Danny Hendon, Identity Theft Conspiracy, Arizona 2014

A multi-year scheme to employ unauthorized aliens has landed Danny Hendon, 64, of Paradise Valley, Ariz., in hot water. Hendon, the former owner of Danny’s Car Wash, was sentenced to 12 months in prison, followed by 12 months of home confinement, for overseeing the scheme.

Hendon, who served as a manager or supervisor at Danny’s Family Car Wash, pleaded guilty to the felony offense of conspiracy to commit identity theft. The scheme, which began in mid-2011, involved rehireing over 230 unauthorized aliens who had previously been terminated.

These aliens routinely used someone else’s identification in order to pass their E-Verify background check, and DFC’s management was aware of – and often affirmatively facilitated – these identity-theft efforts.

The investigation, conducted by the Department of Homeland Security, Homeland Security Investigations, revealed that Hendon instructed the company’s managers to ‘bring back’ the old employees, despite some managers expressing discomfort with the instruction.

Hendon’s actions not only harmed the individuals whose identities were stolen but also unfairly competed with businesses that sought to play by the rules with respect to their labor costs and practices.

U.S. Attorney John Leonardo stated, ‘Today’s sentences should send a strong message to the Arizona business community – companies that knowingly employ unauthorized aliens will be punished severely.’

As a result of the scheme, DFC was forced to forfeit over $156,000 and divest itself of any future ownership, managerial, or profit-sharing interest in the DFC organization.

Hendon’s case is a reminder that companies that exploit illegal alien labor will face severe consequences. ‘These sentences again give notice to employers who exploit illegal alien labor about the consequences of violating our nation’s laws,’ said Matt Allen, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Arizona.

Hendon’s 12-month prison sentence will be followed by 12 months of home confinement. The remaining defendants received sentences ranging from probation to three months in prison.

Case numbers: CR-13-1143, 14-108, 14-301, 14-990. Release number: 2014-068 Danny’s Family Car Wash.

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