Benefit plans arguably have become the most lucrative source of illegal income in the world of organized labor. Federal prosecutors in Manhattan don’t need to be reminded of that. On July 1, New York City union officials Rocco Miranti, Johnnie Miranti and Louis Smith were arrested and indicted in U.S. District Court for the Southern District of New York for their roles in obtaining more than $1 million through kickbacks and theft from allied health plans. The three defendants, respectively, are business manager of Allied Novelty and Production Workers Local 223, secretary-treasurer of Local 223, and ex-president of International Brotherhood of Teamsters Local 810. The actions follow a joint probe by the FBI, the Labor Department’s Office of Labor-Management Standards and Office of Inspector General, and the NYPD’s Organized Crime Investigation Division.
On May 13, Stephen Arena, former president of Novelty and Production Workers Local 148, was sentenced in U.S. District Court for the State of New Jersey to six months in prison and six months of home confinement for embezzling funds from the Jersey City local. He and the union's former secretary-treasurer, David Caivano, had been arrested and indicted in October 2010 for stealing a combined more than $375,000 during July 2005-March 2010. Arena pleaded guilty in May 2012. He already has made full restitution in the amount of $193,000, though the court ordered him to pay a $5,000 fine on top of that. As for Caivano, he pleaded guilty this January and was sentenced in March. The actions follow a probe by the U.S. Labor Department's Office of Inspector General and Office of Labor-Management Standards.
On March 21, David Caivano, former secretary-treasurer of International Union of Allied Novelty and Production Workers Local 148, was sentenced in U.S. District Court for the State of New Jersey to three years of probation for receiving unauthorized loans from the Jersey City-based union. He pleaded guilty in January. Caivano, along with former Local 148 President Stephen Arena, had been arrested and indicted in September 2010 for embezzling a combined more than $375,000 over nearly a half-decade. In addition to serving his sentence, Caivano must make restitution in the amount of $110,000. The actions follow an investigation by the Labor Department's Office of Inspector General and Office of Labor-Management Standards.
On January 25, David Caivano, former secretary-treasurer of International Union of Allied Novelty and Production Workers Local 148, pleaded guilty in Newark, N.J. federal court for receiving unauthorized loans from the Jersey City-based union in an amount exceeding $2,000. Caivano, along with Local 148 President Stephen Arena, had been arrested and indicted in September 2010 for embezzling more than $375,000 over nearly a half-decade. Sentencing is scheduled for April. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management-Standards and the Office of Inspector General.
On May 31, Stephen Arena, former president of Local 148 of the International Union of Allied Novelty and Production Workers, pleaded guilty in U.S. District Court for the District of New Jersey to embezzling $193,000 in funds from the Jersey City, N.J.-based union. Arena, along with the union's secretary treasurer, David Caivano, had been arrested in September 2010 for stealing a combined more than $375,000 during July 2005-March 2010. The arrests took place in conjunction with a 29-count indictment by a Newark federal grand jury. The pair routinely awarded themselves unauthorized raises, bonuses and paid vacations. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.
Stephen Arena and David Caivano made sure nobody would look while they looted their union's general and benefit funds. In the end, federal prosecutors are doing the looking. On Tuesday, September 21, Arena and Caivano, respectively, president and secretary-treasurer of Local 148 of the International Union of Allied Novelty and Production Workers, were arrested for embezzling more than $375,000 from the Jersey City union over a nearly a half-decade. As the local is no stranger to scandal, it hardly needs this development.
For a half-decade, father and son discovered how profitable stealing from a garment workers union could be.Joseph Nardone Sr., 80, is the founder and (retired) president of International Novelty and Production Workers Local 148 in Jersey City, N.J., while his son, Joseph Jr., 51, had been president and administrator of the local’s welfare fund.The pair had been convicted last November on conspiracy and embezzlement charges.At their sentencing hearing of July 8 they found out their ways will carry a high price tag.
A father and son who were former union officials were convicted Nov. 4 in an embezzlement scheme that federal prosecutors said drained over $350,000 from the welfare fund of a garment workers union. A federal jury got the case Wednesday afternoon. It returned Thursday afternoon and convicted both men on all counts they faced: Joseph Nardone Sr., 80, conspiracy; and Joseph Nardone Jr., 50, conspiracy and embezzlement.
The U.S. Department of Labor has obtained a consent judgment requiring Jersey City, N.J.- based Allied Novelty and Production Workers’ Union Local 148; and Joseph Nardone, Jr., and Ralph Somma, the administrator and trustee to the union’s retirement and welfare plans, to restore $70,742 for engaging in multiple violations of federal pension law. Local 148 already has restored $6,467 to the plan.
The judgment, filed in the federal district court in Newark, resulted from a lawsuit filed by the department in February 2003. The suit alleged that Nardone and Somma imprudently caused the two plans to unlawfully pay for Nardone’s defense during his trusteeship litigation, which is in violation of the Employee Retirement Income Security Act.
On May 5, a federal grand jury returned a six-count indictment against two union officials and a building contractor in an embezzlement scheme against Local 148 of the Novelty and Production Workers Union in Jersey City, U.S. Attorney Christopher J. Christie announced.
The indictment alleges that between 1992 and 2001, Joseph Nardone, Jr., 49, of Bayonne, the Welfare and Pension Fund Administrator for Local 148 and the Local's recently removed President, and Stanley Rothman, 67, a building contractor now residing in Boynton Beach, Fla., conspired with each other and others to embezzle more than $350,000 in welfare and union funds through a multi-faceted fraud scheme. The indictment also charges Peter Hasho, 67, of Long Island, President of Local 713 of the International Brotherhood of Trade Unions, located in Albertson, N.Y.