For more than four years, Grace Rathke treated union revenues as though they were intended for her. Now she may have to pay a high price. Rathke, former office manager for Laborers International Union of North America Local 32, was indicted by a Rockford, Illinois federal grand jury on August 2 on 10 counts of embezzlement totaling about $200,000 from the Rockford union. Prosecutors allege Rathke, 55, a resident of Loves Park, Ill., during November 2004-March 2009 diverted dues and fees payments to her own account rather than deposit them in a union account. If convicted, Rathke faces a prison sentence of up to five years and a fine of up to $250,000 for each count. The indictment follows a joint probe by the Labor Department’s Office of Inspector General and Office of Labor-Management Standards.
