Carl Horowitz's blog

Firefighters Treasurer in SE Virginia Indicted for Embezzlement

IAFF logoSheron Gibson had built an excellent reputation over the years. Apparently, he also was willing to undermine it. On June 25, Gibson, a longtime firefighter with the City of Suffolk, Virginia, was indicted in a state circuit court on 12 counts of embezzlement and one count of forgery following his arrest for the theft of at least $50,000, and likely more than $100,000, from the union where he served as treasurer, Local 2801 of the International Association of Fire Fighters (IAFF). Following his arrest, he was released on a $2,500 bond.

NLRB Reviews Teamster Petition to Expand Definition of 'Dual Employer'

Trash haulerWhen does being employed by a contractor also mean being employed by the corporation with whom it contracts? The National Labor Relations Board currently is reviewing this issue in a potential landmark case. If the board rules in favor of a Teamsters local in California, unions everywhere could have a  powerful organizing weapon. The union had filed a petition back in July 2013 to represent workers at a San Francisco Bay Area recycling plant. A labor contractor, Leadpoint Business Services, handles hiring, wages and other personnel issues at the plant on behalf of the plant owner, Browning-Ferris Industries (BFI) of California Inc. The union wants the board to classify Leadpoint and BFI as a dual employer for collective bargaining purposes.

Former Treasurer of Amtrak Police Union Arrested, Indicted

Amtrak trainThe union representing security employees of Amtrak, the nation's federally-chartered rail passenger corporation, was missing funds. It didn't have far to look for the source of the problem. On June 24, Eric Givens, a longtime Amtrak police officer, was charged in U.S. District Court for the Southern District of New York with one count each of wire fraud, embezzlement and making a false statement related to his alleged theft of at least $100,000 in funds from the Amtrak Police Labor Committee, and a Fraternal Order of Police affiliate, each of which he had served as treasurer. He had been arrested earlier that day. Three weeks later, on July 15, he was indicted by a grand jury. The actions follow an investigation by the Labor Department's Office of Labor-Management Standards and Office of Inspector General, and the Amtrak Police Department's Office of Internal Affairs.

Letter Carriers Secretary in Alabama Sentenced for Embezzlement

NALC logoOn June 26, Harold Ray, former secretary of National Association of Letter Carriers (NALC) Branch 469 and the NALC Alabama State Association, was sentenced in U.S. District Court for the Southern District of Alabama to two months in prison and three years of supervised release for embezzling funds from the two labor organizations, located, respectively, in Mobile and Birmingham. He also was ordered to pay combined restitution in the amount of $31,954 plus a $100 special assessment. Ray had been indicted in January for embezzling $38,565; he pled guilty in March. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Court Forces Government to Release Documents in Fannie/Freddie Suit

Fannie Mae/Freddie MacThe burden carried by the holders of stock in mortgage giants Fannie Mae and Freddie Mac, each operating for nearly six years under federal conservatorship, just got lighter. On July 16, U.S. Court of Federal Claims Judge Margaret Sweeney, in a procedural ruling, held that shareholder-plaintiffs in Fairholme Funds Inc. et al. v. United States are entitled to know material facts that the government wants to keep secret. The shareholders are seeking compensation for foregone income resulting from the Treasury Department's "sweep" rule of August 2012, which forced the companies to forward all dividends to the department in perpetuity. Government lawyers had filed a motion for a protective order on May 30 to inhibit discovery. The outcome of this case will have major implications for the future of property rights in this country.

Former Letter Carriers Boss In Kentucky Indicted

NALC logoOn June 13, David Lynch, former president and treasurer of National Association of Letter Carriers Branch 383, was indicted in the McCracken County, Kentucky Circuit Court for theft of more than $10,000 in funds from the Paducah-based union. The indictment follows an investigation by the Labor Department's Office of Labor-Management Standards.

Steelworkers President in South Carolina Charged with Theft

Steelworkers logoOn May 14, Timothy Gamble, former president of United Steelworkers Local 378, was charged in U.S. District Court for the District of South Carolina with embezzling $9,345 in funds from the Aynor (near Myrtle Beach) union during May 2010-May 2013. The charge follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Individual Sentenced for Theft from Washington, D.C. MEBA Affiliate

Marine Engineers logoOn June 12, Dianna Woodall was sentenced in U.S. District Court for the District of Columbia to three years of supervised probation and 100 hours of community service for participating in a scheme to cash a $9,836 counterfeit check drawn on a bank account of Marine Engineers Beneficial Association (MEBA) District 1, based in Washington, D.C. She also was ordered to pay full restitution. Woodall had pleaded guilty in March after being charged earlier than month. Another individual, Kenneth Marshall Jr., also had pleaded guilty in March to cashing two counterfeit checks totaling $18,851 drawn on that MEBA account. A union spokesman informed NLPC at the time that neither was a union member. The sentencing of Woodall follows a joint probe by the FBI and the U.S. Labor Department's Office of Labor-Management Standards and Office of Inspector General.

Former Secretary-Treasurer of Denver-Area AFGE Local Indicted

AFGE logoOn June 3, Aide Spade, former secretary-treasurer of American Federation of Government Employees Local 709, was indicted in U.S. District Court for the District of Colorado on four counts of concealing union disbursements to her. The Littleton-based union represents employees of the Colorado state prison system. The indictment comes six years after an audit by the Labor Department's Office of Labor-Management Standards (see pdf) showed a lack of documentation by Spade of credit card and other supposedly union-related expenses.

New Book Exposes Attorney General Holder's Abuses of Power

book coverShould perpetuating racial grievance be the defining mission of a U.S. Attorney General? Eric Holder, who has held the office for the past five and a half years, really believes it is - and acts accordingly. A new book, Obama's Enforcer: Eric Holder's Justice Department (Broadside), presents a strong case for removing Holder from office as a corrective to his many abuses of power related to racial and other issues. In 256 pages, authors John Fund and Hans von Spakovsky pull no punches in revealing how Holder and other department officials routinely have subordinated rule of law to radical politics, all the while stonewalling Congress and punishing internal dissenters. They also, properly, point a finger at Holder's boss, President Obama.

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