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ESA News Release: [09/18/2008]
Contact Name: Loren Smith or Dolline Hatchett
Phone Number: (202) 693-4676 or x4651
Release Number: 08-1330-NAT
U.S. Labor Department’s Office of Labor-Management Standards
announces August criminal enforcement data
Agency obtained 8 convictions and 10 indictments during month
WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today announced its criminal enforcement data for August 2008. During the month, OLMS obtained eight convictions, 10 indictments and restitution totaling nearly $120,000. The office's totals for fiscal year 2008 (which began on Oct. 1, 2007) now stand at 96 convictions and 122 indictments, with restitution of more than $3,160,000. The bulk of the cases involved the embezzlement of union funds.
"OLMS' law enforcement efforts continue to yield substantial results for union members. Our investigations protect union members by punishing those who abuse their positions of trust," said Deputy Assistant Secretary for Labor-Management Standards Don Todd. "Since 2001, OLMS investigations have led to the convictions of almost 900 individuals and restitution of more than $91 million."
OLMS is the federal law 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, extortionate picketing, deprivation of union members' rights by force or violence, and fraud in union officer elections. The agency's civil program receives and publicly discloses unions' annual financial reports, conducts compliance audits of labor unions and seeks civil remedies for violations of officer election procedures. In certain cases, OLMS also conducts joint investigations with other Labor Department agencies, including the Employee Benefits Security Administration and the Office of Inspector General, as well as other law enforcement agencies including the Federal Bureau of Investigation.
OLMS' public disclosure Web site at www.unionreports.gov contains union annual financial reports and additional reports required to be filed under the LMRDA as well as copies of collective bargaining agreements. Other information, including synopses of OLMS enforcement actions, is available at www.olms.dol.gov.
Editor's Notes: A listing of selected OLMS enforcement actions during August 2008 accompanies this release below. An indictment is the method by which a person is charged with criminal activity. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. Criminal charges and indictments noted in these materials are accusations only.
Selected Enforcement Actions in August 2008
Office of Labor-Management Standards
U.S. Department of Labor
Sentencings
Former Union Officers Sentenced for Making False Statements
On Aug. 4, in the U.S. District Court for the Southern District of California, Esau Faaitiiti and Arthur Clark, former president and vice president, respectively, of Fraternal Order of Police Lodge 12 (located in San Diego, Calif.), were sentenced to five years probation and 60 hours community service, and ordered to pay a $1,000 fine and a $25 penalty assessment. Also, Faaitiiti and Clark were ordered to make joint restitution totaling $22,124.28, with Clark ordered to make additional restitution in the amount of $10,865. On March 20, Faaitiiti and Clark pleaded guilty to making false statements. The sentencing follows an investigation by the OLMS Los Angeles District Office.
Former Boilermakers Local Lodge 523 President Sentenced for Embezzling More Than $16,000
On Aug. 7, in the U.S. District Court for the Middle District of Georgia, James E. Kay, former president of Boilermakers Local Lodge 523 (located in Sandersville, Ga.), was sentenced to six months home confinement, four years of supervised released and a $5,000 fine. Also, Kay was ordered to make restitution in the amount of $5,642.41. Kay previously made restitution in the amount of approximately $11,000. On April 9, Kay pleaded guilty to one count of embezzling union funds in the amount of $16, 979.36. The sentencing follows an investigation by the OLMS Atlanta District Office.
Former Utility Workers Local 308 Officer Sentenced for Embezzling More Than $31,000
On Aug. 14, in the U.S. District Court for the Northern District of Ohio, Amy Cross, former secretary-treasurer of Utility Workers Local 308 (located in Lima, Ohio), was sentenced to three months of home confinement and two years supervised release, and ordered to make restitution in the amount of $31,886. On April 30, Cross pleaded guilty to one count of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS Cleveland District Office.
Former Machinists Local Lodge 2333 President Sentenced for Bank Fraud
On Aug. 14, in the U.S. District Court for the Southern District of Ohio, Brian Dolney, former president of Machinists Local Lodge 2333 (located in Dayton, Ohio), was sentenced to eight months home confinement, five years of supervised release, 100 hours of community service and a $100 fine. Also, Dolney was ordered to make restitution in the amount of $11,565.61. On April 14, Dolney pleaded guilty to committing one count of bank fraud in the amount of $11,565.61. Machinist Lodge 2333 has since merged into Machinists Lodge 225. The sentencing follows an investigation by the OLMS Cincinnati District Office.
Guilty Pleas
Former Union Treasurer Pleads Guilty to Embezzling Union Funds
On Aug. 12, in the U.S. District Court for the Northern District of Ohio, Roxanne Eye, former treasurer of Office and Professional Employees Local 339 (located in Kent, Ohio), pleaded guilty to embezzling union funds in the amount of $9,296. On June 10, Eye was indicted for embezzling union funds in the same amount. The plea follows an investigation by the OLMS Cleveland District Office.
Former Union President Pleads Guilty to Theft of Union Funds
On Aug. 13, in the County Court of Fremont County, Colo., Jamie Solis, former president of Steelworkers Local 594 (located in Canon City, Colo.), pleaded guilty to theft of union funds. On Dec. 20, 2007, Solis was indicted for theft of union funds with a value of $500 or more but less than $15,000. The plea follows an investigation by the OLMS Denver District Office.
Former Union President Pleads Guilty to Embezzling Union Funds
On Aug. 20, in the U.S. District Court for the Eastern District of Texas, Willie Chambers, former president of International Guards Union of America Local 124 (located in Hooks, Texas), pleaded guilty to embezzling union funds in the amount of $6,805. The plea follows a joint investigation by the OLMS Dallas District Office and the FBI's Dallas Division.
Former Steelworkers Local 20 Executive Vice President Pleads Guilty to Embezzling Union Funds
On Aug. 22, in the U.S. District Court for the Eastern District of Wisconsin, Randy Sanders, former executive vice president of Steelworkers Local 20 (located in Kaukauna, Wis.), pleaded guilty to two counts of embezzling union funds in the amount of $762.48 and agreed to make restitution in the amount of $7,300. On May 20, Sanders was indicted on 13 counts of embezzling union funds in the amount of $3,298.66. The plea follows an investigation by the OLMS Milwaukee District Office.
Criminal Charges and Indictments*
Former Union Employee Charged with Embezzling More Than $27,000 in Union Funds
On Aug. 1, in the U.S. District Court for the Northern District of Ohio, an information was filed charging Roberta Dauch, former secretary of North Central Ohio Building and Construction Trades Council (located in Sandusky, Ohio), with embezzling union funds in the amount of $27,537. The charge follows an investigation by the OLMS Cleveland District Office.
Former Roofers Local 37 Employee Indicted for Embezzling More Than $23,000
On Aug. 6, in the U.S. District Court for the Western District of Pennsylvania, Anne O'Rourke, former office secretary of Roofers Local 37 (located in Pittsburgh, Pa.), was charged with one count of embezzling union funds in the approximate amount of $23,056.91 and one count of falsifying union records. The charges follow an investigation by the OLMS Pittsburgh District Office.
Union President Charged with Embezzling approximately $450,000 in Union Funds
On Aug. 6, in the U.S. District Court for the District of Puerto Rico, Jose Luis Caraballo, president of Obreros Unidos del Sur de PR IND NHQ (located in Salinas, Puerto Rico), was indicted on two counts of embezzling union funds. Caraballo is alleged to have embezzled $400,000 under the guise of medical reimbursements and payments for services rendered, meals and car expenses, and unlawfully and willfully converting $49,500 for his own use in the form of a manager's check. The indictment follows a joint investigation by the OLMS Atlanta District Office and the FBI.
Former AFGE Local 900 Officer Charged with Making False Statements
On Aug. 7, in the U.S. District Court for the Eastern District of Missouri, Edna Latimore, former treasurer of AFGE Local 900 (located in St. Louis, Mo.), was charged with one count of making false statements on the local's Form LM-3. Latimore is alleged to have omitted approximately $77,000 in unauthorized payments to herself from the report. The charge follows an investigation by the OLMS St. Louis District Office.
Former ILWU Local 26 Bookkeeper Charged with Embezzling Approximately $108,000
On Aug. 8, in the U.S. District Court for the Central District of California, Rosa Miriam Della Porta, former bookkeeper of International Longshore and Warehouse Union (ILWU) Local 26 (located in Los Angeles, Calif.), was indicted on one count of embezzling approximately $108,000 in union funds. The indictment follows an investigation by the OLMS Los Angeles District Office.
Former CWA Local 88667 Officer Charged with Embezzling Union Funds
On Aug.12, in the U.S. District Court for the Western District of Pennsylvania, Michael R. Rhoades, former secretary-treasurer of Communications Workers of America (CWA) Local 88667 (located in Latrobe, Pa.), was charged in a one count indictment with embezzling union funds in the amount of $8,001.86. The charge follows an investigation by the OLMS Pittsburgh District Office.
Former Steelworkers Local 1124 President Charged with Embezzling More Than $15,000
On Aug. 19, in the U.S. District Court for the Northern District of Ohio, Kenneth Saltz Jr., former president of Steelworkers Local 1124 (located in Massillon, Ohio) was indicted for embezzling $15,809 in union funds and making false entries in union records. The indictment follows an investigation by the OLMS Cleveland District Office.
Former Union Employee Charged with Embezzlement
On Aug. 20, in the U.S. District Court for the Southern District of Ohio, Rebecca Montgomery, former bookkeeper/office secretary of Machinist Eastern Regional Office (located in Cincinnati, Ohio), was indicted on one count of embezzling union funds in the amount of $508.92. The indictment follows an investigation by the OLMS Cincinnati District Office.
Former Steelworkers' Employee Charged with Embezzling More Than $87,000 in Union Funds
On Aug. 26, in the U.S. District Court for the Western District of Pennsylvania, Donna J. Simpson, former secretary of Steelworkers District 10 (located in North Versailles, Pa.), was indicted on one count of embezzling union funds in the amount of $87,823.18. The charge follows an investigation by the OLMS Pittsburgh District Office.
Enforcement Actions and Civil Complaints
SEIU Local 1107 Enters into Voluntary Compliance Agreement with OLMS
On Aug. 1, OLMS entered into a voluntary compliance agreement with the Service Employees International Union Local 1107 (located in Las Vegas, Nev.), concerning the challenged election of officers conducted on Sept. 4 and 5, 2007. The union agreed to conduct, under OLMS supervision, a new election for the positions of president, executive vice president, secretary, trustee (three positions), vice president for the City of Las Vegas Housing Authority, chief steward for the City of Las Vegas Housing Authority, nursing chief steward for St. Rose San Martin, vice president for Sunrise Hospital and nursing chief for University Medical Center. The OLMS investigation disclosed that all candidates were not given equal access to union steward lists which some candidates used to make campaign phone calls, employer resources were used to collect contributions that were donated to a slate's campaign fund, and employer funds were used in preparing and mailing campaign literature. The agreement follows an investigation by the OLMS San Francisco District Office.
U.S. Department of Labor Files Suit to Set Aside AFGE National Union Officer Election
On Aug.11, in the U.S. District Court for the District of Columbia, the department filed suit against the American Federation of Government Employees (AFGE) (located in Washington, D.C.). The lawsuit seeks to void the May 17, 2008, election for District 2 AFGE national vice president and have a new election, under OLMS supervision, for that position. The suit alleges that the union denied a member in good standing the right to run for office. The lawsuit follows an investigation by the OLMS Washington District Office.
Court Approves Stipulation Agreement between U.S. Department of Labor and Union
On Aug. 13, the U.S. District Court for the District of Puerto Rico approved a stipulation of settlement between the U.S. Department of Labor and the Union Laboral Puertorriquena Trabajadodres de la Puerto Rico Cement Co. (located in Ponce, Puerto Rico). The settlement resulted from the department's April 14 complaint against the union challenging its October 2007 election of officers. The OLMS investigation of the challenged election disclosed that the union failed to provide a reasonable opportunity for members to nominate candidates for office. The parties agreed that the Department of Labor will supervise new nominations and officer elections on or before October 31, 2008. The settlement follows an investigation by the OLMS Atlanta District Office.
IUOE Local 520 Enters into Voluntary Compliance Agreement with OLMS
On Aug. 14, OLMS entered into a voluntary compliance agreement with the International Union of Operation Engineers (IUOE) Local 520 (located in Granite City, Ill.), concerning the election of officers conducted on Aug. 10, 2007. The union agreed to conduct, under OLMS supervision, a new election for the positions of business manager, president, vice president, recording-corresponding secretary, treasurer and financial secretary. The OLMS investigation of the challenged election disclosed that union funds were used in the preparation of campaign literature. The agreement follows an investigation by the OLMS St. Louis District Office.
Bakery Workers Local 253 Enters into Voluntary Compliance Agreement with OLMS
On Aug. 18, OLMS entered into a voluntary compliance agreement with Bakery Workers Local 253 (located in Cincinnati, Ohio) concerning a challenged election of officers conducted on Nov. 16 and 17, 2007. The union agreed to conduct, under OLMS supervision, new nominations and an election for the position of sergeant at arms. The OLMS investigation of the challenged election revealed that an ineligible candidate ran for sergeant at arms. The agreement follows an investigation by the OLMS Cincinnati District Office.
U.S. Department of Labor Files Suit Against Teamsters Local 886
On Aug. 29, in the U.S. District Court for the Western District of Oklahoma, the department filed suit against Teamsters Local 886 (located in Oklahoma City, Okla.). The lawsuit seeks to nullify the Oct. 9, 2007, election for secretary-treasurer and one trustee, and seeks a new election for those officer positions under OLMS supervision. The complaint alleges that the union denied members in good standing their right to vote, permitted ineligible persons to vote and failed to allow candidate observers to view portions of the election process. The lawsuit follows an investigation by the OLMS Dallas District Office.
*An indictment is the method by which a person is charged with criminal activity. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. Criminal charges and indictments noted in these materials are accusations only.
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