Executive Summary
- Homeland Security Investigations (HSI) and the IRS raided 14 Zipps Sports Grill locations in Phoenix.
- 39 individuals were taken into custody in connection with a yearlong investigation into employment fraud.
- Diego Gonzalez-Rosales is charged with aggravated identity theft and managing an illegal hiring scheme.
- Charges include the use of fraudulent documents and Social Security numbers to verify employment eligibility.
PHOENIX — Federal authorities have charged 39 individuals following a series of coordinated raids on Zipps Sports Grill locations across the Phoenix metropolitan area, culminating a yearlong investigation into alleged employment fraud and identity theft. The operation, executed by Homeland Security Investigations (HSI) and the Internal Revenue Service-Criminal Investigation (IRS-CI), targeted 14 restaurants on Monday.
According to the United States Attorney’s Office for the District of Arizona, the investigation focused on a systemic pattern of the unlawful employment of undocumented immigrants, alongside allegations of document fraud and identity theft. Prosecutors identified 36-year-old Diego Gonzalez-Rosales, a Mexican national, as a central figure in the alleged scheme. Authorities state Gonzalez-Rosales was responsible for recruiting and hiring kitchen staff for the chain’s Arizona locations.
Court documents allege that Gonzalez-Rosales facilitated the employment of undocumented workers by utilizing fraudulent identification documents to bypass federal verification requirements. He faces multiple federal charges, including engaging in a pattern or practice of knowingly employing unauthorized aliens, making false attestations on Form I-9, knowingly transferring means of identification without authority, and aggravated identity theft.
During the tactical operation, federal agents took 39 individuals into custody suspected of working illegally at the establishments. Prosecutors noted that several of these individuals have been charged via criminal complaint for providing false information on federal forms and utilizing fraudulent Social Security numbers to secure employment. The raids represent a significant enforcement action involving multiple federal agencies targeting labor compliance and identity fraud.
Investigative Scope and Legal Proceedings
This extensive federal operation highlights the continued focus of federal law enforcement on the intersection of identity theft and workforce compliance within the hospitality sector. The involvement of IRS-Criminal Investigation suggests that authorities are scrutinizing not only immigration violations but also the potential financial implications of the alleged employment fraud. As the cases proceed, the legal focus will likely center on the extent of the alleged fraudulent document ring and the protocols used for employment verification within the company. It is important to note that all individuals named in criminal complaints, including Gonzalez-Rosales, are presumed innocent until proven guilty in a court of law.
