A hiring manager at the center of a sweeping federal investigation into Zipps Sports Grill has entered a guilty plea, marking the first major resolution in a case that drew national attention when agents simultaneously raided more than a dozen Valley restaurant locations earlier this year.
Diego Armando Gonzalez-Rosales, 36, pleaded guilty to one count of unlawful transfer or possession of a means of identification — a federal identity fraud charge that carries a maximum penalty of 15 years in prison. Under the terms of his plea agreement, however, prosecutors will seek no more than five months of incarceration. A federal magistrate judge has recommended that the plea be accepted by the presiding district court judge.
Gonzalez-Rosales was originally facing a more serious set of charges, including knowingly employing workers without legal authorization, falsifying federal employment verification forms and aggravated identity theft. Prosecutors say he was himself living in the country without legal status while serving as the primary hiring authority for kitchen staff across all of Zipps’ Arizona restaurants — a position he allegedly used to recruit undocumented workers and help them obtain employment through fraudulent paperwork.
The case grew out of a yearlong investigation led by Homeland Security Investigations and IRS Criminal Investigation. On January 26th, dozens of federal agents descended on 14 Zipps locations across the Phoenix metro simultaneously, detaining 39 people in total. Witnesses described agents arriving without warning, catching employees and customers off guard.
Three other individuals arrested during the raids — facing charges of I-9 falsification and identity theft — still have pending cases working through the federal court system.
The U.S. Attorney’s Office for the District of Arizona is handling the prosecution. Sentencing for Gonzalez-Rosales has not yet been scheduled.
