Union Corruption Update

New Mexico Laborers Local Business Agent Indicted for Theft

LIUNA logoOn November 19, Daniel Correa, business agent for Laborers International Union of North American Local 16, was indicted in the Third Judicial District Court of Santa Ana County, N.M. on one count of embezzlement in an amount exceeding $20,000 from the Albuquerque-based union.  The indictment follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.

Maintenance of Way Secretary-Treasurer in Illinois Indicted

BMWE logoOn November 17, Joshua Lewis, former secretary-treasurer of Brotherhood of Maintenance of Way Employees Division Lodge 212, was indicted in U.S. District Court for the Southern District of Illinois on one count of making false statements in financial records of the Gillespie, Ill. union.  The indictment follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

Illinois Local AFSCME Treasurer Indicted for Embezzlement

AFSCME logoJeffrey Magelitz managed the finances of a union representing prison employees.  Now he may wind up one of its inmates.  On November 18, Magelitz, former treasurer of Local 415 of the American Federation of State, County and Municipal Employees, was indicted in U.S. District Court for the Southern District of Illinois for embezzlement and theft, and for concealment of these acts in a union financial report.  The indictment follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

Ex-Boston Teamster Convicted of Extortion; Pleads Guilty to Benefit Fraud

Teamsters logoJames “Jimmy the Bull” Deamicis wasn’t the only bad apple in International Brotherhood of Teamster Local 82.  But the authorities weren’t about to let him get away.  On November 17, Deamicis, former shop steward for the local, was found guilty by a jury in Boston federal court on three counts of extortion.  Less than two weeks later, he pled guilty to fraudulently receiving more than $40,000 in unemployment benefits.  Deamicis had been indicted in September 2012 along with three other members of the local on 30 separate counts of racketeering, extortion, mail fraud and other crimes against local businesses, especially exhibitors at Boston-area trade shows.  The actions follow a joint probe by the FBI, the U.S. Department of Labor, and Boston police.

Postal Workers Ex-Local President in Indiana Sentenced

Postal Workers logoOn November 16, Pamela Nessen, former president of American Postal Workers Union Local 286, was sentenced in U.S. District Court for the Northern District of Indiana to six months of home confinement and one year of probation for embezzling $58,598 in funds from the Fort Wayne-based union.  She had pleaded guilty in June after being indicted in November 2014.  She also was ordered to pay $58,087 in restitution and a $100 special assessment.  The actions follow a probe by the Labor Department’s Office of Labor-Management Standards.

VW Maintenance Workers in Chattanooga to Join Union; Automaker Appeals

When the United Auto Workers in April 2014 gave up on its bid to unionize hourly workers at the Volkswagen assembly plant in Chattanooga two months after its ballot defeat, then-President Bob King intimated the union would be back.  It's a lot more than an intimation now.  On December 4, robotics and other machine maintenance workers at the facility voted 108-44 in favor of UAW representation.  The National Labor Relations Board a week earlier had approved a union request for an election.  Unlike the last time, VW is not siding with the union.  Even before the vote, the German automaker had announced its intent to appeal the NLRB ruling.  The victorious workers are but a fraction of all employees, but they are celebrating all the same.  And the NLRB remains very much in the picture.

Steelworkers Secretary in Missouri Pleads Guilty; Sentenced

Steelworkers logoOn October 30, Jackie Nutter, former secretary-treasurer of United Steelworkers Local 15485, pleaded guilty in the Greene County, Missouri Circuit Court to one count of theft of $12,284 of funds from the Springfield-based union.  She then was sentenced to five years (suspended) in prison and five years of probation.  Nutter, who already had paid full restitution, had been charged with theft in September 2014.  The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

AFGE Local Treasurer in Kansas Indicted for Bank Fraud

AFGE logoOn November 10, Shelly Sutton, former treasurer of American Federation of Government Employees Local 477, was indicted in U.S. District Court for the District of Kansas on one count of bank fraud in the amount of $65,000 from the union, which represents employees at the VA hospital in Wichita.  Sutton, 46, a resident of Augusta, Kan., allegedly did the following:  forged check signatures; made unauthorized cash withdrawals; made unauthorized electronic payments to personal creditors; and used the union debit card to buy personal items.  The indictment follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.

Transit Police Union President in NYC Sentenced for Fraud

NYC transit police patchJohn Earvin used union funds to pay for personal expenses, much of it gambling-related.  Now he’s about to pay a debt to society.  On November 10, Earvin, formerly president of the United Federation of Law Enforcement Officers (UFLEO), was sentenced in Manhattan federal court to six months of home confinement, three years of probation and 600 hours of community service for embezzling funds from the Bellerose (Nassau County), N.Y.-based union.  He also was ordered to pay restitution in the amount of $28,012.  Earvin had pleaded guilty in June after being arrested and indicted on one count of wire fraud in March.  The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.

Secretary-Treasurer of Washington, D.C. AFGE Local Charged

AFGE logoOn November 6, Marcella Champion, former secretary-treasurer of American Federation of Government Employees Local 1831, was charged in U.S. District Court for the District of Columbia with one count of theft from the Washington, D.C. union in the amount of $4,130.  The local represents federal security employees.  The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

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