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NEW BEDFORD — Workers at a New Bedford seafood processing plant filed a civil class action lawsuit in U.S. District Court Massachusetts over allegations of extortion as a condition of employment.
Lawyers for five employees filed the lawsuit against Marder Trawling, Inc., and Workforce Unlimited, Inc., on Oct. 24. In it, they accuse the companies of a scheme where the employees paid the then-manager of the Marder plant, Francisco Ixcotoyac Dionicio, $100 a week as a condition of employment.
In addition, the filings allege that Marder and Workforce required employees residing in Rhode Island to take transportation to and from the plant and pay the companies an additional $60 weekly as a condition of employment.
The lawsuit alleges the companies violated the federal Fair Labor Standards Act, the Massachusetts Minimum Wage Law, Wage Act, and Temporary Worker Right to Know Act.
“Marder is among countless other companies that exploit the vulnerable community of immigrant workers with impunity,” said Keren Salim, an attorney representing the workers, in a news release. “This country cannot allow powerful companies to use and abuse workers as a business model.
“We encourage the federal and state governments to act to protect all members of our communities.”
The named plaintiffs include: Maximiliano Diaz Perez, Lorenzo Suar Panoj, Maria Lucrecia Tzampop Gomez, Yohangly Mishell Garcia Mendez, and Maily Adriana Velasquez Morales.
Adrian Ventura, the executive director of the Centro Comunitario de Trabajadores, said the lawsuit was necessary to ensure companies are held just as accountable as workers for systemic abuses.
“Marder and Workforce have contributed to a system of exploitation against workers in our community,” he said. “It’s time for these companies to be made responsible for what happens under their watch.”
Jason A. Dixon-Acosta, Ixtocoyac Dionicio’s attorney, denied the allegations.
“He denies the claims,” he said. “He looks forward to the truth coming to light through the legal process.”
In a statement responding to the lawsuit, Marder Trawling told The Light that ownership fired Ixtocoyac Dionicio on May 27.
“It is Marder’s understanding that court filings accuse the above individual with actions that if proven may amount to financial crimes perpetrated upon his subordinates,” Marder said.
“As we have regarding the earlier criminal accusations, Marder will cooperate with law enforcement regarding any alleged workplace financial crimes by this former employee,” the statement said. “Marder Trawling will respond to the lawsuit through the legal process, but our focus remains where it has always been — on the safety, dignity, and well-being of our people.”
Workforce Unlimited did not respond to a phone call requesting comment.
Allegations
According to the filings, Ixtocoyac Dionicio entered into agreements with Workforce to pay the employees working between Jan. 1, 2021, and May 27, 2025, at or near minimum wages. As a condition of their employment, according to the suit, he required employees to pay him $100 weekly as a supplement to his own salary.
Approximately 80% of those working at the plant were hired and employed through Workforce, according to the lawsuit.
“Defendant Marder left it to Defendant Ixcotoyac to supplement his salary from Marder as he saw fit,” the suit says. “Defendant Ixcotoyac, acting within the scope of his employment with Marder, supplemented his salary by deducting from Marder Plaintiff Diaz and Marder Subclass’s earned wages, through direct cash payments.”
Several plaintiffs who spoke with The Light said they felt they had no choice but to go along with the alleged extortion.
“I just arrived from Guatemala and I wasn’t sure about the legality [of the payments],” said Maily Velasquez, one of the named members of the class, in Spanish. “But I paid it because I needed the work.”
The New Bedford resident said she began working at the plant in November 2023 and remains employed there. She said she continued paying the $100 fee to Ixtocoyac Dionicio until the end of his employment in May.
“When we gave him the money,” she said, “he didn’t even say ‘thank you.’”
“I paid him about $5,000,” said a class member and undocumented Guatemalan man from Providence who asked not to be named due to fears around his status. “I felt offended but I felt I had to do it for the work.”
In addition to the kickbacks, according to the lawsuit, Ixtocoyac Dionicio, a Rhode Island resident, owned a fleet of vans and required R.I.-based employees to use the transportation in their commutes. They were allegedly charged up to $60 a week. According to the lawsuit, that equaled more than 3% of employees’ pay, in violation of the Massachusetts Temporary Worker Right to Know Act.
“I felt offended,” said the worker from Providence, who was obligated to use the provided transit. “But what else could I do?”
The suit claims that Marder and Workforce “should have been aware” of Ixtocoyac Dionicio’s activities.
“Marder benefitted from the agreement because it was able to retain Defendant Ixcotoyac at a lower salary than the market permitted for a plant manager,” the lawsuit alleges. “Marder benefited from the agreement because, through its agent Ixcotoyac, it was able to reduce its labor cost.”
“Marder knew or should have known that Marder Plaintiff Diaz and the Marder Subclass were required to pay the Extorted Kickback Deduction to Marder through its agent in exchange for keeping their jobs,” the lawsuit alleges.
According to the suit, the employees are looking to recoup their lost wages and their dignity.
“I decided to speak out because I could no longer stay quiet and be complicit,” said Velasquez. “I hope for justice and that we are returned what he robbed from us.”
Ixtocoyac Dionicio criminal case
Ixtocoyac Dionicio is currently facing criminal charges in New Bedford District Court independent of the case. The charges included five counts of indecent assault and battery on a person 14 and over, one count of open and gross lewdness, and another of intimidation of a witness, juror, police officer, or official.
The charges, originally filed on June 23, initially included two counts of rape, though the prosecutor declined to move forward on either of those charges.
According to documents from New Bedford District Court, Ixtocoyac Dionicio was released on July 2 after putting $75,000 cash bail and surrendering his passport. He is currently on home confinement and is next expected in court on Nov. 5.
Dixon-Acosta, Ixtocoyac Dionicio’s attorney, declined to comment on those charges.
Marder said they launched their own investigation in June upon learning of the criminal charges filed against Ixoctoyac Dionicio.
“Upon learning of the criminal accusations against this former employee and completing our internal investigation, Marder Trawling took immediate steps to strengthen workplace safeguards,” the company said. “As part of our ongoing commitment to transparency and employee welfare, the company has engaged an independent, highly respected firm to conduct additional workplace training.
“We undertook compliance reviews and provided counseling services for employees,” the statement continued. “These actions reaffirm Marder Trawling’s dedication to maintaining a professional, supportive, and lawful work environment for all team members.”
Kevin G. Andrade can be contacted at kandrade@newbedfordlight.org
Editor’s note: This story was updated on Nov. 6, 2025, to delete a reference to the plaintiffs as former employees. They all worked at the plant at the time the lawsuit was filed.
I am a 1st generation US citizen, my dad and his parents were born in Quebec, then he served in the US Army during WWII. I respect immigrants as long as they came legally. Those who are here illegally, they face the consequences of what the Biden administration let them come here with false hope. I feel bad for them but it was THEIR CHOICE to break our laws. They should take our offer to self deport with Godspeed.