A federal judge ordered Baltimore, Maryland, U.S.A.-based Capt. Phip’s Seafood to pay a USD 240,000 (EUR 213,000) fine for visa fraud charges.
In addition, U.S. District Judge Ellen L. Hollander sentenced the company to three years of probation and sentenced Owner Phillip J. “Jamie” Harrington III to one year of probation, a USD 10,000 (EUR 8,877) fine, and a USD 5,000 (EUR 4,439) special assessment, the U.S. Attorney for the District of Maryland said in a news release. Harrington must also perform 100 hours of community service for unlawful employment of undocumented workers. Plus, Harrington and Captain Phip’s seafood must participate in a verification program for their employees and were debarred from participating in the H-2B visa program.
In September, Harrington III pleaded guilty to the charges stemming from illegal actions he took from 2013 through 2018, according to U.S. Attorney’s office.
“Over a five-year period, Capt. Phips Seafood and its owners engaged in a calculated pattern of visa fraud that not only deceived the government but also resulted in lower wages to their employees,” Acting U.S. Attorney for the District of Maryland Jonathan Lenzner said. “Rather than play by the rules that other businesses follow, the defendants manipulated the H2-B visa program for the sole purpose of increasing their profits at the expense of their employees and the fair market.”
From 2013 through 2018, Captain Phip’s routinely sought prevailing wage determinations for multiple job descriptions, and then filed petitions for H-2B visas for only the jobs with the lowest prevailing wage, regardless of the actual work duties of the employees, according to the news release.
Capt. Phip’s omissions about the full scope of the job duties to be performed by its temporary foreign workers resulted in the U.S. Department of Labor approving Capt. Phip’s to pay lower prevailing wage than it would have been authorized if Capt. Phip’s had provided truthful information.
Harrington is the owner and operator of several other businesses involved the production and distribution of ice as well as processing of seafood, rental machinery, housing development, oyster farming, and other ventures including: Easton Ice; Woodfield Ice; PJH Oyster; Two Sons R.S. LLC; Philson Properties LLC; Two Sons C.P. LLC; P&N Farms; Atlantic Rental LLC; DMS Hurlock, LLC; The Preserve at Wright’s Wharf Homeowners Association; and Super Transporter LLC.
In 2016, Capt. Phip’s requested and received prevailing wage determinations for three positions: ice-conveyor operators with a prevailing wage of USD 12.51 (EUR 11.11); oyster-production workers with a prevailing wage of USD 16.96 (EUR 15.00); and ice-machine operators (ice-production workers) with a prevailing wage of USD 11.10 (EUR 8.34).
Capt. Phip’s then filed a petition for ice production workers with the U.S. Citizenship and Immigration Services (USCIS). The petition was approved and the U.S. State Department issued 24 H-2B visas to non-immigrant Mexican nationals authorizing them to work for Capt. Phip’s as ice-production workers.
Once the Mexican ice production workers entered the U.S., Capt. Phip’s used them for jobs beyond ice production, including oyster processing, maintenance workers, truck drivers, and drivers’ assistants.
“Capt. Phip’s admits that it intentionally and falsely claimed that the foreign workers would only be engaged in ice production in order to pay them the lower prevailing wage,” the U.S. Attorney’s Office said.
