In Oregon, Gangs Take Over as Sex Trafficking Goes Offline

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PORTLAND —This river city along Interstate 5 has long had a reputation as a hotspot for child sex trafficking, even after a 2010 report to Congress made it clear that Seattle and other American cities are just as bad and that sex with children is a burgeoning American pastime.

It’s a sad truth many communities have yet to embrace. But consider the numbers:

Police say escort ads for young women are a good barometer of the size of a trafficking market in any town — women billed as young but legal who often turn out to be minors. The Portland metro area, population 2.3 million, saw 377 total listings for escorts in a recent week on the web site Backpage. Seattle, with a metro-area population of 3.5 million, had 523 — roughly the same rate per capita. In Atlanta, where the population is three times larger, there were more than 1,100 listings.

Lots is happening in Portland to combat the problem of children being forced into the sex trade – usually by pimps who first present themselves as boyfriends. In Portland, authorities have learned lessons that are important for Seattle and other cities along I-5 corridor, which enables sex trafficking to stretch to Southern California:

  • Trafficking of minors for sex increasingly is handled by gangs rather than individual pimps.
  • These gangs who previously squared off over riskier crimes like drug dealing are cooperating to help each other evade police as prostituting minors becomes a larger and safer staple of their income stream.
  • The gangs and others prostituting girls – 96 percent were female in a 2013 Portland study – are learning to promote their victims via word of mouth, phones, sex parties, and publications handed out on the street rather than the more-easily-traceable internet channels of, say, five years ago.
  • Much of this activity is occurring around concerts and major sporting events such as the Super Bowl – anywhere large congregations of men are expected.

As the deputy sheriff heading the Human Trafficking Task Force in Multnomah County, Ore., Keith Bickford is acutely aware of these trends. And he’s grateful to have a special helper, a woman who works as an advance guard at concerts and sporting events. When she gets there, she snaps up magazines and brochures from the sex trade.

Among the latest was a tabloid-sized glossy, a barely dressed girl on the cover poised over a line of cocaine.

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Region’s largest auto dealer accused of wage theft, discrimination

Many wage theft cases involve relatively small amounts of money, often promised in an oral agreement and paid in cash. Not so with a lawsuit filed against O’Brien Auto Group in King County Superior Court today, which could impact hundreds of current and former employees who allegedly were promised more than they were paid for selling cars at the company’s dealerships.

The suit was brought by an immigrant from India who seeks to broaden his complaint to a class action, and who also filed a second suit Tuesday accusing O’Brien of discriminating against him because of his racial background.

The O’Brien Auto Group claims to be the largest auto dealer in the Pacific Northwest, with annual sales exceeding $500 million. Repeated attempts Tuesday to reach managers of the O’Brien company for comment on the suits were unsuccessful.

If true, the allegations would comport with a pattern InvestigateWest revealed in August: Employers failing to pay overtime, minimum wage or, as alleged in this case, promised commissions.

The lead plaintiff in the proposed class-action suit, car salesman Ruhul Kayshel, worked at O’Brien Auto Group’s Toyota-Scion of Kirkland dealership from October 2012 to July 2014. The suits say he was fired after complaining to human resources about what he described as blatantly racist comments made by one of his supervisors.

Often working as many as 84 hours a week and selling 40 cars a month, Kayshel was among the top O’Brien salesmen in the region, he says.  In the suit, Kayshel claims that Toyota-Scion of Kirkland failed to pay him as stipulated in a sales compensation plan.

This is part of what Seattle attorney Stephen Teller, who specializes in discrimination and employment law, describes as a “widespread pattern of wage theft by paying salespeople smaller commissions than (O’Brien) owes them under their employment contracts.”

When asked how much the dealership owed him, Kayshel was quick to respond, “hundreds of thousands of dollars.”

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Seattle mayor: Education, then enforcement, on wage theft and sick leave

Seattle Mayor Ed Murray with Councilman Nick Licata at Monday's press conference.
Photo: City of Seattle

Clutching a copy of Politico lauding his leadership in passing the $15 minimum wage, Seattle Mayor Ed Murray on Monday proposed creating a city office to police employers who cheat employees out of their wages or sick leave.

Murray’s proposed Office of Labor Standards would also crack down on employers who illegally use arrest records to guide hiring decisions. In general, the office would serve as a one-stop shop for both aggrieved workers and employers trying to ensure they comply with Seattle’s progressive labor laws, Murray said.

“We must be proactive in working with business and with labor in making sure that these laws are complied with and that they are understood,” Murray said at a news conference Monday.  “My budget plan to the City Council will include new tools to help educate, and where necessary enforce, worker protection.”

Murray’s announcement is based on recommendations by a city advisory committee that included business and labor representatives. The new seven-person city office would represent an increase of 5.5 city personnel devoted to the issue.  It would be housed in the Seattle Office for Civil Rights.

The new office would at first focus on educating business owners and employees about their rights and responsibilities, later moving into the role of investigator and enforcer of Seattle’s wage laws.

“Education will be the primary focus of this office in the near term,” said Murray. “This is not about gotcha, this is about helping folks.”

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Reporter Conversation: Wage Theft in Washington

Seattle can raise the minimum wage, but can the city enforce it? Jason Alcorn talked with KUOW's Marcie Sillman about that question — and what our reporting on wage theft means for Washington workers.

Listen in!

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Washington, Seattle Struggle to Help Workers Collect Millions in Stolen Wages

Representatives of Working Washington, UFCW 21 and Casa Latina picket the Queen City Grill in June.  Photo: Allegra Abramo.

On a sunny mid-June  evening, two dozen protesters in scarlet, green and gold T-shirts paced in a circle in front of Queen City Grill in Belltown.

“Wage theft is a crime,” they chanted. “Pay your workers or do the time.”

One protester’s sign: “You pay, we leave!”

The protest was organized to pressure the restaurant owner on behalf of former employee Fernando Moreno Ruiz, who said he was owed more than $5,500 in back wages.

Moreno Ruiz said he worked for the owner for more than six years. But last year, his paychecks started bouncing. Alone in the U.S. for the past decade, Moreno Ruiz counted on the wages to support his wife and two children in Mexico.

By December he couldn’t wait any longer. He quit. The lost wages almost cost him his marriage, he said, because his wife thought he didn’t want to send money home anymore.

“I tried to do honorable work, and he didn’t know how to honor me as a worker,” Moreno Ruiz said of his boss.

The protest against Queen City Grill was organized by Casa Latina, which runs a day worker center and educational programs for immigrants. The Seattle organization gets hundreds of calls a year from workers like Moreno Ruiz who say employers have failed to pay them some or all of their agreed wages.

The protesters marched for only 10 minutes before Moreno Ruiz and a Casa Latina organizer were called into a back office.

The owner, Robert Eickof, never came out of the office, nor did he respond to several phone calls later from InvestigateWest seeking comment.

But after a few minutes, Moreno Ruiz emerged. Back out on the sidewalk, he beamed as he flashed $800 in crisp $100 bills and a promissory note for the rest.

A broken system

Seattle may soon find that passing the $15 minimum wage was the easy part. The real challenge will be making sure workers actually get what they deserve under the law.

However satisfying that June evening in Belltown proved for Fernando Moreno Ruiz, that is not the way the system is supposed to work.

In the last eight years both the Washington Legislature and the Seattle City Council passed laws to address what’s coming to be understood as a huge problem: Wage theft. That’s withholding wages or denying benefits rightfully owed to an employee. It’s a misdemeanor under city and state law. Widespread violations of minimum wage laws, overtime provisions and other examples of wage theft have been well documented in recent decades.

And yet in hundreds of cases annually, Washington fails to retrieve workers’ shorted wages, a review of state records by InvestigateWest shows. Meanwhile, the city ordinance has yet to bring about even a single prosecution of employers who withhold pay, InvestigateWest found.

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Pay Violations Rampant in Low-Wage Industries Despite Enforcement Efforts

A warehouse workers protest in Illinois. Photo: Peoplesworld/Flickr

For workers stuck on the bottom rung, living on poverty wages is hard enough. But many also are victims of wage theft, a catch-all term for payroll abuses that cheat workers of income they are supposedly guaranteed by law.

Editor's Note
InvestigateWest is proud to feature this piece by FairWarning, a Los Angeles-based nonprofit investigative news organization focused on public health and safety issues.

Over the last few years employers ranging from baseball’s San Francisco Giants to Subway franchises to Farmer’s Insurance have been cited for wage violations. More often, though, wage abuses are not reported by victims or punished by authorities despite being routine in some low-wage industries.

“If you steal from your employer, you’re going to be hauled out of the workplace in handcuffs,” said Kim Bobo, a Chicago workers rights advocate and author. “But if your employer steals from you, you’ll be lucky to get your money back.

Victims typically are low wage, low-skilled workers desperate to hang on to their jobs. Frequently, they are immigrants—the most vulnerable and least apt to speak up. “They know that if they complain, there’s always someone else out there who is willing to take their job,” said Maria Echaveste, a former labor official during the Clinton administration who is now at the University of California, Berkeley School of Law.

While heart-breaking for employees, wage theft also robs federal and state treasuries of many billions of dollars in taxes, and puts employers who play by the rules at a serious competitive disadvantage.

Fear Stifles Complaints of Wage Abuse

A protest in Seattle. Photo by Alex Garland/Demotix.

Karim Ameri allegedly decided to play hardball after learning that his Los Angeles recycling business was under investigation for allegedly failing to pay the minimum wage or overtime to workers putting in 60-hour weeks.

Editor's Note
InvestigateWest is proud to feature this piece by FairWarning, a Los Angeles-based nonprofit investigative news organization focused on public health and safety issues.

Court records say Ameri pressured employees of Recycling Innovations, a string of bottle-and-can redemption centers, to lie to federal officials about his company’s pay practices. He allegedly threatened to fire workers or report them to immigration authorities if they cooperated with U.S. Labor Department investigators.

In one court document, Ameri is said to have “threatened to break an employee’s arm” — although an accountant for the business said Ameri got tripped up by language barriers and didn’t mean it as a real threat of violence.

Federal officials in December took the unusual step of getting a restraining order to bar threats or interference with their investigation. Without admitting wrongdoing, the company in May agreed in a settlement to pay more than $74,000 in back wages and damages to 13 underpaid workers. Ameri declined to comment.

The case reflects a fact of life about wage abuses. Violations often are concealed, and regulators hindered, because workers fear what will happen if they speak up.

Member Exclusive: Fishing for answers in Duwamish River records

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We just published our latest SIDEBAR — an exclusive monthly dispatch from inside our newsroom just for InvestigateWest members.

For August we have a piece by Executive Director Robert McClure about getting, and not getting, government records into the public eye:

State and federal freedom-of-information laws give investigative journalists a look behind the curtain at the internal workings of government. An essential tool, they allow us to help the public better understand what government is doing and saying on its behalf.

The people can better govern their governors, in other words.

So we were recently taken aback by how many documents the City of Seattle and King County withheld in one of our latest rounds of Freedom Of Information requests. The sheer volume of records withheld suggests an epic legal battle brewing over the Duwamish River cleanup.

To read the rest...

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