Alejandro Stephens

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.

Los Angeles Service Employees Ex-Boss Charged in Scam; Set to Plead Guilty

SEIUThe Service Employees International Union (SEIU) long has been a major booster of the Association of Community Organizations for Reform Now, or ACORN. The head of an SEIU local in Los Angeles appears to have engaged in ACORN-like behavior on his own. On August 27, Alejandro Stephens, formerly president of SEIU's now-defunct Local 660, was charged in U.S. District Court for the Central District of California with two counts of mail fraud and one count of filing a false tax return. Stephens allegedly used his position as an official with the Los Angeles union to conspire with at least three other individuals to receive tens of thousands of dollars in kickbacks from phony "consulting" companies. Given that he's already in hot water in a separate case that surfaced last year, it makes sense that he reportedly has declared his intention to plead guilty.

Top Officer of Local, California Affiliates Probed; Takes Leave

Annelle Grajeda believes her only offense was standing by a friend.  The Service Employees International Union, however, will have the final word.  Grajeda, president of SEIU Local 721, is yet another Los Angeles SEIU official to step aside in the wake of revelations of possible misuse of office.  That she also is president of the SEIU California state council and an executive vice president of the international union makes the need for damage control all the more imperative.  A Los Angeles Times report indicated there was evidence that she had arranged a transfer of tens of thousands of dollars in improper payments to a former boyfriend, Alejandro Stephens. 

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