Bencor subcontractor noted in 1988 illegals case
Chattanooga Times Free Press
By Andy Sher, Nashville Bureau
NASHVILLE — Walking alongside a wire fence marking the U.S.-Mexican border, Republican U.S. Senate hopeful Bob Corker vows in his latest television ad to get tough on the problems of illegal immigration.
“There are several things we have to do to solve this problem,” Mr. Corker says in the ad. “The first is, secure the border. Allow people to work here, but only if they’re legal.”
But a construction company formerly partly owned by Mr. Corker, Bencor Corp., evidently had its own problems with illegal immigrants in 1988. According to news accounts at the time, Bencor used a Texas subcontractor that was caught using undocumented Mexican workers during a raid on a project in Memphis.
The 18-year-old incident, in which news accounts said Bencor itself was not faulted by immigration officials, is nonetheless spurring attacks on Mr. Corker by Republican Senate rivals Ed Bryant and Van Hilleary as well as likely Democratic nominee Harold Ford Jr.
“He claims to be tough on hiring illegal immigrants, but the record proves not only did he have illegal immigrants on the job site, but he ignored repeated warnings from public officials not to do so,” Mr. Bryant said in a statement.
Corker campaign officials are not disputing the incident in which the then-federal Immigration and Naturalization Service arrested four illegal immigrants at the Riverset Apartments project on Memphis’ Mud Island, according to a March 17, 1988, account in the Memphis Commercial Appeal.
“I think this incident 18 years ago dealing with a subcontractor helps illustrate the need for employers to have an instant and tamper-proof means to electronically verify a worker’s status,” Corker campaign manager Ben Mitchell said.
“I think the other point I have to emphasize is the INS reported in this article that Bencor bent over backward to ensure all subcontractors complied with the law,” he said.
Mr. Mitchell also said “no doubt our opponents will try to make an issue here where there is none because they’re way behind in the polls.”
Mr. Corker, a former Chattanooga mayor, co-founded Bencor in 1978. He sold off the construction portion in 1990.
The use of immigrant labor at the Riverset apartment project first arose when Shelby County Commissioner Julian Bolton and a local union official publicly raised concerns, according to a Jan. 16, 1988, account in the Commercial Appeal.
The project was built with local tax dollars. Developers involved in the project included Chattanooga businessman Jon Kinsey, who later became mayor of Chattanooga.
Bencor’s then-president, Rick Lowhorn, was quoted saying the general contractor was using some framing and concrete subcontractors from Texas.
“I’ve been informed by our subcontractors that everybody is legal,” Mr. Lowhorn was quoted saying.
ARRESTS, ‘NO FINES’
Two months after the complaint, INS agents arrested four illegal immigrants, the Commercial Appeal reported in 1988. INS Special Agent Mickey Sadler at the time said authorities believed the four illegal immigrants were working for a Texas subcontractor.
Mr. Sadler was quoted saying that while under 1986 immigration reforms employers could face fines of up to $10,000, anyone at fault would only be issued a warning because the INS was still in an “education phase” when it came to employers.
He said Bencor “is bending over backward to get the subs to voluntarily comply.”
But Commissioner Bolton at the time contended a Bencor official “told me a lie” about workers being properly documented.
Mr. Corker is not mentioned in the article.
Efforts to contact Mr. Bolton, now running for the Democratic nomination in the 9th Congressional District, on Friday, Saturday and Sunday were unsuccessful.
Ron Kidd, a former supervisory special agent for the INS in Memphis at the time, said the 1988 case “wasn’t a very significant apprehension for us.”
He recalled there had been allegations of as many as 20 illegal aliens at the site but “it ended up being four. As to who the contractors and subcontractors were or anything like that, I couldn’t say.”
Efforts to obtain the 1988 case file from the Bureau of Immigration and Customs Enforcement, one of two successor agencies to the INS, were unsuccessful Friday.
“1988? God help us,” said ICE regional spokesman Temple Black about finding the documents quickly.
BURDEN OF PROOF
Immigration law expert Robert P. Deasey of the American Immigration Lawyers Association, a pro-immigration group, said that under the 1986 law, the burden of ensuring the legality of workers generally would fall on the subcontractor unless there was blatant abuse by the general contractor.
“If you’re setting up a scheme to insulate yourself, then you’ve got problems,” Mr. Deasey said. “But if you’re a general contractor and you sub out the electrical work to a regular subcontractor and he comes in and you expect that he’s going to have all his ducks in order and he has a working crew and he’s the employer … he (subcontractor) has got the obligation.”
Mr. Kidd agreed, saying, “it’s going to come back on the subcontractor.”
Efforts to contact the Center for Immigration Studies, which advocates tighter restrictions on immigration, were unsuccessful last week.
Other Senate campaigns piled on the 1988 incident.
“Once again, Bob Corker’s ads say one thing, Bob Corker’s records say just the opposite,” said Hilleary campaign manager Jennifer Coxe.
Michael Powell, a senior consultant for the Ford campaign, said, “Bob Corker owes the voters of Tennessee an explanation about why he hired illegal workers for the Mud Island project.”
Asked if there were other past problems with Corker companies, Mr. Mitchell said, “I think the public record has and will continue to demonstrate that Bob Corker ran his companies in such a way to make sure that all workplace laws and regulations were strictly followed.”
Mr. Mitchell also said, “I think that unfortunately for all these years, Congress has failed to implement instant and tamper-proof ID to verify a worker’s status. The fact is because Congress has failed to act, some illegal immigrants have exploited the current requirements with forged documents.”
Both Mr. Bryant and Mr. Hilleary are former congressmen while U.S. Rep. Ford began serving in the House in 1997.
Mud Island
In 1988 when Bob Corker was owner of Bencor, federal authorities arrested four illegal aliens at a construction site where Bencor was the general contractor.
Bencor was the general contractor for a project to construct the “luxury Riverset Apartment” complex on Mud Island, an area located just outside of Memphis. (Commercial Appeal, 3/17/88). Subcontractors on the site included J&G Framing (or Framers), based in Magnolia, TX.
In January 1988 there were “allegations” that Bencor, or one of Bencor’s subcontractors, had hired illegal aliens at the Mud Island project. At that time, Bencor officials “denied [the] allegations that Bencor or any of its framing and concrete subcontractors were using illegal laborers” (Commercial Appeal 3/17/88). Rick Lowhorn, then president of Bencor, claimed he looked into the matter himself and checked Bencor’s subcontractors to determine whether any of them had hired any illegals. After completing his inquiry, he denied any wrongdoing. Lowhorn was quoted as saying:
“I’ve been informed by our subcontractors that everybody is legal.” (CA 3/17/88)
However, on March 16, 1988, federal authorities “arrested four illegal aliens from Mexico who were [working] on the luxury Riverset Apartment” project (CA 3/17/88). Bencor officials continued to deny any knowledge of their employment despite the arrests, and they refused to accept any responsibility for the incident. Now, Lowhorn changed his story:
“Contacted Wednesday [March 16, 1988] about the arrests, Lowhorn said the problem was not with his company but with a subcontractor. ‘We are totally 100 percent within the boundaries of the law,’ Lowhorn said. ‘Bencor Construction Co. has cooperated 110 percent. There was a subcontractor that there may have been a problem with, but that’s not anything we’re responsible for.’” (CA 3/17/88)
A special agent for the local INS office concurred with Lowhorn, saying “authorities believe the four illegal aliens were working for J&G Framing . . .” (CA 3/17/88).
Although only four illegals were arrested that day at the Riverset Apartment project, the INS reported that they were informed many more illegals were working on the site. According to an INS synopsis report summarizing the events in the Mud Island case, an “unknown source” told them the following:
Reported from unknown source 30 to 50 illegals working at the Mud Island site. (INS Investigations Administrative Information Sheet, 1/11/89).
In the end, Bencor was counseled – not charged – regarding the incident. INS investigators reported having conducted two “meetings” with Bencor “and several of the subcontractors” (INS Investigations Sheet, 1/11/89). However, the INS did not conduct meetings with J&G Framing, once thought to be the actual employer of the illegals. .According to INS officials, J&G Framers were not responsible for the employment of the illegals.
J&G Framers were not present at these meetings. Several illegals arrested at the site. None were employed by J&G Framers. (INS Investigations Administrative Information Sheet, 1/11/89)
It was understood that Bencor appeared before Memphis City Council with regard to the case but do not have those minutes to substantiate.
[[About J&G: According to Secretary of State in Texas, J&G was issued corporate charter on 5/20/83. Records show that J&G listed a street address for tax year 1993 at 21914 Ralph Circle, Magnolia, TX 77255.]]
