Labor’s Friends: Don’t Hold Unions Accountable

By December 11, 2007Labor Unions

The left-leaning Center for American Progress has released an apology for labor corruption disguised as a report on the Office of Labor-Management Standards, “Beyond Justice.” The OLMS is the office within the Department of Labor charged with monitoring legally mandated financial disclosures by labor unions. Labor’s friends in Congress have cut its funding, one of the very few areas where agency budgets are being reduced. (Earlier blog posts here and here, and a letter from the National Association of Manufacturers and other trade associations is here.)

Headed by John Podesta, President Clinton’s former chief of staff, the Center is supposed to be one of the more sophisticated and serious of left-leaning think tanks. You sure wouldn’t think so by reading “Beyond Justice.”

The “report” is a laughably political document, attacking the Bush Administration for the firing of the U.S. attorneys, criticizing Newt Gingrich for something he said in 1992, and even trying to slur someone with an association with Vice President Dan Quayle. Add some conspiracy mongering about Rick Berman and the Center for Union Facts. And here’s another nice bit, the accusation that embezzlement is a bigger problem in churches than it is in unions. (Page 16.)

Then there’s this from Page 15:

The OLMS data base indicates that restitutions to unions totaled a little more than $6 million in fiscal year 2004, and a little more than $3 million in fiscal year 2003. This raises the question of whether new reporting requirements that OLMS has imposed on unions aren’t costing union treasures far more than the theft, embezzlement, and fraud they are aimed at preventing.

Apparently deterrence is an alien concept to the author of this document, Scott Lilly. (Hmm. Would it be a rebuttal to note his work on the McGovern campaign? Guess not.)

Amid all this political bluster is the core argument that OLMS oversight is designed to harass labor unions and is a burden.

OK. Accountability can be a pain. Agreed.

And here’s a list of recent criminal enforcement action taken thanks to the work of the Office of Labor Management Standards.

You know who benefits from this enforcement? All the unions members who have been ripped off by corrupt labor officials. Not a concern to the Center for American Progress, apparently.

Full list of 2007 enforcements in the extended entry.


Recent Criminal Enforcement Actions

On December 3, 2007, in the United States District Court for the Eastern District of Michigan, Darren Johnson, former President of National Treasury Employees Union Chapter 78, pled guilty to one count of bank robbery and incidental crimes. On November 16, 2007, Johnson was charged with stealing union funds in the amount of $4,756.75 that were within the care, custody, control, management, or possession of Comerica Bank. The plea follows an investigation by the OLMS Detroit District Office.

On November 30, 2007, in the United States District Court for the Southern District of Ohio, Linda Leonard, former office secretary of Laborers Local 216, was charged with one count of making false entries in union records. The charge follows an investigation by the OLMS Cincinnati District Office.

On November 29, 2007 in the United States District Court for the District of Kansas, Kelli Tyrell-Moore, former executive assistant of the Kansas State Nurses Association, was sentenced to eight months of confinement and three years of probation. Tyrell-Moore was also ordered to make restitution in the amount of $63,307. On July 25, 2007, Tyrell-Moore pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS Kansas City Resident Office.

On November 28, 2007, in the United States District Court for the Southern District of Ohio,William Pagano, former Secretary Treasurer of the National Association of Letter Carriers,Branch 78, was sentenced to six months in prison followed by six months home confinementwith electronic monitoring and three years probation. Pagano previously plead guilty toembezzling $66,759.18 in union funds. He was also ordered to make full restitution and pay aspecial assessment. The sentencing follows an investigation by the OLMS Cleveland District Office.

On November 28, 2007, in the United States District Court for the Western District of New York, William Drake, current President of Steelworkers, Local 1013T pled guilty to knowingly failing to disclose material facts on the local’s annual financial report for years 2001, 2002, and 2003. The plea agreement requires Drake to make restitution in the amount of $3,497.06. The plea follows an investigation by the OLMS Buffalo District Office.

On November 21, 2007, in the United States District Court for the Northern District of Georgia, Kirk A. Tuttle, former Treasurer of the Professional Airline Flight Control Association – DELTA, was sentenced to 9 months in prison, two years of supervised release, and 150 hours of community service, fined $8,000 and ordered to pay a special assessment of $100. Tuttle had previously paid over $159,000 in restitution. On September 7, 2007, Tuttle pled guilty to one count of embezzling union funds in the amount of $172,846.16. The sentencing follows an investigation by the OLMS Atlanta District Office.

On November 21, 2007, in the United States District Court for the Western District of Virginia, Randy Greear, former Secretary-Treasurer of the Brotherhood of Locomotive Engineers Division 37, pled guilty to embezzling union funds in the amount of $22,691.60. On September 11, 2007, Greear was indicted on one count of embezzling union funds in the same amount. The guilty plea follows an investigation by the OLMS Washington District Office.

On November 20, 2007, in the United States District Court for the Northern District of Ohio, Betty Illig, former Secretary-Treasurer of GCIU Local 638-S and the Tri-State District Joint Council, was indicted on one count of embezzling union funds totaling $145,675 and one count of making false statements. The indictment follows a joint investigation by the OLMS Cleveland District Office and the Department of Labor’s Office of Inspector General.

On November 16, 2007, in the United States District Court for the Eastern District of Michigan, an information was filed against Darren Johnson, former President of National Treasury Employees Union Chapter 78, charging him with one count of bank robbery and incidental crimes in the amount of $4,756.75. Johnson is alleged to have intended to steal union funds within the care, custody, control, management, or possession of Comerica Bank. The information follows an investigation by the OLMS Detroit District Office.

On November 15, 2007 in the Circuit Court of the State of Oregon for Umatilla County, Robert Steele, former President of AFGE Local 1417, was charged with theft in the first degree and misapplication of entrusted property. The charges follow an investigation by the OLMS Seattle District Office.

On November 14, 2007, in the United States District Court for the Southern District of Ohio, Brad Dubray, former Treasurer of Carpenters Local 113, pled guilty to embezzling union funds in the amount of $14,548.11. On October 15, 2007, DuBray was charged with one count of embezzling union funds in the same amount. The plea follows an investigation by the OLMS Cincinnati District Office.

On November 14, 2007, in the United States District Court for the Eastern District of Michigan, Alan Raines, former Financial Secretary of Steelworkers Local 1358, was sentenced to 24 months in prison, two years of supervised release, ordered to pay a special assessment of $100, and ordered to pay restitution in the amount of $145,823.92. Raines had previously paid over $128,000 in restitution. On July 11, 2007, Raines pled guilty to one count of embezzling union funds in the amount of $274,262.38. The sentencing follows an investigation by the OLMS Detroit District Office.

On November 8, 2007 in the United States District Court for the Southern District of Ohio, Michelle Meek, former Treasurer of AFGE Local 3435, was charged with one count of theft within a special territorial jurisdiction of the United States totaling $7,278.28 and two counts of making false entries on financial reports. The charges follow a joint investigation by the OLMS Cleveland District Office, the Department of Labor’s Office of Inspector General, and the Department of Housing and Urban Development’s Office of Inspector General.

On November 7, 2007, in the United States District Court for the Western District of Pennsylvania, Deborah Anthony, former Financial Secretary of Steelworkers Local 1196, was charged with eight counts of embezzling union funds totaling $6,955.18 and one count of preparing false union records. The charges follow an investigation by the OLMS Pittsburgh District Office.

On November 5, 2007, in the United States District Court for the District of Colorado, Linda Peterson, former Secretary-Treasurer of APWU Branch 715, was charged with embezzling union funds in the amount of $2,905 and embezzling U.S. Postal Service funds in the amount of $3,600. The charges follow a joint investigation by the OLMS Denver District Office and the U.S. Postal Service Office of Inspector General.

On November 2, 2007, in the United States District Court for Connecticut, Timothy C. Ferrucci, former President of Northeast Emergency Services Union, pled guilty to four counts of filing a false report. Ferrucci admitted making false statements on the local’s annual Form LM-3 for the years 2001, 2002, 2003 and 2004. In each of the annual reports, Ferrucci understated the amount of compensation he directly or indirectly received. Ferrucci’s plea agreement requires him to make restitution in the amount of $27,347.67. The plea follows an investigation by the OLMS New Haven Resident Office.

On November 1, 1007, in the United States District Court for the District of Nebraska, Connie Scarrow, former Secretary-Treasurer of AFGE Local 3749, was sentenced to five years probation and ordered to serve six months of home confinement. On August 9, 2007, Scarrow pled guilty to knowingly and willfully making a false entry on the local’s Form LM-3 to conceal her misappropriation of union funds. Scarrow had previously made restitution in the amount of $11,000. The sentencing follows an investigation by the OLMS Kansas City Resident Office.[Related documents: HTML|PDF]

On October 29, 2007, in the United States District Court for the Western District of New York, Mary Hartsock, former office manager of Laborers Local 1358 in Elmira, NY, pled guilty to embezzling funds of a labor organization. Hartsock admitted to taking $17,958 in receipts from the local between January 2002 and January 2007. This plea follows an investigation by the OLMS Buffalo District Office.

On October 29, 2007, in the United States District Court for the Middle District of Tennessee, Ron Schweitzer, former President of Steelworkers Local 05-1967, pled guilty to one count of embezzling union funds in the amount of $58,305. On April 4, 2007, Schweitzer was indicted on one count of embezzling union funds in the same amount. The guilty plea follows an investigation by the OLMS Cincinnati District Office.

On October 24, 2007, in the United States District Court for the Eastern District of Michigan, Willie Haynes, former Financial Secretary of UAW Local 362, was sentenced to one year of probation and ordered to pay a $2,000 fine and a $25 special assessment. Haynes had previously made restitution in the amount of $10,201.42. On July 9, 2007, Haynes pled guilty to willfully making false statements on the local’s annual financial reports for the years 2001, 2002, and 2003. The sentencing follows an investigation by the OLMS Detroit District Office.[Related documents: HTML|PDF]

On October 23, 2007, in the United States District Court for the District of Nebraska, Thomas Saltzman, former Secretary-Treasurer of UTU Local 418, was sentenced to five months imprisonment for embezzling union funds in the amount of $35,528.06. Upon his release from prison, Saltzman will be on supervised release for three years and must make restitution. On August 9, 2007, Saltzman pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS Kansas City Resident Office.[Related documents: HTML|PDF]

On October 23, 2007, in the United States District Court for the District of Delaware, Stephen Priest, former Financial Secretary of UAW Local 1516, was indicted on twelve counts of embezzling funds of a labor organization in the amount of $97,899.19. The indictment follows an investigation by the OLMS Philadelphia District Office.

On October 18, 2007, in the Justice Court of Copiah County, Mississippi, Luke Funchess, Roger Hartley, Charles Funchess, Patricia West-Benson and Jack Virgil, former officers of IUE/CWA Local 83-799, were charged with one count of obtaining signature or thing of value with intent to defraud. The former officers filed false lost time vouchers to obtain funds from the local. Subsequently, the former officers each pled guilty to the offense and were ordered to pay court fees and restitution. The sentencing follows an investigation by the OLMS New Orleans District Office.

On October 18, 2007, in the United States District Court for the Southern District of Texas, Heather Lott, former bookkeeper of Teamsters Local 19, was indicted on one count of embezzling union funds in the amount of $140,000. The charge follows an investigation by the OLMS New Orleans District Office.

On October 17, 2007, in the United States District Court for the Southern District of Ohio, Sandra Gorman, former Treasurer of AFSCME Local 11’s ODOT Assembly, pled guilty to one count of falsification of union records. The guilty plea follows an investigation by the OLMS Cleveland District Office.

On October 12, 2007, in the United States District Court for the Eastern District of Missouri, Kathy Rankin, former Financial Secretary-Treasurer for Transportation Communications Union Local 512, pled guilty to one count of embezzling union funds in the amount of $15,622.34. Sentencing has been scheduled for December 21, 2007. The plea follows an investigation by the OLMS St. Louis District Office. [Related documents: HTML|PDF]

On October 12, 2007, in the United States District Court for the Eastern District of Michigan, Denise Nichols, former Financial Secretary-Treasurer of CWA Local 4050 in Detroit, Michigan, pled guilty to one count of embezzling union funds in the amount of $3,804.20. On August 31, 2007, Nichols was indicted on one count of embezzling union funds in the same amount. The plea follows an investigation by the OLMS Detroit District Office.

On October 11, 2007, in the U.S. District Court for the Southern District of California, an indictment was unsealed charging Donna Hammock, aka Donna Jackson or Donna Jones, former President of the National Federation of Federal Employees Local 2096, with two counts of making false and fraudulent statements to a federal department or agency. The indictment alleges that Hammock willfully made false and fraudulent statements and representations as to material facts on the local’s Form LM-3. The indictment follows an investigation by the OLMS Los Angeles District Office.

On October 11, 2007, in the U.S. District Court for the Southern District of California, an indictment was unsealed charging Esau Faaitiiti and Arthur Clark, former President and Vice President, respectively, of the Department of Defense Police Officers Association Local 57 (now known as the Fraternal Order of Police Lodge 12), with making false statements and aiding and abetting. The indictment alleges that Faaitiiti and Clark knowingly and willfully omitted payments they received from the union, in the amounts of $5,000 for Faaitiiti and $9,900 for Clark, on the local’s Form LM- 3. The indictments follow an investigation by the OLMS Los Angeles District Office.

On October 5, 2007, in the United States District Court for the Western District of Washington, Thomas R. Ehlis, former Secretary-Treasurer of IBEW Local 1768, was sentenced to two years probation for embezzling union funds in the amount of $5,619. Ehlis had previously made restitution of the full amount. On May 17, 2007, Ehlis was charged with one count of embezzlement of union assets in the same amount. The sentencing follows an investigation by the OLMS Seattle District Office.

On October 3, 2007, in the Circuit Court of Wayne County, Indiana, Curtis Pittinger, former President of IBEW Local 2043, was charged with three counts of theft of approximately $10,300 in union funds. The charges follow an investigation by the OLMS Cincinnati District Office. [Related documents: HTML|PDF]

On October 2, 2007, in the United States District Court for the Northern District of Oklahoma, Curtis Smith and Steve Dobyns, former President and Secretary-Treasurer, respectively, of Glass Molders Plastics Local 325, were charged with embezzling union funds. Smith was charged with one count of embezzling union funds in the amount of $904.48, while Dobyns was charged with one count of embezzling union funds in the amount of $850. The charges follow an investigation by the OLMS Dallas District Office.

On October 2, 2007, in the United States District Court for the Northern District of West Virginia, Danny E. Beyser, former Financial Secretary of Mineworkers Local 1638, pled guilty to embezzling over $70,000 in union funds. On June 5, 2007, Beyser was charged with one count of embezzling union funds in the amount of $83,274.39. The plea follows an investigation by the OLMS Pittsburgh District Office.

On October 1, 2007, in the United States District Court for the District of Kansas, Dwayne Giles, former President of APWU Local 238, was sentenced to five years probation for conspiracy to embezzle union funds. As special conditions of his probation, Giles was ordered to make $11,959.44 in restitution and serve six months in home confinement. On May 30, 2007, Giles pled guilty to one count of conspiracy to embezzle union funds in the same amount. The sentencing follows an investigation by the OLMS Kansas City Resident Office. [Related documents: HTML|PDF]

On September 26, 2007, in the District Court for Douglas County, Wisconsin, John F. Sigafus, former Secretary Treasurer of Machinists Local Lodge 335-W, was charged with Business Theft over $5,000 and Forgery. The charges follow an investigation by the OLMS Milwaukee District Office.

On September 25, 2007, in the United States District Court for the Northern District of Alabama, Frank M. McEvoy, former Business Manager/Secretary-Treasurer for Laborers Locals 1370 and 123, was indicted on one count of embezzling union funds in the amount of $11,167.50 from Local 1370 and one count of embezzling union funds totaling $23,779 from Local 123. The indictment follows an investigation by the OLMS Nashville District Office.

On September 24, 2007, in the United States District Court for the District of Colorado, Paula Adair-Butts, former office secretary of Plasterers Local 577, was indicted on four counts of embezzling union funds in the amount of $28,480.96. The indictment follows an investigation by the OLMS Denver District Office.

On September 20, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Klope, former Financial Secretary of Boilermakers Lodge 8-S, was sentenced to three years probation for embezzling union funds in the amount of $25,794. Under the special conditions of his probation, Klope is required to spend the first six months on home detention and perform 100 hours of public service. On June 13, 2007, Klope pled guilty to embezzling union funds in the same amount; Klope had previously paid full restitution to the union. The sentencing follows an investigation by the OLMS St. Louis District Office.

On September 20, 2007, in the United States District Court for the Western District of Texas, James Douglas, former Secretary-Treasurer of Glass Molders Plastic Local 220, was sentenced to 2 years probation and 240 hours of community service. The sentencing follows an investigation by the OLMS Dallas District Office.

On September 20, 2007, in the United States District Court for the Western District of Texas, Jose Ocasio, former Secretary-Treasurer of the National Association of Letter Carriers Branch 404, was sentenced to 2 years probation and 240 hours of community service. The sentencing follows an investigation by the OLMS Dallas District Office.

On September 17, 2007 in the United States District Court for the District of Oregon, Marlene Watson, former President of the Associated Field Representatives (AFR), was sentenced to 12 months probation for falsification of an annual financial report filed by a labor union. Watson previously made restitution in the amount of $9,030. The sentencing follows an investigation by the OLMS Seattle District Office.

On September 11, 2007, in the United States District Court for the Middle District of Pennsylvania, Joseph Capece, former Business Manger/Financial-Secretary of IBEW Local 163 in Wilkes-Barre, Pennsylvania, pled guilty to one count of embezzling union funds in the amount of $256,000. On September 4, 2007, Capece was charged with knowingly and willfully embezzling union funds in the same amount. The information and plea follow an investigation by the OLMS Philadelphia District Office.

On September 11, 2007, in the United States District Court for the Southern District of Ohio, William J. Pagano, former Secretary-Treasurer of the National Association of Letter Carriers (NALC) Branch 78, pled guilty to one count of embezzlement of union funds totaling $66,759.18. The plea follows an investigation by the OLMS Cleveland District Office.

On September 11, 2007, in the United States District Court for the Western District of Virginia, former Brotherhood of Locomotive Engineers Division 37 Secretary-Treasurer Randy Greear was indicted on one count of embezzling union funds in the amount of $22,691.60. The indictment follows an investigation by the OLMS Washington District Office.

On September 6, 2007 in the United States District Court for the Northern District of Illinois, Richard Lopez, Mark Jones, Cassandra Mosely, and David Rodriquez, current president, former business agents, and former organizer, respectively, of Teamsters Local 743, were indicted on one count of conspiracy to deprive Local 743 members of their honest services and to embezzle, or steal, the official ballots in the 2004 election of officers. Lopez and Jones were each charged with one count each of embezzlement or theft of union property, that being the official ballots, while Moseley and Rodriquez were each charged with two counts of embezzlement or theft of union property, also being the official ballots. The indictment alleges that between August and December 2004, Lopez, Mosely, Jones and Rodriguez engaged in a scheme to rig the election by diverting official ballot packages to their friends, family and associates, and casting the ballots or causing them to be cast in both the October and December 2004 elections for incumbent officers, known as the “Unity Slate,” to ensure their election. The seven-count indictment follows a joint investigation by the OLMS Chicago District Office, the U.S. Postal Service Office of Inspector General, and the Department of Labor’s Office of Inspector General.

On September 6, 2007, in the United States District Court for the Western District of Oklahoma, Nathaniel Marc Greene, former President of AFGE Local 2562, was sentenced to 10 months confinement, three years probation, ordered to pay a special assessment of $100, and ordered to pay restitution totaling $55,955.76. Greene knowingly and willfully made or used a false writing or document and knew the local’s Form LM-3 contained a materially false statement or entry at the time he made or used the report. On April 4, 2007, Greene pled guilty to one count of making a false statement. The sentencing follows a joint investigation by the OLMS Dallas District Office and the Department of Veterans Affairs’ Office of the Inspector General.

On August 31, 2007, in the United States District Court for the District of Puerto Rico, Jorge Aponte-Figueroa, former President of International Longshoremen’s Association Local Union 1740 was sentenced to five years of imprisonment, and three years of supervised release for embezzling 1.9 million dollars in union funds. On April 2, 2007, Aponte-Figueroa was found guilty of twelve counts of embezzlement, five counts of false reporting on LM reports, conspiracy, and money laundering. The sentencing follows a joint investigation conducted by the OLMS Puerto Rico Resident Investigator Office, the FBI and the U.S. Attorney’s Office in San Juan, Puerto Rico.

On August 31, 2007, in the United States District Court for the Northern District of Texas, Judy A. Thurman, former Treasurer of Federated Independent Texas Union (FITU) Local 900 pled guilty to one count of embezzlement of union funds totaling $164,268.50. The plea follows an investigation by the OLMS Dallas District Office.

On August 31, 2007, in the United States District Court for the Eastern District of Michigan, Denise M. Nichols, former Secretary-Treasurer of CWA Local 4050, was indicted on one count of embezzling union funds in the amount of $3,804.20 and two counts of false records. The indictment follows an investigation by the OLMS Detroit District Office.

On August 28, 2007, in the United States District Court for the Northern District of Indiana, Gary E. Sharp, former Business Manager of IBEW Local 2, pled guilty to one count of embezzling, stealing, and willfully converting to his own use $630 of union funds. The guilty plea follows an investigation by the OLMS Chicago District Office.[Related documents: HTML|PDF]

On August 23, 2007, in the United States District Court for the Eastern District of Tennessee, James B. Green, former Secretary-Treasurer of Railroad Signalmen’s Local Lodge 49, was sentenced to 25 months confinement, three years probation, ordered to pay a special assessment of $500, and ordered to pay restitution totaling $36,025.80. On May 17, 2007, Green pled guilty to five counts of embezzlement of labor organization funds. The sentencing follows an investigation by the OLMS Nashville District Office.

On August 23, 2007, in the United States District Court for the Eastern District of Wisconsin, Debra M. Timko and Danny L. Iverson, former Presidents of Service Employees Local 150, pled guilty to two counts of willful failure to maintain union records. Iverson and Timko failed to generate and maintain adequate and necessary records to establish that various payments made by Local 150 were proper under the union’s policies. The payments included reimbursement of expenses incurred by Iverson and Timko that were not reimbursable due to their failure to comply with the union’s policies. Under their plea agreements, Iverson and Timko agreed to make restitution totaling approximately $63,000. The guilty pleas follow an investigation by the OLMS Milwaukee District Office.

On August 22, 2007, Carson Combs, former secretary treasurer of Machinists Local Lodge 1771 in Sparta, WI was charged by the Monroe County, WI District Attorney’s Office with theft from Local Lodge 1771 in the amount of $401. The charge follows an investigation by the OLMS Milwaukee District Office.

On August 22, 2007, in the United States District Court for the Eastern District of California, Christina Wabinga, former Treasurer of Theatrical Employees Local B-66, pled guilty to one count of false statements and representations of fact, and one count of false entries and concealment in union records. Wabinga agreed to pay restitution totaling $3,533.49, and $2,000 in fines. The guilty plea follows an investigation by the OLMS San Francisco District Office.

On August 17, 2007, in the United States District Court for the District of Kansas, William Kendrick, former Treasurer of APWU Local 238, was sentenced to six months of home detention, five years probation, and ordered to make restitution in the amount of $26,236.94. On May 23, 2007, Kendrick pled guilty to one count of conspiracy to embezzle union funds. The sentencing follows an investigation by the OLMS Kansas City Resident Office.

On August 16, 2007, in the United States District Court for the Eastern District of Kentucky, Terry Howell, former President of USWA Local 8-505, was charged with embezzling $13,210.86 in union funds. The charge follows an investigation by the OLMS Cincinnati District Office.

On August 15, 2007, in the United States District Court for the Middle District of Alabama, Bridgett C. Hooks, former Secretary-Treasurer of the American Postal Workers Local 332, was indicted on one count of embezzling union funds in the amount of $10,820.17. The indictment follows an investigation by the OLMS Nashville District Office.

On August 15, 2007, in the United States District Court for the Western District of Texas, James Douglas, former Secretary-Treasurer of Glass Molders Plastics Local 220, pled guilty to concealing, withholding, and destroying union records. Douglas destroyed the records to conceal his embezzlement of approximately $12,857 in union funds. On July 2, 2007, an information was filed against Douglas charging him with one count of concealing, withholding, and destroying union financial records. The plea follows an investigation by the OLMS Dallas District Office.

On August 15, 2007, in the United States District Court for the Eastern District of Michigan, Claudia R. Thompson, former President of PACE (now Steelworkers) Local 513, was sentenced to one year of probation, ordered to pay restitution in the amount of $26,201.68, and ordered to attend a substance abuse program. On May 15, 2007, Thompson pled guilty to one count of willfully making false entries in financial records to conceal her embezzlement of union funds in the same amount. The sentencing follows an investigation by the OLMS Detroit District Office.[Related documents: HTML|PDF]

On August 9, 2007, in the United States District Court for the District of Nebraska, Thomas Saltzman, former Secretary-Treasurer of UTU Local 418, pled guilty to one count of embezzling union funds in the amount of $32,010. On February 21, 2007, Saltzman was indicted on one count of embezzling union funds. The plea follows an investigation by the OLMS Kansas City Resident Office.[Related documents: HTML|PDF]

On August 9, 2007, in the United States District Court for the District of Nebraska, Connie Scarrow, former Secretary-Treasurer of AFGE Local 3749, pled guilty to one felony count of knowingly and willfully making a false entry on a Form LM-3 Report to conceal her misappropriation of union funds. The plea follows an investigation by the OLMS Kansas City Resident Office.[Related documents: HTML|PDF]

On August 9, 2007, in the United States District Court for the Western District of Michigan, Brad Harper, former Treasurer of AFGE Local 1629, pled guilty to one count of making materially false statements on the annual financial report filed by Local 1629. On June 5, 2007, Harper was indicted on three counts of making false reports. The guilty plea follows an investigation by the OLMS Detroit District Office.

On August 7, 2007, in the United States District Court for the Western District of Missouri, David Hlavacek, former Secretary-Treasurer of American Postal Workers Local 7065 and the Missouri State Postal Workers Union, was sentenced to three years probation and ordered to make restitution in the amount of $4,783. On January 18, 2007, Hlavacek pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS St. Louis District Office.

On August 1, 2007, in the United States District Court for the Eastern District of Louisiana, Lorraine Payton, former President of the National Federation of Federal Employees, Veterans Administration Council, pled guilty to one count of mail fraud. On March 16, 2007, Payton was charged in a superseding indictment with mail fraud and false statements to a government agency. The guilty plea follows an investigation by the OLMS New Orleans District Office.

On July 30, 2007, in the United States District Court for the Western District of Oklahoma, Brenda Sue Myers, also known as Brenda Sue Barnett, former President of AFGE Local 2282, pled guilty to one count of making a false statement. Subsequently, Myers was ordered to pay restitution in the amount of $21,500 and sentenced to three years supervised release. On July 2, 2007, Myers was charged with falsely reporting that Local 2282 disbursed loans in the amount of $21,500, when she knew that statement was materially false and that she had taken the money for her own personal use. The plea and sentence follows an investigation by the OLMS Dallas District Office.

On July 30, 2007, in Superior Court for the District of Columbia, Bradley Burton, former Executive Assistant to the Secretary-Treasurer of the AFL-CIO, was charged with one count of second degree theft for causing the AFL-CIO to pay $7,663.34 in meal expenses for his wife. Subsequently, Burton pled guilty to the information and received a suspended sentence of 180 days in jail, 70 hours of community service, probation for one year, a $350 fine and was ordered to make any restitution that had not already been repaid. The information, plea and sentence follow an investigation by the OLMS Washington District Office.

On July 27, 2007, in the United States District Court for the Southern District of Ohio, an information was filed against William J. Pagano, former Secretary-Treasurer of the National Association of Letter Carriers Local 78, charging him with one count of embezzlement of union funds in the amount of $66,759.18. The information follows an investigation by the OLMS Cleveland District Office. [Related documents: HTML|PDF]

On July 27, 2007, in the United States District Court for the District of Maryland, Walter Fisher, former Secretary-Treasurer of United Transportation Union Local 1949, was sentenced to six months in prison to be followed by six months of home detention and two years probation. Fisher was ordered to attend drug and alcohol counseling, gambling counseling and financial management counseling. Fisher was also ordered to pay $45,000 restitution to the union. On May 3, 2007, Fisher pled guilty to one count of embezzling more than $30,000, but less than $70,000, in union funds. The sentence follows an investigation by the OLMS Washington District Office.

On July 25, 2007, in the United States District Court for the District of Kansas, Kelli Tyrell-Moore, former executive assistant of the Kansas State Nurses Association, pled guilty to one count of embezzling union funds. On April 18, 2007, Tyrell-Moore was charged with embezzling $63,397.16 in union funds. The guilty plea follows an investigation by the OLMS Kansas City Resident Investigator Office.

On July 23, 2007 in the United States District Court for the District of Delaware, Michael A. Pingitore, former Secretary-Treasurer of the Delaware Rural Letter Carriers Association, pled guilty to six counts of embezzling union funds totaling $58,908.38. The guilty plea follows a joint investigation by the OLMS Philadelphia District Office and the USPS Office of the Inspector General.

On July 11, 2007, in the United States District Court for the Eastern District of New York, Frederick Contini, developer of the 2 Broadway Project, was sentenced to five years probation and ordered to make $8,085,000 in restitution. On March 31, 2003, Contini pled guilty to Conspiracy to Receive, Possess and Dispose of Money Obtained by Fraud and Transported Across State Lines, Obstruction of Justice, and engaging in an Unlawful Monetary Transaction. The sentencing follows a joint investigation by the OLMS New York District Office and the FBI of members and union officials of Elevator Constructors Local One.

On July 9, 2007, in the United States District Court for the Eastern District of Michigan (Northern Division), Willie Haynes, former Financial Secretary of UAW Local 362, pled guilty to one count of willfully making false statements on the annual financial reports (Form LM-2) filed by Local 362 for fiscal years 2001, 2002, and 2003. On June 19, 2007, Haynes was charged with making false statements and representations of material facts. The guilty plea follows an investigation by the OLMS Detroit District Office.

On July 7, 2007, in the United States District Court for the Eastern District of Tennessee, Larry Haislip, former Financial Secretary of Steelworkers Local 09-7509-S, was sentenced to six months probation, ordered to pay a special assessment of $100.00, and ordered to pay restitution in the amount of $49,428.78. On January 23, 2007, Haislip pled guilty to one count of embezzlement of labor organization funds in the amount of $1,702.97. The sentencing follows an investigation by the OLMS Nashville District Office.

On July 2, 2007, in the United States District Court for the Western District of Oklahoma, an information was filed against Brenda Sue Myers, also known as Brenda Sue Barnett, former President of American Federation of Government Employees Local 2282, charging her with falsely reporting that the union had disbursed loans in the amount of $21,500.00, when she knew that statement was materially false and that she had taken the money for her own personal use. The information follows an investigation by the OLMS Dallas District Office.

On July 2, 2007, in the United States District Court for the Western District of Texas, an information was filed against James E. Douglas, former Secretary-Treasurer of Glass Molders Plastics Local 220, charging him with concealing, withholding, and destroying union records. The information follows an investigation by the OLMS Dallas District Office.

On July 2, 2007, in the United States District Court for the Western District of Texas, an information was filed against Jose Ocasio, former Secretary-Treasurer of the National Association of Letter Carriers Branch 404, charging him with making false entries in union records. The information follows an investigation by the OLMS Dallas District Office.

On June 27, 2007, in the United States District Court for the District of New Jersey, Maria Clayton, former Financial Secretary-Treasurer of Glass Molders Plastics Local 236A, was sentenced to six years probation, which includes three months of home confinement. Clayton was ordered to make restitution in the amount of $41,126 and continue counseling. On December 5, 2006, Clayton pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS New York District Office.

On June 22, 2007, in the United States District Court for the Eastern District of Texas, Anthony C. Price, former Business Manager and Recording Secretary of ILA Local 1316, was sentenced to five years probation and ordered to make restitution in the amount of $11,804 and pay a special assessment of $100. On March 13, 2007, Price pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS New Orleans District Office.

On June 22, 2007, in the County Court of Sarpy County, Nebraska, Nancy Stanek, was convicted of Criminal Attempt – Second Degree Forgery and sentenced to twelve months probation. On April 13, 2006, Stanek, the wife of Roofers Local 85’s president, pled guilty to forging $5,100 in unauthorized checks drawn on the local’s account. The conviction and sentencing follows an investigation by the OLMS Kansas City Resident Office.

On June 22, 2007, in the United States District Court for the Southern District of New York, Willie Dell Clark, former Treasurer of the National Association of Letter Carriers (NALC) Branch 36, was ordered to serve 180 days of home confinement, monitored by an electronic bracelet; followed by a three-year probationary sentence including mandatory community service of 250 hours. Clark was also ordered to make restitution in the amount of $69,095.60, and to pay an assessment of $100. On July 1, 2004, Clark pled guilty to one count of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS New York District Office.

On June 22, 2007, in the United States District Court for the Southern District of Ohio, Deborah Walters, former Treasurer of AFSCME Local 11, Chapter 8330, was sentenced to six months home confinement with electronic monitoring, five years probation, and ordered to make restitution in the amount of $25,891.11. On March 15, 2007, Walters pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS Cleveland District Office.

On June 22, 2007, in U.S. District Court for the District of Columbia, Kermit Dorsey, former Regional Administrator of CWA District 7, was sentenced to 500 hours of community service to be completed within three years and a term of probation to expire at the completion of the community service. On March 13, 2007, Dorsey pled guilty to embezzling union funds in the amount of $22,798.29. The sentencing follows an investigation by the OLMS Washington District Office.

On June 21, 2007, in the United States District Court for the Northern District of Georgia, Kenneth E. Hilbish, former President of Teamsters Local 528, was sentenced to three years probation, ordered to pay restitution in the amount of $7,000 and pay a special assessment fee of $100. Hilbish was also barred from holding union office for 13 years. From 2001-2002, Hilbish unlawfully obtained assets of Local 528 totaling $21,305. On October 20, 2006, Hilbish pled guilty to one count of embezzling union funds in the same amount. The sentencing follows a joint investigation by the OLMS Atlanta District Office and Tampa Resident Investigator Office and the Department of Labor’s Office of Inspector General.

On June 18, 2007, in the United States District Court for the Southern District of Illinois, Vicky Liefer, former Secretary-Treasurer of United Mine Workers Local 1458, was sentenced to three years probation and ordered to make restitution in the amount of $5,019. On March 1, 2007, Liefer pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS St. Louis District Office.

On June 15, 2007, in the United States District Court for the Western District of Washington, James F. Hill, former president of Fellow Associates Involved in Representation (FAIR), an independent union, was sentenced to four years probation, assessed a fee of $100, and ordered to make restitution to the union in the amount of $9,456. On March 12, 2007, Hill pled guilty to one count of embezzlement and theft of labor union assets. The sentencing follows an investigation by the OLMS Seattle District Office.

On June 13, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Klope, former Financial Secretary of Boilermakers Lodge 8-S, pled guilty to one count of embezzling union funds. On January 11, 2007, Klope was charged with embezzling union funds in the amount of $25,794. The plea follows an investigation by the OLMS St. Louis District Office.

On June 12, 2007, Lisa Oatman, former recording secretary of Carpenters Local 1594 in Wausau, WI was charged by the Marathon County, WI District Attorney’s Office with theft from Local 1594 in an amount greater than $2,500 but less than $5,000. The charge follows an investigation by the OLMS Milwaukee District Office.

On June 12, 2007, in the United States District Court for the Eastern District of Michigan, Linda Holden, former Financial Secretary-Treasurer of Steelworkers Local 639 (formerly PACE Local 6-639), was ordered to serve a two-year probationary sentence that includes 180 days of home confinement. Holden was also ordered to pay restitution in the amount of $74,090.09, a special assessment of $100, and to continue counseling. On August 29, 2006, Holden pled guilty to one count of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS Detroit District Office.

On June 12, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Hohlbauch, former Financial Secretary of AFSCME Local 3600, was sentenced to two years probation for willfully making false entries in financial records. On April 11, 2007, Hohlbauch pled guilty to making the false entries to conceal his embezzlement of $5,073 in union funds. The sentencing follows an investigation by the OLMS St. Louis District Office.

On June 11 and 12, 2007, in the United States District Court for the Eastern District of Pennsylvania, Lawrence Marable and Deborah Powell, former President and Treasurer, respectively, of AFGE Local1793, representing employees at the VA Medical Center in Philadelphia, both pled guilty to one count of conspiracy, five counts of theft of property in a special territorial jurisdiction of the United States, and one count of making a false statement. Marable and Powell conspired to convert dues checkoff checks and issue Local 1793 checks for their personal use totaling $184,129.85. The pleas follow an investigation by the OLMS Philadelphia District Office and the Department of Veterans Affairs Office of Inspector General.

On June 11, 2007, in the Logan County, Ohio Court of Common Pleas, an embezzlement investigation by the OLMS Cleveland District Office resulted in the subject entering into the Pre-Trial Diversion program. Under the terms of the Pre-Trial Diversion agreement the subject must pay costs of prosecution and complete a minimum of 18 months of supervised release. The subject made restitution prior to the agreement. Due to the confidential nature of the Pre-Trial Diversion program, details that could identify the subject are not public information.

On June 6, 2007, in the United States District Court for the Eastern District of Arkansas, Martin Hayes, former Secretary-Treasurer of Steelworkers Local 1671, was indicted on one count of embezzling union funds in the amount of $9,033.25. The indictment follows an investigation by the OLMS Dallas District Office.

On June 5, 2007, in the United States District Court for the Western District of Washington, James A. Pulsifer, a certified public accountant, was sentenced to 1 year probation and a $1000 fine for making a false representation of a material fact. In the course of making accounting adjustments, Pulsifer misclassified expenditures by approximately $500,000 when he prepared the Form LM-2 for the Seattle-based Society of Professional Engineering Employees in Aerospace (SPEEA). SPEEA officers who signed the report believed that it was free of errors and in compliance with Department of Labor regulations. On February 20, 2007, Pulsifer pled guilty to knowingly making a false statement or representation of a material fact in a report required to be filed with the United States Department of Labor. The sentencing follows an investigation by the OLMS Seattle District Office.

On June 5, 2007, in the United States District Court for the Northern District of West Virginia, Danny E. Beyser, former Financial Secretary of Mineworkers Local 1638, was charged with one count of embezzling union funds in the amount of $83,274.39. The charge follows an investigation by the OLMS Pittsburgh District Office.

On June 5, 2007, in the United States District Court for the Western District of Michigan, Brad Harper, former Treasurer of AFGE Local 1629, was indicted on three counts of making false reports. The charge follows an investigation by the OLMS Detroit District Office.[Related documents: HTML|PDF]

On June 4, 2007, in the United States District Court for the Southern District of Alabama, Kenneth H. Mays, former Treasurer of IBEW Local 1053, was sentenced to five years probation, ordered to pay a special assessment of $100, and ordered to pay restitution in the amount of $37,197. On January 16, 2007, Mays pled guilty to one count of embezzlement of labor organization funds. The sentencing follows an investigation by the OLMS Nashville District Office.

On May 31, 2007, in the United States District Court for the Northern District of Georgia, Kirk A. Tuttle, former Treasurer of the Professional Airline Flight Control Association – DELTA, was indicted on one count of embezzlement of labor union funds totaling approximately $172,846.16. The indictment follows an investigation by the OLMS Atlanta District Office.

On May 25, 2007, in Massachusetts Pittsfield District Court, Norman M. Haskins, former Treasurer of National Association of Government Employees (NAGE) Local 01-62, pled guilty to larceny over $250. Haskins was ordered to make restitution in the amount of $2,192 and pay an assessment of $50. The guilty plea follows an investigation by the OLMS Boston District Office.

On May 25, 2007, in the United States District Court for the Southern District of Texas, Charles “Chuck” Crawley, former President of Teamsters Local 988, was sentenced to 78 months in prison for embezzlement, mail fraud relating to a union election, and making false entries into the union’s records. Additionally, Crawley was ordered to pay restitution in the amount of $121,478. On December 8, 2006, Crawley was convicted of mail fraud arising from a scheme to defraud the local union members’ right to honest services by using the mail during an October 2002 union officer election. Crawley was also convicted of embezzling union property in the form of a ballot and address labels in connection with the election. In addition, he was convicted of arranging and accepting a $20,000 kickback from the installer of a telephone system into the union’s hall and of falsifying the voucher for the telephone installation. The sentencing follows a joint investigation by the OLMS New Orleans Office, the Department of Labor’s Office of the Inspector General, and the FBI.

On May 25, 2007, in the United States District Court for the Eastern District of Virginia, David Taylor, former Financial Secretary of Carpenters and Millwrights Local 1402, was sentenced to 12 months and 1 day in prison and fined $35,074.18. Taylor had previously paid full restitution to the union plus more than $14,000 in interest. On October 10, 2006, Taylor pled guilty to one count of making false statements on an LM report as part of a scheme to embezzle $72,422 from the union. The sentencing follows an investigation by the OLMS Washington District Office.

On May 25, 2007, in Superior Court for the District of Columbia, Quentin Womack, former Secretary-Treasurer of Service Employees International Union, Conference of Firemen and Oilers Local 1050, pled guilty to one count of second degree theft and was subsequently sentenced to 120 days suspended sentence, nine months of supervised probation and ordered to make restitution. On March 28, 2007, Womack was charged with one count of First Degree Theft for embezzling $3,326.80 from the union. The plea and sentencing follow an investigation by the OLMS Washington District Office.

On May 24, 2007, in the United States District Court for the Northern District of New York, James Russell, former Treasurer of Stage & Picture Operators Local 9, located in Syracuse, NY, was sentenced to five years probation, which includes six months of home confinement, and ordered to make restitution. On January 19, 2007, Russell pled guilty to one count of embezzling union funds in the amount of $54,776.65. The sentencing follows an investigation by the OLMS Buffalo District Office.

On May 24, 2007, in the United States District Court for the Northern District of California, Graham Paul Vane, President of the National Association of Letter Carriers Branch 1280, was indicted on one count of embezzlement of labor union funds totaling over $170,000 and four counts of making false statements to a Government Agency. The indictment follows an investigation by the OLMS San Francisco District Office.

On May 23, 2007, in the United States District Court for the District of Kansas, William Kendrick, former Treasurer of APWU Local 238, pled guilty to conspiring to embezzle union funds. Kendrick and Dwayne Giles, former Local 238 President, co-signed checks that allowed Kendrick to embezzle approximately $26,237 in union funds. On February 28, 2007, Kendrick was charged with one count of conspiring to embezzle union funds in the same amount. The guilty plea follows an investigation by the OLMS Kansas City Resident Office.

On May 23, 2007, in the County Court of Adams County, Colorado, William J Kohut, former Treasurer of Amalgamated Transit Union Local 1755, was charged with Theft (One Count), Identity Theft (One Count), Unauthorized Use of a Financial Transaction Device (One Count), and Forgery (One Count), in connection with his alleged conversion of union funds totaling $2,839.65. The charges follow an investigation by the OLMS Denver District Office.

On May 17, 2007, in the United States District Court for the Western District of Washington, Thomas R. Ehlis, former Financial Secretary of IBEW Local 1769, was charged with one count of embezzlement of union assets in the amount of $5,619.90. The charge follows an investigation by the OLMS Seattle District Office.

On May 15, 2007, in the United States District Court for the Eastern District of Michigan, Claudia R. Thompson, former President of PACE (now Steelworkers) Local 513, pled guilty to one count of willfully making false entries in financial records to conceal her embezzlement of $26,201 in union funds. The guilty plea follows an investigation by the OLMS Detroit District Office.

On May 14, 2007, in the United States District Court for the Central District of California, Janet Humphries, former President of SEIU Local 99, was sentenced to 5 years probation and ordered to perform 1,000 hours of community service. Additionally, Humphries was ordered to pay restitution in the amount of $5,149, and to pay a special assessment of $500. On November 13, 2006, Humphries pled guilty to one count of conspiracy and three counts of embezzlement for conspiring to finance Martin Ludlow’s campaign for Los Angeles City Council with Local 99 funds, and for using union funds to pay for a trip to the Virgin Islands for her daughters and a family friend. The conviction follows a joint investigation by the OLMS Los Angeles District Office, the Department of Labor’s Office of the Inspector General, and the Los Angeles City Ethics Commission.

On May 11, 2007, in the United States District Court for the Eastern District of Michigan, Alan Raines, former Financial Secretary of Steelworkers Local 1358 was charged with one count of embezzling union funds in the amount of $274,262.39, and one count of bank fraud. The charges follow an investigation by the OLMS Detroit District Office.[Related documents: HTML|PDF]

On May 9, 2007, in the United States District Court for the Western District of Pennsylvania, Stephen A. Kostelac, former Secretary-Treasurer of Boilermakers Local 906, was sentenced to six months home detention, five years probation, a $100 special assessment, and ordered to pay restitution in the amount of $26,079.38. On February 7, 2007, Kostelac pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS Pittsburgh District Office.

On May 9, 2007, in the United States District Court for the District of Maine, Catherine Crosier, former employee of the Maine Education Association, was sentenced to six months in federal prison, followed by three years of supervised release, and ordered to make restitution in the amount of $45,500. On November 27, 2006, Crosier pled guilty to one count of embezzling union funds in excess of $30,000. The sentencing follows an investigation by the OLMS Boston District Office.

On May 3, 2007, in the United States District Court for the District of Maryland, Walter Fisher, former Treasurer of United Transportation Union Local 1949, pled guilty to one count of embezzling more than $30,000, but less than $70,000, in union funds. The guilty plea follows an investigation by the OLMS Washington District Office.

On May 2, 2007, in the United States District Court for the Western District of Pennsylvania, an embezzlement investigation conducted by the OLMS Pittsburgh District Office resulted in the subject entering into a Pre-Trial Diversion Agreement. Under the terms of the Pre-Trial Diversion Agreement, the subject agreed to one year of court supervision, 150 hours of community service, and restitution. Due to the confidential nature of the Pre-Trial Diversion program, details that could identify the subject are not public information.

On April 30, 2007, in the United States District Court for the Southern District of Ohio, Dennis P. Harper, former Branch President and advocate of National Postal Mail Handlers Local 304, was sentenced to three years probation, including three months house arrest and ordered to make restitution of $2,543.10. On December 20, 2006, Harper was convicted of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS Cincinnati District Office.[Related documents: HTML|PDF]

On April 27, 2007 in the First Judicial District of Pennsylvania-Philadelphia County, Evelyn Lewis, former Secretary-Treasurer of RWDSU, Local 1034 in Philadelphia, was charged with Theft by Unlawful Taking (One Count), Theft by Deception (One Count), Failure to Make Required Disposition of Funds Received (One Count), Access Device Fraud (One Count) and Conspiracy (One Count), in connection with her alleged embezzlement of $10,265 in union funds. The charges follow an investigation by the OLMS Philadelphia District Office.

On April 26, 2007, an embezzlement investigation conducted by the OLMS Cincinnati District Office resulted in the subject entering into a Pre-Trial Diversion Agreement with Kentucky Commonwealth’s Attorney for the 38th Judicial Circuit. Due to the confidential nature of the Pre-Trial Diversion program, details that could identify the subject are not public information.

On April 25, 2007, in the United States District Court for the District of Oregon, Marlene Watson, former President of the Associated Field Representatives (AFR), was indicted on one count of embezzlement of labor union assets in the amount of $9,030 and one count of making a false statement in an annual financial disclosure report. The indictment follows an investigation by the OLMS Seattle District Office.

On April 24, 2007, in the Justice Court of Las Vegas Township for Clark County, Nevada, Tiffany Stone [aka Tiffany Huntsman], former dues clerk of Sheet Metal Workers Local 88, was sentenced to two years probation and ordered to pay restitution in the amount of $10,000. On February 21, 2007, Stone pled guilty to one count of theft of union funds in the amount of $10,540. The sentencing follows an investigation by the OLMS Las Vegas Resident Investigator Office and the Las Vegas Office of the Department of Labor’s Office of Inspector General.

On April 23, 2007 in the United States District Court for the Middle District of Pennsylvania, Thomas P. Obzut, former Secretary-Treasurer of Graphic Communications International Union (GCIU), Local 735S was sentenced to two years probation, the first six months to be served under house arrest, a $500 fine, a $100 special victim assessment, and psychiatric counseling as directed by the US Probation Department for gambling addiction. Obzut has made full restitution to the union. On November 30, 2006, Obzut pled guilty to one count of embezzlement of union funds in the amount of $21,099.17. The sentencing follows an investigation by the OLMS Philadelphia District Office.

On April 18, 2007, in the United States District Court for the District of Kansas, Kelli Tyrell-Moore, former employee of Kansas Nursing Association, was indicted on one count of embezzling union funds in the amount of $63,397.16. The indictment follows an investigation by the OLMS Kansas City Resident Investigative Office.[Related documents: HTML|PDF]

On April 18, 2007, in the United States District Court for the Northern District of Texas, Judy A. Thurman, former Treasurer of Federated Independent Texas Union, Local 900, in Fort Worth, Texas, was indicted on 13 counts of embezzling union funds totaling $44,462, and six counts of willful falsification of union records. The indictment follows an investigation by the OLMS Dallas District Office. [Related documents: HTML|PDF]

On April 18, 2007, in the United States District Court for the Eastern District of New York, Leonard Capozzoli, a member of Elevator Constructors Local One, was sentenced to three years probation, ordered to pay restitution in the amount of $75,216, and a $200 special assessment. On March 27, 2002, Capozzoli pled guilty to conspiracy to demand and receive unlawful labor payments, conspiracy to commit mail fraud, and conspiracy to defraud the United States. 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 April 17, 2007, in the Iowa District Court of Woodbury County, Marcia Dewey, former Secretary- Treasurer of AFGE Local 769, pled guilty to 2nd Degree Theft and was subsequently sentenced to a five year suspended sentence and placed on two years probation. On January 11, 2007, Dewey was charged with stealing union funds in the amount of $1,525. The conviction follows an investigation by the OLMS Kansas City Resident Investigator Office.

On April 10, 2007, in the Monroe County (Indiana) Circuit Court, Glenn Collins, former President/Business Manager of IBEW Local 2249, pled guilty to criminal conversion of union funds. Collins was fined $250 and ordered to pay restitution in the amount of $840. In addition, Collins agreed to a 13 year bar from holding union office or employment. The sentencing follows an investigation by the OLMS Cincinnati District Office.

On April 14, 2007 in the First Judicial District of Pennsylvania- Philadelphia County Court, Gerard Groom, former President of RWDSU, Local 1034 in Philadelphia was charged with Theft by Unlawful Taking (One Count), Theft by Deception (One Count), Failure to Make Required Disposition of Funds Received (One Count), Access Device Fraud (One Count) and Conspiracy (One Count), in connection with his alleged embezzlement of $13,040 in union funds. The charges follow an investigation by the OLMS Philadelphia District Office

On April 11, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Hohlbauch, former President of AFSCME Local 3600, pled guilty to one count of willfully making false entries in financial records to conceal his embezzlement of $5,073 in union funds. The guilty plea follows an investigation by the OLMS St. Louis District Office.

On April 6, 2007 in the United States District Court for the District of Alaska, Kathy Schurosky, former office manager for Carpenters Local 2520, was sentenced to six months probation and a special assessment of $25 for willfully making false entries in the financial records of a labor organization. Schurosky had previously made full restitution in the amount of $3,397.86. On April 5, 2006, Schurosky pled guilty to the misdemeanor offense of willfully making false entries in union financial records. The sentencing follows an investigation by the OLMS Seattle District Office.

On April 4, 2007 in the District Court of Wyandotte County, Kansas, a warrant was issued charging Carl Oliver, a former employee of the International Brotherhood of Boilermakers, with two counts of theft and one count of forgery associated with the loss of $4,432.67 in union funds. The charges follow an investigation by the OLMS Kansas City Resident Office and the Department of Labor’s Office of the Inspector General.

On April 4, 2007, in the United States District Court for the Western District of Oklahoma, Nathaniel Marc Greene, former President of AFGE Local 2562, pled guilty to one count of making a false statement. Greene admitted that he knowingly and willfully made or used a false writing or document and knew the local’s Form LM-3 contained a materially false statement or entry at the time he made or used the report. Restitution will be determined at sentencing which has not yet been scheduled. The plea agreement follows a joint investigation by the OLMS Dallas District Office and the Veterans Affairs’ Office of Inspector General. [Related documents: HTML| PDF]

On April 4, 2007, in the United States District Court for the Southern District of Ohio, Ronald Schweitzer, former President of PACE Local 1967, was indicted on one count of embezzling union funds in the amount of $58,305.30. The indictment follows an investigation by the OLMS Cincinnati District Office.[Related documents: HTML| PDF]

On April 3, 2007, in the United States District Court for the Eastern District of Texas, William I. Brown, former Business Manager of Plumbers Local 237 in Texarkana, Texas, was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. The indictment follows a joint investigation by the OLMS Dallas District Office, the Dallas Regional Office of the Department of Labor’s Employment Benefit Securities Administration and the Dallas Office of the Department of Labor’s Office of Inspector General. [Related documents: HTML| PDF]

On April 4, 2007 in Commonwealth of Pennsylvania, Montgomery County Court, Derek Baldwin, former President of the Workers Independent Union was sentenced to five years probation and ordered to pay $8,200 in restitution. Baldwin pled guilty to theft by failure to make required disposition of funds and securing execution of documents by deception. On August 14, 2006, a criminal complaint was filed against Baldwin charging him with theft by deception, tampering with records, forgery, and receipt of stolen property for his theft of $12,700 in union funds. The sentencing follows an investigation by the OLMS Philadelphia District Office.

On April 2, 2007, in the United States District Court for the District of Connecticut, Andrew Konspore, former Treasurer for Northeast Emergency Services Union, a labor organization representing paramedics and emergency medical technicians in New Haven, Connecticut, was sentenced to five months incarceration followed by three years of supervised probation. The first five months of the supervised probation will be under monitored home confinement. Konspore was also ordered to pay restitution in the amount of $91,605.39, and a special assessment of $100.00. On September 28, 2006, Konspore pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS New Haven Resident Investigator Office.

On April 2, 2007, in the United States District Court for the District of Puerto Rico, Jorge Aponte-Figueroa, President of International Longshoremen’s Association Local Union 1740, was found guilty of twelve counts of embezzlement, five counts of false reporting on LM reports, conspiracy, and money laundering. On July 19, 2005, Aponte-Figueroa was charged, among other counts, with conspiracy to embezzle union funds in excess of $1,950,000, falsely reporting the amount of dues paid to Local 1740 on Forms LM-2 and LM-3, and

Join the discussion 2 Comments

  • Scott Lilly says:

    Attack on Labor Department Report Misses the Point

    Does the Business Community Support Bureaucratic Thuggery?

    The question is not whether unions should be held accountable for how they handle dues money. Of course they should! Should the penalties for stealing union funds be tough enough to provide a serious deterrent to those who might be tempted to do so? Of course they should. That is not question being raised here.

    What is being asked is whether the same organizations that have made a forceful case for decades that excessive paper work demands by government bureaucrats are wasteful and often counterproductive will be willing to recognize the problem when it is a burden to someone besides themselves?

    Do large manufacturing corporations approve of using government regulatory authorities to punish political adversaries?

    Will they be willing to live by the same rules when politicians of a less friendly stripe gain control over executive branch agencies?

    The measures that have been adopted at the Labor Department with respect to disclosure and reporting by labor unions and their officials, employees and members do virtually nothing to increase transparency into union finances or reduce the likelihood that corrupt individuals will attempt to raid union coffers. They are crudely and ineptly drawn. They greatly add to the paperwork burden but provide little new or useful information to union members or outside watchdogs.

    Furthermore, the adversarial relationship that has been created between unions and departmental regulators reduces rather than increases the prospects that union members who suspect possible wrong doing within their union will turn to the Department for assistance. In short, the new rules as designed will work at cross-purposes to their supposed intent.

    There is one other issue that should disturb business leaders who have vision and integrity. The new conflict-of-interest reporting requirements scheduled to take effect in January will seriously penalize workers willing to serve on employer-sponsored safety and health committees. Dozens of top business executives, including former Treasury Secretary and former Alcoa CEO Paul O’Neill, have found that working with employees on these issues can not only reduce work days lost and production costs but can also provide a relationship that will lead to other gains in productivity. Poorly conceived and politically motivated policies at the Labor Department can harm businesses as well as unions.

    I might also add that in fact I did work for George McGovern for a period of ten months more than 35 years ago. I might also note that George McGovern was a member of the House of Representatives in 1959 when the Landrum Griffin Act was adopted and voted for its adoption. NAM might also remember that one of McGovern’s greatest challenges in his Presidential race in 1972 was that he was unable to win the support of the labor movement—in large part because he had sided with NAM and other business organizations in 1965 on legislation to repeal section 14b of the Taft Hartley Act.

    I don’t know exactly what that has to do with whether or not the current leadership at OLMS is doing a credible job. But since you raised it I thought you should be reminded of the history.

    Finally, another responder to this posting raised the question of why the Post had not disclosed the level of support provided to the Center for American Progress by labor unions. The amounts that he listed were approximately correct, which is to say that labor provides about 1 percent of the annual budget for CAP. Most of the rest comes from owners of businesses and the business community itself.

  • BBaker says:

    Fair enough… Let’s take a look at the wrongdoing the USDOL has found about employers…

    December

    U.S. Department of Labor obtains court order restoring assets to Huntersville, North Carolina-based trucking company’s profit-sharing plan [12/10/07]

    U.S. Labor Department obtains judgment leading to disbursement of 401(k) plan assets to workers in Auburn Hills, Michigan [12/06/07]

    U.S. Department of Labor secures $20,000 for participants of Delmont, Pennsylvania 401(k) plan [12/04/07]

    North Branford, Connecticut employer agrees to restore $30,000 to employee pension plan, settling U.S. Labor Department lawsuit [12/04/07]

    November

    Labor Department court order bars West Virginia investment advisor from providing service to employee benefit plans [11/29/07]

    U.S. Labor Department settlement resolves lawsuit over payment for administrative services by New Jersey union health plan [11/27/07]

    U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by Brooklyn, New York medical practice [11/27/07]

    U.S. Department of Labor sues defunct Telford, Pennsylvania company to protect participants of 401(k) plan [11/19/07]

    U.S. Labor Department obtains appointment of independent fiduciary for abandoned 401(k) plan of New York City company [11/14/07]

    U.S. Labor Department sues Minnesota business to distribute 401(k) retirement benefits to employees [11/05/07]

    October

    U.S. Labor Department testifies before House Ways and Means Committee on 401(k) fee disclosure [10/30/07]

    U.S. Labor Department obtains restitution for pension plans of defunct Tennessee company [10/29/07]

    U.S. Department of Labor sues defunct Edgewood, Maryland company to protect pension plan participants [10/22/07]

    U.S. Labor Department obtains appointment of independent fiduciary for abandoned 401(k) plan of Nashua, New Hampshire company [10/18/07]

    U.S. Labor Department sues to compel trustees to manage abandoned Warren, Rhode Island 401(k) plan [10/17/07]

    Connecticut employee benefit plan administrator and officers agree to distribute more than $337,000 to health plan clients to resolve U.S. Labor Department lawsuit – Company also to pay civil penalty of nearly $34,000 [10/16/07]

    U.S. Labor Department action clears way to distribute $60,000 in 401(k) assets to former employees of defunct Fremont, California hi-tech company [10/12/07]

    U.S. Labor Department sues former officer of Detroit business to restore funds to pension and profit-sharing plans [10/12/07]

    U.S. Labor Department obtains court order restoring assets to former Portland, Oregon retirement plan [10/11/07]

    U.S. Labor Department sues officer of Chicago healthcare group for failing to properly administer 401(k) plan [10/10/07]

    U.S. Labor Department obtains settlement to distribute 401(k) funds to former employees of Kropf Orchards and Appletree Farms [10/09/07]

    U.S. Labor Department obtains consent judgment requiring former trustees to pay more than $25,000 into Nashville, Tennessee-based union trust fund [10/02/07]

    U.S. Labor Department obtains consent judgment restoring more than $100,000 to Orlando, Florida-based ZHA Inc. 401(k) plan [10/01/07]

    U.S. Department of Labor sues to distribute 401(k) account assets of now defunct Troy, Michigan business [10/01/07]

    September

    U.S. Labor Department Sues Officers of Chicago Business to Restore Delinquent Contributions to Company’s Retirement Savings Plan [09/27/07]

    U.S. Department of Labor sues to distribute 401(k) assets to workers of bankrupt Iowa business [09/27/07]

    U.S. Labor Department reaches agreement restoring funds to Wixom, Michigan based 401(k) plan [09/19/07]

    U.S. Labor Department obtains judgments involving Southfield, Michigan business 401(k) and pension plan funds – More than $1 million in benefits to be disbursed to participants [09/11/07]

    U.S. Labor Department wins summary judgment against Framingham, Massachusetts, employer, requiring him to restore funds to company 401(k) plan [09/06/07]

    Executive of Tennessee company sentenced after pleading guilty to theft of 401(k) assets in case investigated by U.S. Labor Department [09/06/07]

    U.S. Labor Department obtains appointment of independent fiduciary for abandoned 401(k) plan of New York City company [09/05/07]

    August

    U.S. Department of Labor obtains consent order to restore more than $35,000 to 401(k) plan of Burlington, New Jersey company [08/27/07]

    U.S. Labor Department judgment orders attorney and fiduciaries of Standard Automotive 401(k) plan to restore $340,000 to New Jersey plan [08/27/07]

    U.S. Labor Department obtains judgment restoring more than $600,000 to profit-sharing plan of Orlando, Florida manufacturer [08/27/07]

    U.S. Labor Department obtains court order restoring assets to Charlotte, North Carolina based Federal Textile Engravers profit-sharing plan [08/24/07]

    U.S. Labor Department obtains settlement appointing independent fiduciary to manage pension plan of Cleveland-based Polytech Inc. – Suit involving mismanagement of employee 401(k) funds resolved [08/23/07]

    U.S. Labor Department sues officer of Mequon, Wisconsin, travel service to recover contributions to company 401(k) plan [08/21/07]

    U.S. Labor Department resolves unpaid health claims of participants covered by Mississippi State Medical Association plan [08/16/07]

    U.S. Labor Department action clears way to distribute $900,000 in 401(k) assets to former employees of South Bay company [08/15/07]

    U.S. Labor Department sues Salem, Massachusetts construction company and master pension plan sponsor in Texas, alleging violations of federal pension law [08/15/07]

    Charlotte, North Carolina, Norcom Development restores more than $85,000 to profit-sharing plan following U.S. Labor Department investigation [08/14/07]

    U.S. Labor Department actions recover more than $90,000 from Cleveland business executive for retirement savings plan contributions [08/10/07]

    U.S. Labor Department sues officers of Port Huron, Michigan, business to recover contributions to company 401(k) plan [08/06/07]

    U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by Morrow, Georgia automotive repair company [08/03/07]

    July

    U.S. Labor Department obtains appointment of independent fiduciary for abandoned Mineola, New York, 401(k) plan [07/26/07]

    U.S. Labor Department sues president of MED-XS Solutions Inc. to recover delinquent contributions to company 401(k) plan [07/26/07]

    U.S. Labor Department obtains judgment restoring $300,000 to Buffalo pension plans [07/19/07]

    U.S. Labor Department action restores funds to San Luis Obispo 401(k) fund – Local business owners agree to repay funds owed to 16 plan participants [07/19/07]

    U.S. Labor Department sues to recover assets for former Birmingham, Alabama, company’s 401(k) plan [07/16/07]

    U.S. Labor Department obtains judgment to recover nearly $1.2 million for Miami-based employee retirement plan [07/10/07]

    U.S. Labor Department secures 401(k) plan assets for former Rycor Fabrication employees in Dayton, Ohio [07/09/07]

    U.S. Department of Labor sues owner of north suburban Chicago business for failing to forward health care payments to insurer [07/06/07]

    Labor Department settlement resolves lawsuit over mismanagement of South Carolina employee stock ownership plans [07/05/07]

    U.S. Labor Department sues trustee of Parma, Ohio hair salon’s 401(k) plan to recover missing assets [07/05/07]

    U.S. Labor Department obtains court order requiring Chatsworth, Georgia, trucking company to pay unpaid health claims [07/03/07]

    June

    U.S. Department of Labor sues defunct Sparks, Maryland, company to protect health plan participants [06/29/07]

    U.S. Labor Department sues president of TSS Fabricating for mismanagement of $70,000 contributed to employee IRA plan [06/28/07]

    U.S. Labor Department obtains judgment to restore assets to Sandusky, Ohio-based pension plan [06/28/07]

    U.S. Labor Department obtains judgment seeking restoration of more than $50,000 for participants of Phoenix 401(k) plan [06/13/07]

    U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by New York City company [06/13/07]

    U.S. Labor Department Sues to Appoint Independent Fiduciary For 401(k) Plan Abandoned by Batavia, New York Company [06/12/07]

    U.S. Labor Department Sues to Appoint Independent Fiduciary For 401(k) Plan Abandoned by New York City Company [06/11/07]

    U.S. Labor Department lawsuit compels New Britain, Connecticut, company repayment of $2.1 million to retirement plan [06/05/07]

    U.S. Labor Department secures pension funds for former Intrenet Inc. workers in Milford, Ohio [06/04/07]

    U.S. Labor Department sues North Carolina company to restore delinquent contributions to SIMPLE IRA plan [06/01/07]

    U.S. Labor Department settles lawsuit with Tampa, Florida-based MACH Americas regarding abandoned 401(k) plan [06/01/07]

    May

    U.S. Labor Department obtains independent fiduciary to oversee Texas health benefit plan – Claims of individuals in Arizona, Georgia, Illinois, Texas, other states to be paid [05/31/07]

    U.S. Labor Department obtains default judgment against Michigan Pumping Service fiduciary for failing to properly administer savings plan [05/24/07]

    U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by Denver-area employer [05/22/07]

    U.S. Labor Department sues to protect employee retirement assets of Southern California workers [05/17/07]

    U.S. Department of Labor obtains consent order for restoration of more than $26,000 to 401(k) plan of defunct East Bay company [05/15/07]

    U.S. Labor Department obtains consent judgment restoring assets to Pennsylvania 401(k) profit-sharing plan [05/01/07]

    April

    U.S. Labor Department sues to protect 401(k) funds of Oxnard, California, aquarium supply company [04/30/07]

    U.S. Labor Department recovers nearly $63,000 for participants of Washington, D.C., pension and profit-sharing plans [04/27/07]

    U.S. Labor Department sues officers of Jackson, Mich., business to restore delinquent contributions to company’s SIMPLE IRA plan [04/25/07]

    U.S. Labor Department sues officers of Sheboygan, Wis., business to restore delinquent contributions to company’s profit-sharing plan [04/24/07]

    U.S. Labor Department obtains federal court order appointing independent fiduciary for abandoned 401(k) plan of Bronx, N.Y., employer [04/17/07]

    U.S. Labor Department sues Dayton, Ohio, business and former vice president for failing to properly administer 401(k) plan [04/12/07]

    U.S. Labor Department secures independent fiduciary for abandoned Baltimore retirement savings plan [04/04/07]

    Labor Department Obtains $5 Million Court Order to Restore Tennessee Company’s Pension Funds [04/03/07]

    U.S. Labor Department recovers more than $2 million to pay New Jersey benefit plan health claims [04/02/07]

    U.S. Labor Department obtains settlement with Lansing, Michigan, business officers to restore 401(k) assets [04/02/07]

    U.S. Labor Department obtains court order requiring Harris N.A. to pay $274,600 for unpaid health claims [04/02/07]

    March

    U.S. Labor Department sues Waitsfield, Vermont, executive to recover delinquent employee contributions for SIMPLE IRA [03/28/07]

    U.S. Labor Department sues trustee of Southfield, Michigan, 401(k) and pension plans for mismanagement – More than $1 million at stake [03/28/07]

    U.S. Labor Department sues officers of Powell, Ohio, business for improper administration of 401(k) plan [03/27/07]

    U.S. Labor Department obtains appointment of independent trustee for abandoned 401(k) plan [03/27/07]

    U.S. Labor Department seeks independent fiduciary to manage Denver 401(k) plan, recovery of employee contributions [03/27/07]

    U.S. Labor Department obtains consent order shutting down ‘sham’ health care fund based in California [03/26/07]

    U.S. Labor Department sues Georgia health provider and affiliates over mismanagement of plan assets [03/22/07]

    U.S. Labor Department obtains consent judgment restoring more than $102,000 to Maitland, Florida, 401(k) plan [03/19/07]

    U.S. Labor Department settles with plan officials over mismanagement of Jefferson, Georgia, company employee benefits plan [03/15/07]

    U.S. Labor Department lawsuits seek appointment of independent fiduciary for abandoned Dayton, Tennessee, profit-sharing plans [03/14/07]

    U.S. Labor Department Sues Cleveland Business Executive to Restore Delinquent Contributions to Company’s Retirement Savings Plan [03/09/07]

    U.S. Labor Department Sues Former Officer of Wixom, Michigan, Business to Restore Delinquent Contributions to 401(k) Plan [03/09/07]

    U.S. Labor Department sues Charlotte, North Carolina, corporation and president to recover more than $69,000 in 401(k) plan assets [03/09/07]

    February

    Dumfries, Virginia Company Ordered to Restore more than $32,000 to 401(k) Profit Sharing Plan after U.S. Labor Department Investigation [02/15/07]

    U.S. Labor Department Obtains Court Order Appointing Independent Fiduciary to Manage Pension Plan of Defunct Florida Firm [02/12/07]

    U.S. Labor Department Obtains Court Order Appointing Independent Fiduciary to Manage Mississippi Company’s Retirement Plan [02/12/07]

    U.S. Labor Department Obtains Consent Judgment with Duluth, Minnesota Business Officer Regarding Employee Stock Ownership Plan [02/12/07]

    U.S. Labor Department Sues Miami Company and President to Recover $1.5 Million in Retirement Plan Assets [02/07/07]

    U.S. Labor Department Sues to Protect 401(k) Funds of Bay Area Workers [02/06/07]

    U.S. Labor Department Sues to Appoint Independent Fiduciary For Retirement Plan Abandoned by Bronx, New York Employer [02/06/07]

    Employee Benefits Security Administration Releases Field Assistance Bulletin on Investment Advice [02/02/07]

    January

    U.S. Labor Department Sues East Walpole, Massachusetts, Company and President to Recover Employer Contributions to Retirement Plan [01/29/07]

    U.S. Labor Department Sues New Britain, Connecticut Company and its President to Recover Misused Assets of Employee Benefit Plan [01/25/07]

    Trustee to Restore Nearly $77,200 to Bay Area Pension Plan following Investigation by U.S. Department of Labor [01/25/07]

    U.S. Labor Department Sues to Restore Assets Owed to SIMPLE IRA Plan of Former Newberry, South Carolina, Company [01/25/07]

    Corona Web Design Firm Agrees To Repay Employees’ 401(K) Funds [01/22/07]

    U.S. Labor Department Sues Ohio Doctor to Restore Funds to Employee’s Retirement Plan [01/17/07]

    U.S. Labor Department Obtains Appointment of Independent Fiduciary To Manage Illinois Company’s 401(k) Plan [01/11/07]

    U.S. Labor Department Sues Pennsylvania Company Over Pension Plan Violations [01/10/07]

    U.S. Labor Department Obtains Court Order Restoring Assets to Former Lexington, Kentucky, Company’s SIMPLE IRA Plan [01/09/07]

    U.S. Department of Labor Sues Washington Company and President to Restore Employee Contributions to Retirement Plan [01/08/07]

    U.S. Labor Department Sponsors Free Compliance Assistance Seminar for Retirement Plan Fiduciaries in New Jersey [01/08/07]

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