Financial Crime World

Major Guam Construction Company Owner Charged with Financial Fraud and Labor Exploitation in 124-Count Indictment

Hua Sheng International Group Owner Arrested on Fraud and Exploitation Allegations

Federal agents arrested Steven Wang, 47, the owner of prominent Guam construction firm Hua Sheng International Group, on Tuesday, March 8. Wang faces a 124-count indictment for financial fraud and labor exploitation.

Accusations against Steven Wang

Wang, also known as Shui Cheng, is accused of:

  1. Recruiting dozens of Chinese foreign nationals with false promises
  2. Forcing them to labor under substandard wages and conditions
  3. Harboring illegal aliens (63 counts)
  4. Money laundering (32 counts)
  5. Visa fraud (15 counts)
  6. Mail fraud (13 counts)

Court Appearance and Trial Schedule

During his initial appearance in federal court, Wang pleaded not guilty to the charges. His trial is scheduled for March 8, 2024.

Investigation Origins

The investigation into Wang’s alleged wrongdoings began two years ago under the collaboration of:

  1. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)
  2. The Internal Revenue Service’s Criminal Investigation (IRS-CI)

U.S. Attorney’s Concerns over Population Increase

U.S. Attorney Alicia A.G. Limtiaco expressed concerns over the expected Guam population increase and the influx of laborers, stating:

“With the anticipated population increase, there will be an influx in civilian and immigrant workers, including thousands of laborers. We anticipate issues such as wage and hour violations, immigration, and human trafficking, including labor and sex trafficking, will increase. The U.S. Attorney’s Office will continue to work closely with our local and federal counterparts to strengthen our response to these issues and pursue federal prosecution.”

Labor Violations Allegations

According to the investigation, Wang:

  1. Allegedly promised Chinese foreign workers Guam’s prevailing wage, approximately $11 an hour, but paid them $5.50 an hour
  2. Required workers to work 10-hour days, seven days a week
  3. Deducted approximately $1,000 illegally from their pay for the first ten months after their arrival
  4. Falsely represented to the Department of Labor they intended to employ a specific number of aliens and falsely represented they would be paid the prevailing wage

Response to Labor Exploitation

Wayne Wills, Special Agent in Charge of ICE HSI in Guam, stated:

“This case illustrates that no business is immune to the law. Employers engaging in the knowingly hiring of unauthorized workers and related crimes, such as visa fraud and alien harboring, will face severe consequences for their actions. By targeting individuals and businesses that violate these laws, we help protect jobs for Guam’s lawful workforce and minimize the demand for illegal alien labor.”

Marcus Williams, Special Agent in Charge for the IRS Criminal Investigation in Seattle, added:

“Our special agents followed the money trail, leading to the discovery of more than $1 million in allegedly illegal proceeds. This money helped establish the financial crimes committed, the perpetrators, and the ultimate destination of the funds. As a result, special agents from the IRS Criminal Investigation were able to successfully forfeit the ill-gotten gains.”

Guam Department of Labor also provided substantial assistance with the investigation.