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ESA News Release: [08/07/2007]
Contact Name: Dolline Hatchett David James
Phone Number: (202) 693-4650 or x4676
Release Number: 07-1210-NAT

U.S. Department of Labor’s Office of Labor-Management Standards reports four indictments, six convictions during July for union funds embezzlement

Court-ordered restitution from enforcement actions exceeds $101 million since 2001

WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today announced its criminal enforcement data for July 2007. During July, OLMS obtained four indictments and six convictions, for a total of 73 indictments and 100 convictions during fiscal year 2007 to date. These indictments and convictions primarily involve union officers and employees who have embezzled union funds.

"We are committed to protecting union members' dues payments and ensuring transparency in labor union reporting to allow workers to review their unions' expenditures," said Deputy Assistant Secretary for Labor-Management Standards Don Todd. "Since fiscal year 2001, OLMS investigations have yielded a total of 810 indictments with 781 convictions and court-ordered restitution exceeding $101 million."

OLMS is the federal enforcement agency responsible for administering most provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). The agency's criminal enforcement program includes investigations of embezzlement from labor organizations, and its civil program includes the collection and public disclosure of unions' annual financial reports, compliance audits of labor unions, and investigations of wrongdoing in union officer elections.

OLMS's public disclosure Web page at www.unionreports.gov contains union annual financial reports and additional forms required to be filed under the LMRDA. Other information, including synopses of OLMS enforcement actions, is available on OLMS's home page at www.olms.dol.gov.

Editor’s Note: A listing of selected OLMS enforcement actions during July 2007 is below.

Selected Enforcement Actions in July 2007
Office of Labor-Management Standards
U.S. Department of Labor

On July 9, 2007, in the U.S. District Court for the Eastern District of Michigan (Northern Division), Willie Haynes, former financial secretary of the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) International Union Local 362, pled guilty to one count of willfully making false statements on the annual financial reports (Form LM-2) filed by Local 362 for fiscal years 2001, 2002 and 2003. On June 19, 2007, Haynes was charged with making false statements and representations of material facts. The guilty plea follows an investigation by the OLMS Detroit District Office.

On July 11, 2007, in the U.S. District Court for the Eastern District of New York, Frederick Contini, developer of the 2 Broadway Project, was sentenced to five years probation and ordered to make $8,085,000 in restitution. On March 31, 2003, Contini pled guilty to Conspiracy to Receive, Possess and Dispose of Money Obtained by Fraud and Transported Across State Lines, Obstruction of Justice, and engaging in an Unlawful Monetary Transaction. The sentencing follows a joint investigation of members and union officials of Elevator Constructors Local One by the OLMS New York District Office and the FBI.

On July 23, 2007, in the U.S. District Court for the District of Delaware, Michael A. Pingitore, former secretary-treasurer of the Delaware Rural Letter Carriers Association, pled guilty to six counts of embezzlement of union funds in the amount of $58,908.38. The guilty plea follows a joint investigation by the OLMS Philadelphia District Office and the U.S. Postal Service Office of Inspector General.

On July 25, 2007, in the U.S. District Court for the District of Kansas, Kelli Tyrell-Moore, former executive assistant of the Kansas State Nurses Association, pled guilty to one count of embezzling union funds. On April 18, 2007, Tyrell-Moore was charged with embezzling $63,397.16 in union funds. The guilty plea follows an investigation by the OLMS Kansas City Resident Investigator Office.

On July 27, 2007, in the U.S. District Court for the District of Maryland, Walter Fisher, former secretary-treasurer of United Transportation Union Local 1949, was sentenced to six months in prison to be followed by six months of home detention and two years probation. Fisher also was ordered to pay $45,000 restitution to the union. On May 3, 2007, Fisher pled guilty to one count of embezzling more than $30,000 but less than $70,000 in union funds. The sentence follows an investigation by the OLMS Washington District Office.

On July 30, 2007, in Superior Court for the District of Columbia, Bradley Burton, former executive assistant to the secretary-treasurer of the AFL-CIO, was charged with one count of second degree theft for causing the AFL-CIO to pay $7,663.34 in meal expenses for his wife. Subsequently, Burton pled guilty and received a suspended sentence of 180 days in jail, 70 hours of community service, probation for one year, a $350 fine and an order to make any restitution that had not already been repaid. The plea and sentence follow an investigation by the OLMS Washington District Office.

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