The leaders of an Erlanger commercial drywall firm have admitted the company violated federal immigration laws from 2002 through 2006 to try and maintain a reliable work force.
Spectrum Interiors, Inc., and its sole director, Jeffrey Wolnitzek, pled guilty November 21 to a charge that they "conspired to conceal, harbor and shield aliens from detection for the purpose of commercial advantage and private financial gain."
As part of a negotiated plea agreement with federal prosecutors, Spectrum agreed to forfeit $2 million earned from August 2002 through November of 2006.
In a prepared statement, Spectrum officials said they admitted using subcontractors who employed workers not authorized to be in the United States.
"Spectrum pled guilty because it realized it had made mistakes and wanted to do the right thing to correct those mistakes," according to the statement. "Spectrum fired those subcontractors a year ago and has been fully compliant with immigration laws concerning its subcontractors since that time."
The case began on November 29, 2006, when 31 men and women believed to be undocumented workers were arrested in Northern Kentucky.
Some were apprehended near The Home Depot in Florence and others were detained in the vicinity of The Ascent at Roebling Bridge construction site in Covington.
Spectrum was a subcontractor on the project for Dugan and Meyers at the time and remains in that capacity.
Two days after those arrests, Spectrum Vice-President Jean Robison said the firm needed 10 extra workers on the Ascent project that week.
"We contracted with a sub who we had qualified before and asked them to supply us those 10 work with us on the project as a sub," Robison said.
She added that subcontractors used by Spectrum had to sign contracts promising they wouldn't use undocumented workers.
"We do not want anything to do with anybody that's illegal," she said. "Do not bring them to our project. Don't work them."
Federal agents apparently didn't buy those statements.
They spent nearly a year preparing a case against Spectrum that led to the guilty plea.
The names of the subcontractors who worked with Spectrum haven't been released by federal prosecutors.
Part of the plea agreement in the case remains sealed by order of the U.S. District Court.
It's the first instance of a company being convicted of immigration law violations stemming from numerous raids in Northern Kentucky during 2006.
In May of 2006 over 80 undocumented workers employed by subcontractors of Fischer Homes were arrested in Boone County.
Several Fischer Homes supervisors were initially charged in the case, but those counts were alter dismissed.
Other commercial drywall firms had followed the Spectrum case very closely.
One was OK Interiors in Forest Park.
President Steve Schramm said he anticipated Spectrum's conviction, but didn't think it would happen as fast as it did.
"When you're guilty, you're guilty," Schramm said. "I guess they decided to get it over with."
Schramm said he hopes the plea will send a message to other firms that either use undocumented workers or are considering doing so.
"My hope hope is over time the knowledge as it filters through the industry will catch some of these guys that may want to choose to play the same game," Schramm added. "I'm not convinced that will happen."
Frank Reynolds and Mark Galea of the Southwest Ohio Regional Council of Carpenters say they're aren't sure either.
Galea said he's already heard that the subcontractors who once worked for Spectrum are still in business in the Tri-state.
"They've moved on. They're working for other employers in the community and continuing on in the same manner," Galea added.
Schramm said he's heard the same thing.
"They've just shifted allegiances and are working for other contractors," said Schramm.
Reynolds maintains that his organization has tried repeatedly to get the word out about firms allegedly using undocumented workers and the plea means there's finally been some movement toward solving the problem.
"We're finally seeing some of the bad apples – the folks that are out there cheating and actually cutting the standards for legitimate employers out there – have to face the music," said Reynolds.
The practice of companies hiring subcontractors who, in turn, hire other subcontractors is known in the construction industry as "layering," which Galea says allows firms at the top to avoid their responsibility to pay living wages or their fair share of taxes.
"It's rampant throughout the community," said Galea. "It continues day-in and day-out."
Schramm said he agrees with that.
"As long as you're willing to allow someone to work for $5.00 an hour, basically not a living wage, and let companies take advantage of that, it's going to exist," Schramm added.
The pay package for OK Interiors personnel is around $36.00 per hour, including wages, benefits and taxes.
The message to the construction industry is clear, according to Reynolds. "You have to play by the rules and live by the law."
Dan Dugan, Dugan and Meyers' Project Manager for The Ascent at Roebling Bridge, said Spectrum has been a good, loyal subcontractor on the job during construction.
However, he added, "The plea sends a very serious message to private business owners."
Spectrum officials say they've heard it loud and clear.
Their statement included the words, "Spectrum apologizes for its shortcomings to the general contractors who have relied on it for excellent on-time drywall-related work and to the citizens of the communities in which Spectrum operates and its employees live. It pledges to continue to provide the same excellent and on-time work and meet its legal responsibilities."
Sentencing in the case has been set for February 29, 2008, at 9:15 a.m. before Judge David Bunning at U.S. District Court in Covington.
