Supreme Court’s Janus Ruling Thwarts Union Monopoly Power

Public-sector unions, long accustomed to getting their way, received a rude awakening this morning. By 5-4, the U.S. Supreme Court ruled in Janus v. AFSCME Council 31 that nonmember state and local government employees are not required to pay partial dues (“agency fees”) to a union representing them. The decision overturns over 40 years of union monopoly power now practiced in nearly two dozen states. In so doing, it will hamper the ability of public-employee unions to route dues collections toward political activism. Justice Samuel Alito, writing for the majority, stated, “States and public-sector unions may no longer extract agency fees from nonconsenting employees.” Union officials fear that millions of workers now will be able to choose whether or not to pay dues. Frankly, such a prospect should be welcomed, not feared.

Union Corruption Update described this case in detail last fall after the Supreme Court had granted standing. Mark … Read More ➡

Maxine Waters’ Call for Harassing Trump Cabinet Is Dangerous

“Congress,” observed H.L. Mencken, “consists of one-third, more or less, scoundrels; two-thirds, more or less, idiots; and three-thirds, more or less, poltroons.” Rep. Maxine Waters, D-Calif., qualifies as all three. At a weekend rally, Waters exhorted her audience to “get out and…create a crowd” if they see a Trump official in public venue. “If you see anybody from that cabinet in a restaurant, in a department store, at a gasoline station, you get out and you create a crowd and you push back on them,” she declared. “Tell them they’re not welcome anymore, anywhere.” Her fatwa, which followed the publicized ejection of White House Press Secretary Sarah Huckabee Sanders from a Virginia restaurant, amounts to a call for criminal harassment. What’s especially scary is that she’ll have takers.

Congresswoman Maxine Waters, who represents residents of South-Central Los Angeles and surrounding communities, has been in Washington too long. That can … Read More ➡

New York Accounting Execs Charged with Concealing Union Benefit Thefts

An organization hires a certified public accountant as its first line of defense against being sued or ripped off. Salvatore Armao and Karen Auer, respectively, the founder-managing partner and a principal officer of the Garden City (Nassau County), L.I.-based accounting firm Armao LLP, apparently forgot their mission. On June 1, the U.S. Justice Department announced that the pair had been charged in Manhattan federal court with aiding and abetting the embezzlement of over $100,000 from a benefit plan of an unspecified union. Each surrendered to authorities that morning. The actions follow an investigation by the U.S. Labor Department’s Office of Inspector General and Employee Benefits Security Administration, with assistance from the FBI and the Justice Department’s Labor-Management Racketeering Unit.

According to federal prosecutors, Salvatore Armao, 64, a resident of Queens, N.Y., and Karen Auer, 47, a resident of Bethpage, N.Y., had the wrong kind of loyalty to a client. From … Read More ➡

AFSCME President in Maryland Pleads Guilty to Theft

On June 5, Sophia Love, former president of American Federation of State, County and Municipal Employees Local 2751, pleaded guilty in the Circuit Court for the City of Baltimore to one count of theft in the sum of $15,548 from the Baltimore union. She had been indicted last August following a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

SPFPA President in Maryland Enters Alford Plea for Theft

On June 1, Keith Franzese, former president of Security, Police and Fire Professionals of America Local 275, entered an Alford plea in the Circuit Court for Prince George’s County, Md. to one count of theft in an amount of $67,624 from the Greenbelt, Md.-based union. He had been indicted on multiple counts last November for thefts of a substantially greater sum. In an Alford plea, the defendant does not formally admit to have committed the offense but admits that the evidence is sufficient for a conviction. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Texas Local Glass Workers President Charged; Pleads Guilty

On May 29, Charles Webster, former president of Glass, Molders, Pottery, Plastics and Allied Workers Local 284, was charged in U.S. District Court for the Eastern District of Texas with one count of failing to properly maintain financial records of the Longview-based union. He then pleaded guilty. GMP Local 284 recently reaffiliated itself with the United Steelworkers. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡

IATSE Secretary-Treasurer in SE Virginia Pleads Guilty to Embezzlement

On May 29, Christopher Mulhall, former secretary-treasurer of International Alliance of Theatrical Stage Employees Local 264, pleaded guilty in U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit wire fraud and embezzlement from the Hampton union in the amount of $57,310. He had been charged on May 11. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

The Mysteries of the House IT Scandal

It’s the Washington conspiracy that barely speaks its name. And unlike the incandescent “Russian interference” scandal dominating the news for well over a year, this one has the potential to cause grave harm to our national security. The maypole of this “other” conspiracy is a Pakistan-born immigrant, Imran Awan, aided by extended family and friends. As information technology security specialists for dozens of Democrats in the House of Representatives, the family allegedly used their ample incomes from their Capitol Hill jobs and various shady side businesses to assist the Pakistani government. Mr. Awan was arrested by the FBI nearly a year ago. He and his wife would be indicted for bank fraud soon after. They now also need to investigated for the possibility of espionage. Such a probe must shine a light not only on the Awans but also on their main enabler, Rep. Debbie Wasserman Schultz, D-Fla. (in photo).… Read More ➡

Chrysler Executive Pleads Guilty to Concealing Facts in UAW Scandal

Michael Brown might not have been a player in the Chrysler-United Auto Workers pay-for-play scandal that broke wide open last summer, but he was a knowledgeable spectator all the same. And that didn’t sit well with the feds. On May 25, Brown, formerly Fiat Chrysler’s director of employee relations, pleaded guilty in U.S. District Court for the Eastern District of Michigan to one count of misprision of a felony in connection with the bribing by Chrysler management of several UAW officials with money and other things of value to drop certain issues during collective bargaining sessions a few years ago. Five other people have pleaded guilty so far. The actions follow a joint probe by the FBI, the IRS, and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

According to prosecutors, Brown was aware that certain Fiat Chrysler executives had made or authorized payments to … Read More ➡

AFGE President in California Charged with Fraud

On May 22, Roger Harris, former president of American Federation of Government Employees Local 3048, was charged in U.S. District Court for the Central District of California with one count of wire fraud in the amount of $36,150 against the union, which represents employees of Lompoc federal prison. The indictment follows a joint probe by the Labor Department’s Office of Labor-Management Standards, and the Office of Inspector General for each of the Justice Department and the Treasury Department.… Read More ➡