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November 08, 2005
Affidavit Reveals Testimony Against Wal-Mart

Federal investigators said in an affidavit that they collected testimony and taped conversations indicating that two Wal-Mart executives knew cleaning contractors employed undocumented workers, the Associated Press reports.

In 2003, immigration officials conducted a raid on 60 Wal-Mart stores and arrested 245 undocumented workers who were employed by cleaning contractors hired to clean Wal-Mart stores. This year, the company later agreed to pay $11 million to settle the case, which included allegations that it knowingly hired contractors that employed undocumented workers. In settling the investigation, the company denied any wrongdoing.

However, last week a U.S. district judge in Fayetteville, Arkansas, unsealed an affidavit in which federal investigators alleged in 2003 that they collected testimony and taped conversations indicating two executives knew the contractors had hired undocumented workers, according the AP. The judge unsealed the affidavit at the request of an attorney representing 200 janitors in a civil suit against the company.

One former cleaning contractor told investigators that a Wal-Mart executive suggested that the contractor create several subsidiaries so that the retailer could continue doing business with the contractor by switching to another subsidiary if one of them was caught using undocumented workers.

The company denies that the affidavit contains any incriminating evidence, the news service reports.

"As we have maintained all along, no company senior official had any direct knowledge that undocumented workers were working in our stores," Wal-Mart spokesperson Marty Heires tells the AP.

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