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

Wash. Women Complaining of Union Boss Harassment Threatened

Three women whose complaints of sexual harassment were instrumental in the firing of a union boss from his hospital job have reported getting threatening letters and phone calls, with 1 woman finding a mutilated rabbit in her front yard.  Three other accusers were named in a federal lawsuit by the ex-Western State mental hospital mgr., Barrette “Bear” Green, claiming to have been the victim of racism.  Green is also the frmr. head of Local 793 of the Wash. Fedtn. of Public Employees, which is affiliated with the Amer. Fedtn. Of State, County & Municipal Employees.


Therapist Kathleen Lizee accused Green of sexual harassment, and hospital managers of inaction, in a civil lawsuit that the state settled last year by agreeing to pay Lizee $896,000.  A consultant hired by the state soon turned up reports of coerced sex and harassment by Green from more than a dozen

Judge Delays DOL Disclosure Reforms in Election Year

U.S. Dist. Judge Gladys Kessler (D.C., Clinton), on New Year’s Eve, blocked the immediate implementation of the Bush Administration’s union financial disclosure reforms.  Union bosses will now be able to spend membership dues, voluntary and compulsory, on election-year politics without having to account for it, which the new disclosure rules would force them to do.


This is not the first time Judge Kessler has sided with unions in a disclosure case.  In Dec. 2001, she ruled that documents revealing links between the AFL-CIO and Democratic Party during the 1996 campaign must be kept secret.  Kessler acknowledged that her opinion “ends a 25-year practice by the [Fed. Elect. Commn.] to make available to the public the full investigatory record pertaining to any complaint filed once the complaint is resolved.”  Kessler said that she was “compelled by the plain wording” of the Fed. Elect. Campaign Act, which

Hearing on Secondary Boycott of Overnite Set

A Nat’l Labor Relations Bd. administrative law judge in Atlanta will hear testimony on Apr. 15 on Overnite Transportation Co.’s allegations that the Int’l Bhd. of Teamsters engaged in an illegal secondary boycott when union activists picketed a number of the freight company’s customers.  The union engaged in numerous unlawful acts as part of its strategy of “ambulatory picketing” at sites where Overnite trucks were delivering or picking up goods from customers, says Overnite.  The hearing comes 30 months after IBT members struck the Richmond, Va.-based carrier in what the union claimed was an unfair labor practice strike. The ongoing job action, which has been marked by a barrage of litigation before NLRB as well as in state and federal courts, appears no closer to settlement today than it did when it began in 1999.

The secondary boycott charges against IBT relate to a series of picketing incidents that occurred …

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Three More New York Bosses Indicted for Grand Larceny

Helen Greene, the No. 2 official in the Am. Fed’n of State, County & Mun. Employees’ Dist. Council 37 in N.Y.C., was indicted Apr. 25 on grand larceny charges, including one alleging that she charged $794 on her union credit card to pay for the rehearsal dinner for her son’s wedding. Manhattan Dist. Atty. Robert M. Morgenthau said Greene had claimed that she spent the $794 on a union member retirement dinner. She pled not guilty before N.Y. Justice Arlene D. Goldberg and faces up to seven years in prison.

The indictment, one of several issued against union bosses Apr. 26, reportedly stunned many in DC37 because Greene appeared to be positioning herself to run for DC37’s top post. Until the indictment, Greene appeared to be the sole top DC37 boss who had emerged unscathed from the DC37 scandals that came to light in 1998 and involved convictions of 39 …

Boss Wilhelm Defends Chicago Trusteeship

Just before a hearing focusing on the trusteeship imposed on Hotel Employees & Restaurant Employees Int’l Union Local 1 in Chicago, HERE boss John Wilhelm justified his actions. In a Mar. 13 statement, Wilhelm alleged financial and managerial deficiencies with Local 1, which for decades had been HERE’s flagship. Wilhelm pointed to a sharp decline in union representation in Chicago and substandard wages and contractual protections for Local 1 members. In large part, however, Wilhelm’s statement focused on reckless spending and financial mismanagement by local bosses.

Wilhelm’s press release come one day before HERE conducts a hearing on the trusteeship. The hearing, scheduled for Mar. 14-16, was ordered by the Dep’t of Labor’s Office of Labor Mgmt. Standards. After probing the legality of the trusteeship, OLMS concluded that HERE, “had an allowable purpose for imposing the trusteeship,” but had failed to hold a hearing to justify its actions with members …

Jury Convicts Boxing Boss in New Jersey

On Aug. 17, a federal jury in N.J. found Robert “Bob” Lee, Sr., ex-boss and founder of the Int’l Boxing Fed’n, guilty on six counts of union corruption. He faces 37 to 46 months in jail for convictions on three counts of racketeering, two counts of tax evasion and one count of money laundering.

U.S. Atty. for N.J., Robert J. Cleary, charged Lee with taking $338,000 in bribes from promoters and managers to fix rankings and sanction fights. The jury, found Lee guilty in his dealings with Francisco Fernandez of Colombia, the IBF’s S. Am. representative. Lee was acquitted on charges of improper payments to him by promoters Bob Arum, Cedric Kushner and Dino Duva.

Federal prosecutors continue their civil case against Lee and his son Robert, Jr., in which they are seeking a permanent injunction to keep the Lees from any involvement in the IBF and attempting to recover …

Ex-Boss Hanley Dies in Auto Accident

The members of the Hotel Employees & Restaurant Employees Int’l Union will save $267,000 a year due to the Jan. 7 death of ex-boss Edward T. Hanley.  Hanley, 67, was forced to resign in 1998 under corruption allegations, but he swung criminal and civil immunities deals with the Dep’t of Justice and secured a $267,000 annual pension, more than his annual salary of $250,000.

“[H]e had a very high salary, enjoyed all the privileges of office and was aloof from the rank and file. And while he never was convicted…, he was always suspected because he associated with criminal elements,” said Richard Hurd, Cornell Univ. labor professor.

The Vilas County (Wis.) Sheriff’s Dep’t said Hanley was killed in a collision on County Hwy. B in Land O’Lakes, Wis. at 8:45 p.m. Hanley’s pickup truck collided with a pickup truck driven by Roy Stopczynski. Hanley, of Wadsworth,  Ill., suffered head and …

Las Vegas Boss under Attack

Unidentified dissident members of the Clark County Education Ass’n in Nevada have recently circulated bulletins under the name the Committee to Impeach Sue Strand. Strand is the top boss of CCEA. They accuse Strand of greed and utter incompetence.

One bulletin focused on Strand’s apparent indifference to union corruption. It quotes some of her published statements from recent years when she was asked about the embezzlement charges against ex-CCEA director Steve Confer in Indiana, Strand dismissed it as “just a silly issue.”  Confer pled guilty to union embezzlement on July 26.

Another bulletin went after the boss’ salary. “Members got a 1 percent raise and no increase in their benefits, but their president got an 11.6 percent increase,” states one bulletin. That raise would hike Strand’s compensation package from $100,566 to $112,238. By contrast, a beginning teacher makes $26,060. [Las Vegas Rev.-J. 10/28/99]

Workers Loose Libel Case against Union
The …

New Jersey Bosses Indicted for Kickbacks

A federal indictment unsealed Oct. 20 charges a father and son who run a local of a Nat’l Union of Healthcare & Hosp. Employees with taking $200,000 in kickbacks from a contractor hired to renovate the union’s headquarters in Newark. Victor Garcia, president of NUHHE Dist. 1199J and his son, Victor Garcia, Jr., the assistant executive director of the union’s pension fund, were charged in the Oct. 13 indictment. The local is a part of the Am. Fed’n of State, County & Municipal Employees The U.S. Atty. for N.J.  Faith S. Hochberg alleges that the two bosses accepted the money from 1994-97, in exchange for awarding the contractor $5 million in contracts for work on the building.

To retain the renovation contract, the contractor — in addition to the kickbacks — also allegedly gave the bosses jewelry and other gifts and about $25,000 in free improvements to the bosses’ residences. …

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