A manager of a San Diego powder coating facility that has numerous federal military contracts pleaded guilty to hiring undocumented workers.
Philip JohnsonJohn Washburn, general manager of San Diego Powder and Protective Coatings in El Cajon, pleaded guilty June 18 in federal court to “engaging in a pattern or practice of hiring undocumented immigrants without authorization to work,” according to the U.S. Attorney's Office for the Southern District of California.
As part of the plea agreement, Washburn admitted that he knew at least 10 workers were undocumented immigrants at the company. He also says that three were living in a company warehouse where U.S. Navy submarine components were being stored.
Warrant Served by Federal Agents
The charges stemmed from a search warrant that federal agents served at the company’s warehouses in March. U.S. Magistrate Judge Barbara L. Major immediately sentenced Washburn to one year’s probation and 50 hours of community service.
“According to the plea agreement, Washburn admitted he had communicated with other managers at San Diego Powder and Protective Coating about certain employees who had ‘issues’ with their paperwork or ‘bad paperwork,’” says the U.S. Attorney's Office. “Meaning some employees lacked valid documents showing they had legal authorization to work in the U.S.”
The U.S. Attorney's Office says, “in or around 2024, the defendant communicated with company officials regarding assigning employees with ‘good paperwork’ to work at the military base because those employees would be subjected to additional screening prior to entering restricted areas on the base.”
According to the San Diego Tribune, “An employee working as a cooperating source with federal agents wore a hidden video camera on March 5 and spoke with the company’s general manager. The conversation, according to the affidavit, implied the general manager knew he was undocumented and using fraudulent paperwork to work there under a fake name.”
The newspaper reports that “on March 19, an undercover HSI special agent applied for a job at the company using a fraudulent permanent resident card and Social Security number, the search warrant reads.”
Company President Blames Manager
Philip Johnson, the CEO and President of San Diego Powder and Protective Coatings, told local media that the hiring of undocumented workers was Washburn’s doing.
“Unfortunately, we had a couple of bad actors, a supervisor who was in our employment here and a painter,” Johnson says. “Two months ago, they were arrested for drug trafficking and transporting drugs. Apparently, since then, there's been an ongoing investigation of my facility and the personnel that work here.”
Johnson says he took over operations of the company in 2007, and that they “primarily serviced walk-in customer projects, custom fencing companies, auto performance and restoration, and some US Navy and military support contractors.”
Washburn was hired in late 2019, according to his bio on the company’s website. He says a friend recommended that he speak with Johnson, who was looking for a general manager.
“I liked Phil's ideas and passion for taking the company to the next level through technology and efficiency after talking with him, so I joined the team,” Washburn says in his bio. “I've been with SDPC for three years, and we've seen steady growth. We are always looking for new and better ways to improve our workflow. My ambition is to see the company grow to its full potential.”
Over $300,000 in Military Contracts
NBC7 in San Diego reports that San Diego Powder and Protective Coatings “has won 17 U.S. Navy contracts since 2010. The total amount earned from those contracts is nearly $312,000, including painting and coating vehicles, aircraft, as well as marine vessels.”
Johnson says he was unaware that Washburn hired undocumented workers.
“Recently, we acquired a contract to paint parts for the pedestrian crossing for the Border Patrol,” Johnson says. “With this signing of the contract, we had to submit background checks for personnel. And I submitted about 15 people. Apparently, during the vetting of those people for the background checks, there were a couple of people who came up with bad documents.”
Homeland Security Investigations San Diego investigated the cases with assistance from the Department of Homeland Security Office of Inspector General; GSA - Office of Inspector General; United States Border Patrol; Customs and Border Protection, ERO; NCIS; SBA – Office of Inspector General; Drug Enforcement Administration San Diego Field Division, and the Bureau of Alcohol Tobacco Firearms and Explosives.
