UAW Official Pleads Guilty to Receiving Bribes in Chrysler Scandal

As if it wasn’t difficult enough keeping up with the guilty pleas in the ongoing United Auto Workers-Fiat Chrysler corruption scandal, another name now can be added to the list. On Monday, July 23, Nancy Adams Johnson, for a while the second-highest ranking official at the UAW, pleaded guilty in U.S. District Court for the Eastern District of Michigan for accepting tens of thousands of dollars in illegal payments from certain Chrysler executives in return for dropping certain contract demands. She also abused her union credit card. Ms. Johnson had been charged in March in a five-count indictment following a joint investigation by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

According to federal prosecutors, Nancy Johnson, now 57, a resident of Macomb, Mich., conspired with her union and Fiat Chrysler Automobiles (FCA) during collective bargaining sessions in 2015. Company … Read More ➡

Widow of UAW Executive Sentenced for Tax Fraud

Monica Morgan seemed to have married well. In the end, she regretted the experience. On July 13, Morgan, widow of the late United Auto Workers Vice President General Holifield, was sentenced in U.S. District Court for the Eastern District of Michigan to 18 months in prison, to be followed by one year of supervised release, for tax fraud in the amount of $190,747 related to a much larger scheme involving executives at Fiat Chrysler Automobiles (FCA) who diverted an estimated $4.5 million from the company’s training center to certain union officials, including Holifield. She also was ordered to pay full restitution plus a $25,000 fine. Ms. Morgan had pleaded guilty in February following her indictment last July. The actions follow a probe by the FBI, the IRS and the Labor Department.

According to court records, Monica Morgan, now 54, a resident of Harrison Township, Mich., operated two Detroit-based companies, Monica … Read More ➡

Steelworkers Secretary in Arkansas Sentenced for Theft

On July 18, Pamela Noble, former financial secretary for United Steelworkers Local 6904, was sentenced in U.S. District Court for the Eastern District of Arkansas to five years of probation for embezzling funds from the Little Rock union in the sum of $43,274.97. She also was ordered to make full restitution, of which $33,274.97 would be payable to the union and the remaining $10,000 would be payable to the union’s insurance company. Noble had pleaded guilty in February immediately after being charged. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Boston-Area UNITE HERE Secretary-Treasurer Sentenced

Hopefully, Henry Clay Green is getting counseling while serving time. On July 17, Green, former secretary-treasurer of UNITE HERE Local 26, was sentenced in Boston federal court to six months in prison and one year of supervised release for embezzling more than $170,000 in funds from the Medford, Mass.-based union, which represents certain hospitality employees in Massachusetts and Rhode Island. He had pleaded guilty last December after being charged in November. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration. He faces a restitution and asset forfeiture hearing on September 26.

Henry Clay Green Sr., now 61, a resident of Boston, served as secretary-treasurer of UNITE HERE Local 26 during May 2011-July 2016. According to federal prosecutors, he also diverted funds from the local during much of that time, primarily to maintain his opioid addiction. Eventually, … Read More ➡

Teachers and Coaches Should Quit NEA to Protest Kaepernick Award

The National Education Association thinks Colin Kaepernick is an ideal role model. Many members, however, may take their loyalty elsewhere. And frankly, they should. On July 1, the NEA honored Kaepernick, along with several other persons and organizations, with a “Human and Civil Rights” award in recognition of the former pro-football star’s campaign “to fight racial oppression through education and social justice activism.” The born-again political revolutionary, who these last couple years has been peddling the idea that police are conducting a nationwide pogrom against innocent blacks, accepted the honor with predictable melodrama. “To me, this is bigger than football and it would be selfish on my part to look the other way,” he said. “There are bodies in the streets.”

If not necessarily as a pro-football player, then as an activist, Colin Kaepernick has come of age. By initiating the now-common pregame kneel-down, fist-in-the-air ritual during the playing of … Read More ➡

Hedge Fund Manager Pleads Guilty to Wire Fraud Benefiting NYC Corrections Union Boss

Murray Huberfeld had something on his mind other than front row seats at New York Knicks home games. That’s why he’s headed for prison. On May 25, Huberfeld, founder and head of a now-defunct hedge fund, pleaded guilty in Manhattan federal court to wire fraud conspiracy in connection with his payment of a $60,000 bribe through an intermediary to Norman Seabrook, deposed longtime president of New York City’s Correction Officers Benevolent Association (COBA), which represents employees at the sprawling Rikers Island jail complex. In exchange for the bribe, Seabrook allegedly had steered $20 million in COBA pension funds to the hedge fund, known as Platinum Partners. Huberfeld is scheduled for sentencing on September 14. Seabrook is set to go on trial on July 30.

Union Corruption Update covered this story at length back in June 2016. Norman Seabrook, who ran the 9,000-member Correction Officers Benevolent Association for more than two … Read More ➡

Treasurer of Massachusetts NEA Affiliate Charged with Embezzlement

As a school teacher, Kerrie Clarke may have done right by her students. But as a union officer, she did not do right by her fellow members. On April 27, Clarke, former treasurer of the Grafton Teachers Association (GTA), was charged in Westboro District Court with embezzling nearly $20,000 from the association, an affiliate of the Massachusetts Teachers Association, in turn an affiliate of the National Education Association. She already had resigned her position as a teacher at Millbury Street Elementary School in Grafton (Worcester County), Mass. last November. Clarke was released after entering a plea of not guilty.

According to court documents, Clarke, now 45, a resident of North Grafton, Mass., during January 2016-October 2017 used a GTA credit union account to make unauthorized withdrawals, purchases and credit card payments. She also allegedly deposited numerous union checks into a personal bank account. Clarke’s schemes began to unravel after the … Read More ➡

NLRB Rules in Favor of Dissenting Disney World Teamsters

A union can be counted on to react poorly in the face of news that its members are leaving. It may even break the law to prevent attrition. On June 20, the National Labor Relations Board, upholding an administrative court ruling, ordered International Brotherhood of Teamsters Local 385 to reimburse former members for dues deducted from their paychecks after those members had submitted resignation requests. Moreover, concluded the NLRB, the union must post a message on its premises informing workers of their right to withdraw their consent to be represented. The decision was handed down amid allegations by members of the Orlando, Fla. local that their leaders have stolen funds and covered up the thefts. The international union is investigating these charges.

Teamsters Local 385 represents bus drivers and costumed characters at Walt Disney World. Yes, even Goofy, Donald Duck and Mickey Mouse, and the transporters of tourists to … Read More ➡

Texas Pharmacist Sentenced for Benefit Fraud

It takes some real teamwork to fleece the U.S. Department of Labor out of tens of millions of dollars. Nermin Awad El-Hadik, unfortunately, was an integral part of the team. On June 29, Ms. El-Hadik, owner of a Houston pharmacy, was sentenced in U.S. District Court for the Western District of Texas to five years in prison and three years of probation for paying more than $5 million in kickbacks to a Texas-based medical provider in return for referrals who then could be overcharged on prescriptions. She also was ordered to pay restitution. The kickbacks were part of a much larger scam to create fake or exaggerated worker’s compensation claims. El-Hadik had pleaded guilty in November 2016. The action follows a probe by the FBI, Army, Postal Service and Labor Department.

Nermin El-Hadik, now 42, a resident of Bellaire, Tex., was the owner-operator of Hope Pharmacy in Houston. During March-December … Read More ➡

IATSE Officials in Southeast Virginia Charged with Fraud

On June 26, Dennis and Dorian Nicely, respectively, former vice president and former business agent of International Alliance of Theatrical Stage Employees Local 264, were charged in U.S. District Court for the Eastern District of Virginia with one count each of conspiracy to commit wire fraud and embezzlement of $57,310 in funds from the Hampton-based union. The charges against the husband-wife couple follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡