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NOTE: An indictment is the method by which a person is charged with criminal activity and raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
On December 30, 2003, in the United States District Court for the District
of Montana, Michael LaForge, former president of the National Federation of
Federal Employees Local 224, was sentenced to six months in a pre-release center
and four years probation for embezzlement/theft of government property totaling
$14,622, fraud, and false statements. He was ordered to make restitution in
the amount of $15,647.67 and to pay a fine in the amount of $200. On October
9, 2003, LaForge pled guilty to embezzlement/theft of government property after
cashing union dues rebate checks totaling $14,622, and to fraud and false statements.
The guilty plea and sentence follow an investigation by the OLMS Denver District
Office. [Related documents: HTML | PDF]
On December 22, 2003, in the United States District Court for the Northern
District of Ohio, Alan L. Spates, former president of PACE Local 5-1250, was
charged with embezzling $29,746.28 in union funds and filing a false LM report.
The charges follow an investigation by the OLMS Cleveland District Office. [Related
documents: HTML |
PDF]
On December 20, 2003, in the United States District Court for the Eastern District of Tennessee,
Charles D. Davis, former secretary-treasurer of Locomotive Engineers Division 239, was charged with
embezzling $11,799.20 in union funds, filing a false report, and making false entries in union records.
The charges follow an investigation by the OLMS Nashville District Office.
On December 16, 2003, in the District Court for Chenango County (New York),
Patricia Fletcher, former treasurer of Machinists Local Lodge 1278, was sentenced
to three years probation and ordered to make restitution of $3,300 for third
degree grand larceny. Fletcher pled guilty to the charge on October 14, 2003.
The guilty plea and sentence follow an investigation by the OLMS Buffalo District
Office.
On December 16, 2003, in the United States District Court for District of North
Dakota, William Lane, former president of Machinists Lodge 2525, plead guilty
to one count of embezzlement of $13,500 in union funds, one count of bank fraud,
and one count of destruction of records. Lane was indicted on these three counts
February 11, 2003. The charges were brought following an investigation by the
OLMS Minneapolis Resident Investigator Office.
On December 15, 2003, in the United States District Court for the Eastern District of New York, Robert Santoro, a contractor, was sentenced to seven years in prison for money laundering. Santoro converted checks from the fraudulent funds derived from the 2 Broadway project. On one specific occasion, he cashed a check of illegal proceeds from the 2 Broadway project for approximately $800,000 and gave the cash to another individual indicted in this case. This investigation was part of an ongoing investigation involving the Elevator Constructors Local One operator no-show job scheme. The sentence follows a joint investigation by the OLMS New York District Office, the Department of Labor's Employee Benefits Security Administration, the FBI, and the IRS.
On December 15, 2003, in the United States District Court of Wyoming, Douglas
W. Rodda, former Secretary-Treasurer of the Brotherhood of Locomotive Engineers,
AFL-CIO, Division 245, was sentenced to three (3) years probation, six (6) months
home confinement, and was ordered to pay a penalty of $150 and a fine of $1,500.
On October 10, Rodda plead guilty to a three-count information charging him
with embezzling union funds totaling $26,150, and making false entries and false
statements in union records. Rodda previously made full restitution to BLE,
Division 245. The guilty plea and sentence follow an investigation by the OLMS
Denver District Office. [Related documents: HTML
| PDF]
On December 12, 2003, in Sarpy County (Nebraska) District Court, Barbara Jo
Henry, also known as Barbara Hillis, former treasurer of American Federation
of Government Employees Local 840, was sentenced to three years probation and
ordered to pay restitution in the amount of $7,821 for felony theft. Henry pled
guilty to the charge on September 30, 2003. The guilty plea and sentence follow
a joint investigation by the OLMS Kansas City Resident Office, the Bellevue
Nebraska Police Department and the Department of Defense's Office of the Inspector
General. [Related documents: HTML |
PDF]
On December 9, 2003, in the United States District Court for the Eastern District
of Louisiana, James Robinson, former president of United Food and Commercial
Workers Local 1101, pled guilty to a one count information charging him with
failing to maintain union records. The charge and guilty plea follow an investigation
by the OLMS New Orleans District Office.
On December 4, 2003, in the United States District Court for the Eastern District
of Pennsylvania, Percella Roper, former bookkeeper for Transport Workers (TWU)
Local 234, was sentenced to six months home confinement and five years probation
for embezzlement and aiding and abetting. She was ordered to pay restitution
in the amount of $98,132 which will come from her union pension, including a
$20,000 payment to be received by the court within five days of the sentencing.
On June 10, 2003, Roper was indicted on one count of embezzlement and one count
of aiding and abetting in the embezzlement. She pled guilty on September 4,
2003. The sentence follows an investigation by the OLMS Philadelphia District
Office.
On December 3, 2003, Willie Dell Clark, former treasurer of Letter Carriers
(NALC) Branch 36, the nation's largest Letter Carrier affiliate representing
over 6,300 members, was arrested by the United States Marshals Service at her
home in Denmark, South Carolina, after allegedly fleeing the jurisdiction of
New York. On November 18, 2003, in the United States District Court for the
Southern District of New York, an arrest warrant was issued against Clark charging
her with using her position to embezzle approximately $69,000 in union funds
between January 1999 and July 2001. The charge follows an investigation by the
OLMS New York District Office.
On December 2, 2003, in the United States District Court for the Northern District
of New York, Patricia Ford, former secretary-treasurer of the Public Employees
Federation (PEF) in Albany, was sentenced to six-month home detention, three
years probation and fined $5,000. On June 20, 2003, Ford was found guilty of
agreeing to receive free campaign literature from a public relations consultant
in exchange for an agreement to place that consultant on retainer from the union
if she won re-election. The sentence follows an investigation by the OLMS Buffalo
District Office.
On November 25, 2003, in the United States District Court for the Middle District of Pennsylvania, a
consent decree was entered against Lee Anne Gile, former secretary-treasurer of Carpenters Local 1806,
permanently enjoining her from serving as an officer or employee of a labor organization. The consent decree
follows an investigation by the OLMS Philadelphia District Office. [Related documents:
HTML
| PDF]
On November 21, 2003, in the United States District Court for the Middle District
of Georgia, Jennifer Phillips, former office secretary for Laborers Local 1073,
was indicted on 27 counts of embezzling union funds in the amount of $34,427.74.
The charge follows an investigation by the OLMS Atlanta District Office.
On November 21, 2003, in the United States District Court for the District
of Maryland, Joseph Danik, former financial secretary of the United Electrical,
Radio and Machine Workers of America (UE) Local 121, pled guilty to embezzling
$6,194 in union funds. The plea follows an investigation by the OLMS Washington
District Office.
On November 21, 2003, in the United States District Court for the District
of Oregon, Lawrence Mendelsohn, the co-founder of Wilshire Financial Services
Group, pled guilty to a one-count information charging him with filing a false
tax return. Mendelsohn becomes the tenth person charged and the seventh to plead
guilty in the ongoing investigation into Capital Consultants, LLC (CCL). Clients
of CCL lost approximately $350 million, primarily in union pension funds. The
charge is part of an ongoing investigation of CCL by the OLMS Seattle District
Office, the Internal Revenue Service, the Department of Labor's Employee Benefits
Security Administration, and the Office of the Inspector General. [Related documents:
HTML |
PDF]
On November 20, 2003, in the United States District Court for the District
of Columbia, an indictment was filed against the following individuals in connection
with the theft of $4 million in union funds: James Baxter, former treasurer
of the Washington Teachers' Union (WTU); Gwendolyn Hemphill, former assistant
to the president of WTU; James Goosby, an accountant; and Robin Klein, an accountant.
The indictment includes the following 27 counts: six counts of embezzlement,
one count of conspiracy, five counts of wire fraud, three counts of mail fraud,
two counts of false statements (for a false LM-2 report and a false IRS form
990), one count of money laundering conspiracy, five counts of money laundering,
one count of making a false record, one count of fraud and false statements
in violation of internal revenue laws, one count of first degree theft, and
one count of aiding and abetting. The indictment is part of an ongoing investigation
of the Washington Teachers' Union by the OLMS Washington District Office, the
FBI, the IRS, and the United States Attorney's Office.
On November 19, 2003, in the United States District Court for the Northern
District of Alabama, Ray Lynn Burns, former financial secretary-treasurer of
Paper, Allied Industrial, Chemical and Energy Workers International Union (PACE)
Local 326, plead guilty to one count of embezzling approximately $29,587 in
union funds. The charges had been brought following an investigation by the
OLMS Philadelphia District Office (the case was transferred from the Eastern
District of Pennsylvania to the Northern District of Alabama pursuant to Rule
20 of the Federal Rules of Criminal Procedure and the consent of the parties).
On November 18, 2003, in the United States District Court in the Western District
of Oklahoma, Suzanne Coleman, former secretary-treasurer of Machinist Local
Lodge 2909, was indicted on 13 counts of embezzling union funds. The charges
follow an investigation by the OLMS Dallas District Office.
On November 17, 2003, in the United State District Court for the District of
Oregon, Ty Mariner, former secretary-treasurer of Letter Carriers Branch 3083,
was sentenced to three years probation for filing a false Form LM-4 report.
On April 22, 2003, Mariner was indicted on five counts of embezzlement totaling
$953 and one count of filing a false Form LM-4 report. He pled guilty to one
count of fabrication of an annual financial report filed by a labor union. The
guilty plea and sentence follow an investigation by the OLMS Seattle District
Office. [Related documents: HTML |
PDF]
On November 14, 2003, in the United States District Court for the Middle District
of Florida, Howard Roundtree, former recording secretary of Longshoremen's Association
(ILA), Local 1759, was sentenced to five months imprisonment followed by five
months of home detention and three years probation. Roundtree was ordered to
make restitution of $26,979.46 to Federal Marine Terminals, Inc. in $400.00
monthly increments and to pay a court assessment of $100.00. On July 23, 2003,
Roundtree pled guilty to one count of knowingly causing false statements and
representation of facts in an ERISA document. The sentencing follows a joint
investigation by the OLMS Atlanta District Office, the Department of Labor's
Office of the Inspector General, and the Florida Department of Law Enforcement.[Related documents:
HTML |
PDF]
On November 13, 2003, in the United States District Court for the Southern
District of Texas, a superseding indictment was filed adding new charges against
Byron Boyd, Jr., current president; Charles Little, former president; and John
Rookard, current special assistant to the president, of the United Transportation
Union (UTU). These individuals had been previously charged on September 12,
2003, with racketeering conspiracy and two counts of mail fraud. The superseding
indictment charges all three with one count of racketeering, one count of RICO
conspiracy, and one count of mail fraud. Boyd and Rookard were indicted on a
second count of mail fraud. Additionally, Little and Boyd were charged with
seven counts of embezzling union funds in the amount of $3,658.59; Boyd was
charged with three additional counts of embezzling union funds in the amount
of $4,185.50 and two counts of witness tampering. The indictment alleges that
Boyd, Little and Rookard devised and executed a scheme to defraud the UTU membership
by soliciting and receiving over $525,000 in cash from thirty-four attorneys
nationwide. The charges follow a joint investigation by the OLMS New Orleans
District Office, the Department of Labor's Office of the Inspector General,
and the FBI.
On November 12, 2003, in the United States District Court for the District
of Oregon, Gerhard Hubbard, former business agent and financial secretary of
Roofers Local 156, pled not guilty to a one count information charging him with
stealing from the local's vacation fund. The charge follows an investigation
by the OLMS Seattle District Office. [Related documents: HTML
| PDF]
On November 12, 2003, in the United States District Court for the Northern
District of Alabama, Ana Lorena Phillips, former secretary-treasurer for Communications
Workers of America Local 3974, was sentenced to five months imprisonment followed
by five months of home confinement and three years of supervised probation.
Additionally, Phillips was ordered to pay restitution in the amount of $51,678.79.
On May 13, 2003, Phillips pled guilty to two counts of a five count indictment
charging her with embezzlement and making false entries in union records. The
guilty plea and sentence follow an investigation by the OLMS Nashville District
Office. [Related documents: HTML |
PDF]
On November 12, 2003, in the United States District Court for the Western District
of Washington, Marcie Ballew, former employee of the Washington State Building
and Construction Trades Council, was sentenced to three years of supervised
probation, ordered to pay restitution in the amount of $16,497, and fined $2,000.
On September 4, 2003, Ballew pled guilty to a one-count information charging
her with making a false entry in labor union records. The guilty plea and sentence
follow an investigation by the OLMS Seattle District Office. [Related documents:
HTML |
PDF]
On November 12, 2003, in the United States District Court for the Southern
District of New York, an information was filed against Phyllis Harris, former
secretary-treasurer of Service Employees International Union (SEIU) Local 1199,
charging her with one count of making a false statement and a misrepresentation
of material fact knowing it to be false on the Form LM-2. The charge follows
an investigation by the OLMS New York District Office.
On November 10, 2003, in the United States District Court for the Western District
of Michigan (Southern Division), an information was filed against Mark Campbell,
former president of United Automobile Workers Local 167, charging him with making
false entries in union records. The charge follows an investigation by the OLMS
Detroit District Office.
On November 6, 2003, in the United States District Court for the District of
Columbia, Jacob "Jake" West, former president of the Iron Workers International
Union, was ordered to pay $59,383.57 in restitution to the union. West was sentenced
to three years in prison followed by two years supervised probation for embezzlement
and false union reports on October 8, 2003. The sentence and restitution order
follow a joint investigation by the OLMS Washington District Office, the FBI,
the Department of Labor's Employee Benefits Security Administration, and the
United States Attorney's Office for the District of Columbia.
On November 5, 2003, in the United States District Court for the Eastern District
of Louisiana, an information was filed charging James Robinson, former president
of United Food and Commercial Workers Local 1101, with one count of failing
to maintain union records. The charge follows an investigation by the OLMS New
Orleans District Office.
On November 3, 2003, in United States District Court for the District of Columbia,
James E. Cole, former general treasurer and general secretary of the Iron Workers
International Union, was sentenced to 15 months in prison, followed by 24 months
probation for embezzlement, false union reports, and false union records. Additionally,
Cole was ordered to pay $15,000 in restitution, a $15,000 fine, and a $150 special
assessment. On June 18, 2001, he pled guilty to the charges following a joint
investigation by the OLMS Washington District Office, the FBI, and the United
States Attorney's Office for the District of Columbia.
On October 29, 2003, in the United States District Court for the Northern District
of Ohio, Murdytha Stubbs, former vice president of Steelworkers Local 1-3586-S,
was sentenced to two years probation for embezzling $4,309.40 in union funds.
He pled guilty on August 6, 2003, following an investigation by the OLMS Cleveland
District Office. [Related documents: HTML |
PDF]
On October 28, 2003, in St. Louis County (Minnesota) District Court, Thomas
J. Pender, former business manager and financial secretary of Laborers Local
1097, was sentenced to two years probation for theft and fraud. The conditions
of the sentence require Pender to complete the following: serve a thirty-day
work crew program, pay a fine of $1,000 plus court costs, refrain from using
alcohol and mood altering chemicals (except as prescribed by a physician), submit
to random urinalysis, submit to DNA testing, pay restitution if it is determined
that additional restitution is owed, and show proof that a chemical dependency
treatment program was completed. On April 7, 2003, Pender had been charged with
one count of theft of $7,000 in union funds and one count of financial transaction
card fraud involving $167 in union funds. The charges and sentence follow an
investigation by the OLMS Minneapolis Resident Investigator Office.
On October 24, 2003, in the United States District Court for the District of
Columbia, Richard C. Holton, president of an insurance agency, Holton & Associates, Ltd., was sentenced to four months house arrest and 12 months supervised probation
for bribery. Specifically, Holton made payments on behalf of employers to Iron
Workers International Union officials Jake West, LeRoy Worley, and Stephen Cooper
in exchange for their assistance in influencing other employers to join the
Ironworking Contractors Insurance Program consortium. Holton was ordered to
pay a $15,000 fine, a $75 special assessment, and perform 100 hours of community
service. On October 15, 2003, Holton pled guilty to three counts of bribery.
The guilty plea and sentence follow a joint investigation by the OLMS Washington
District Office, the FBI, and the United States Attorney's Office for the District
of Columbia.
On October 24, 2003 in the United States District Court for the District of
New Jersey, an information was filed against Anna Maria Adinolfi, former dues
collector for the Northern New Jersey Regional Council of Carpenters, charging
her with embezzling $8,036 in union funds. Adinolfi allegedly failed to deposit
dues from members who were paid in cash. The charge follows an investigation
by the OLMS New York District Office.
On October 23, 2003, in the United States District Court for the Eastern District
of Wisconsin, Leland Haskins, Jr., former secretary-treasurer of the Brotherhood
of Locomotive Engineers Division 173, was sentenced to 14 months imprisonment
followed by three years of supervised release and ordered to pay restitution
in the amount of $37,900. Haskins pled guilty on July 28, 2003, to two counts
of embezzlement and two counts of falsifying union records following an investigation
by the OLMS Milwaukee District Office. [Related documents: HTML
| PDF]
On October 23, 2003, in the United States District Court for the Northern District
of West Virginia, James Cooper, former president of PACE Local 5-276, was sentenced
to one day of probation for falsifying union records. He was ordered to make
restitution in the amount of $5,000 and to pay a $25 special assessment. On
October 9, 2003, Cooper pled guilty to falsifying union records following an
investigation by the OLMS Pittsburgh District Office. [Related documents: HTML
| PDF]
On October 22, 2003, in the United States District Court for the Southern District
of Ohio, Bridgette Robinson, former financial-secretary of Glass, Molders, Plastics
Local 170, pled guilty to a one-count information charging her with making a
false statement. The charge follows an investigation by the OLMS Cincinnati
District Office.
On October 20, 2003, in the United States District Court for the District of
Maryland, Tammy Lynne Reeves, former office manager/administrative assistant
of Graphic Communications International Union Local 72-C, was sentenced to 18
months incarceration and three years probation for embezzling $169,366.30 in
union funds. She was ordered to make restitution in the amount of $21,366.30
and to pay a special assessment of $100; she paid $148,000 in restitution prior
to the indictment. On November 18, 2002, Reeves was indicted on one count of
embezzlement; she pled guilty on June 3, 2003. The sentence and guilty plea
follow a joint investigation by the OLMS Washington District Office and the
FBI.
On October 17, 2003, in the United States District Court for the Northern District
of Ohio, Maria Eaton, former secretary-treasurer of Machinists Lodge 2714, pled
guilty to an information charging her with embezzling $10,000 in union funds.
The charge follows an investigation by the OLMS Cleveland District Office.
On October 17, 2003, in the United States District Court for the Eastern District
of Missouri, Nick A. Torpea, former business agent for Food and Commercial Workers
Local 655, was sentenced to one year probation and fined $750 for making a false
entry in union records. Torpea pled guilty to the charge on July 30, 2003. Torpea's
sentencing followed the September 18, 2003, sentencing of his father, Nick J.
Torpea, to three years probation for making a false statement to a Department
of Labor investigator. The sentencing follows an investigation by the OLMS St.
Louis District Office.
On October 17, 2003, in the United States District Court for the Northern District
of Indiana, an information was filed against Sandra Briggs, former Treasurer
of Letter Carriers Branch 378, charging her with one count of false recordkeeping.
The charge follows an investigation by the OLMS Chicago District Office.
On October 16, 2003, in the United States District Court for the District of
Maryland, an indictment was filed against Joseph Danik, former financial secretary
of the United Electrical, Radio and Machine Workers of America (UE) Local 121
charging him with one count of embezzling $6,194.86 in union funds and one count
of aiding and abetting. The indictment follows an investigation by the OLMS
Washington District Office.
On October 15, 2003, in the United States District Court for the District of
Columbia, Errol Alderman, a District of Columbia government employee, pled guilty
to one count of conspiracy to launder money from the Washington Teachers' Union.
Alderman and Michael Martin (who pled guilty to money laundering on April 11,
2003) laundered more than $480,000 through a shell corporation called Expressions
Unlimited. Alderman admitted to receiving more than $47,000 in union checks,
which he returned to Martin to be given to former union president, Barbara Bullock
(who pled guilty to conspiracy and mail fraud on October 7, 2003), and a union
employee. The guilty plea is part of an ongoing investigation of the Washington
Teachers Union by the OLMS Washington District Office, the FBI, the IRS and
the United States Attorney's Office.
On October 14, 2003, in the Dallas County (Texas) Court, Paul Martin Clark,
former president of AFGE Local 2921, was indicted on one count of misapplication
of fiduciary property aggregate (amounts between $1,500 and $20,000). The indictment
follows an investigation by the OLMS Dallas District Office.
On October 14, 2003, in the District Court for Chenango County (New York),
an indictment was filed against Patricia Fletcher, former treasurer of Machinists,
Local Lodge 1278 charging her with third degree grand larceny. The charge alleged
that Fletcher made unauthorized withdrawals from the union's bank accounts in
the amount of $3,300 between November 2001 and July 2002. The charge follows
an investigation by the OLMS Buffalo District Office.
On October 10, 2003, in the United States District Court for the Southern District
of Ohio, Debra Dougherty, former office secretary for IBEW Local 648, was sentenced
to 30 days imprisonment followed by five years supervised release (the first
five months will be served in home confinement) for bank fraud. She was ordered
to make restitution in the amount of $36,600 and to pay a $100 assessment. On
June 26, 2003, Dougherty pled guilty to bank fraud following an investigation
by the OLMS Cincinnati District Office.
On October 10, 2003, in the United States District Court for the Eastern District
of New York, Matthew Downey, a representative of Elevator Constructor Local
One, was sentenced to 78 months imprisonment and three years supervised release.
He was ordered to pay a total of $2.6 million in restitution for fraud involving
a no-show elevator operator scheme against Local One and to forfeit the sum
of $800,000 for his involvement in the Local One racketeering enterprise. Downey,
jointly and severally with other co-conspirators, was ordered to pay $7 million
in restitution for fraud involving the 2 Broadway Project. On February 5, 2002,
Downey was indicted for unlawful activity involving Elevator Constructors Local
One. Additionally, there were 27 members of Local One, including two business
agents, indicted for their involvement in the no-show scheme at 19 different
construction sites in New York City. On April 16, 2002, in a separate indictment,
Downey was charged, along with seven other individuals (including the developer
of the 2 Broadway Project, the Operating Engineers Local 14 treasurer, and Elevator
Constructor Local One representatives), for defrauding the New York Metropolitan
Transit Authority and ZAR Realty of more than $10 million in construction money
that was intended for vertical transportation costs on the 2 Broadway project.
On April 24, 2003, Downey pled guilty to various charges in both indictments.
The guilty plea and sentence follow a joint investigation by the OLMS New York
District Office and the FBI.
On October 9, 2003, in the United States District Court for the Northern District
of West Virginia, James Cooper, former President of PACE Local 5-276, pled guilty
to a one count information charging him with falsifying union records. In addition
to other possible costs to be determined at sentencing, the defendant agreed
to pay restitution in the amount of $5,000. The information was filed on September
16, 2003, following an investigation by the OLMS Pittsburgh District Office.
On October 9, 2003, in the United States District Court for the District of
Montana, Michael La Forge, former president of National Federation of Federal
Employees Local 224, entered a voluntary plea of guilty for embezzlement/theft
of government property totaling $14,622, fraud, and false statements. In an
earlier plea dated August 18, 2003, La Forge pled not guilty. La Forge was indicted
on July 17, 2003 following an investigation by the OLMS Denver District Office.
On October 8, 2003, in the United States District Court for the District of
Columbia, Jacob F. "Jake" West, former general president of the Iron Workers
International Union, was sentenced to three years imprisonment followed by two
years supervised probation for embezzlement and false union reports. West was
ordered to pay a fine in the amount of $125,000 and to make restitution. Although
the amount of restitution will be determined later by the court, West will be
required to make monthly payments in the amount of $25,000. On October 25, 2002,
West pled guilty to one count of embezzlement from an employee pension benefit
plan and one count of false union reports. The guilty plea and sentence follow
a joint investigation by the OLMS Washington District Office, the FBI, the Department
of Labor's Employee Benefits Security Administration, and the United States
Attorney's Office for the District of Columbia.
On October 7, 2003, in United States District Court for the District of Columbia,
Barbara Bullock, former president of the Washington Teachers Union, pled guilty
to one count of mail fraud and aiding and abetting, and one count of conspiracy
to embezzle union funds. On October 3, 2003, an information was filed alleging
that Bullock and others embezzled over $2.5 million. A sentencing hearing has
been scheduled for January 2004; Bullock faces up to 10 years imprisonment as
well as significant fines. The charges and guilty plea are part of an ongoing
investigation by the OLMS Washington District Office, the FBI, the IRS, and
the United States Attorney's Office.
On October 6, 2003, in the Superior Court for the District of Columbia, Vashone
Wimbush, former treasurer for CWA Local 2381, was sentenced to two years probation
and 50 hours of community service for embezzling $5,070 in union funds. On July
21, 2003, Wimbush pled guilty following an investigation by the OLMS Washington
District Office.
On October 3, 2003, in the United States District Court for the District of
Columbia, an information was filed against former Washington Teachers' Union
President Barbara Bullock charging her with one count of mail fraud and aiding
and abetting and one count of conspiracy to embezzle union funds. The information
states that Bullock and others embezzled over $2.5 million by committing the
following acts: making personal charges on the union's credit cards; writing
and causing the writing of improper union checks to herself and others with
false purposes written on the checks; writing and causing the writing of union
checks to intermediaries who laundered the funds and shared the proceeds; and
fraudulently instructing the District of Columbia Government to withhold $144
more than the lawful dues deduction from the paychecks of approximately 5,000
union members and then using most of this money for personal reasons. The information
also charges Bullock and others, including outside accountants, with filing
false Form LM-2 reports and false Form 990s. The charges are part of an ongoing
investigation by the OLMS Washington District Office, the FBI, the IRS, and
the United States Attorney's Office.
On October 2, 2003, in the United States District Court for the Southern District
of Texas, Ralph Dennis, former Director of Insurance for the United Transportation
Union Insurance Association, pled guilty to conspiring with others to violate
the Racketeer Influenced and Corrupt Organizations Act (RICO). Dennis had been
indicted on September 12, 2003, on one count of RICO conspiracy and two counts
of mail fraud and aiding and abetting. These charges and the guilty plea resulted
from an investigation by the OLMS New Orleans District Office, the Department
of Labor's Office of the Inspector General, and the FBI.
On October 1, 2003, in the United States District Court for the Middle District
of Pennsylvania, Diane Lewis, former bookkeeper for the UNITE District Council
of Northeastern Pennsylvania, was sentenced to 10 months in prison for embezzlement,
three years of supervised release and ordered to undergo mental health counseling.
In addition, she was ordered to pay $11,985.80 in restitution. On July 23, 2002,
Lewis pled guilty to one count of embezzling more than $28,000 in union funds.
The charges were brought following an investigation by the OLMS Philadelphia
District Office.
On September 30, 2003, in Sarpy County (Nebraska) District Court, Barbara Jo
Henry, aka Barbara Hillis, former treasurer of American Federation of Government
Employees Local 840, pled guilty to theft. The guilty plea follows a joint investigation
by the OLMS Kansas City Resident Office, the Bellevue (Nebraska) Police Department,
and the Department of Defense's Office of the Inspector General. [Related documents:
HTML | PDF]
On September 30, 2003, in the United States District Court for the District
of Columbia, an information was filed charging Errol Alderman, a District of
Columbia government employee, with one count of conspiracy to launder money
as part of a scheme to embezzle funds from the Washington Teachers' Union. The
information states that Alderman conspired to launder approximately $483,000
through a shell company called Expressions Unlimited. The charge is part of
an ongoing investigation of the Washington Teachers' Union by the OLMS Washington
District Office, the FBI, the IRS and the United States Attorney's Office.
On September 26, 2003, in the United States District Court for the Eastern
District of New York, John Mills, a former member of Elevator Constructors Local
One, pled guilty to an information charging him with conspiracy to demand and
receive unlawful labor payments in violation of the Taft Hartley Act. This investigation
was part of Elevator Constructors Local One operator no-show job scheme for
which an indictment was filed on February 5, 2002. The guilty plea follows a
joint investigation by the OLMS New York District Office, the Department of
Labor's Employee Benefits Security Administration, the FBI, and the IRS.
On September 25, 2003, in the United States District Court for the Middle District
of Pennsylvania, James Hubler, the former financial secretary of Steelworkers
Local 14375, was sentenced to three months and three days imprisonment for embezzling
$27,226 in union funds. The sentence will run concurrently with Hubler's present
sentence from an unrelated conviction. Following the prison term, Hubler will
be on a two year supervised release. He was ordered to make restitution in the
amount of $24,186.79 in monthly installments of at least $5.00. Hubler pled
guilty to the charge on January 23, 2003. The sentence and guilty plea follow
an investigation by the OLMS Philadelphia District Office. [Related documents:
HTML | PDF]
On September 25, 2003, in the United States District Court for the Southern
District of Ohio, Russell Guy Taylor, former treasurer of Machinists Lodge 90,
pled guilty to an information charging him with embezzling $36,142 in union
funds. The information was filed on August 22, 2003. The charges follow an investigation
by the OLMS Cleveland District Office. [Related documents: HTML
| PDF]
On September 25, 2003, in the United States District Court for the Eastern
District of New York, Joseph Fusilli, former member of Elevator Constructors
Local One, was sentenced to ten months in prison for violating the Hobbs Act.
He was ordered to pay $10,000 in restitution and fined $2,000. On November 12,
2002, Fusilli pled guilty to an information charging him with illegal activity
relating to the Loews Theatre Project; he had been indicted on February 5, 2002.
The sentencing follows a joint investigation by the OLMS New York District Office,
the Department of Labor's Employee Benefits Security Administration, the FBI,
and the IRS.
On September 25, 2003, in the United States District Court for the Northern
District of Illinois, James M. Duff, principal leader, organizer and manager
of the Duff family business enterprise, and the following six individuals were
indicted by federal grand jury on 30 counts of fraud, money laundering, and
racketeering conspiracy: Patricia Green Duff, William Stratton, Terrence Dolan,
Starling Alexander, John Leahy, and Edward Wisniewski. The indictment involves
two alleged fraud schemes: one relating to more than $100 million in government
and private contracts obtained by sham woman- and minority-owned businesses
and the other relating to over $3 million in unpaid workers' compensation insurance
premiums. All of the charges involve the activities of the Duff family businesses.
The individuals were charged as follows:
- James M. Duff was charged with racketeering conspiracy, money laundering
conspiracy, wire fraud, 19 counts of mail fraud, and six counts of money laundering,
involving both the contract fraud and insurance fraud schemes.
- William E. Stratton, a long-time friend and associate of the Duff family,
and an employee for over 18 years of Liquor Distributors Union Local 3, a
union managed by members of the Duff family, was charged with racketeering
conspiracy, money laundering conspiracy, wire fraud, four counts of mail fraud,
and five counts of money laundering involving the contract fraud and insurance
fraud schemes.
- Patricia Green Duff, mother of James Duff, was charged with eleven counts
of mail fraud involving the contract fraud scheme.
- John J. Leahy, president of Leahy & Associates insurance brokerage, was
charged with eight counts of mail fraud involving the insurance fraud scheme.
- Edward Wisniewski, insurance agent and vice president of Leahy & Associates,
was charged with eight counts of mail fraud involving the insurance fraud
scheme.
- Starling Alexander, operations manager for Remedial Environmental Manpower,
one of the Duff family firms, was charged with one count of wire fraud involving
the insurance fraud scheme.
- Terrence Dolan, an officer and director of Windy City Maintenance, one of
the Duff family firms, was charged with eleven counts of mail fraud involving
the contract fraud scheme.
The indictments follow a joint investigation by the OLMS Chicago District Office,
the FBI, the IRS, and the Department of Labor's Office of the Inspector General.
On September 24, 2003, in the United States District Court for the Northern
District of California, Brian Brabazon, former President of United Food and
Commercial Workers Local 294-C, was indicted on one count of embezzlement. The
indictment stated that in May 2001, Brabazon wrote an unauthorized check to
himself in the amount of $3672.84 for expenses at a union conference he never
attended. The indictment followed an investigation by the OLMS San Francisco
District Office. [Related documents: HTML
| PDF]
On September 23, 2003, in the United States District Court for the Southern
District of Ohio, C. Michael Vencill, former secretary-treasurer of Musicians
Local 101-473, was indicted on 59 counts of embezzling $13,034 in union funds,
two counts of filing false reports, and one count of making false entries in
union records. The charges were brought following an investigation by the OLMS
Cincinnati District Office. [Related documents: HTML
| PDF]
On September 22, 2003, in the United States District Court for the District
of Nevada, Tim Egan, former business manager, secretary and treasurer of Bricklayers
Local 3, was charged with and pleaded guilty to failure to maintain union records,
and making false statements and omissions of material facts in union reports.
From January 1988 through March 2000, Egan failed to maintain financial records
which reported, among other things, his personal use of cash from union dues
and personal use of union credit cards. Egan also failed to disclose these matters
on annual reports submitted to the Department of Labor. These charges and guilty
pleas resulted from an investigation by the OLMS San Francisco District Office.
On September 18, 2003, Clyde L. Spearman, former president of American Federation
of Government Employees (AFGE) Local 1206, was indicted by a federal grand jury
in Oakland, California, on two counts of bank fraud. The indictment stated that
between September 1998 and May 2001, Spearman embezzled approximately $15,000
in union funds by writing unauthorized checks against the union's bank account.
Spearman served as president of the Martinez, California Local from early 1997
until March 2001, when he was suspended for financial misconduct. In December
2001, following an internal AFGE proceeding, Spearman was removed from office
and barred from membership for 13 years. The current indictment follows a joint
investigation by the OLMS San Francisco District Office and the Veterans Affairs
Department's Inspector General's Office.
On September 18, 2003, in the United States District Court for the Eastern
District of Missouri, Nicholas J. Torpea, former president of United Food and
Commercial Workers Local 655 was sentenced to three years probation and fined
$2,000 for making a false statement to an investigator with the United States
Department of Labor. A condition of probation requires Torpea to serve three
months of home confinement under the surveillance of electronic monitoring.
Torpea had pled guilty on July 1, 2003, following an investigation by the OLMS
St. Louis District Office.
On September 17, 2003, in Marion County (Indiana) Superior Court, Jo Ellen
Tumey, former president of Security, Police and Fire Professionals of America
Local 4, was charged in an information with embezzling $2,470.88 in union funds.
The charges were brought following an investigation by the OLMS Cincinnati District
Office. [Related documents: HTML |
PDF]
On September 16, 2003, in the District Court for St. Louis County (Minnesota),
Thomas Pender, former business manager and financial secretary of Laborers Local
1097, pled guilty to one count of felony theft. On April 7, 2003, Pender had
been charged with one count of theft of $7,000 in union funds and one count
of financial transaction card fraud involving $167 in union funds. The charges
were brought following an investigation by the OLMS Minneapolis Resident Investigator
Office.
On September 15, 2003, in the United States District Court for the District
of Maryland, Efrain C. Tulier, former secretary and treasurer of the Communications
Workers of America Local 2185, pled guilty to one count of embezzlement. The
plea was based on the indictment amount of $13,467. The plea follows an investigation
by the OLMS Washington District Office. [Related documents: HTML
| PDF]
On September 12, 2003, in the United States District Court for the Eastern
District of New York, James Roemer, former treasurer of Operating Engineers
Local 14, was sentenced to 41 months imprisonment and three years probation
for conspiracy to receive, possess, and dispose of money obtained by fraud and
transported across state lines; making and receiving unlawful labor payments;
engaging in unlawful monetary transactions; obstruction of justice; conspiracy
to defraud the United States; and tax evasion. He was ordered to pay a total
of $2.7 million in restitution and to forfeit $800,000 to the United States
Government within 90 days of his guilty plea. He had been indicted on April
16, 2002, along with seven other individuals, including the developer of the
2 Broadway Project and Elevator Constructor Local One representatives, for illegal
activity relating to defrauding the New York Metropolitan Transit Authority
and ZAR Realty of more than $10 million in construction money that was intended
for vertical transportation costs on the 2 Broadway project. On April 3, 2003,
Roemer pled guilty to the charges following a joint investigation by the OLMS
New York District Office and the FBI.
On September 12, 2003, in the United States District Court for the Southern
District of Texas, the following international officers and employees were indicted
on one count of RICO conspiracy and two counts of mail fraud and aiding and
abetting: Charles Little, former international president of the United Transportation
Union (UTU), Byron Boyd, current UTU international president, Ralph Dennis,
former director of insurance for the United Transportation Union Insurance Association
(UTUIA), and John Rookard, assistant to the UTU international president. The
charges were brought following a joint investigation by the OLMS New Orleans
District Office, the Department of Labor's Office of Inspector General and the
FBI.
On September 10, 2003, in the United States District Court for the Southern
District of Indiana, Evansville Division, Darvin Collins, former business manager
of IBEW Local 16 in Evansville, Indiana, filed a petition to enter a plea of
guilty and plea agreement. Under the agreement, Collins agreed to plead guilty
to two counts of embezzling $26,804 in union funds; Collins must also make full
restitution to the union. The remaining two counts of the indictment charging
Collins with falsification of union records will be dismissed. Collins was indicted
on May 22, 2002, following a joint investigation by the OLMS Cincinnati District
Office and the FBI. [Related documents: HTML
| PDF]
On September 5, 2003, in the United States District Court for the Southern
District of Texas, Neil Babineaux, former assistant to the assistant vice president
of the United Transportation Union, pled guilty to a charge of criminal contempt.
He had been indicted on April 3, 2003, on charges of obstruction of justice
and making false declarations to a federal grand jury. Following the guilty
plea, Babineaux was sentenced to six months home confinement, two years probation
and a $3,000 fine. These charges follow a joint investigation by the OLMS New
Orleans District Office, the Department of Labor's Office of Inspector General
and the FBI.
On September 4, 2003, in the United States District Court for the District
of Hawaii, Anthony Rutledge, former financial secretary and treasurer of Hotel
Employees and Restaurant Employees Local 5, pled not guilty to one count of
conspiracy to defraud the government and one count of aiding and assisting in
filing a false income tax return. He had been indicted on August 20, 2003, following
a multiple agency investigation by the OLMS Honolulu Resident Office, Internal
Revenue Service, the Department of Labor's Office of the Inspector General and
Employment Benefits Security Administration, and several other federal agencies.
[Related documents: HTML |
PDF]
On September 4, 2003, in the United States District Court for the Eastern District
of Pennsylvania, Percella Roper, former bookkeeper of Transport Workers Local
234 pled guilty to an information charging her with one count of embezzlement
and aiding and abetting in the embezzlement of $98,132.00 in union funds. The
information stated that Roper (1) deposited $50,058 in union funds into a savings
account that she kept at the TWU Credit Union, (2) converted $2,458 in union
funds to pay union dues for herself and other union clerical employees, (3)
assisted a TWU Local 234 officer in the embezzlement of $26,935 from Local 234
picnics, and (4) assisted the same officer in the embezzlement of $18,681 in
cash receipts for sales of union clothing. Charges were filed on June 10, 2003,
in the United States District Court for the Eastern District of Pennsylvania
following a joint investigation by the FBI and the OLMS Philadelphia District
Office.
On August 28, 2003, in the Eastern District of New York, William Barthold,
former Representative of Elevator Constructors Local One, was sentenced for
federal racketeering. Barthold was sentenced to 21 months imprisonment and three
years supervised release. In addition, he was ordered to pay restitution in
the amount of $227,985, a $5,000 fine, and a special assessment to the court.
Following his release from prison, Barthold will be barred from holding positions
for period of up to 13 years. On February 5, 2002, Barthold was indicted for
unlawful activity relating to an investigation of corruption involving Elevator
Constructors Local One. The charges were filed following a joint investigation
by the OLMS New York District Office, the Department of Labor's Employee Benefits
Security Administration, the FBI, and the IRS. Barthold pled guilty to the charges
on January 22, 2003.
On August 25, 2003, in United States District Court for the District of Wyoming,
Douglas W. Rodda, former secretary and treasurer of the Locomotive Engineers,
Division 245, pled guilty to a three-count information charging him with embezzling
$26,150 in union funds, willfully making false entries in union records, and
making false statements in a report required to be filed with the Secretary
of Labor. Rodda wrote checks payable to himself and his wife for fraudulent
expenses and concealed the checks from other union officials. The charges were
brought following an investigation by the OLMS Denver District Office. [Related
documents: HTML |
PDF]
On August 25, 2003, in the United States District Court for the District of
Columbia, Darrel E. Shelton, former general organizer for the Iron Workers International
Union, was sentenced to four months in prison, followed by four months home
detention and two years supervised probation. Shelton was ordered to pay restitution
in the amount of $80,000 and a special assessment in the amount of $965. He
was also ordered to perform 200 hours of community service. The sentence was
reduced due to his assistance in the larger federal investigation of the Iron
Workers Union. On September 15, 2000, Shelton pled guilty to nine counts of
embezzlement of union funds; one count of false entries in union records; and
one count of conspiracy to embezzle union funds. The guilty plea and sentence
followed an investigation by the OLMS Washington District Office, the FBI, and
the United States Attorney's Office for the District of Columbia.
On August 23, 2003, in the United States District Court for the District of
New Mexico, Elizabeth Martin, former bookkeeper and office secretary for both
the New Mexico Building and Construction Trades Council and Iron Workers Local
495, pled guilty to a one-count information charging her with embezzling $68,743
in union funds. She embezzled $57,143 from the New Mexico Building and Construction
Trades Council by taking cash advances, charging personal expenses to the union
credit card, and writing and tendering unauthorized checks to herself and third
parties. Also, Martin embezzled $11,600 from Iron Workers Local 495 by taking
cash receipts and writing and tendering unauthorized checks to the Trades Council.
The charges were brought following an investigation by the OLMS Denver District
Office. [Related documents: HTML |
PDF]
On August 21, 2003, in the United States District Court for the District of
Columbia, Fred G. Summers, former Director of Organizing for the Iron Workers
International Union, was sentenced to six months home detention and five years
supervised probation. He was ordered to pay restitution in the amount of $50,000,
a $5,000 fine, and a special assessment of $1,675. Summers was also ordered
to perform 100 hours of community service. The sentence was reduced due to his
assistance in the larger federal investigation of the Iron Workers Union. On
March 15, 2000, Summers pled guilty to 16 counts of embezzling union funds and
three counts of false entries in union records. The guilty plea and sentence
followed an investigation by the OLMS Washington District Office, the FBI, and
the United States Attorney's Office for the District of Columbia.
On August 20, 2003, in the United States District Court for the Northern District
of Ohio, Maria Eaton, former secretary-treasurer of Machinists Lodge 2714, was
charged with embezzling $10,000 in union funds. The charge follows an investigation
by the OLMS Cleveland District Office. [Related documents: HTML
| PDF]
On August 19, 2003, in Imperial County (California) Jail Court, Edward B. Adams,
former president of American Federation of Government Employees Local 2554 (which
represents U. S. Border Patrol employees), pled guilty to misdemeanor grand
theft for embezzling $4,100 in union funds. On the same day, Adams was sentenced
to three years probation, a $100 fine, 120 hours of community service, and restitution
in the amount of $4,100. He had previously made partial restitution of $2,600,
and submitted the remaining $1,500 at sentencing. The guilty plea and sentence
follow an investigation by the OLMS Los Angeles District Office. [Related documents:
HTML | PDF]
On August 18, 2003, in the Kern County (California) Superior Court, Mark Marquez,
former president of American Federation of Government Employees Local 2730 (which
represents U.S. Border Patrol agents) pled guilty to one count of misdemeanor
petty theft. Pursuant to the plea agreement, Marquez was sentenced to pay $1,500
in restitution, to serve one year probation and one day incarceration (time
served). Marquez pled guilty following a joint investigation by the OLMS Los
Angeles District Office and the Department of Labor's Office of the Inspector
General.
On August 18, 2003, in the United States District Court for the District of
Montana, Michael La Forge, former president of National Federation of Federal
Employees Local 224, pled not guilty to one count of embezzlement/theft of government
property totaling $14,622, and one count of fraud and false statements. He had
been indicted on July 17, 2003 following an investigation by the OLMS Denver
District Office. [Related documents: HTML
| PDF]
On August 13, 2003, in the Marion County (Indiana) Superior Court Criminal
Division, Casey Stewart, the son of an officer of the Employees Protection Association,
received a suspended sentence of 547 days for theft. He was placed on probation
for one year. On April 10, 2003, Stewart was charged in a three-count indictment
with two counts of forgery and one count of theft when he negotiated two union
checks totaling $2,576; the forgery counts were dismissed following a plea agreement.
The sentencing and charges follow an investigation by the OLMS Cincinnati District
Office. [Related documents: HTML |
PDF]
On August 12, 2003, in the United States District Court for the Eastern District
of Michigan, Robert Lee Nick, former President of Paper, Allied-Industrial,
Chemical & Energy Workers (PACE) Local 6-921 pled guilty to a charge of failure
to maintain union records. On May 22, 2003, Nick was indicted on charges of
embezzling $3,525.00 in union funds and failing to maintain required records.
These charges result from an investigation by the OLMS Detroit District Office.
On August 8, 2003, in the United States District Court for the Middle District
of Florida, Tampa Division, Anibal Roldan, former President, Bakery, Tobacco
and Grain Workers Local 361, was sentenced to three years probation, restitution
of $14,684.00 at the rate of $100.00 per month, ordered to pay a special court
assessment of $100.00 and barred from union office for a period of 13 years.
On April 9, 2003, Roldan pled guilty to one count of embezzlement in the amount
of $14,684.28. The guilty plea and sentence follow an investigation by the OLMS
Atlanta District Office. [Related documents: HTML
| PDF]
On August 6, 2003, in the United States District Court for the Northern District
of Ohio, Murdytha Stubbs, former Vice President of Steelworkers Local 1-3586-S,
pled guilty to an information charging him with embezzling $4,309.40 in union
funds. Stubbs had been charged on June 18, 2003, following an investigation
by the OLMS Cleveland District Office.
On August 5, 2003, in the United States District Court for the District of
Massachusetts, David Westgate, former President of United Auto Workers Local
168, was indicted on 68 counts of embezzling $31,867 in union funds. The charges
were brought following an investigation by the OLMS Boston District Office.
On July 31, 2003, in the United States District Court for the Eastern District
of Michigan, Dana Moore, former office manager of the Carpenters Great Lakes
Regional Industrial Council, was sentenced to three years probation and ordered
to make restitution of $22,590.41 and perform 75 hours of community service.
He had pled guilty on March 11, 2003 to a one-count information following an
investigation by the OLMS Detroit District Office.
On July 31, 2003, in the United States District Court for the Northern District
of Illinois, Judy Nowak, former treasurer of Letter Carriers Branch 1107, was
indicted on one count of embezzling "in excess of $10,000" in union funds. The
charges were brought following an investigation by the OLMS Chicago District
Office. [Related documents: HTML |
PDF]
On July 30, 2003, in the United States District Court for the Eastern District
of New York, David Coakley of Elevator Constructors Local One, was sentenced
to 21 months imprisonment and three years probation and was ordered to pay $284,196.54
in restitution. He had been indicted on February 5, 2002 for unlawful activity
related to a no-show scheme involving 19 construction sites in New York City.
On April 16, 2002 he was indicted for a second time along with seven others
for illegal activity related to defrauding the New York Metropolitan Transit
Authority and ZAR Realty of more than $10 million in construction money that
was intended for vertical transportation costs on the 2 Broadway project. He
had pled guilty to various charges in both indictments on March 20, 2003. The
charges had been brought following joint investigations by the OLMS New York
District Office and the FBI and, in the Elevator Constructors Local One case,
also with the Department of Labor's Employee Benefits Security Administration
and the IRS.
On July 30, 2003, in the United States District Court for the Eastern District
of Missouri, Nick A. Torpea, former business agent for Food and Commercial Workers
Local 655, pled guilty to a one-count information charging him with making a
false entry in union records. The charges were brought following an investigation
by the OLMS St. Louis District Office. [Related documents: HTML
| PDF]
On July 28, 2003, in the United States District Court for the Eastern District
of Wisconsin, Leland Haskins, Jr., former secretary-treasurer of the Brotherhood
of Locomotive Engineers Division 173, pled guilty to two counts of embezzlement
and two counts of falsifying union records, and agreed to pay restitution of
$41,900. Haskins had been indicted on April 8, 2003, following an investigation
by the OLMS Milwaukee District Office.
On July 25, 2003, in the United States District Court for the Eastern District
of Missouri, Steve Floyd, former secretary-treasurer of Paper, Allied-Industrial,
Chemical and Energy Workers International Union (PACE) Local 05-152, was sentenced
to three years probation. Conditions of probation included serving the first
six months in home confinement and paying restitution in the amount of $27,882.00.
On March 13, 2003, Floyd pled guilty to three counts of embezzling union funds
following an investigation by the OLMS St. Louis District Office. [Related documents:
HTML | PDF]
On July 24, 2003, in the United States District Court for the Southern District
of Ohio, Bridgette Robinson, former financial secretary of Glass, Molders and
Plastics Local 170, pled guilty to an information charging her with one count
of making a false entry in a union record. She was ordered to make full restitution.
Robinson has already made a payment to the union in the amount of $4,300. The
charge was brought following an investigation by the OLMS Cincinnati District
Office. [Related documents: HTML |
PDF]
On July 24, 2003, in the United States District Court for the Eastern District
of New York, John Vitiello was sentenced to 33 months imprisonment and three
years probation and was ordered to pay $623,000 in restitution. He was also
required to forfeit $100,000 to the Government by the time of his sentence.
He had been indicted on April 16, 2002 along with seven others for illegal activity
related to defrauding the New York Metropolitan Transit Authority and ZAR Realty
of more than $10 million in constructions money that was intended for vertical
transportation costs on the 2 Broadway project. He had pled guilty to various
counts in the superceding indictment on March 28, 2003 and pled guilty to a
one-count information charging him with engaging in an unlawful monetary transaction.
The charges were brought following a joint investigation by the OLMS New York
District Office and the FBI.
On July 24, 2003, in the United States District Court for the Eastern District
of Pennsylvania, Kendall Williams, former President of the PNI Security Union
(Ind), pled guilty to nine counts of theft from an employee benefit fund totaling
$29,683.84. Additionally, Williams pled guilty to the charges of failure to
maintain records in 1997 and failure to file the union's 1996 LM-3 report. Williams
was indicted on February 12, 2002, following a joint investigation by the OLMS
Philadelphia District Office and the Department of Labor's Office of the Inspector
General.
On July 23, 2003, in the United States District Court for the Middle District
of Florida, an information was filed charging Howard Roundtree, former Recording
Secretary of Longshoremen's Association AFL-CIO (ILA) Local 1759, with one count
of knowingly causing false statements and representations of fact in a document
required by the Employee Retirement Income Security Act of 1974 (ERISA). Roundtree
waived indictment and pled guilty to the charge following an investigation by
the OLMS Atlanta District Office. [Related documents: HTML
| PDF]
On July 22, 2003, in the United States District Court for the Eastern District
of New York, John J. Quinn, a member of Elevator Constructors Local One, pled
guilty to witness tampering charges. During an investigation of Local One involving
labor racketeering, unlawful labor payments, and mail fraud, Quinn attempted
to tamper with testimony and information that Quinn expected investigators to
ask a witness to provide. The charges were brought following a joint investigation
by the OLMS New York District Office, the Department of Labor's Employee Benefits
Security Administration, the FBI, and the IRS.
On July 21, 2003, in the Ventura County Superior Court, James D. Torrez, former
President of Civilian Technicians Chapter 105, was charged with two counts of
embezzling union funds totaling $9,801. The charges were brought following an
investigation by the OLMS Los Angeles District Office.
On July 21, 2003, in the United States District Court for the District of Columbia,
Vashone Wimbush, former Treasurer of Communications Workers of America Local
2381, pled guilty to Second Degree Theft for her embezzlement of $5,070 in union
funds. This guilty plea followed an investigation by the OLMS Washington District
Office.
On July 17, 2003, Michael Knisley, former Secretary-Treasurer of Communications
Workers of America Local 14766, entered into a settlement agreement with the
United States Attorney for the Eastern District of Washington. Under the terms
of the settlement agreement, prosecution was deferred for 18 months from the
date the settlement agreement was signed. Knisley was indicted for embezzling
$4,490 in union funds, and causing false statements and reports. Knisley previously
made restitution in the amount of $214.80. Under the terms of the settlement
agreement, Knisley agreed to pay $237.51 for 18 months totaling $4,275.20. The
charges were brought following an investigation by the OLMS Seattle District
Office.[Related documents: HTML |
PDF]
On July 15, 2003, in the United States District Court for the Northern District
of West Virginia, Steven Namack, former business agent/financial secretary and
apprenticeship coordinator of Roofers Local 188, was sentenced to eight months
imprisonment for embezzling funds from an employee benefit plan and eighteen
months imprisonment for embezzling union assets with the sentences to be served
concurrently. He was ordered to make restitution in the amount of $132,255.24
and to pay a $200.00 special assessment. Namack pled guilty to one count of
embezzling employee benefit plan funds and one count of embezzling union funds
on May 7, 2003, following an investigation by the OLMS Pittsburgh District Office.
[Related documents: HTML |
PDF]
On July 15, 2003, in the United States District Court for the Middle District
of Pennsylvania, the Government filed a motion to dismiss an information filed
on June 10, 2003, against Amy Pulaski, former bookkeeper for the Laborers District
Council for Eastern Pennsylvania. The Government stated in its motion that further
proceedings regarding this charge against Pulaski were inappropriate due to
the disposition of a related pre-trial diversion matter. The charges had been
brought following an investigation by the OLMS Philadelphia District Office.
[Related documents: HTML |
PDF]
On July 14, 2003, in the United States District Court for the Southern District
of Mississippi, Willie Corbett, former Local Lodge Delegate of Maintenance of
Way Employees Lodge 616, was sentenced to three years probation and fined $500.
He was previously charged with falsifying union records on September 25, 2002,
following an investigation by the OLMS New Orleans District Office. Corbett
pled guilty to the charge on May 6, 2003.
On July 11, 2003, in the United States District Court for the Central District
of Illinois, Steve Morris, former Treasurer of IBEW Local 109, was sentenced
to 6 months of home detention and 4 years probation. He previously made restitution
of $84,485. In addition, Morris was ordered to undergo rehabilitation and to
pay a $3,000 fine. He was previously charged with embezzling $68,017.35 in union
funds on January 29, 2003, following an investigation by the OLMS Chicago District
Office. Morris pled guilty to the charge on February 10, 2003.
On July 10, 2003, in the United States District Court for the Eastern District
of Virginia, Barbara Ann Fields, former financial secretary of Bakery, Confectionery,
Tobacco Workers and Grain Millers International Union (BCTGM) Local 255-T, was
sentenced to six months home confinement and three years probation. She was
ordered to make restitution in the amount of $10,557.79. On March 21, 2003,
Fields pled guilty to one count of embezzling $10,557.79 in union funds following
an investigation by the OLMS Washington District Office.
On July 10, 2003, in the United States District Court for the District of Montana,
Frank Darvis, former treasurer of the United Transportation Union, Local 891,
was sentenced to 18-months probation and ordered to pay a $100 fine. Darvis
was indicted for embezzling $29,865 in union funds on January 8, 2003, and pled
guilty to the charges on April 9, 2003. Darvis previously made full restitution.
The charges were brought following an investigation by the OLMS Denver District
Office.[Related documents: HTML |
PDF]
On July 2, 2003, in the United States District Court for the Southern District
of Mississippi, Randy Carr, former president of Paper, Allied-Industrial, Chemical
and Energy Workers Local 04-575, pled guilty to embezzling $30,632 in union
funds. Carr was charged on April 23, 2003, following an investigation by the
OLMS New Orleans District Office.
On July 2, 2003, in the United States District Court for the Southern District
of Iowa, Joleen Coughlon, former office secretary of Laborers Local 177, was
sentenced to four years probation and ordered to pay $6,445 in restitution.
Coughlon had previously pled guilty on March 27, 2003, to embezzling union funds
and making a false entry in union records. Coughlon was charged following an
investigation by the OLMS St. Louis District Office. [Related documents: HTML
| PDF]
On July 1, 2003, in the United States District Court for the Eastern District
of Missouri, Nicholas J. Torpea, former president of United Food and Commercial
Workers Local 655, pled guilty to making a false statement to a Department of
Labor investigator. Torpea lied to the investigator regarding his use of union
staff for personal business. The charge was brought following an investigation
by the OLMS St. Louis District Office. [Related documents: HTML
| PDF]
On June 27, 2003, in the United States District Court for the Northern District
of Ohio, Enner Rae Edwards, former treasurer of Steelworkers Local 1-3586-S,
was sentenced to two years probation and fined $500 after pleading guilty on
April 3, 2003, to embezzling $1,741.53 in union funds following an investigation
by the OLMS Cleveland District Office. [Related documents: HTML
| PDF]
On June 27, 2003, in the United States District Court for the Northern District
of Ohio, Cynthia Barner, former financial secretary of Steelworkers Local 1-3586-S,
was sentenced to two years probation and fined $500 after pleading guilty on
April 3, 2003, to embezzling $1,751.53 in union funds following an investigation
by the OLMS Cleveland District Office. [Related documents: HTML
| PDF]
On June 26, 2003, in the United States District Court for the Western District
of Tennessee, Don Hild, a member of the Stage and Picture Operators, Local 69,
pled guilty to falsifying union records. He had been charged in an information
on June 23, 2003, following an investigation by the OLMS Nashville District
Office. [Related documents: HTML |
PDF]
On June 26, 2003, in the United States District Court for the Southern District
of Ohio, Debra Dougherty, former office secretary for International Brotherhood
of Electrical Workers LU 648, pled guilty to bank fraud after being indicted
on February 5, 2003, for embezzling $41,829.95 in union funds and bank fraud
in the amount of $7,030.40 following an investigation by the OLMS Cincinnati
District Office. [Related documents: HTML
| PDF]
On June 25, 2003, in the United States District Court for the Eastern District
of New York, a complaint was filed against Robert C. Dunbar, Sr., a member of
Elevator Constructors - Local One. The complaint claimed that defendant made
a materially false and fraudulent statement to investigators when he stated
that he and others agreed to offer cash to a high-ranking official of a local
union for the purpose of making a donation to a scholarship fund. In fact, he
and others agreed to offer the cash for the purpose of making an unlawful payment
to the union official in connection with obtaining preferential treatment in
job assignments. The complaint was filed as a result of an ongoing joint investigation
by the OLMS New York District Office, the Department of Labor's Employee Benefits
Security Administration, the FBI, and the IRS.
On June 25, 2003, in the United States District Court for the District of Columbia,
Raymond J. Robertson, former general vice president of the Iron Workers International
Union and Director of the National Ironworkers and Employers Apprenticeship
Training and Journeyman Upgrading Fund ("National Training Fund"), was sentenced
to six months home detention and three years supervised probation. Robertson
was also ordered to pay restitution in the amount of $101,689 and a fine of
$30,000. Robertson's sentencing range was reduced due to the substantial assistance
he provided the federal government in its larger probe of corruption within
the Iron Workers Union. Robertson pled guilty to Conspiracy to Defraud the National
Training Fund, Aiding and Abetting Embezzlement of Federal Grant Funds received
by the National Training Fund, and six counts of Embezzlement from the National
Training Fund. Robertson was charged following a joint investigation by the
OLMS Washington District Office, the FBI, DOL-EBSA, and the U.S. Attorney's
Office for the District of Columbia.
On June 25, 2003, in the United States District Court for the District of Columbia,
Kerry J. Tresselt, former bookkeeper for the National Ironworkers and Employers
Apprenticeship Training and Journeyman Upgrading Fund ("National Training Fund"),
was sentenced to six months home detention and five years supervised probation.
Ms. Tresselt was also ordered to pay restitution in the amount of $234,505 (the
amount remaining to be repaid from the $354,183 she embezzled). Tresselt was
also ordered to submit to regular and random drug testing and undergo drug rehabilitation
treatment. Tresselt's sentencing range was reduced due to the substantial assistance
that she provided the federal government in its larger probe of corruption within
the Iron Workers Union. Tresselt pled guilty to three counts of Embezzlement
from the National Training Fund and Conspiracy to Make False Statements in the
Records of the National Training Fund. Tresselt was charged following a joint
investigation by the OLMS Washington District Office, the FBI, DOL-EBSA, and
the U.S. Attorney's Office for the District of Columbia.
On June 20, 2003, in the United States District Court for the Northern District
of New York, a jury found Patricia Ford, former secretary-treasurer of the Public
Employees Federation, guilty of bribery. Ford was found guilty of agreeing to
receive free campaign literature from a public relations consultant in exchange
for an agreement to place that consultant on retainer from the union if she
won re-election. Ford was found not guilty of embezzlement by the jury. It was
alleged that the consultant over billed the union for the cost of the personal
campaign literature and that the union paid those charges. The three other counts
in the original indictment were dismissed prior to the trial. The charges had
been brought following an investigation by the OLMS Buffalo District Office.
On June 19, 2003, in the United States District Court for the Northern District
of Georgia, Trina Tarantine, former financial secretary of Steelworkers Local
3944, was sentenced to one year supervised probation, ordered to make complete
restitution of $9,239.05, and ordered to pay a $1,000 fine and a special court
assessment of $25. Tarantine pled guilty to making false entries in required
union records following an investigation by the OLMS Atlanta District Office.
[Related documents: HTML |
PDF]
On June 18, 2003, in the Tenth District Circuit Court of Bradley County (Arkansas),
Tasha Renea Word, former office secretary for the Machinist Woodworkers Local
W-484, was sentenced to 36 months supervised probation, ordered to make restitution
of $2,772.15, and assessed $450.00 in court costs. Word pled guilty to five
counts of second degree forgery, one count of credit card fraud and one count
of theft of property following an investigation by the OLMS Dallas District
Office.
On June 18, 2003, in the United States District Court for the Northern District
of Ohio, Darryl C. Maynard, former secretary-treasurer of PACE Local 7-816,
was indicted for embezzling $7,509 and falsifying union records. The charges
were brought following an investigation by the OLMS Cleveland District Office.
[Related documents: HTML |
PDF]
On June 18, 2003, in the United States District Court for the Northern District
of Ohio, Murdytha Stubbs, former Vice President of Steelworkers Local 1-3586-S,
was indicted on charges of embezzling over $4,309, falsifying and causing others
to falsify union records, and conspiracy to embezzle and falsify union records.
The charges were brought following an investigation by the OLMS Cleveland District
Office. [Related documents: HTML |
PDF]
On June 17, 2003, in the United States District Court for the Eastern District
of New York, Steven Seidl, Jr., a member of Elevator Constructors Local One,
was sentenced to spend three years on probation, perform 400 hours of community
service, pay $39,992.04 in restitution, pay a fine of $1,000, and pay a $200
special assessment. In addition, Seidl forfeited $13,022 to the United States
government (representing the total sum of unlawful contributions made on behalf
of the defendant to all benefit plans affiliated with Local One of the International
Union of Elevator Constructors). On December 13, 2002, Seidl pled guilty to
conspiracy to demand and receive unlawful labor payments. On February 5, 2002,
Donohue was charged with conspiracy, false ERISA statements, money laundering
conspiracy, money laundering, and unlawful labor payments following a joint
investigation by the OLMS New York District Office, the Department of Labor's
Employee Benefits Security Administration, the FBI, and the IRS.
On June 16, 2003, in the United States District Court for the Eastern District
of Tennessee, Christopher Keith, former office manager for the Chattanooga Building
and Construction Trades Council and the Chattanooga Labor Council, was sentenced
to 12 months imprisonment followed by three years supervised probation and ordered
to pay $57,406.20 in restitution. Keith had previously pled guilty on November
22, 2002, to embezzling union funds following an investigation by the OLMS Nashville
District Office. [Related documents: HTML |
PDF]
On June 10, 2003, in the United States District Court for the Middle District
of Pennsylvania, an information was filed charging Amy Pulaski, former bookkeeper
for the Laborers District Council for Eastern Pennsylvania, with one count of
making materially false entries in records required to be maintained by the
District Council in order to conceal her theft of $3,602. The charges were brought
following an investigation by the OLMS Philadelphia District Office. [Related
documents: HTML | PDF]
On June 10, 2003, in the United States District Court for the Eastern District
of Pennsylvania, Percella Roper, former bookkeeper for Transport Workers Union
(TWU) Local 234, was charged with embezzling $98,132 in union funds. The information
alleges that Roper (1) deposited $50,058 of union funds into a savings account
that she kept at the TWU Credit Union, (2) converted $2,458 of union funds to
pay union dues for herself and other union clerical employees, (3) assisted
a TWU Local 234 officer in the embezzlement of $26,935 from Local 234 picnics,
and (4) assisted the same officer in the embezzlement of $18,681 in cash receipts
for sales of union clothing. The charges were brought following a joint investigation
by the FBI and the OLMS Philadelphia District Office.
On June 10, 2003, in the United States District Court for the Northern District
of Illinois, Anthony King, former secretary-treasurer of International Brotherhood
of Electrical Workers Local 533, was sentenced to six months home confinement
on electronic monitoring and five years supervised release. He was also fined
$100 and ordered to pay restitution in the amount of $14,450. He pled guilty
to embezzling $14,450 in union funds on February 20, 2003 following an investigation
by the OLMS Chicago District Office and the U.S. Postal Inspection Service.
On June 2, 2003, in the United States District Court for the Southern District
of West Virginia, Julia D. Mynes, former employee of United Steelworkers Local
14614, was convicted of embezzling union funds after entering a guilty plea
on March 10, 2003. Because of her previous criminal record, Mynes received the
maximum sentence and must serve six months in prison beginning immediately.
Mynes was also ordered to make restitution totaling $4,000 and to pay a special
assessment totaling $100. The charges were brought following an investigation
by the OLMS Pittsburgh District Office. [Related documents: HTML
| PDF]
On June 1, 2003, in Ogdensburg (NY) City Court, John Miller, former secretary-treasurer
of AFSCME, Civil Service Employees Association, Local 727, was sentenced to
one year of conditional discharge and 100 hours of community service for committing
grand larceny in the third degree. Miller pled guilty to stealing $4,743 from
his union and made full restitution following an investigation by the OLMS Buffalo
District Office.
On May 29, 2003, in the United States District Court for the District of Massachusetts,
Gene Malinowski, former business manager and secretary-treasurer of Boilermakers
Local Lodge 1851, was indicted on one count of embezzlement and one count of
aiding and abetting. The indictment was sealed until June 10, 2003 when Malinowski
was arrested. The charges were brought following an investigation by the OLMS
New Haven Resident Office. [Related documents: HTML
| PDF]
On May 29, 2003, in the Pennsylvania District Court in Cambia County, Randall
Bills, former financial secretary of United Mine Workers Local 1269, pled guilty
to three counts of theft and agreed to pay full restitution of $1,886.78 and
enter into the Accelerated Rehabilitative Disposition Program, following an
investigation by the OLMS Pittsburgh District Office.
On May 29, 2003, in the United State District Court for the Eastern District
of Michigan, Delbert Steward, former president of Steelworkers Local 02-1279,
was sentenced to three years probation and ordered to pay $9,578 in restitution.
Steward was also ordered to draft and post a letter of apology to the union
and pay a $100 special assessment. Steward pled guilty to embezzling $9,578
in union funds on August 22, 2002 following an investigation by the OLMS Detroit
District Office.
On May 27, 2003, in the United States District Court for the Eastern District
of New York, Terrance Carr, former warden of Elevator Constructors Local One,
was sentenced to two years probation and 100 hours of community service. He
was ordered to pay a total of $6,225.34 in restitution and $2,100 in assessments.
He had pled guilty on March 10, 2003 to a superceding information charging him
with making false statements in violation of 18 USC 1001. The charges had been
brought following a joint investigation by the OLMS New York District Office,
the Department of Labor's Employee Benefits Security Administration, the FBI,
and the IRS.
On May 21, 2003 in the United States District Court for the Western District
of Tennessee, William Klyce, former business agent for the Stage and Picture
Operators, Local 69, pled guilty to falsifying union records. He had been charged
in an information on March 26, 2003, following an investigation by the OLMS
Nashville District Office. [Related documents: HTML
| PDF]
On May 21, 2003, in the United States District Court for the Eastern District
of North Carolina, Ronald B. Alston, former secretary-treasurer of Maintenance
of Way Employees Lodge 563, was indicted for embezzling $9,846 in union funds
and making false entries in required union records. These charges were brought
following an investigation by the OLMS Nashville District Office. [Related documents:
HTML | PDF]
On May 21, 2003, in the United States District Court for the Northern District
of Illinois, John O'Connell, former Secretary-Treasurer of Machinists Local
Lodge 524, was sentenced to five months incarceration, five months home confinement
with electronic monitoring, 24 months of supervised release, and ordered to
pay $36,702 in restitution, plus a $100 special assessment. O'Connell pled guilty
to embezzling $36,702 in union funds on February 13, 2003, following an investigation
by the OLMS Chicago District Office.
On May 21, 2003, in the United States District Court for the Western District
of Michigan, Robert E. Nick, former president of Paper, Allied Industrial, Chemical
and Atomic Workers Local 6-921 in Lansing, Michigan, was indicted for both embezzling
$3,525 in union funds and failing to maintain required records. The charges
were brought following an investigation by the OLMS Detroit District Office.
On May 15, 2003, in the San Bernardino (California) Superior Court, a Felony
Criminal Complaint was filed charging Gerard Davis, former president of AFGE
Local 1227, with one count of Grand Theft by Embezzlement following an investigation
by the OLMS Los Angeles District Office. [Related documents: HTML
| PDF]
On May 15, 2003, in the United States District Court for the Western District
of Louisiana, Norma J. Reedy, former treasurer of the Louisiana American Postal
Workers Union, was sentenced to 60 months of supervised release and ordered
to pay $30,000 in restitution plus a $100 special assessment. Reedy pled guilty
to embezzling $34,800 in union funds on January 23, 2003, following an investigation
by the OLMS New Orleans District Office.
On May 13, 2003, in the United States District Court for the Southern District
of Ohio, James E. Miller, treasurer of Flint Glass Workers Local 144, in Lancaster,
Ohio, appeared following his arrest by the U.S. Marshals Service. Miller was
arrested pursuant to an April 23, 2003 Order finding him to be in contempt of
court for failure to comply with a subpoena. Though an OLMS representative found
the documents produced by Miller to be generally responsive to the subpoena,
it was determined that deposit slips, cancelled checks, and bank statements
for the year 2002 were missing. Miller has been ordered to appear before the
U.S. Attorney in Columbus, Ohio, on or before May 30, 2003, to deliver the aforementioned
records. The subpoena was issued as part of an ongoing investigation by the
OLMS Cleveland District Office. [Related documents: HTML
| PDF]
On May 13, 2003, in the United States District Court for the Northern District
of California, Adela Tongson, former employee of Service Employees Local 250,
was indicted on two counts of embezzling a total of $100,000 in union funds.
The charges were brought following a joint investigation by the OLMS San Francisco
District Office and the FBI. [Related documents: HTML
| PDF]
On May 9, 2003, in the United States District Court for the Southern District
of Iowa, Clyde Howard Starkey, former member of Laborers Local 177, was sentenced
to six months imprisonment, three years probation, and ordered to make restitution
of $28,905. Starkey was indicted on November 20, 2002 and on January 16, 2003,
he pled guilty to conspiring to embezzle union funds. Specifically, Starkey
received and cashed $28,905 in union checks (to which he had no legitimate claim)
and returned a portion of the proceeds to former Local 177 Business Manager
Fred Risius. Risius is currently serving fifteen months in the penitentiary
for embezzling in excess of $100,000 from the local. The charges were brought
following an investigation by the OLMS St. Louis District Office. [Related documents:
HTML | PDF]
On May 8, 2003, in the United States District Court for the Northern District
of Alabama, Jerry Lynn Seay, former president of PACE Local Union 3-501, and
his wife Peggy Seay were sentenced to three years supervised probation and ordered
to make restitution in the amounts of $6,940 and $1,248.30, respectively. They
had previously plead guilty to embezzlement, forgery, and making false entries
in required union records on May 8, 2003 following an investigation by the OLMS
Nashville District Office. [Related documents: HTML
| PDF]
On May 7, 2003, in the United States District Court for the Eastern District
of Missouri, Steve Floyd, former secretary-treasurer of Paper, Allied-Industrial,
Chemical and Energy Workers International Union (PACE) Local 05-152, pled guilty
to one count of embezzling union funds. Floyd, who was indicted on March 13,
2003, admitted to embezzling approximately $27,000 in union funds by writing
checks to both himself and others that were not authorized and were for his
personal benefit. The charges were brought following an investigation by the
OLMS St. Louis District Office. [Related documents: HTML
| PDF]
On May 7, 2003, in the United States District Court for the Northern District
of West Virginia, Steven Namack, former financial secretary, treasurer/business
agent, and Joint Apprenticeship and Training Committee Coordinator/Instructor
for Roofers Local Union 188, pled guilty to a two-count information charging
him with the embezzlement of $108,036.16 from employee benefit plans and the
embezzlement of $24,219.06 in union funds. The charges were brought following
an investigation conducted by the Pittsburgh District Office. [Related documents:
HTML | PDF]
On May 5, 2003, in the United States District Court for the Northern District
of Indiana, David Shaffer, the former President of Steelworkers Local 8985-S,
was sentenced to spend six months in home confinement on electronic monitoring
plus 36 months of supervised release and to pay $15,000 in restitution plus
a $25 special assessment. Shaffer pled guilty to one count of falsifying union
records (in order to conceal the embezzlement of $21,958 in union funds) on
November 6, 2002. The U.S. Attorney dropped a related obstruction of justice
charge based on threats Shaffer made against his local union's officers. The
charges were brought following an investigation by the OLMS Chicago District
Office.[Related documents: HTML |
PDF]
On April 30, 2003, in the United States District Court for the District of
Minnesota, Joseph Biernat, Minneapolis City Councilman, was sentenced to 21
months imprisonment and two years probation. He was also ordered to make restitution
of $2,700 (to be paid jointly with co-defendant Thomas Martin, former business
manager of Plumbers Local 15) and pay a fine of $10,000. He was found guilty
on November 21, 2002 of one count of aiding and abetting an embezzlement of
$2,700 from Plumbers Local 15, three counts of mail fraud, and one count of
making a false statement. The charges were brought following an investigation
by the OLMS Minneapolis Resident Investigator Office and the FBI.
On April 28, 2003, in the Ogdensburg (New York) City Court, Wendy McNally,
was fined $100 and sentenced to one year conditional discharge. On March 10,
2003, in Onondaga (New York) City Court, McNally, friend of former CSEA Local
727 President John Miller, pled guilty to one count of criminal possession of
a forged instrument in the third degree. McNally had cashed a union check for
$1,000 that was improperly written and unauthorized. The charges were brought
following an investigation by the OLMS Buffalo District Office.
On April 28, 2003, the Oakland, California based law firm of Van Bourg, Weinberg,
Roger & Rosenfeld, P.C. and the United States Attorney's Office for the District
of Columbia entered into an agreement by which criminal prosecution of the law
firm for fraud, obstruction of justice, and related offenses would be deferred,
and ultimately not pursued, in exchange for the law firm undertaking actions
to remedy past misconduct by its founding partner, Victor Van Bourg, who is
now deceased.
The matter grows from the investigation of corruption within the International
Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers ("Iron
Workers Union"). The investigation was conducted by the OLMS Washington District
Office with the U.S. Attorney's Office for the District of Columbia, and the
FBI. Among the remedial actions to be taken by the law firm pursuant to the
deferral of prosecution agreement, the law firm will drop the name of Van Bourg
from its title, pay restitution to the Iron Workers Union and an affiliated
pension fund, reimburse the U.S. Attorney's Office for costs associated with
the investigation, and undertake internal reforms and training to avoid any
similar misconduct by its other lawyers. In addition, the law firm has agreed
to send a letter to all of its labor union clients advising them of the misconduct
of Van Bourg and advising them of the proper reporting requirements for Union
expenditures for top Union officers in annual financial disclosure reports to
the U.S. Department of Labor.
On April 25, 2003, in the United States District Court for the Eastern District
of New York, Marc DeGennaro, a member of Elevator Constructors Local One, was
sentenced to three years probation, ordered to perform 400 hours of community
service, and ordered to pay $77,428 in restitution. He will also forfeit to
the United States Government $14,230 representing the amount of unlawful contributions
made on his behalf to all benefit plans affiliated with Local One. He had earlier
pled guilty to conspiracy to demand and receive unlawful labor payments in violation
of the Taft-Hartley Act. He had been indicted on February 5, 2002, on charges
of conspiracy, making false statements under the Employee Retirement Income
Security Act, money laundering, and conspiracy following a joint investigation
by the OLMS New York District Office, the Department of Labor's Employee Benefits
Security Administration, the FBI, and the IRS.
On April 24, 2003, in the United States District Court for the Eastern District
of New York, Matthew Joseph Downey, a representative of Elevator Constructors
Local One, pled guilty under a superceding indictment to racketeering, unlawful
labor payments, money laundering conspiracy, witness tampering, and tax evasion.
Under a separate indictment he pled guilty to conspiracy to receive, possess
and dispose of money transported across state lines. He agreed to forfeit $800,000
to the United States Government within 120 days from various assets that represent
a portion of the proceeds from the racketeering enterprise. He had been indicted
on February 5, 2002 on charges relating to a no-show scheme at construction
sites in New York City following a joint investigation by the OLMS New York
District Office, the Department of Labor's Employee Benefits Security Administration,
the FBI, and the IRS. On April 16, 2002 he had been charged in a second indictment
relating to fraud against the Metropolitan Transportation Authority (MTA) and
ZAR Realty in connection with the renovation of MTA headquarters. These charges
had been brought following a joint investigation by the OLMS New York District
Office and the FBI.
On April 23, 2003, in the United States District Court for the Western District
of Tennessee, Thomas Brown, a member of Stage and Picture Operators Local 69,
pled guilty to falsifying union records. Brown was charged with making and causing
false entries to be made in required union records (while being aided and abetted
by others) on March 26, 2003, following an investigation by the OLMS Nashville
District Office. [Related documents: HTML |
PDF]
On April 23, 2003, in the United States District Court for the Southern District
of Mississippi, Randy Carr, former president of PACE Local 4-575, was charged
in a one-count indictment with embezzling $30,631.89 in union funds. The charges
were brought following an investigation by the OLMS New Orleans District Office.
[Related documents: HTML |
PDF]
On April 23, 2003, in the United States District Court for the Southern District
of Ohio, James E. Miller, financial secretary of Flint Glass Workers Local 144,
was ordered into custody until he purges himself of the contempt of court committed
by his failure to provide documents and testimony in response to an OLMS subpoena
and his failure to comply with the court's October 25, 2002; January 22, 2003;
and March 17, 2003 orders to comply with the subpoena. This action was brought
as a result of an ongoing audit of the local by the OLMS Cleveland District
Office.
On April 23, 2003, in the United States District Court for the Southern District
of Ohio, Jeffrey Williams, former treasurer of State, County, and Municipal
Employees Local 11, Chapter 6555, was sentenced to two months confinement followed
by three years supervised release with an intensive drug treatment program.
He was ordered to pay restitution of $2,725.66 (he had already made restitution
of $586.70). He had pled guilty on January 22, 2003 to one count of embezzlement
of $3,312.00 in union funds. The charges had been brought following an investigation
by the OLMS Cleveland District Office. [Related documents: HTML
| PDF]
On April 22, 2003, in the United States District Court for the District of
Oregon, Ty Mariner, former treasurer for Branch 3083 of the National Association
of Letter Carriers, was indicted on five counts of embezzlement totaling $953
(of the $2,346 specified elsewhere in the indictment) and one count of filing
a false Form LM-4 report. He pled not guilty on May 9 at arraignment. The charges
were brought following an investigation by the OLMS Seattle District Office.
[Related documents: HTML | PDF]
On April 21, 2003, in the United States District Court for the Northern District
of Ohio, John Mylek II, former treasurer of Plasterers and Cement Masons Local
886, was sentenced to two years probation and was prohibited from using any
credit cards unless cleared through the Probation Department. He was also fined
$500. He had pled guilty to one count of embezzling $7,551.28 in union funds
and one count of embezzling $675 in employee benefit plan funds. The charges
had been brought following a joint investigation by the OLMS Cleveland District
Office, the Department of Labor's Office of the Inspector General, and the FBI.
[Related documents: HTML |
PDF]
On April 11, 2003, in the United States District Court for the Eastern District
of New York, Morris Diminno, a former representative of Operating Engineers
Local 14, pled guilty to conspiracy to receive, possess and dispose of money
obtained by fraud and transported across state lines, unlawful labor payment,
engaging in an unlawful monetary transaction, and obstruction of justice. He
agreed to forfeit $800,000 to the United States Government within 90 days from
various assets. He had been indicted on April 16, 2002 on charges relating to
fraud against the Metropolitan Transportation Authority (MTA) and ZAR Realty
in connection with the renovation of MTA headquarters. The charges had been
brought following a joint investigation by the OLMS New York District Office
and the FBI.
On April 11, 2003, in the United States District Court for the District of
Columbia, Michael Martin pled guilty to money laundering for conspiring to launder
more than $500,000 in Washington Teachers Union (WTU) funds. Martin and a "business"
associate opened a bank account under a fictitious company called Expressions
Unlimited at the request of the WTU President and the WTU Executive Assistant.
WTU funds were paid to Expressions Unlimited and then most of those funds were
returned to the WTU President and Executive Assistant. Expressions Unlimited
never provided any services to the union. Martin used some of the WTU money
in the Expressions Unlimited bank account for personal purposes including his
mortgage payment, private school tuition for his children, credit card bills,
car payments, and vehicle repairs. Martin also received WTU funds for providing
personal services to the WTU President, including styling her hair, shopping,
and giving fashion advice. The charges were brought following an investigation
by the OLMS Washington District Office, the FBI, the IRS, and other law enforcement
agencies.
On April 9, 2003, in the United States District Court for the Eastern District
of Kentucky, Timothy Aldridge, former president of Florence Steelworkers Local
1, an independent union, was indicted on four counts. Aldridge is charged with
one count of embezzling $112,525.27 in union funds and three counts of withholding
or concealing union records. The charges were brought following an investigation
by the OLMS Cincinnati District Office.
On April 9, 2003, in the United States District Court for the Middle District
of Florida, Anibal Roldan, former president of Bakery, Tobacco and Grain Workers
Local 361 in Tampa, pled guilty to embezzling $14,684.28 in union funds. Roldan
had been charged on March 20, 2003, following an investigation by the OLMS Atlanta
District Office.
On April 9, 2003, in the United States District Court for the District of Montana,
Frank Darvis, former treasurer of United Transportation Union Local 891, pled
guilty to embezzlement and falsifying signatures on more than 60 union checks
which he made payable to himself. Darvis was indicted for embezzling $29,865
in union funds on January 8, 2003. The charges were brought following an investigation
by the OLMS Denver District Office.
On April 8, 2003, in the United States District Court for the Eastern District
of Wisconsin, Leland Haskins, Jr., former secretary-treasurer of Locomotive
Engineers Division 173, was indicted on two counts of embezzling $1,025 in union
funds and two counts of falsifying union records. The indictment also noted
that he had embezzled a total of approximately $41,600 in union funds. The charges
were brought following an investigation by the OLMS Milwaukee District Office.
On April 7, 2003, in the District Court for St. Louis County (Minnesota), a
criminal complaint was signed charging Thomas Pender, former business manager
and financial secretary of Laborers Local 1097, with one count of theft of $7,000
in union funds and one count of financial transaction card fraud involving $167
in union funds. The charges were brought following an investigation by the OLMS
Minneapolis Resident Investigator Office.
On April 3, 2003, in the United States District Court for the Northern District
of Ohio, Enner Ree Edwards, former treasurer of Steelworkers Local 3586 in Cleveland,
pled guilty to embezzling $1,741.53 in union funds following an investigation
by the OLMS Cleveland District Office.
On April 3, 2003, in the United States District Court for the Northern District
of Ohio, Cynthia Barner, former financial secretary of Steelworkers Local 3586
in Cleveland, pled guilty to embezzling $1,751.53 in union funds following an
investigation by the OLMS Cleveland District Office.
On April 2, 2003, in the United States District Court for the District of Columbia,
a criminal information was filed charging Michael Martin with money laundering
in violation of 18 U.S.C. 1956(h), for conspiring to launder more than $1 million
in Washington Teachers' Union funds in furtherance of an embezzlement from the
union. Martin is the son-in-law of the former executive assistant of the union.
The charges state that he was involved in setting up a fictitious company to
launder most of the money back to an officer and an employee of the union. The
charges were brought following a joint investigation by the OLMS Washington
District Office, the FBI, and other law enforcement agencies.
On April 1, 2003, in the United States District Court for the Western District
of Pennsylvania, Albert Dishong, former president of Steelworkers Local 2635,
was sentenced to five months imprisonment, five months monitored home detention,
and three years probation. He was ordered to make restitution to the union in
the amount of $30,509.89 plus interest in monthly payments of not less than
$847.00 plus interest. He had pled guilty on January 10, 2003 to one count of
embezzling union funds. The charges had been brought following an investigation
by the OLMS Pittsburgh District Office.
On April 1, 2003, in the United States District Court for the District of Minnesota,
Thomas Martin, former business manager of Plumbers Local 15, was sentenced to
24 months imprisonment and three years probation. He was ordered to make restitution
of $43,323 and was fined $5,000. He had pled guilty on November 25, 2002 to
one count of embezzling approximately $3,175 in union funds and one count of
mail fraud. The charges had been brought following an investigation by the OLMS
Minneapolis Resident Investigator Office.
On April 1, 2003, in the United States District Court for the Middle District
of Pennsylvania, Laura McClurg, former secretary-treasurer of Amalgamated Transit
Union Local 1195, was sentenced to thirty days home restriction with electronic
monitoring and one year probation for her concealment of union records in connection
with a $2,295 embezzlement. She had been indicted on September 3, 2002, following
an investigation by the OLMS Philadelphia District Office.
On March 28, 2003, in the United States District Court for the District of
North Dakota, Gary Halvorson, former financial secretary and business manager
of Bricklayers Local 3, pled guilty to one count of embezzling $9,975 in union
funds. After acceptance of his plea, he was sentenced to three years probation
and 100 hours of community service and was ordered to make full restitution
of $9,975. He had been indicted on February 11, 2003 following an investigation
by the OLMS Minneapolis Resident Investigator Office.
On March 28, 2003, the Massachusetts Attorney General's Office issued a criminal
complaint against Susan Bertram, former treasurer of National Association of
Government Employees Local 01-195, charging her with one count of larceny over
$250. She had embezzled over $21,000 from the local by withdrawing cash, writing
checks and money orders to herself, and making wire transfers to her credit
accounts from union funds. The charges were brought following an investigation
by the OLMS Boston District Office.
On March 27, 2003, in the United States District Court for the Southern District
of Iowa, Joleen Coughlon, former office secretary of Laborers Local 177, pled
guilty to embezzling union funds and making a false entry in a union record.
She had been indicted on November 20, 2002 following an investigation by the
OLMS St. Louis District Office. She is the fifth defendant to have pled guilty
to the embezzlement of funds from Local 177.
On March 24, 2003, in Onondaga (New York) City Court, John Miller, the former
president of State, County, and Municipal Employees (AFSCME), Civil Service
Employees Association (CSEA) Local 727, pled guilty to one count of attempted
grand larceny in the fourth degree. He had previously made restitution for depositing
two dues remittance checks from CSEA in his personal checking account. The charges
had been brought following an investigation by the OLMS Buffalo District Office.
On March 20, 2003, in the United States District Court for the Middle District
of Florida, Anibal Roldan, former president of Bakery, Tobacco and Grain Workers
Local 361, was charged in a one-count information with embezzling $14,684.28
in union funds. The charges were brought following an investigation by the OLMS
Atlanta District Office.
On March 13, 2003, in the United States District Court for the Eastern District
of Missouri, Steve Floyd, former secretary-treasurer of Paper, Allied-Industrial,
Chemical and Energy Workers International Union (PACE) Local 05-152, was indicted
on three counts of embezzling a total of $27,882 in union funds and one count
of falsifying union records. The charges were brought following an investigation
by the OLMS St. Louis District Office.
On March 12, 2003, in the United States District Court for the Eastern District
of New York, Thomas McCarthy, a member of Elevator Constructors Local One, was
sentenced to one year probation and ordered to pay $4,600 in restitution and
perform 50 hours of community service. He had earlier pled guilty to misdemeanor
charges for conspiracy to demand and receive illegal payments following a joint
investigation by the OLMS New York District Office, the Department of Labor's
Employee Benefits Security Administration, the FBI, and the IRS.
On March 11, 2003, in the United States District Court for the District of
South Dakota, Jo Ann Vaughn, former treasurer of Stage and Picture Operators
Local 220, was sentenced to six months home confinement and five years probation.
She was also ordered to make restitution of $29,175 to Local 220 and to pay
$1,375 to Local 220 officers to reimburse them for costs incurred in the investigation.
She had pled guilty to one count of embezzling approximately $29,000 in union
funds following an investigation by the OLMS Minneapolis Resident Investigator
Office.
On March 11, 2003, in the United States District Court for the Eastern District
of Michigan, Dana Moore, former office manager of the Carpenters Great Lakes
Regional Industrial Council, pled guilty to one count of embezzling union funds.
A one-count information charging Moore with embezzling $20,079 was filed on
February 4, 2003, following an investigation by the OLMS Detroit District Office.
On March 10, 2003, in Onondaga (New York) City Court, Wendy McNally, friend
of John Miller, the former president of CSEA Local 727, pled guilty to one count
of criminal possession of a forged instrument in the third degree. She had cashed
a union check for $1,000 that was improperly written and unauthorized. The charges
had been brought following an investigation by the OLMS Buffalo District Office.
On March 10, 2003, in the United States District Court for the Eastern District
of New York, Terrance Carr, organizer and former warden of Elevator Constructors
Local One, pled guilty to a superceding information charging him with making
false statements in violation of 18 U.S.C. 1001. He had lied to investigators
regarding his involvement in a no-show job scheme. The charges had been brought
following a joint investigation by the OLMS New York District Office, the Department
of Labor's Employee Benefits Security Administration, the FBI, and the IRS.
On March 6, 2003, in the United States District Court for the Southern District
of Iowa, Craig Michael, a member of Laborers Local 177 in Des Moines, was sentenced
to five years probation, two months home confinement, and ordered to make restitution
of $16,900 jointly and severally with former officers Fred Risius and Henry
Jannenga. Michael pled guilty on November 11, 2002 to conspiring to embezzle
union funds. The charges were brought following an investigation by the OLMS
St. Louis District Office.
On March 3, 2003, in the United States District Court for the Central District
of Illinois, Michele K. Hearn, former financial secretary of United Electrical,
Radio and Machine Workers of America (UE) Local 1174, was sentenced to spend
four months in home detention plus three years on supervised release and to
pay $15,635.92 in restitution plus a $100 special assessment. Hearn pled guilty
on August 20, 2002 to embezzling $29,561.02 in union funds. The charges were
brought following an investigation by the OLMS Chicago District Office. [Related
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On March 3, 2003, in the Superior Court for Walla Walla County (Washington),
Peggy Backlund, former secretary-treasurer of National Federation of Federal
Employees Local 181, was charged with felony theft in the first degree totaling
$2,849 following an investigation by the OLMS Seattle District Office.
On February 28, 2003, in the United States District Court for the Middle District
of Florida, Jack Hatch, former president of Retail Wholesale and Department
Store Union Local 43, was sentenced to five months imprisonment followed by
three years of probation, the first five months of which will be under house
arrest with an electronic monitor. He was also ordered to pay restitution of
$37,782.49. He had pled guilty to embezzlement on September 18, 2002, following
an investigation by the OLMS Atlanta District Office.
On February 28, 2003, in the United States District Court for the Southern
District of Iowa, Fred Risius, former president of Laborers Local 177 in Des
Moines, was sentenced to serve 15 months in prison, followed by three years
supervised release, and ordered to pay $100,000 in restitution to Local 177.
Risius pled guilty on July 25, 2002 to embezzling $100,060 in union funds. The
charges were brought following an investigation by the OLMS St. Louis District
Office.
On February 28, 2003, in the United States District Court for the Southern
District of Iowa, Henry Jannenga, former vice-president of Laborers Local 177
in Des Moines, was sentenced to serve three months in prison, followed by three
years supervised release including six months home confinement, and ordered
to pay $22,500 in restitution to Local 177. Jannenga pled guilty on July 25,
2002 to embezzling $20,460 in union funds. These charges were brought following
an investigation by the OLMS St. Louis District Office.
On February 28, 2003, in the United States District Court for the Southern
District of Ohio, Thomas M. Payne, former secretary-treasurer of American Federation
of Government Employees Local 1938 in Huntington, WV, pled guilty to committing
bank fraud. Payne admitted to defrauding the bank and the Local out of funds
totaling $12,184.62 by cashing dues checks and forging checks to himself. The
charge was brought following an investigation by the OLMS Pittsburgh District
Office.
On February 28, 2003, in the United States District Court for the Eastern District
of Missouri, Donald Stevens, former President of Sheet Metal Workers Local 93,
was sentenced to two years probation after pleading guilty to the falsification
of union records on December 9, 2002. As a condition of probation, he was ordered
to pay $810 in restitution in addition to the $4,000 he had previously paid.
The charge was brought following an investigation by the OLMS St. Louis District
Office.
On February 28, 2003, in the United States District Court for the Western District
of Pennsylvania, John Dorrier, former business agent of Operating Engineers
Local 66, was sentenced to spend 12 months and 1 day in federal prison, pay
restitution in the amount of $56,195, spend three years on supervised probation,
and pay a $300 special assessment. Restitution in the amount of $1,000 each
month becomes payable upon release from prison. Amended tax returns are to be
filed with the IRS with the applicable fines and interest to be computed by
the IRS. Dorrier pled guilty to embezzlement, forgery, and interfering with
the administration of IRS laws on November 14, 2002, following a joint investigation
by the OLMS Pittsburgh District Office and the IRS Criminal Investigative Division.
On February 27, 2003, in Massachusetts District Court in Lynn, MA, Edward P.
Martin, former president of Utility Workers Local 446, was charged with larceny
in the amount of $22,568 following an investigation by the OLMS Boston District
Office.
On February 25, 2003, in the United States District Court for the Northern
District of Alabama, Lorena Phillips, former secretary-treasurer of Communication
Workers of America Local 3974, was indicted for embezzling $48,380 in union
funds, filing a false annual financial report Form LM-3, and making false entries
in required union records. These charges were brought following an investigation
by the OLMS Nashville District Office.
On February 20, 2003, in the United States District Court for the Northern
District of Illinois, Anthony King, former treasurer of International Brotherhood
of Electrical Workers Local 533 in Berwyn, Illinois, pled guilty to embezzling
$14,450 in union funds between May 1997 and June 1999 (a change of plea). King
was charged on January 24, 2003, following an investigation by the OLMS Chicago
District Office.
On February 18, 2003, in the United States District Court for the District
of Minnesota, Jerome Dube, former financial secretary of Carpenters Local 1865,
was sentenced to three years probation with the first 120 days to be served
in community confinement with work release followed by 60 days in home detention
with work release. Dube was ordered to pay restitution in the total amount of
$14,176. Dube pled guilty to embezzling union funds on November 27, 2002, following
an investigation by the OLMS Minneapolis Resident Investigator Office.
On February 18, 2003, in the United States District Court for the Eastern District
of Michigan, Isadore Hampton, former president of United Auto Workers Local
835, was sentenced to 180 days home confinement, three years probation, and
ordered to pay restitution of $10,389 and a special assessment of $100. Hampton
was also ordered to surrender a 17-foot fiberglass boat and a 1974 Dodge to
the U.S. Marshals Service so that they might be sold with the proceeds being
applied toward his restitution. Hampton pled guilty to embezzling union funds
on October 3, 2002, following an investigation by the OLMS Detroit District
Office.
On February 14, 2003, in United States District Court for Western District
of Wisconsin, Michael Koehler, former business manager of Electrical Workers
965, was sentenced to two years and one month in prison, three years supervised
release, and ordered to make full restitution. Koehler pled guilty to embezzling
$135,198 on November 8, 2002 following an investigation by the OLMS Milwaukee
District Office.
On February 13, 2003, in the United States District Court for the Northern
District of Illinois, John O'Connell, former Secretary-Treasurer of Machinists
Local 524 of Island Lake, pled guilty to embezzling $36,702 in union funds.
O'Connell was charged on February 3, 2003, following an investigation by the
OLMS Chicago District Office.
On February 12, 2003, in the United States District Court for the Western District
of Virginia, Robert E. Martin, Jr., former member of Steelworkers Local Union
9336 in Radford, Virginia, was sentenced to spend three years on probation and
ordered to pay $900.71 in restitution plus a special assessment of $100. Martin
was further ordered to report to his probation officer any contacts with fugitive
Elizabeth J. George and any information on her whereabouts. On December 11,
2002, Martin pled guilty to one count of harboring George and concealing her
from arrest. Martin was previously charged with embezzlement before being jailed
for three months on the harboring charge. These charges were brought following
an investigation by the OLMS Pittsburgh District Office.
On February 11, 2003, in the United States District Court for the District
of North Dakota, the grand jury returned a three count indictment against Gary
Halvorson, former financial secretary and business manager of Bricklayers Local
3. The indictment charges Halvorson with one count of embezzlement of $10,175
in union funds, one count of filing a false report, and one count of destruction
of records. The charges were brought following an investigation by the OLMS
Minneapolis Resident Investigator Office.
On February 11, 2003, in the United States District Court for the Western District
of New York, David Koch, former secretary-treasurer of PACE Local Union #1-236,
was sentenced to two years of probation and 40 hours of community service after
pleading guilty to filing a false union report. Koch was ordered to continuing
making restitution to the union in the remaining amount of $9,445. The charges
were brought following an investigation by the OLMS Buffalo District Office.
On February 10, 2003, in the United States District Court for the Northern
District of New York, Thomas Lannon, former secretary-treasurer of Machinists
Local Lodge #1562, was sentenced to six months of home detention followed by
three years of probation and to perform 120 hours of community service. Lannon
pled guilty to embezzling union funds and made restitution in the amount of
$13,175 following an investigation by the OLMS Buffalo District Office.
On February 10, 2003, in the United States District Court for the Eastern District
of New York, Edward Donohue, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation, perform 400 hours of community
service, pay $244,996 in restitution, pay a fine of $1,000, and pay a $100 assessment.
In addition, Donohue must forfeit $72,000 to the United States government, representing
the total sum of unlawful contributions made on behalf of the defendant to all
benefit plans affiliated with Local One of the International Union of Elevator
Constructors. On October 10, 2002, Donohue pled guilty to conspiracy to demand
and receive unlawful labor payments. On February 5, 2002, Donohue was charged
with conspiracy, false ERISA statements, money laundering conspiracy, money
laundering, and unlawful labor payments following a joint investigation by the
OLMS New York District Office, the Department of Labor's Pension and Welfare
Benefits Administration, the FBI, and the IRS.
On February 10, 2003, in the United States District Court for the Eastern District
of New York, James Cassidy, an employee of Elevator Constructors Local One,
was sentenced to spend three years on probation, perform 400 hours of community
service, pay $40,000 in restitution, pay a fine of $3,750, and pay a $100 assessment.
In addition, Cassidy must forfeit $31,817 to the United States government, representing
the total sum of unlawful contributions made on behalf of the defendant to all
benefit plans affiliated with Local One of the International Union of Elevator
Constructors. On October 10, 2002, Cassidy pled guilty to conspiracy to demand
and receive unlawful labor payments. On February 5, 2002, Cassidy was charged
with conspiracy, false ERISA statements, money laundering conspiracy, money
laundering, and unlawful labor payments following a joint investigation by the
OLMS New York District Office, the Department of Labor's Pension and Welfare
Benefits Administration, the FBI, and the IRS.
On February 7, 2003, in the United States District Court for the Eastern District
of Wisconsin, Steven Pautz, former president of Machinists Lodge 251, was sentenced
to three years of probation including six months of home confinement. Pautz
pled guilty to one count of embezzlement of union funds on November 19, 2002
following an investigation by the OLMS Milwaukee District Office.
On February 6, 2003, in United States District Court for the District of Columbia,
Leroy Holmes, former chauffeur for the Washington Teachers Union, pled guilty
to conspiring to commit money laundering in an amount in excess of $1 million.
This guilty plea was as a result of an ongoing investigation by the OLMS Washington
District Office, the FBI, and other law enforcement agencies.
On February 5, 2003, in the United States District Court for the Southern District
of Ohio, the grand jury returned a two count indictment against Debra Dougherty,
former office secretary of International Brotherhood of Electrical Workers Local
648. The indictment charges Dougherty with one count of embezzlement of $41,829.95
in union funds and one count of bank fraud in the amount of $7,030.40. The charges
were brought following an investigation by the OLMS Cincinnati District Office.
On January 31, 2003, in United States District Court for the Western District
of Texas, Michael Van Bibber, former business manager of Asbestos Workers Local
87, was sentenced to ten months confinement, 36 months of supervised release,
and ordered to pay restitution in the amount of $30,260. Van Bibber pled guilty
to embezzling union funds on August 9, 2002, following an investigation by the
OLMS New Orleans District Office.
On January 31, 2003, in United States District Court for the District of Columbia,
Blanche Williams, former treasurer of American Federation of Government Employees
(AFGE) Local 421, was sentenced to five years supervised probation and ordered
to pay both full restitution in the amount of $7,193 and a mandatory fine of
$100. Williams pled guilty to both fraud and theft on November 15, 2002, following
an investigation by the OLMS Washington District Office.
On January 29, 2003, in the United States District Court for the Central District
of Illinois, Stephen E. Morris, former treasurer of International Brotherhood
of Electrical Workers (IBEW) Local 109 in Rock Island, Illinois, was charged
with embezzling $68,017.35 in union funds following an investigation by the
OLMS Chicago District Office.
On January 28, 2003, in the United States District Court for the Northern District
of Florida, Geoffrey R. Barron, former business manager/financial secretary-
treasurer of Carpenters Local 2471, was sentenced to five years probation, ordered
to pay restitution in the amount of $35,855, and ordered to pay a special court
assessment of $100.00. On October 29, 2002, Barron pled guilty to embezzling
$29,855.26 in union funds following an investigation by the OLMS Atlanta District
Office.
On January 24, 2003, in the United States District Court for the Eastern District
of New York, Karen Gordan, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation, perform 400 hours of community
service, pay $140,357 in restitution, and pay a $100 assessment. In addition,
Gordan must forfeit $55,726 to the United States government, representing the
total sum of unlawful contributions made on behalf of the defendant to all benefit
plans affiliated with Local One of the International Union of Elevator Constructors.
On November1, 2002, Gordan pled guilty to conspiracy to demand and receive unlawful
labor payments. On February 5, 2002, Gordan was charged with conspiracy, false
ERISA statements, money laundering conspiracy, money laundering, and unlawful
labor payments following a joint investigation by the OLMS New York District
Office, the Department of Labor's Pension and Welfare Benefits Administration,
the FBI, and the IRS.
On January 24, 2003, in the United States District Court for the Eastern District
of New York, Paul Downey, a member of Elevator Constructors Local One, was sentenced
to spend three years on probation, perform 400 hours of community service, pay
$101,141 in restitution, pay a $5,000 fine, and pay a $100 assessment. In addition,
Paul Downey must forfeit $24,949 to the United States government, representing
the total sum of unlawful contributions made on behalf of the defendant to all
benefit plans affiliated with Local One of the International Union of Elevator
Constructors. On October 17, 2002, Paul Downey pled guilty to conspiracy to
demand and receive unlawful labor payments. On February 5, 2002, Paul Downey
was charged with conspiracy, false ERISA statements, money laundering conspiracy,
money laundering, and unlawful labor payments following a joint investigation
by the OLMS New York District Office, the Department of Labor's Pension and
Welfare Benefits Administration, the FBI, and the IRS.
On January 24, 2003, in the United States District Court for the Eastern District
of New York, Kevin Murphy, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation, perform 400 hours of community
service, pay $12,252.98 in restitution, pay a $500 fine, and pay a $100 assessment.
In addition, Murphy must forfeit $3,311 representing the total sum of unlawful
contributions made on behalf of the defendant to all benefit plans affiliated
with Local One of the International Union of Elevator Constructors. On September
11, 2002, Murphy pled guilty to conspiracy to demand and receive unlawful labor
payments. On February 5, 2002, Murphy was charged with conspiracy, false ERISA
statements, money laundering conspiracy, money laundering, and unlawful labor
payments following a joint investigation by the OLMS New York District Office,
the Department of Labor's Pension and Welfare Benefits Administration, the FBI,
and the IRS.
On January 24, 2003, in the United States District Court for the Eastern District
of New York, Michael O'Gara, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation, perform 400 hours of community
service, pay $69,452.24 in restitution, pay a $5,000 fine, and pay a $100 assessment.
In addition, O'Gara must forfeit $8,458.76 to the United States government,
representing the total sum of unlawful contributions made on behalf of the defendant
to all benefit plans affiliated with Local One of the International Union of
Elevator Constructors. On October 17, 2002, O'Gara pled guilty to conspiracy
to demand and receive unlawful labor payments. On February 5, 2002, O'Gara was
charged with conspiracy, false ERISA statements, money laundering conspiracy,
money laundering, and unlawful labor payments following a joint investigation
by the OLMS New York District Office, the Department of Labor's Pension and
Welfare Benefits Administration, the FBI, and the IRS.
On January 24, 2003, in the United States District Court for the Eastern District
of New York, William Tracy, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation, perform 400 hours of community
service, pay $23,127 in restitution, pay a $500 fine, and pay a $100 assessment.
On September 11, 2002, Tracy pled guilty to conspiracy to demand and receive
unlawful labor payments. On February 5, 2002, Tracy was charged with RICO conspiracy,
false ERISA statements, money laundering conspiracy, money laundering, and unlawful
labor payments following a joint investigation by the OLMS New York District
Office, the Department of Labor's Pension and Welfare Benefits Administration,
the FBI, and the IRS.
On January 24, 2003, in the United States District Court for the Northern District
of Illinois, Anthony King, former treasurer of International Brotherhood of
Electrical Workers Local Union 533, was charged with embezzling $14,450 in union
funds. An agreement has been reached in which King indicates he will plead guilty
at a hearing scheduled on February 13. The charge was brought following a joint
investigation by the OLMS Chicago District Office and the U.S. Postal Inspection
Service.
On January 24, in the United States District Court for the Northern District
of Indiana, William Brooks, former recording secretary of Painters Local 8 of
Lake Station, Indiana, pled guilty to embezzling $13,755.15 in union funds.
Brooks was indicted on November 15, 2001 following an investigation by the OLMS
Chicago District Office.
On January 23, 2003, in the United States District Court for the Eastern District
of Virginia, a grand jury returned a one-count indictment against Barbara Ann
Fields, former financial secretary of Bakery, Confectionery, Tobacco Workers
and Grain Millers International Union (BCTGM) Local 255-T. The indictment charges
Fields with one count of embezzling $10,557.79 in union funds. The charge was
brought following an investigation by the OLMS Washington District Office.
On January 23, 2003, in the United States District Court for the Middle District
of Pennsylvania, James Hubler, former financial secretary of Steelworkers Local
14375, pled guilty to embezzling $27,226 in union funds following an investigation
by the OLMS Philadelphia District Office.
On January 22, 2003, in the United States District Court for the Southern District
of Mississippi, Willie Corbett, former delegate of Maintenance of Way Lodge
616 of Union, Mississippi, pled guilty to falsifying union records. Corbett
was indicted on September 25, 2002 following an investigation by the OLMS New
Orleans District Office.
On January 22, 2003, in the Sixth District Court of Iowa, Carl Roush, former
business manager of Hotel Employees Restaurant Employees Local 497 in Cedar
Rapids, pled guilty to felony theft. The Linn County Iowa Prosecuting Attorney
charged Roush with the theft of $2,691 in union funds on April 12, 2002, following
an investigation by the OLMS St. Louis District Office.
On January 22, 2003, in the United States District Court for the Southern District
of Ohio, Jeffrey L. Williams, former treasurer of Chapter 6555, AFSCME Local
11, pled guilty to embezzling $3,312.65 in union funds. The charges were brought
following an investigation by the OLMS Cleveland District Office.
On January 16, 2003, in the United States District Court for the Eastern District
of New York, Raymond Costello, a member of Elevator Constructors Local One,
was sentenced to spend three years on probation and perform 400 hours of community
service. Costello was ordered to pay $15,209 in restitution, which will be held
by the Court Clerk until his victim, Turner Construction, submits an affidavit
of loss to the court. Costello was also given the maximum fine of $5,000 and
ordered to pay a $100 assessment. On October 10, 2002, Costello pled guilty
to conspiracy to demand and receive unlawful labor payments. On February 5,
2002, Costello was charged with conspiracy, false ERISA statements, money laundering
conspiracy, money laundering, and unlawful labor payments following a joint
investigation by the OLMS New York District Office, the Department of Labor's
Pension and Welfare Benefits Administration, the FBI, and the IRS.
On January 16, 2003, in the United States District Court for the Eastern District
of New York, Michael Coady, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation and perform 400 hours of community
service. Coady was ordered to pay $32,796.96 in restitution, which will be held
by the Court Clerk until his victim, a contractor named Morse Diesel, submits
an affidavit of loss to the Court. Coady was also fined $500, ordered to pay
$600 each month until restitution is completely paid, and ordered to pay a $100
assessment to the Court. On October 10, 2002, Coady pled guilty to conspiracy
to demand and receive unlawful labor payments. On February 5, 2002, Coady was
charged with conspiracy, false ERISA statements, money laundering conspiracy,
money laundering, and unlawful labor payments following a joint investigation
by the OLMS New York District Office, the Department of Labor's Pension and
Welfare Benefits Administration, the FBI, and the IRS.
On January 16, 2003, in the United States District Court for the Eastern District
of New York, Frank Walker, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation and perform 400 hours of community
service. Walker was ordered to pay $7,338.50 in restitution, which will be held
by the Court Clerk until his victim, a contractor named Constructive Industries,
submits an affidavit of loss to the Court. Walker was also given the maximum
fine of $5,000 and ordered to pay a $100 assessment to the Court. On October
10, 2002, Walker pled guilty to conspiracy to commit mail fraud. On February
5, 2002, Walker was charged with conspiracy and false ERISA statements following
a joint investigation by the OLMS New York District Office, the Department of
Labor's Pension and Welfare Benefits Administration, the FBI, and the IRS.
On January 16, 2003, in the United States District Court for the Eastern District
of New York, Steve Schmidt, a member of Elevator Constructors Local One, was
sentenced to spend three years on probation and perform 400 hours of community
service. Schmidt was ordered to pay $36,000 in restitution, which will be held
by the Court Clerk until his victim, a contractor named HRH Construction, submits
an affidavit of loss to the Court. Schmidt was also fined $500, ordered to pay
$600 each month until restitution is completely paid, and ordered to pay a $100
assessment to the Court. On October 10, 2002, Schmidt pled guilty to conspiracy
to demand and receive unlawful labor payments. On February 5, 2002, Schmidt
was charged with conspiracy, false ERISA statements, money laundering conspiracy,
money laundering, and unlawful labor payments following a joint investigation
by the OLMS New York District Office, the Department of Labor's Pension and
Welfare Benefits Administration, the FBI, and the IRS.
On January 14, 2003, in the United States District Court for the Southern District
of Iowa, Clyde Starkey, former member of Laborers Local 177 in Des Moines, pled
guilty to conspiracy to embezzle union funds. Starkey was indicted on November
19, 2002, for cashing $28,905 in union checks payable to the fictitious Starkey
Construction Company and then splitting the proceeds with the Local 177 business
manager. The investigation was conducted by the OLMS St. Louis District Office.
On January 14, 2003, in the United States District Court for the Southern District
of West Virginia, Julia Mynes, former employee of United Steelworkers Local
14614, was indicted on one count of embezzling $4,001 in union funds following
an investigation by the OLMS Pittsburgh District Office.
On January 10, 2003, in the United States District Court for the Western District
of Pennsylvania, Albert P. Dishong, former president of Steelworkers Local 2635,
pled guilty to a one-count indictment charging him with embezzlement of union
funds. Dishong submitted false and fictitious lost time vouchers to Local 2635,
converting approximately $30,000 to his personal use. The charge was brought
following an investigation by the OLMS Pittsburgh District Office.
On January 9, 2003, in West Virginia District Court in Wayne County, Dwight
D. Icenhower, former president, general chairman, and financial secretary-treasurer
of the Transportation Communications Union, District Lodge 6455, was sentenced
to pay a fine plus court costs for attempted embezzlement. Icenhower pled guilty
to a misdemeanor attempt to commit an embezzlement of $3,953.44 in union funds
following an investigation by the OLMS Pittsburgh District Office.
On January 9, 2003, in the United States District Court for the Western District
of Louisiana, Norma J. Reedy, former treasurer of the Louisiana State American
Postal Workers Union, was charged with embezzling $34,800 in union funds following
an investigation by the OLMS New Orleans District Office.
On January 9, 2003, in the United States District Court for the Eastern District
of Kentucky, Kenneth D. Stacey, former president of Teamsters Local 651, was
sentenced to one year of probation with four months of home confinement and
ordered to pay a fine of $1,000 and a $100 assessment. Full restitution was
made when Stacey pled guilty to embezzling $10,359.93 in union funds on September
26, 2002. The charge was brought following an investigation by the OLMS Cincinnati
District Office.
On January 9, 2003, in the United States District Court for the Eastern District
of Wisconsin, Kim M. Conner, former financial secretary-treasurer of United
Auto Workers Local 469, was sentenced to six months imprisonment followed by
six months of home confinement and three years of supervised release. Conner
was ordered to make full restitution of $54,317.39, pay a special assessment
of $125, and perform five days of community service. Conner pled guilty on October
10, 2002 to one count of embezzlement of union funds and one count of filing
a false LM-2 report following an investigation by the OLMS Milwaukee District
Office.
On January 8, 2003, in the United States District Court for the District of
Montana, Frank Darvis, former treasurer of United Transportation Union Local
891, was indicted on one count of embezzling $29,865 in union funds following
an investigation by the OLMS Denver District Office.
On January 8, 2003, in the Hamilton County (Ohio) Municipal Court, Michelle
Back, former office secretary for Local 12 of the Hotel Employees and Restaurant
Employees International Union, pled guilty to theft of union funds and was sentenced
to one year probation, a $100 fine, and court costs. Back was charged following
an investigation by the OLMS Cincinnati District Office.
On January 6, 2003, in Blue Earth (Minnesota) District Court, Adam Wobbrock,
former treasurer of Graphic Communications International Union Local 379-C,
was sentenced to ten days in jail with work release and fined $537. On December
11, 2002, Wobbrock pled guilty to one count of theft related to an embezzlement
of $3,675.36 in union funds. The charges were brought following an investigation
by the OLMS Milwaukee District Office.
On January 6, 2003, in Bradley County (Arkansas) Circuit Court, Tasha R. Word,
former office secretary for Machinist Local Lodge 484, was charged in a one-count
information with credit card fraud and in a seven-count information with forgery
and theft of property totaling $1,191. The charges were brought following an
investigation by the OLMS Dallas District Office.
Last Updated: 12/21/07
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