Boss Took Trip to London with Members’ Funds

A former boss of the Service Employees Int’l Union used union members dues for personal trips to Disney World and London. The former head of the SEIU local in Boyton Beach, Fla., Wanda Stimpson, was sentenced Sep. 4 to 5 months in prison for embezzling $120,000 from the union for her vacations. Federal prosecutors said she altered checks to conceal her scheme. The SEIU boss also was sentenced to 5 months of home detention and 2 years of probation. There was no report of restitution. [Palm Beach Post 9/5/98]

$412K a Year Boss Sets Up Defense Fund
Reportedly America’s highest-paid union boss, Gus Bevona, who made $412,000 in 1997 as president of N.Y.’s SEIU Local 32B-32J, is in trouble. Despite his salary, Bevona is asking other union bosses to fund his latest legal defense costs. According to his lawyer’s recent letter to other bosses, he “is being victimized by … Read More ➡

Second Hanley to Resign Over Criminal Charges

The son of Edward T. Hanley, the disgraced former President of the Hotel Employees & Restaurant Employees Int’l Union, has reportedly settled charges of embezzlement and misuse of union funds. Thomas Hanley has resigned as HERE’s director of organization and as president of Local 1 in Chicago. Kurt Muellenberg, HERE’s monitor under the 1995 consent agreement with the Justice Dep’t, confirmed that Hanley’s resignation was stipulated under an agreement settling various charges of misconduct. But, Muellenberg refused to give further details until U.S. Dist. Judge Garrett E. Brown has reviewed the agreement.

However, a government source familiar with the agreement told the Bureau of National Affairs that Hanley agreed to relinquish his two positions and pay a $25,000 penalty. But Hanley would be able to retain his HERE membership (thus his pension), and after Aug. 31, 1999, he could participate in HERE without restriction the source said. Hanley’s ouster comes … Read More ➡

Federal Sting Nabs Corrupt Boss

A Chicago Teamsters boss was indicted Sep. 17 for taking $16,000 in bribes from a mole of an federal investigation called Operation Silver Shovel. The mole, John Christopher, attempted to bribe the boss to overlook his financial obligations to Local 786. The local’s president from 1982-97, Walter Hoff, allegedly accepted two payoffs. Hoff is the 17th defendant charged in the ongoing investigation, but the first defendant named in 10 months, and the first union figure implicated in what has been mostly a public corruption probe.

“Labor union officials are supposed to bargain with employers at arm’s length, not with their hands in each other’s pockets,” said U.S. Atty. Scott Lassar. “The defendant allegedly placed his own financial interest ahead of his
duty to protect the interests of the workers whom he represented.”

Hoff is charged with 9 counts of fraud, labor racketeering and tax evasion. Prosecutors said that one payoff … Read More ➡

Rerun Election Pushed Back

U.S. Dist. Judge David N. Edelstein approved Sep. 14 an new timetable for the Teamsters rerun election. Members will vote Nov. 2-Dec. 3., and counting begins Dec. 3. The reason for the delay: the $538,000 money-laundering schemes employed by the disgraced and expelled president, Ron Carey’ campaign. Taxpayers have been forced to contribute $4 million to the rerun’s monitoring cost after paying nearly $20 million for the failed monitoring of the 1996 election. The corrupt union reluctantly agreed to pay $2 million. This is $2.6 million short of the $8.6 million originally requested. The savings will come from limiting protest processes and substituting electronic devices for security guards at the ballot counting. [BNA 9/16/98]
 
Texas Boss Gets 51 Months for Theft
A Houston Teamsters boss was sentenced Aug. 31 to 51 months in prison for using union funds for personal items such as underwear and monogrammed luggage. Richard … Read More ➡

No Restitution for 2 Embezzlers

Two former union bosses embezzled more than $74,000 from Oil, Chemical & Atomic Workers Local 1-5476 in Lawndale, Cal. and were incarcerated Sep. 3 after pleading guilty Aug. 24. Former int’l rep. Kevin Geddes and secretary-treasurer Robert Redmerski filed false “lost time” claims for reimbursement. According to the Labor Dep’t, the scheme induced local stewards to file false claims and turn over union reimbursements to Geddes, and Redmerski knowingly approved and paid the false claims. Geddes was sentenced to 3 months in prison, 3 months in a halfway house and 3 years probation and was ordered to obtain substance abuse and psychiatric treatment. Redmerski was sentenced to 6 months in a halfway house and 3 years probation. Fines and restitution of union members’ lost funds were waived in exchange the for guilty pleas, as were conspiracy and extortion charges. [BNA 9/4/98]

Oregon Boss Embezzled $88K
Association of Western Pulp … Read More ➡

Union Violence in U.S. West Strike

 Before U.S. West won a tentative agreement with the Communications Workers of America on Aug. 30, the 2-week strike was marred by union violence. On Aug. 21 U.S. District Judge Stephen L. Henriod issued a temporary restraining order prohibiting CWA from threatening and intimidating people entering or leaving U.S. West buildings. The order came after the company submitted a half dozen affidavits of threats and intimidation:

  • A contractor was approached at his motel by 3 people, including one who threatened to “take you out if I see you working.” The contractor said the person making the threat had a gun. Police have charged a CWA member with public intoxication and making threats with a gun in the incident.
  • Militants at a rally blocked the entrance to a company parking lot.
  • A company manager working to maintain service during the strike was struck in the head with a rock. His car
Read More ➡

Members Move to End Local

 Asserting rising disgust with their union, nearly 100 KCAL-TV employees in L.A. have decided they no longer want to be represented by the Int’l Bhd. of Elec. Workers due in part to union corruption. Members petitioned the Nat’l Labor Relations Bd. Aug. 5 requesting Local 45 be removed. The petition was withdrawn, but they are still looking for alternatives. In a complaint letter to Local 45 bosses, members stated their motivation includes “the financial mismanagement of our money” and the strike fund “which we’ve paid into for years, is now non-existent, and no one from IBEW has satisfactorily answered our questions as to where the money has gone.” The corruption reference is to James E. Jackson (see: UCU 1.6 8/24/98), Local 45 business manger, who was recently indicted for allegedly embezzling over $63,000. [Daily Variety 8/25/98]

45 Days & $21K for N.Y. Boss
 James T. Russo was sentenced Sept. … Read More ➡

Union Bosses Lavish Hawaiian Junket

The Am. Fed’n of State, County & Municipal Employees held its 1998 national convention in Honolulu. Aug. 24-28, and Newsday  ran an excellent article demonstrating its scandalous and costly behavior.  The article focused only on AFSCME locals in N.Y., so the insights gained here can be multiplied at least 50 fold.

“Undeterred by subpoenas issued in a grand-jury investigation of union spending, hundreds of officials of the city’s largest municipal union are in Hawaii…for a conference expected to cost its members $2 million to $3 million.”  AFSCME District Council 37 sent nearly 800 union officials; all were staying at the Sheraton Waikiki for “$185 daily, payable by the union.” Airfare and meals will be reimbursed as well. “The ‘Aloha AFSCME’ agenda include[d] a speech…by Vice President Al Gore [and] sightseeing tours…”

In comical defense, District Council 37’s executive director, Stanley Hill told Newsday, “This is not a junket. … Read More ➡

Victory for Freedom from Union Bosses

In a clear defeat for union bosses, the 6th U.S. Circuit Court of Appeals ruled Sep. 1 that Ohio may constitutionally ban public employers from administering automatic payroll deductions for political purposes.  Union bosses challenged the 1995 campaign finance statute which included a ban on payroll “checkoffs.” The decision reversed a lower court ruling that the ban violated the unions’ free speech and free association rights under the First Amendment. Writing for the court, Judge Danny J. Boggs said that even the unions conceded that they had no affirmative right to wage checkoffs to support political causes. “The wage checkoff ban simply does not impinge in a constitutionally significant manner on any First Amendment rights,” Boggs wrote. The “privilege” of checkoffs was not being denied to harm or condition constitutional rights, he explained. Moreover, Ohio had an interest in “removing partisan politics from places of public employment.” [BNA 9/2/98]… Read More ➡

Coia Accused of Favoritism in Union Election

General President of the Laborers Int’l Union of North Am., Arthur A. Coia, was accused in a lawsuit filed Aug. 28 in U.S. District Court of helping allies of a corrupt and ousted boss gain an unfair advantage in an upcoming election. Just before LIUNA Local 190 in Albany was to begin filling the vacancy left by ousted business manager Samuel Fresina, a legal battle erupted over allegations that Fresina’s loyalists were attempting to control the outcome. Fresina was forced out last month due to alleged ties to organized crime (see: UCU 1.6 8/24/98).

Carmen Francella, Jr., a candidate for the job, filed the suit seeking the nomination meeting be postponed until late-Sep. The complaint said he was denied membership lists that prevent him from properly campaigning and that he has been personally threatened. The nominations meeting was moved from its longtime location in Albany to LIUNA offices in … Read More ➡