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Release Date: December 19, 2008
Release Number: 08-1860-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Chicago - On Thursday December 18 a federal
grand jury in Chicago, Illinois, indicted Beny Garneata for embezzlement
and false statements related to the employee benefit plans of the
Chicago Journeymen Plumbers’ Union Local 130 and the International
Brotherhood of Electrical Workers Union Local 134.
“The Department of Labor is committed to protecting
workers’ benefit plans, and we will not tolerate criminal activity,”
stated Bradford P. Campbell, assistant secretary of the Labor Department’s
Employee Benefits Security Administration (EBSA).
According to the indictment, Garneata is the owner
and operator of M3 Plumbing Inc. (M3), and M5 Electrical Contractors
Inc. (M5). M3 is a signatory contractor subject to the terms and
conditions of collective bargaining agreements with the Chicago
Journeymen Plumbers’ Union Local 130 (Local 130). M5 is a signatory
contractor subject to the terms and conditions of collective bargaining
agreements with the International Brotherhood of Electrical Workers
Union Local 134 (Local 134).
The indictment alleges that between January 2004 and
April 2008, Garneata paid his M5 employees with cash to avoid reporting
hours and wages and paying required benefit contributions to the
employee benefit plans. As a result of the cash payments, at least
$250,000 in employer contributions were not made to the employee benefit
plans of Local 134.
The indictment also alleges that between January 2007
and April 2008, Garneata employed a similar scheme at M3, whereby he
paid his M3 employees with cash and/or personal checks to avoid
reporting hours and paying required benefit contributions to the
employee benefit plans. As a result of the cash payments, at least
$70,000 in employer contributions were not made to the employee benefit
plans of the Local 130.
The public is reminded that an indictment is not
evidence of guilt. The defendant is presumed innocent and is entitled to
a fair trial at which the government has the burden of proving guilt
beyond a reasonable doubt.
The investigation is being worked jointly by the U.S.
Department of Labor’s Office of Inspector General and Employee
Benefits Security Administration, the Federal Bureau of Investigation,
U.S. Postal Inspection Service, City of Chicago Inspector General’s
Office, and the Internal Revenue Service’s Criminal Investigation
Division. The case is being prosecuted by the U.S. Attorney’s office
in the Northern District of Illinois.
In the last eight years, EBSA has achieved
record-breaking cumulative monetary results of $11.9 billion for pension
and other employee benefits plans. During that same time, 907
individuals were indicted for crimes related to employee benefit plans.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format (large print, Braille, audio tape or
disc) from the COAST office upon request. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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