Diane Sampson thought she could put one over the U.S. Department of Homeland Security. It was a bad mistake. On July 19, Ms. Sampson, a native of Guyana, was suspended without pay after being charged with the theft of more than $23,000 from her union, the Federal Protection Service Labor Committee, an affiliate of the Fraternal Order of Police. The group represents employees of the Federal Protective Service, which is part of the U.S. Department of Homeland Security.
Sampson’s job was to prepare union financial reports, documenting all expenses and income. But federal authorities allege that she did other things not specified in her job title – like writing union checks and making ATM union credit-card withdrawals to finance trips to Guyana, shopping excursions, and appointments at the beauty salon. Court documents also accuse her of lying on documents to cover up … Read More ➡
On June 30, William Harry Good, Jr., former financial secretary-treasurer of Machinists Local Lodge 821, was charged in U.S. District Court, Central District of California, with embezzling $1,500 in union funds. But in this case, a little smoke has revealed a lot of fire. The sum represents just one of 229 union checks, collectively worth more than $192,000, that Good allegedly misappropriated. The indictment comes after a joint investigation by the Department of Labor’s Office of Labor-Management Standards (OLMS) and its Office of Inspector General. (OLMS, 7/21).
Nebraska Ex-Treasurer Sentenced for Embezzlement
On July 7, in U.S. District Court for Nebraska, Terry L. Gloe, former treasurer for Local 11 of the American Postal Workers Union, was sentenced to six months imprisonment to be followed by three years of supervised release, with a special condition of six months of home confinement. He also … Read More ➡
The bosses who’ve been running the International Longshoremen’s Association have led a charmed life – or at least a good imitation of one. For several decades the union has had a devil’s pact with the Genovese and Gambino crime families: We’ll install your guys in key positions; you make sure nobody else walks on our turf. At the New York, New Jersey and Port of Miami waterfronts, in particular, it’s been hard to tell where organized labor and organized crime actually differ. But it’s an arrangement whose end now may be near.
On Wednesday, July 6, federal prosecutors filed an 83-page civil RICO lawsuit in U.S. District Court in Brooklyn, N.Y., charging that the Longshoremen’s union and various benefit programs are Mafia-controlled. The suit seeks the permanent removal of four of the ILA’s six top officials: John Bowers, international president; Albert Cernadas, executive vice president; Robert Gleason, secretary-treasurer; and Harold … Read More ➡
The trial of three persons connected with the massive embezzlement and money-laundering scandal at the Washington Teachers Union (WTU), an affiliate of the American Federation of Teachers, resumed after the holiday weekend, with some key testimony for the prosecution from shady characters. Given that high-living ex-president Barbara Bullock and several other defendants already have pleaded guilty, it’s a stretch to figure out why the remaining three defendants – office manager Gwendolyn Hemphill, financial manager James Baxter II, and outside accountant James Goosby – haven’t copped a plea as well. Bullock currently is serving a nine-year prison sentence.
The first to take the witness stand, on July 5, was one Errol Alderman, a close friend of Michael Martin and the son-in-law of Hemphill. Alderman, 30, established a shell company, Expressions Unlimited, on behalf of Martin. He defended his action as a favor to Martin, 45, to avoid the appearance of a … Read More ➡
For a half-decade, father and son discovered how profitable stealing from a garment workers union could be. Joseph Nardone Sr., 80, is the founder and (retired) president of International Novelty and Production Workers Local 148 in Jersey City, N.J., while his son, Joseph Jr., 51, had been president and administrator of the local’s welfare fund. The pair had been convicted last November in federal court on conspiracy and embezzlement charges. At their sentencing hearing of July 8 they found out their ways will carry a high price tag.
The Nardones were indicted in October 2002 for conspiracy to embezzle more than $350,000 from a union welfare fund in order to cover a scheme to inflate contractor project costs in the building the local occupies. The developer with whom they conspired, Stanley Rothman, already has pleaded guilty. The Nardones were convicted last November following a six-week trial; various other Local 148 … Read More ➡
A sweetheart land deal continues to produce heartaches for those involved. On June 30 the U.S. Department of Labor (DOL) sued six persons involved with a decision by the Northwest Indiana Regional Council of Carpenters Trust Fund to invest $10 million in a major real estate development near Chesterton, Ind. Back in 1998 the pension board had voted to approve the purchase, at an inflated price, of a 55-acre tract of land in the 640-acre Coffee Creek planned community in Chesterton, Ind. Now the Labor Department wants Gerry Nannenga and other trustees refund all losses incurred in the deal. The suit also names former Indiana Democratic Chairman Peter Manous, Kevin Pastrick and C. Paul Ihle as defendants. They, along with Nannenga, were convicted last year on federal corruption charges. Nannenga had taken a $45,000 bribe from Pastrick and Manous to vote for the purchase.… Read More ➡
Corruption at Local 990 at the United Food and Commercial Workers was a family affair. Last year Barbara Ann Hayes, a bookkeeper for the Greeley, Colo. meatpackers union, pleaded guilty to embezzlement. This past June 20 her brother, Stephen Bush, a former local vice-president, was indicted by a federal grand jury in Denver on 51 counts of embezzling more than $22,000. Their father, ex-local president Ronald Bush, is now the latest casualty.
In a complaint dated June 29, federal prosecutors accused the elder Bush of diverting about $8,000 in union funds toward his own personal use, much of it related to trips to Las Vegas. Bush waived his right to be charged by a federal grand jury, and was released on bond. Local 990 no longer exists, having been disbanded by the national union. Former rank-and-file members now belong to UFCW Local 7, which covers workers at the Swift packing … Read More ➡
The U.S. Department of Labor on June 29 filed a complaint against a pair of firms based in the south suburban Chicago community of Crete, Ill., alleging they had improperly charged fees to the pension and welfare plans of six union locals. Joseph/Anthony & Associates Inc., a plan administrator, and its president Michael Linder, were named in the suit. Also charged were Liz/Mar and Associates Inc. and its president, Elizabeth Linder, who also is Michael Linder’s wife. The government is seeking restitution of an unspecified amount.
This isn’t the first time that the male half of this aspiring power couple has been in trouble. In January 2004 Mr. Linder was indicted by a federal grand jury in Rockford, Ill. for mismanaging the pension plans of two Ironworkers Union locals. (Daily Southtown, 7/7).
Pittsburgh Ex-Secretary Sentenced for Embezzlement
Sonya … Read More ➡
Barbara Bullock, president of the Washington Teachers Union (WTU) from 1994 to 2002, had very expensive tastes. When it came to silverware, crystal, custom-tailored clothes and other personal items, only the best would do. The problem is that she siphoned off union funds in order to pay for them, using the local’s American Express card to make $1.2 million in illegal purchases. In all, she and top aides ripped off about $5 million in funds until their national affiliate, the American Federation of Teachers (AFT), removed them from office; FBI raids soon would follow. Bullock pleaded guilty to embezzlement in October 2003, and the following January received a nine-year prison sentence.
Though several other conspirators also had pleaded guilty to participating in the scam, three of her partners in crime insisted on fighting charges. Bullock, a cooperating witness, now has come back to haunt … Read More ➡
Another domino has fallen in the strange, violent saga of Laborers Local 91. For years the local dictated the terms of hiring at construction sites in Niagara County, N.Y. Their targets were nonunion workers and any contractor foolish enough to hire them. Their preferred methods of enforcement were vandalism, assault and extortion. In a predawn raid in 2002 federal agents arrested more than a dozen union members. In recent weeks, two of them, Anthony Cerrone and Andrew Shomers, pleaded guilty to racketeering.
Reading the tea leaves, Salvatore Bertino has become the next to go down. The 53-year-old former local vice president pleaded guilty on Tuesday, June 21 to racketeering conspiracy. At his hearing, Bertino cited five incidents in which Local 91 President Mark Congi directed him and others to engage in extortion. Seven other union officials, including Congi, are set … Read More ➡