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ESA News Release: [01/15/2008]
Contact Name: Loren Smith or Richard Manning
Phone Number: 202-693-4676
Release
Number: 08-0071-NAT
U.S. Labor Department enforcement agency announces eight criminal convictions for December 2007
OLMS also obtained eight indictments and more than $202,000 in court orders of restitution
WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today announced its criminal enforcement data for December 2007. During the month, OLMS obtained eight convictions, eight indictments and court orders of restitution totaling $202,228. The office's totals for fiscal year 2008 (which began on Oct. 1, 2007) now stand at 22 convictions, 36 indictments and court-ordered restitution of $754,397. The bulk of the cases involved the embezzlement of union funds.
"The eight convictions this month represent a continuing reminder that OLMS serves a vital role in protecting America's union members," said Deputy Assistant Secretary for Labor-Management Standards Don Todd. "We are proud of our efforts to eliminate wrongdoing against unions, and our work has resulted in the successful prosecution of more than 820 individuals since 2001. We also have obtained 877 indictments and obtained court orders of restitution for more than $103 million during that time."
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 collects 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'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 Notes: A listing of selected OLMS enforcement actions during December 2007 accompanies this release. 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.
Former Union Officer Incarcerated for Embezzling more than $80,000 in Union Funds
On Dec. 10, 2007, in the U.S. District Court for the Northern District of West Virginia, Danny E. Beyser, former financial secretary of Mine Workers Local 1638, was sentenced to one year and a day of incarceration and three years of supervised release. He also was ordered to pay restitution in the amount of $80,135.40 and a $100 special assessment. On Oct. 2, 2007, Beyser pled guilty to one count of embezzling more than $70,000 in union funds. The sentencing follows an investigation by the OLMS Pittsburgh District Office.
Former Union President Pleads Guilty to Theft
On Dec. 12, 2007, in the District Court of Maryland for Prince George's County, Wesley Leroy Wicks, former president of Graphic Communications International Union Local 1-C, pled guilty to one count of theft of $500 or greater. Subsequently, Wicks was sentenced to three years of probation and paid restitution to the local in the amount of $4,804.70. The plea and sentencing follow an investigation by the OLMS Washington District Office.
Former Union Officer Sentenced for Embezzling Union Funds
On Dec. 13, 2007, in the U.S. District Court for the Northern District of Indiana, Gary E. Sharp, former president and business manager of the International Brotherhood of Electrical Workers Local 2344, was sentenced to one year probation and a $100 special assessment. On Aug. 28, 2007, Sharp pled guilty to one count of embezzling $630 in union funds. The sentencing follows an investigation by the OLMS Chicago District Office.
Former Union Officers Sentenced for Willfully Failing to Maintain Union Records
On Dec. 13 and 17, 2007, in the U.S. District Court for the Eastern District of Wisconsin, Debra Timko and Danny Iverson, former presidents of the Service Employees International Union Local 150, were sentenced for failing to maintain union records. Timko was sentenced to six months home confinement and three years probation, and was ordered to make restitution in the amount of $38,795.10. Iverson was sentenced to three years probation and was ordered to make restitution in the amount of $24,853. On Aug. 23, 2007, Timko and Iverson both pled guilty to two counts of failing to maintain union records. The sentencing follows an investigation by the OLMS Milwaukee District Office.
Former Union Officer Sentenced for Embezzling more than $15,000 in Union Funds
On Dec. 14, 2007, in the U.S. District Court for the Eastern District of Missouri, Kathy Rankin, former financial secretary-treasurer of Transportation Communications Union Local 512, was sentenced to three years probation. Special conditions of her probation require her to serve three months in the home confinement program and make restitution in the amount of $15,622.34. On Oct. 12, 2007, Rankin pled guilty to one count of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS St. Louis District Office.
Former NTEU Local President Pleads Guilty to Bank Robbery
On Dec. 3, 2007, in the U.S. District Court for the Eastern District of Michigan, Darren Johnson, former president of National Treasury Employees Union Chapter 78, pled guilty to one count of bank robbery and incidental crimes. On Nov. 16, 2007, Johnson was charged with stealing union funds in the amount of $4,756.75 that were within the care, custody, control, management or possession of Comerica Bank. The plea follows an investigation by the OLMS Detroit District Office.
Former Union Officer Pleads Guilty to Embezzling Union Funds
On Dec. 3, 2007, in the U.S. District Court for the Northern District of Oklahoma, Steve Dobyns, former secretary-treasurer of Glass Molders Plastics Local 325, pled guilty to embezzling funds in the amount of $865. The plea follows an investigation by the OLMS Dallas District Office.
Former Union Employee Pleads Guilty to Embezzling more than $28,000 in Union Funds
On Dec. 5, 2007, in the U.S. District Court for the District of Colorado, Paula Adair-Butts, former office secretary for Plasterers Local 577, pled guilty to embezzling union funds in the amount of $28,480. The plea follows an investigation by the OLMS Denver District Office.
Former Union Officer Charged with Making False Entries
On Dec. 13, 2007, in the U.S. District Court for the Northern District of Ohio, Kathleen Drake, former financial secretary of Machinists Lodge 2339-C, was charged with making false entries in union records. The charge follows an investigation by the OLMS Cleveland District Office.
Former Union President Charged with Embezzling more than $25,000 in Union Funds
On Dec. 13, 2007, in the U.S. District Court for the Eastern District of Wisconsin, an information was filed against Carolyn M. Wallace, former president of Steelworkers Local 02-356, charging her with one count of embezzling union funds in the amount of $25,200. The charge follows an investigation by the OLMS Milwaukee District Office.
New York City School Bus Inspector Arrested and Charged
On Dec. 12, 2007, in the U.S. District Court for the Southern District of New York, Jeffery Berger, a New York City school bus inspector, was charged with one count of conspiracy to commit theft and bribery concerning programs receiving federal funds, in violation of 18 USC 371. He was arrested and released on a $1 million bond. The charge follows a joint investigation by the OLMS New York District Office, the Federal Bureau of Investigation and the Department of Labor's Office of Inspector General of the New York City school bus industry. That investigation uncovered the existence of corruption in Local 1181 of the Amalgamated Transit Union, the primary union that represents drivers and escorts for school bus companies in New York City.
Former President of Teamsters Local 812 and JC 16 Indicted for Extortion and Embezzlement
On Dec. 17, 2007, in the U.S. District Court for the Southern District of New York, Anthony Rumore, former president of Teamsters Local 812 and Joint Council 16, was indicted on charges of extortion and embezzlement. Rumore demanded and obtained services from Local 812's employees, union officers, business agents and staff for the personal benefit of himself and his family. These personal services were unrelated to any union business and interfered with the employees' ability to perform legitimate work on behalf of Local 812's members. Local 812's employees complied with Rumore's demands due to fear that Rumore would cause them economic harm, including the loss of their employment with Local 812. This charge follows an investigation by the OLMS New York District Office.
Former Union Officer Indicted for Embezzling Union Funds
On Dec. 18, 2007, in the U.S. District Court for the Southern District of Iowa, James Ireland, former financial secretary for the United Auto Workers Local 1672, was indicted on one count of embezzling union funds in the amount of $3,662. The indictment follows an investigation by the OLMS St. Louis District Office.
Former Union Officer Indicted for Embezzling more than $13,000 in Union Funds
On Dec. 19, 2007, in the U.S. District Court for the District of Oregon, Thomas Wallace, former financial secretary of Amalgamated Transit Union Division 757, was indicted on two counts of embezzling union funds in the approximate amount of $13,492 and two counts of making a false statement on the local's annual financial report (Form LM-2). The indictment follows an investigation by the OLMS Seattle District Office.
OLMS to Supervise Union Election
On Dec. 7, 2007, the U.S. District Court for the District of Northern California approved the stipulation of settlement between the Department of Labor and Local 10 of the International Longshore and Warehouse Union. The settlement is the result of the department's May 25, 2007, complaint filed against the local challenging its November 2006 election for vice president, business agent, executive board, and caucus and convention delegates. The parties have agreed that the Department of Labor will supervise the local's current regularly scheduled election. An OLMS investigation revealed that the union improperly declared candidates ineligible to run for office. The settlement follows an investigation by the OLMS San Francisco District Office.
Union Enters into a Voluntary Compliance Agreement with OLMS
On Dec. 14, 2007, the department entered into a voluntary compliance agreement with the American Federation of Television and Radio Artists (AFTRA) Los Angeles Local concerning the challenged election of officers conducted on May 22, 2007. In that election, some members were mailed a ballot and election notice packet less than 15 days prior to the date that ballots must have been returned in order to be counted. Also, there were errors in the tallying of ballots. The local agreed to conduct a new election for the nine Los Angeles Board of Directors for Actors officer positions and the 13 National Board of Directors officer positions that may have been affected by the violations. The voluntary compliance agreement follows an investigation by the OLMS Los Angeles District Office.
* Indictments and informations are the methods by which people are 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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