On September 23, Michael Thompson, former business manager for United Union of Roofers, Waterproofers and Allied Workers Local 49, was sentenced in U.S. District Court of the District of Oregon to one year of probation and ordered to pay a $25 assessment for filing false financial information in a report on behalf of the Portland union. He had pleaded guilty in June. The sentencing follows a probe by the U.S. Department of Labor's Office of Labor-Management Standards.
On April 26, Michael Thompson, former business manager of Local 49 of the United Union of Roofers, Waterproofers and Allied Workers, was indicted in U.S. District Court for the District of Oregon for entering false information in financial records of the Portland-based union. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.
On June 15, Michael Pagano, former business agent and secretary-treasurer of United Union of Roofers, Waterproofers and Allied Workers Local 74 in West Seneca, New York, was sentenced in U.S. District Court for the Western District of New York to one year of probation and ordered to make restitution in the amount of $9,264. He had pleaded guilty in December to one count of falsifying union records. The sentencing follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.
When a professional investor renowned for his prowess manages to lose around $50 billion, it’s safe to assume his clients were as moneyed as they were naïve.And Bernard Madoff always made sure to court the top tier of investors, here and abroad.Among his trusting institutional victims were Bank Medici of Austria, HSBC, Royal Bank of Scotland, Sterling Equities, YeshivaUniversity, Mortimer B. Zuckerman Charitable Reminder Trust, and Royal Dutch Shell.Among prominent individuals burned were Larry King, RichardSpring, Steven Spielberg, Kevin Bacon, Henry Kaufman, Norman Braman and Zsa Zsa Gabor.Less known perhaps is that organized labor – a good part of it anyway – got taken to the cleaners, too.Benefit funds of major construction unions in upstate New York, especially in and around Syracuse, suddenly have found their treasuries nearly depleted.The losses, amounting to hundreds of millions of dollars, ought to raise serious doubts about the ability of fiduciaries throughout organized labor to manage assets competently.
On December 16, Sarah Crafts, former office manager of the Austin-based TexasBuilding and Construction Trades Council, was charged in U.S. District Court with one count each of embezzlement and conspiracy totaling $27,197, plus one count of embezzlement of $17,478.The charges follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.(OLMS, 1/9/09).
On July 28, Darrell Pendergrass, former president of International Alliance of Theatrical Stage Employees Local 699, was sentenced in U.S. District Court for the Western District of Virginia to one year in prison and three years probation for embezzling union funds.He also will have to pay $70,336 in restitution plus any back taxes.Pendergrass previously made restitution in the amount of $53,000.He pleaded guilty in April to embezzlement and tax evasion.The sentencing follows a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards and the IRS.(OLMS, 8/18/08).
North Carolina Office Manager Indicted for Embezzlement
On June 11 and 12, Lawrence Marable and Deborah Powell, respectively, the former president and treasurer of American Federation of Government Employees Local 1793, pleaded guilty in U.S. District Court for the Eastern District of Pennsylvania to one count of conspiracy, five counts of property theft, and one count of making a false statement.Marable and Powell had conspired to convert $184,129.85 in dues and union checks for their personal use.The local represents employees at the VA Medical Center in Philadelphia.The guilty pleas follow a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards and the Department of Veterans Affairs’ Office of Inspector General.(OLMS, 7/5/07).
Michigan Local Treasurer Secretary Sentenced for Theft
Anthony “Tony Muscles” Guardino was a pretty imposing fellow.But when it came to New York’s Genovese crime family, not to mention the opposite sex, he more than met his match.The boss of New York City’s Roofers, Waterproofers and Allied Workers Local 8 was sentenced on February 6 in Manhattan State Supreme Court, following his conviction by jury trial in December.He was handed prison terms ranging from 28 months to seven years for most of his dozen convictions.Over an 18-month period, Guardino ran a labor “protection” racket on behalf of the Genovese family at various construction sites, shaking down contractors for more than $2 million.Testimony at the trial provided a close look at the Mafia, in love and in war.
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
Prosecutors for the State of New York now are finding out how good it feels to get a conviction from its anti-racketeering “enterprise corruption” law.Fittingly, one of New York City’s most corrupt labor unions, Local 8 of the United Union of Roofers, Waterproofers and Allied Workers, has broken the ice.On September 19, the Genovese crime family-connected local admitted through its lawyer before the New York State Supreme Court that it was a criminal enterprise. The guilty plea was the culmination of an indictment in July 2004 of the entire local leadership, following a five-year investigation.In addition, a Genovese captain, John Barbato, was sentenced by the court to two to six years in prison for his role in an extortion scheme that enriched Local 8 bosses by $2 million at the expense of rank and file.