Republican candidate for Congress John Jacob appears to have violated federal regulations when he paid a Chilean couple through a company he helped them form.

The couple, Oscar and Marta Silva, were in the United States on Oscar's student visa, and would not have been allowed to accept employment beyond part-time on-campus work for Oscar, according to several immigration law experts.

Jacob is trying to unseat U.S. Rep. Chris Cannon, R-Utah, in the upcoming GOP primary for Utah's Third Congressional District. Immigration reform has dominated the campaign discussion, and Jacob has backed stern enforcement of immigration laws on illegal immigrants and those who employ them.

He's been particularly critical of the idea that businesses can't verify the legal status of an employee, calling it "an excuse so they can hire someone at a lower wage so they can make more money."

Jacob has been open about the fact that, from 2000 to 2003, he sponsored the Silvas while Oscar studied nursing at Salt Lake Community College. By sponsoring them, he agreed to be financially responsible for them while Oscar Silva was in school.

But Jacob said that the family expressed discomfort and what he termed "charity" so the Silvas registered a company -- Office Specialist of Utah -- and Jacob contracted with the company for work performed by Marta Silva.

It's not an uncommon arrangement, said local immigration attorney Chris Keen, but it could also be grounds for prosecution.

"That is a technique that many attorneys use, basically to avoid the employment laws of the United States," Keen said. He also acknowledged that he is a Cannon supporter, although he said he is not active in the campaign.

There's nothing wrong with a foreigner forming or owning a company in the United States, Keen noted -- but "foreigners can't run those companies or work for those companies unless they get permission."

That would entail a work authorization card or a specific kind of visa -- and a student visa definitely wouldn't qualify, said Enoc Flores, director of International Services at Brigham Young University.

An international student can work up to 20 hours a week on campus and can get permission to work off campus if the work is related to their field of study. Work permission is granted for economic hardship in rare cases, such as when a parent dies or the student loses his or her sponsor.

The spouse and dependents of a person with a student visa have what's known as an "F-2" visa, and they face even tighter restrictions.

"F-2 cannot work in the United States," Flores said. "They cannot work. They cannot study. There are no exceptions."

Since Jacob had stepped in as the education sponsor, the Silvas again could show sufficient assets to complete the course of education, and therefore would likely not have been given a work authorization by the government if they had applied. Published reports have quoted Jacob associates as saying the Silvas were not authorized to work in the U.S.

If that is true, Jacob would be in violation of U.S. immigration regulations when he paid them through the company he helped establish in their name. The regulations provide no shield for hiring an unauthorized individual through a contractor or subcontractor arrangement.

"Any person or entity who uses a contract (or) subcontract ... to obtain the labor or services of an alien in the United States knowing that the alien is an unauthorized alien with respect to performing such labor or services, shall be considered to have hired the alien for employment in the United States in violation of ... the Act," one section reads.

The key legal point is how much Jacob knew about the restrictions on the Silvas' ability to work, Keen said.

"If the aliens are working under the company, they are breaking the immigration laws," he said. "All that forming an LLC does is protect the people who don't know. If he knows, I don't think he has any protection."

Immigration regulations define "knowing" about a worker's status as including "not only actual knowledge but also knowledge which may fairly be inferred through notice of certain facts and circumstances which would lead a person, through the exercise of reasonable care, to know about a certain condition."

Jacob has said he never checked the Silvas' visas and that he tried to stay within the law.

Jacob said Marta performed secretarial and domestic work, and Oscar did part-time grounds work.

"I created a job for this lady that they could feel they were doing something for me," he said. "We did everything possible to make it legal and right."

"John is a very giving man," said Mike Bevins, Jacob's company financial controller at the time. "On the other hand, John is a businessman and doesn't like to pay taxes on gifts if he doesn't have to.

"We looked for some way to be able to accomplish both things -- help the Silvas and see if it could be done without creating a problem (with taxes)."

Glen Sexton, Jacob's former accountant, said Marta Silva did domestic work at Jacob's home from 1999 until May 2000 and was usually paid cash.

She then went to work in his office, but the arrangement changed because Marta Silva was not employable under federal requirements, Sexton said. He said The Office Specialist of Utah was set up, with Marta Silva as its employee, and she was then contracted to work as a clerk in Jacob's company.

Sexton said she was paid a monthly salary, regardless of her hours worked or not worked,

He said Jacob paid for Marta Silva's schooling plus an all-expenses-paid vacation to California. When Marta Silva had a back injury, unrelated to her employment with Jacob, the payments continued, Sexton said.

Jacob was initially approached by his LDS Church bishop, Gil Fellingham, to help the Silvas.

The family was already in the country and initially had the resources to manage on their own, Jacob said. But their situation took a nosedive because of problems with their assets in Chile, and Jacob was asked to help.

Fellingham said Friday that he wasn't aware of the details of how Jacob and the Silvas managed their affairs.

"They were struggling. As you do in situations in wards, you bring together people who might be able to help," he said. "We felt like we should try to do whatever we could to be helpful."

On Friday, Jacob released tax records showing he paid $109,500 to the Silvas' company during his sponsorship of them.

His campaign also released a letter attributed to Marta Silva, who is the registered agent for Office Specialist of Utah. The letter was directed at the Deseret News and demanded "an official clarification, apology and printed retraction for including our names on spurious claims."

"Both my husband and I have always kept our legal status in the U.S.," she wrote. "Currently, we have the status of 'legal resident' in the country, and my husband is in the process of application for citizenship."

Jacob said he's not worried about legal entanglements.

"If there's anything that I did wrong, I'll fix it," he said.

"For me to step up and help someone with no advantage to me -- I think that's what we're supposed to do. And I did. If that means I get in trouble for it, so be it."

This story appeared in The Daily Herald on page A1.