ALBANY, N.Y. -- Acting U.S. Attorney, Andrew Baxter, said, "IFCO has agreed to pay $20.7 million over four years in civil forfeitures and penalties."

The Houston based pallet company has dozens of plants around the country but it's the one just outside of Albany where the large federal investigation began back in 2005.

"Illegal aliens in the Albany IFCO plant were observed ripping up their W-2 pay stubs," said Baxter.

That one tip to federal agents led to an investigation of 40 IFCO plants in 26 states and the arrest of almost 1,200 illegal aliens, most from Mexico and Central America, 24 arrested at the Albany plant, with an estimated 6,000 illegally working at IFCO from 2003 to 2006 according to officials.

Homeland Security Acting Assistant Secretary for Immigration and Customs Enforcement, John Torres, said, "Over the past two-and-a-half years, nine IFCO managers and former managers have pleaded guilty to various federal charges. Their charges include conspiracy to unlawfully employ illegal aliens."

Under this settlement the trial of others with similar charges will not be impacted. As long as IFCO works with law enforcement, no corporate criminal charges will be pursued.

"We've also made an effort not to put the company out of business so we don't punish the innocent employees and shareholders," said Baxter.

Officials say illegal aliens caught up in this are in various stages of deportation. A few are trying to get legal status, while officials say they hope this settlement sends a message.

"The case should stand as an example who thinks they can gain an unfair competitive advantage by employing illegal aliens," said Torres.

But with that message comes the catch - according to officials we spoke with, $2.6 million of the settlement will go towards backpay supposedly owed to workers, many of whom were in this country illegally. We're told other federal agencies are now trying to find those workers to give them that backpay, even as some go through the deportation process.