Troubled NYC Local Hit with another Embezzlement Charge

Manhattan D.A. Robert Morgenthau announced on Dec. 22 the arrest of Lloyd Clarke on charges of embezzling some $2.4 million from a local of Dist. Council 37.  D.C. 37 has seen more than 30 frmr. officials convicted of embezzlement and vote fraud.  Clarke worked for more than 20 yrs. As the treasurer of Local 375, the Civil Service Technical Guild.  The guild is affiliated with Amer. Fedtn. Of State, County & Municipal Employees. 


According to Morgenthau, Local 375 hired an outside auditor this past summer, who discovered that Clarke had “loaned” himself $500,000 from the union to start a real estate business that currently owns 11 apartment bldgs. worth $7 million.  Later, Clarke allegedly stole $2.34 million from the Professional Employees’ Legal Service from July 1996 thru May of last yr.  The Service is supposed to provide no-cost legal advice to union members and their families in real estate closings, divorces and bankruptcies.  But Clarke allegedly wrote phony checks to another company he owned, Jam-Am Development Corp.  According to Morgenthau, Clarke played a shell game by stealing from the service fund’s real estate escrow accts., then repaying those accts. At their closing by stealing from new accts.


Charged with 1st degree grand larceny, Clarke faces up to 25 yrs. In prison if convicted. [Newsday, New York Post, 12/23/03]