Local
Monday, May 18, 2009
Labor bars employer who engaged in extensive fraud
By Ferdie de la Torre
Reporter
The Department of Labor has barred an employer from employing alien workers in the CNMI for a two-year period for engaging in extensive fraud in operating his businesses.
Labor Administrative Hearing Officer Jerry Cody referred its order against Soleman (his name and last name) to the Division of Revenue and Taxation.
“The evidence establishes a systematic pattern of fiscal mismanagement, neglect of business by this owner, and extensive fraud with respect to the issuance of sales receipts. Such business practices render any income and expense figures completely unreliable,” Cody said.
As of the date of the Labor hearing on June 3, 2008, Soleman operated a barracks rental, land clearing, charcoal manufacture and sale, and commercial cleaning.
The charcoal business was known as “Dajets Island Charcoal & Lime.”
Cody, however, allowed 10 employees of Soleman to seek new employers. Aalthough it is likely that some of these workers' jobs were mere sponsorships, he said the fact remains that other workers, in fact, produced charcoal for Soleman.
Cody said Labor did not examine individual workers to establish which of them have engaged in sponsorship versus legitimate charcoal manufacture.
“Therefore, the Hearing Officer finds that all workers should be granted transfer relief at this time,” he added.
According to Labor records, Soleman began employing or attempting to hire an increasing number of workers as “charcoal makers” for his charcoal business.
Soleman claimed that his charcoal business-making business was profitable and that he needed all of these workers to maintain and increase the capacity of his land clearing and charcoal businesses.
In April 2008, the Labor director denied a number of transfer applications submitted by Soleman due to failure to comply with a deficiency notice; income not justifying an additional hiring; salary records showed that not all workers are being paid; and suspected sponsorship.
Soleman and the 11 workers appealed.
Cody said that at the hearing, Soleman produced a number of sales receipt books regarding his charcoal sales.
Cody said the Labor director's examination showed that numerous entries in the books had been altered to make it appear that a greater number of bags of charcoal had been delivered and a greater amount of cash had been collected.
To document the fraud, the director obtained affidavits signed by the customers themselves attesting to the actual numbers of charcoal bags they had purchased and the prices they paid.
With respect to tax records, Cody said Soleman admitted under oath that he intentionally falsified the amount of revenue he claimed to have received in an attempt to reduce his tax payments.
Showing posts with label Jerry Cody. Show all posts
Showing posts with label Jerry Cody. Show all posts
Sunday, May 17, 2009
Wednesday, April 15, 2009
Local
Thursday, April 16, 2009
Labor uncovers massive sponsorship scheme
By Ferdie de la Torre
Reporter
The Department of Labor has uncovered a massive sponsorship scheme involving 24 alien workers who paid money to their “employer.”
Labor Administrative Hearing Officer Jerry Cody sanctioned Leon H. Lizama in the amount of $500 for each sponsorship submitted, for a total sanction of $12,000.
Cody permanently barred Lizama from employing foreign national workers in the CNMI.
Cody also referred Lizama's case to the Office of the Attorney General for possible criminal investigation.
The hearing officer ordered 19 alien workers to report to the Labor Enforcement Section to make arrangements for their repatriation.
Cody, however, allowed five other alien workers to seek new employers after they came to Labor, admitted the fraud, and assisted Labor with its investigation.
“Such assistance was instrumental in framing the department's case and establishing the truth with respect to this massive sponsorship scheme,” he noted.
Labor records showed that Lizama had represented to Labor that he owns and operates a commercial farm and a health supply service.
Labor began an investigation after it noticed that Lizama filed 23 transfer applications in 2007, while at the same time declining to renew six out of seven of his current employees.
Labor subsequently denied 24 of Lizama's applications. The 23 workers appealed the denial.
Lizama first denied engaging in any sponsorship, but then changed his story at the second hearing on July 7, 2008, admitting that all the applications were actually sponsorship agreements.
Under the arrangement, Lizama would file employment application offering non-existent jobs to workers in exchange for a payment from the worker.
The workers each paid $50 per month for three months. Each worker would be responsible for paying his or her labor processing fees, including bonding.
Cody said Lizama and the workers committed fraud against Labor by submitting permit applications that purported to evidence actual employment when, in fact these arrangements were nothing more than sponsorships.
Thursday, April 16, 2009
Labor uncovers massive sponsorship scheme
By Ferdie de la Torre
Reporter
The Department of Labor has uncovered a massive sponsorship scheme involving 24 alien workers who paid money to their “employer.”
Labor Administrative Hearing Officer Jerry Cody sanctioned Leon H. Lizama in the amount of $500 for each sponsorship submitted, for a total sanction of $12,000.
Cody permanently barred Lizama from employing foreign national workers in the CNMI.
Cody also referred Lizama's case to the Office of the Attorney General for possible criminal investigation.
The hearing officer ordered 19 alien workers to report to the Labor Enforcement Section to make arrangements for their repatriation.
Cody, however, allowed five other alien workers to seek new employers after they came to Labor, admitted the fraud, and assisted Labor with its investigation.
“Such assistance was instrumental in framing the department's case and establishing the truth with respect to this massive sponsorship scheme,” he noted.
Labor records showed that Lizama had represented to Labor that he owns and operates a commercial farm and a health supply service.
Labor began an investigation after it noticed that Lizama filed 23 transfer applications in 2007, while at the same time declining to renew six out of seven of his current employees.
Labor subsequently denied 24 of Lizama's applications. The 23 workers appealed the denial.
Lizama first denied engaging in any sponsorship, but then changed his story at the second hearing on July 7, 2008, admitting that all the applications were actually sponsorship agreements.
Under the arrangement, Lizama would file employment application offering non-existent jobs to workers in exchange for a payment from the worker.
The workers each paid $50 per month for three months. Each worker would be responsible for paying his or her labor processing fees, including bonding.
Cody said Lizama and the workers committed fraud against Labor by submitting permit applications that purported to evidence actual employment when, in fact these arrangements were nothing more than sponsorships.
Wednesday, March 26, 2008
Hearing Office To Address Wave of Denial Appeals
CNMI News
Thursday March 27, 2008
--------------------------------------------------------------------------------
‘Wave’ of appeals floods Labor
By Emmanuel T. Erediano
Variety News Staff
A “WAVE” of appeals from denial orders that were the “natural” result of resolving thousands of pending applications and labor cases is now hitting the Department of Labor’s administrative hearing office.
Labor hearing officer Jerry Cody, in an interview yesterday, said they will deal with a lot of appeals by taking action.
Starting next week, Cody said, the administrative hearing office will hold hearings or take appropriate actions on 40 denial appeals every Thursday.
He said he will be working with another hearing officer, Herbert Soll.
Cody said in the first two months of this year, the hearing office received over 250 denial appeals.
These appeals are not considered backlog but as the “natural” result of the labor division’s efforts in resolving 11,000 pending applications and labor cases of the previous years.
Labor Division Director Barry Hirshbein earlier said they have cleaned up the backlog, and will resolve all applications and labor cases in a short period of time.
Every time there is an increase in the number of cases the labor division resolves, the hearing office will deal with the same number of appeals.
Cody said they have already started announcing the names of the workers scheduled to appear for the hearing on denial appeals, and they will continue to make similar announcements every week.
Employees who have filed appeals with Labor should check the newspapers every Monday to see if they are among those scheduled for the Thursday hearing, Cody said.
Thursday March 27, 2008
--------------------------------------------------------------------------------
‘Wave’ of appeals floods Labor
By Emmanuel T. Erediano
Variety News Staff
A “WAVE” of appeals from denial orders that were the “natural” result of resolving thousands of pending applications and labor cases is now hitting the Department of Labor’s administrative hearing office.
Labor hearing officer Jerry Cody, in an interview yesterday, said they will deal with a lot of appeals by taking action.
Starting next week, Cody said, the administrative hearing office will hold hearings or take appropriate actions on 40 denial appeals every Thursday.
He said he will be working with another hearing officer, Herbert Soll.
Cody said in the first two months of this year, the hearing office received over 250 denial appeals.
These appeals are not considered backlog but as the “natural” result of the labor division’s efforts in resolving 11,000 pending applications and labor cases of the previous years.
Labor Division Director Barry Hirshbein earlier said they have cleaned up the backlog, and will resolve all applications and labor cases in a short period of time.
Every time there is an increase in the number of cases the labor division resolves, the hearing office will deal with the same number of appeals.
Cody said they have already started announcing the names of the workers scheduled to appear for the hearing on denial appeals, and they will continue to make similar announcements every week.
Employees who have filed appeals with Labor should check the newspapers every Monday to see if they are among those scheduled for the Thursday hearing, Cody said.
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