BOISE – A former farm foreman has been sentenced to 27 months in federal prison for extorting H-2A agricultural workers and filing a false tax return, announced U.S. Attorney Josh Hurwit today.
Ernesto Garza, 62, of Alamo, Texas, was also sentenced to three years supervised release and ordered to pay $621,724 in restitution to his many victims, U.S. District Judge Amanda K. Brailsford ruled.
According to court records, Garza worked as a supervisor and foreman of farm workers at F.D.C., an agricultural services company that operates farms throughout Idaho, including in Glenns Ferry. F.D.C. employs H-2A agricultural workers each year from approximately March to November.
While Garza served as supervisor and foreman for the farm, he prepared and submitted payroll timesheets for the H-2A workers, but regularly falsified those timesheets by adding extra hours and then asked the vulnerable workers to return cash to him for the extra hours.
Between at least 2014 and 2019, Garza also charged certain H-2A agricultural workers an unauthorized flat fee to work at F.D.C. under the H-2A program, with the fee ranging from approximately $750 to $2,500. Garza charged the fees without F.D.C.’s knowledge or approval, and the H-2A agricultural workers paid the fees to Garza each year because they feared that they would be fired or not allowed to return to F.D.C. under the H-2A program in future years if they did not pay.
Between 2013 and 2019, Garza also deposited approximately $493,153 in unreported income into his personal bank accounts, in part, from the extortion described above as well as a separate scheme to defraud the farm. Garza did not disclose the additional income on his tax return for the years 2013 through 2019, which resulted in the filing of false tax returns.
“Protecting the integrity of the H2-A visa program and ensuring the lawful treatment of workers is important for our agricultural industry, which is a bedrock of Idaho’s economy and way of life,” said U.S. Attorney Hurwit. “I am grateful for the work of the Idaho State Police, along with the IRS, to hold this defendant accountable. This case should send a clear message that we will not tolerate the exploitation of agricultural workers in Idaho.”
For this case, the defendant’s exact criminal charges include extortion and filing a false tax return. The city and state where this crime occurred are Boise, Idaho. The exact date of this crime is not specified in the source. The defendant’s sentence includes 27 months in federal prison. The dollar amount of restitution ordered is $621,724.
Key Facts
- State: Idaho
- Category: White Collar Crime, Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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