2 Plead Guilty to AFSCME Embezzlement Scheme

Two union bosses of the American Fed. of State, County & Municipal Employees pled guilty Jul. 23 to embezzlement charges, admitting to stealing over $830,000 from union coffers. From 1991 to 1996, Thomas W. Waters and Barbara T. Wood embezzled funds while employees at AFSCME’s District Council 20 which represents 6,700 employees from the Washington, D.C. government, American Red Cross & Howard University Hospital. According to the U.S. Attorney’s Office, Waters opened a secret bank account in the union’s name and had dues checks deposited into the account. Then both used the unions members’ money for personal expenses. They also took money from another AFSCME account. Waters, Council 20’s secretary-treasurer, admitted taking more than $761,000 and faces a 3-year prison term. A U.S. District Court Judge ordered Waters jailed immediately after his guilty plea, saying he was a danger to the community. Wood, the finance director, admitted taking $73,500 and faces up to 18-months in prison. [Washington Post 07/24/98]