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Businessman in labor row filed for bankruptcy
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Posted on Dec 08 1998
A local businessman accused of abusing contract workers has filed for bankruptcy in federal court.
Antonio Aldan Benavente and his wife Josephine, through lawyer V. K. Sawhney, told the court that their estimated debts have reached $1 million, while their estimated assets amount to only $100,000.
They said that after any exempt property is excluded and administrative expenses paid, there will be no funds available for distribution to unsecured creditors.
The couple had total liabilities of $645,802.74. Of the amount, $596,012.56 represent damages awarded to employees who have filed labor cases against them.
There are also penalties imposed by OSHA and the Worker’s Compensation Commission as well as loans and credit card payments.
Benavente, court records showed, was in Utah since July and working as a salesman for SEARS. He turned himself to authorities on Nov. 27, two weeks after a 162-count information was filed by Assistant Attorney General Aaron Williams against him.
He was granted temporary release by Judge Juan T. Lizama after posting a $260,000 property bond.
Benavente appeared in court yesterday and pleaded not guilty to 89 counts of failure to pay wages, 29 counts of failure to pay minimum wages and 15 counts of illegal charging of fees for application and renewal.
He is also charged with 20 counts of employment of illegal foreign workers, three counts of illegal deduction from workers, five counts of failure to pay medical expenses and three counts of attempted illegal charging of fees for application and renewals.
Majority of his workers are Bangladeshi nationals who claimed that Benavente never paid them more than the minimum wage and even forced them to purchase the mandatory equipment for their work.
His next court appearance has been set for Jan. 12, 1999.
