Michael Kennedy no longer will have his union to pay for personal expenses.On February 1, the former secretary-treasurer for Local 720 of the International Brotherhood of Painters and Allied Trades, was sentenced in U.S. District Court to five years probation for embezzling $15,612.81.Kennedy, 46, had written 84 unauthorized union checks to himself, cash and third parties during October 22, 2003-March 22, 2005.Court records state he also forged the names of other officials of the Butte, Montana local, and made false entries in its books to conceal the thefts.The thefts were discovered when nine of the checks bounced.Kennedy pleaded guilty last fall.(Associated Press, 2/2/07).
Ex-Local Business Manager in Ohio Sentenced for Bank Fraud
On January 22, Michael Griffie, an associate of a Cincinnati-area contractor, Electrical Innovations, pleaded guilty in Hamilton County, Ohio Court of Common Pleas to one count of unauthorized use of property.He had been charged back in March with aggravated theft of property or services worth at least $100,000 from International Brotherhood of Electrical Workers Local 212, and with tampering with market recovery forms and forging market recovery fund forms for the purpose of defrauding the local.The no-contest plea follows an investigation by the Labor Department’s Office of Labor-Management Standards.The co-owners of Electrical Innovations, Rachetta Johnson and Charlene Monroe, were sentenced last September to five years probation and 500 hours of community service after pleading guilty to theft by deception.(OLMS, 1/25/07).
Ex-Office Manager in Minnesota Sentenced for Embezzlement
A federal grand jury in Pittsburgh has indicted Stephen Kostelac on charges of embezzlement.A resident of Fayette County, Pa., Kostelac, 51, secretary-treasurer of the Donora, Pa.-based Lodge 906 of the International Brotherhood of Boilermakers, is accused of stealing dues payments.Prosecutors did not give a specific dollar amount.(Tribune-Review, Greensburg, Pa., 11/30/06).
Former Treasurer in Alabama Indicted for Embezzlement
Mary Love and Danna France knew the value of teamwork – at least when it came to embezzling from their union.Their combined take came to around $70,000.Love, 51, a resident of northwest suburban St. Louis, during October 1998-December 2005 served as president of Local 96 of the American Federation of Government Employees, which represents workers at the Jefferson Barracks and John Cochran VA hospitals.During that time, the U.S. Attorney’s Office charged, she diverted more than $43,000 in union checks toward personal use.On November 15, a federal jury convicted Love of theft and filing false records. For her part, France, 42, who pleaded guilty in October, stole more than $26,000.France is due for sentencing in January; Love is due in February.(St. Louis Post-Dispatch, 11/17/06).
Chicago-Area Business Manager Sentenced for Stealing
On October 10, David Taylor, former financial secretary for Carpenters Local 1402, pleaded guilty in U.S. District Court for the Eastern District of Virginia to one count of making false statements on the union’s reporting form.The statements were part of a scheme to cover up his embezzlement of $72,422 in union funds.The guilty plea follows an investigation by the Labor Department’s Office of Labor-Management Standards.(OLMS, 10/31/06).
Ex-Boss of Connecticut Union Pleads Guilty to Embezzlement
As a New York City power broker, Brian McLaughlin had few equals.He was both a union leader and a politician who played at the highest levels, adept at courting allies to win favors.And he knew how to take care of his people, including members of his original union, Local 3 of the International Brotherhood of Electrical Workers.But in the roughly eight months since the FBI raided his two offices, fears that he was bent have proven true – at least say federal prosecutors in a Racketeer Influenced and Corrupt Organizations (RICO) Act indictment.As they say in baseball, “Say it ain’t so.”
On September 22, Rachetta Johnson and Charlene Monroe, co-owners of a contracting firm, Electrical Innovations, each were sentenced in Hamilton County, Ohio, Court of Common Pleas, to five years probation and 500 hours of community service for their roles in defrauding a market recovery fund of International Brotherhood of Electrical Workers Local 212.The fund assists union contractors in bidding for jobs against non-union contractors by enabling contractors to collect wage difference. Johnson and Monroe conducted an invoice overpayment scam.During July 2002-December 2003, they billed the local for hours that members hadn’t worked.Earlier in the month, the pair pleaded guilty to theft by deception.At their sentencing, the court also ordered them to pay $26,448 in restitution.Another defendant, Michael Griffie, has been charged with theft of at least $100,000 in property or services.
On August 29, Linda Holden, former financial secretary-treasurer for Local 639 of the United Steelworkers, pleaded guilty in U.S. District Court for the Eastern District of Michigan to one count of embezzlement of union funds in the amount of $74,090.The guilty plea follows an investigation by the Labor Department’s Office of Labor-Management Standards.USWA Local 639 previously had been affiliated with the Paper, Allied-Industrial, Chemical and Energy Workers (PACE), where it was known as Local 6-639. The change in affiliation is due to a merger, approved in April 2005, of the Steelworkers and PACE.The new umbrella organization is known as the United Steel, Paper and Forestry, Rubber Manufacturing, Energy, Allied Industrial and Service Workers International Union.(OLMS, 9/25/06).
Former Local Business Agent in Southern Minnesota Charged
Kathryn L. Stark had an 11-year run stealing funds from Local 31 of the International Brotherhood of Electrical Workers. But the former office manager of the Duluth, Minn.-based local ran out of luck sometime after that.A federal grand jury in Minneapolis on September 11 indicted Stark, 49, a resident of Superior, Wisconsin, on charges that during 1993-2004 she stole more than $50,000 from the union.Two other persons also were indicted in the case, the result of an investigation by the Labor Department.Local 31 represents utility workers in northern Minnesota and Wisconsin.(Duluth News-Tribune, 9/12/06).
Cleveland Ex-Local Secretary Pleads Guilty to Embezzlement
On April 14, Deann Schnepple, ex-bookkeeper for LIUNA District Council of Oregon, Southern Idaho and Wyoming, pleaded guilty in U.S. District Court to an information count charging her with embezzling $44,758 in district funds.Sentencing has been set for June.(OLMS, 5/16/06).
GOVERNMENT EMPLOYEES (AFGE)
Pittsburgh Local Ex-President, Secretary Charged with Theft