According to an affidavit for a search warrant, a frmr. union employee is suspected of stealing $220,000 from the union’s trust fund. According to the affidavit, the woman admitted taking $220,000 from the Northwest Sheet Metal Organizational Trust, purportedly to help her husband’s struggling company. The frmr. employee told Monroe police that she would repay the trust from a $1 million lottery payoff. But acc. to the Washington State Lottery Commission, there is no outstanding payment of $1 million, and the woman’s name is not on its list of prize winners. Trust Attny. Greg Petrie does not expect the ex-employee to repay the money, but that the trust is insured for theft by employees. [Seattle Times, 5/23/03]
W.Va. Woman Sentenced for Embezzlement
On June 2, U.S. Dist. Judge Joseph R. Goodwin (S. Dist. WVa., Clinton) sentenced Julia Mynes to six months in prison, and ordered her repay the $4,000 she stole from Local 14614 of the United Steel Wrkrs. Between Dec. 2000 and Jan. 2001, the computer specialist used her access to the union’s computerized check-writing system to cash union checks for her personal benefit. [WTAP, 6/2/03]
Ohio Official Not Quite Out of Woods in Contempt Proceeding
On May 13, in the U.S. Dist. Ct. for the Southern Dist. of Ohio, James E. Miller, treasurer of Flint Glass Workers Local 144, in Lancaster, Ohio, appeared following his arrest by the U.S. Marshals Service. Miller was arrested pursuant to an April 23, 2003 Order finding him to be in contempt of court for failure to comply with a subpoena.
Though an agent from the U.S. Ofc. of Labor-Mgmt. Standards found the documents produced by Miller to be generally responsive to the subpoena, it was determined that deposit slips, cancelled checks, and bank statements for the year 2002 were missing. Miller has been ordered to appear before the U.S. Attorney in Columbus, Ohio, on or before May 30, 2003, to deliver the aforementioned records. The subpoena was issued as part of an ongoing investigation by the Cleveland branch of the OLMS. [OLMS, 6/4/03]
Convicted Hawaii Boss Gets Sentencing Put Off
Claiming they need time for research, new lawyers for convicted ex-union chief Gary Rodrigues and his daughter won a four-month reprieve in his sentencing. U.S. Dist. Judge David Ezra (HI, Reagan) granted the reprieve and rescheduled their sentencing for Sept. 29. Meanwhile, another lawyer for Rodrigues argued that he shouldn’t be jailed now despite being convicted on 100 counts of fraud and embezzlement on Nov. 19, 2002.
Once known as Hawaii’s “26th Senator,” the frmr. state director of the United Public Wrks. union was found guilty of using the govt. union members’ dues for his benefit, as well as for family and friends. After Rodrigues continued to exercise influence over the statewide union, officials from the Washington, D.C. headquarters of the Amer. Fedtn. of State, County & Municipal Employees (AFSCME) suspended him on Nov. 22. [Honolulu Advertiser, 6/3/03]
Ex-Union Warden Sentenced for Role in Multi-Million$ Fraud Scheme in NYC
On May 27, in the U.S. Dist. Court for the Eastern Dist. of New York, Terrance Carr, former warden of Elevator Constructors Local One, was sentenced to two years probation and 100 hours of community service. He was ordered to pay a total of $6,225.34 in restitution and $2,100 in assessments. He had pled guilty on March 10, 2003 to a superceding information charging him with making false statements in violation of 18 USC 1001. The charges had been brought following a joint investigation by the New York branch of the U.S. Ofc. of Labor-Mgmt. Standards, the Employee Benefits Security Administration, the FBI, and the IRS. For a full report of the scheme Carr played a part in, please go to http://www.nlpc.org/olap/ucu3/05_04_02.htm. [OLMS, 6/4/03]
Ex-Secy.-Treasurer Sentenced in IL Federal Court
On May 21, in the U.S. Dist. Court for the Northern Dist. of Illinois, John O’Connell, frmr. Secy.-Treasurer of Machinists Local Lodge 524, was sentenced to five months incarceration, five months home confinement with electronic monitoring, 24 months of supervised release, and ordered to pay $36,702 in restitution, plus a $100 special assessment. O’Connell pled guilty to embezzling $36,702 in union funds on February 13, 2003, following an investigation by the Chicago branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS, 6/4/03]
Former President Indicted for Embezzlement in Michigan Federal Court
On May 21, 2003, in the United States District Court for the Western District of Michigan, Robert E. Nick, former president of Paper, Allied Industrial, Chemical and Atomic Workers Local 6-921 in Lansing, Michigan, was indicted for both embezzling $3,525 in union funds and failing to maintain required records. The charges were brought following an investigation by the Detroit branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS, 6/4/03]
Ex-Missouri Secy.-Treasurer Confesses to Embezzlement
On May 7, 2003, in the U.S. Dist. Court for the Eastern Dist. of Missouri, Steve Floyd, frmr. secy.-treasurer of the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) Local 05-152, pled guilty to one count of embezzling union funds. Floyd, who was indicted on March 13, 2003, admitted to embezzling approximately $27,000 in union funds by writing checks to both himself and others that were not authorized and were for his personal benefit. The charges were brought following an investigation by the St. Louis branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS, 5/27/03]
Ex-President Charged with Theft in California State Court
On May 15, in the San Bernardino (California) Superior Court, a Felony Criminal Complaint was filed charging Gerard Davis, former president of Local 1227 of the Amer. Fedtn. of Govt. Employees, with one count of Grand Theft by Embezzlement following an investigation by the Los Angeles branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS, 5/27/03]
Ex-Louisiana Treasurer Sentenced in Federal Court
On May 15, in the U.S. Dist. Court for the Western Dist. of Louisiana, Norma J. Reedy, former treasurer of the Louisiana American Postal Workers Union, was sentenced to 60 months of supervised release and ordered to pay $30,000 in restitution plus a $100 special assessment. Reedy pled guilty to embezzling $34,800 in union funds on January 23, 2003, following an investigation by the New Orleans branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS, 5/27/03]
Former Employee Indicted for Embezzlement in California Federal Court
On May 13, in the U.S. Dist. Court for the Northern Dist. of California, Adela Tongson, former employee of Service Employees Intl. Union, Local 250, was indicted on two counts of embezzling a total of $100,000 in union funds on Nov. 29 and 30. The charges were brought following a joint investigation by the San Francisco Orleans branch of the U.S. Ofc. of Labor-Mgmt. Standards and the FBI. [OLMS, 5/27/03: U.S.A.O. N.D. CA, 3/13/03]
Member Sentnced in Iowa Fed. Court for Role in Embezzlement Scheme
On May 9, in the U.S. Dist. Court for the Southern Dist. of Iowa, Clyde Starkey, former member of Local 177 of the Laborers Intl. Union of N. Amer., was sentenced to six months imprisonment, three years probation, and ordered to make restitution of $28,905. Starkey was indicted on November 20, 2002; and on January 16, 2003, he pled guilty to conspiring to embezzle union funds.
Specifically, Starkey received and cashed $28,905 in union checks (to which he had no legitimate claim) and returned a portion of the proceeds to former Local 177 Business Manager Fred Risius. Risius is currently serving fifteen months in the penitentiary for embezzling in excess of $100,000 from the local. The charges were brought following an investigation by the St. Louis branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS, 5/27/03]
DOL Files Complaint against California Union Bosses for Denial of Democratic Rights
On May 22, a complaint was filed in the U.S. Dist. Court for the Central Dist. of California against Local 47 of the International Bhd. of Electrical Workers. The DOL investigation of the local’s election of officers that concluded on July 8, 2002 disclosed that section 401(e) of the LMRDA was violated when three members were improperly denied the right to run for office. The complaint seeks a new election under the supervision of the U.S. Ofc. of Labor-Mgmt. Standards for the offices of business manager/financial secretary and executive board/Basin West. [OLMS, 6/4/03]