U.S. Department of Labor (DOL)

Screen Actors Guild Whistleblower Alleges $5-$10M Benefit Theft

corruption It has the raw material for a movie. The plot, so far, is incomplete. Over the last few months the Screen Actors Guild (SAG) has been rocked by public allegations by a former benefits executive that top officials of SAG-sponsored benefit plans, including CEO Bruce Dow, looted between $5 million and $10 million. The whistleblower, Craig Simmons, who had been fired a half-year before, this September filed a complaint with the U.S. Department of Labor requesting that DOL conduct criminal and civil probes. Simmons also alleges that Dow instructed him to deceive trustees and authorities about the losses. The Labor Department has yet to comment on whether it has begun an investigation. Lawyers for the SAG, which controls about $2.5 billion in plan assets, are denying all charges. Yet significantly, the union hired an investigator to conduct a review, which since has been completed.

New DOL Rule Would Require More Disclosure of Employer Consultants

Department of Labor headquartersThe consultants who advise employers on how to avert union organizing or collective bargaining demands soon may have to reveal a good deal more about themselves and their operations. This past Tuesday, June 21, the U.S. Department of Labor (DOL), to the delight of labor officials, published a proposal in the Federal Register to expand the circumstances forcing companies to disclose information about their advisers. Because the rule change would not apply to union consultants, it appears to be motivated heavily by politics.

If Obama Is 'Pro-Business,' He Should Withdraw Wage and Hour Division Nominee Leon Rodriguez

Wage and Hour logoIf Department of Labor Secretary Hilda Solis and Solicitor M. Patricia Smith are pushing the limits of radical advocacy, Leon Rodriguez might just be the person to push them further. Rodriguez, for nearly a year the chief of staff at the Justice Department's Civil Rights Division, is President Obama's presumptive nominee for administrator of DOL's Wage and Hour Division. The president announced on December 2 his intent to name him to the long-vacant post. But like the previous (unsuccessful) nominee, Lorelei Boylan, Rodriguez, an experienced prosecutor, has an expressed belief that what counts is equality of result, not equality under the law - even if employers have to pay the toll. If Obama is genuine about his recently stated desire to promote business development, he should find another candidate.

Labor Department Solicitor Adopts Plan to Bully Employers

Patricia Smith photoWhen Department of Labor Solicitor M. Patricia "Trisha" Smith testified at a Senate confirmation hearing more than a year and a half ago, her track record as New York State Commissioner of Labor, and her comments about it, prompted leading Republicans to postpone action for several months. Their fears in hindsight appear well-founded. An article appearing in last Friday's Wall Street Journal reported that DOL staff, under Smith's supervision, a couple months earlier had issued a draft "operating plan" to dramatically step up enforcement against private-sector employers likely to have committed unfair labor practices. The details of the now-adopted plan indicate Smith, like her boss, Labor Secretary Hilda Solis, views the department's relationship with business as necessarily highly adversarial.

FBI, Labor Department Probe SEIU's Stern

Andrew SternThe abrupt departure by Andrew Stern this spring as president of the Service Employees International Union (SEIU), after 14 years on the job, blindsided a lot of observers. After all, he was a shadow cabinet member of the Obama administration. Reported ongoing federal investigations into two unrelated, and possibly illegal, financial arrangements may shed light on his motives. The Associated Press and the Los Angeles Times each ran stories last Tuesday stating the FBI and the Department of Labor have been interviewing persons potentially knowledgeable about the possibility that Stern: 1) received unauthorized funds from a book he'd authored several years ago; and 2) approved the disbursement of funds to pay for a Southern California SEIU local official's no-show job who eventually was convicted in an unrelated kickback scheme. Stern denies his involvement in these activities and indeed even the fact of an investigation.

Labor Department IG Nominee Favors Immigrant Voting Rights; Co-Founded Union-Supported PAC

U.S. Department of Labor headquartersIf there is one position within the federal bureaucracy more than any other that requires impartiality it is Inspector General (IG). By law, the holder of this office must operate independently of his political beliefs. The nomination this past May of the next head of the Department of Labor's Office of Inspector General is putting this principle to the test. The Obama White House believes it has found the right man for the job in Paul Tiao. Yet Tiao, an experienced federal prosecutor, apparently holds the view that one need not be a U.S. citizen to be eligible to vote. Moreover, a little over a decade ago he co-founded a political action committee whose extensive union support might compromise his impartiality. When the Senate Judiciary Committee convenes after summer recess to consider the nomination, members should raise these issues as a matter of protecting public integrity.

Chicago Money Manager Sentenced, Liable for Union Pension Scams

DollarsJohn Orecchio saw in the nearly $200 million in union pension benefits under his management a ticket to a high roller's life. It proved to be a ticket to prison. On June 17, the one-time Chicago investment banker and equity fund manager was sentenced in U.S. District Court for the Northern District of Illinois to nine years and four months in federal prison to be followed by three years probation for embezzling more than $24 million from various Michigan-based labor pension plans. He had pleaded guilty in February. Orecchio also will have to pay more than $26 million in restitution - on top of the $50 million he'll have to fork over in the wake of a civil judgment against him last August obtained by the U.S. Department of Labor and another $7.8 million toward a DOL-engineered global settlement announced this past June 22 against his company, AA Capital Partners, and other parties.

Right to Work Group Files Lawsuit Calling for Labor Department Disclosure

Labor Secretary Hilda SolisLike any cabinet-level agency, the U.S. Department of Labor under the Obama administration has its share of political cronies. And the department has given more than a few indications that it intends to remake DOL into a vehicle for union advocacy. The National Right to Work Legal Defense Foundation (NRTW) for the past year has sought the full story. It's one of the less publicized aspects of the apparent lack of accountability in the current administration. This past December, attorneys for the Springfield, Va.-based foundation filed a lawsuit in U.S. District Court demanding the Labor Department release information in response to a Freedom of Information Act (FOIA) request NRTW had filed last April seeking facts about lobbying and other activities by Labor Secretary Hilda Solis (see photo) and other ranking officials. Raising further the distinct possibility that the DOL has not complied with the law is a recent article in the Washington Times summarizing how the Obama administration has gutted as many union transparency rules as possible.

Senate Confirms Patricia Smith as Labor Department Solicitor

U.S. Department of LaborIf the nomination of pro-union radical Craig Becker for the National Labor Relations Board couldn't survive congressional scrutiny, Obama administration officials are taking heart that another nominee for a major labor policymaking post has passed muster. On Thursday, February 4, the Senate voted 60 to 37 to approve M. Patricia Smith, labor commissioner for the State of New York, as the new solicitor for the U.S. Department of Labor (DOL), the department's chief law interpreter-enforcer and third-ranking official. The vote occurred after several months of delay and three days after a 60-32 cloture vote. Certain Republican lawmakers had expressed concerns that she had made deceptive statements back during her May 7 confirmation hearing before the Senate Committee on Health, Education, Labor and Pensions.

Labor Department Solicitor Nomination Continues to Raise Concerns

U.S. Department of Labor logoThe Department of Labor (DOL) is one of the prime venues for President Obama's attempt to unite governance and community activism. But he's having an unexpectedly tough time conveying his enthusiasm to the Senate. Nearly four months ago, the Senate Health, Education, Labor and Pensions Committee held a hearing on the confirmation of M. Patricia "Trisha" Smith to become the DOL's next solicitor, which is the third highest post in the department behind secretary and deputy secretary. Yet the appointment remains up in the air. That's because Republicans on the committee are concerned Smith may replicate a program she recently initiated as current labor commissioner for the State of New York. Internal memos obtained by GOP committee aides suggest a less than full commitment on her part to enforce the nation's labor laws in an objective manner.

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