Iowa Officials Sentenced for Embezzlement

Two frmr. union officials have been sentenced for working together to embezzle more than $120,000 between them from Des Moines Local 177 of the Laborers Intl. Union of N. Amer.  On Feb. 28, frmr. president Fred T. Risius and ex-VP Henry Jannenga were sentenced, followed by local member Norval Craig Michael on March 6.

Risius was sentenced to 15 mos. in prison, followed by three yrs. of supervised release, and was ordered to repay the union for the $100,000 he embezzled from Local 177 through payments to, and kickbacks from, a phony construction firm, payments to fictitious picketers, and personal purchases on the union credit card.

Jannenga received three months in prison, and was ordered to repay the $22,500 he embezzled from the Iowa State Laborers’ Training Fund.  Michael was sentenced to five yrs. probation, and was ordered to join with Risius in repaying $16,900 he received from Risius, ostensibly for materials Michael sold to the union but which he and Risius split between themselves. [U.S. Ofc of Labor-Mgmt. Standards 3/13/03]