Robert Persico, a Scarsdale, N.Y. businessman, can add one more notch to his mob connections. Persico, 40, head of the Mount Vernon, N.Y.-based Persico Contracting and Trucking, was charged with bribing officials of Locals 14 and 15 of the International Union of Operating Engineers. Earlier, he had been indicted for conspiring with a reputed Gambino family capo, Gregory DePalma, also from Scarsdale, to extort another construction company and transport stolen luxury goods.
The indictment of Persico marks the second time in recent memory that a prominent Westchester County contractor has been indicted in connection with a federal investigation into IUOE corruption. Last December, John Amicucci, president of DeFoe Corp., along with officials at four other construction companies, was charged with labor racketeering with members of the Gambino crime family. Additionally, more than 40 contractors, union officials, and members of the Genovese and … Read More ➡
On March 29, 2005, in the United States District Court for the Middle District of Pennsylvania, Terry Aldrich, former president of the Westfield Tanning Employees Association, was sentenced to two months in prison followed by three years probation for embezzlement. In addition, Aldrich will be subject to four months of electronic monitoring and he must pay restitution in the amount of $54,770 (payable in the minimum of $50.00 monthly installments). On September 15, 2004, Aldrich pled guilty to embezzling union funds in excess of $39,000.
Also on March 29, 2005, in the United Stated District Court for the Middle District of Pennsylvania, Robert Moon, former secretary-treasurer of the Westfield Tanning Employees Association, was sentenced to two months in prison followed by three years probation for embezzlement. Upon release, Moon will be subject to electronic monitoring for four months. Moon must pay restitution in the amount of … Read More ➡
On March 2, in the U.S. District Court for Maryland, Steven R. Fairfax, former secy.-treasurer of Branch 3939, Natl. Assn. of Letter Carriers, was indicted on one count of embezzling union funds in the amount of $53,990. Fairfax was also indicted on two counts of making false statements in reports. Fairfax‘s indictment follows an investigation by the Washington District Office of the U.S. Office of Labor-Mgmt. Standards. (OLMS, 3/22/05]
Ex-Secy.-Treasurer Sentenced in Ill. Fed. Court
On March 11, in the U.S. Dist. Court for the Northern Dist. of Illinois, Derrick Thomas, former secretary-treasurer of Local 138, Glass Molders Plastics Union, was sentenced to three years probation, with the first six months in home confinement, for embezzling union funds. In addition, he was ordered to: (1) make additional restitution of $3,528.52, (2) pay a special assessment of $100, and (3) complete 200 hours of … Read More ➡
David N. Kelley, the United States Attorney for the Southern District of New York, Pasquale D’Amuro, the Assistant Director in Charge of the New York Office of the FBI, Robert Johnson, the District Attorney for Bronx County, and Gordon S. Heddell, the Inspector General of the United States Department of Labor, announced on March 9 the unsealing of a 53-count Indictment in Manhattan federal court captioned United States v. Arnold Squitieri, et al., 05 Cr. 228 (the Indictment”).
The Indictment charges 32 defendants, most of whom are members or associates of the Gambino Organized Crime Family of La Cosa Nostra (“LCN”), with wide-ranging racketeering crimes and other offenses spanning more than a decade, including violent assault, extortion of various individuals and businesses, loansharking, union embezzlement, illegal gambling, trafficking in stolen property
and counterfeit goods, and mail fraud.
The chief defendant is Arnold Squitieri, a/k/a “Zeke,” a/k/a “Bozey,” a/k/a … Read More ➡
A federal grand jury returned a five-count indictment on Feb. 23 against a former Sussex County political party chairman and two other individuals for their roles in embezzlement schemes that victimized Local 16 of the United Service Workers of America and its now-bankrupt health fund. Charles W. Cart, Charles H. Wiener and Marvin Raphael are charged with conspiring to embezzle a total of approximately $284,000 in health and union funds as a result of a multi-faceted fraud scheme existing between May 2000 and November, 2001.
Susan Donato of St. Cloud, Fla., formerly the President of Local 16 and the administrator of the Local 16 Health Fund was previously charged in a separate one-count Information. Donato pled guilty in January to conspiracy to embezzle from the Health Fund and is presently cooperating in the government’s investigation.
Cart is a former Sussex County political party chairman as … Read More ➡
On Feb. 20, Walter J. Browne, former President of the National Federation of Public and Private Employees, and Patricia A. Devaney, his sister and Administrative Assistant at the union were sentenced to terms of 5 yrs, 10 months’ imprisonment and 2 yrs., 3 months’ imprisonment. They were sentenced by U.S. Dist. Judge Jose E. Martinez (S.D. FL, G.W. Bush) in connection with the defendants’ violations of the Racketeering Influenced and Corrupt Organizations (RICO) Act. The sentences were announced by Marcos Daniel Jiménez, U.S. Attny. for the Southern Dist. of Fla.; and Douglas Colon, Special Agent in Charge, U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations
On June 2, 2004, Browne and Devaney were convicted by a federal jury in Miami, after a two-month trial, of conspiring to violate RICO, in violation of Title 18, United States Code, Section 1962(d), and of committing substantive RICO … Read More ➡
While seeking fiscal responsibility in his proposed FY 2006 budget, Pres. Bush has made it clear that he will not stint on fighting union corruption. While the Dept. of Labor’s overall budget is decreased by 4.4 pct. from FY 2005, the U.S. Office of Labor-Mgmt. Standards includes an increase of $7 million to fight fraud and corruption in labor unions. Money would be used to beef up audits, help hire 48 new auditors, and investigate and combat embezzlement of union funds. [DOL, 2/7/05]… Read More ➡
The former Business Manager of Tunnel Workers Local 88 was arrested on Feb. 4 on federal racketeering charges. Scott Boidi, age 46, of Pembroke, Massachusetts, is charged with one count of Racketeering, three counts of Embezzlement of Union Assets, one count of Possession with Intent to Distribute Cocaine, one count of Use of a Communication Facility in Furtherance of a Crime, one count of Carrying a Firearm During and in Relation to a Drug Trafficking Crime; and two counts of Witness Tampering.
From June 1991 through May 2002, Boidi served as the Business Manager of Local 88 of the Tunnel Workers in Boston and Quincy. As Bus. Mgr., Boidi was responsible for, among other things, the processing of membership applications, which included collecting initiation fees from prospective members and placing members in jobs. The Indictment charges Boidi with having used the union as an enterprise … Read More ➡
Ex-judge Leslie Crocker Snyder, who has yet to formally announce her bid to unseat veteran Manhattan Dist. Attny. Robert Morgenthau, already boasts an impressive lineup of union endorsements. The Captains Endowment Association, the Detectives Endowment Assn., NY State Court Officers Assn. and the Uniformed Fire Officers Assn. were among those who publicly backed Snyder at a news conference in mid-Jan.
Bolstered by the law-enforcement unions, Snyder suggested that if elected this fall, she would not spend half the DA’s budget on white collar crime. (Morgenthau aides said it’s actually 30 to 40 percent.) But there could be some other reasons unions might support Morgenthau’s opponent. The Detectives Endowment Association has been furious at Morgenthau for vacating the convictions of five men in the Central Park jogger case in 2002 after DNA linked another man to the 1989 attack.
Many other govt. union officials have distrusted … Read More ➡
John “Buddy” Ruel liked a good time. He’d slap down a credit card to pay for booze, items from an adult toy shop, limousine rides, even an escort service. The only problem was that the credit card wasn’t his. It belonged to the Chicago Ironworkers District Council, a powerful union group that Ruel headed for years.
On Jan. 17, the federal government moved against Ruel for his alleged excesses, charging him with “converting the labor organization’s funds to his own use” over at least seven years by using a union credit card and phone card for his own personal whims. Ruel was president of the district council, the umbrella group for around 7,100 ironworkers and machinery-moving riggers, for more than a decade, until he was voted out and replaced by Danny Aussem in 2001.
Aussem said the finances were awful when he took over. … Read More ➡