United States Attorney John K.Vincent announced on July 19 that Mary Dolores Anderson pled guilty to embezzling nearly $90,000 as a union officer from 1993 to 1999. Anderson faces a sentence of up to five years imprisonment and up to a $10,000 fine. Her sentencing is scheduled for October 4, 2002 before U.S.District Court Judge Garland E. Burrell,Jr. (E.D. Calif., G.H.W. Bush)
According to Asst. U.S.Attorney Christopher P. Sonderby, who is prosecuting the case, Anderson served from 1993 to 1999 as the Secretary-Treasurer of the Communication Workers of America Local 9417, a Stockton union made up of about 700 Pacific Bell employees in San Joaquin County. In FY 2000, the Local had $189,307 in receipts, 94% of which came in the form of members' dues, acc. to the union's LM-3 financial disclosure form filed with the U.S. Labor Dept.
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]
Indiana Official Admits to Forgery On June 25, 2002, in Marion County (Indiana) court, Mack Dykes, former president of American Federation of Government Employees Local 1411, pled guilty to two counts of forgery in the amount of $7,100. He had been indicted on March 21, 2002, following an investigation by the OLMS Cincinnati District Office. [DOL]
U.S. Dist. Judge. J. Thomas Greene, Jr. (D. Utah, Reagan) sentenced Jill C. Gonzales, the spouse of an ex-secretary-treasurer of Bhd. Maintenance of Way Employees Local 1227 in Ogden, Utah, May 23 to six months home confinement and 24 months probation (concurrent with the home confinement) for stealing $49,709.46. She pled guilty to mail fraud on Mar. 13. Green also ordered her to pay full restitution; $27,861 in of the total embezzlement amount was outstanding at sentencing. [DOL 5/23/02]
On May 30, Jimmy Reed, ex-secretary-treasurer of Communications Workers of Am. Local 3295 in the Atlanta area, pled guilty to a one-count information charging him with false recordkeeping. He was charged Apr. 18. Reed was sentenced to six months home confinement to run concurrently with six months probation. [DOL 5/30/02]
Union corruption watchdog, the Nat'l Legal & Policy Ctr., has demanded the resignation of several Ullico, Inc., board members allegedly involved in the growing insider trading scandal. NLPC sent a open letter May 16 to three board members of the union-dominated insurance firm: Robert Georgine, Ullico chairman, Morton Bahr, Communications Workers of Am. president, and Douglas McCarron, United Bhd. of Carpenters president. Each potentially made huge profits at the expense of union members, whose pensions invested in Ullico stock.
U.S. Dist. Judge Lewis T. Babcock (D. Colo., Reagan) sentenced union embezzler Bobby R. Putnam Apr. 23 to five years probation, including six months in home detention with electronic monitoring, and was ordered to pay $18,026.95 in restitution. Putnam, ex-secretary-treasurer of Communications Workers of Am. Local 14708 (a.k.a., Denver Mailers Union No. 8) in Denver, was charged Oct. 31 in a 40-count indictment with embezzling $7,808.26 and falsifying union records. He later pled guilty. The reason for the $10,218.69 difference between the indictment and the restitution amounts was unavailable.
As reported in the last issue, a federal grand jury in Washington, D.C., is probing stock transactions by directors of a union-dominated insurance firm ULLICO linked to the now bankrupt firm, Global Crossing. The Wall St. Journal reports that internal documents reveal that ULLICO officers and board members cashed in on some 71,000 ULLICO shares between Jan. 2000 and Sept. 2001, possibly at the expense of the very union pension funds to which they owed a fiduciary duty. The profits were potentially huge. For example, Martin J. Maddaloni, president of the United Ass'n of Plumbers & Pipe Fitters, allegedly reaped a $184,000 profit from timely selling of a mere 2,000 shares of his ULLICO stock back to ULLICO in 2000.
More than two dozen union presidents were reportedly invited to buy shares in Global Crossing, as the Bermuda-based telecom was first offering its stock to the general public. Now a federal grand jury in Washington, D.C., is probing stock transactions by directors of insurance and investment firm ULLICO (f.k.a. Union Labor Life Ins. Co.), a union-dominated firm founded by the AFL. ULLICO's board is chaired by ex-AFL-CIO Building & Construction Trades Dep't president Robert A. Georgine and includes many current and ex-union presidents.
Reportedly, the investigations focus on trading privileges that allegedly allowed ULLICO's board members to profit from the purchase and sale of its shares. The transactions were lucrative because the privately held company's stock price was reset each year based on its book value and the board members could anticipate the change. ULLICO's shares had risen on the strength of several deals, including a $500 million profit on a $7.6 million investment in telecom firm Global Crossing, which declared bankruptcy in Jan. 2002.
Leonard M. Duge, ex-vice president of Communications Workers of Am. Local 59053 (a.k.a., National Association of Broadcast Employees & Technicians Local 53) in Burbank, California, admitted Feb. 25 to embezzling $22,137.66 from the local between Jan. 1996 and June 1998. He submitted fraudulent salary loss vouchers to Local 59053, was reimbursed, and spent the money on personal expenses. In exchange for the guilty plea, the U.S. Atty.’s Office in Los Angeles charged Duge on Mar. 5 with only a single count of falsification of union records. The plea agreement stated that Duge has made full restitution of $22,137.66.
The government board that runs Passaic County's (N.J.) welfare agency has taken the unusual step of filing an unfair labor practice charge against Communications Workers of America Local 1081, demanding that its leaders apologize for injecting race into their rhetoric and stop interfering with "management rights. " The Board of Social Services has complained that Local 1081 bosses have tried to intimidate the board by raising discrimination issues while opposing a controversial promotion.