Two Ex-Bosses of Milwaukee Local Indicted for Fraud

The good times rolled.  And now, unfortunately, so might Danny Iverson and Debra Timko.  On March 21, a federal grand jury issued a 33-count indictment against the pair, each a former president of Service Employees International Union Local 150.  They were charged with mail and wire fraud in the theft of more than $50,000 from the Milwaukee-based union, part of a scheme to embezzle more than $90,000 to pay for personal expenses.  The local represents stadium workers, nursing home attendants and other service employees.  Iverson, 50, had resigned as president in 2001, shortly after appointing Timko to vice president.  Subsequently, Timko, 41, replaced him as president and held the position through 2004, while Iverson stayed on as “president emeritus.”

 

The indictment indicates that during a two-year period Timko authorized $50,000 or more in fraudulent payments to Iverson from the union’s payroll company as part of an agreement pursuant to her appointment.  Additionally, the pair hired Timko’s sister in Knoxville, Tenn., to serve as union bookkeeper.  This move presumably was to guard against an audit of expense vouchers submitted for reimbursement.  Timko also received payments for vacation time not used.  In addition to the thefts, Iverson and Timko are charged with hiding documentation of their actions on Department of Labor financial reporting forms.  The indictments come in the wake of an investigation by DOL’s Office of Labor-Management Standards.  (Milwaukee Sentinel Journal, 3/22/06; OLMS, 4/4/06).