston company also pleaded guilty Friday to hiring or continuing to hire illegal aliens, prosecutors said.
The case is part of the government's latest crackdown on employers who hire illegal immigrants.
The company pleaded guilty through its president Lawrence Shipley III to conspiring to harbor illegal immigrants.
Sentencing is scheduled for Dec. 19.
Shipley Do-Nut faces a maximum fine of $500,000 and up to five years probation.
The company agreed to implement new procedures to prevent future violation of federal immigration laws and will also pay $1.3 million forfeiture to the government.
Shipley Do-Nuts has some 200 franchises across Texas, Alabama, Arkansas, Louisiana, Mississippi and Tennessee including more than a dozen in Central Texas.
In March, the company settled a lawsuit accusing some supervisors of sexually harassing and regularly using slurs against Mexican immigrant employees.
A dozen former and current warehouse workers alleged abuse and retaliation in the discrimination lawsuit, which was filed in June 2006.
The Equal Employment Opportunity Commission had investigated and determined the workers had reasonable cause to sue.
As part of the confidential agreement, Houston-based Shipley admitted no wrongdoing and the workers dropped their claims.
U.S. District Judge Nancy Atlas of Houston dismissed the case after the settlement was reached.
In the suit, the workers said that Hispanic and white supervisors threatened them with deportation and referred to them as "wetbacks."
The workers also alleged that supervisors forced them to work off the clock, provided few breaks and demanded money in exchange for vacations or permission to see a doctor when injured on the job.
The family-owned Shipley denied the allegations.
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