Thursday, December 31, 2009

Pilgrim's Pride to pay $4.5M in immigration case; Pilgrim family members demoted, ousted by JBS

Fresh out of a bankruptcy that left some of its contract farmers holding mortgages for chickenhouses that no longer had plants to supply, Pilgrim's Pride Corp. has agreed to pay the federal government $4.5 million "to settle a two-year investigation into identity theft and hiring people not authorized to work in the United States," Rita Jane Gabbett of MeatingPlace reports. "As part of the settlement, Pilgrim's Pride recognized that its voluntary compliance programs can be enhanced to more accurately identify unauthorized persons who seek or gain employment through identity fraud or other unlawful means."

The agreement was with the U.S. attorney for the Eastern District of Texas and the Immigration and Customs Enforcement (ICE) agency. ICE raided five Pilgrim's Pride locations in 2007 and 2008, finding 338 unauthorized workers, but no civil or criminal charges were filed. "The news comes days after Pilgrim's Pride announced it had emerged from Chapter 11 bankruptcy after completing a 13-month restructuring that included selling a 64 percent share in the company to JBS USA," Gabbett notes.

Meanwhile, the chief operating officer of JBS, Wesley Mendonca Batista, has replaced Lonnie "Bo" Pilgrim as chairman of Pilgrim's Pride, and Lonnie Ken Pilgrim, the company's vice president, and Richard Cogdill, its chief financial officer, have been removed, Ann Bagel Storck of MeatingPlace reports, citing a filing with the Securities and Exchange Commission.

No comments: