Michael Bennett wrote lots of checks to himself. And his union unknowingly picked up the tab until it realized what was going on. On November 21, Bennett, former president of United Auto Workers Local 2317, pleaded guilty in U.S. District Court for the Northern District of Indiana to one count of wire fraud in excess of $100,000 against the Lafayette, Ind.-based union. He had been indicted this August. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.
UAW Local 2317 represents about 700 employees at the Fairfield Manufacturing plant in Lafayette. According to federal prosecutors, Bennett, who headed the union during 2006-15, forged the signature of the local treasurer on about 170 checks to cover nonexistent “travel expenses.” Having forged the checks, he either cashed them or deposited them into his own account. He also rented out the union hall for outside functions, but without … Read More ➡
On November 22, Wanda Rosenboro-Correa, former secretary-treasurer of American Federation of Government Employees Local 2798, pleaded guilty in U.S. District Court for the District of Columbia to one count of theft of funds from the Washington, D.C. union in the amount of $13,803. She had been indicted in August. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On November 17, David Maddy, former financial secretary-treasurer of United Auto Workers Local 2339, was charged in Rush County, Indiana Circuit Court with one count of theft of funds in the amount of $37,197 from the Rushville union. The charge follows a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡
On November 17, Brian Scott, former president and business manager of International Brotherhood of Electrical Workers Local 503, pleaded guilty in U.S. District Court for the Southern District of New York to one count of mail fraud against the Monroe (Orange County), N.Y.-based union. He had been hit with a superseding indictment in August on one count each of embezzlement, mail fraud and false reporting following his arrest in February and an earlier indictment the previous October. Scott, now a resident of Miami Beach, Fla., had been accused of making unauthorized charges from union accounts totaling $66,954 during the period July 2008-February 2012. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On November 10, Bob Buford, former president of United Auto Workers Local 2419, pleaded guilty in U.S. District Court for the Central District of Illinois to one count of mail fraud in the amount of more than $128,000 against the Danville, Ill.-based union. He had been indicted this March following a probe by the U.S. Labor Department’s Office of Labor-Management Standards. Local 2419 represents workers at the Danville assembly plant of FreightCar America.… Read More ➡
As the Obama era makes its exit, many recent regulations also may be on their way out as well. Among them: a Department of Labor rule that would expand eligibility for overtime pay for over four million currently salaried workers. On November 22, a Texas federal court, in response to challenges filed by 21 states and several business groups, issued a preliminary injunction blocking enforcement. “The State Plaintiffs have shown a likelihood of success on the merits because the Final Rule exceeds the Department’s authority,” concluded the court. Should the DOL not appeal, either the Trump-led DOL will withdraw the rule or the new Congress will repeal it. Either way, employees and employers would be better off. Had the rule gone into effect as scheduled on December 1, some unwelcome problems would have erupted.
Union Corruption Update has analyzed the overtime regulation and its likely consequences on three previous occasions. … Read More ➡
The violence may be a memory, but there is now a welcome reminder of the consequences. Last Thursday, December 8, a St. Louis County, Mo. jury found a young black male, Jeffrey Williams, guilty on six criminal counts related to the malicious gun wounding of two unnamed police officers in the St. Louis suburb of Ferguson in March 2015. The incident occurred during a street rally organized by the radical social media network, Black Lives Matter, to protest the shooting death of an “unarmed” black male, Michael Brown, by a white Ferguson cop the previous August. A grand jury months later had decided the evidence was insufficient to indict the officer, an announcement that triggered destructive rioting. Reprehensible as the rioting and shootings were, the Obama administration tacitly encouraged this behavior.
If any one event underscores the futility of achieving a ‘post-racial’ society in contemporary America, the death of Michael … Read More ➡
In the world of organized labor, debt accumulation all too often leads to embezzlement. Jeffrey Magelitz is a clear-cut case. On Tuesday, December 6, Magelitz, former treasurer of American Federation of State, County and Municipal Employees (AFSCME) Local 415, was sentenced in U.S. District Court for the Southern District of Illinois to two years of probation, six months of home detention and 100 hours of community service for embezzling around $30,000 from the union, which represents employees at the Vienna Correctional Center (Johnson County), Illinois. He had pleaded guilty in August after being indicted last November. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.
Jeffrey Magelitz, now in his mid-40s, a resident of Chester, Ill., for years had provided counseling to inmates at the Vienna facility. Unfortunately, he could have used some debt counseling. He and his wife had accumulated about $225,000 in debt, … Read More ➡
On November 7, Bernadine Bell, former treasurer of International Alliance of Theatrical Stage Employees Local 757, was sentenced in U.S. District Court for the Eastern District of Michigan to 30 days of incarceration and three years of supervised release for embezzling $73,000 in funds from the Detroit union. She also was ordered to pay $55,600 in restitution on top of the $17,400 she already paid, plus a $100 special assessment. Bell had pleaded guilty in July after being charged in June. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡
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 ➡