Union Corruption Update

Secretary-Treasurer of Minnesota Rail Workers Local Indicted

LocomotiveOn April 6, Cory Carroll, secretary-treasurer of the Brotherhood of Locomotive Engineers and Trainmen's Regional and Shortline Committee of Adjustment, was indicted in Minneapolis federal court for embezzlement. Prosecutors say that during February 2007-March 2009, Carroll, 39, a resident of Albert Lea, illegally diverted about $35,000 from the labor organization to his own use. The indictment follows an investigation by the Labor Department's Office of Labor-Management Standards.

SEIU's Stern Leaves Troubled Legacy

Andrew SternAlmost everyone connected to organized labor by now has heard the news: Andrew Stern soon will resign as president of the Service Employees International Union. His departure in all likelihood will be permanent. And, if somewhat muted, so will the edgy aggression of the union he redefined. Stern made the announcement on April 14 at an SEIU executive board meeting, confirming a flurry of rumors emanating from an internal e-mail sent by Seattle SEIU local leader Diane Sosne. Stern subsequently e-mailed his own members: "There's a time to learn, a time to lead, and then there's a time to leave. And shortly, it will be my time to retire...and end my SEIU journey." The date of departure, though unspecified, will be within a month. Better political instincts suggest Stern will find plenty of ways to keep himself busy.

Bookkeeper for Public School Employees Union in Vermont Pleads Guilty, Sentenced

Amy Cousino was a union employee for only a year. But during that time, she racked up an impressive track record of embezzlement. Cousino, a former bookkeeper for Addison Northeast Supervisory Union (ANESU), pleaded guilty on Monday, April 12 in Vermont District Court in Middlebury to one count of felony embezzlement and one count of misdemeanor petty larceny. She had been charged last June. Cousino received a sentence (suspended) of 30 days to six months, plus five years probation, and was ordered to pay $41,746.91 in restitution, $10,000 of which she paid at sentencing.

Rhode Island Police Union Treasurer Arrested for Embezzlement

Police employees typically help arrest thieves, not become them. For more than five years Douglas Rogers did both. Rogers, a clerk-dispatcher for the North Kingstown, R.I. police department and a former office employee of International Brotherhood of Police Officers Local 473, was arrested on April 13 for embezzling more than $150,000 from the union. Rhode Island State Police arrested him at his home and arraigned him at nearby police barracks. He was released on a promise to pay $10,000 in lieu of appearing in court.

Longshoremen Bookkeeper in Los Angeles Sentenced for Thefts

For Rosa Della Porta, the new BMW and other accessories in the end weren't worth it. Della Porta, formerly office manager-bookkeeper for International Longshore and Warehouse Union (ILWU) Local 26, was sentenced on March 29 in Los Angeles federal court to 21 months in prison for embezzling well over $100,000 in union funds. She had been convicted by trial jury a year ago following the discovery of a pattern of thefts by local officials and a subsequent federal investigation. Della Porta, who was fired by her union in November 2006, also will have to pay $121,475 in restitution.

Seattle-Area Hospital Workers Local President Pleads Guilty to Thefts

AFGE logoAbout the only thing Sid Mannetti can hope for now is leniency. Mannetti, formerly president of American Federation of Government Employees Local 1170, pleaded guilty in Seattle federal court on Thursday, April 8 to embezzling more than $50,000 from his union, which represents about 140 employees at Pacific Medical Centers in the Seattle area. During 2006-08 he diverted funds from the union's credit card and bank account to pay for personal expenses. He had been charged in January. The guilty plea follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Communications Workers Secretary in St. Louis Sentenced for Embezzlement

Communications workersGambling losses have contributed to the downfall of dozens of union officials and employees over the past several years. Sherell Mitchell, formerly secretary-treasurer of Local 86823 of the Communications Workers America, has joined their ranks. On April 8 Mitchell was sentenced in U.S. District Court for the Eastern District of Missouri to six months of house arrest, five years of probation and 200 hours of community service for embezzling more than $110,000 from the St. Louis union. She pleaded guilty when charged more than three months ago. As part of her plea agreement, she paid a lump sum of about $50,000 toward restitution.

Oregon Carpenters Local Office Manager Indicted for Thefts

Carpenters union convention Embezzlement, or at least its detection, is catching lately in Oregon's labor organizations. Toni Lancaster is yet another casualty. The ex-office manager for United Brotherhood of Carpenters and Joiners Local 711 in Portland, was indicted in U.S. District Court for the District of Oregon for embezzling some $68,000 from her union. Federal prosecutors charge that Lancaster, 40, a resident of the Portland-area community of Milwaukie, wrote unauthorized union checks to herself and falsified financial records to conceal the thefts. She pleaded not guilty and faces trial on June 1. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Carpenters Financial Secretary in Oregon Charged with Embezzlement

Carpenters union convention Charles Owens stole from his union for four years. He's now hoping his sentence won't last as long. Owens, former financial secretary of United Brotherhood of Carpenters and Joiners Local 2791, was indicted on March 30 in U.S. District Court for the District of Oregon for embezzling at least $65,000 from the Albany, Ore.-based union. Prosecutors allege that Owens, 61, a resident of Eugene, during 2004-08 made unauthorized cash withdrawals on a local account. As with Michele Pedersen, he pleaded not guilty and faces a trial scheduled for June 1. The indictment follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

AFSCME Local Treasurer in Oregon Indicted for Embezzlement

AFSCME logoOn March 30, Michele Pedersen, formerly treasurer of American Federation of State, County and Municipal Employees Local 2746, was indicted in U.S. District Court for the District of Oregon for embezzling about $8,500 from the Astoria-based union. During 2002-07, charge federal prosecutors, Pedersen, 41, a resident of Keizer (near Salem), wrote herself unauthorized union checks and altered union financial records to conceal the thefts. She was released after pleading not guilty. Trial is set for June 1. The indictment follows a probe by the U.S. Labor Department's Office of Labor-Management Office.

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