Teamsters Scandal Briefs

Business Week [06/15/98] reported that top DNC/Clinton-Gore fundraiser Terrence McAuliffe’s conversations with 2 Democratic party staffers about a possible swap scheme with the Teamsters during the 1996 election are now “the focus of a federal grand jury in Manhattan that is investigating whether Democratic fundraisers conspired to find donors for Carey’s campaign in hopes of getting back hefty union contributions.”

Business Week also said sources “close to the investigation said the U.S. Attorney is interested in whether [an AFL-CIO] credit-card deal played a role in the swap schemes.” McAuliffe and Carey campaign consultant Martin Davis, who plead guilty to charges of conspiracy, mail fraud, embezzlement and making false statements to the court-appointed Teamsters election officer, were both under contract to “lobby the AFL-CIO Executive Council to switch its union credit card program” to Household International bank.

In a Jun. 3 ruling, Judge Edelstein rejected a Carey appeal of his disqualification from the rerun election. Separately, the Teamsters Independent Review Board was scheduled to meet Jun. 9 to discuss Carey’s possible expulsion or suspension from the union. A decision is expected shortly. [BNA Daily Labor Report 06/04/98]