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Tyson Foods indicted
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December 19, 2001: 1:36 p.m. ET
Company, workers charged with conspiracy to smuggle illegal immigrants into U.S.
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NEW YORK (CNN/Money) - The U.S. Department of Justice indicted Tyson Foods Inc. and six of its employees on a charge of conspiracy to smuggle illegal immigrants into the United States to work at its poultry plants.
Tyson (TSN: down $0.68 to $10.91, Research, Estimates), the world's top poultry producer, confirmed the 36-count indictment Wednesday, which comes at the end of two-and-a-half year investigation. Fifteen plants in nine states were identified in the charges.
The Justice Department said Tyson Foods "cultivated a corporate culture in which the hiring of illegal alien workers was condoned in order to meet production goals and cut costs to maximize profits." Justice officials described a scheme by which the defendants requested delivery of illegal aliens to work at Tyson plants in the United States and aided and abetted them in obtaining false documents.
Tyson called claims by prosecutors of a company-wide conspiracy "absolutely false."
Ken Kimbro, senior vice president for human resources, said the "specific charges are limited to a few managers who were acting outside of company policy at five of our 57 poultry processing plants."
"As a result of an internal investigation several months ago, four mangers named in the indictment were terminated, and two others are now on administrative leave, pending the outcome of this matter," Kimbro said.
"This indictment came because Tyson refused to agree to the prosecutor's outrageous financial demands," he added "While we are disappointed that it has come to this, we will vigorously defend our business, our diverse workforce and our reputation."
Tyson said it has completed "an extensive review" of employee documents and fired employees without proper documentation. The company also said it stopped using temporary employment agencies to fill full-time positions.
David Nelson, a managing director with Credit Suisse First Boston who covers the food sector, said the indictments come as a surprise, but noted labor remains one of the biggest challenges for the industry.
Tyson previously encountered legal problems when top executives at the firm were accused of providing illegal gratuities to former U.S. Agriculture Secretary Mike Espy and to Espy's girlfriend.
Tyson agreed to pay a $6 million fine in 1998 to settle allegations that it provided thousands of dollars in gifts, including football tickets, plane fares and limousine rentals, to Espy while he was office in the Clinton administration.
A federal jury acquitted Espy on all charges of improperly accepting gifts and travel from firms he regulated. Espy resigned in 1994 amid the charges. 
-- from staff and wire reports
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