On July 15, 2002, in the United States District Court for the Eastern District of Michigan, Lori Delaney, former bookkeeper for Sheet Metal Workers Local 80 in Southfield, pled guilty to embezzling approximately $18,000 in union funds. The charges had been brought on February 6, 2002, following a joint investigation by the Detroit Office of the U.S. Labor Dept. Office of Labor-Mgmt. Standards and the Department of Labor’s Office of the Inspector General. [DOL]
Ex-Official Admits $10K Embezzlement in Fresno, Calif.
Jeremias Lopez pled guilty on July 10 to embezzling about $10,800 from Laborers Intl. Union Local 220. She faces a maximum sentence of one year in prison and a $10,000 fine in the U.S. Dist. Ct. in Fresno. Lopez is also barred from employment or service with a union for 13 years.
Lopez was both Business Manager and Secy.-Treasurer of Local 220 from May 1996 to December 1997. … Read More ➡
Responding to federal labor charges filed by attorneys with the National Right to Work Legal Defense Foundation, the National Labor Relations Board (NLRB) has issued a complaint to force Teamsters Local 449 to refund dues illegally collected from employees of Laidlaw Transit Services after they were expelled from union membership for voicing opposition to the union.
The case arose when four workers, Alfonso Ditillio, June Reinard, Jill Galluzzo, and Tim Stalker, filed unfair labor practice charges with the NLRB in April 2002. In October 2001, the employees exercised their right to resign from formal union membership and to pay a reduced fee to cover only the costs of collective bargaining. However, Teamsters officials illegally refused to accept their resignations and continued charging them full union dues.
In December 2001, Teamsters officials further harassed the workers by expelling them from the union for participating in a decertification election to remove the … Read More ➡
Newly released documents reveal the looting of disaster relief funds in Radford as the tip of an iceberg engulfing the hierarchy of Local 9336 that stretched back six years and nearly swallowed up the union’s funds. And while four of the embezzlers have admitted their guilt in fed. court, a fifth official is a fugitive from the law.
The four who pled guilty on July 12 in Roanoke were: Edward Ramsey, President from 1996-2000: William Fricker, Grievance Cmte. Chair from ‘97-2000, when he became President: Joseph Burress, Financial Secy. from ‘98-2000: and Rhonda Creed, Vice-President from ‘97-2000. The fifth official charged, Elizabeth George, was Fricker’s campaign manager in 2000, and was appointed Recording Secy. by Fricker when he won. She also joined the relief fund formed in response to an explosion at the Intermet New River Foundry on March 5, 2000. George did not appear in court, and is considered … Read More ➡
On July 3, 2002, in the Superior Court of the State of Arizona, Maricopa County, Mary Katherine Johnson, former treasurer of American Federation of Government Employees Local 2552, was sentenced to incarceration for four months followed by five years probation and was ordered to make full restitution to the union of $28,853.69. She had pled guilty on June 3, 2002, to attempted theft following an investigation by the OLMS Los Angeles District Office. [DOL]… Read More ➡
Elected leaders of Teamsters Local 2000 sued Intl. Bhd. of Teamsters President James P. Hoffa in a Detroit fed. court July 25, contending Hoffa illegally removed them from office.
On July 1, Hoffa ousted the officers of the Local that represents more than 11,500 Northwest flight attendants after they refused to fight an organizing effort by some attendants trying to form an independent union. The suit calls for reinstatement of the elected leaders and withdrawal of the trusteeship that Hoffa also imposed on the 1st.
Ousted president Danny Campbell said that he and other officers filed suit because they believe Hoffa violated the Labor-Management Reporting and Disclosure Act, and violated Campbell’s free-speech rights with the removal. “Essentially that law was designed to provide a more democratic infrastructure in local unions,” Campbell said. He argued that top Teamsters officials “removed us from office for political reasons, rather than what they cited … Read More ➡
United States Attorney John K.Vincent announced on July 19 that Mary Dolores Anderson pled guilty to embezzling nearly $90,000 as a union officer from 1993 to 1999. Anderson faces a sentence of up to five years imprisonment and up to a $10,000 fine. Her sentencing is scheduled for October 4, 2002 before U.S.District Court Judge Garland E. Burrell,Jr. (E.D. Calif., G.H.W. Bush)
According to Asst. U.S.Attorney Christopher P. Sonderby, who is prosecuting the case, Anderson served from 1993 to 1999 as the Secretary-Treasurer of the Communication Workers of America Local 9417, a Stockton union made up of about 700 Pacific Bell employees in San Joaquin County. In FY 2000, the Local had $189,307 in receipts, 94% of which came in the form of members’ dues, acc. to the union’s LM-3 financial disclosure form filed with the U.S. Labor Dept.
Anderson admitted that she got other union officers to sign blank … Read More ➡
“We witness the sorry spectacle of Gary Winnick, the CEO of Global Crossing, selling off $734 million in stock while urging his employees to buy more, and then using the money to purchase a $92 million dollar mansion in Bel Air.”
Uh, would this be the same Global Crossing that received millions in investment dollars from ULLICO, a union pension fund-owned insurance company with a board that included John Sweeney and numerous other union officials? A federal grand jury and the U.S. Dept. of Labor are now investigating insider stock trades that apparently enriched ULLICO board members at the expense of rank-and-file union members. While Sweeney claims not to have participated in the stock deals, he sat on the ULLICO board while others did.
“[W]e insist that the Securities and Exchange Commission and all three stock exchanges agree to a single higher standard for publicly-traded corporations. That standard must…prohibit … Read More ➡
Pointing, on the floor of the U.S. Senate, to a stack of union corruption reports compiled by NLPC, Sen. Mitch McConnell (R-Ky) argued on July 10 that legislation on corporate accountability should also include unions.
McConnell spoke in support of his amendment to the Public Company Accounting Reform and Investor Protection Act, which would require unions with an annual income over $200,000 to use the same strict standards for their annual financial reports filed with the U.S. Dept. of Labor (DOL) as public corporations, and that they submit their reports to audits by a certified public accountants.
Pointing to the “stack” of NLPC’s union corruption reports just for 2002, McConnell recounted 17 of those crimes, then revealed that the DOL’s Office of Labor-Management Standards reported an average of 12 indictments and 11 convictions of union fraud per month over the last four years. “We have a choice,” McConnell concluded: “We … Read More ➡
Frmr Secy.-Treas. David Dobry pled guilty on July 2 to embezzling $61,510 from Lodge 177 of the Intl. Bhd. of Boilermakers in Green Bay, Wisc. Dobry’s plea came in the U.S. Dist. Ct., E.D. Wisc., before Chief Dist. Judge J.P. Stadtmueller (Reagan). The Secy.-Treasurer of Lodge 177 from 1987-99 was indicted on Feb. 2 for the embezzlement, and for falsifying the union’s LM-3 financial disclosure form filed with the U.S. Dept. of Labor. According to the prosecutor, Asst. U.S. Attny Erica O’Neil, that charge will be dropped at Dobry’s sentencing.
Dobry began his embezzlement in 1994 to pay for his heavy alcohol and cocaine usage. He wrote checks from the union’s account to himself, sometimes without a second signature as required, other times using the signature stamp of the frmr Lodge President, Delbert Watzka. [U.S.A.O. E.D. WI, DOL]… Read More ➡
On June 17, Roberta Cabral pled guilty in a Honolulu federal court to defrauding a non-profit organization established to benefit members of HERE Local 5 and the Intl Bhd. of Teamsters.
First, Cabral admitted to not filing tax returns for $50,000 in commissions she received in 1994 for her role in a $10 million investment made by the union non-profit, Unity House, Inc. She laundered the commissions through a British Virgin Islands corporation she controlled and used for the concealment of her income.
Second, she admitted to participating in a scheme to defraud Unity House with her now deceased co-defendant Roderick Rodriquez. According to the plea agreement, Cabral and Rodriquez a conspired to “pad” the budget of a one-hour television project funded by Unity House entitled “Heavenly Road”, later known as “Blue Hawaii”, for which she was to receive a kickback of $150,000. Cabral also pled guilty to two more … Read More ➡