Texas Pharmacist Pleads Guilty to Making $800K+ in Kickbacks

benefit-fraudThe fallout from the Texas health benefit scam continues. On December 14, Brian Haney, part-owner of a Vidor, Texas pharmacy, pleaded guilty in Austin federal court to a two-count information for bribery and tax fraud in connection with his payment of more than $800,000 in kickbacks to Garry Craighead, operator of a chain of physical rehab clinics across the state. The kickbacks were in exchange for referrals by Craighead to participating pharmacies, based on false or inflated worker’s compensation claims, that cost the Department of Labor nearly $18 million. The case followed an investigation by the FBI, IRS, U.S. Army, U.S. Postal Service and U.S. Labor Department’s Office of Inspector General. A sentencing date has yet to be set.

Brian Haney, now 37, was part-owner of a pharmacy in the southeast Texas community of Vidor. According to prosecutors, he did more than simply run a business. During November 30, 2011-January … Read More ➡

Chicago Laborers Contractor Pleads Guilty to Benefit Fraud, Wage Theft

liuna logoRipping off union benefits is big business. In the case of Yashvant Patel, that wasn’t even half the story. On August 11, Patel, a Chicago-based contractor, pleaded guilty in U.S. District Court for the Northern District of Illinois to mail fraud and financial concealment in connection with defrauding employees out of about $600,000 scheduled benefits and $1.3 million in wages. Many if not most of the shortchanged workers were residing illegally in this country. Patel had sought to escape the terms of a bargaining agreement with affiliates of the Laborers International Union of North America. He was arrested in May 2015 and indicted by a grand jury that August on four counts each of mail fraud and false statements. The actions follow a joint probe by the FBI and the Labor Department’s Office of Inspector General.

Yashvant Patel, now in his early 60s, a resident of St. Charles, Ill., owned … Read More ➡

Utility Workers President in Wyoming Pleads Guilty to Embezzlement

utility-workers-logoGiven the sum that he took, Harold Gilberson should consider himself lucky. On November 29, Gilberson, former president of Utility Workers Union of America Local 127, pleaded guilty in U.S. District Court for the District of Wyoming to embezzling $179,052 in funds from the Casper-based union. The local represents employees at three Wyoming power plants, and associated transmission lines, owned by PacificCorp. The charge and guilty plea follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

Harold Gilberson, now 63, an employee at a power plant near Rock Springs, had served as president of Utility Workers Local 127 during 2002-15. During the last four years of this period, he allegedly charged a large number of personal items to his union credit card and then falsified union expense reports to conceal the thefts. Eventually, a Labor Department probe revealed that the fund shortfall was the result of his … Read More ➡

Auto Workers President in Indiana Pleads Guilty to Fraud

united-auto-workers-logoMichael Bennett wrote lots of checks to himself. And his union unknowingly picked up the tab until it realized what was going on. On November 21, Bennett, former president of United Auto Workers Local 2317, pleaded guilty in U.S. District Court for the Northern District of Indiana to one count of wire fraud in excess of $100,000 against the Lafayette, Ind.-based union. He had been indicted this August. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

UAW Local 2317 represents about 700 employees at the Fairfield Manufacturing plant in Lafayette. According to federal prosecutors, Bennett, who headed the union during 2006-15, forged the signature of the local treasurer on about 170 checks to cover nonexistent “travel expenses.” Having forged the checks, he either cashed them or deposited them into his own account. He also rented out the union hall for outside functions, but without … Read More ➡

Washington, D.C. AFGE Secretary Pleads Guilty to Theft

afge logo_0On November 22, Wanda Rosenboro-Correa, former secretary-treasurer of American Federation of Government Employees Local 2798, pleaded guilty in U.S. District Court for the District of Columbia to one count of theft of funds from the Washington, D.C. union in the amount of $13,803. She had been indicted in August. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Upstate New York Electrical Workers Boss Pleads Guilty to Fraud

ibewlogoOn November 17, Brian Scott, former president and business manager of International Brotherhood of Electrical Workers Local 503, pleaded guilty in U.S. District Court for the Southern District of New York to one count of mail fraud against the Monroe (Orange County), N.Y.-based union. He had been hit with a superseding indictment in August on one count each of embezzlement, mail fraud and false reporting following his arrest in February and an earlier indictment the previous October. Scott, now a resident of Miami Beach, Fla., had been accused of making unauthorized charges from union accounts totaling $66,954 during the period July 2008-February 2012. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Ex-President of Illinois Auto Workers Local Pleads Guilty

united-auto-workers-logoOn November 10, Bob Buford, former president of United Auto Workers Local 2419, pleaded guilty in U.S. District Court for the Central District of Illinois to one count of mail fraud in the amount of more than $128,000 against the Danville, Ill.-based union. He had been indicted this March following a probe by the U.S. Labor Department’s Office of Labor-Management Standards. Local 2419 represents workers at the Danville assembly plant of FreightCar America.… Read More ➡

Is Costly Obama Overtime Rule Facing Extinction?

department-of-labor-logoAs the Obama era makes its exit, many recent regulations also may be on their way out as well. Among them: a Department of Labor rule that would expand eligibility for overtime pay for over four million currently salaried workers. On November 22, a Texas federal court, in response to challenges filed by 21 states and several business groups, issued a preliminary injunction blocking enforcement. “The State Plaintiffs have shown a likelihood of success on the merits because the Final Rule exceeds the Department’s authority,” concluded the court. Should the DOL not appeal, either the Trump-led DOL will withdraw the rule or the new Congress will repeal it. Either way, employees and employers would be better off. Had the rule gone into effect as scheduled on December 1, some unwelcome problems would have erupted.

Union Corruption Update has analyzed the overtime regulation and its likely consequences on three previous occasions. … Read More ➡

Illinois AFSCME Treasurer Sentenced for Embezzlement, Concealment

afscme-logoIn the world of organized labor, debt accumulation all too often leads to embezzlement. Jeffrey Magelitz is a clear-cut case. On Tuesday, December 6, Magelitz, former treasurer of American Federation of State, County and Municipal Employees (AFSCME) Local 415, was sentenced in U.S. District Court for the Southern District of Illinois to two years of probation, six months of home detention and 100 hours of community service for embezzling around $30,000 from the union, which represents employees at the Vienna Correctional Center (Johnson County), Illinois. He had pleaded guilty in August after being indicted last November. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

Jeffrey Magelitz, now in his mid-40s, a resident of Chester, Ill., for years had provided counseling to inmates at the Vienna facility. Unfortunately, he could have used some debt counseling. He and his wife had accumulated about $225,000 in debt, … Read More ➡

Page 29 of 443« First...1020...2728293031...405060...Last »