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
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Strike-Happy CWA in 35 States?

If the Communications Workers of America has its way, it may disconnect America in Aug. as strikes near at 3 regional telephone giants. On Aug. 3, CWA members authorized strikes at BellSouth and US West, and CWA’s board authorized a strike against Bell Atlantic. CWA President Morton Bahr smugly proclaimed, “We have serious problems, much negotiating to do and very little time to go.” Contracts expire at Bell Atlantic and BellSouth on Aug. 8 and US West on Aug. 15. If CWA doesn’t compromise: 73,000 workers at Bell Atlantic in DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT, VA, WV & DC; 48,000 at BellSouth in AL, FL, GA, KY, LA, MS, NC, SC & TN; and 36,000 at US West in AZ, CO, ID, IA, MN, MT, NE, NM, ND, OR, SD, UT, WA & WY will be on strike.

Boss Doctors Union’s Books
Louis DiFiore, the … Read More ➡

Top Cranston Officials’ Trial Set

On Aug. 4, nine months after two union members of the National Association of Government Employees Local 198 in Rhode Island were indicted on racketeering and bribery charges and suspended from Cranston city jobs, City Treasurer Kathleen DeLuca and her husband, Raymond, director of the city’s computer services had their criminal trial date set for Nov. 16. According to the Attorney General, the DeLucas are accused of accepting $188,771 in kickbacks in return for securing about $564,000 in city computer contracts for a company. The DeLuca case was another black eye for Mayor Michael A. Traficante’s administration that has been rocked by the kickback-and-bribery convictions of a Public Works Director and a Parks and Recreation Director. Traficante, who is not seeking reelection this year after 14 years in office, pleaded guilty himself in 1994 to nine campaign-finance misdemeanors. [Providence Journal-Bulletin 08/04/98 & 08/05/98]

Teamsters Cited for Illegal Dues CollectionRead More ➡

Militants Overrun University of Wisconsin Bookstore

On Jul. 31, about 150 militant Union of Needletrades, Industrial & Textile Employees members raided the University of Wisconsin Bookstore claiming the clothing in the store was produced in “sweatshops.” UNITE protesters ripped open the doors and began marching into the store, chanting and shaking cans filled with pieces of metal as employees and patrons watched with “amazement and dismay.” At each level of the store, a contingent peeled off to march around that floor while the bosses continued to the administrative offices. Richard Metcalf, boss of the Midwest Regional UNITE demanded to see “someone in authority.” When denied, UNITE sat down in the halls and began singing a union anthem ”We Will Not Be Moved,” while on the floors below their followers continued to march and chant. As the Madison Police Department moved into positions around the store, UNITE marched out and briefly terrorized a second store up the … Read More ➡

SEIU Fails to Disclose Lobbying

San Francisco unions have never disclosed their lobbying of city officials despite a 10-year-old law aimed at eliminating back-room deal-making. SF’s Ethics Commission is now attempting to force compliance by the unions, particularly Service Employees International Union which is SF’s largest union and has led the lobbying effort this year on hotly-contested health care legislation. The unions face thousands of dollars in penalties if they are found to have knowingly not complied with the ordinance. Union bosses contend they were unaware the measure applied to them. They also argue it is wrong to lump them in with hired-gun lobbyists for corporate interests. And they have said the unions will resist city efforts to force them to make disclosures under the lobbying ordinance.

But that has not sat well with other lobbyists and elected officials. “Since I took office in 1993, the unions have been the strongest lobbying force and the … Read More ➡

Disgraced NHL Boss’ Restitution to go to Defrauded Players

Announced Jul. 16, the $1 million (Canadian) in restitution paid by the founder of the National Hockey League Players’ Association, R. Alan Eagleson, will be divided among 1,400 players harmed by his embezzlement schemes. On Jan. 6, the NHL union boss pled guilty in U.S. District Court in Boston to 3 counts of fraud and theft thereby avoiding prosecution on 32 counts which included stealing from players’ pension funds and insurance premiums, as well as cheating players out of disability money. The next day, he pled guilty in a Canadian court to 3 counts of fraud for skimming advertising money for tournaments and other hockey entities. On top of the restitution, he was sentenced to 18 months in prison in Canada, but was released Jul. 6 after serving only 6 months. [Boston Globe 01/06/98 & Toronto Star 07/17/98]… Read More ➡

Probe of CA Teachers Association Concludes

San Bernardino Co., CA District Attorney’s Office’s investigation into embezzlement schemes involving local teachers unions concluded on Jul. 8, when San Bernardino Co. Superior Court sentenced Nancy Hooper to 180 days of electronic surveillance. Hooper had pled guilty to 8 counts of grand theft embezzlement and 1 count of receiving stolen property. Hooper stole more than $36,000 from the Fontana Teachers Association’s checking account for her personal use. The former Fontana City Councilwoman was also ordered to pay $11,000 in restitution, which is on top of $22,000 already paid. She will also pay the $400 monthly surveillance cost.

This comes less than a month after a Rialto, CA teachers union official was sentenced to 28 months in prison for embezzling about $110,000 from the Rialto Educators Association and Citrus Belt UniServ which oversees several area teachers unions including Fontana Teachers Association. Mary Jane Bronson pleaded guilty to 2 counts of … Read More ➡

Dissention in the Teamsters Ranks in A-B Strike Vote

Some Teamsters are angry at the way their union is handling negotiations with Anheuser-Busch (A-B) and have successfully delayed the counting of votes on the latest strike proposal. The ballots mailed to 8,000 Teamsters were supposed to be counted on Jul. 15, but the challenges delayed the mailing of ballots and pushed back the count to Jul. 30. Bosses at 8 of the 16 locals that represent the A-B workers asked the Teamsters to call off the vote. The opponents said they were confused about what they were voting on because of additional proposals. But the Teamsters systematically rejected all the opponents’ challenges. Officers of the Baldwinsville, NY and Williamsburg, VA locals hoped the Teamsters would reconsider its decision; otherwise, court action is possible according to Steve Richmond, a member of the Baldwinsville union’s negotiating team. He said that federal law guarantees workers the right to an “informed vote” in … Read More ➡

Improper Election of Rhode Island Boss

RI’s American Federation of State, County & Municipal Employees Council 94 has been ordered to rerun election of top officers because it allegedly failed to ensure a secret-ballot vote. The investigation was sparked by self-styled dissident Linda C. Riendeau who lost to incumbent union boss J. Thomas Chellel at the Apr. convention. Chellel has run Council 94 since 1979. AFSCME’s judicial panel in Washington questioned whether 71 delegates to the convention, who voted on behalf of 8,000 union members, were able to vote by secret ballot. The panel was also troubled by a plan to change the formula for determining the size of Council 94’s executive board which the panel said was improperly adopted and didn’t allow Riendeau a chance to organize her own board slate. Announced Jul. 10, the rerun will be Aug. 12. [Providence Journal-Bulletin 07/09/98 & 07/11/98]

Lazy Unions In Springfield, IL
Poor work habits by … Read More ➡

AFL-CIO’s Candidate Evades Sanctions

Gubernatorial candidate Glenn Poshard (D-IL) will not face sanctions for improperly handling contributions from the AFL-CIO. Poshard’s campaign “acknowledged it failed to properly report nearly $109,000 in advertising on its behalf by the AFL-CIO,” according to State Board of Elections (SBE) documents released Jul. 16. Under an agreement with the IL Republican Party, which filed the complaint, and accepted, by the SBE, Poshard’s campaign will not be punished as long as it doesn’t repeat the violation. [Chicago Daily Herald 07/17/98]

AFL-CIO Attack Ads Roll Again
In a preview of their preferred plan of attack against Republicans, the militant and corrupt Sweeney-Trumka AFL-CIO has started another irresponsible nationwide television campaign. The union ads attack Republicans on the HMO reform/patients rights issue, wrongfully distorting Republican proposals. According to the National Republican Congressional Committee, the union ads are running in at least 9 media markets including Birmingham, Louisville and Boise – very … Read More ➡