Carl Horowitz's blog

Kansas City, Mo. AFSCME President Pleads Guilty to Fraud

AFSCME logoOn October 7, Jesse Morgan, former president of American Federation of State, County and Municipal Employees (AFSCME) Local 1707, pleaded guilty in U.S. District Court for the Western District of Missouri, to one count of wire fraud from the Kansas City, Mo. union. He had been indicted in February on 29 counts of fraud in connection with his embezzlement of at least $185,000 in union funds during his four years at the helm. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Bakery Workers Office Assistant in Denver Sentenced for Embezzlement

Bakery Workers logoOn October 9, Mary Grace Gossett, former office assistant for Bakery, Confectionery, Tobacco Workers & Grain Millers Local 24, was sentenced in U.S. District Court for the District of Colorado to five years of probation, and ordered to pay $41,622 in restitution and a $300 assessment, for embezzling funds from the Denver-based union. She had pleaded guilty in July after being charged in May. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

NLRB Ruling Gives Unions Advantage in E-Mail Organizing

emailThe National Labor Relations Board's has changed in size and composition several times during the Obama administration, but its built-in pro-union majority has remained constant. Labor officials lately are feeling pretty glad about that. On December 11, the NLRB ruled 3-2 that employees with access to an employer e-mail system can use the system for union organizing during "nonworking time." The ruling, Purple Communications Inc., overturns a 2007 NLRB decision, Register Guard, which held that a company has the discretion to ban non-business-related e-mail interactions among workers, including union-related ones. The board insists the impact of its newest ruling is "limited." Yet unions, especially the Communications Workers of America, see a clear victory - and expanded organizing opportunities. And they're probably right.

United Transportation Union Political Director in Nebraska Declines Plea Deal

United Transportation UnionRay Lineweber has decided to take his chances. On December 2, Lineweber, formerly political director of the United Transportation Union, Nebraska Legislative Board 30, told a federal judge in Lincoln that he would not take a deal offered by prosecutors. His statement was in response to his indictment last November for embezzling $102,907 in funds from the Omaha-based labor organization and then concealing the thefts through false-record keeping. This sets the stage for a trial in February. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

SE Virginia Letter Carriers President Charged with Embezzlement

NALC logoOn October 6, Jeffrey Jones, former president of National Association of Letter Carriers Branch 6066, was charged in U.S. District Court for the Eastern District of Virginia with one count of embezzlement from the Chesapeake, Va. union in the amount of $7,649. The charge follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Southern California Public Employee Union Sues Ex-Official for Stealing $700K+

San Bernardino, California It would be an understatement to say that relations between the San Bernardino Public Employees Association (SBPEA) and its former general manager, Robert Blough, have been a lot better. On October 17, the independent union, which represents about 11,000 of 23,000 San Bernardino County, Calif. employees, filed a civil suit against Blough, alleging that he had stolen or misspent more than $700,000. The suit, filed in County Superior Court, seeks to recoup the missing money, plus associated costs. The action came two weeks after the union delivered the information to the district attorney, requesting an investigation and, if necessary, a criminal prosecution. Blough is hardly in a mood to settle. On November 20, he filed a response alleging the union was complicit in any and all illicit activity.

St. Louis Mail Handlers President Sentenced for Thefts

LIUNA logoOn December 10, Anthony Davis, former president of National Postal Mail Handlers Union Local 314, a Laborers affiliate, was sentenced in U.S. District Court for the Eastern District of Missouri to one year and nine months in prison, and ordered to pay full restitution, for embezzling more than $40,000 in funds from the St. Louis-based union. He had been convicted by a jury in September after being indicted in April. Prosecutors had alleged that Davis, now 52, a resident of O'Fallon, Ill., had submitted fake invoices to the union and pocketed the reimbursements. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

East Texas Auto Workers Local President Pleads Guilty

Auto Workers logoOn September 30, Jerry Ragster, former president of United Auto Workers Local 3057, pleaded guilty in the 71st District Court of Harrison County, Texas to theft of $3,372 in funds from the Marshall, Tex.-based union. He made full restitution during his plea. Ragster had been indicted in November 2013 after an investigation by the U.S. Labor Department's Office of Labor-Management Standards. UAW Local 3057 represented employees of Dana Corp. at the auto parts supplier's Longview plant until its closure in 2012.

Security Union Treasurer in Washington, D.C. Sentenced for Fraud

Security guardOn September 30, Patricia Moore, former secretary-treasurer of the National Union of Protective Services Associations (NUPSA), was sentenced in U.S. District Court for the District of Columbia to 150 days of home confinement and four years of supervised probation for conspiracy to commit wire fraud from NUPSA and a related Washington, D.C.-based union, the National Union of Law Enforcement Associations. She also was ordered to pay $107,346 in restitution and a $100 assessment. Moore had been charged on October 13, 2011 for defrauding the unions in the amount of $109,866.17; she pleaded guilty two weeks later. The actions follow a joint probe by the U.S. Labor Department's Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration.

Locomotive Engineers Secretary-Treasurer in Kansas Pleads Guilty

BLET logoOn September 29, Dale Hull, former secretary-treasurer for Brotherhood of Locomotive Engineers Division 261, pleaded guilty in U.S. District Court for the District of Kansas to one count of embezzling union funds from the Herington, Kan.-based union. He had been indicted in July on five counts of embezzling more than $14,000. The guilty plea and indictment follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

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