DOL investigates possible employment scam

The Department of Labor has ordered the investigation of a possible sham employment scheme for the sole purpose of obtaining a work permit for a former garment worker.

However, Labor hearing officer Jerry Cody granted the request of worker Wang Hai Ying for transfer relief until Oct. 31, 2005, allowing the worker to seek a new employer and have her new employment documents filed with the Labor Department.

Cody made the ruling in an administrative proceeding that stemmed from Wang’s appeal of the denial of her employment application with Blue Sky Development Corp. The company’s representative never appeared before the appeal proceeding, where Wang did not contest the denial but merely sought transfer relief.

Cody said findings during the administrative hearing raised serious questions regarding the employment application.

He noted that Blue Sky filed with the Labor Department a transfer of employment application on behalf of Wang on Dec. 9, 2004, after the worker’s permit as sewer for Rifu Apparel expired on Oct. 28, 2004.

Blue Sky indicated it wanted to hire Wang as a commercial cleaner for its Internet café in Garapan, but the department immediately notified the company that its filing was deficient of supporting documents such as job vacancy announcement and business establishment inspection form. The employer never submitted the deficient documents, prompting the department to deny the application on April 28, 2005.

Cody noted that the purported owner of Blue Sky, Cheng Juan, had reportedly left the CNMI. He said, though, that Cheng’s name does not appear in the company’s Articles of Incorporation as officer or director.

Leung also represented that she served as manager for Blue Sky from October through December 2004, but Cody said she had no knowledge of Blue Sky’s business, Jin Xing Store, which allegedly operated an “Internet game room” in San Antonio—not in Garapan.

“Leung’s only managerial services appeared to be arranging for Ms. Wang’s application to be filed, for which she was paid $200,” Cody said. Wang also claimed that she paid $500 to Cheng upon the latter’s request for document processing fee.

“The facts elicited during the hearing raise serious questions as to the conduct of Leung Min Hu and Cheng Juan,” Cody said. “Moreover, the facts suggest that Leung may have conspired with Ms. Cheng to defraud the department by filing fraudulent documents.”

Cody recommended the Labor director to conduct an agency investigation into the matter, saying that submission of fraudulent employment applications remains a serious problem faced by the Labor Department.

He affirmed the denial of the permit application filed by Blue Sky, and ordered Wang deported from the CNMI if the worker fails to have her employment transfer application filed with the department within the 45-day period given to her.