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FOR IMMEDIATE RELEASE
ANGELA DODGE

Jan. 24, 2012

PUBLIC AFFAIRS OFFICER
(713) 567-9388

Two Companies Admit to Hiring Illegal Aliens, Each Forfeit $2 Million

HOUSTON - Atrium Companies, the owner of Houston-based Champion Window, and Advanced Containment Systems Inc. (ACSI), have agreed to adhere to revised immigration compliance programs and to each pay $2 million as forfeited funds to the Department of Homeland Security related to funds paid to facilitate the employment of illegal workers, United States Attorney Kenneth Magidson announced today along with Robert Rutt, special agent in charge of Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI). For its part, the United States has agreed not to criminally prosecute the companies.

“These non-prosecution agreements require each company to continue their substantial remedial measures to address past immigration violations, the payment of a significant penalty and the company’s continued cooperation in an ongoing criminal investigation, while also taking into consideration the collateral consequences that a criminal prosecution would have on the company’s ongoing business concerns,” said Magidson.

ACSI is a company located in South Houston that designs and manufactures custom emergency response vehicles and trailers. ACSI offers emergency decontamination systems, restroom and shower trailers, surge systems, mobile command centers, abatement equipment, mobile laboratory facilities and interchangeable pods. 

Atrium Companies is the largest manufacturer and distributor of residential vinyl and aluminum windows and patio doors in the United States with a total workforce of approximately 3,700 employees. The company operates 13 subsidiaries located in seven different states and Canada.

“These forfeitures represent companies who failed to comply with our nation’s labor laws,” said Rutt. “Employers who knowingly hire an illegal workforce contribute to illegal immigration and decrease lawful employment opportunities across the nation.”

Both companies received multiple notices from the Social Security Administration (SSA) known as “no-match letters,” which indicated employee names and Social Security numbers did not match SSA records. The companies failed to take corrective measures, resulting in the continued employment of the undocumented aliens. For ACSI, this resulted in approximately $2 million in wages paid to these undocumented aliens between 2005 and 2009, while Champion derived at least $2 million in revenue from the sales of its products manufactured and services provided with the use of its predominantly illegal workforce from 2006 through 2010.

In February 2011, ICE-HSI completed an I-9 (employment eligibility verification forms) audit on ACSI that revealed that from 2005 to 2009, approximately 44% of the workforce at the ACSI facility were undocumented aliens, many employed with numerous “egregiously suspect” identification documents, including misspellings of agency names and/or containing the words “novelty item.” In November 2009, ACSI ran all of their employees’ names through E-Verify, to determine their employment eligibility and terminated those determined to be illegal aliens unauthorized to work in the U.S. ACSI has been fully cooperative and has taken substantial measures to ensure compliance with immigration law in its hiring practices.

Similarly, Champion had engaged in a pattern and practice of hiring undocumented workers for years prior to its acquisition by Atrium Companies in June 2006. For years, Champion managers ignored the requirements of the Immigration and Nationality Act (INA) by falsely attesting on I-9 forms that work authorization documents presented by new hires appeared genuine. An audit conducted by ICE-HSI in early 2011 revealed that approximately 269 of Champion’s 451-person workforce consisted of undocumented aliens. At the request of the government, all of the undocumented aliens were terminated from Champion by the end of April 2011.

The investigation also revealed that, since acquiring Champion, management at Atrium had become aware of the possibility of large numbers of undocumented aliens being employed at Champion’s Houston factory. A follow-up audit conducted by ICE-HSI of Atrium Companies’ remaining 12 subsidiaries in May 2011 revealed that approximately 8.3% of the parent company’s 3,382 employees (excluding Champion employees) were undocumented aliens. All of these workers were terminated within a matter of weeks.  

Since December 2010, Atrium Companies has taken substantial remedial measures to ensure compliance with immigration law in its hiring process, revising its immigration compliance procedures to include new policies concerning the proper completion, retention and auditing of I-9 forms and for responding to SSA no match letters. Under the terms of the non-prosecution agreement, Atrium Companies must also hire a full-time chief compliance officer and continue to consult with immigration counsel in order to ensure the legality of its workforce.  

The cases against ACSI and Champion were handled by Assistant United States Attorneys Kebharu H. Smith and David Searle, respectively.