The trial of three persons connected with the massive embezzlement and money-laundering scandal at the Washington Teachers Union (WTU), an affiliate of the American Federation of Teachers, resumed after the holiday weekend, with some key testimony for the prosecution from shady characters. Given that high-living ex-president Barbara Bullock and several other defendants already have pleaded guilty, it’s a stretch to figure out why the remaining three defendants – office manager Gwendolyn Hemphill, financial manager James Baxter II, and outside accountant James Goosby – haven’t copped a plea as well. Bullock currently is serving a nine-year prison sentence.
The first to take the witness stand, on July 5, was one Errol Alderman, a close friend of Michael Martin and the son-in-law of Hemphill. Alderman, 30, established a shell company, Expressions Unlimited, on behalf of Martin. He defended his action as a favor to Martin, 45, to avoid the appearance of a … Read More ➡
For a half-decade, father and son discovered how profitable stealing from a garment workers union could be. Joseph Nardone Sr., 80, is the founder and (retired) president of International Novelty and Production Workers Local 148 in Jersey City, N.J., while his son, Joseph Jr., 51, had been president and administrator of the local’s welfare fund. The pair had been convicted last November in federal court on conspiracy and embezzlement charges. At their sentencing hearing of July 8 they found out their ways will carry a high price tag.
The Nardones were indicted in October 2002 for conspiracy to embezzle more than $350,000 from a union welfare fund in order to cover a scheme to inflate contractor project costs in the building the local occupies. The developer with whom they conspired, Stanley Rothman, already has pleaded guilty. The Nardones were convicted last November following a six-week trial; various other Local 148 … Read More ➡
A sweetheart land deal continues to produce heartaches for those involved. On June 30 the U.S. Department of Labor (DOL) sued six persons involved with a decision by the Northwest Indiana Regional Council of Carpenters Trust Fund to invest $10 million in a major real estate development near Chesterton, Ind. Back in 1998 the pension board had voted to approve the purchase, at an inflated price, of a 55-acre tract of land in the 640-acre Coffee Creek planned community in Chesterton, Ind. Now the Labor Department wants Gerry Nannenga and other trustees refund all losses incurred in the deal. The suit also names former Indiana Democratic Chairman Peter Manous, Kevin Pastrick and C. Paul Ihle as defendants. They, along with Nannenga, were convicted last year on federal corruption charges. Nannenga had taken a $45,000 bribe from Pastrick and Manous to vote for the purchase.… Read More ➡
Corruption at Local 990 at the United Food and Commercial Workers was a family affair. Last year Barbara Ann Hayes, a bookkeeper for the Greeley, Colo. meatpackers union, pleaded guilty to embezzlement. This past June 20 her brother, Stephen Bush, a former local vice-president, was indicted by a federal grand jury in Denver on 51 counts of embezzling more than $22,000. Their father, ex-local president Ronald Bush, is now the latest casualty.
In a complaint dated June 29, federal prosecutors accused the elder Bush of diverting about $8,000 in union funds toward his own personal use, much of it related to trips to Las Vegas. Bush waived his right to be charged by a federal grand jury, and was released on bond. Local 990 no longer exists, having been disbanded by the national union. Former rank-and-file members now belong to UFCW Local 7, which covers workers at the Swift packing … Read More ➡
The U.S. Department of Labor on June 29 filed a complaint against a pair of firms based in the south suburban Chicago community of Crete, Ill., alleging they had improperly charged fees to the pension and welfare plans of six union locals. Joseph/Anthony & Associates Inc., a plan administrator, and its president Michael Linder, were named in the suit. Also charged were Liz/Mar and Associates Inc. and its president, Elizabeth Linder, who also is Michael Linder’s wife. The government is seeking restitution of an unspecified amount.
This isn’t the first time that the male half of this aspiring power couple has been in trouble. In January 2004 Mr. Linder was indicted by a federal grand jury in Rockford, Ill. for mismanaging the pension plans of two Ironworkers Union locals. (Daily Southtown, 7/7).
Pittsburgh Ex-Secretary Sentenced for Embezzlement
Sonya … Read More ➡
Barbara Bullock, president of the Washington Teachers Union (WTU) from 1994 to 2002, had very expensive tastes. When it came to silverware, crystal, custom-tailored clothes and other personal items, only the best would do. The problem is that she siphoned off union funds in order to pay for them, using the local’s American Express card to make $1.2 million in illegal purchases. In all, she and top aides ripped off about $5 million in funds until their national affiliate, the American Federation of Teachers (AFT), removed them from office; FBI raids soon would follow. Bullock pleaded guilty to embezzlement in October 2003, and the following January received a nine-year prison sentence.
Though several other conspirators also had pleaded guilty to participating in the scam, three of her partners in crime insisted on fighting charges. Bullock, a cooperating witness, now has come back to haunt … Read More ➡
Another domino has fallen in the strange, violent saga of Laborers Local 91. For years the local dictated the terms of hiring at construction sites in Niagara County, N.Y. Their targets were nonunion workers and any contractor foolish enough to hire them. Their preferred methods of enforcement were vandalism, assault and extortion. In a predawn raid in 2002 federal agents arrested more than a dozen union members. In recent weeks, two of them, Anthony Cerrone and Andrew Shomers, pleaded guilty to racketeering.
Reading the tea leaves, Salvatore Bertino has become the next to go down. The 53-year-old former local vice president pleaded guilty on Tuesday, June 21 to racketeering conspiracy. At his hearing, Bertino cited five incidents in which Local 91 President Mark Congi directed him and others to engage in extortion. Seven other union officials, including Congi, are set … Read More ➡
Working in a slaughterhouse was never for the weak of heart. It’s understandable that people who make a living that way would want to indulge in a few luxuries once in a while. But Stephen Bush, 43, former vice-president of United Food and Commercial Workers Local 990, believed that luxuries could be paid for out of the pockets of unsuspecting dues-paying members. Now his career as an embezzler is as defunct as the local itself. Bush was indicted on June 20 by a federal grand jury in Denver on 51 counts of embezzlement following a Department of Labor probe.
Labor Department officials for years had been investigating financial irregularities at the local, which at one point represented some 2,800 meat-processing plant workers in Greeley, Colo. Certain plant employees contacted the department to initiate an investigation. As it turned out, Bush likely used his union credit card to buy $22,514 … Read More ➡
They still call Joseph Massino “the Last Don.” But the 62-year-old boss of New York’s Bonanno crime family doesn’t have much of an organization to run anymore. Even Casablanca, the three-star restaurant in Queens that he co-owns, is now part of his past. On Thursday, June 23 a federal judge in Brooklyn, N.Y. made certain of that.
“As boss of the Bonanno family, I gave the order,” said Massino. He was referring to his order to murder Gerlando Sciacia, a family captain whose body later was found in the Bronx. Massino was convicted for that crime, and for racketeering, last year. He was ordered to pay $10.3 million to the government as proceeds, a figure reduced to $9 million at the June hearing. U.S. District Judge Nicholas G. Garaufis handed down two consecutive life sentences. This past January … Read More ➡
United Brotherhood of Carpenters and Joiners Local 1005 has a major problem on its hands: The person who runs it is under indictment. Paul Hernandez, president of the Hobart, Ind.-based local, with more than 1,100 members, was charged in federal court in May with 21 counts of theft and wire fraud. Also indicted was Kenneth Castaldi, of Elkton, Wisc., who ran the local’s apprenticeship program. At issue was the pair’s handling of an Indiana Department of Commerce training grant.
A three-member panel of the international union is set to hold a hearing on July 6 to give rank-and-file members the opportunity to voice their concerns. “We’ve been receiving complaints about (Local) 1005 from members for a long time, and they increased after Paul Hernandez was indicted,” said Tony Mroczkiewicz, the union’s Midwest District representative. Hernandez had taken over the local after Gerry Nannenga was elevated to secretary-treasurer of the Indiana-Kentucky … Read More ➡