United States Attorney's Office District of Connecticut
Press Release

GUILFORD MAN, DAUGHTER CHARGED WITH CONSPIRING TO BRING ALIENS INTO THE U.S.
Seven-count indictment charges former owner of 10 Dunkin’ Donuts stores

Kevin J. O’Connor, United States Attorney for the District of Connecticut, joined by representatives from U.S. Immigration and Customs Enforcement (ICE), today announced that a federal grand jury sitting in Bridgeport has returned a seven-count Indictment charging JOSE CALHELHA, age 46, and his daughter, DIANA CALHELHA, age 22, both of 8 Greenwood Lane, Guilford, Connecticut, with illegally bringing aliens into the United States to work at JOSE CALHELHA’s Dunkin’ Donuts stores in Connecticut. JOSE and DIANA CALHELHA were arrested without incident by agents from ICE and the Social Security Administration, Office of the Inspector General, with the assistance of the Guilford Police, this morning at their residence. Both are scheduled to be arraigned this afternoon at 2:30 p.m. before United States Magistrate Judge Joan G. Margolis in New Haven. The Indictment was returned yesterday, January 19, and remained sealed until today’s arrests.

“The charges contained in this indictment reveal a brazen disregard for United States immigration, employment and tax laws,” U.S. Attorney O’Connor stated. “Business owners who knowingly violate these laws for profit, and take advantage of the aliens by subjecting them to unfair working conditions and pay, will be vigorously prosecuted by the federal government. This investigation is ongoing.”

According to the Indictment, from at least 2002 until July 2005, JOSE CALHELHA owned and operated 10 Dunkin’ Donuts stores at locations in Branford, Westbrook, Derby, East Haven and Old Saybrook. During this time period, JOSE CALHELHA and others are alleged to have devised a plan to recruit aliens from Portugal for employment at JOSE CALHELHA’s stores, for financial gain and in violation of United States immigration laws. As part of his recruitment effort, JOSE CALHELHA placed an advertisement in at least one Portugese newspaper seeking individuals between the ages of 25 and 35 to work as managers at his stores. Knowing that these prospective employees did not have employment authorization to work in the U.S., JOSE CALHELHA is alleged to have made promises to them about their position, salary, compensation package and immigration status; directed them to purchase airline tickets for travel from Portugal and reimbursed them for the airfare; and transported them or arranged for their transport from Newark International Airport to his residence in Guilford where the aliens stayed for a period of time.

As further alleged in the Indictment, shortly after their arrival in the U.S., aliens began working at CALHELHA’s stores without obtaining work authorization from the U.S. Department of Homeland Security. Initially, DIANA CALHELHA transported the aliens to their job site. Most of the aliens worked seven days, up to 85 hours, per week and initially were paid approximately $250 per week. In addition to their duties at the Dunkin’ Donuts stores, JOSE CALHELHA required his employees to do other work including painting and landscaping at the stores and snow-removal at his home. JOSE CALHELHA also deducted from his employees’ salaries payments for room and board and for “attorneys fees,” which he represented to be payments to an immigration attorney.

JOSE CALHELHA initially paid the aliens in cash, but later began paying them by checks made payable in the name of another person who had legal status in the U.S. It is alleged that JOSE CALHELHA then directed the aliens to endorse the checks and cash them at his stores.

The Indictment further alleges that JOSE CALHELHA knowingly sold fraudulent United States identity documents to some of his employees, that JOSE and DIANA CALHELHA knowingly completed fraudulent I-9 employment forms for the aliens, and that JOSE CALHELHA knowingly filed with the Internal Revenue Service W-2 and W-3 tax forms containing false identity information.

The Indictment alleges that some of the aliens recruited from Portugal had management positions in JOSE CALHELHA’s Dunkin’ Donuts stores and were directed by CALHELHA not to employ “Americans.” It is alleged that, during the period of the conspiracy, more than half of the individuals employed by JOSE CALHELHA at his Dunkin’ Donuts stores were aliens utilizing social security numbers that were invalid or that did not match the name of the employee.

JOSE CALHELHA sold all 10 of his Dunkin’ Donuts stores in or about July 2005.

“Those who engage in deceptive schemes to bring people to this country to work show blatant disregard for U.S. law and for the people they con,” said Matthew J. Etre, acting special agent-in-charge of ICE in New England. “Transporting, harboring and employing illegal aliens are all crimes that compromise the integrity of the immigration system. ICE will continue to use all of its authorities to bring to justice those who violate our immigration and customs laws in order to profit at the expense of others.”

If convicted of all seven counts contained in the Indictment, JOSE CALHELHA faces a maximum term of imprisonment of 70 years and a fine of up to $1.75 million. If JOSE CALHELHA is convicted of Count Three of the Indictment, which charges him with bringing aliens into the U.S., he faces a mandatory minimum term of imprisonment of three years. DIANA CALHELHA is charged in Counts One and Five of the Indictment and, if convicted of both counts, she faces a maximum term of imprisonment of 20 years and a fine of up to $500,000.

U.S. Attorney O’Connor stressed that an indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial at which it is the Government’s burden to prove guilt beyond a reasonable doubt.

This case is being investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement (ICE). The Social Security Administration, Office of the Inspector General, the Internal Revenue Service – Criminal Investigation and the Connecticut Department of Labor, Wage and Workplace Standards Division all played a key role in the investigation.

The case is being prosecuted by Assistant United States Attorney Krishna R. Patel.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov