Federal Officials Uncover Illegal Worker Scheme at Chinese-Operated Ohio Factory Linked to Obama Documentary

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TOPSHOT - Former US President Barack Obama and his wife and former First Lady Michelle Obama stand on stage after she introduced him on the second day of the Democratic National Convention (DNC) at the United Center in Chicago, Illinois, on August 20, 2024. Vice President Kamala Harris will formally accept the party's nomination for president at the DNC which runs from August 19-22 in Chicago. (Photo by ANDREW CABALLERO-REYNOLDS / AFP) (Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)

A sprawling, Chinese-owned factory complex in Ohio has come under federal scrutiny as part of an expansive investigation into illegal labor practices and money laundering, according to the U.S. Attorney’s Office for the Southern District of Ohio.

Federal authorities revealed last week that they have seized $126 million in assets connected to the probe, which centers on the illegal importation and employment of workers, many of whom were smuggled into the United States through Mexico.

“It is alleged that many of the workers were illegally smuggled into the United States, primarily through Mexico, and encouraged to travel to the Dayton area to be employed by one of the target entities and serve as a workforce at the various factories,” the U.S. Attorney’s Office stated.

Officials disclosed that “most of the workers are of Chinese or Hispanic nationality,” and lived in “family style hotels” or boarding houses owned by the accused entities. Transportation to and from work was also provided by these organizations.

The investigation has uncovered the creation of “roughly 40 entities” designed to harbor and employ undocumented workers. “The suspects used these target entities to augment the workforces of several factories with individuals who illegally entered the United States, who are unlawfully present in the United States and/or who are working without required employment authorizations,” the press release said.

Among the factories named in the federal complaint is Fuyao Glass America, a high-profile manufacturing plant featured in the Obamas’ 2019 Oscar-winning documentary American Factory. The Dayton-based facility, owned by Chinese billionaire Cao Dewang, employs approximately 2,200 workers, including around 200 Chinese migrants, according to reporting by the Associated Press at the time of the film’s release.

The factory has previously received high praise, including from former President Barack Obama, who lauded the film “for telling such a complex, moving story about the very human consequences of wrenching economic change.”

However, the federal complaint describes a darker reality behind the scenes. In December 2019, law enforcement launched an investigation after learning that multiple Chinese business owners had relocated to Ohio and established dozens of entities allegedly used to funnel illegal labor into local factories, including Fuyao Glass America.

“Investigators discovered that these Business Owners created roughly forty entities that augmented these factories’ workforce with individuals who illegally entered the United States, who are unlawfully present in the United States, and/or who are working without required employment authorizations,” the complaint reads.

Fuyao Glass America, located at 2801 W. Stroop Road in Dayton, was among the facilities raided last year as part of the investigation. In response to the raid, the company insisted it was not a perpetrator but rather a victim of the staffing company’s alleged illegal activities.

“The company intends to cooperate fully with the investigation,” said Lei Shi, Fuyao Glass America’s community relations manager.

While many of the suspect staffing operations date back to the Obama administration, federal officials noted that the issue has persisted and expanded. Critics point out that more than 176,000 Chinese nationals entered the U.S. during President Joe Biden’s first four years in office, raising concerns over lax immigration enforcement.

The investigation remains active, with federal agencies vowing to pursue all leads tied to the illegal labor network. “We will continue to investigate allegations of unfair labor practices,” said ICE HSI Detroit acting Special Agent in Charge Jared Murphey. “Collaboration across multiple law enforcement agencies helps to ensure accountability for both employers and the workforce.”

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