On October 5, in the U.S. Dist. Court for the Dist. of Columbia, Francis Massey, former partner in the accounting firm of Thomas Havey LLP, was sentenced to six months home detention by electronic monitoring, two years supervised probation, and 100 hours of community service. In addition, Massey was ordered to pay a $30,000 fine and restitution to the U.S. Office of Labor-Mgmt. Standards (OLMS) in the amount of $5,000. His sentence was reduced due to his assistance in the ongoing investigation of the Intl. Assn. of Iron Workers union. On August 22, 2002, Massey pled guilty to one count of aiding and abetting a conspiracy to make false statements and to defraud the Government and the union.
Also on October 5, Alfred Garappolo, former partner in the accounting firm of Thomas Havey LLP, was sentenced to two years supervised probation and 100 hours of community service for being an accessory after the fact to embezzlement from an employee welfare benefit plan and concealing and covering up a material fact in a Dept. of Labor matter. He was ordered to pay a $15,000 fine and restitution to OLMS in the amount of $2,500. Garappolo’s sentence was reduced due to his assistance in the ongoing investigation of the Iron Workers Union. Garappolo pled guilty on June 2, 2002.
Both admitted that they helped the hierarchy of the union, including ex-President Jake West, cover up more than a million dollars in personal spending on the union’s account. The two accountants did this by falsely claiming that these dining and entertainment costs were office, then education expenses on the union’s LM-2 financial disclosure form filed with the Labor dept. The guilty pleas and sentences follow a joint investigation by the OLMS Washington Dist. Office, the FBI, the Department of Labor’s Employee Benefits Security Admin., and the U.S. Attorney’s Office for the Dist. of Columbia. [OLMS, 10/27]