Union Corruption Update

Since 1997, NLPC has become a high-profile and credible source for information about America’s labor unions through our publication Union Corruption Update.

The newsletter has been referenced in many other media outlets including the New York Times, Chicago Tribune and National Journal.

Machinists Business Agent in Virginia Charged with Embezzlement

Machinists logoOn April 25, Jeff Agee, former business representative of International Association of Machinists Lodge 10, was charged in U.S. District Court for the Eastern District of Virginia in an information count with embezzling funds from the Richmond-based union in the amount of $4,181.62. The charge follows an investigation by the Labor Department's Office of Labor-Management Standards.

Ex-Teamsters Headquarters Employee Indicted for Theft

Teamsters President James HoffaOn April 24, Salvador Camey, a former employee at the Washington, D.C. headquarters of the International Brotherhood of Teamsters, was indicted in U.S. District Court for the Central District of California on 16 counts of embezzlement from the union totaling $7,258.92. Camey, as a member of Teamsters Local 396 in Southern California, helped lead a two-week strike in October 2007 against Waste Management Inc. The recent charges follow a probe by the Labor Department's Office of Labor-Management Standards and Office of Inspector General.

Plumbers Business Agent in Central New Jersey Pleads Guilty

Plumber at workPeter LoMauro was a person who for a fee could make a contractor's labor problems disappear. Now he himself is likely to disappear for a while. LoMauro, a business agent for United Association of Plumbers and Pipefitters Local 9, pleaded guilty in Trenton, N.J. federal court on Tuesday, May 8 to soliciting and receiving a bribe and to embezzling funds from the Englishtown, N.J. (Monmouth County) union. The plea was not unexpected; the U.S. Attorney's Office already had taken statements from two cooperating witnesses indicating how LoMauro had solicited bribes and then deposited them into an account he controlled.

Ally Financial - Another Auto Bailout Bankruptcy

The Obama Administration has become quite the expert on bankruptcy filings. The Detroit Free Press reports that the third auto bailout partaker, Ally Financial, has filed bankruptcy for its mortgage subsidiary, ResCap. The government still owns 74% of Ally, and now has an 0 for 3 record on restructuring bailed out auto-related companies outside of bankruptcy.

Ex-Auto Workers Local President in Kentucky Charged

UAW logoOn April 17, Thomas Coffey, former president of United Auto Workers Local 912, was charged in U.S. District Court for the Eastern District of Kentucky with making false entries in financial records of the Lexington-based union for the years 2005-08. The charge follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Missouri AFGE Local President Sentenced for Embezzlement

AFGE logoOn April 10, Vicki Guynn, former president of American Federation of Government Employees Local 1612, was sentenced in U.S. District Court for the Western District of Missouri to four months home confinement and three years probation for embezzling $16,081 in funds from the Clever (near Springfield) union. She pled guilty in December. The guilty plea and sentencing follow a joint investigation by the U.S. Labor Department's Office of Labor-Management Standards and Office of Inspector General, and the Justice Department's Office of Inspector General.

Bruce Dow Forced Out as Head of SAG Benefit Plans

SAG logoIn the world of high-level office politics, a leave of absence set against the backdrop of scandal all too often is a prelude to resignation. That's the way it played out at the Screen Actors Guild. On April 25, the union's longtime Producers Pension and Health Plans (SAG-PPHP) CEO, Bruce Dow, resigned his position, effective April 30, in the face of a wrongful termination suit filed in California state court on March 22 by a former plan official, Craig Simmons. Dow, on disability leave since January, had announced his intent to retire in March. Simmons' suit, which follows his complaint of last September with the U.S. Department of Labor, alleges Dow and loyalists embezzled millions of dollars in SAG benefits and then stonewalled probes. The plans' interim head is its chief operating officer, Christopher Dowdell. Dow will remain as a consultant.

Connecticut Postal Employees Local President Sentenced

Postal workers logoOn April 9, Michael Martin, former president of American Postal Workers Union Local 3093, was sentenced in U.S. District Court for the District of Connecticut to five years of probation, the first six months of which must be spent in home confinement with electronic monitoring, for acts of theft. He also will have to perform 200 hours of community service and pay restitution in the amount of $20,201. Martin had pleaded guilty in January to embezzling $11,320.61 worth of U.S. mail, plus another $8,880.78 in funds from the Norwalk-based union. The guilty plea and sentencing follow a joint investigation by the U.S. Labor Department's Office of Labor-Management Standards and the U.S. Postal Service's Office of Inspector General.

Steelworkers Local Treasurer in Ohio Indicted for Theft

Steelworkers logoOn April 9, Richard Clemons, former financial secretary-treasurer for United Steelworkers Local 332, was indicted in Crawford County, Ohio, Court of Common Pleas, on one count of theft of between $5,000 and $100,000 from the Upper Sandusky union. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Non-Union Retirees Shafted in Auto Bailouts Told to Get Jobs

One of the most egregious abuses of the Obama Administration's auto bailouts was the blatant favoritism evidenced in the treatment of Delphi (General Motors' parts supplier) retirees. After the Delphi bankruptcy, UAW retirees had their pensions "topped off" by General Motors, apparently with taxpayer money accessed through TARP. While the UAW retirees maintained their pension benefits, non-union, salaried retirees of Delphi lost theirs. There was no logical reason for one group to have their pensions saved while another group lost theirs, just the facts that the distributions were inequitable and the only difference between the groups was that one belonged to a powerful ally of Team Obama and the other did not.

Alabama CWA Local Financial Secretary Indicted for Embezzlement

Communications Workers logoOn March 29, Tammy Greene, former financial secretary for Local 83793 of the Communications Workers of America, was indicted in U.S. District Court for the Southern District of Alabama on one count of embezzlement totaling $31,076.07 from the Selma-based union. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Two Office Employees of Las Vegas LIUNA Local Guilty of Theft, Records Fraud

LIUNA logoOn April 4, Stacy Johnson, former cashier for Laborers International Union of North America Local 872, was found guilty by a jury in U.S. District Court for the District of Nevada of seven counts of embezzlement and three counts of falsifying union records in connection with the theft of $320,000 from the Las Vegas union. Six days later, on April 10, another Local 872 office employee, Aurora Rios, pleaded guilty to 21 counts of embezzlement and three counts of records fraud. The pair, along with another local office employee, Aundrea Valerio, had been indicted in 2010 for embezzlement totaling about $225,000. Valerio is being tried separately. Johnson and Rios are set for sentencing in August. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Virginia Local Security Employees President Sentenced for Embezzlement

Police officerOn April 6, Joseph Meizlik, former president of Security, Police, Fire Professionals of America (SPFPA) Local 454, was sentenced in U.S. District Court for the Eastern District of Virginia to four years of probation for embezzling $9,122.44 in funds from the Fort Lee, Va.-based union. He also was ordered to pay full restitution and a $100 special assessment. Meizlik had been charged in December and pleaded guilty in January. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

GM Boycott Hurting Market Share?

Last week's earnings report from General Motors revealed a troubling statistic for shareholders. GM's market share for North America shrunk from 18.3% a year ago to 16.7% for the latest quarter. Not coincidently, a survey by Yahoo Autos revealed that a full 13% of consumers would now "never" consider purchasing a GM vehicle while another 15% are less likely to purchase. A negative perception of the auto bailout process and the continued political overtones at GM are the reasons for the boycott.

Las Vegas Transit Workers Local President Charged

Las Vegas strip at nightOn March 15, Rose Marie Sotak, former president/business agent and acting treasurer of Amalgamated Transit Union Local 1758, was charged with one count of felony theft of an unspecified sum of union funds in Justice Court, Las Vegas Township, Clark County, Nevada. The union is based in Las Vegas. The charge follows a probe by the U.S. Labor Department's Office of Labor-Management Standards. The complaint includes a warrant for Sotak's arrest and surety bail of $10,000.

Teamsters Official in Chicago Sentenced for Embezzlement

Teamsters logoOn March 21, John Gianonne, former vice president International Brotherhood of Teamsters Local 706, was sentenced in U.S. District Court for the Northern District of Illinois to three months of home confinement and one year of probation for embezzling $11,900 in funds from the Chicago union. Gianonne, who already has made restitution, also must pay a $100 special assessment. He pled guilty last December after being charged in November. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

Texas Letter Carriers Local Treasurer Convicted of Embezzlement

Letter Carriers logoOn March 15, Wanda Jackson, former treasurer of National Association of Letter Carriers Branch 4065, was found guilty by a jury in U.S. District Court for the Eastern District of Texas on embezzling funds from the Plano-based union of $41,246.95. She had been indicted last July. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Michigan Machinists Treasurer Indicted for Embezzlement

On March 14, Renita Dompier, former secretary-treasurer of International Association of Machinists Local Lodge 283, was indicted in U.S. District Court for the Western District of Michigan, Northern Division, for embezzling $8,725.99 from the Baraga, Mich. (Upper Peninsula) union and falsifying local financial records to cover up the thefts. The indictment follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Federal Employees Ex-President in New Mexico Sentenced

On March 13, Gloria Porter, former president of National Federation of Federal Employees Local 2049, an affiliate of the International Association of Machinists and Aerospace Workers, was sentenced in U.S. District Court for the District of New Mexico to 70 months in prison, to be followed by three years of supervised release, for fraud in connection with embezzlement of union funds. In addition to serving time, Porter also will have to pay $143,457.50 in restitution plus a $300 special assessment. She had been convicted on more than 100 counts at a jury trial last June following her indictment in December 2010 for stealing about $135,000. The union represents various employees at the White Sands Missile Range near Las Cruces, New Mexico. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards, the FBI and the Las Cruces Police Department.

Related:

New Mexico Federal Employees Union Official Convicted

Romney Must Clarify Positions on Auto Bailouts and Energy Subsidies

A couple of stories surfaced recently that should be of concern to voters that are analyzing how a Romney presidency would differ from the current administration. President Obama has a track record that can be examined to get a grasp of his agenda, but Governor Romney needs to further explain his positions on two key areas that many voters would expect to see a divergence with our present leader. The reports bring in to question whether or not Romney would be any different from the administrations over the past 12 years when it comes to dumping billions of taxpayer dollars into subsidies and bailouts.

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