Top Ten Union Corruption Stories of the Year

The year 2018 saw the indictment, conviction and sentences of plenty of organized labor scams. New York City played host to some of the largest. For sheer magnitude, nothing anywhere could match the network of union fraud surrounding the construction of Hudson Yards, a large-scale, mixed-use development on Manhattan’s West Side. Set for completion in 2024, the project from the start has been a source of easy money for labor organizations affiliated with the Building and Construction Trades Council of Greater New York. The general contractor, Related Companies, having reached the limits of frustration, filed suit last March with the State Supreme Court against the council and its president for promoting or allowing illegal practices that allegedly have added over $100 million to the total project cost.

In other cases from the Big Apple, the president of a United Industrial and Service Employees local, Rocco Fazzolari, pleaded guilty … Read More ➡

Iowa Local Insulators Business Manager Indicted

On December 19, Ted Watson, former business manager for International Association of Heat & Frost Insulators and Allied Workers Local 74, was indicted in U.S. District Court for the Southern District of Iowa for embezzlement, mail fraud and making false statements against the Des Moines-based union. The indictment follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

New Jersey Executive Pleads Guilty to UAW Benefit Fraud

First, the union leader pleaded guilty. Then, it was his business partner’s turn. On December 14, Lawrence Ackerman, head of a pair of shell insurance brokerages, pleaded guilty in U.S. District Court for the District of New Jersey to a superseding information for health care fraud, part of a long-running scheme that fleeced a United Auto Workers benefit plan and a Blue Cross Blue Shield affiliate out of a combined $6.6 million. He had been indicted in January 2017. Sergio Acosta, former president of United Auto Workers Local 2326, pleaded guilty to his role in the scam last April. The actions follow a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration.

Union Corruption Update has covered this case twice before (here and here). Lawrence Ackerman, now 54, a resident of Old Tappan (Bergen County), N.J., was … Read More ➡

Local Carpenters Financial Secretary in Kentucky Indicted

On December 17, Robin Ray Bishop, former financial secretary of United Brotherhood of Carpenters and Joiners Local 2501, was indicted in the Jefferson County Circuit Court for the Commonwealth of Kentucky on one count of theft by deception in a sum of over $500, nine counts of criminal possession of a forged instrument, and one count of falsifying business records. The indictment follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

IATSE President in Virginia Pleads Guilty to Fraud and Embezzlement

On December 19, Benjamin Wisecarver, former president of International Alliance of Theatrical Stage Employees Local 264, pleaded guilty in U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit wire fraud and embezzlement in the amount of $57,310 from the Hampton union. He had been indicted on multiple counts in October. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

 … Read More ➡

SPFPA President in Maryland Sentenced for Thefts

On December 7, Keith Franzese, former president of Security, Police and Fire Professionals of America Local 275, was sentenced in Circuit Court for Prince George’s County, Md. to 10 years in prison (suspended), 90 days of home detention and five years of probation for various acts of theft from the Greenbelt-based union. He also was ordered to pay $67,624 in restitution. Franzese, who entered an Alford plea last June, had been indicted in November 2017 on 15 counts of various acts of theft, embezzlement and fraud totaling well over $200,000. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

How Long Can Democrats Make Excuses for Extremists Like Rep. Rashida Tlaib?

Rashida Tlaib isn’t a typical House of Representatives freshman. That may be why so many of her party colleagues are giving her only tacit approval in the wake of her video broadside last Thursday against President Donald Trump. Rep. Tlaib, D-Mich., a Muslim born of Palestinian immigrant parents, having taken an oath of office only hours earlier, called for Trump’s impeachment in highly vulgar and inflammatory language. Party elders, including House Speaker Nancy Pelosi, offered a rebuke to her statement. But their words seemed more motivated by strategy than by principle. And a likely major explanation for this tacit approval is that Democrats are giving a free pass to Muslims in their nonstop celebration of “diversity.” It’s an attitude that endangers national security as well as coarsens debate.

The 2018 House elections were a windfall for the Democratic Party. Exploiting resentment of President Trump and Republicans generally, the party generated … Read More ➡

Police Union Treasurer in Rhode Island Sentenced for Fraud

Adam Conheeny is following in the footsteps of Christopher Hayes. And the path isn’t an enviable one. On December 20, Conheeny, ex-treasurer of Fraternal Order of Police Lodge 8, was sentenced in U.S. District Court for the District of Rhode Island to three months in prison, to be followed by two years of supervised release, for wire fraud in the sum of $31,413 against the Newport, R.I.-based union over a five-year period. He had pleaded guilty in May following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General, and the Rhode Island State Police. He has paid back the union in full. The case grew out of an investigation of former lodge President Christopher Hayes, who was sentenced in July 2017 for ripping off the union by more than $70,000.

According to prosecutors, Conheeny, 46, a resident of Portsmouth, R.I., and an officer … Read More ➡

Los Angeles Teacher Sues Union, School District Over Forced Representation

The union calls them “service fees.” In practice, they amount to dues. And public school teachers are among those who believe that it is a distinction without a difference. On November 13, Thomas Few, a special education teacher in Los Angeles, filed suit in U.S. District Court for the Central District of California against the United Teachers of Los Angeles and the Los Angeles Unified School District challenging their tandem practice of deducting a large fee from salaries of teachers who remain employed but leave the union. In the wake of the U.S. Supreme Court ruling in Janus v. AFSCME Council 31, Few had informed the union of his intent to resign, but was told that he would have to pay an annual “service fee” equivalent to monthly dues. The union, an affiliate of the state chapters of both the American Federation of Teachers and the National Education Association, … Read More ➡

Tucker Carlson Shows Corporate America How to Stand Up to Activists

There are few sights these days as pitiable as a corporation acceding to the demands of radical activists on the basis of an ostensibly insensitive comment made by one of its officials or employees. As the script normally dictates, the offending individual steps down, while the company profusely apologizes for its insensitivity and vows to redouble its commitment to “diversity.” That’s what makes Fox News Channel’s refusal to fire political talk show host Tucker Carlson in the face of an activist-triggered advertiser boycott so refreshing. By resisting the speech police, the network just might have set an example for other corporations.

Tucker Carlson, now 49, host of Fox News Channel’s Tucker Carlson Tonight, isn’t one to back down from a controversial issue. Indeed, not backing down is pretty much his main job requirement. His blunt style won him the 8 P.M.-9 P.M., Monday through Friday time slot on Fox … Read More ➡