Ex-Treasurer Must Pay Back $28K to AZ Govt. Union

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]

Indiana Official Admits to Forgery
On June 25, 2002, in Marion County (Indiana) court, Mack Dykes, former president of American Federation of Government Employees Local 1411, pled guilty to two counts of forgery in the amount of $7,100. He had been indicted on March 21, 2002, following an investigation by the OLMS Cincinnati District Office. [DOL]

NJ AFGE Boss Indicted for Embezzlement
On June 20, 2002, in the United States District Court for the District of … Read More ➡

NY Officials Forced to Refund Illegal Dues after Violating Federal Settlement

Responding to charges filed by attorneys with the National Right to Work Legal Defense Foundation, the National Labor Relations Board (NLRB) has forced Local 200 of the Service Employees Intl Union to refund illegally seized union dues from employees of the Marsellus Casket Company.

This is the second time the NLRB has issued a formal complaint against SEIU Local 200 in the past year. Under the NLRB’s original settlement, issued in November, SEIU officials were ordered to refund the employees’ dues and fees that were used for non-representational purposes.  Union officials disregarded the agreement and continued illegally seizing workers’ dues to pay for union politics. As part of the second settlement, the NLRB has also mandated the union must post a notice alerting workers and employees of the Marsellus Casket Company of their right to refrain from formal union membership and the payment of full union dues.

The settlement also … Read More ➡

No. Ill. Boss Confesses to Stealing $362K from Union He Founded

Charles C. Isely, III, ex-president and treasurer of the Int’l Employees Welfare Union (IEWU) pled guilty on July 10 to embezzlement and mail fraud. He embezzled $362,000 from the Waukegan, Ill.-based union, which he founded and ran from 1974 to 1998. He wrote 30 fraudulent checks totaling $225,000 from IEWU’s death trust fund, and 40 checks for $108,000 on IEWU’s bank accounts. Isely used the union’s funds for personal expenses. Further, Isely allegedly obtained a $20,000 bank loan under the union’s name and reportedly deposited it in his personal bank account.  Isely committed the crimes between 1994 and 1997.

Isely could be sentenced to more than two years in prison on October 2, according to Asst. U.S. Attny Carolyn McNiven. [Chi. Trib. 7/11/02]… Read More ➡

Union Embezzler Complains About Losing “Accustomed Lifestyle”

“At some time during the conspiracy, the defendant, Anna May Ervolino, stated to a person known to the Grand Jury that she hoped certain persons ‘did not expect them [the defendants] to give up the lifestyle to which they were accustomed.'”
–Denise E. O’Donnell, U.S. Attny, W.D.N.Y., May 16, 2000
 
Ervolino’s statement came as investigators zeroed in on her and her late husband, Frank, for bankrupting the Hospital & Nursing Home Council’s pension fund by using their executive positions on the HNHC to embezzle hundreds of thousands of dollars.… Read More ➡

Buffalo Boss Makes Restitution to Pension Fund She Helped Clean Out

On June 21, Mrs. Ervolino was sentenced to a $5,000 fine on top of the $144,470 she had already paid back to the Hospital  & Nursing Home Council (HNHC) in Buffalo, NY.  She was also sentenced to one year probation and 150 hours of community service [U.S.D.C., W.D.N.Y.], and she agreed to a 13-year bar on employment by a union or union pension fund.  In exchange for her March 22 guilty plea and restitution, the U.S. Attny agreed to drop all remaining charges.  She specifically pled guilty to embezzling $1,513 from the HNHC to pay her husband’s life insurance premium.

The HNHC, now defunct thanks to the Ervolinos, was chartered by Local 4 of the Hotel Employees & Restaurant Employees union (HERE), Local 168-39 of the Laundry & Dry Cleaning Union, and the Service Employees Intl. Union (SEIU).  Using the executive positions they held in HERE, the Laundry Union and … Read More ➡

Ex Puerto Rican Adminr. Arraigned for Embezzling Funds from Govt Union

Abdiel Navarro, frmr administrator of the Union General de Trabajadores (UGT), was arrested, arraigned and pled not guilty on July 1 to eight counts of embezzlement and falsifying records. His bond was set at $50,000 in the U.S. Dist. Ct. for Puerto Rico. He was indicted on June 26 after an investigation by the Atlanta office of the U.S. Dept. of Labor’s Office of Labor-Mgmt. Standards.

Navarro worked for UGT from April 1994 to December 1999, first as Ofc. Administrator, then as Union Administrator. During that time, according to the indictment, Navarro stole $35,700 from the UGT’s Benefit Plan, General Fund and credit cards. His alleged embezzlement took the following forms: $2,520 in unentitled vacation days from the Benefit Plan, $6,815 from the Benefit Plan in claimed withholdings from his paychecks that were not actually deducted, $11,221 in cashed checks from the Benefit Plan, $7,207 in fraudulent reimbursements from the … Read More ➡

Hawaii Businesswoman Pleads Guilty to Embezzling Union Member Benefits

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 ➡

Ex-Green Bay Boilermaker Boss Confesses to $61K Embezzlement

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 ➡

Sen. McConnell Cites NLPC in Demanding Corporate and Union Accountability

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 ➡

Unions Appeal OK Right to Work Ruling

Union lawyers have filed an appeal at the U.S. Court of Appeals for the Tenth Circuit to overturn Oklahoma’s new Right to Work Law, a measure making union membership voluntary while creating new jobs.  “The decision to file an appeal is another slap in the face to the voters of Oklahoma who rejected the unions’ cynical campaign of misinformation last fall,” said Stefan Gleason, Vice President of the National Right to Work Foundation, whose legal-aid attorneys will be representing employees defending the Right to Work law at the appellate court.

According to the Bureau of Labor Statistics of the U.S. Department of Labor, Oklahoma has led the nation in the creation of jobs since the passage of Right to Work last September.

“The workers of Oklahoma are already seeing the benefits of living in a Right to Work state,” said Gleason.”When will union officials end their hostility toward employee freedom … Read More ➡