On August 7, 2009, the U.S. Immigration and Customs Enforcement (ICE) announced that Shipley Do-Nut Flour and Supply Company, Inc., headquartered in Houston, Texas, and three of its senior managers were sentenced following guilty pleas to criminal charges that they and the company unlawfully conspired to harbor and employ undocumented workers. Shipley supplies baking materials and logistical support to retail stores and to 200 franchises across Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas. Shipley was sentenced to three years’ court supervision, a criminal fine of $250,000 and a civil forfeiture of $1.334 million. The three senior managers were sentenced to six months’ probation and fined from $1,000 to $2,000. The company owner pleaded guilty last year and was sentenced to the same probationary term and fined $6,000.

During its investigation of Shipley, ICE also arrested 27 undocumented workers who were employed by the company and lived in company-provided housing. The investigation resulted because Shipley failed to respond to 42 No-Match letters it had received from the Social Security Administration.