David Feeback’s sybaritic ways as president of Local 69 of the Hotel Employees and Restaurant Employees ended several years ago. This August 23 he got the final bill: a year and a day in federal prison, and mandatory restitution of almost $90,000. Feeback, 43, headed the Secaucus, N.J.-based local during December 1997-September 2001. But his primary duties during that time seemed to be using union funds to support spending sprees at expensive eating and entertainment establishments, and logging them as “business expenses.” The true tally of Feeback’s partying may have been a good deal higher than the restitution. Authorities believe he may have illegally spent as much as $250,000. That’s not an unreasonable claim, considering that the local’s health and welfare fund under his reign managed to rack up $1.5 million in unpaid claims.
Feeback, currently a resident of Charlotte, N.C., had pleaded guilty on May 3 to two counts … Read More ➡
On July 29, in U.S. District Court for the Western District of Missouri (Southwestern Division), Tawyuna Palmer, ex-financial secretary of Local 11-14228 for the United Steelworkers, was sentenced to five years probation for embezzlement of nearly $21,500 in union funds. She pleaded guilty back in April following an investigation by the Department of Labor’s Office of Labor-Management Standards (OLMS), and since then has made restitution. In addition to probation, Palmer will have to serve six months of home detention and perform 120 hours of community service. (OLMS, 8/17).
Former Philly-Area Manager Pleads Guilty to Embezzlement
On July 26, James Jordan, ex-business manager for Local 161 of the Riggers union, pleaded guilty in U.S. District Court for the Eastern District of Pennsylvania to one count of embezzlement totaling $21,652.80. Additionally, he pleaded guilty to one count of making a false entry in the local’s records. He had been indicted in May. … Read More ➡
This summer hasn’t been the best for the International Longshoremen’s Association (ILA). On July 6 the Justice Department slapped the union’s top leadership with a massive civil RICO suit centering on acts of extortion, fraud and other crimes it allegedly tolerated in the Ports of New York-New Jersey and Miami. Now, just two weeks later, on July 19, the department accused leaders of an ILA affiliate in Puerto Rico and several of their associates of ripping off as much as $10 million and underreporting another $1.5 million.
Four officials of UTM Local 1740, along with six businessmen and three companies, were indicted in U.S. District Court on 23 counts of embezzlement, money-laundering and maintaining false records. The union officials were Local 1740 President Jorge L. Aponte-Figueroa; attorney Ada Perez-Alonso, Enrique Sosa-Hernandez and Milagros Pagan-Morales. The businessmen named in the suit were Angel Ramallo-Diaz, Rafael Garcia-Perez, Fernando Sanchez-Bencon, Eduardo Sanchez-Bencon, Francisco … Read More ➡
Labor unions, in theory, are supposed to support higher pay for workers. The idea of a union colluding with an employer to drive down wages doesn’t make sense. Then again, forced card-check agreements have never made sense – at least for workers reluctant to join a union. A case originating in South Carolina on the issue may have major implications for the rights of non-joining employees who may view a particular union as corrupt.
The National Labor Relations Board (NLRB) on Friday, August 5 announced it would prosecute the United Auto Workers for unlawfully blocking a scheduled wage increase, thereby coercing Freightliner, a Portland, Ore.-based maker of trucks and other commercial vehicles, to support the union during an organizing drive at the firm’s Gaffney, S.C. plant. NLRB’s Regional Office 11, in Winston-Salem, N.C., had responded to a complaint brought forth in 2003 by attorneys with … Read More ➡
The soap opera that is latter-day New Jersey politics has a new episode. This time the central characters are a U.S. Senator who wants to be the state’s next governor, a divorcee who represents the state’s largest collective-bargaining unit for state employees, and, from a distance, her ex-husband. Nobody has broken the law – so far as one knows. And it’s a private matter, involving no union funds. But many observers are worried that a major conflict of interest is in the making unless the candidate is more forthright with the facts.
There’s no disputing that the New Jersey’s governor’s race took a bizarre turn on August 5. The New York Times and the Newark Star-Ledger each revealed, through obtained court documents, that Sen. Jon Corzine, D-N.J., over two and a half years ago had written a large check to a girlfriend to help with her divorce settlement. On the … Read More ➡
On July 18, Bernard Scheller, ex-secretary-treasurer for Communications Workers Local 14448, was sentenced in federal court to six months in a halfway house, to be followed by two years of supervised release and 100 hours of community service, for embezzlement. Scheller in May pleaded guilty to stealing $7,250 in union funds. The plea and sentence resulted from an investigation by the OLMS Cincinnati District Office. (OLMS, 8/6).
Ex-N.H. Business Manager Indicted for Embezzlement
A former business manager for a Laborers International Union of North America local in New Hampshire was indicted on charges of embezzling more than $150,000. The U.S. Attorney’s Office on August 10 announced its prosecution of Thomas Brewster, 54, for stealing from the Portsmouth local during the period May 17, 2003 to December 27, 2004. If convicted, Brewster faces a maximum prison term of five years and a fine of $10,000.… Read More ➡
Is it the truth or is it a whitewash? That’s the question rank-and-file members of the International Brotherhood of Teamsters ought to be asking in the wake of the release of the public portion of a new report prepared for the union, concluding that the IBT is free of organized crime. Union leadership, beginning with President James P. Hoffa, couldn’t be happier. But there’s an unpleasant reality: The report is in conflict with an earlier one released over a year ago. The extent to which the Teamsters can sway skeptics will determine how soon, if at all, the federal government will lift its more than decade-and-a-half of surveillance.
The new report, released on July 14, was prepared under the supervision of Ed McDonald, a former federal prosecutor and now a partner with the Dechert law firm in New York City. The Teamsters hired McDonald, who previously had led the … Read More ➡
On the surface, life at International Longshoremen’s Association (ILA) headquarters in Manhattan hasn’t changed all that much. But the seeming normalcy doesn’t disguise the fact that the union’s longstanding alleged ties to two Mafia families are about to be exposed wide open. On July 6, Justice Department lawyers filed a massive civil RICO lawsuit in U.S. District Court in Brooklyn. Prosecutors, in their words, seek to end “the conspiracy among union officials, organized crime figures and others that has plagued some of the nation’s most important ports for decades.” The lawsuit alleges that the Genovese and Gambino crime families control the docks at the ports of New York-New Jersey and Miami, and that the mobsters have used that influence to curry favor with the international union and put their people in charge of member benefit programs.
ILA President John Bowers, his top aides, and union attorney Howard W. … Read More ➡
People saw it coming a mile away. The Teamsters’ James P. Hoffa and the Service Employees’ Andrew Stern each made good on their threats to take their unions out of the AFL-CIO at the start of that labor federation’s 50th anniversary convention in Chicago. In the process, they and several other dissenting unions have left observers wondering if the fortunes of organized labor have been irrevocably damaged. While that’s a possibility, the most likely long-run outcome probably will be the opposite. Indeed, unions may emerge with more members, revenues and political clout. As for battling corruption, they don’t seem to view this as a high-priority item. But this requires some context. And the context is the convention.
Populism ran deep, proud and far to the left inside the large air-conditioned convention hall along Chicago’s Navy Pier Monday through Thursday, July 25-28. There was no mistaking the left … Read More ➡
Age is no obstacle when it comes to running a business, especially when it’s a Genovese crime family business. Apparently it’s no obstacle to getting arrested either. Matty “the Horse” Ianniello, a longtime Genovese capo, knows the lesson as well as anyone. On Thursday, July 28, federal agents and local police arrested Ianniello and 19 other alleged members and associates on extortion, loansharking and other charges. Ianniello, 85, who at one point allegedly served as acting family boss following the conviction of Vincent “the Chin” Gigante (see photo), was still active. “Don’t let age fool you,” said FBI Agent Matt Heron. “He’s still an influential player in the Genovese family.”
The family has been playing hard these past several years. The federal indictment leading to the arrest alleges that Genovese members, led by Ianniello, infiltrated the Queens, N.Y.-based Local 1181 of the Amalgamated Transit Union, which represents bus drivers. … Read More ➡