AFGE President in Alaska Indicted for Embezzlement

Alaska railroadJeffrey Davies ran a railroad workers union. His union brothers probably wish he would take a one-way trip to somewhere else. On December 16, Davies, former president of American Federation of Government Employees Local 183, was indicted in U.S. District Court for the District of Alaska on one count of embezzlement in excess of $100,000 in funds from the Anchorage-based union. Though members are not government agency employees, their employer is the Alaska Railroad, a corporation owned by the State of Alaska. This status has enabled the union to affiliate with the AFGE. The indictment follows a joint investigation by the FBI and the U.S. Labor Department’s Office of Labor-Management Standards.

Prosecutors allege that during 2011-14, Davies, 41, a resident of Wasilla, used his position to steal more than $100,000 through cash withdrawals, checks and a union-issued debit card. The affidavit did not provide further details about how much was stolen or when. The defendant faces up to five years in prison and a $250,000 fine. Assistant U.S. Attorney Kevin Feldis put it this way: “The charges in this case are a good reminder to all organizations that they should have processes in place to safeguard against potential theft and misuse of funds, including performing regular internal audits and requiring multiple officials to be involved in financial oversight.”