Am. Fed. of Gov’t Employees Local 507’s ex-president Diana M. Morgan was indicted Aug. 19 on federal mail fraud charges after investigators accused her of embezzling $40,000 worth of union dues for her personal use from Nov. 1996 to Jan. 1999. The indictment said the boss wrote a series of checks for $28,400 to herself and eight checks for $2,780 to her teenage daughter. She also reportedly made $1,770 in ATM withdrawals. It also said she used union funds to pay personal creditors, including her rent, a personal loan and car payments. She also reportedly bought $610 worth of Disney World tickets with a union check.
As president, Morgan had full check-signing power for accounts that held dues for Local 507 in Riviera Beach, Fla. Morgan left her union post and her $28,798-a-year lab technician job at a Veterans Admin. Medical Center in Mar. Asst. U.S. Attorney Bruce Reinhart said he chose the mail fraud charge because a suitable federal embezzlement charge didn’t exist. The boss was released on a $50,000 bond. [Sun-Sentinel & Palm Beach Post 8/20/99]