Posted on 06/17/2006 3:32:39 AM PDT by Dane
Jacob follow-up ALAN CHOATE - Daily Herald
Republican candidate for Congress John Jacob appears to have violated federal regulations when he paid a Chilean couple through a shell company he may have helped them form.
The couple, Oscar and Marta Silva, were in the United States on Oscar's student visa, and would not have been allowed to accept employment beyond part-time on-campus work for Oscar, according to several immigration law experts.
Jacob is trying to unseat U.S. Rep. Chris Cannon, R-Utah, in the upcoming GOP primary for Utah's Third Congressional District. Immigration reform has dominated the campaign discussion, and Jacob has backed stern enforcement of immigration laws on illegal immigrants and those who employ them.
He's been particularly critical of the idea that businesses can't verify the legal status of an employee, calling it "an excuse so they can hire someone at a lower wage so they can make more money."
Jacob has been open about the fact that, from 2000 to 2003, he sponsored the Silvas while Oscar studied nursing at Salt Lake Community College. By sponsoring them, he agreed to be financially responsible for them while Oscar Silva was in school.
But Jacob said that the family expressed discomfort and what he termed "charity" so the Silvas registered a company -- Office Specialist of Utah -- and Jacob contracted with the company for work performed by Marta Silva.
It's not an uncommon arrangement, said local immigration attorney Chris Keen, but it could also be grounds for prosecution.
"That is a technique that many attorneys use, basically to avoid the employment laws of the United States," Keen said. He also acknowledged that he is a Cannon supporter, although he said he is not active in the campaign.
There's nothing wrong with a foreigner forming or owning a company in the United States, Keen noted -- but "foreigners can't run those companies or work for those companies unless they get permission."
That would entail a work authorization card or a specific kind of visa -- and a student visa definitely wouldn't qualify, said Enoc Flores, director of International Services at Brigham Young University.
An international student can work up to 20 hours a week on campus and can get permission to work off campus if the work is related to their field of study. Work permission is granted for economic hardship in rare cases, such as when a parent dies or the student loses his or her sponsor.
The spouse and dependents of a person with a student visa have what's known as an "F-2" visa, and they face even tighter restrictions.
"F-2 cannot work in the United States," Flores said. "They cannot work. They cannot study. There are no exceptions."
Since Jacob had stepped in as the education sponsor, the Silvas again could show sufficient assets to complete the course of education, and therefore would likely not have been given a work authorization by the government if they had applied. Published reports have quoted Jacob associates as saying the Silvas were not authorized to work in the U.S.
If that is true, Jacob would be in violation of U.S. immigration regulations when he paid them through the shell company he helped establish in their name. The regulations provide no shield for hiring an unauthorized individual through a contractor or subcontractor arrangement.
"Any person or entity who uses a contract, subcontract ... to obtain the labor or services of an alien in the United States knowing that the alien is an unauthorized alien with respect to performing such labor or services, shall be considered to have hired the alien for employment in the United States in violation of ... the Act," one section reads.
The key legal point is how much Jacob knew about the restrictions on the Silvas' ability to work, Keen said.
"If the aliens are working under the company, they are breaking the immigration laws," he said. "All that forming an LLC does is protect the people who don't know. If he knows, I don't think he has any protection."
Immigration regulations define "knowing" about a worker's status as including "not only actual knowledge but also knowledge which may fairly be inferred through notice of certain facts and circumstances which would lead a person, through the exercise of reasonable care, to know about a certain condition."
Jacob has said he never checked the Silvas' visas and that he tried to stay within the law.
Jacob said Marta performed secretarial and domestic work, and Oscar did part-time grounds work.
"I created a job for this lady that they could feel they were doing something for me," he said. "We did everything possible to make it legal and right."
"John is a very giving man," said Mike Bevins, Jacob's company financial controller at the time. "On the other hand, John is a businessman and doesn't like to pay taxes on gifts if he doesn't have to.
"We looked for some way to be able to accomplish both things -- help the Silvas and see if it could be done without creating a problem (with taxes)."
Glen Sexton, Jacob's former accountant, said Marta Silva did domestic work at Jacob's home from 1999 until May 2000 and was usually paid cash.
She then went to work in his office, but the arrangement changed because Marta Silva was not employable under federal requirements, Sexton said. He said The Office Specialist of Utah was set up, with Marta Silva as its employee, and she was then contracted to work as a clerk in Jacob's company.
Sexton said she was paid a monthly salary, regardless of her hours worked or not worked,
He said Jacob paid for Marta Silva's schooling plus an all-expenses-paid vacation to California. When Marta Silva had a back injury, unrelated to her employment with Jacob, the payments continued, Sexton said.
Jacob was initially approached by his LDS Church bishop, Gil Fellingham, to help the Silvas.
The family was already in the country and initially had the resources to manage on their own, Jacob said. But their situation took a nosedive because of problems with their assets in Chile, and Jacob was asked to help.
Fellingham said Friday that he wasn't aware of the details of how Jacob and the Silvas managed their affairs.
"They were struggling. As you do in situations in wards, you bring together people who might be able to help," he said. "We felt like we should try to do whatever we could to be helpful."
On Friday, Jacob released tax records showing he paid $109,500 to the Silvas' company during his sponsorship of them.
His campaign also released a letter attributed to Marta Silva, who is the registered agent for Office Specialist of Utah. The letter was directed at the Deseret News and demanded "an official clarification, apology and printed retraction for including our names on spurious claims."
"Both my husband and I have always kept our legal status in the U.S.," she wrote. "Currently, we have the status of 'legal resident' in the country, and my husband is in the process of application for citizenship."
Jacob said he's not worried about legal entanglements.
"If there's anything that I did wrong, I'll fix it," he said.
"For me to step up and help someone with no advantage to me -- I think that's what we're supposed to do. And I did. If that means I get in trouble for it, so be it."
It is funny watching people on FR make excuses for Mr. Jacob, but when good conservative Linda Chavez did the same thing(showed charity to a hispanic immigrant), a lot of these people were calling for her head.
Nope, Cannon actually voted for H.R. 4437, but it seems that the pettiness and swelled heads of tancredo/buchanan wants to throw out a good conservative such as Chris Cannon, BTW, who didn't set up a shell corporation for foreign born labor, as tancredo's picked candidate, John Jacob did..
Don't bother. Dane's definition of a "good conservative" (Dane's latest broken record line) is only that of republicans who would probably voted for the senate immigration bill if given the chance (this talking about house members.) The guest worker types. Never mind Tancredo's ACU ratings, sterling voting record and countless conservative awards, he's bad.
You know what's ironic Napkinuser, you and your compadres are promoting "amnesty" for candidate Jacob.
Unless he is indicted, I really don't want to hear about it. Jacob is good on immigration and Cannon is not. What else can you say about this race on this specific issue?
Jacob most likely won't win. Everyone knows that. Cannon is better known, better funded, the incumbent and the favorite of the media (like the paper you posted this article from.) But in the last race (2004) Cannon only got 58% of the vote (low for incumbent house members in primaries) and that is when there was a primary for the governor's mansion, drawing out more republicans. That won't happen this time, the interest is low, meaning the more conservative and dedicated will vote. I'm willing to bet they break for Jacob, but not likely enough for a win. But a Cannon lose will unquestionably send shock waves through the GOP establishment in Washington and hopefully move them to the right on this issue.
The race mirrors the Tom Price-John Konop race here in Georgia.
It's hilarious watching you promote amnesty for your candidate.
Good all around. This raises the stakes. If Jacob STILL wins the message will be still louder. If not it wasn't a clear choice anyway. This is like a defensive flag after a snap. The QB gets a free pass.
Nope, more like amnesty from those who hypocritically scream to the rooftops that they are against amnesty.
Looks like you(and john jacob and tom tancredo) know the Utah democrats very well.
Obviously you don't. And you don't know much about Cannon either.
Yep! You're wrong. Cannon only voted for the House bill so that he could be a conferee when the bill is reconciled with the Senate bill. Cannon will not press for the House version, but for the Senate version. He's made that perfectly clear. Jacob is equally conservative as Cannon except Cannon is as liberal as Ted kennedy and Hillary Clinton when it comes to illegal immigration and governing the people rather than representing them. Cannon will shove his own preference down Utah's throat whether they like it or not because they are too stupid to know what's best for them.
I had it with your lies. Cannon has been Bush's point man on this immigration bill and you know it.
Instead of defending the Bush/Senate/Cannon amnesty plan you try to tear down a man because he gave a job to people who went to his church.
You are scared to death that Bush's immigration policy is going down in flames via proxy in the Cannon Race.
Thats why you spread lies. You are frightened that if Cannon loses, freepers like myself will tear into you...and I will.
Defend the policy, don't tear down a man personally.
You all better be careful with your rhetoric because the inflammatory rheotric that you tancredo/buchanan zealots love to revel in has a way of coming back and biting you on the a$$.
Dane and the rest of the bots know that in Cannon is defeated, they will be exposed for the lies they have told. They have told us that the polls show the public is in favor of the amnesty bill.
They have dogged the rest of us who support border enforcement first.
Soon, they will have real americans in a conservative state voting for a candidate who has had a moderate position on immigration. At least unti he was forced into a run off. The ads he's running no longer mention "comprehensive".
If Cannon is defeated in the primary they will be shown to have been wrong on this issue. That the American public WANTS THE ENFORCEMENT FIRST.
It is you and those that think like you who fail to get it.
Whatever as you promote the tancredo/buchanan/jacob mantra of "do as I say, not as I do" as Mr. Jacob it seems had his own little guest worker plan with the Chilean couple.
Chilean ain't Mexico.
His pastor asked if he would hire them.
I predict this will back fire. He helped the chilean couple at the bequest of his church.
And by the way, I am not part of the Pat Bucannan brigade.
But if I were, I would tell you this.
If you think you can retain congress without EVERY REPUBLICAN vote in November( including the Pat Bucannan brigade, you are in for a suprise.
So, If I were you I would quit alienating others who are in the same party.
"Linda Chavez did the same thing(showed charity to a hispanic immigrant), a lot of these people were calling for her head."
Yeah, they were *LIBERALS* out for blood ...
So is there some Democrat dirty tricks team doing this?
If Cannon stooped this low, I lost whatever repect I had for him.
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