A federal grand jury indicted Angela B. Smith of New Bern, N.C., Mar. 20 on two counts of union embezzlement. Smith was the secretary-treasurer of the Paper, Allied-Indus., Chem. & Energy Workers Int’l Union Local 1325 (f.k.a., United Paperworkers Int’l Union Local 1325). From Jan. 1997 to Jan. 1999, Smith allegedly embezzled $4,374.95 from UPIU Local 1325 by issuing checks to herself and third parties for her personal expenses. Further, she allegedly stole $150 from PACE Local 1325 in Dec. 1999 by again issuing a check to a third party for her personal expenses. [USAO E.D.N.C., Media Release 3/22/01; U.S. v. Smith, No. 4:01-CR-14-1H3 (E.D.N.C. indictment 3/20/01)]
Hawaiian Boss, Daughter, Accused of Embezzlement
A federal grand jury returned a 43-count indictment Mar. 7 against Gary W. Rodrigues and Robin H. Sabatini alleging fraud, embezzlement, and money laundering in connection with two United Public Workers’ funds. The indictment charges that Rodrigues, Hawaii state director of the UPW and Sabatini, his daughter, devised a scheme to defraud UPW and its members of money paid out of UPW accounts for dental benefits and another scheme to defraud a UPW health benefit program. Further, it alleges that Rodrigues embezzled UPW funds by causing UPW to pay premiums not required to be paid for dental benefits. Finally, it accuses Rodrigues and Sabatini of laundering proceeds from the health benefit program fraud and embezzlement. The amounts were not disclosed.
U.S. Atty. Steven S. Alm said that according to the indictment, the schemes sought to defraud UPW. Rodrigues allegedly failed to disclose that UPW premiums for dental benefits were in excess of those required and were inflated to include consulting fee negotiated by him, which he directed first to pay off a personal loan and then to a firm incorporated by Sabatini. Rodrigues also allegedly failed to disclose to the UPW bd. and membership that he negotiated a consulting fee to be paid to Sabatini’s firm in connection with a UPW contract for medical benefits. [USAO D. Haw., Media Release 3/7/01]