John McKay, United States Attorney for the Western District of Washington, and John Heaney, District Director, United States Department of Labor, Office of Labor-Management Standards in Seattle, announced that on July 12, 2000, David Rux, a former Business Representative of Woodworkers Local Lodge W2 in Aberdeen, Washington, pled guilty to 7 felony counts of Union Embezzlement under U.S.C. 29, 501(c), and 15 counts of Falsification of Union Financial Records under U.S.C., 439(c). Now living in Veguita, NM, Rux will be sentenced on October 15, by U.S. Dist. Judge William Johnson (G.W. Bush) in Albuquerque. For each of the 7 counts of embezzlement, Rux faces a maximum of 5 years in prison, $10,000 in fines, and 3 years of supervised release following imprisonment. He also faces a maximum penalty of 1 year in prison, up to $10,000 in fines, and 1 year of supervised release for each of count of Falsification.
According to court records, Rux was the Business Representative of the Woodworkers Local, which is affiliated with the International Association of Machinists, from May 1992 to December 22, 2000. Beginning in March 1997, Rux embezzled $21,557 by 1) submitting false vouchers for mileage and other expenses related to attending union meetings, then forging the Lodge President’s name on checks payable to Rux, ostensibly as reimbursements: 2) preparing Lodge W2 checks made payable to others and again, forging the Lodge W2 president’s name on the checks: 3) using the Lodge’s credit card for his personal benefit; and 4) creating false entries and alterations of Local W2 checks and the check register to conceal the checks that he made payable to himself and his personal credit card charges.
A federal grand jury in Seattle indicted Rux on March 27, 2002 after an investigation by the U.S. Labor Dept. in Seattle. Rux and federal prosecutors agreed to move the case to New Mexico for his guilty plea and sentencing. Rux has agreed to not hold a union position for 13 years, and has made full restitution to Lodge W2. [U.S.A.O. W.D. WA, DOL]