On October 25, Laura Cloyd, former financial secretary of Security, Police and Fire Professionals of America Local 112, was sentenced in Campbell County, Kentucky Circuit Court to three years of diversion and ordered to pay $1,669 in restitution for theft of funds from the Alexandria, Ky.-based union. She had pleaded guilty in September after being indicted in July. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On October 25, Roy Murray, former president of Transport Workers Union Local 2014, was sentenced in U.S. District Court for the Northern District of Illinois to two years of probation for making a false entry in financial records of the Chicago union. He also was ordered to pay $31,111 in restitution and a special assessment of $25, plus serve 80 hours of community service. Murray had pleaded guilty on July 25, one week after being charged. The actions follow an investigation by the Labor Department’s Office of Labor-Management Standards.… Read More ➡
Assane Faye was quick to lend a helping hand. It was a perfect opportunity to help himself. On November 25, Faye, founder and former president of the United Security and Police Officers of America (USPOA), was sentenced in U.S. District Court for the District of New Jersey to 37 months in prison and three years of supervised release for embezzling at least $350,000 in funds from the Washington, D.C.-based union. He also was ordered to make full restitution. Faye had been convicted by a jury this May on two counts of embezzlement and seven counts of unemployment insurance fraud after being indicted nearly two years ago. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
On October 26, Charles Burke, former treasurer of Utility Workers Union of America Local 365, was sentenced to three years of probation in Nassau County (N.Y.) District Court for embezzling $111,000 from the Valley Stream-based union, which represents employees of American Water. He also was ordered to pay the remaining $37,000 in restitution. Burke had pleaded guilty to larceny and fraud in April following his arraignment in March. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡
On October 18, Jared Henson, former president of American Federation of Government Employees Local 420, was charged in the Circuit Court of Preston County, West Virginia with two counts of embezzlement in an amount exceeding $1,000 and one count of falsifying records to cover up the thefts from the Bruceton Mills-based union, which represents employees of Hazelton federal prison. Henson, 40, is a resident of Frostburg, Md. The charges follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡
On October 24, Devon Madray, president of Security, Police and Fire Professionals of America (SPFPA) Local 119, pleaded guilty in U.S. District Court for the Eastern District of Michigan to one count of embezzling $20,097 in funds from the Roseville (suburban Detroit) union. He had been indicted in July. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
It was one of the stranger union scams, stretching from suburban Washington, D.C. to the Arab nation of Qatar. And the defendants reaped what they sowed. On November 1, Anthony Frederick Sr., former business manager of Laborers International Union of North America (LIUNA) Local 657, pleaded guilty in U.S. District Court for the District of Columbia to fraud and theft charges in connection with the diversion of over $1.7 million in funds from the Washington, D.C.-based union to a suburban Maryland firm, STS General Contracting. Three weeks later, on November 22, STS owner Gary Cooper was convicted by a Washington trial jury on similar charges. A Maryland real estate agent, Christopher Kwegan, previously had pleaded guilty in the case. The convictions follow indictments handed down in October 2015.
LIUNA Local 657 represents roughly 1,500 construction workers in the Washington, D.C. area. It also for a while served as a source … Read More ➡
On October 18, Frank Gluberman, former secretary-treasurer of the Greenburgh Teachers Federation, an affiliate of the American Federation of Teachers, was sentenced in Westchester County (N.Y.) District Court to one to three years in prison for embezzling nearly $800,000 from the union over a seven-year period. He also was ordered to pay restitution totaling $822,281. Gluberman, a former teacher and assistant principal at Greenburgh High School, had pleaded guilty to grand larceny in August 2014 after being arrested in January of that year. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Union health care fraud is well and alive on the West Coast. On October 14, David Gomez, a member of International Longshore and Warehouse Union (ILWU) Local 13, was convicted by a federal jury in Los Angeles on 20 counts of mail fraud in connection with a scheme to bill the local health care plan for nonexistent, unnecessary or unauthorized chiropractic services. Another co-defendant, Sergio Amador, similarly pleaded guilty earlier this year. Through various scams the defendants stole at least $3 million. Gomez and Amador, respectively, are set for sentencing on January 9 and December 1. ILWU Local 13 represents dockworkers at Port of Los Angeles and Port of Long Beach. The actions follow a joint investigation by the FBI, and the U.S. Labor Department’s Office of Inspector General and Employee Benefits & Security Administration.
Gomez and Amador opened a medical and chiropractic clinic in Long Beach in 2009 operating … Read More ➡
Union health plans have become one of the largest targets of scams in this country. Nermin Awad El-Hadik, for one, is evidence of that. On November 9, El-Hadik, owner of a Houston-area pharmacy, pleaded guilty in U.S. District Court for the Western District of Texas to paying more than $5 million in kickbacks to an Austin-area chiropractor, part of a larger scheme that cost the Department of Labor tens of millions of dollars in questionable or false worker’s compensation claims. Ms. El-Hadik, who faces up to five years in prison, has agreed to make restitution. She remains free pending sentencing. This and related actions follow a joint investigation by the FBI, IRS, U.S. Army, U.S. Postal Service and U.S. Labor Department’s Office of Inspector General.