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 … Read More ➡
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 … Read More ➡
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 … Read More ➡
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 … Read More ➡
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 … Read More ➡
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 … Read More ➡
The St. Tammany Fire Protection District (La.) board voted 3-1 Mar. 9 to fire Slidell Firefighters Ass’n boss Terrel Noland for illegal political activities by a civil servant. The District found Noland guilty of influence-peddling in the 1998 Slidell City Council elections. Louisiana law allows union officials who also are under civil service to have a right to speak and take certain actions on behalf of the union. But Noland allegedly offered several council candidates union financial and political support in exchange for agreeing to appoint someone new to one or both of the two board slots appointed by the council. Noland denied making any quid pro quo offers. [Times-Picayune 3/10/99]
Massachusetts AFL-CIO Pulls Plug on Buffalo’s Propaganda Radio
The radio program, “Prospering in America,” a union-funded, far-left radio program lost its funding Mar. 5, ending a 6-year run on WHTT-FM in Buffalo. The union show was forced to close … Read More ➡
DC37’s Local 2507 executive board suspended its president, Kevin Lightsey, vice-president, Kirk Delnick, and secretary-treasurer, Rudy Boyd, Jan. 6 amid allegations of financial corruption. The board gave no official explanation, but Richard McAllan, a board member, said, “There’s a pattern of deception that was going on, particularly relating to auto reimbursements.” Another source leaked that Lightsey and Delnick were suspended for double dipping. Allegedly, Local 2507 had leased Buick LeSabres for each boss while they also received a $7,200 annual vehicle allowance from DC37. The source also said that Boyd was suspended for mismanaging finances and obstructing investigations. There were also allegations that Lightsey and ex-secretary-treasurer Alfred Loving wrongfully obtained a union credit card and charged questionable items. Loving is awaiting trial for allegedly forging a union check for a car down payment. [N.Y. Times & Newsday 1/7/99]
Financial Chaos Envelops DC37
DC37 faces $4.5 million in unexpected expenses … Read More ➡
The Financial Services Commission of Ontario, not Laborers’ Int’l Union of No. Am.’s “internal reform effort,” has opened a fraud investigation into the “finances and dealings” of the Labourers’ Pension Fund of Central & Eastern Canada. LIUNA president Arthur A. Coia is one of the Fund’s 5 trustees being probed. Coia is also the Fund’s chairman. Investigators are probing a tainted 1989 land deal that the Fund paid $23.7 million for a parcel of land that is now allegedly worth $5 million. But the Fund’s books value the at $28 million. The property is in Stoney Creek, Ontario. There were purportedly plans to have condos built, but there has be no development on the land. The parcel is owned by a company that is wholly controlled by the Fund. Ontario law and LIUNA’s own conflict-of-interest rules stated that the Fund’s assets cannot be invested in a “corporation wholly owned or … Read More ➡
An 80-page report, released Sep. 22 by the U.S. Attorney’s Office for N.J details discipline taken against 24 bosses of the Hotel Employees & Restaurant Employees Int’l Union have been disciplined under an internal reform process supervised by the U.S. Justice Dep’t. The “Fourth Report of the Monitor of HERE” describes the corrupt practices at the highest levels of the union including: Edward T. Hanley, who stepped down as general president in July after serving in that capacity for 25 years (see: UCU 1.4 7/27/98); and his son, Thomas Hanley, HERE’s director of organization until Aug. 31 (see: UCU 1.8 9/21/98). Others disciplined include locals bosses in Chicago, Milwaukee, Buffalo, Pittsburgh and Cleveland many of whom were linked to organized crime. The report is full of financial mismanagement, fraud, cronyism, nepotism, inadequate internal controls and undemocratic practices. It illustrates union officers using union funds for their own personal expenses; officers … Read More ➡