In the wake of a U.S. Customs and Immigration Services campaign, “Operation Clean-Up,” which was carried out nationally on Wednesday [February 21] night, about 195 undocumented immigrants, among them workers at the Hard Rock Cafe and ESPN Zone in Manhattan's Times Square, were arrested.
The operation was directed at Rosenbaum-Cunningham International (RCI), a cleaning and maintenance services company, which was accused of financial fraud and of employing undocumented workers, ICE officials said. The majority of those arrested were from Mexico, Honduras, El Salvador, Guatemala and Haiti.
ICE officials also stated that the total number of those arrested this week is 220 individuals, who were detained at 63 places in 17 states and in Washington, DC. This number includes the 195 who were arrested between Wednesday night and early Thursday morning, who face administrative charges of violating immigration laws.
The employees of the Times Square establishments, who spoke with Hoy and asked not to be identified, indicated that they are worried about the matter. Although they did not know well any of the workers arrested, they thought the operation was an injustice against Hispanic workers in New York City.
“I think it's not fair because they are honorable people who only want to work,” said one waitress. “I knew one of the cleaning men; he's got two children and his wife is pregnant with a third. It's a painful situation.”
Another employee of one of the prestigious restaurant chains claimed that ICE officials did not only arrests employees who worked for Rosenbaum-Cunningham International (RCI). “I heard they also took some of the kitchen guys, but since this all happened during the night shift, we're not sure,” said a Mexican who works the day shift.
The investigation led by ICE officials began 20 months ago with another case against Rosenbaum-Cunningham International that involved service personnel at the Grand Traverse Resort in western Michigan.
The three RCI principal executives – Richard M. Rosenbaum, Edward Scott Cunningham and Christina Flocken – were accused of fraud and tax crimes. They were named as “the principal directors of RCI, who not only knowingly hired illegal aliens and covered it up but also conspired to cheat the government out of more than $18 million in taxes on the wages, and now face 23 charges,” said Julie Meyers, an ICE assistant secretary.
“Some employees were afraid to come to work today, and asked those of us with papers to warn them if immigration officials come again,” said a worker at ESPN Zone.
Besides the Hard Rock Cafe and ESPN Zone, the authorities also investigated on February 19 the Manhattan branch of Planet Hollywood. Other business establishments that were raided nationally include House of Blues, Dave and Busters, Yardhouse, and China Grill.
Although neither Hard Rock nor ESPN Zone provided information on the number of workers arrested in their locations, Hard Rock said that, in addition to its Manhattan branch, Hard Rock Café in upstate had also been hit by the round-up.
“As soon as we heard about the investigation, we terminated our relationship with Rosenbaum-Cunningham International. Hard Rock was not aware of these irregularities, and we are cooperating completely with all national and local authorities in this matter,” said a spokesperson for the restaurant chain.
ESPN Zone refused to comment on the matter, and several phone calls by Hoy to RCI, which was registered in Nevada but based in Miami, Florida, were not returned.
Aside from Manhattan, “Operation Clean-Up” was also carried out in Farmingdale, Long Island, and Atlantic City.
Accusations against RCI
* According to the report, RCI clients, which include prestigious restaurant and hotel chains, paid it more than $54,327,000 between 2001 and 2005.
* According to the charges, by not paying the federal taxes, Social Security and Medicare of the illegal employees, RCI evaded the payment of some $18,640,000 in employee taxes.
* The charges indicate that the company executives Rosenbaum, Cunningham and Flocken spent approximately 63 percent of these funds on RCI operations and divided the remaining 37 percent among themselves for “personal expenses and in order to carry on an extravagant lifestyle.”
* The maximum sentence faced by the accused for getting rich on the backs of illegal workers is 10 years in prison, plus 5 years for tax evasion. If found guilty, they must also pay $18 million to the Treasury.
