News Release

Printer-Friendly Version

ESA News Release: [03/14/2008]
Contact Name: Loren Smith or Richard Manning
Phone Number: (202) 693-4676
Release Number: 08-0327-NAT

U.S. Labor Department enforcement agency announces eight criminal convictions for February

Convictions up 20 percent, indictments 39 percent over fiscal year 2007

WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today announced its criminal enforcement data for February 2008. During the month, OLMS obtained eight convictions, 11 indictments and court orders of restitution totaling $185,318. The office's totals for fiscal year 2008 (which began on Oct. 1, 2007) now stand at 49 convictions, 57 indictments, and court-ordered restitution of $1,251,798. The bulk of the cases involved the embezzlement of union funds.

These totals represent increases of 20 percent (41 to 49) in convictions and 39 percent (41 to 57) in indictments over fiscal year 2007.

"This financial restitution, as well as the convictions and indictments, highlight the vital role OLMS plays in protecting America's union members," said Deputy Assistant Secretary for Labor-Management Standards Don Todd. "We continue to be proud of our work to eliminate wrongdoing against unions, and our efforts have resulted in the successful prosecution of almost 850 individuals since 2001. We also have obtained almost 900 indictments and obtained court orders of restitution for more than $103 million in 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 Office of Inspector General, as well as 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 February 2008 is 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 February 2008
Office of Labor-Management Standards
U.S. Department of Labor

Sentencings

Former Local Union Secretary-Treasurer Pleads No Contest and Sentenced for Theft
On Feb. 4, 2008, in the Douglas County, Wisconsin Circuit Court, John Sigafus, former secretary-treasurer of Machinists Local W-335, pled no contest to theft of union funds in the amount of $2,500 or less. Subsequently, Sigafus was sentenced to one year probation and ordered to make restitution in the amount of $5,363.91. The sentencing follows an investigation by the OLMS Milwaukee District Office.

Former CWA Local Officer Sentenced for Embezzling Union Funds
On Feb. 6, 2008, in the U.S. District Court for the Eastern District of Michigan, Denise Nichols, former secretary-treasurer of Communications Workers of America Local 4050, was sentenced to two years probation and ordered to pay a special assessment of $100. On Oct. 12, 2007, Nichols pled guilty to one count of embezzling union funds in the amount of $3,804.20. Nichols had previously paid restitution in the amount of $6,162. The sentencing follows an investigation by the OLMS Detroit District Office.

Guilty Pleas

Former Union Officer Pleads Guilty to Embezzling More Than $147,000 in Union Funds
On Feb. 8, 2008, in the U.S. District Court for the Northern District of Ohio, Betty Illig, former secretary-treasurer for Graphic Communications Workers Local 638-S and the Tri-State District Joint Council, pled guilty to embezzling $145,675 in union funds and submitting false Form LM-3 reports. The plea follows a joint investigation by the OLMS Cleveland District Office and the Department of Labor's Office of the Inspector General.

Former Union Officer Pleads Guilty to Embezzling More Than $25,000 in Union Funds
On Feb. 8, 2008, in the U.S. District Court for the Eastern District of Wisconsin, Carolyn M. Wallace, former president of Steelworkers Local 02-356, pled guilty to embezzling union funds in the amount of $25,200. On Dec. 13, 2007, Wallace was charged with one count of embezzling union funds in the same amount. The plea follows an investigation by the OLMS Milwaukee District Office.

Former Union Officer Pleads Guilty to Embezzlement
On Feb. 19, 2008, in the U.S. District Court for the Eastern District of Arkansas, Martin Hayes, former secretary-treasurer of Steelworkers Local 1671, pled guilty to one count of embezzling money from a labor organization. On June 6, 2007, Hayes was charged with embezzling union funds in the amount of $9,033.25.The guilty plea follows an investigation by the OLMS Dallas District Office.

Criminal Charges and Indictments*

Former Union Officer Charged with Making a False Statement
On Feb. 4, 2008, in the U.S. District Court for the Middle District of Tennessee, an information was filed against Pauline M. Gibson, former president of the Drivers, Warehousemen, Maintenance and Allied Workers of America Local 1, charging her with making a false statement and representation of a material fact, knowing it to be false, on the local's annual financial report. The charge follows an investigation by the OLMS Nashville District Office.

Former Local Union President Charged with Embezzling More Than $17,000 in Union Funds
On Feb. 6, 2008, in the U.S. District Court for the Northern District of Ohio, an information was filed against Francis Pagan, former president of Boilermakers Local Lodge 3M, charging him with embezzling $17,415 in union funds. The charge follows an investigation by the OLMS Cleveland District Office.

Former Union Officer Charged with Embezzling Union Funds
On Feb. 6, 2008, in the U.S. District Court for the Southern District of Ohio, Chad Mowery, former secretary-treasurer of Brotherhood of Local Engineers and Trainmen Division 282, was charged with embezzling $2,537 in union funds. The charge follows an investigation by the OLMS Cincinnati District Office.

Former Union Officer Charged with Bank Fraud
On Feb. 7, 2008, in the U.S. District Court for the Southern District of Ohio, an information was filed charging Brian Dolney, former president of Machinists Lodge 2333, with one count of bank fraud totaling $11,565. Donley fraudulently negotiated union checks at the Security National Bank in Springfield, Ohio. The charge follows an investigation by the Cincinnati 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.