On February 27, Darin Kingrey, former financial secretary of United Steelworkers Local 706, pleaded guilty in Vermillion County, Indiana Circuit Court to two counts of theft totaling $7,464 from the Cayuga, Ind.-based union. The plea follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “Steelworkers Secretary in Indiana Pleads Guilty to Theft”
The Department of Labor’s Office of Labor-Management Standards, as NLPC readers well know, has identified and helped prosecute much union corruption over the years. But the agency’s efforts would be even better realized if it finalized a pair of dormant rules promised two years ago. The first would establish a new financial reporting form, T-1, requiring unions with at least some private-sector members to disclose financial data for pension funds and other trusts. The second would impose financial reporting upon intermediate-level unions. Each had been proposed during the first term of the Bush presidency but shelved under President Obama. Contrary to frequent assertions from labor leaders, these regulations would not be burdensome. But they are likely to make unions more responsive to dues-paying members.
The Office of Labor-Management Standards (OLMS) is a creation of the Labor Management Reporting and Disclosure Act, also known as the Landrum-Griffin Act, enacted … Read More ➡ “Will Trump Labor Department Follow Through on Preventing Union Corruption?”
Could the fall of Michael Avenatti be at hand? For those who have been in the crosshairs of this manic, headline-addicted lawyer, it would be a welcome moment. Early yesterday afternoon, Avenatti, best-known for having represented Stormy Daniels in her civil lawsuits against President Donald Trump and Trump’s ex-personal attorney, Michael Cohen, was charged in Manhattan and Los Angeles federal courts with crimes that could land him up to 97 years in prison. In Manhattan, where he was arrested, Avenatti allegedly had tried to extort over $20 million from Nike Inc. in return for a promise not to savage the company’s reputation. In Los Angeles, he faces separate fraud charges of diverting funds from a client settlement to his personal use and of grossly overstating his income to obtain a bank loan. He is now free on $300,000 bond with travel restrictions.
National Legal and Policy Center several … Read More ➡ “Michael Avenatti Charged with Extortion and Fraud in Separate Cases”
Sometimes union corruption cases merge in unexpected ways. That was the case in the sentencings of Salvatore Armao and Karen Auer, respectively, the managing partner and principal officer of a Long Island accounting firm. On February 26, Armao was sentenced in U.S. District Court for the Southern District of New York to two years of supervised release, including six months of home confinement, to making false statements related to aiding and abetting embezzlement by a union president. He also was ordered to pay $9,592 in restitution, $18,700 in asset forfeiture and a $3,000 fine. A little over a week later, on March 8, Auer was sentenced to one year of supervised release and ordered to pay $7,194 in restitution. Each had pleaded guilty last August following a joint probe by the FBI and the U.S. Department of Labor.
Salvatore Armao, founder and managing partner of the Garden City (Long Island), … Read More ➡ “Long Island Accounting Executives Sentenced for Records Fraud”
There is something weirdly fitting about a labor official named Slaughter who represents slaughterhouse workers. But whether fate or coincidence, it is no longer. On February 25, Terry Slaughter, former secretary-treasurer of United Food and Commercial Workers Local 1208, pleaded guilty in U.S. District Court for the Eastern District of North Carolina to embezzling $62,315.38 from the union, which represents employees of the sprawling Smithfield Foods pork processing plant in Tar Heel, N.C., about an hour and a half’s drive south of Raleigh. Slaughter had been charged in early January following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards. Evidence indicates that a far larger sum of missing funds is attributable to a former president.
United Food and Commercial Workers Local 1208 was born of trauma, in this case one of the most bitter labor disputes in recent U.S. history. The union in the early-90s launched a … Read More ➡ “UFCW Secretary-Treasurer in North Carolina Pleads Guilty to Embezzlement”
Mervin Hawk was an unlucky gambler. That’s why his time behind bars is a sure thing. On March 7, Hawk, former president of American Federation of State, County and Municipal Employees Local 1640, was sentenced in U.S. District Court for the Eastern District of Michigan to 30 months in prison, to be followed by three years of supervised release, for embezzling more than $330,000 in funds from the Detroit union over a more than two-year period. Hawk had pleaded guilty last November after being charged in a one-count information last April with stealing over $600,000. He also was ordered to make restitution in the amount of $362,623. The actions follow a joint investigation by the FBI and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
According to court records, Hawk, now 59, a resident of Southfield, Mich., used his position to make frequent withdrawals from … Read More ➡ “Detroit AFSCME President Sentenced for Embezzlement”
John Matassa Jr.’s biggest mistake was trying to qualify for an early retirement. He now is qualified for incarceration. On February 26, Matassa, secretary-treasurer of Independent Union of Amalgamated Workers Local 711, pleaded guilty in U.S. District Court for the Northern District of Illinois to one count of embezzling $738 in union funds, far below what he actually had stolen from the union and the government. He had been indicted in May 2017 on 10 counts related to his creating a no-show union job for his wife and collecting Social Security benefits for himself. Matassa for decades has been a reputed “made man” in the Chicago mob. The plea deal calls for 15 to 21 months in prison, plus $66,500 in restitution. The actions follow a probe by the Social Security Administration and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
John “Pudgy” Matassa Jr., now … Read More ➡ “Mob-Connected Chicago Union Boss Pleads Guilty to Embezzlement”
On February 25, Anthony Edmunds, former president of United Auto Workers Local 2419, was sentenced in U.S. District Court for the Central District of Illinois to three years of probation and one year of home confinement for embezzling $19,482 in funds from the Danville, Ill. union. He also was ordered to pay full restitution and a $100 assessment. Edmunds had pleaded guilty last October after being indicted in December 2017. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “UAW Local President in Illinois Sentenced for Embezzlement”
John Ulrich may have seen the arrangement as a business deal, but federal prosecutors see it as a crime. On February 21, Ulrich, formerly vice president of International Brotherhood of Teamsters Local 812, was indicted in Manhattan federal court with soliciting and receiving tens of thousands of dollars in bribes from an unnamed administrator for the health plan of the Great Neck (Long Island), N.Y.-based union in return for retaining that company as a client. Ulrich, who was a plan trustee as well as a union officer, had been arrested earlier that day. He pleaded not guilty, and was released on $100,000 bond. The indictment follows a joint probe by the FBI and the Labor Department’s Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration.
Teamsters Local 812 represents about 3,000 soft drink and brewery workers in the New York City metropolitan area. John Ulrich, now … Read More ➡ “Ex-New York Teamster Official Charged with Taking Bribes from Benefit Administrator”
On February 20, David Dauman, former president of American Federation of Government Employees Local 3495, was charged in Adams County, Wisconsin Circuit Court with one count of stealing $3,597 from the Oxford, Wisc.-based union. The charge follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “Former AFGE President in Wisconsin Charged with Theft”