For most union officials, a strike is a last-ditch opportunity to gain bargaining leverage. For David Sager, former president of United Steelworkers Local 5000, it appears to have been an opportunity to increase his personal wealth through a series of illegal schemes. On September 14, Sager was indicted in U.S. District Court for the Northern District of Ohio on nine counts of embezzlement, plus 18 counts of mail fraud, one count of obstruction of justice and one count of making false statements to law enforcement. He then pleaded not guilty and was set free on bond. “This defendant betrayed the union membership he promised to represent,” said U.S. Attorney Carole Rendon. The charges follow a joint investigation by the IRS and the U.S. Labor Department’s Office of Labor-Management Standards.
United Steelworkers Local 5000, based in Middleburg Heights, Ohio, in suburban Cleveland, represents about 100 employees of various Great Lakes shipping … Read More ➡
David Lewis enriched himself in ways that neither the dentistry profession nor Teamster members recognized – or liked. Several months ago, he learned the high price of his actions. On May 5, Lewis, a Sacramento-based dentist, was sentenced in U.S. District Court for the Eastern District of California to three years and 10 months in prison, and fined $75,000, for skimming at least $1 million from a union-sponsored health plan covering employees of United Parcel Service. He had pleaded guilty in January after being indicted on 18 counts in February 2014. The actions follow an investigation by the U.S. Labor Department’s Office of Inspector General and Employee Benefits Security Administration, plus the California Attorney General’s Office and the state’s Dental Board.
Union Corruption Update discussed this case several months ago. According to federal prosecutors, Lewis, now in his early 60s, back in late 2008 or early 2009 developed a … Read More ➡
On August 18, John Springer, former secretary-treasurer of the Gary Professional Firefighters Association, was sentenced in U.S. District Court for the Northern District of Indiana to three years of probation, including three months of home detention, for three counts of wire fraud totaling $30,315.99 from the Gary-based union. He also was ordered to pay full restitution. He had worked out a plea agreement in March after being indicted last August. The actions follow a probe by the U.S. Labor Department’s Office of Inspector General.
Springer, now 54, a resident of Indianapolis, headed the Gary Professional Firefighters Association, also known as International Association of Fire Fighters Local 359, during January 2007-December 2012. According to prosecutors, starting in January 2008, he used his position to divert local funds for personal use. Springer used $12,741 of the stolen money to pay for his children’s tuition at a private school and another $9,075 … Read More ➡
On August 26, James Adams, former secretary-treasurer of the Transportation Division of Sheet Metal, Air, Rail and Transportation (formerly the United Transportation Union) Local 427, was sentenced in U.S. District Court for the Southern District of Mississippi to five years of probation for making false statements in records of the Byram, Miss.-based union in connection with his embezzlement of more than $45,000. He also was ordered to pay full restitution and perform 124 hours of community service. Adams had pleaded guilty in March after being indicted last October. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On August 18, Jeanette Bowman, former treasurer of National Association of Letter Carriers Local Branch 280, pleaded guilty to theft in the Marion County (Ohio) Court of Common Pleas to theft in the amount of $16,347 from the Marion, Ohio-based union. The guilty plea follows a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡
On August 17, Michael Bennett, former president of United Auto Workers Local 2317, was indicted in U.S. District Court for the Northern District of Indiana on three counts of wire fraud and three counts of embezzlement for stealing more than $100,000 in funds from the Lafayette, Ind. union. He allegedly made out 170 checks to himself, forging the local treasurer’s signature, and then either cashed the checks or deposited them in his own bank account. UAW Local 2317 represents about 700 employees at Fairfield Manufacturing. The charges follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Al Sharpton is at it again, doing what he does best: misrepresenting facts and mobilizing crowds. The man known as Reverend Al is demanding the arrest of police officers in Charlotte and Tulsa for their roles in the recent shooting deaths of blacks who were resisting arrest. In Charlotte, blacks rioted for three nights over the death of Keith Scott, a hardcore felon. That the cop who shot him also was black, and with apparent justification, was insignificant to the rioters. In Tulsa, a prosecutor charged a white female cop with first-degree manslaughter in the fatal shooting of Terence Crutcher, a heavy PCP user. In the face of this, Sharpton and his ally, Benjamin Crump (in photo), part of the Crutcher family legal team, are insisting on what amounts to an abandonment of due process. Meanwhile, a federal civil rights probe is underway.
The script is familiar: Al Sharpton, now … Read More ➡
On August 16, Jennifer Cruise, former office manager for International Brotherhood of Electrical Workers Local 520, was charged in U.S. District Court for the Western District of Texas with two counts of embezzling funds from the Austin-based union in the amount of $12,750. The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On August 12, Wanda Rosenboro-Correa, former secretary-treasurer of American Federation of Government Employees Local 2798, was indicted in U.S. District Court for the District of Columbia with theft from the Washington, D.C.-based union in an amount of more than $1,000. The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
In the name of fairness, the Obama administration this May issued a final rule dramatically raising the maximum base pay under which salaried employees can qualify for overtime status. Unfortunately, this move could give fairness a bad name. Last Tuesday, September 20, officials in 21 states filed suit in Plano, Texas federal court to enjoin the U.S. Department of Labor (DOL) from enforcing the rule, which is set to take effect December 1. The suit, led by Attorneys General Ken Paxton (Texas) and Adam Laxalt (Nevada), is challenging the rule on grounds that it usurps congressional authority and invites job losses. “Once again, President Obama is trying to unilaterally rewrite the law,” said Paxton in a prepared statement. “And this time, it may lead to disastrous consequences for our economy.”
Union Corruption Update analyzed this issue nearly four months ago. On May 18, the Department of Labor’s Wage … Read More ➡