The Fed. Govt. investigation of extortion and embezzlement by the hierarchy of Intl. Bhd. of Teamsters Local 25 won its first conviction on July 1. John J. “Mick” Murray, a Local 25 member and alleged associate of fugitive organized crime boss James “Whitey” Bulger, confessed that he plotted to steal up to $1 million worth of computer equipment and guns with the help of Teamster drivers working for United Parcel Service. He also confessed to exerting influence over frmr Local 25 President George Cashman to help him receive fraudulent health benefits from Local 25’s insurance plan. Murray alone took in some $35,000 in undeserved health care benefits.
Perhaps, most heinous of all, acc. to Asst. U.S. Attny. Fred Wyshak, Murray participated in a terrifying extortion scheme with Bulger lieutenant Kevin Weeks in 1994, when they hauled a bookie named Kevin Hayes into a South Boston basement for a lesson in … Read More ➡
Seven individuals identified as either reputed associates of the N.Y.-based Genovese organized crime family and/or current and former bosses of the Int’l Longshoreman’s Ass’n Local 1588 in Bayonne, N.J., were arrested Mar. 7 by state and local law enforcement on charges related to a “money for work” shake-down of dock workers at Jersey City’s Global Terminal, a large Chinese-owned center where cargo containers of imported merchandise, including appliances, perfume, televisions, and liquor, are unloaded. The early morning arrests reportedly signal the “opening salvo of a sweeping investigation” targeting union corruption and organized crime influence on the N.J. waterfront.
The probe, called “Operation Shout,” focuses on allegations that union bosses and Genovese associates demanded kickbacks from dozens of union members in return for prime job assignments, training for higher paying jobs, and overtime assignments. Prime jobs, earning $100,000 or more, include operating cranes or stackers that hoist containers aboard ships. Officials … Read More ➡
According to politicalmoneyline.com, several int’l unions have failed to file their basic financial disclosure reports (LM-2) with the Dep’t of Labor. These include five unions: the Int’l Ass’n of Asbestos Workers, Int’l Longshoremen’s & Warehousemen Union, Bhd. of Maintenance of Way Employees, Am. Fed’n of Musicians, and Union of Needletrades, Industrial & Textile Employees. [politicalmoneyline.com 10/19/01]
New Mexico Boss Admits Bogus Recordkeeping
On Oct. 3, in the U.S. Dist. Court for the Dist. of New Mexico, Ygnacio Angel, ex-president of Am. Postal Workers Union Local 402, pled guilty to an information charging him with false recordkeeping in violation federal labor law. [Dep’t of Labor 10/3/01]
Pennsylvania Staffer Charged with Theft
On Feb. 28, the Dist. Atty. of Armstrong County (Pa.) charged Gail McGranahan, an ex-staffer of Mine Workers Local 1378, with 20 counts of forgery and 20 counts of theft and is seeking $6,610 in restitution to the union. [Dep’t … Read More ➡
The perjury and false statements trial of expelled Int’l Bhd. of Teamsters boss Ron Carey began Aug. 28. He allegedly lied about matters in several complex schemes in which $885,000 of IBT funds were embezzled and some $538,000 was wrongfully funneled into his failed 1996 campaign. Five others have pled guilty and one has been convicted in the scandal. Carey faces up to thirty-five years in prison. U.S. Dist. Judge Robert L. Carter (S.D.N.Y., Nixon) said at jury selection on Aug. 27 that the trial is expected to last three weeks.
Asst. U.S. Atty. Deborah A. Landis is trying the case with Andrew Dember, chief of U.S. Atty. Mary Jo White’s Public Corruption Unit. Landis told the jury in opening arguments that Carey lied sixty-three times in six months to investigators and a grand jury. Landis also said that Carey knew about a scheme to raise campaign funds from AFSCME, … Read More ➡
The Communications Workers of Am. and Verizon Communications face a federal prosecution for allegedly illegally seizing some $150,000 in forced union dues from employees following a 2000 strike. Agreeing with arguments presented by Nat’l Right to Work Legal Def. Found. attorneys, the Nat’l Labor Relations Bd. issued the federal complaint after employees Kenneth Olszewski and Nancy Simms of Md. filed unfair labor practice charges on behalf of thousands of employees in 2000.
They filed the charges after Verizon helped CWA bosses collect dues for a one month period (Sept. 2000) following the strike in which no collective bargaining contract was in place. When no such forced-fee agreement is in effect, bosses can’t compel the payment of any dues from employees who exercise their right not to join a union.
NRTW estimates that CWA illegally seized a total of $150,000 from about 3,000 employees who chose to refrain from CWA membership. … Read More ➡
Dennis Rivera, boss of Serv. Employees Int’l Union Local 1199 in N.Y.C., was hauled off to jail July 6 after U.S. Dist. Judge Hector Lafitte sentenced him to 30 days for trespassing in order to protest Navy bombing on the Puerto Rican island of Vieques. Rivera was reluctantly prepared for jail time, said his spokesman Ken Sunshine. His conduct appears even more irresponsible given the fact that he is currently leading contract negotiations with the Greater N.Y. Hosp. Ass’n for his local. “Dennis is a warrior for the cause, but he doesn’t relish going to jail,” said Sunshine. [Daily News (N.Y.) 7/7/01]
This is the same union boss who last year gave a check believed to be the largest single campaign contribution in post-Watergate federal politics to House Minority Leader Dick Gephardt (D-Mo.) and top Democratic fundraiser David Jones. The two accepted a $1 million soft money check made out … Read More ➡
The U.S. Supreme Court turned down an appeal to hear the case of a ex-Int’l Bhd. of Teamsters political director William W. Hamilton, Jr., who was convicted of union corruption in 1999. The court, without comment, refused to examine the conviction for participating in a plan to use third-party political groups to benefit IBT’s ex-president Ron Carey. Hamilton received a three-year prison sentence. IBT contributed about $800,000 from its members to third-party political groups, such as the liberal Citizen Action, that ran get-out-the-vote efforts to benefit Democratic candidates in the 1996 elections. The groups, in turn, contributed to Carey’s own campaign fund to help his fight for re-election against challenger James P. Hoffa.
Hamilton selected which groups would get union money, but he argues that he never arranged a quid pro quo and never personally benefited from any donations. He was convicted of embezzlement, mail fraud and wire fraud in … Read More ➡
The U.S. Supreme Court refused June 25 to revive claims by former NHL players that they were victims of a conspiracy waged by NHL teams and the ex-head of NHL Players’ Ass’n, Alan Eagleson, to keep salaries low. The Court let stand a two-year-old federal appeals court ruling that players waited too long to sue. Eagleson served six months in prison for hockey-related fraud. He pled guilty in Boston on Jan. 6, 1998, to three counts of mail fraud and was fined $1 million in Canadian funds. The next day in Toronto, he admitted to three counts of fraud and was sentenced to 18 months in prison.
The U.S. charges related to using money from international hockey tournaments for himself, family and friends and to diverting $15,000 from disability insurance proceeds belonging to ex Chicago Blackhawk Glen Sharpley. The Canadian charges stemmed from rinkboard advertising deals that defrauded the NHLPA, … Read More ➡
On May 16, Int’l Bhd. of Teamsters’ Office of the Election Admin. granted James P. Hoffa’s slate’s protest against rival Tom Leedham’s slate for improperly accepting employer contributions. OEA, established to monitor the 2001 IBT election, found that Leedham (close ally of disgraced ex-boss Ron Carey) and other slate candidates violated IBT election rules by receiving contributions from Northwest Airlines, through the use of companion passes given to them by candidate Ashley McNeely, a NWA employee and IBT Local 2000 member. Hoffa’s slate argued that the receipt of these passes were a receipt of employer contributions, contrary to election rules, the IBT constitution, and the Landrum-Griffin Act. Hoffa’s slate also alleged that the passes were not properly reported to OEA.
An arbitrator determined that the companion passes were not McNeely’s to give to non-NWA employees for campaign purposes. Having received those passes through McNeely and having used those passes for … Read More ➡
Donnie L. Block pled guilty May 14 to embezzling more than $38,000 from the Bakery, Confectionery & Tobacco Workers Int’l Union Local 66 in Portsmouth, Va. He served as the local’s president since 1995 and was indicted for a $38,703 embezzlement on Sept. 20, 2000.
The Dep’t of Labor’s Office of Labor Mgmt. Stnds. found that Block embezzled dues paid through payroll deductions between 1997-98. He wrote and cashed more than 100 checks drawn on the local’s bank account causing it to be overdrawn. Four checks, for almost $1,500, were cashed at a Las Vegas casino. He also wrote two checks to his wife, worth $700. Reportedly, the couple recently separated due to his gambling. U.S. Dist. Judge Rebecca Beach Smith allowed Block to remain free on bond until his Sept. 6 sentencing. He faces up to five years and a $250,000 fine. [Virginian-Pilot (Norfolk) 5/15/01]
Indiana Dues Collector Allegedly … Read More ➡