Ex-Wisconsin Executive Director Pleads Guilty to Embezzlement

Look at it on the bright side – at least the numbers are right this time around.  Three months ago newspaper reports indicated Stanley Kluss had been charged with embezzling roughly $25,000 from the Wisconsin Professional Police Association, for whom he had served as executive director during 1986-2004.  The real haul, as it turns out, was three or four times that.  On January 20, Kluss pleaded guilty in federal court to embezzling anywhere from $70,000 to $120,000 over the course of October 2000 to February 2003.


It’s something of a mystery why Kluss, 64, a resident of Crandon, in the northern part of the state, had resorted to theft.  His salary was $82,400, and he got free use of a car and an apartment.  Yet according to last fall’s 37-count indictment, he used WPPA credit cards to charge personal items such as a snowmobile, Read More ➡

Former Iowa Local Secretary-Treasurer Sentenced

On December 20, Debra Herrig, formerly secretary-treasurer for American Postal Workers Local 2339, was sentenced in U.S. District Court for the Northern District of Iowa to three months imprisonment and two years of supervised release.  She also will have to serve three months of home detention.  Herrig pleaded guilty last March to one count of embezzling funds from the Dubuque local; she since has made restitution in the amount of $13,265.26.  The sentencing follows an investigation by the Labor Department’s Office of Labor-Management Standards.  (OLMS, 1/25).     


Ex-Bookkeeper for Philadelphia Local Sentenced for Thefts

On January 3, Barbara Wituschek, ex-bookkeeper for Iron Workers Local 161, was sentenced in U.S. District Court, Eastern District of Pennsylvania, to 36 months of probation and fined $1,000.  She had pleaded guilty last October to two counts of embezzling $5,741.41 in union funds.  (OLMS, 1/25).     Read More ➡

Change to Win, LM-2 Ruling, Longshoremen Led Pack in 2005

Compiling a list of the previous year’s Top Ten Whatever – news stories, TV shows or movies – is one of life’s guiltier pleasures for the scribbling class, providing an opportunity for the compiler to exhibit a briefly heightened sense of importance.  Yet despite inviting a certain level of self-indulgence, it also serves a needed function:  putting events in perspective.  There’s no reason why labor corruption stories can’t be ranked as such.


The Top 10 stories for 2005 are not the product of any weighted formula, but they do reflect the application of several criteria.  First is the amount of funds stolen or missing.  A union that fleeces its treasury of $2 million, all other things held equal, is making a far bigger dent in its members’ livelihoods than if it had stolen $200,000.  Second is evidence of involvement, if any, by officials rather than office employees.  When a union Read More ➡

Massachusetts UFCW Local Official Sentenced for Extortion, Fraud

Joseph DiFlumera must have forgotten who was paying his dues. As president of United Food and Commercial Workers Local 1445 in Dedham, Mass., he was supposed to be negotiating on behalf of supermarket workers. What he negotiated instead, over the course of 1989 to 2003, was a sweet deal worth $1.56 million to himself. He’s set to enter federal prison on January 17 to serve a 46-month sentence for mail and wire fraud. But it’s not likely that he’ll be able to make any restitution because it was the casinos who were the biggest winners of all. 


DiFlumera, 71, had served his union for a long time. From 1959 through 1976 he was president of UFCW Local 1459, based in Springfield, Mass.  Though it had been years since he headed Local 1445 at the time of his arrest in 2003, the union trusted him to negotiate deals. Read More ➡

Amid Complaints, D.C. AFT Local Election Runoff Is Planned

teachers desk reduced_0The Washington Teachers Union thought its days of scandal, or at least accusations of it, were long behind.  But the process of choosing a new local president seems to have produced an echo effect.  Last month the union, an affiliate of the American Federation of Teachers, held an election to determine a successor to its former president, Barbara Bullock, now doing a nine-year stretch in federal prison.  Bullock and her cronies embezzled or otherwise stole roughly $5 million during 1995-2002 before an outside audit turned up massive financial irregularities.  This led to an FBI raid and an AFT takeover of the local.   Three candidates entered the race:  George Parker, Rachel Hicks and Elizabeth Davis.  Parker and Hicks finished a close first and second; Davis is crying foul. 

On January 3, Davis announced plans to appeal the results to the U.S. Department of Labor, claiming there were widespread voting irregularities.  She Read More ➡

Maine Teacher Pleads Guilty to Embezzlement, Sentenced

Jeffrey Olson found out that humility can go a long way.  Olson, 59, pleaded guilty on January 5 to embezzlement charges.  A former math teacher at Belfast Area High School, he had served for two decades as treasurer of SAD 34 Education Association, an affiliate of the National Education Association.  Unbeknownst to his colleagues, for some of that time he’d embezzled about $140,000.  Upon his arrest, he cooperated with police, admitting he took the money to cover financial difficulties.  He also paid back around $90,000 back in June when the thefts had been discovered by the new local president, Betty Lu Brown.  Brown had opened a bank statement and discovered 32 checks, each for $514 written out to Olson or his wife over a three-month period.  She then notified police, who with Olson’s cooperation, discovered a lot more missing.   

Olson’s cooperation and contrition moved Waldo County Superior Court Justice Read More ➡

Pennsylvania Workers Join Lawsuit Against Snoopy Unions

Organized labor has never been too keen on the right to privacy – at least the privacy of workers who might be reluctant to join and need some persuading. About a thousand workers at the Cintas Corp. plant in Emmaus, Pa. have joined in a suit over what they say are overly aggressive organizing tactics by two major unions. The employees allege that for two years, during July 1, 2002-August 2, 2004, members of UNITE and the Teamsters copied down license plate numbers of workers’ parked cars at the plant, subsequently sending organizers or mailing information to their homes.

The employees are basing their complaint on a 1994 federal law, the Driver’s Privacy Protection Act, prohibiting the disclosure and use of personal information obtained through motor-vehicle records. Late last spring U.S. District Judge Stewart Dalzell had granted class-action status to Cintas workers in Pichler v. UNITE et al. Read More ➡

Washington State Bookkeeper Charged with Theft to Go on Trial

One side calls it embezzlement; the other calls it a rookie mistake.  Either way, Kimberly Solheim has been through a learning experience.  The former bookkeeper for Division 402 of the Local Brotherhood of Locomotive Engineers in Pasco, Washington, is set to go on trial in federal court on January 23 for embezzling nearly $15,000 from the union.  Prosecutors maintain that she diverted the funds into her own account during July 2001-July 2003.  “The union has no source of income other than the dues, and it only has one account,” said U.S. Attorney Gregory Shogren. “She was acting as bookkeeper and wrote checks to herself and her husband.”  But her husband, Kurt Solheim, is making a case that his wife never intended harm.  “It was a clerical error that spun out of control,” he said.  “She wasn’t aware of all the federal Read More ➡

Gotti Ally D’Amico Becomes New Gambino Boss; Denies It, Too

Even in the Mafia, policy is personnel. And the Gambino crime organization takes its time before hiring someone for the job of CEO. The word on the street is that there’s a new boss: John “Jackie Nose” D’Amico. Jerry Capeci, editor of the Web site, ganglandnews.com, was one of the first of many news sources to break the story. A longtime family capo, D’Amico isn’t far removed from the two-decade succession of Gottis that ran the family business. Yet he denies being in charge. “I’m insignificant,” he told the New York Daily News. “I’m not important. I take the 4 train, the 5 train, the 6 train. That’s the only way I travel. I don’t have a chauffeur-driven car.” 


So who is this guy anyway? John D’Amico, 69, was a trusted right-hand man of John Gotti until the Teflon Don’s conviction in 1992 on more than a dozen counts Read More ➡

Genovese Boss Gigante Dies; Corrupt, But Was He Crazy?

vinnie-giganteThe media dubbed him “the Oddfather.” But if Vincent “the Chin” Gigante’s decades-long bizarre public behavior had succeeded as a ploy to avoid a criminal conviction, what matters most here was that as the reigning boss of New York’s Genovese Mafia family, he controlled a criminal empire that included any number of labor unions. Gigante, 77, died of heart disease on December 19 in a federal prison hospital in Springfield, Missouri. His death marks the passing of an era, the final act in a roughly 60-year career in organized crime.    


With his pompadour hair and pugilist face, Vincent Gigante was straight out of central casting. He was born in the Bronx in March 29, 1928, one of five sons, to Neapolitan immigrant parents. School didn’t agree with him. He dropped out of Manhattan’s Textile High in the ninth grade, latching onto a world of petty crime Read More ➡