On July 2, 2009, in the United States District Court for the Northern District of Ohio, an information was filed charging Michael Kelly, former Secretary Treasurer for the United Transportation Union (UTU) Local 586 (located in Willard, Ohio) with one count of embezzling union funds in the amount of $97,970.71. The sentencing follows an investigation by the OLMS Philadelphia District Office. The sentencing follows an investigation by the OLMS Chicago District Office. The sentencing follows an investigation by the OLMS Pittsburgh District Office. On January 14, 2009, in the U.S. District Court for the Southern District of Ohio, Jeffrey Baker, former co-chairman of the Picket Committee for Machinists Local Lodge 1943 (located in Middletown, Ohio), pled guilty to one count of making a false entry in a union record. You cant train people to be ethical. The sentencing follows an investigation by the OLMS Cincinnati District Office. He had previously made restitution in the amount of $55,866. Also, Dallas was prohibited from incurring any additional credit card debts, ordered to perform 200 hours of community service, submit to random drug testing and obtain mental health treatment. Suite 300 The sentencing follows an investigation by the OLMS Chicago District Office. For decades, the labor bosses running unions have been caricatured as morally bankrupt, mobster-like thugs who care more about power and money than serving their hard-working, dues-paying members. Examining the rise of embezzlement in unions around the country can help to put this issue in perspective. The plea follows an investigation by OLMS New Orleans District Office. Often, the person or people that took part are typically members of the organization that everyone likes. On September 23, 2009, in the United States District Court for the Northern District of Ohio, Jack Hooks, former Secretary-Treasurer of AFSCME Local 11, Chapter 7010 (located in Mansfield, Ohio), was sentenced to two years probation, including six months home confinement with electronic monitoring, ordered to make full restitution, and fined $2,000. On February 12, 2009, in the United States District Court for the Northern District of Illinois, William Sargent, Jr., former Treasurer of AFGE Local 704 (located in Chicago, Ill.), was sentenced to five months imprisonment and one year supervised release and ordered to pay remaining restitution in the amount of $22,995.74 and a $25 assessment. ) or https:// means youve safely connected to the .gov website. .manual-search ul.usa-list li {max-width:100%;} Its typically a very trusted relationship with somebody who has been with the company a long time and has access to be able to get away with the fraud. An indictment raises no inference of guilt. On January 5, 2009, Johnson had pled guilty to one count of embezzling union funds in the amount of $102,519. Stephens allegedly received $52,000 in consulting payments, issued to himself and three other individuals, from the Los Angeles County Federation of Labor's Voter Improvement Program from February 2004 through April 2005, and filed a false 2004 income tax return by not reporting $35,000 in "other income" related to the payments. On May 27, 2009, in the United States District Court for the Western District of Missouri, Wendy Bentzen, former information/financial manager for the American Federation of State, County and Municipal Employees (AFSCME) Council 72 (located in Jefferson City, Mo. On May 15, 2009, Stefanik had pled guilty to one count of embezzling union funds in the same amount. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} The stipulation settles a lawsuitthat the Department filed against Local 3 seeking to void the August 29, 2008 rerun election, supervised by OLMS, for the offices of two union-wide Business Agent positions.Local 3eliminated the Business Agent position that represented employees at Entenmann's Bakery thereby, according to OLMS' investigative findings, denying Entenmann's members the opportunity to run for and vote for any business agent position. The indictment follows an investigation by the OLMS Atlanta District Office. Dennis Williams, president of the UAW, said the 415,000-member union takes seriously issues of fraud and wrongdoing. On May 15, 2009, in the United States District Court for the Northern District of New York, Norman Joseph Stefanik, former Treasurer of Steelworkers Local 1450 (located in Watertown, N.Y.), pled guilty to embezzling union funds. Investigators are said to be examining General Motors and Ford union training centers, as well. 110 W. 7th Street Embezzlement is an action where a person takes in money for a business or other entity, and instead of putting it into the correct account, keeps it for themselves. Like Jimmy the Bull, the crimes dont stop with embezzlement. / CBS San Francisco. The sentencing follows an investigation by the OLMS Phoenix Resident Investigator Office. Additionally, Luna was ordered to pay restitution in the amount of $67,416.21 and a $100 assessment. On April 10, 2009, Drawdy was charged with sixteen counts of embezzling union funds in the amount of $17,900. The indictment follows an investigation by the OLMS Chicago District Office. The sentencing follows an investigation by the OLMS Cleveland District Office. This is both externally from the public and internally from members. An audit revealed Garza paid three checks totaling approximately $252,757 to Hot Rod Systems before it completed any work. In fact, small businesses are the most vulnerable, and we are seeing more significant occurrences in churches, nonprofits, financial institutions and the manufacturing industry, she said. The plea follows an investigation by the OLMS Denver District Office. The indictment follows an investigation by the OLMS Detroit District Office. An OLMS investigation concluded that Elsezy created and cashed checks totaling $44,316.58, drawn from the unions bank account for personal use. On September 17, 2009, Williams was indicted on one count of embezzling union funds in the same amount. There have been 300 unions that have discovered theft in the past two years. Law enforcement officials said less-qualified people tend to end up in union finance roles because they're often elected based on popularity rather than qualification. On February 3, 2009, in the United States District Court for the Eastern District of Pennsylvania, Peter Rhein, former Treasurer of American Federation of Teachers (AFT) Local 3845 (located in Philadelphia, Pa.), pled guilty to a fourteen count indictment that included six counts of embezzlement of union funds totaling $43,600 and eight counts of making a false statement. On November 5, 2009, in the City and County of Denver District Court, Denver, Colorado, Sherri Pemberton, former President of American Federation of Government Employees (AFGE) Local 1802 (located in Denver, Colo.), pled guilty to one count of theft. Bokaiyan, 58, Houston, had also pleaded guilty for his role in the scheme and was ordered to pay $156,595 in restitution. On May 2, 2003, the Department of Labor informed Martin of his prohibition from serving as a union official for a period of 13 years. On December 8, 2009, in the United States District Court for the Northern District of Iowa, Thomas Jon Witham, former Financial Secretary of the International Brotherhood of Boilermakers Local 106-D (located in Mason City, Iowa) was sentenced to 21 months in prison for one count of embezzlement of union funds in the amount of $52,037.19. The Maddalones pled guilty to conspiracy to commit extortion for their participation in a scheme, along with other union officials, to use their union positions and the fear of economic harm to obtain cash bribes from employers. On August 12, 2008, Rhoades was indicted on one count of embezzling union funds in the amount of $8,001.86 between June 2006 and November 2006. Lopez was sentenced to 24 months imprisonment and two years supervised release. Last updated on: November 14, 2021, 11:59h. On July 13, 2009, Ullum pled guilty to a one-count information charging him with causing a false statement on an ERISA record. Local Official Accused of Embezzling Freeman was charged with five counts of forgery totaling $2,260; Hamer was charged with one count of forgery totaling for $749; Smith, one count of forgery totaling $2,500; Turner, five counts totaling $15,800 and Russia, twelve counts of forgery totaling $21,309. This petition starter stood up and took action. The criminal charge is punishable by up to five years in federal prison and a On June 10, 2009, Woods had pled guilty to one count of embezzling union funds in the amount of $10,988.86 and one count of falsifying union records. More unions are seeking to take decisive action when theres the possibility of embezzlement occurring. The founder of Prim Capital Corp., who managed as much as $250 million for the National Basketball Players Association, was sentenced in June 2014 to 18 months in prison for trying to defraud the union of $3 million. The sentencing follows an investigation by the OLMS Buffalo District Office. On April 1, 2009, in the United States District Court for the District of Minnesota, Thomas James Martin, former Business Manager of Plumbers Local 15 (located in Minneapolis, Minn.), was denied his request for an exemption from the LMRDA Section 504 prohibition against persons convicted of certain crimes holding union office. Local3 agreed to hold a new election, under OLMS supervision, for the two union-wide business agent positions.The settlement follows an investigation by theOLMS New York District Office. In the case of embezzlement in unions, money comes in from union dues. A locked padlock The sentencing follows a joint investigation by the OLMS Chicago District Office and the Department of Labor's Office of the Inspector General. The arrest follows an investigation by the OLMS Miami Resident Investigator Office. Of course, the shocking data from the Department of Labor only includes the cases where the theft, racketeering and other criminal activity were caught. On October 22, 2009, in the United States District Court for the Eastern District of Wisconsin, an information was filed charging Timmy R. Peltier, former Secretary Treasurer of Independent Loomis Security Employees Union (located in Cudahy, Wis.), with making a false statement or representation of a material fact on the union's 2006 and 2007 annual financial reports. On April 2, 2009, in the United States District Court for the District of Hawaii, Oliver Kupau III, former lead field representative of Laborers Local 368 (located in Honolulu, Hawaii), was denied his request for an exemption from the LMRDA Section 504 prohibition against persons convicted of certain crimes holding union office or employment. Unions are experiencing a time period where they are not overly popular. On March 4, 2009, Welch was indicted on one count of embezzlement from a non-profit/charitable organization between $1,000 and $20,000. While superintendent, Garza awarded a contract to a company whose owner then sent funds back to Garza. Unions have a purpose to protect workers. Becker had previously made restitution in the amount of $6,500 in union funds. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. The sentencing follows an investigation by the OLMS St. Louis District Office. On January 29, 2009, in the United States District Court for the Southern District of Ohio, Rebecca Montgomery, former bookkeeper/office secretary for the Machinist Eastern Regional Office (located in Cincinnati, Ohio), was sentenced to one year probation, fined $1,000 and ordered to pay a special assessment fee of $100. On June 8, 2009, George Ortiz, a former New York City Department of Education School Bus Inspector, was sentenced to two and a half years incarceration to be followed by two years of supervised release and ordered to make restitution of $5,000. Burkhart pleaded guilty on April 8, 2021, admitting to embezzlement and theft of labor union assets. Jimmy the Bull and the Perry Crew also assaulted and intimidated rank and file union members who were critical of union leadership and physically blocked them from the union hall to keep them from voting on a contract proposal with a major employer. The sentencing follows an investigation by the OLMS Cleveland District Office. On October 9, 2009, Marsalis pled guilty to one count of creating false entries in union records. The indictment follows an investigation by the OLMS Dallas District Office. Ann Walters, headmaster at Union Academy Charter School for the past six years, spoke at the school's Class of 2019 graduation ceremony on Thursday night, but the next day she The indictment follows an investigation by the OLMS Detroit District Office. The plea follows an investigation by the OLMS Cincinnati District Office. On February 17, 2009, Ortiz pled guilty to extorting and accepting bribes in a program receiving federal funds. The indictment follows an investigation by the OLMS Milwaukee District Office. Officials say the Board of Directors does not discuss individual personnel matters and cannot comment on the circumstances around Dr. Walters departure. The union represents more than 700,000 workers - including nearly 60,000 Northern California workers through its Local 1021, and is politically influential, regularly donating millions to Democratic candidates. At the hearing, the court noted Garza led a double life and had a desire for taking money from others which got him into trouble and led him to his situation today. On February 23, 2009, in the Superior Court of Vanderburgh County, Indiana, Michael West, President of Communications Workers of America (CWA) Local 84845 (located in Evansville, Indiana), pled guilty to one count of conversion. An investigation concluded that Vafias was involved in a no-show job scheme associated with the 2 Broadway Project and Operating Engineers Local 14 (located in New York City, N.Y.). As part of his plea, Garza admitted he awarded a $280,000 no-bid contract to Ahmed Bokaiyan. Bruno was also ordered to enter into substance abuse counseling and attend credit counseling. Its the same basic story over and over again. The charge follows an investigation by the OLMS St. Louis District Office. An information raises no inference of guilt. Her current duties have been reassigned and discussed with her. On March 30, 2009, in the United States District Court for the Northern District of West Virginia, Steven Snyder, former Financial Secretary of Steelworkers Local 5724 (located in Clarington, Ohio), was sentenced to five months incarceration after pleading guilty to embezzling $78,893.47 in union strike fund benefits. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} On July 31, 2009, in the United States District Court for the Southern District of Georgia, Dianne Drawdy, former Financial Secretary of Security Police Fire Professionals Local 576 (located in Baxley, Ga.) pled guilty to embezzling union funds. Thieves often are beloved colleagues who leave a profound sense of betrayal. On December 15, 2009, in the United States District Court for the Eastern District of Michigan, Deidra Lucas, former President of American Federation of State, County, and Municipal Employees (AFSCME) Local 100 (located in Pontiac, Mich.) was indicted on four counts of embezzling union funds in the amount of $39,403.72. 2023 www.freep.com. Prosecutions of Union Officials in 2018 Unmasked Theft, WebOn April 3, 2007, Brown was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. Subsequently, Holmes was sentenced to five years in prison, suspended, five years of probation, and was ordered to pay restitution in the amount of $6,350. On October 9, 2008, Bruno was charged with embezzling union funds, between March 2004 and March 2006, in the same amount. On March 25, 2009, in the United States District Court for the Middle District of Florida, Tarris D. Dallas, former Financial Secretary-Treasurer of United Steelworkers Local 9-415 (located in Fernandina Beach, Fla.), pled guilty to one count of embezzling union funds in the amount of approximately $105,000.The plea follows an investigation by the OLMS Atlanta District Office. On April 3, 2009, in the United States District Court for the Western District of Kentucky, Richard M. Clark, former Secretary Treasurer of Letter Carriers Branch 468 (located in Bowling Green, Ky.), was charged with embezzling $18,680 in union funds and concealing and destroying union records. ), with one count of embezzlement of union funds between August 2006 and October 2007. The plea follows an investigation by the OLMS Chicago District Office. On May 5, 2009, in the United States District Court for the Southern District of Alabama, Angelo Wiggins, former President of the National Alliance of Postal and Federal Employees (NAPFE) Local 408 (located in Mobile, Ala.), was sentenced to five years of probation and ordered to pay restitution in the amount of $2,269.85. Scandal just reinforces stereotypes about unions. The stolen dues are used to buy everything from luxury goods and lavish vacations to everyday items like gas and food. A former executive director of the Hawaii Painting & Decorating Contractors Association pleaded guilty in May 2016 to embezzling approximately $1,483,800 from the Hawaii Painters Trade Promotion & Charity Fund, which comes out of the hourly wages of Painters District Council 50 in Honolulu. The sentencing follows an investigation by the OLMS Miami Resident Investigator Office. Tungett was also ordered to attend a drug aftercare program, pay a $250 fine and a $25 special assessment. On April 7, 2009, in the United States District Court for the Southern District of Ohio, Jeffrey Baker, former co-chairman of the Picket Committee for Machinists Local Lodge 1943 (located in Middletown, Ohio), was sentenced to 180 days home confinement, two years probation, and ordered to pay a $2,500 fine and a $25 special assessment.