El Cajon-based San Diego Powder & Protective Coatings and its human resources manager, Karli Buxton, pleaded guilty in federal court to engaging in a pattern or practice of hiring undocumented immigrants who were not authorized to work in the United States. The plea comes after a worksite enforcement action at the company’s facility on March 27, 2025.
The company, which serves as a government contractor, agreed to forfeit $230,000 obtained through these practices. As part of the plea agreement, San Diego Powder & Protective Coatings admitted that operations manager John Washburn and others recruited undocumented workers lacking authorization. Washburn had previously pleaded guilty in June.
Buxton acknowledged that since 2023 she was responsible for verifying new employees’ eligibility to work in the U.S. She admitted being aware that some employees presented fraudulent documents but still hired them.
The company also admitted it frequently sent employees to secure locations such as military bases or ports of entry but avoided sending unauthorized workers to those sites due to additional screening requirements. Employees working illegally often had access to military equipment including components for submarines or aquatic vehicles used by the U.S. Navy.
Under the plea agreement, San Diego Powder & Protective Coatings will participate in the Department of Homeland Security’s Mutual Agreement between Government and Employers (IMAGE) program. This initiative is designed to help businesses strengthen their hiring and employment verification processes by providing guidance on issues like fraudulent documentation and forced labor. Participants must submit their Form I-9s for audit and use E-Verify for all new hires over the next two years.
U.S. Attorney Adam Gordon stated: “Here’s my advice to the business community and to the lawyers who advise them: enroll in IMAGE,” adding, “There are numerous tangible benefits to enrolling your company in IMAGE and ensuring the integrity of your workforce. The Department of Justice has and will continue to prioritize investigations into businesses that are employing individuals without authorization to work in the United States.”
HSI Acting Special Agent in Charge Kevin Murphy said: “Worksite enforcement operations like these deter illegal immigration, ensure employer accountability, and protect the US Workforce,” emphasizing HSI’s commitment “to investigations that hold companies like SDPC accountable for their criminal actions.”
Special Agent Greg Gross from NCIS Economic Crimes Field Office commented: “Bypassing required vetting processes and exposing Department of the Navy resources and information to individuals with insufficient or fraudulent documentation threatens warfighter safety,” stating that NCIS remains dedicated “to safeguarding Department of Navy installations, personnel, and assets against any threat to our national security.”
Assistant U.S. Attorneys Henry F.B. Beshar and Michael A. Deshong are prosecuting this case.
San Diego Powder & Protective Coatings faces charges under Title 8 U.S.C.§ 1324a(a)(1)(A) and (f), which carries a maximum penalty of six months imprisonment per violation along with fines up to $3,000 per unauthorized worker employed.
Multiple agencies contributed to this investigation including Homeland Security Investigations; Naval Criminal Investigative Service; U.S. Department of Homeland Security Office of Inspector General; General Services Administration Office of Inspector General; Small Business Administration Office of Inspector General; Department of Labor Office of Inspector General; Enforcement and Removal Operations (DHS); Drug Enforcement Administration; Bureau Alcohol Tobacco Firearms and Explosives; U.S. Border Patrol; and U.S. Customs and Border Protection.
This prosecution is part of Operation Take Back America—a nationwide initiative aimed at addressing illegal immigration activities by using all available resources within the Department of Justice.
