Southern District of Georgia | Two companies and eight individuals plead guilty to a work program using visa fraud to provide hospitality staff

BRUNSWICK, GA: Two companies and eight officers and employees have pleaded guilty to a visa abuse scheme that illegally provided food service workers, with one company and six employees also convicted in federal court.

The guilty pleas and convictions, stemming from an indictment filed in April 2021, highlight a conspiracy in which the two companies and their officers and managers recruited and hired non-citizens in the household, retail and hospitality sectors for opposite resort and hospitality operations United States, including venues in the Southern District of Georgia, through illegal manipulation of tourist and educational visas, said Jill E. Steinberg, US Attorney for the Southern District of Georgia.

“The successful resolution of this case involves far more than holding these companies and their officers and employees accountable for violations of the law. it also represents justice for illegally exploited workers who have been billed hundreds of dollars in fees in return for access to employment,” said US Attorney Steinberg.

The defendants pleaded guilty and were sentenced as follows:

• Samvel Nikoghosyan, 40, of Destrehan, La., was sentenced to 24 months probation and paying a $5,100 special assessment after pleading guilty to aiding and abetting alien transport. Nikoghosyan was Chief Executive Officer of Regal Hospitality before Sargis Makaryan.
• Artur Grigoryan, 38, of Biloxi, Mississippi, sentenced to 12 months probation after pleading guilty to illegally employing foreigners. Grigoryan was employed as an area manager for Regal Hospitality.
• Armen Ayrapetyan, 37, of Duluth, Georgia, sentenced to 12 months probation after pleading guilty to illegally employing foreigners. Ayrapetyan was hired as Area Manager for Regal Hospitality.
• Jason Hill, 28, of Virginia Beach, Virginia, sentenced to 12 months probation after pleading guilty to illegally employing foreigners. Hill was employed as a supervisor for Regal Hospitality.
• Educational World Inc. of North Port, Fla., is awaiting sentencing after pleading guilty to conspiracy to defraud the United States and committing a felony. The settlement agreement, signed by Educational World President Larisa Khariton, 73, and Vice President Jon Clark, 71, both of North Port, Fla., subjects the company to a fine of $500,000 or double the gross profit or loss arising from the conspiracy results. whichever is greater, and probation for up to five years.

In addition, Fremie Balbastro, 49, of Myrtle Beach, SC, is awaiting sentencing after pleading guilty in the South Carolina District to charges of misrepresentation in a mortgage lending transaction. Balbastro served as Regional Vice President of Operations for Regal Hospitality. Balbastro is due to be sentenced on April 18.

As detailed in plea agreements and court testimonies, the defendants participated in a program through at least May 2017 whereby they recruited and hired non-citizens without permits to work for Regal Hospitality Solutions (RHS). RHS had contracts to provide hospitality businesses with staff in the home, retail and hospitality sectors. To fill these positions, RHS hired non-citizens who were not eligible to work for RHS in the United States and, in some cases, arranged housing and transportation for the workers.

Workers provided under the program were generally present in the United States on expiring and expired educational visas. Educational World charged the workers $650 for illegally preparing tourist visa applications for these workers, who were then turned over to RHS for employment in violation of tourist visas. In addition to the fees paid by the workers, Educational World also received a commission from RHS for each worker provided.

“Identifying and stopping those involved in labor exploitation not only protects workers from unfair and often inhumane treatment, but also prevents unfair competitive advantages that harm the labor market,” said Special Representative Katrina W. Berger, who Homeland Security oversees Investigations (HSI) operations in Georgia and Alabama. “Hopefully the results of this case will encourage others who are being exploited to come forward and seek help.”

The Office of the Inspector General of the U.S. Department of State investigated the case with the support of the Homeland Security Investigations and the U.S. Citizenship and Immigration Services, with indictments from the Department of Human Rights and Special Enforcement of the U.S. Department of Justice, and a U.S. Assistant Attorney and Assistant Detectives Chief E. Greg Gilluly Jr. of the Southern District of Georgia.