Ex-Head of IBEW Credit Union in Western Pennsylvania Pleads Guilty to $2M+ Theft

How Stacey Shaw managed to avoid detection isn’t certain. But it is fair to say that the union whose interests she allegedly represented isn’t happy. On April 16, Shaw, former president of International Brotherhood of Electrical Workers Local 712 Federal Credit Union, pleaded guilty in Pittsburgh federal court to one charge each of embezzlement and tax evasion in connection with her theft of more than $2 million from the western Pennsylvania institution over a nearly three-year period. She had made numerous unauthorized charges and cash advances for her personal use. As a result of her actions, the credit union went out of business. If indirectly, union members will be paying the tab. Shaw had been charged in a three-count information on March 15 following a joint investigation by the FBI and the IRS. Sentencing is scheduled for August 10.

Credit unions, like banks, offer a wide range of financial services … Read More ➡

Philadelphia IBEW Contractor Pleads Guilty to Tax Fraud, Theft

For Donald Dougherty, the old habits wouldn’t go away. That’s why he’s likely to go to prison. On January 21, Dougherty, a Philadelphia-based electrical contractor, pleaded guilty in U.S. District Court for the Eastern District of Pennsylvania to one count each of tax fraud and theft related to his work with International Brotherhood of Electrical Workers Local 98. Several members of that Philadelphia union were indicted by a grand jury two years ago. Dougherty and an accountant for his firm, Michael McKale, were indicted separately this past November 25 on multiple fraud and theft charges. The actions follow a joint probe by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards, Employee Benefits Security Administration, and Office of Inspector General.

Donald “Gus” Dougherty, now 54, a resident of Philadelphia, no relation to indicted IBEW Local 98 Business Manager John Dougherty, is the longtime owner-operator of Dougherty … Read More ➡

Justice Department, UAW Reach Settlement on Reform Plan

Dennis Williams

The United Auto Workers knew a settlement was coming. Now comes the hard part: compliance. This past Monday, December 14, Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, announced that his office and the UAW had settled a civil suit filed earlier that day against the union based on acts of fraud, embezzlement and tax evasion committed by certain among its members. Criminal investigations had led to charges and convictions of 15 individuals, mostly union officials, including recent UAW Presidents Gary Jones and Dennis Williams. Most thus far have received sentences. The consent order, which requires court approval, creates an Independent Monitor possessed of the authority for up to six years to investigate and discipline corruption.

Union Corruption Update has covered this two-part investigation many times (such as here and here) since it broke open in July 2017. The 400,000-member, Detroit-based United Auto Workers, though … Read More ➡

Hawaii ILWU Official Sentenced for Tax Evasion, Identity Theft

If government benefits were available, Nathan Lum made sure that he was going to receive some of them, legally or not. But the only thing that he’s received now is a sentence. On January 29, Lum, former Longshore Division director of International Longshore and Warehouse Union Local 142, was sentenced in U.S. District Court for the District of Hawaii to 30 months in prison for tax fraud and identity theft totaling more than $300,000 over several years. The identity theft involved his cashing of Social Security checks owed to his deceased father. Lum had pleaded guilty last March after an initial indictment in July 2018 and another one that September. He also will have to pay full restitution, plus a $125 special assessment. The actions follow a probe by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards.

Nathan Y.G. Lum, now 62, a resident of Honolulu, … Read More ➡

Maryland AG Asked to Investigate Cummings’ Nonprofit

From the Washington Examiner, by Alana Goodman:

A watchdog group is asking the Maryland attorney general to investigate whether Rep. Elijah Cummings and his wife used a charity for improper self-enrichment, according to a copy of the complaint obtained by the Washington Examiner.

The Foundation for Accountability and Civic Trust, which leans conservative, filed the complaint on Monday against the Center for Global Policy Solutions, a nonprofit organization founded by Cummings’ wife, Maya Rockeymoore.

The complaint asked Maryland Attorney General Brian Frosh to investigate the financial relationship between the Center for Global Policy Solutions and Rockeymoore’s for-profit consulting firm, Global Policy Solutions LLC.

The similarly named entities shared an address, phone number, projects, funding sources, and had a cost-sharing arrangement that raises questions about a “potentially improper financial benefit to Ms. Maya Rockeymoore Cummings and her husband, Representative Elijah Cummings,” the complaint asserts.

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