The National Labor Relations Board ought to be about the last place to find anyone with a history of union corruption. But Richard Griffin (see photo), an NLRB member and former general counsel for the International Union of Operating Engineers (IUOE), may be the exception. Griffin last October was named as a defendant in a federal racketeering suit filed by 10 members of IUOE Local 501 in Los Angeles. The complaint alleges Griffin, during his tenure representing the international union, was complicit in a "scheme to defraud [the local] out of revenue, cost savings and membership." Dozens of union members, the suit charges, engaged in kickbacks, bribery, threats and extortion.
Sandra Jungbluth may have done her boyfriend's bidding, but she now has to pay the price. Last June 8, Jungbluth, an accountant for a consulting firm that handles benefits for a Wisconsin affiliate of the International Union of Operating Engineers (IUOE), was sentenced in a state court to three years of probation for embezzling more than $450,000 in union funds over nearly a decade and forging the signature of a company vice president. As a condition for probation, she must serve eight months in jail. Jungbluth had been charged in February 2011 and pleaded guilty in December of that year. She also will have to make restitution in the amount of $459,000.
On October 1, Ronald Witt, former business manager of International Union of Operating Engineers Local 450, was sentenced in U.S. District Court for the Southern District of Texas to one year and a day in prison, and three years of supervised release, for embezzlement from the Houston union. He also was ordered to pay $198,333.10 in restitution and a $100 special assessment. Witt, along with his wife, Anita, had been arrested and indicted in July 2011 for stealing more than $150,000 from the local's general and job training funds. He pleaded guilty this January. The actions follow a joint probe by the Labor Department's Office of Labor-Management Standards and Employee Benefits Security Administration.
On January 19, Ronald Witt, former business manager of International Union of Operating Engineers Local 450, pleaded guilty in U.S. District Court for the Southern District of Texas to one count of conspiracy from the Houston-based local. Witt and his wife, Anita, had been arrested last July on charges of embezzling more than $150,000 from the local's general and job training funds, and forging financial records to conceal the thefts. He originally had denied all allegations, claiming he had receipts that would exonerate him and his wife. The actions follow a joint investigation by the U.S. Labor Department's Office of Labor-Management Standards and Employee Benefits Security Administration.
Sandra Jungbluth had a chaotic domestic life. But that wasn't a sufficient excuse for ripping off the union whose benefits she handled. On or about last December 8, Jungbluth, formerly an accountant for a firm managing benefit funds for the Wisconsin state affiliate of the International Union of Operating Engineers (IUOE), stated her intention to plead no contest to stealing more than $450,000 in union funds over some nine years. She allegedly had forged the signature of a company vice president. As part of a plea agreement, two of the three charges in the criminal complaint would be dismissed, but considered by the judge at sentencing. She faces up to five years in prison, plus five years of supervised probation.
Labor unions in this country for nearly four decades have operated with a grant of near-immunity from the consequences of intimidating employers and non-joining workers or destroying their property. An ongoing federal racketeering and extortion case against upstate New York's International Union of Operating Engineers (IUOE) Local 17 is underscoring how readily union attorneys rationalize their clients' "right" to terrorize. The case has taken on an added significance in light of legislation recently introduced to close this loophole, a product of a misguided Supreme Court ruling. Even more noteworthy, one of the attorneys for the local is a former law partner of Mark Pearce, the latter recently becoming chairman of the National Labor Relations Board (NLRB). It's a small world.
Ronald and Anita Witt enjoyed the good life, especially luxury cars and trips to Hawaii. They're now facing a potential trip to prison. On Friday, July 8, Mr. and Mrs. Witt, respectively, business manager and financial secretary of International Union of Operating Engineers Local 450, were arrested by U.S. Marshals and charged in Houston federal court that day with embezzling more than $150,000 from the union's general fund and job training benefit plan, and forging records to conceal the thefts. The couple also faces a civil suit filed by the Houston-based local on April 21 alleging "$750,000 in unlawful expenditures." Ronald Witt denies all criminal and civil allegations, claiming he has receipts that will exonerate him and his wife.
Running a buffalo farm in Maryland might not seem to have much in common with running one of the Chicago area's largest unions. But William E. "Bill" Dugan did both. And it was the overlap of those worlds that explains his predicament. Dugan, the retired president and business manager of International Union of Operating Engineers Local 150, was sentenced on October 14 in U.S. District Court for the Northern District of Illinois to three years probation for demanding, and getting, donations of several custom-made livestock feeders for his farm from a firm that employed IUOE Local 150 workers, and for committing related offenses. He also was ordered to pay a $30,000 fine plus supervision costs. Dugan earlier had made $10,800 in combined restitution to the local and a related apprenticeship program which he chaired.
Dennis Giblin at least can be glad that theft of services doesn't run in the family. It's unlikely he would have gotten his job with International Union of Operating Engineers Local 68 otherwise. On Monday, August 9, Giblin, former president of the local and scion of a powerful New Jersey union and political family, pleaded guilty in Newark federal court to receiving kickbacks and embezzling in connection with a business transaction during his tenure as head of the West Caldwell, N.J.-based union's job training and education program. He had been arrested in January 2009.
On May 27, Cheryl Staley, former dues clerk of International Union of Operating Engineers Local 501, pleaded guilty in U.S. District Court for the District of Nevada to embezzling funds from the union in the amount of $231,653.89 and falsifying records. The union is based in Los Angeles, but maintains an office in Las Vegas where Staley had worked. The guilty plea follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.