Jacob opposes guest-worker programs, Sexton's statement said, but "it would appear that for some reason, Mr. Jacob had a 'guest-worker program' of his own."

Jacob confirmed that Sexton had worked for him but left to take another job. He said he couldn't comment on a statement that he hasn't seen, but he questioned Sexton's motives.

Jacob said he would show the Deseret Morning News documents supporting his statements, but he declined to fax them late Thursday afternoon and said they were in his office, which was closed.

He declined to release the name of the attorneys who helped the Silvas set up the company. The Silvas could not be reached for comment.

Their Saratoga Springs company, incorporated in May 2000, is listed with the Utah Department of Commerce, with Marta Araya as the registered agent. The license is listed as expiring last month, and the company isn't listed in the telephone directory.

Timothy Wheelwright, chairman of the Utah chapter of the American Immigration Lawyers Association, said he's aware of such companies, but they're not common.

Wheelwright said that with few exceptions, aliens with student visas can't work. He didn't know the Silva case specifics, but he said nothing prevents foreign nationals from setting up a company in the United States.

"The company agrees to provide services to Mr. Jacob, and he agrees to pay a fee for the services provided," he said. "They don't receive salary or wages from the company. They get paid by taking a distribution from the company in the form of dividends or a loan."

Such corporations represent a gray area in the law because another statute prevents contracting with people known to be ineligible to work in the United States, Wheelwright said.

"If, in fact, the scenario outlined here is, in fact, what John (Jacob) has done, technically there may not be a violation," Wheelright said. "However, it's clearly an accommodation of someone who is not authorized to work."

Cannon's campaign manager, Nathan Rathbun, declined to comment Thursday on Jacob's employment practices, although he did say the situation is "further testimony" to an unworkable immigration system.

"From his wide-ranging comments, it is difficult to ascertain Mr. Jacob's real position on immigration reform," he said. "Perhaps this controversy will help make it clear that immigration is a complex issue that cannot be addressed by way of sound bites and generalizations."

Alex Segura, director of the Utah Minuteman Project, attributed the charges, raised by two vocal opponents of Jacob, to mere mudslinging. The charges were raised by Tony Yapias, whose group Proyecto Latino de Utah has endorsed Cannon because of his support for comprehensive immigration reform.