Union Corruption Update

Gambino Soldier, Union Bus. Agent Indicted for Multi-Million$ Fraud in NYC

Officials with the U.S. Attorney for Eastern N.Y., the FBI and U.S. Dept. of Labor announced on Sept. 15 a 43-count indictment involving the Metropolitan Transport Authority's new headquarters at 2 Broadway in Manhattan.  The defendants include Edward Garafola, a soldier in the Gambino organized crime family, and Junior Campbell, a business agent with Local 79 of the Laborers' Intl.

Trial of Upper NY Union Bosses Finally Set

It's been more than 2 yrs. since more than a doz. union bosses and their servants were indicted for violent racketeering in the Buffalo-Niagara Falls area.  In that time, one of the alleged ringleaders has died.  But after a federal court hearing on Sept. 17, those trials have finally been scheduled, reports David Staba of the Niagara Falls Reporter. 

 

IRB Bars Ex-Houston Chief from Union

The Teamsters' Independent Review Board, (IRB) has decided to permanently bar ex-Houston local president Chuck Crawley from the union.  That Sept. 9 decision will likely be reviewed by U.S. Dist. Judge Loretta Preska (S.D. NY, G.H.W. Bush) who has jurisdiction over the IRB, which in turn has the authority to take unilateral action against corrupt Teamster officials.

 

Two Ex-Union Employees Confess to Embezzlement in CO Fed. Court

Two ex-employees of a Greeley, Colo. food workers' union face up to 5 yrs. in federal prison and fines of $250,000 after pleading guilty to embezzlement on Sept. 3.  But one of the ex-employees says she has information about a separate case under fed. investigation which could impact her sentence.

 

NJ Union President Indicted For Stealing from Health and Union Funds

A federal court in New Jersey unsealed the indictment against the president of Local 4-69 Hotel Employees and Restaurant Workers Union in Secaucus, N. J., for embezzling more than $130,000 in assets from the union and the health fund, according to the U. S. Department of Labor’s Employee Benefit Security Administration (EBSA) New York regional office.

 

“Theft of employee benefit assets jeopardizes the benefits of workers,” said Francis Clisham, director of EBSA’s New York office. “This case was filed due to the collective efforts of several federal enforcement authorities to ensure that the assets of these funds are used for its intended purposes.”

 

N.Y. Stockbroker Convicted of Pension Theft

Anthony DiPace was found guilty of stealing $314,000 from a union benefit fund on Sept. 17.  His sentencing has been set for Jan. 15.  In Albany, DiPace was convicted of 11-counts incl. embezzlement, fraud and the unlawful collection of commissions between 1993 and 1996 when he was manager of the health and welfare plan of Laborers Intl. Union of North America Local 190.

 

DiPace stole $314,000 from the union in a series of financial trades through a private brokerage involving excessive commissions. Prosecutors said he violated federal rules that prohibit investment managers from also acting as brokers.  An expert witness testified that the 2.09 percent average commissions DiPace charged the union was 16 times higher than the national average.

NYC Member Sentenced for Threatening Witness

On Sept. 8, in the U.S. District Court for the Eastern District of New York, Peter McDonegh, a member of Elevator Constructors Local One, was sentenced to two years in prison for witness tampering.  McDonegh admitted to verbally threatening the son of two primary witnesses during the course of the criminal trial of Charles Novak, the former executive vice-president of Local One and McDonegh's former father-in-law.  The sentence follows a joint investigation by the NY Dist. Office of the U.S. Ofc. of Labor-Mgmt. Standards and the FBI. [OLMS, 9/15/04]

 

Ex-Pres. Pleads Guilty to Embezzlement in Penn. Fed. Court

Union Politicking, Wasteful Spending Plague Mo. Fire Protection

In Chesterfield, Mo., the 3 members of the Monarch Fire Protection Dist. Bd. meet twice a month to discuss district business.  Some of the meetings, held in a boardroom attached to a firehouse, last little more than half an hour.  For that part-time work, the board members -- a surgeon, a business owner and a college teacher -- have been paid a total of $13,050 so far this year.  That doesn't count the health insurance the dist. provides to each of them, bringing the board's expected compensation this year to more than $70,000.

 

Fla. Grand Jury Wags Finger at Politicking Fire Fighting Union

Members of the Orlando firefighters union should not have been paid by the city for their time spent working on Mayor Buddy Dyer's campaign, a grand jury concluded.  But the jury, impaneled during an investigation into the March election that kept Dyer in office, issued no indictments.

 

"While the grand jury finds that the evidence is insufficient to charge criminal violations, it does find that the practice of using public funds to compensate firefighters while engaging in union activities to be a violation of the public trust and poor stewardship of public moneys," the grand jury foreman said after Tuesday's closed hearing.

 

Hand-Picked Union Court Fines Employees Who Worked during OH Strike

A clerical worker who crossed the picket line during last year's strike at the Summit County, Ohio, Children Serv. Bd. (CSB) has been found guilty in a union trial and fined $27,496.65.  Almondine Poole is one of 38 crossers who stood trial over the past two Saturdays.  All the defendants have been found guilty and fines range from $3,000 to $39,000, based on salary and overtime earned during the five-month strike.

 

Syndicate content