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 ➡

Detroit IATSE Treasurer Sentenced for Embezzlement

iatse-logo_0On November 7, Bernadine Bell, former treasurer of International Alliance of Theatrical Stage Employees Local 757, was sentenced in U.S. District Court for the Eastern District of Michigan to 30 days of incarceration and three years of supervised release for embezzling $73,000 in funds from the Detroit union. She also was ordered to pay $55,600 in restitution on top of the $17,400 she already paid, plus a $100 special assessment. Bell had pleaded guilty in July after being charged in June. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡

Kentucky Security Officers Local Secretary Sentenced for Theft

spfpaOn October 25, Laura Cloyd, former financial secretary of Security, Police and Fire Professionals of America Local 112, was sentenced in Campbell County, Kentucky Circuit Court to three years of diversion and ordered to pay $1,669 in restitution for theft of funds from the Alexandria, Ky.-based union.  She had pleaded guilty in September after being indicted in July.  The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Chicago Transport Workers President Sentenced for False Record-Keeping

transport-workers-logo_0On October 25, Roy Murray, former president of Transport Workers Union Local 2014, was sentenced in U.S. District Court for the Northern District of Illinois to two years of probation for making a false entry in financial records of the Chicago union.  He also was ordered to pay $31,111 in restitution and a special assessment of $25, plus serve 80 hours of community service.  Murray had pleaded guilty on July 25, one week after being charged.  The actions follow an investigation by the Labor Department’s Office of Labor-Management Standards.… Read More ➡

Security Officers President Sentenced for $350K+ Scam

security-guardAssane Faye was quick to lend a helping hand.  It was a perfect opportunity to help himself.  On November 25, Faye, founder and former president of the United Security and Police Officers of America (USPOA), was sentenced in U.S. District Court for the District of New Jersey to 37 months in prison and three years of supervised release for embezzling at least $350,000 in funds from the Washington, D.C.-based union.  He also was ordered to make full restitution.  Faye had been convicted by a jury this May on two counts of embezzlement and seven counts of unemployment insurance fraud after being indicted nearly two years ago.  The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

Union Corruption Update described this case several months ago.  According to prosecutors, Faye, 61, a Senegalese immigrant residing in Toms River, N.J., starting in … Read More ➡

Utility Workers Treasurer in Long Island Sentenced for Theft

utility-workers-logoOn October 26, Charles Burke, former treasurer of Utility Workers Union of America Local 365, was sentenced to three years of probation in Nassau County (N.Y.) District Court for embezzling $111,000 from the Valley Stream-based union, which represents employees of American Water.  He also was ordered to pay the remaining $37,000 in restitution.  Burke had pleaded guilty to larceny and fraud in April following his arraignment in March.  The actions follow a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡

Former President of AFGE Local in West Virginia Indicted

afge logo_0On October 18, Jared Henson, former president of American Federation of Government Employees Local 420, was charged in the Circuit Court of Preston County, West Virginia with two counts of embezzlement in an amount exceeding $1,000 and one count of falsifying records to cover up the thefts from the Bruceton Mills-based union, which represents employees of Hazelton federal prison.  Henson, 40, is a resident of Frostburg, Md.  The charges follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡

SPFPA President in Michigan Pleads Guilty to Embezzlement

spfpaOn October 24, Devon Madray, president of Security, Police and Fire Professionals of America (SPFPA) Local 119, pleaded guilty in U.S. District Court for the Eastern District of Michigan to one count of embezzling $20,097 in funds from the Roseville (suburban Detroit) union.  He had been indicted in July.  The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡