Jeffrey Davies ran a railroad workers union. His union brothers probably wish he would take a one-way trip to somewhere else. On December 16, Davies, former president of American Federation of Government Employees Local 183, was indicted in U.S. District Court for the District of Alaska on one count of embezzlement in excess of $100,000 in funds from the Anchorage-based union. Though members are not government agency employees, their employer is the Alaska Railroad, a corporation owned by the State of Alaska. This status has enabled the union to affiliate with the AFGE. The indictment follows a joint investigation by the FBI and the U.S. Labor Department’s Office of Labor-Management Standards.
Prosecutors allege that during 2011-14, Davies, 41, a resident of Wasilla, used his position to steal more than $100,000 through cash withdrawals, checks and a union-issued debit card. The affidavit did not provide further details about how much was … Read More ➡
On March 1, Cynthia Angulo, former president of the Currency and Security Handlers Association, was sentenced in U.S. District Court for the Southern District of Texas to 10 months of confinement, to be followed by three years of supervised release, for embezzling $61,272 in funds from the Houston union. She also was ordered to pay full restitution. Angulo had pleaded guilty in August. The union is an affiliate of the Security, Police and Fire Professionals of America (SPFPA). The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On February 26, Patrick Rommevaux, former business representative for International Union of Elevator Constructors Local 62, was sentenced in Onondaga County Court, N.Y. to five years of probation and ordered to pay a $2,000 fine, for grand larceny in the amount of $16,545 from the Syracuse-based union. He previously made full restitution. Rommevaux had pleaded guilty in December immediately after being indicted. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards.… Read More ➡
On February 23, Benjamin Stancil, secretary-treasurer of American Federation of Government Employees Local 451, was charged in U.S. District Court for the Eastern District of North Carolina in a four-count information with wire fraud against the Havelock, N.C. (near New Bern) union. The charge follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On February 19, Malkia King and Adrian Lindsay, respectively, former president and vice president of the Benefit Fund Staff Association (BFSA), were charged in U.S. District Court for the Southern District of New York with embezzling funds from the New York City-based union in an amount of roughly $25,000. The BFSA, with more than 600 members, is part of the powerful and politically-connected Service Employees International Union Local 1199, which represents health care workers in New York City and elsewhere in the northeast. The charges follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On February 18, Alton Alexander, former financial secretary of United Steelworkers Local 2-479, pleaded guilty in the 8th District Court of Kalamazoo County, Michigan to one count of misdemeanor embezzlement in an amount of between $200 and $1,000 from the Plainwell, Mich.-based union. He then was sentenced to six months of probation and ordered to pay $2,553 in restitution, $300 in probation costs and a $100 fine. He previously had paid restitution in the amount of $1,653. Alexander had been charged last September. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
In sports, there is a saying: “There’s nothing worse than a tie.” For public-sector unions, however, a tie is now reason to celebrate. Yesterday the U.S. Supreme Court announced it was deadlocked 4-4 over whether public-sector labor unions have the authority to force nonmembers to pay partial dues (“agency fees”) to keep their jobs. The tie, made possible by the February death of Justice Antonin Scalia, removed the likely deciding vote in favor of the plaintiffs, the leader of whom was a California teacher, Rebecca Friedrichs (in photo). During oral arguments in January, a 5-4 win for the plaintiffs appeared certain. The Court did not reschedule the case, and in so doing, left intact a dismissal of the plaintiffs’ claims by a federal appeals court. Mandatory fees remain a fact of life.
Union Corruption Update delved into this case at length last July. On June 30, the Supreme Court, in … Read More ➡
Shelly Sutton spent a lot of time stealing from her union. She’s now likely to do some hard time. On February 17, Sutton, former treasurer of American Federation of Government Employees Local 477, pleaded guilty in U.S. District Court for the District of Kansas to one count of bank fraud in the amount of $93,094. The Wichita-based union represents employees at the local VA hospital. She had been indicted last November for stealing $65,000 in union funds. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.
Prosecutors had alleged that Sutton, 46, a resident of Augusta, Kan., engaged in the following acts: forged signatures on union checks; made unauthorized cash withdrawals from union accounts; made electronic payments from a union account to her own creditors; and used her union debit card to make unauthorized purchases. She faces up to 30 years in prison and a … Read More ➡
On February 17, Danny Rawls, former member of United Auto Workers Local 2297, was sentenced in U.S. District Court for the Western District of Louisiana to one year of probation and ordered to pay restitution in the amount of $3,208 for concealing acts of theft in financial records of the Shreveport union. He had pleaded guilty in September after being indicted in March 2015. Rawls and Local Vice President Gregory Hill had been charged with embezzlement and forgery totaling more than $12,000. The actions followed a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
When Bruce Dow resigned under pressure as longtime head of the Screen Actors Guild’s pension and health plans in April 2012 amid allegations of extensive self-dealing, a good deal of unfinished business remained. Now the workload has gotten smaller. On November 12, former plan chief information officer Nader Karimi pleaded guilty in Los Angeles federal court to omitting more than $700,000 in income on his tax returns for the years 2005 through 2008. Karimi had changed his “not guilty” plea to “guilty” before U.S. District Judge Fernando Olguin. Sentencing, originally set for March 11, has been reset for April 14. He faces up to three years in prison. The plea follows a probe by the FBI, the IRS, and the Labor Department’s Office of Inspector General and Employee Benefits Security Administration.
The case against Nader Karimi sprung from a complaint filed with the Department of Labor (DOL) four and a … Read More ➡