Texas man sentenced for extorting Idaho farmworkers, filing false tax returns
BOISE – A Texas man was sentenced to more than two years in federal prison for extorting H-2A agricultural workers and filing false tax returns, according to U.S. Attorney Josh Hurwit.
Ernesto Garza, 62, of Alamo, Texas, was sentenced to 27 months in prison by U.S. District Judge Amanda K. Brailsford. Garza will also serve three years of supervised release and was ordered to pay $621,724 in restitution to his victims.
“Protecting the integrity of the H-2A visa program and ensuring lawful treatment of workers is important for Idaho’s agricultural industry,” Hurwit said in a news release. “This case should send a clear message that we will not tolerate the exploitation of agricultural workers in Idaho.”
Garza worked as a supervisor and foreman for F.D.C., an agricultural services company that operates farms across Idaho, including in Glenns Ferry. According to court records, he falsified payroll timesheets for H-2A workers and pocketed money by asking workers to return cash for the extra hours he reported.
From 2014 to 2019, Garza also charged unauthorized fees ranging from $750 to $2,500 to certain H-2A workers without the company’s knowledge. Workers paid these fees out of fear of losing their jobs or not being allowed to return to the farm under the H-2A program in subsequent years. Under program regulations, Garza was not permitted to collect such fees.
In addition to the extortion, Garza deposited around $493,153 of unreported income into his personal bank accounts between 2013 and 2019. The income came from the extortion scheme and a separate farm-related fraud. He failed to disclose the income on his tax returns, leading to charges of filing false tax returns.
The H-2A program allows U.S. employers to bring foreign workers to the country for temporary agricultural jobs when there are not enough U.S. workers available to fill the positions.
Quentin Heiden, special agent-in-charge of the U.S. Department of Labor’s Office of Inspector General, said Garza’s sentence serves as a warning to those who abuse the H-2A program.
“For several years, Ernesto Garza exploited and extorted H-2A agricultural workers for personal financial gain,” he said.