AFSCME Treasurer in Illinois Pleads Guilty to Embezzlement

afscme-logoJeffrey Magelitz served as a clinical counselor to state prison inmates. Unfortunately, he may wind up being an inmate somewhere else. On August 17, Magelitz, former treasurer of American Federation of State, County and Municipal Employees Local 415, pleaded guilty in U.S. District Court for the Southern District of Illinois to embezzling more than $30,000 in union dues and to concealing the thefts in financial reports. He had been indicted last November following a probe by the U.S. Labor Department’s Office of Labor-Management Standards. Sentencing is scheduled for December 7. He faces up to six years in prison.

Magelitz, now in his mid-40s, a resident of Chester (Randolph County), Ill., for some 18 years had provided inmates at the Vienna Correctional Center in Vienna (Johnson County), Ill. with counseling services for their problems. He also had a problem of his own: He and his wife were about $225,000 in debt, … Read More ➡

Bricklayers President in Illinois Pleads Guilty to Embezzlement

bricklayers-logoPutting David Fleury in charge of union finances proved to be a mistake. Getting members their money back may turn out to be an even bigger challenge. On August 9, Fleury, former president of International Union of Bricklayers and Allied Craftworkers Local 6, pleaded guilty in U.S. District Court for the Northern District of Illinois to embezzling roughly $300,000 in funds from the Rockford, Ill.-based union. He had been charged on July 15 following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards. His sentencing is set for December 15, when he faces up to five years in prison and a restitution order.

Fleury, now 49, a resident of Rockford, headed Local 6 during January 2011-May 2015. Prosecutors had alleged that he used his office for much of that period to line his pockets. He diverted fully 153 electronic paycheck deposits totaling $284,286 into an account he controlled. … Read More ➡

The $15 an Hour Minimum Wage: A Bad Idea with a Union Label

15-an-hour-minimum-wage-rallyIt began at the fringes. And almost at warp speed, the campaign for a $15 an hour federal minimum wage has taken center stage. The Democratic Party has made it part of its platform. Presidential candidate Hillary Clinton supports it. Her intraparty rival, Bernie Sanders, has sponsored a bill to achieve it. Cities such as Los Angeles, Seattle and Washington, D.C., plus the states of California and New York, have passed laws to phase it in. Heavily promoted by organized labor, supporters insist a $15 an hour minimum is way overdue. The current $7.25 an hour, they say, has not kept pace with the cost of living, driving many Americans into poverty. This claim is way off-base. And their legislation, if fully realized, would leave a trail of frustrated job seekers and shuttered businesses. In some places, this already has begun to happen.

National Legal and Policy Center described at … Read More ➡

Security Professionals Secretary in Kentucky Indicted

spfpaOn July 14, Laura Cloyd, former financial secretary of Security, Police and Fire Professionals of America Local 112, was indicted in Campbell Court (Ky.) Circuit Court with theft by failure to make required disposition of private property in an amount of at least $500.  The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Detroit-Area SPFPA Boss Indicted for Embezzlement

spfpa logo_0On July 14, Devon Madray, president of Security, Police and Fire Professionals of America (SPFPA) Local 119, was indicted in U.S. District Court for the Eastern District of Michigan for embezzling around $20,000 in funds from the Roseville, Mich. (Macomb County)-based union.  The charge follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Washington, D.C. AFGE Secretary-Treasurer Sentenced

afge logo_0On July 15, Marcella Champion, former secretary-treasurer of American Federation of Government Employees Local 1831, was sentenced in U.S. District Court for the District of Columbia to nine months in prison to be followed by three years of supervised release for embezzling funds from the federal government security guards union. She also was ordered to perform 240 hours of community service and pay $19,152 in restitution on top of the $2,000 she already paid. Champion had pleaded guilty in May to one count of theft in the sum of $4,130 after being charged last November. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

 … Read More ➡

Ex-President of AFGE Local in Westchester County, N.Y. Sentenced

afge logo_0William Davis has found out the consequences of debit card fraud.  On July 21, Davis, former president of American Federation of Government Employees Local 1119, was sentenced in U.S. District Court for the Southern District of New York to 15 months in prison and two years of supervised release in connection with his theft of more than $120,000 in funds from the Montrose (Westchester County), N.Y.-based union.  He also was ordered to pay $150,000 in restitution plus a $100 special assessment.  Davis had pleaded guilty to one count of wire fraud in April after being charged last October.  The actions follow a joint investigation by the Department of Labor’s Office of Labor-Management Standards and the Department of Veterans Affairs’ Office of Inspector General.

Davis, a resident of Wappingers Falls, N.Y., during January 2008-October 2012 headed AFGE Local 1119, which represents about 300 employees of the VA Hudson Valley Health … Read More ➡

Longshoremen Financial Secretary in Texas Sentenced

Longshoremen's logoOn July 1, Elmer Ray Booker, former financial secretary of International Longshoremen’s Association Local 1530, was sentenced in U.S. District Court for the Southern District of Texas to five years of probation for embezzling $42,018 in funds from the Houston union.  He also was ordered to serve 100 hours of community service and pay $39,517 in restitution plus a $100 special assessment.  Booker had pleaded guilty this February after being indicted in March 2015.  The actions follow a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡

Los Angeles-Area Steelworkers Local Officials Indicted for Theft

On July 1, Joan Dutton and Tatia Clark, respectively, former president and former financial secretary of United Steelworkers Local 2801, were charged in U.S. District Court for the Central District of California in a four-count indictment for conspiracy, aiding and abetting, embezzlement, and concealment in relation to their theft of $15,935 in funds from the Signal Hill, Calif.-based union. The charges follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

SEIU, State of Minnesota Pick Pockets of Home Care Workers

home care providerIn Minnesota, the Service Employees International Union might qualify as a separate branch of government. Governor Mark Dayton, for one, wouldn’t object. Three years ago the State of Minnesota enacted a law opening the door to unionizing private home care providers for the disabled. The law soon seemed destined for oblivion. In June 2014, the U.S. Supreme Court, in Harris v. Quinn, ruled that an Illinois law forcing home care workers to pay union dues violated their free speech rights. That these employees received a portion of their incomes from state Medicaid funds, said the Court, does not subject them to a public-sector labor agreement. Yet the Minnesota law’s supporters have managed to sidestep that ruling, enriching union coffers in the process.

The Service Employees gambit in Minnesota goes back nearly five years. In November 2011, Governor Dayton, a Democrat, issued an executive order authorizing union elections for private … Read More ➡

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