What a story. Bottom line - your company cheated two Mexicans or whoever, out of two weeks pay. They got two weeks work for free.
Legally, they could be sued big time and I hope they are. Employers are supposed to check BEFORE a person works. So when payday comes there is no rip off such as you describe.
How awful! Talk about thievery! Used to be called slavery. Must go by another name today! Probably a more sophisticated one to reflect the times.