False Documents—Ralphs Supermarket

Federal prosecutors have alleged that the Ralphs supermarket chain hired hundreds of workers under fake names during the 2003 grocery workers’ strike and lockout in Southern California.^[1] According to the 53-count federal criminal indictment, which is 106-pages long, Ralphs engaged in a “companywide course of criminal conduct involving the hiring of locked-out employees under false names, Social Security numbers, and documentation.”^[2] To cover up the practices, Ralphs allegedly “sent the locked-out employees to staff markets far from the outlets at which they regularly worked,” with some of the workers falsifying job histories and wearing name tags “bearing their bogus names.”^[3]

Nearly 1,000 union clerks and butchers were hired during the lockout.^[4] However, Ralphs spokeswoman, Lynn Marmer, acknowledges only “that during the strike about 200 Ralphs employees worked using false Social Security numbers and we regret that that happened.”^[5]

The chain has been charged with: conspiracy, false representation of a Social Security number, identity fraud, false statements, money laundering conspiracy, money laundering, false statements and concealment of facts relating to an employee benefit plan, and obstruction of justice.^[6]

Conspiracy
Under 18 U.S.C. § 371, it is a crime for a person to conspire with at least one other person to commit an offense against the United States, and then do an overt act in furtherance of that conspiracy. The punishment for a violation of section 371 is a fine, imprisonment for up to 5 years, or both.

False Representation of a SSN
Under 42 U.S.C. § 408(a)(7)(B), it is a crime for a person having the purpose of obtaining anything of value from any person to, with the intent to deceive, falsely represent a number to be the SSN given to him, when in fact it is not. The punishment for violating this section is a fine, imprisonment for up to 5 years or both.

Identity Fraud
Under 18 U.S.C. § 1028(a)(7), it is a crime for a person to knowingly transfer or use, without lawful authority, a means of identification of another person with the intent to commit any unlawful activity. The means of identification must either be issued under the authority of the United States, or purport to be so issued.^[7] The punishment for a violation of section 1028(a)(7) is a fine, imprisonment for up to 3 years, or both.^[8]

False Statements
Ralphs is charged with two separate violation of the false statements statute. The first is under 18 U.S.C. § 1001(a)(1), which makes it a crime for a person to, in any matter within the jurisdiction of the Executive branch, knowingly and willingly, falsify, conceal, or cover up, by any trick, scheme, or device a material fact. The second is under 18 U.S.C. § 1001(a)(2), which makes it a crime for a person, in any matter within the jurisdiction of the Executive branch, to make any materially false, fictitious, or fraudulent statement or representation. The punishment for violating either provision of section 1001 is a fine, imprisonment for up to 5 years, or both.

Money Laundering Conspiracy and Money Laundering
Conspiracy to commit money laundering is covered by 18 U.S.C. § 1956(h), which states that any person who conspires to commit a money laundering offense, will be punished in the same way as a completed money laundering offense. There is no overt act requirement for this type of conspiracy. Money laundering in this case is covered by 18 U.S.C. § 1956(a)(1)(B)(i), which makes it a crime for a person to conduct a financial transaction knowing that it involves the proceeds of unlawful activity, to conceal or disguise the nature, location, source, ownership, or control of the proceeds of the unlawful activity. The unlawful activity in question is identity fraud.^[9] The punishment for a violation of section 1956(a)(1) is a fine of the greater of $500,000 or twice the value of the property involved, imprisonment for up to 20 years, or both.

False Statements and Concealment of Facts Relating to an Employee Benefit Plan
Under 18 U.S.C. § 1027, it is a crime for a person to make any false statement or representation of fact on employee retirement forms, knowing that the statements are false. It is also a crime to attempt to cover up, conceal, or fail to disclose required information that is necessary for verification. The punishment for violating this section is a fine, imprisonment for up to 5 years or both.

Obstruction of Justice
Finally, under 18 U.S.C. § 1503(a), it is a crime for a person to corruptly influence, obstruct, or impede the due administration of justice. The punishment for a violation of section 1503(a) is a fine, imprisonment for up to 10 years, or both.

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[1] Jeremiah Marquez, Ralph’s Indicted in Strike Crimes, San Jose Mercury News, Dec. 16, 2005.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] US Attorneys Office, Press Release: Federal Grand Jury Indicts Ralphs Grocery Company for Illegally Rehiring Workers Locked Out During 2003-04 Labor Dispute Under False Identities, Dec. 15, 2005.
[7] 18 U.S.C. § 1028(c)(1).
[8] Id. § 1028(b)(2)(B).
[9] Id. § 1956(c)(7)(A) (incorporating an offense found in 18 U.S.C. § 1961(1)).