Reputed Mobster Joins 3 Top Bosses as Racketeering Defendant

A reputed Genovese mob captain from New Jersey has joined three top Longshoremen union bosses as a co-defendant in a federal racketeering indictment that claims the ILA is under Mafia influence, according to the Journal of Commerce.  The extortion and wire-fraud charges against Lawrence Ricci are the latest development in a case scheduled to go to trial May 31 in U.S. District Court in Brooklyn.

 

Ricci is not a member of the Intl. Longshoremen Assn., but is accused of participating in a mob payoff scheme involving an ILA benefit contract. The charges against him were added to an indictment that already included Albert Cernadas, the ILA’s executive vice president and head of Newark Local 1235; Harold Daggett, ILA assistant general organizer and president of the ILA’s New York-New Jersey maintenance local; and Arthur Coffey, the union’s top Miami official. All 3 have pled not guilty.

 

The Read More ➡

Frmr. Ohio Union Employee Charged in Local Court

On March 3, in the Court of Common Pleas, Franklin County (Ohio), an indictment was filed against Aunalie Parsons, former employee of the Ohio Nurses Association, charging her with one count of theft of union funds in an amount more than $500, but less than $5,000. In addition, Parsons was charged with two counts of forgery. The indictment follows an investigation by the Cleveland District Office  of the U.S. Office of Labor-Mgmt. Standards. [OLMS, 3/22/05]

 

Ex-President Indicted in La. Fed. Court

On February 24, in the U.S. District Court for the Western District of Louisiana, an indictment was filed against Pamela Tucker, former president of Local 2525, American Federation of Government Employees, charging her with 28 counts of theft of union funds totaling $6,564.82.  The charge follows an investigation by the New Orleans District Office  of the U.S. Office of Labor-Mgmt. Standards. [OLMS, Read More ➡

Ex-Dem Party Boss Charged with Bankrupting NJ Union

Charles Cart, the former Democratic Party boss for Sussex County, appeared in federal court on March 22 and pled not guilty to allegations of embezzlement and money laundering that bankrupted a local union he founded and once ran.  The same day, Cart was sued by Stacey Melendy, who accused Cart of firing her from his medical company after she got pregnant and refused to get an abortion.

 

Cart was indicted last month on charges that he and two other men embezzled $284,000 from the United Service Workers Local 16, mainly through a health fund administered by Cart’s company, Health Choice Inc.

 

Cart appeared Friday together with his two co-defendants, Charles Wiener — Cart’s step-father — and Marvin Raphael, both of whom also pled innocent.  A federal magistrate set bail for the three men at $200,000 each and ordered them to surrender their passports and whatever Read More ➡

DOL Wins $4.3 Million Settlement in Cap Consultants Case

The U. S. Dept. of Labor has obtained settlement agreements providing for restitution of $4,312,063 to 10 pension and health plans in Arizona, Colorado, Minnesota and Ohio that invested plan assets in risky private placement schemes with Capital Consultants, LLC.  The consent orders also require payment of $862,413 in civil penalties to the government.

 

“Capital Consultants and plan fiduciaries betrayed the men and women whose benefit plans they were entrusted with,” said U.S. Secy. of Labor Elaine L. Chao.  “The department’s legal actions in these cases will restore more than $4.3 million in lost assets to pay benefits to thousands of union workers.”  Capital Consultants was a registered investment manager that provided investment services to more than 60 primarily union-sponsored pension and health plan clients governed by federal employee benefits law.  Since April 2002, DOL has sued trustees of 33 union plans in Arizona, California, ColoradoRead More ➡

Hoffa Fires his “Chief of Staff”

Carlow Scalf, a former Detroit Teamsters boss and former top aide to Intl. president James P. Hoffa the past six years, has been fired amid allegations that he improperly received a housing allowance of more than $69,000.  Scalf was identified last year by Edwin Stier, the union’s former internal investigator, as the person most responsible for shutting down his probe of mob influence in Chicago locals.  Stier resigned last May, perceiving that Hoffa was “no longer committed” to ridding the union of organized crime.

 

The union did not announce Scalf’s firing. His fate was revealed in a letter from a Teamsters attorney to a federal court judge who oversees union affairs.  “General President Hoffa rescinded Scalf’s appointment as Executive Assistant March 12th,” attorney J. Bruce Maffeo wrote U.S. Dist. Judge Loretta A. Preska (S.D.NY, GHW Bush).  The Teamsters agreed to court supervision in 1989 as Read More ➡

Upper NY Union Member Admits Lying in Racketeering Case

A member of Local 91 of the laborers Intl Union of N. Amer. has admitted that he lied to a federal grand jury looking into charges of extortion and racketeering in 2001, reports David Staba of the Niagara Falls Reporter.  Robert Alecks pled guilty to one count of perjury in a Buffalo federal court on Feb. 10, giving prosecutors their 5th conviction in the case, with nine members and former officers of the Niagara Falls-based union facing trial in the fall.

 

On March 6, 2001, Alecks — who is also known as Bodan Aleksiejuk and Robert Aleksiejuk, according to court records — said he didn’t know of any harassment by Local 91 members of non-union workers employed by a company called Sansla on an asbestos-abatement project at the Niagara Falls Drinking Water Treatment Plant in 1997.  Alecks also said “no” when asked if he knew of Read More ➡

Ex-NY Bus. Agent Indicted for Nepotism

A former showbiz-union boss was indicted on fraud charges on Feb. 14 for allegedly trying to sell posh real estate bought with his members’ dues to his brother and his brother’s girlfriend at sweetheart prices, reports the New York Post.  The charges against Vincent Callaghan, the booted business agent of Local 798 of the Intl. Alliance of Stage & Theatrical Employees, which represents makeup artists, comes after a series of stories in The Post exposed his alleged scams. 

 

Callaghan is alleged to have converted the union’s office building into four condos.  According to the complaint filed by Manhattan U.S. Attorney David Kelley, Callaghan sold two of the units – one for $100,000, the other for $150,000 – to a real-estate firm connected to his brother Richard’s girlfriend, Maureen McGuckin.  The sale at insider prices had not been approved by the union’s board of directors.Read More ➡

Ex-Secy.-Treasurer Admits Theft in Neb. Fed. Court

On February 3, 2005, in the United States District Court for Nebraska, Terry L. Gloe, former secretary-treasurer for Local 11, American Postal Workers Union, pled guilty to a one count information charging him with embezzling $113,377 in union funds. The guilty plea follows an investigation by the Kansas City Resident Investigator Office of the U.S. Office of Labor-Mgmt. Standards. [OLMS, 2/22/05]

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Elected DC Chief Promises Reform: Results Challenged

George Parker, newly elected president of the Washington Teachers Union, promised to shed the American Federation of Teachers affiliate's association with corruption, and to take the lead in improving D.C. schools.  But 2 losing candidates are challenging the results of the election, alleging that the AFT officials supervising the election violated their own constitution.

 

Parker, who worked in the WTU office from 1992 to 1997, said that ex-WTU chief Barbara Bullock fired him after he voiced suspicions about her handling of union money.  "I challenged her. I questioned her on why she wasn't putting allocated funds into the pension plan," Parker said. "I went to the Department of Labor, and she felt she needed to fire me."  Bullock has since pled guilty to embezzling $4.6 million from the local union until she and other top local officials were kicked out by the AFT in late 2002.Read More ➡

Extortion Charges Reinstated Against Mich. Bosses

Three federal judges unanimously reinstated criminal charges Feb. 8 against two Pontiac officials of the United Auto Workers accused of prolonging an 87-day strike at a General Motors Corp. truck plant to force the hiring of a relative and a friend.  The decision by a three-judge panel at the 6th U.S. Circ. Court of Appeals in Cincinnati reversed an October 2003 ruling by U.S. Dist. Judge Nancy Edmunds, who had tossed out the charges against the officials — intl. servicing representative Donny Douglas and retired Local 594 Chairman Jay Campbell.

 

They were indicted in September 2002 on charges of extortion, mail fraud and conspiracy to violate U.S. labor laws. A third UAW official, William Coffey, was also charged, but he died in 2003.  In her earlier ruling, Edmunds had, in essence, decided that what the UAW officials did was not criminal because all they were doing was Read More ➡