Five former employees of New Bedford, Massachusetts, U.S.A.-based seafood processor Marder Trawling have sued the company, claiming the then-manager of the plant extorted money from them as a condition of work.
The lawsuit also names staffing agency Workforce Unlimited and the former manager, Francisco Ixcotoyac Dionicio, as defendants.
“Workers, both directly hired by Marder and contracted to work at Marder through Workforce, were forced to pay extorted cash payments of approximately USD 100 (EUR 86.60) per week to the Plant Manager at Marder as a condition of employment in violation of federal and Massachusetts law,” the plaintiffs allege in the lawsuit.
Other workers residing in Rhode Island were also required to pay Dionicio roughly USD 12.00 (EUR 10.40) per day to allegedly cover the cost of transportation from their homes to Marder’s facility, which Dionicio allegedly provided with a fleet of vans he owned.
In a statement provided to the New Bedford Light, Dionicio’s attorney denied the allegations in the lawsuit.
“He denies the claims,” he said. “He looks forward to the truth coming to light through the legal process.”
Marder Trawling told the newspaper Dizon-Acosta had been fired and May and that the company was cooperating with investigators.
“As we have regarding the earlier criminal accusations, Marder will cooperate with law enforcement regarding any alleged workplace financial crimes by this former employee,” the company said. “Marder Trawling will respond to the lawsuit through the legal process, but our focus remains where it has always been — on the safety, dignity, and well-being of our people.”
However, the plaintiffs argue that Marder either knew or should have known about the kickbacks, and claim that the scheme allowed them to pay Dionicio less because he was supplementing his income through extortions and helped keep labor costs low by paying close to the minimum wage.
The former employees claim the extortion scheme began in 2021 and continued through May 2025.
Workers reached by the New Bedford Light claimed that they felt compelled to make the payments paycheck after paycheck in order to keep their jobs.
“I paid him about USD 5,000 (EUR 4,330),” an undocumented Guatemalan man from Providence told the newspaper. “I felt offended but I felt I had to do it for the work.”
Marder told the New Bedford Light it launched its own investigation after learning or the allegations in June.
“Upon learning of the criminal accusations against this former employee and completing our internal investigation, Marder Trawling took immediate steps to strengthen workplace safeguards,” the company said. “As part of our ongoing commitment to transparency and employee welfare, the company has engaged an independent, highly respected firm to conduct additional workplace training.