Union Corruption Update

San Diego-Area NTEU Local President Charged with Records Fraud

NTEU logoOn April 24, Harold Washington, former president of National Treasury Employees Union (NTEU) Chapter 105, was charged in U.S. District Court for the Southern District of California with one count of knowingly failing to include information on allowances and disbursements in a financial report filed by the Chula Vista-based union to the U.S. Labor Department. He then pleaded guilty that day. The charge and guilty plea follow a joint probe by the Labor Department's Office of Labor-Management Standards and the Department of Homeland Security's Office of Professional Responsibility.

UAW Local Business Agent in Indiana Sentenced for Theft

UAW logoOn April 16, Charlotta Hammons, former business representative of United Auto Workers Local 2209, was sentenced in the Superior Court of Huntington County, Indiana to one year of probation, including 120 days of house arrest/electronic monitoring, for converting funds from the Roanoke, Ind.-based union to personal use without authorization. She also was ordered to pay fees and costs totaling $266. Hammons already has paid restitution in the amount of $1,329 after pleading guilty in March. The guilty plea and sentencing follow an investigation by the Labor Department's Office of Labor-Management Standards.

Mississippi Local Machinists Secretary-Treasurer Pleads Guilty to Theft

Machinists logoOn April 11, Bonnie Nixon, former secretary-treasurer of International Association of Machinists and Aerospace Workers Local Lodge W443, pleaded guilty in U.S. District Court for the Southern District of Mississippi to embezzling $15,981.66 in funds from the Laurel-based union. She had been indicted in December. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Plumbers Business Manager in West Virginia Pleads Guilty to Records Fraud

Plumbers logoOn April 10, Jeffrey Beresford, business manager and financial secretary for United Association of Plumbers and Pipefitters Local 83, pleaded guilty in U.S. District Court for the Northern District of West Virginia to falsifying records of the Wheeling local. The guilty plea follows an investigation by the Labor Department's Office of Labor-Management Standards.

UTU Local Secretary-Treasurer in Buffalo Area Sentenced

United Transportation Union logoOn April 10, Joseph Grygorcewicz, former secretary-treasurer of United Transportation Union Local 1566, was sentenced in U.S. District Court for the Western District of New York to three years of probation and ordered to make full restitution for embezzling nearly $40,000 from the Tonawanda, N.Y.-based union during late 2009-early 2011. He also was ordered to undergo counseling for compulsive gambling. Grygorcewicz, a resident of Amherst, N.Y., had pleaded guilty last November. The union represents railroad workers in the Buffalo area. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

Former Head of Virgin Islands Police Union Arrested for Thefts

Virgin IslandsConsidering the kind of people who belong, police unions typically aren't where theft happens. But Donald Liburd apparently wasn't typical. On March 15, Liburd, now 48, formerly the president of the St. Thomas-St. John, U.S. Virgin Islands Police Benevolent Association (PBA) and a detective on the local police force, was arrested for stealing more than $65,000 from the union during the three years he headed it. He had been removed from his position in the summer of 2011 by fellow union members. Following his arrest, Liburd was released on a $25,000 bond.

Laborers Office Manager in Illinois Sentenced for Thefts

LIUNA logoOn April 9, Grace Rathke, former office manager for Laborers International Union of North America Local 32, was sentenced in U.S. District Court for the Northern District of Illinois to 17 months in prison and three years of probation for embezzling more than $190,000 in funds from the Rockford-based union during November 2004-March 2009. She also was ordered to pay restitution in an amount exceeding $200,000. Rathke had been indicted in August 2011, and pled guilty this past January. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards and Office of Inspector General.

Detroit-Area AFSCME Secretary-Treasurer Sentenced for Embezzlement

AFSCME logoOn April 9, Richard Ikerd, former secretary-treasurer of American Federation of State, County and Municipal Employees Local 2568, was sentenced in the Third Judicial Circuit Court of Wayne County, Michigan to 90 days in jail and five years probation for embezzling funds from the Melvindale, Mich.-based union in an amount between $1,000 and $20,000. He also was ordered to pay $16,065 in restitution plus fees totaling $1,198. Ikerd pled guilty last October after being charged in July. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

President of NYC Painters Local Pleads Guilty to Fraud, Tax Evasion

IUPAT logoThe coffers of Metal Polishers Local 8A-28A are due for replenishment. Members are hoping they don't have to wait too long. On April 9, Hector Lopez, former president of the Long Island City (Queens), N.Y.-based union, pleaded guilty in U.S. District Court for the Eastern District of New York to conspiracy to commit mail fraud, wire fraud and tax evasion, related mainly to his fleecing of a union benefit plan. He also will have to make restitution in excess of $1.1 million. Lopez had been arrested and indicted last September on 15 counts of fraud, embezzlement, tax evasion and other offenses following a joint investigation by the U.S. Department of Labor and the Internal Revenue Service.

NBA Players Association Financial Adviser Charged in $3 Million Fraud Scheme

Billy HunterJoseph Lombardo isn't a pro basketball player. But a number of people who play the game for a living aren't very pleased with his approach to managing their union's finances. Neither is the Justice Department. On Thursday, April 25, federal prosecutors in Manhattan announced the indictment and arrest of Lombardo for attempting to defraud the National Basketball Players Association (NBPA) of more than $3 million. Lombardo allegedly used his position as managing director of a Cleveland-area investment bank in 2011 to forge the signature of the deceased union general counsel as part of a service contract renewal, and then, with another firm employee, gave false testimony before a grand jury. The actions come in the wake of a unanimous vote by the NBPA board of player representatives in February to oust Executive Director Billy Hunter (in photo) following the release of an full-length audit.

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