On June 12, Chad Waldoch, former secretary-treasurer of Sheet Metal, Air, Rail and Transportation Workers (SMART) Local 980, pleaded guilty in U.S. District Court for the District of North Dakota to embezzling $107,706 in funds from the Fargo union during January 2012-October 2017. He had been indicted in January following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Brian Arnold had full control over his union’s finances – too much control. On June 9, Arnold, former financial secretary for United Steelworkers Local 104M, pleaded guilty in U.S. District Court for the Western District of New York to embezzling more than $33,000 in funds from the Elmira-based union. The local represents about 75 workers at Anchor Glass Container Corporation. Arnold had been charged last October on one count each of embezzlement and concealment following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.
According to prosecutors, Arnold, now 49, a resident of Pine City, N.Y., during the period April 2016-August 2018 stole $33,224.15 in union funds in a variety of ways. For one thing, he made unauthorized purchases with his union debit card. He also made unauthorized ATM withdrawals, and wrote unauthorized checks to himself, from the union checking account. To conceal the thefts, he allegedly falsified … Read More ➡
Erica Carey ran a pharmacy that served members of the International Longshore and Warehouse Union. Their health may be poorer for it. On October 30, 2019, Carey, owner of a Long Beach, Calif. pharmacy, was sentenced in Los Angeles federal court to three years of probation and ordered to pay more than $366,000 in restitution for defrauding the ILWU-Pacific Maritime Association (PMA) health plan. The main organizers of this $3 million-plus scam, brothers Berry and Dalibor Kabov, each had been sentenced that March to 121 months in prison for illegal sale of opioids and importation of controlled steroids, and failure to report about $1.5 million to the IRS. The actions follow a probe by the Drug Enforcement Agency, the IRS, the U.S. Postal Inspection Service, the U.S. Labor Department, and state and local authorities.
On June 2, Eric Childress, former secretary-treasurer of Communications Workers of America Local 2276, was sentenced in U.S. District Court for the Southern District of West Virginia to five years of probation, and ordered to pay $30,611 in restitution and a $25 special assessment, for making a false entry in the financial records of the Bluefield, W.Va.-based union to conceal his embezzlement of funds. He had pleaded guilty last December to concealment after being indicted in September for embezzling $2,619. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On June 2, Jessica Pangburn, former office secretary for International Union of Operating Engineers Local 953, was sentenced in U.S. District Court for the District of New Mexico to one day in jail (time served), two years of supervised release and 25 hours of community service for wire fraud against the Albuquerque-based union. She also was ordered to pay restitution in the amount of $69,469. Pangburn had pleaded guilty last November. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On November 14, 2019, William Drath, former treasurer of International Association of Fire Fighters Local 487, was sentenced in Eau Claire (Wisconsin) County Court to three years of probation and 480 hours of community service for embezzling more than $18,000 from the Eau Claire union over a six-year period. He had pleaded guilty that August following a complaint filed by his successor with local police. Drath had retired from the Eau Claire fire department shortly after the discovery of the thefts.… Read More ➡
The Gary Jones era at the United Auto Workers was brief. But if Jones wants a brief prison sentence, he’ll be at the mercy of prosecutors. Two days ago, June 3, Jones, UAW president until last November, pleaded guilty in U.S. District Court for the Eastern District of Michigan to embezzlement, racketeering and tax fraud related to his role in the diversion of between $1 million and $1.5 million in union funds toward personal luxuries such as vacations, golf outings and cigars, and their coverup. He is set for sentencing on October 6. Thus far, more than a dozen union and auto industry officials have been convicted following an ongoing probe by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General. A federal takeover of the 400,000-member UAW remains a possibility.
Union Corruption Update has been following this phase of the probe … Read More ➡
On May 4, Shannon Pemberton, former treasurer for International Union of Painters and Allied Trades Local 238, was sentenced in U.S. District Court for the Eastern District of Kentucky to three years of probation for embezzling $6,403 in funds from the Cincinnati-based union. He also was ordered to pay $958 in restitution and a $100 special assessment, having previously paid $5,444 in restitution. Pemberton had pleaded guilty this January after being indicted in October. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Mark Janus is seeking to complete his mission. And the U.S. Supreme Court soon will let him and other dissenting public-sector union members know where they stand. Two weeks from now, on June 18, the High Court will decide whether to grant legal standing to a petition by Janus, a former Illinois state employee, to recover dues payments dating back several years collected by an affiliate of the American Federation of State, County and Municipal Employees (AFSCME). Two years earlier the Court concluded that a government employee union cannot deduct partial dues (“agency fees”) from a nonmember paycheck without the affirmative consent of the employee. A grant of certiorari could open the door to similar nonmember actions, including a class action suit in Minnesota seeking a $19 million refund on behalf of about 8,000 employees.
On May 22, Linda Woodford, former president of American Federation of State, County and Municipal Employees Local 727D, pleaded guilty in Dunn County (Wisconsin) Circuit Court to one count of misdemeanor theft from the Menomonie-based union. She then was sentenced to five days in jail, one year of probation, and 50 hours of community service, and ordered to pay $453 in court costs. She previously had paid full restitution in the amount of $4,065. Woodford had been charged last June following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡