Zipps Sports Grill Raids Uncover Alleged Identity Theft Ring Employing Undocumented Workers
Arizona announced the criminal indictments Thursday evening, revealing a complex scheme involving fraudulent documents and stolen identities.
phoenix, AZ – The examination, which began in february 2025, alleges a systematic effort to employ undocumented workers using falsified identification, raising questions about the extent of knowledge within the Zipps management structure. In total, 39 individuals were arrested during the raids, though the status of the remaining 35 – whether they face civil immigration charges – remains unclear, as spokespersons for the U.S. Attorney’s Office and Immigration and Customs Enforcement (ICE) have not yet responded to requests for clarification.
The four individuals facing criminal charges are Ludwin benjamin Perez velasco, Edwin Flores Rosales, Salvador Villanueva-Rosas, and Diego Armando Gonzalez-Rosales. Perez Velasco, 22, a Guatemalan national, reportedly paid $80,000 Guatemalan dollars to be smuggled into the U.S. in 2022, and allegedly submitted a fraudulent I-9 form.Edwin Flores-Rosales, 28, was apprehended without identification, according to his indictment. Salvador Villanueva-Rosas, 48, a Mexican citizen, also faces charges related to a fraudulent I-9 form.
Though, the central figure in the alleged scheme appears to be Diego Armando Gonzalez-Rosales, 36, who oversees all Zipps kitchens. He faces five charges,including making false attestations on I-9 forms,transferring means of identity without authority,aggravated identity theft,and a pattern of knowingly employing unauthorized aliens. According to the indictment, Gonzalez-Rosales fraudulently claimed to be a lawful permanent resident, utilizing a social security number and alien registration number belonging to a citizen of Gambia. Investigators allege he is, actually, undocumented, having entered the country illegally from Mexico two decades ago.
“Mr. Gonzalez-Rosales has been living in the United States for decades as a productive, hard-working member of the community,” stated Debbie Jang, Gonzalez-rosales’ attorney, in an emailed statement. “The allegations have made Mr. Gonzales-Rosales, himself a vulnerable individual, a scapegoat for the actions and knowledge of the company. He looks forward to his day in court.”
The investigation revealed a elegant system of identity recycling. Authorities discovered that 76 Zipps employees had between three and 42 active employers other than Zipps during the second quarter of 2025, all while claiming U.S. citizenship on their paperwork. The arizona Department of Economic Security (DES) data showed unusually high wages earned by these individuals,”which is consistent with aggravated identity fraud,” according to the indictments. One stolen social security number was reportedly used to earn over $180,000 across 17 jobs in the same quarter.
Gonzalez-Rosales allegedly admitted to investigators that he assisted undocumented employees in completing fraudulent I-9 forms, providing them with fake names, IDs, and social security numbers. He further claimed that “every cook in the restaurant is working under fraudulent identities” and that managers were aware of the practice, choosing to ignore it to avoid scrutiny during E-verify inspections. He even admitted to taking pictures of valid IDs to provide to employees needing to pass verification checks, though he denied receiving payment for these services.
He also allegedly stated that Zipps routinely rehired individuals under different names and that stolen ids were passed down to new hires. While Gonzalez-Rosales denied formally hiring anyone,he claimed Zipps management largely hired based on his recommendations.
A Zipps spokesperson released a brief statement, saying the company is “reviewing the government’s statements and filings” and cannot comment further due to the ongoing nature of the investigation. Attorneys for Perez Velasco, Flores-Rosales, and Villanueva-Rosas have not yet responded to requests for comment.
The case highlights the ongoing challenges of immigration enforcement and the potential for exploitation within the restaurant industry. As the legal proceedings unfold, the full extent of the alleged scheme and the responsibility of Zipps management will come into sharper focus.
