(The following report appeared at CNN.com on March 18.)
WASHINGTON, D.C. — Retail giant Wal-Mart will escape criminal sanctions but pay $11 million to settle claims stemming from a long-running federal investigation of illegal workers hired by the company’s cleaning contractors, CNN has learned.
The settlement, scheduled to be announced Friday, also calls for $4 million in criminal forfeitures by 12 firms Wal-Mart (Research) hired to provide janitorial services, sources familiar with the agreement said. Those sources say some individuals associated with the contractors have agreed to plead guilty to federal violations, but no details were available Thursday night.
The investigation was led by Immigration and Customs Enforcement agents and federal prosecutors in Pennsylvania. It produced 245 arrests of undocumented workers in 2003.
Neither ICE nor Justice Department officials would confirm the settlement. But Gil Garcia, a lawyer for those arrested in the raids, said the settlement will result in pending criminal cases against his clients being dropped.
“I believe justice has been served,” Garcia said in a statement issued to CNN. “I think this is very good for the government, because it shows that the law has been enforced. I also believe that this is good for Wal-Mart, because it demonstrates that Wal-Mart is no longer adhering to the practice of hiring undocumented immigrants. And I also believe that it is good for the undocumented workers, because by their cooperation they may have a way to remain in the United States.”
Garcia said the company will not admit any wrongdoing or liability as part of the agreement.