International Longshoremen's Association (ILA)

Boston-Area Longshoremen Local President Sentenced

ILA logoOn October 3, Frank Rago, former representative of the International Longshoremen's Association and former president of ILA Local 1604 in Stoneham, Mass., was sentenced in U.S. District Court for the District of Massachusetts to a year and a day of incarceration followed by three years of supervised probation for making unlawful payments and falsifying union records after the fact. Rago used his position as an ILA representative to secure a no-show job with a local employer in order to continue making his line handler's salary without performing any work. He directed his union to pay his salary out of member deductions. In addition to receiving a sentence, he also was ordered to pay $216,384 in restitution, $10,000 in asset forfeiture and a $200 assessment. Rago was convicted by a jury in January 2010. The actions follow a joint probe by the Labor Department's Office of Labor Management Standards and Office of Inspector General.

Ex-New Jersey Longshoremen Secretary-Treasurer Arrested, Charged

ILA logoGregory Taylor apparently used his union as a private bank. But the withdrawals ended a year and a half ago. And the bills are coming due. On September 15, Taylor, formerly secretary-treasurer of International Longshoremen's Association (ILA) Local 1233 in Newark, N.J., was arrested at his home and charged with embezzling more than $100,000 in union funds during 2006-10. He already had been removed from office in May 2010 following an internal investigation. Special agents of the U.S. Department of Labor and the Waterfront Commission of New York Harbor carried out the arrest. Appearing in Newark federal court, Taylor did not enter a plea and was released on $100,000 bond.

Feds' Mob Takedown Includes Union Crooks

mobster photoThere are few things quite like a mass arrest to serve as a reminder of the Mafia's continuing presence in American life. The mob roundup last Thursday morning, the largest in U.S. history, at once underscores the large dent that the Justice Department has been making in organized crime and how deeply entrenched so many organized crime operations have been. Some 800 FBI agents, U.S. marshals, state police and New York City cops fanned out and arrested nearly 120 wise guys and associates named in an 82-page, 16-count indictment for acts of murder, racketeering, money-laundering, loan-sharking, extortion and other offenses going back three decades. The takedown includes crime soldiers from each of New York's "Five Families," plus the DeCavalcante (Northern New Jersey) and Patriarca (New England) families. A number of the arrestees were heavily involved in labor corruption.

Former Treasurer of Texas Longshoremen Local Sentenced

On August 3, Henry George Green Sr., former treasurer of Local 440 of the International Longshoremen's Association, was sentenced in U.S. District Court for the Eastern District of Texas to three years probation and ordered to pay restitution of $11,565.72 for thefts from the Port Arthur union on top of the $24,000.18 in restitution he already has paid. Green had pleaded guilty in February to one count of filing a false statement or omission on a union financial report. The sentencing follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Federal Case Reveals Genovese Control of New Jersey Docks

Michael “Mikey Cigars” Coppola spent more than a decade on the lam before being caught this August.  The Genovese mobster and suspected hit man, formerly the scourge of the New Jersey docks, now might be concerned primarily with protecting himself.  In October 2008, a federal grand jury in Brooklyn, N.Y. indicted Coppola, now serving a 42-month sentence for separate offenses, on racketeering charges related to business deals of International Longshoremen’s Association (ILA) Local 1235, based in Newark.  The local, which represents dock workers in Newark and Elizabeth, N.J., was seized by the international union in August, just three days before Coppola’s capture, and has been under trusteeship since.

Federal Judge Throws Out RICO Suit; Questions Remain

The leaders of the International Longshoremen’s Association might not have uncorked any champagne at their Lower Manhattan headquarters, but it’s unlikely they had seen happier times.  On November 1, U.S. District Judge I. Leo Glasser announced his dismissal of the Justice Department’s civil racketeering suit against them.  In a 109-page decision, Judge Glasser stated that the government’s complaint failed to “sufficiently specify” its rationale for applying the Racketeer Influenced and Corrupt Organizations (RICO) Act to the alleged crimes.  He wrote:  “This court will not abet the government’s effort to stretch the concept of a racketeering enterprise beyond all recognition in order to bring various otherwise disinterested parties within its scope, even for the worthwhile purpose of combating the influence of organized crime on the waterfront.” 

Puerto Rican Boss Sentenced for Theft, Money-Laundering

During the reign of former President Jorge Aponte-Figueroa, International Longshoremen’s Association Local 1740 in Puerto Rico was a lucrative racket for the well-connected.  By the time federal prosecutors filed a series of charges in 2005, top union leaders and business associates had illegally diverted an estimated $10 million from its coffers to their own personal use.  Moreover, union officials underreported another $1.5 million in dues collections.  The result was a rash of guilty pleas.  Aponte, now well into his 70s, chose, unwisely, to go to trial.  Having been convicted by federal jury trial in April, he learned on August 31 the price of his ways:  five years in prison, plus another three years of supervised release.

International Union Takes Over Newark Local on Counsel Advice

The International Longshoremen’s Association is in a bind.  For the last two years the New York City-based union has been the target of a federal civil racketeering suit alleging a longstanding pattern of corruption that reached into the top suites.  ILA officials, led by outgoing longtime President John Bowers, the indictment noted, knowingly ceded control of locals at New York, New Jersey and Miami ports to the Genovese and Gambino crime families.  The union vigorously has denied all charges, and indeed recently requested that U.S. District Judge Ira Glasser dismiss the suit, which seeks the ouster of Bowers and other ILA officers and the placement of several union benefit funds under federal control.  There’s an outside chance the union may get what it wants.  Yet the reality of mobbed-up locals has been undeniable.  Now the ILA, on the advice of its ethics counsel, has taken the dramatic step of taking over one of those unions.

Financial Secretary in Tennessee Sentenced for Embezzlement

On July 7, Larry Haislip, former financial secretary for Local 09-7509-S of the United Steelworkers of America, was sentenced in U.S. District Court for the Eastern District of Tennessee to six months probation for embezzling union funds in the amount of $1,702.97.  His real take, however, was much higher; the court also ordered him to pay $49,428.78 in restitution.  The sentencing comes after a Labor Department investigation.  (OLMS, 7/16/07).  

 

Former President in Oklahoma Charged with Filing False Report

Bowers Steps Down as President, No. 2 Man Hughes Takes Over

For the last two years the International Longshoremen’s Association has been operating under a Justice Department civil racketeering indictment.  But whether the change in leadership at New York City headquarters this month suggests the feds will drop its suit remains to be seen.  As expected, John Bowers resigned on July 26 as president of the ILA at the union’s quadrennial convention in Hollywood, Fla., having held the job since 1987.  Bowers, 84, had been indicating for some time that he would not seek re-election.  His close ally, Richard Hughes, Jr., 74, the ILA executive vice president, takes over at the top spot, having run uncontested.  Hughes’s replacement is Harold Daggett, assistant general organizer and president of the nearly 2,000-member Local 1804-1 across the river in New Jersey, long under control of the Genovese crime family.  Daggett had been acquitted in November 2005 after an emotionally draining waterfront criminal trial that saw, among other things, the discovery of the dead body of missing witness Lawrence Ricci.  Hughes had gotten his job in 2005 as a replacement for Albert Cernadas, who retired after pleading guilty in the case.

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