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.

Indiana UAW Local Secretary Charged with Embezzlement

Auto Workers logoOn January 7, Connie Sayne, former financial secretary of United Auto Workers Local 3050, was charged in U.S. District Court for the Southern District of Indiana with embezzling $25,699.53 in funds from the Hagerstown, Ind. union. Sayne, 51, a resident of nearby Connersville, Ind., during June 2010-April 2012 allegedly wrote 64 unauthorized union checks to herself.  The union represents employees of Autocar, a Hagerstown-based manufacturer of garbage trucks. The charge follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Steelworkers Secretary-Treasurer in Texas Sentenced for Embezzlement

Steelworkers logoOn January 4, Cleo Wilson, former secretary-treasurer of United Steelworkers Local 1856, was sentenced in U.S. District Court for the Eastern District of Texas to 12 months incarceration and three years of probation for embezzling funds from the Dallas-based union and then falsifying union records to conceal the thefts. She also will have to pay restitution in the amount of $29,856.19. Wilson had been indicted in June 2011, and pleaded guilty in March 2012. The actions follow an investigation by the Labor Department's Office of Labor-Management Standards.

Rockford, Ill. Laborers Office Manager Pleads Guilty to $200K Theft

Laborers logoSkimming contributions long has been a favored method of theft by union embezzlers. But the odds of getting caught eventually catch up. Just ask Grace Rathke. On January 3, Rathke, formerly office manager for Laborers Union of North America Local 32, pleaded guilty in U.S. District Court for the Northern District of Illinois to stealing more than $190,000 in funds from the Rockford union. She had been indicted in August 2011 on 10 counts of embezzlement following an investigation by the U.S. Labor Department's Office of Labor-Management Standards and Office of Inspector General.

Transport Workers Secretary in Fort Worth Area Charged

TWU logoOn January 2, Kady Tucker, former office secretary for Transport Workers Union Local 575, was charged in the State of Texas, 396th District Court in Tarrant County, with intent to defraud another person via forgery. The union is based in Fort Worth. The charge follows an investigation by the Labor Department's Office of Labor-Management Standards.

Boston Plasterers Local Secretary Charged with Theft

Plasterers logo  On January 2, Linda Weed, former office secretary for Operative Plasterers and Cement Masons International Union Local 534, was charged in the Trial Court of Massachusetts, BMC Department, with one count of larceny from the Boston-based union in the amount of $7,294.73. The charge follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Former Southern California SEIU Boss Freeman Found Guilty

Tyrone FreemanDespite all evidence to the contrary, Tyrone Freeman (see photo) was convinced he was innocent. It proved less a conviction than a delusion. This past Monday, January 28, a Los Angeles federal jury convicted the once-powerful Southern California Service Employees International Union (SEIU) leader on 14 criminal charges, including embezzlement, mail fraud and tax fraud. It was an ignominious downfall for a man whom many believed one day would succeed his ally and mentor, then-SEIU President Andrew Stern. "This was a case about abuse and betrayal," said U.S. Attorney Andre Birotte Jr. "Freeman abused his position as a leader of the SEIU, and he betrayed the hardworking people whose interests he was supposed to represent."

Dallas-Area Letter Carriers Treasurer Sentenced for Embezzlement

Letter Carriers logoOn December 19, Wanda Jackson, former secretary-treasurer of National Association of Letter Carriers Branch 4065, was sentenced in U.S. District Court for the Eastern District of Texas to 18 months of incarceration and three years of supervised release for embezzling $41,246.95 in funds from the Plano, Tex.-based union. She also was ordered to pay full restitution plus a $100 assessment. Jackson had been found guilty last March and indicted in July 2011. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Tennessee Steelworkers Local Treasurer Indicted for Embezzlement

Steelworkers logoOn December 18, Gregory Brown, former treasurer for United Steelworkers Local 777, was indicted in U.S. District Court for the Western District of Tennessee on one count of embezzlement from the Memphis union in the amount of $6,587.57. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Machinists Business Agent in Minnesota Charged with Theft

On December 18, James Kiser, former directing business representative for International Association of Machinists and Aerospace Workers District Lodge 165, was charged in Stearns County Court of Minnesota with four counts of theft of $5,919 from the St. Cloud, Minn.-based union during January 2010-February 2012. The charges follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Massachusetts Steelworkers Local Secretary Sentenced for Theft

Steelworkers logoOn December 17, Manuel Nogueira, former recording secretary for United Steelworkers Local 4-421, was sentenced in U.S. District Court for the District of Massachusetts to 18 months of probation for his role in the theft of funds from the union, now based in Auburn (near Worcester), Mass. He also will have pay restitution in the amount of $9,000 and a $200 special assessment. Nogueira had been indicted back in October 2010 with three other local officials for embezzling a combined $7,000; he pled guilty in April 2011. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

NLRB Mandates Dues Check-Offs Even After Union Contract Expires

money photoThe National Labor Relations Board may be inoperative at present. Yet one of its rulings last month, unless undone, will curtail a longstanding right of employers and individual workers. On December 12, in WKYC-TV Inc., the NLRB ruled 3-1 that an employer must continue to collect dues from union members via automatic "checkoff" even after the collective bargaining agreement expires. The ruling effectively overturns the board's Bethlehem Steel decision of 1962, which ruled against forced dues check-offs following contract expiration. It's another case of President Obama's appointees to the normally five-member body favoring forced unionism.

TARP Watchdog Blasts Treasury on Bailouts

GM logo/ObamaA watchdog for the government's bailout program, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), has hit the US Treasury Department with a hard combo of critique regarding some of the Administration's actions since pumping billions of taxpayer dollars into bailed-out companies like General Motors and Ally Financial (formerly known as GMAC). SIGTARP issued a report lambasting Treasury for allowing excessive pay for executives at GM, Ally Financial and AIG and followed that with statements that scrutinized Treasury's continued refusal to exit its stake in Ally Financial, which is currently 74% owned by the government.

Machinists Secretary-Treasurer in NE Indiana Sentenced for Embezzlement

On December 17, Mark Morgan, former secretary-treasurer of International Association of Machinists and Aerospace Workers Local Lodge 2584, was sentenced in U.S. District Court for the Northern District of Indiana to three years of probation, including eight months of home detention, for embezzling funds from the formerly Fremont, Ind.-based union. He also was ordered to pay $17,616.70 in restitution and a $100 special assessment. Morgan had been charged in May, and pleaded guilty in August. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

Arkansas AFGE Council President Pleads Guilty; Sentenced

AFGE logoOn December 13, Bryan Lowry, former president of American Federation of Government Employees Council 33, pled guilty in U.S. District Court for the Eastern District of Arkansas to making a false statement in financial records of the Forrest City, Ark.-based union. He then was sentenced to two years of probation and ordered to pay $4,114 in restitution. The plea and sentencing follow a joint probe by the U.S. Labor Department's Office of Labor-Management Standards and the U.S. Justice Department's Office of Inspector General.

Appeals Court Strikes Down Obama NLRB Recess Appointments

NLRB logoWhen is a presidential recess appointment less than an appointment? It would seem when Congress isn't in recess. This Friday morning, January 25, a three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia unanimously invalidated President Obama's three appointments - Sharon Block, Richard Griffin and Terence Flynn - to the National Labor Relations Board (NLRB) of January 4, 2012. The Obama administration is expected to appeal the case, known as Noel Canning v. NLRB, to the U.S. Supreme Court. As Flynn stepped down last summer and another member left in December, the normally five-member NLRB now has only one legitimate member, Mark Pearce.

SEC Nominee Mary Jo White Protected Corrupt Union Bosses in Teamsters Prosecution

Mary Jo White and ObamaMary Jo White is a poor choice to head the SEC. As a U.S. attorney, she demonstrated a lack of political independence and competence.

In the late 90's prosecution of the Teamsters money landering scandal, White won several guilty pleas from low-level has-beens, but gave a pass to prominent union figures who played a key role in the Democratic political campaign of 2000, and every one since. The magnitude of White's dereliction of duty can be seen in who was not prosecuted- Richard Trumka, Andrew Stern and Gerald McEntee.

Washington, D.C. AFGE Local Secretary-Treaurer Sentenced

AFGE logoOn December 14, Gloria Dickinson, former secretary-treasurer of American Federation of Government Employees Local 421, was sentenced in U.S. District Court for the District of Columbia to 30 days of home confinement, five years of probation and 40 hours of community service for making false financial statements. She also was ordered to make restitution in the amount of $21,713.32. Dickinson had been charged early last September and pleaded guilty about a week later. The local is based in Washington, D.C. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Machinists Secretary-Treasurer in Mississippi Charged with Embezzlement

On December 12, Bonnie Nixon, former secretary-treasurer of International Association of Machinists and Aerospace Workers Lodge W443, was indicted in U.S. District Court for the Southern District of Mississippi for embezzling $15,981.66 in funds from the Laurel-based union. The indictment follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Federal Appeals Court Upholds Curbs on Wisconsin Public-Sector Unions; Reverses Lower Court

Wisconsin Gov. Scott WalkerThe ruling might not have eased tension in a state that by now is all too used to it. But it went a long way in clarifying the situation. Last Friday, on January 18, a federal appeals court in Chicago, by a 2-1 margin, upheld the entirety of a Wisconsin law passed in 2011 that repealed most collective bargaining for state and local government employees. In overturning a lower court decision of last March, the three-judge panel concluded the legislation, Act 10, did not violate public-sector unions' constitutional right to free speech or equal protection. The ruling thus removes a major obstacle to Republican Governor Scott Walker's program to improve his state's fiscal condition.

Security Officers Local Treasurer in Mississippi Charged

UGSOA logoOn December 12, Paulette McClure, former treasurer of United Government Security Officers of America (UGSOA) Local 36, was charged in U.S. District Court for the Southern District of Mississippi with embezzlement of $8,166.13 in funds from the Pattison, Miss.-based union. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

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