John McKay, United States Attorney for the Western District of Washington, and John Heaney, District Director, United States Department of Labor, Office of Labor-Management Standards in Seattle, announced that on July 12, 2000, David Rux, a former Business Representative of Woodworkers Local Lodge W2 in Aberdeen, Washington, pled guilty to 7 felony counts of Union Embezzlement under U.S.C. 29, 501(c), and 15 counts of Falsification of Union Financial Records under U.S.C., 439(c). Now living in Veguita, NM, Rux will be sentenced on October 15, by U.S. Dist. Judge William Johnson (G.W. Bush) in Albuquerque. For each of the 7 counts of embezzlement, Rux faces a maximum of 5 years in prison, $10,000 in fines, and 3 years of supervised release following imprisonment. He also faces a maximum penalty of 1 year in prison, up to $10,000 in fines, and 1 year of supervised release for each of count of Falsification.… Read More ➡
On July 3, 2002, in the Superior Court of the State of Arizona, Maricopa County, Mary Katherine Johnson, former treasurer of American Federation of Government Employees Local 2552, was sentenced to incarceration for four months followed by five years probation and was ordered to make full restitution to the union of $28,853.69. She had pled guilty on June 3, 2002, to attempted theft following an investigation by the OLMS Los Angeles District Office. [DOL]… Read More ➡
Newly released documents reveal the looting of disaster relief funds in Radford as the tip of an iceberg engulfing the hierarchy of Local 9336 that stretched back six years and nearly swallowed up the union’s funds. And while four of the embezzlers have admitted their guilt in fed. court, a fifth official is a fugitive from the law.
The four who pled guilty on July 12 in Roanoke were: Edward Ramsey, President from 1996-2000: William Fricker, Grievance Cmte. Chair from ‘97-2000, when he became President: Joseph Burress, Financial Secy. from ‘98-2000: and Rhonda Creed, Vice-President from ‘97-2000. The fifth official charged, Elizabeth George, was Fricker’s campaign manager in 2000, and was appointed Recording Secy. by Fricker when he won. She also joined the relief fund formed in response to an explosion at the Intermet New River Foundry on March 5, 2000. George did not appear in court, and is considered … Read More ➡
Responding to federal labor charges filed by attorneys with the National Right to Work Legal Defense Foundation, the National Labor Relations Board (NLRB) has issued a complaint to force Teamsters Local 449 to refund dues illegally collected from employees of Laidlaw Transit Services after they were expelled from union membership for voicing opposition to the union.
The case arose when four workers, Alfonso Ditillio, June Reinard, Jill Galluzzo, and Tim Stalker, filed unfair labor practice charges with the NLRB in April 2002. In October 2001, the employees exercised their right to resign from formal union membership and to pay a reduced fee to cover only the costs of collective bargaining. However, Teamsters officials illegally refused to accept their resignations and continued charging them full union dues.
In December 2001, Teamsters officials further harassed the workers by expelling them from the union for participating in a decertification election to remove the … Read More ➡
On July 15, 2002, in the United States District Court for the Eastern District of Michigan, Lori Delaney, former bookkeeper for Sheet Metal Workers Local 80 in Southfield, pled guilty to embezzling approximately $18,000 in union funds. The charges had been brought on February 6, 2002, following a joint investigation by the Detroit Office of the U.S. Labor Dept. Office of Labor-Mgmt. Standards and the Department of Labor’s Office of the Inspector General. [DOL]
Ex-Official Admits $10K Embezzlement in Fresno, Calif.
Jeremias Lopez pled guilty on July 10 to embezzling about $10,800 from Laborers Intl. Union Local 220. She faces a maximum sentence of one year in prison and a $10,000 fine in the U.S. Dist. Ct. in Fresno. Lopez is also barred from employment or service with a union for 13 years.
Lopez was both Business Manager and Secy.-Treasurer of Local 220 from May 1996 to December 1997. … Read More ➡
Police union officials in Portland, Oregon, have rallied behind an officer indicted on July 25 for felony assault of a former girlfriend and falsification of police records.
According to the unidentified woman’s affidavit, Michael Pimentel pulled her car over on June 26, 2001, without legal cause and berated her. He allegedly showed up at her apartment the next day and refused to leave, slamming her finger in a window. The woman also charged that Pimentel seized her biceps, wrists, shoulder and breast, bruising her biceps. When the woman ran to her bedroom and locked the door, Pimentel forced it open and got into bed with her, acc. to the affidavit. Later in the day, he tried to block her car with his body to prevent her from driving away and then allegedly followed her in his car until she drove to the precinct where Pimentel is assigned.
The alleged false … Read More ➡
On July 2, 2002, in Wayne County (West Virginia) court, Dwight D. Icenhower, former secretary-treasurer of Transportation Communication Workers Lodge 6455, was indicted on one count of embezzling $3,953.44 in union funds. The charges were brought following an investigation by the OLMS Pittsburgh District Office. [DOL]
OH Treasurer Charged w/ Embezzlement of Union Funds, Employee Benefits
On July 5, 2002, in the United States District Court for the Northern District of Ohio, John Mylek II, former treasurer of Plasters & Cement Masons Local 886, was charged in an information with embezzling $7,551.28 in union funds and $675 in employee benefit plan funds. The charges were brought following an investigation by the OLMS Cleveland District Office, the FBI, and the Department of Labor’s Office of the Inspector General. [DOL]… Read More ➡
Pointing, on the floor of the U.S. Senate, to a stack of union corruption reports compiled by NLPC, Sen. Mitch McConnell (R-Ky) argued on July 10 that legislation on corporate accountability should also include unions.
McConnell spoke in support of his amendment to the Public Company Accounting Reform and Investor Protection Act, which would require unions with an annual income over $200,000 to use the same strict standards for their annual financial reports filed with the U.S. Dept. of Labor (DOL) as public corporations, and that they submit their reports to audits by a certified public accountants.
Pointing to the “stack” of NLPC’s union corruption reports just for 2002, McConnell recounted 17 of those crimes, then revealed that the DOL’s Office of Labor-Management Standards reported an average of 12 indictments and 11 convictions of union fraud per month over the last four years. “We have a choice,” McConnell concluded: “We … Read More ➡
Frmr Secy.-Treas. David Dobry pled guilty on July 2 to embezzling $61,510 from Lodge 177 of the Intl. Bhd. of Boilermakers in Green Bay, Wisc. Dobry’s plea came in the U.S. Dist. Ct., E.D. Wisc., before Chief Dist. Judge J.P. Stadtmueller (Reagan). The Secy.-Treasurer of Lodge 177 from 1987-99 was indicted on Feb. 2 for the embezzlement, and for falsifying the union’s LM-3 financial disclosure form filed with the U.S. Dept. of Labor. According to the prosecutor, Asst. U.S. Attny Erica O’Neil, that charge will be dropped at Dobry’s sentencing.
Dobry began his embezzlement in 1994 to pay for his heavy alcohol and cocaine usage. He wrote checks from the union’s account to himself, sometimes without a second signature as required, other times using the signature stamp of the frmr Lodge President, Delbert Watzka. [U.S.A.O. E.D. WI, DOL]… Read More ➡
On June 17, Roberta Cabral pled guilty in a Honolulu federal court to defrauding a non-profit organization established to benefit members of HERE Local 5 and the Intl Bhd. of Teamsters.
First, Cabral admitted to not filing tax returns for $50,000 in commissions she received in 1994 for her role in a $10 million investment made by the union non-profit, Unity House, Inc. She laundered the commissions through a British Virgin Islands corporation she controlled and used for the concealment of her income.
Second, she admitted to participating in a scheme to defraud Unity House with her now deceased co-defendant Roderick Rodriquez. According to the plea agreement, Cabral and Rodriquez a conspired to “pad” the budget of a one-hour television project funded by Unity House entitled “Heavenly Road”, later known as “Blue Hawaii”, for which she was to receive a kickback of $150,000. Cabral also pled guilty to two more … Read More ➡