dl425's Blog

By Tim McGlone
The Virginian-Pilot
© May 1, 2008

NORFOLK

A federal judge sent a message to the commercial fishing community on Wednesday that getting caught employing illegal immigrants will land you in jail.

Despite calls for leniency from prosecution and defense attorneys, U.S. District Judge Raymond A. Jackson gave Yvonne Michelle Peabody, operator of the Peabody Corp., 90 days in prison for employing undocumented workers over a four-year period.

The Newport News-based Peabody Corp. owns a fleet of trawlers used mostly for scalloping. Michelle Peabody, as she is known, and her father, company founder William “Frankie” Peabody, pleaded guilty to employing illegal immigrants.

The elder Peabody was sentenced Wednesday to five months of home confinement with electronic monitoring. Jackson also ordered Michelle Peabody to serve four months of home detention after she gets out of custody.

The Peabodys previously agreed to pay $6.9 million in fines and forfeitures, which represents the profits they made using the undocumented workers. But the question of jail time remained unanswered as Jackson considered the backgrounds of the defendants and other factors.

“The court finds your conduct to be egregious,” Jackson told Michelle Peabody, noting that the government could have easily charged her with felony crimes.

As company vice president, Michelle Peabody handles day-to-day operations and was held largely responsible for employing 126 illegal immigrants over a four-year period, through 2006, a problem that law enforcement officials said is pervasive in the fishing industry.

Jackson gave a number of reasons for giving Peabody prison time but noted in particular her role as chairwoman of the law enforcement subcommittee of the regional fisheries council while conducting the illegal activity. The maximum sentence for her crimes was a year in prison.

Her attorney, Kenneth D. Bell, in arguing for leniency, said he’d never seen in 25 years of practice someone with no criminal record getting jail time for a first misdemeanor offense.

Michelle Peabody apologized to the judge and tried to explain why it happened.

“We never as a business or a family sat down and decided to hire illegals, but we did. We’re very sorry and I’m very sorry,” she said.

Assistant U.S. Attorney Joseph E. DePadilla recommended that she serve community confinement, such as in a halfway house, based on her cooperation with the government since her arrest.

He said she has assisted in a drug case. She also has assisted in another illegal immigrant case, her attorney said.

Both sides also agreed that the workers were treated and paid fairly.

The workers earned more than $10,000 per fishing trip, the prevailing wage for scallopers.

“During this investigation, no evidence of mistreatment of workers was uncovered,” DePadilla wrote in a court filing. “Peabody Corp. officers valued foreign born workers because they were diligent workers who did not complain.”

Peabody faced tougher punishment than her father because she also pleaded guilty to unauthorized access of a government computer.

She admitted that she obtained sensitive information from her one-time Coast Guard boyfriend. The boyfriend, Morris Wade Hughes, was convicted of related charges and is awaiting sentencing.

 

Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com