Carl Horowitz's blog

Kevin Clor's intentions may have been good, but members of the union he represented might not be impressed. Clor, formerly general counsel for New York State Thruway Employees Local 72, was indicted in Manhattan state court on January 25 on charges of embezzling more than $211,000 from the Teamsters-affiliated union, which represents some 2,500 toll collectors and other Thruway employees. Working out of his Buffalo home office, the defendant allegedly used his position to generate phony receipts enabling him to receive funds from two separate union accounts. "Instead of representing their best interests, (Clor) now stands accused of violating their trust and using his position to enrich himself illegally," said District Attorney Cyrus Vance Jr. Clor has pleaded not guilty and is free on $75,000 bail.

On November 15, Mary Lynn Otten, former secretary-treasurer of American Federation of Musicians Local 26, was charged in U.S. District Court for the Central District of Illinois with filing false financial information on behalf of the Peoria union. She then pleaded guilty. The charge and guilty plea follow a probe by the Labor Department's Office of Labor-Management Standards.

On November 14, Charles McDaniel, former general chairman of United Transportation Union General Committee of Adjustment 341, was sentenced in U.S. District Court for the Western District of Missouri to five years probation and ordered to pay $68,365.62 in restitution and a $100 special assessment. McDaniel had been charged in April with wire fraud in the theft of $44,889.62 from the St. Joseph, Mo.-based union and another $36.629.29 from Burlington Northern Santa Fe Railroad, pleading guilty immediately afterward. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

On November 14, Perry Taylor, former vice president of American Federation of State, County and Municipal Employees Local 1820 in Pontiac, Mich., was sentenced in U.S. District Court for the Eastern District of Michigan to two years probation and ordered to pay $5,897.60 in restitution and a special assessment of $25 for aiding and abetting union financial records fraud. He had pleaded guilty in July. The sentencing follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Ann Kelly can be thankful she paid back what she took. On November 16, Kelly, formerly secretary-treasurer of American Federation of Government Employees Local 2814, was sentenced in U.S. District Court for the Southern District of Iowa to three years probation and six months home confinement for embezzling $33,296.28 in funds from the Council Bluffs union. She also was ordered to pay a $5,000 fine and a $100 special assessment. The retired federal railroad inspector had pleaded guilty to one count of wire fraud back in August for stealing the money during 2002-07 to pay off credit cards and help family members. Kelly pleaded for leniency, stating that she had paid the money back after dipping into her retirement savings. The sentencing follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

One of the defining features of union activism during the Obama years is a heavy reliance on federal agencies and courts to do things that Congress isn't likely to do, especially now that Republicans hold a majority in the House. Sometimes merely waiting for the right ruling can pay off. On December 16, the U.S. District Court for the District of Columbia ruled 2-1 that the National Mediation Board (NMB), an independent body overseeing labor relations in the railroad and airline industries, had the authority to issue a rule change making it easier for unions to win representation elections.

On November 9, William Geisler, former secretary-treasurer of Glass, Molders, Pottery, Plastics and Allied Workers International Union Local 45, was indicted in Franklin County (Columbus) Court of Common Pleas on one count of felony theft in the amount of $4,295. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

On November 9, Derek Klingman, former secretary-treasurer of United Transportation Union Local 1006, was indicted in U.S. District Court for the Southern of Pennsylvania for embezzling $9,354.84 in funds from the Finleyville, Pa. (near Pittsburgh) union. The charge follows a probe by the Labor Department's Office of Labor-Management Standards.

On November 4, Michelle Jean Nelson, ex-president of Communications Workers of America Local 7272, entered an Alford plea in Polk County (Minn.) Circuit Court to felony theft by false representation in an amount between $1,000 and $5,000 from the Erskine, Minn. (near Grand Forks, N.D.) union. An Alford plea is a guilty plea, but one in which the defendant does not admit committing the alleged act, but instead concedes that the evidence for a conviction is sufficient beyond a reasonable doubt. Nelson had been charged in March. The charge and Alford plea follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Sometimes the unfinished business of a strike can take years to resolve. In the case of Donny Douglas and Jay Campbell, it was close to 15 years. Douglas and Campbell, each a former officer with United Auto Workers (UAW) Local 594 in Pontiac, Mich., were sentenced in Detroit federal court on December 19 for conspiracy to commit extortion and violate the Taft-Hartley Act. The pair had used their bargaining leverage to extend a strike in 1997 against General Motors by telling GM negotiators if they didn't hire Campbell's son and the son of another UAW official for high-paying jobs, the strike would continue. Douglas received 18 months in prison, while Campbell received 12 months and day in prison.