Michigan firms face criminal charges for hiring undocumented workers

(DETROIT) Michigan employers are now squarely in federal crosshairs over hiring undocumented workers, with fresh charges, guilty pleas, and on-site searches underscoring a sweeping workplace enforcement push.

On May 28, 2025, federal agents arrested Edward Schlacht, a manager at the Grigg Box Company in Detroit, after an audit by ICE Homeland Security Investigations (HSI) flagged 35 employees using suspected counterfeit documents and agents executed a search warrant at the facility.

Earlier this year, on February 25, 2025, Aquila Farms LLC, a dairy operation in Bad Axe, and owners Johannes Martinus Verhaar and Anthonia Marjanne Verhaar pleaded guilty and agreed to pay $2.7 million in fines and forfeitures after admitting they hired 78 undocumented workers, about 75% of their workforce over several years. Federal prosecutors in the Eastern District of Michigan handled the case, and ICE HSI led the investigation.

The actions come amid a statewide surge in workplace audits, raids, and prosecutions. ICE announced on August 8, 2025, that it is prioritizing employers in Michigan for enforcement, citing active investigations that range from agriculture to manufacturing. The campaign aligns with policy shifts in President Trump’s second term.

Executive orders in January 2025 expanded ICE’s resources for employer audits and on-site operations and tripled arrest quotas, moving the focus not only to foreign nationals but also to managers who knowingly employ them. Data from early June 2025 reflects the broader reach: in Michigan, 48% of the 304 people ICE arrested that month had no criminal charge, and nationally, 47% of daily ICE arrests were people with no criminal charges or convictions, up from 21% a month earlier.

“Criminal prosecutions are just one of many tools HSI is using to reduce the demand for illegal employment and protect job opportunities for the nation’s lawful workforce.”

— Brian M. Moskowitz, special agent in charge, HSI Detroit

For employers, that translates to deeper record checks, surprise visits, search warrants, and sharper penalties if managers knowingly accept fake documents or look the other way during hiring. For workers, the stepped-up actions mean more detentions at or near the job site and fast-moving deportation cases, even for those with no criminal record.

Workplace cases in Michigan

The Detroit-based Grigg Box Company case signals how audits now unfold. According to investigators, an HSI audit of hiring records flagged a pattern of suspected counterfeit or invalid documents tied to dozens of workers. Agents then obtained a federal search warrant, seized records, and arrested Schlacht on charges that he knowingly employed unauthorized workers and accepted false papers during hiring. The case remains open.

The Aquila Farms matter offers a window into how far federal prosecutors will go when they believe hiring was deliberate and long-term. The owners admitted in court that over multiple years they employed 78 undocumented workers, making up roughly three-quarters of the workforce. Beyond the $2.7 million in fines and forfeitures, the plea highlights the risk of both criminal charges and civil penalties when employers skirt the rules.

The U.S. Attorney’s Office emphasized that holding employers accountable is key to deterring illegal hiring. These Michigan cases form part of a wider push. Since early 2025, ICE has devoted more staff to workplace enforcement across the state.

Audits often begin with record checks sparked by tips, mismatches in Social Security numbers, or patterns in hiring documents. High-risk sectors include:

• Agriculture
• Manufacturing
• Construction
• Hospitality

ICE says its goal is to deter unlawful hiring and protect lawful workers; immigrant advocates warn that the net also sweeps in people with no criminal history who are supporting families and paying taxes.

According to analysis by VisaVerge.com, the Detroit-area actions show the playbook federal agents will likely repeat:

1. Audit first
2. Tighten the case through document review
3. Escalate to on-site warrants
4. Pursue criminal charges against managers or owners where evidence supports it

The analysis also notes that higher arrest quotas have pushed agents to conduct more coordinated operations at workplaces, not just in neighborhoods or near courthouses.

Compliance rules and real-world impact

At the center of many workplace cases is the hiring form every U.S. employer must use: Form I-9, Employment Eligibility Verification. Employers must examine original identity and work authorization documents and complete the form within three business days of a new hire’s start date.

The official form and instructions are available from U.S. Citizenship and Immigration Services at https://www.uscis.gov/i-9. Accepting clearly fake documents, ignoring red flags, or allowing patterns of false papers can turn a civil problem into a criminal one.

Prosecutors and ICE agents are leaning on a well-worn sequence:

1. ICE audit or investigation: HSI reviews a company’s I-9 files and hiring records, often after a tip, a pattern of mismatches, or internal concerns.
2. Identification of possible unauthorized workers: Agents flag employees whose papers appear fake, borrowed, or otherwise invalid.
3. Search warrant and arrests: Investigators may execute a warrant, seize records, and arrest managers or owners suspected of knowingly hiring undocumented workers.
4. Criminal charges: Charges can include knowingly employing unauthorized aliens, accepting false documentation, and, in some cases, harboring.
5. Fines and penalties: Businesses and individuals face monetary penalties that can reach up to $3,000 per unauthorized hire, forfeitures of gains, and possible prison time for willful violations.
6. Ongoing monitoring: ICE keeps close watch on industries where abuse is common, with repeat audits when needed.

Worker advocates say the human cost is rising. The Michigan Immigrant Rights Center (MIRC) reports a surge in requests for help from undocumented workers facing both job loss and fast-track deportation cases after workplace checks.

MIRC is also litigating against state policies that cut wage-loss benefits for people without status, warning that many workers are too afraid to report injury, wage theft, or unsafe conditions. The trend is clear: when enforcement increases, reporting drops, and problems go underground.

For many small employers, the fear is making a mistake. Human resources teams in Detroit and across the state are rushing to retrain staff on I-9 review, set up internal checks, and prepare for potential audits. One Detroit auto supplier described a simple plan:

• Assign two trained reviewers for each new hire’s documents
• Keep clear copies as allowed by policy
• Schedule quarterly file audits

Lawyers say that plan can reduce risk without discriminating against lawful workers.

Employers also need to avoid over-correcting. Demanding more or different documents than the law allows can trigger discrimination claims. The rule is simple: accept any valid document from the lists on the I-9 form if it reasonably appears genuine and relates to the person. Turning away a new hire with proper papers can be as risky as accepting a forged card.

Policy context and consequences

The current approach from Washington reflects sharper priorities. Under President Trump, executive orders in January 2025 boosted funding for workplace checks and signaled that employer cases will not be handled only with civil fines. ICE has called Michigan a priority region this summer, citing open investigations and recent prosecutions in and around Detroit, Bad Axe, and other communities.

Federal officials argue that tougher employer cases will reduce the draw for unauthorized work. Advocates counter that the steps fuel fear and allow bad actors to exploit workers who will not speak up. In practice, this can lead to:

• Longer hours and unpaid overtime going unreported
• Unsafe work conditions remaining hidden
• Workers skipping medical care after injury to avoid contact with authorities

Examples:

• A dairy hand in Huron County might skip medical care after an injury rather than risk an encounter with law enforcement.
• A kitchen worker in Detroit might not report wage theft if she worries a job-site check could lead to detention.

The stakes are high for families. When a breadwinner is detained after a raid:

• Children may miss school
• Rent may go unpaid
• Local charities, churches, and social services may need to step in

Even for workers with no criminal record, the path from workplace arrest to removal can move fast under the current enforcement pace.

Practical steps for employers

For companies, the practical steps remain straightforward and focused on compliance:

• Train hiring staff on Form I-9 rules and anti-discrimination requirements
• Use a second reviewer for document checks in higher-risk roles or worksites
• Keep I-9 files separate, well organized, and ready for audit
• Consult counsel when a document looks wrong rather than guess
• Do not accept obviously fake, borrowed, or mismatched papers

Michigan’s agriculture and manufacturing sectors have long relied on seasonal and shift-based labor where turnover is high and paperwork mistakes are common. Before 2025, many cases ended with civil fines. Today, prosecutors are more willing to bring criminal charges when they see patterns or proof that managers knew what was happening.

The Grigg Box Company case in Detroit shows how quickly an audit can turn into arrests if investigators find evidence of knowing hiring or acceptance of false documents.

Looking ahead, ICE has said it will keep adding workplace checks in Michigan through the fall. Advocacy groups, including MIRC, are preparing legal challenges to certain tactics and state policies that limit access to benefits for undocumented workers. In Lansing and in Congress, lawmakers are discussing changes to verification systems and guardrails for both employers and employees, though any reform will take time.

For now, the enforcement environment is tighter, the penalties are sharper, and the risks—for companies and workers—are higher.

Key takeaway: Investigators are pressing hard on both sides of the hiring desk. Employers who rely on casual document checks or accept papers they know are false face criminal exposure and high fines. Workers without status face rising odds of detention during or after an audit, even if they have no criminal history.

Detroit’s ongoing investigation into Grigg Box Company and the Bad Axe guilty pleas at Aquila Farms set the tone for the coming months: deeper audits, more warrants, and more courtrooms weighing how Michigan’s workplaces hire and pay the people who keep them running.