Mary Jo White

SEC Nominee Mary Jo White Protected Corrupt Union Bosses in Teamsters Prosecution

Mary Jo White and ObamaMary Jo White is a poor choice to head the SEC. As a U.S. attorney, she demonstrated a lack of political independence and competence.

In the late 90's prosecution of the Teamsters money landering scandal, White won several guilty pleas from low-level has-beens, but gave a pass to prominent union figures who played a key role in the Democratic political campaign of 2000, and every one since. The magnitude of White's dereliction of duty can be seen in who was not prosecuted- Richard Trumka, Andrew Stern and Gerald McEntee.

Ex-US Attny Goes from Prosecuting NYC Police Unions to Protecting them

Frmr. U.S. Attny. Mary Jo White is now defending the NYC Patrolmen's Benevolent Assn. against charges that its hierarchy tried to cover up for a drunken officer convicted of vehicular manslaughter.  As U.S. Attny. for the Sou. Dist. of NY, White won the conviction of two lawyers and a transit police union boss in 1998 for a racketeering conspiracy.  The lawyers paid more than $400,000 in bribes in return for more than $2 million paid to their firm, which represented the transit and other NYC unions.  All three men convicted also worked for the PBA.

 

Second Albany Boss Admits Theft

Daniel Vallee, ex-boss of Civil Service Employees Ass'n Local 316 in Albany, pled guilty Nov. 9 before U.S. Dist. Judge Thomas J. McAvoy (N.D.N.Y., Reagan) to embezzling $19,300.09 in union funds. Vallee admitted that from May 1988 until Jan. 2000 he wrote checks to himself drawn on the local's account. As president, Vallee was one of two people authorized to sign the checks. The other person, Nancy Groome, ex-secretary-treasurer of the local, cosigned some of the checks but Vallee admitted he forged her name on a majority of them. In some instances, Vallee also received excess reimbursements and kept the funds. He spent the embezzled funds on personal expenses such as his mortgage, car repairs, credit card bills, and gifts for others.

Second Albany Boss Admits Theft

Daniel Vallee, ex-boss of Civil Service Employees Ass'n Local 316 in Albany, pled guilty Nov. 9 before U.S. Dist. Judge Thomas J. McAvoy (N.D.N.Y., Reagan) to embezzling $19,300.09 in union funds. Vallee admitted that from May 1988 until Jan. 2000 he wrote checks to himself drawn on the local's account. As president, Vallee was one of two people authorized to sign the checks. The other person, Nancy Groome, ex-secretary-treasurer of the local, cosigned some of the checks but Vallee admitted he forged her name on a majority of them. In some instances, Vallee also received excess reimbursements and kept the funds. He spent the embezzled funds on personal expenses such as his mortgage, car repairs, credit card bills, and gifts for others.

Mary Jo White Blows It, Big Time

U.S. Atty. for the the S. Dist. of N.Y., Mary Jo White, lost the Ron Carey case. On Oct. 12, a federal jury acquitted the corrupt Teamsters boss of all seven counts of perjury and making false statements in connection with a $885,000 money laundering scheme that sent union treasury funds into Carey's 1996 reelection campaign.

Even though the union was able to expell and punish Carey, White and her office failed. Losing a such a high-profile case should be a total embarrassment for White, a Clinton-appointee. Blunders--like 1) bring the case almost 5 years after the events took place and 2) putting a hostile witness, convicted union embezzler William W. Hamilton, on the stand only to have him undermine your case against Carey--demonstrate White's incompetence.

Many have been calling on President Bush to replace White since Jan. 20. What further evidence does he need?

Despite White's Attacks, diGenova Wins IRB Post

The Int'l Bhd. of Teamsters' Indep. Rev. Bd., the internal oversight body created under a 1989 consent decree, will have a new composition as the result of a pair of actions by the Dep't of Justice and U.S. Dist. Judge Loretta A. Preska  (S.D.N.Y. H.W. Bush). On Aug. 8, Preska after a brief hearing, approved IBT's designation of ex-U.S. Atty. Joseph E. diGenova to be its representative on the three-member IRB. A few hours later, U.S. Atty. Mary Jo White announced that Atty. Gen. John Ashcroft had designated Benjamin R. Civiletti, who was an attorney general in the Carter administration, to be DOJ's representative on IRB. IRB's third member will be chosen jointly by the other two, and each member has a five-year term.

If Preska approves, Civiletti will replace ex-U.S. Dist. Judge Frederick B. Lacey (D.N.J. Nixon) who served as IBT's court-appointed independent administrator from 1989-92 before assuming a seat on the IRB when it was formed in Oct. 1992. DiGenova replaces Grant Crandall, a labor attorney appointed as IBT's representative in 1996 by disgraced ex-IBT boss Ron Carey.

Money-Laundering Scandal Briefs

  • Aug. 4: U.S. Attorney Mary Jo White told the U.S. District Court in Manhattan that Congress allowed the Justice Department to spend $4 million of the $8.4 million estimated cost on the rerun election. [BNA 08/05/98]
  • Aug. 3: Teamsters presidential candidate and Carey supporter, Tom Leedham accused Rep. Peter Hoekstra (R-MI) of using his Congressional investigation into the Teamsters scandal to aid rival candidate James P. Hoffa. Hoekstra's spokesman said it was "ridiculous." [BNA 08/04/98]
  • Jul. 27: Ron Carey, who was elected in 1991 with a motto "no corruption, no excuses, no exceptions," was permanently expelled from the union almost a year after revelations of his 1996 campaign's schemes that funneled over $538,000. The court-appointed Independent Review Board also expelled disgraced Teamsters political director William W. Hamilton who has been indicted for his role in the scandal. [Wash. Times 07/28/98]
  • Jul. 24: Teamsters Vice President Aaron Belk's testimony before Hoekstra's committee appeared to contradict White House Counsel Charles F. C.

Rerun Election Funding Still Uncertain

On Jul. 6, U.S. District Judge David N. Edelstein gave U.S. Attorney Mary Jo White until Jul. 15 to attempt to secure the estimated $8.6 million for a government-supervised, Teamsters rerun election. On Jul. 1, White told Edelstein that the government needed more time to try to end the impasse the rerun funding. White also suggested that, if sufficient funds are not found, the Court should consider the possibility of either appointing a special master to supervise the balloting or ordering the Teamsters to conduct the rerun on its own without government supervision.

The impasse is due to an U.S. Appeals Court ruling forcing taxpayers to pay for the rerun. Congress passed legislation barring taxpayer funding of the rerun because nearly $20 million was wasted on the 1996 election due to the Ron Carey campaign's scandals, and Congress, led by Rep. Peter Hoekstra (R-MI), is unconvinced that safeguards are in place to prevent another corrupted election.

Edelstein also ordered the Teamsters to submit, by Jul. 10, a plan for an unsupervised election. [BNA Daily Labor Report 07/07/98]

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