Matthew Guglielmetti’s career as a made man is over. But that doesn’t mean he’ll be cooperating with authorities to end other careers in the New England criminal underworld. That’s what his attorney, at least, is counting on. On May 13, Guglielmetti, standing before U.S. District Judge Ernest Torres, pleaded guilty to attempted cocaine-trafficking charges. His arrest back in January was a classic sting of a union whose top leadership long had worked with organized crime figures. Back in 1995 LIUNA, well documented to be in cahoots with mobsters, had averted a federal RICO suit by agreeing to a supervised internal cleanup.
Providence, in particular, was of interest to the Justice Department. The city and surrounding area was the home turf of then-union president Arthur A. Coia, who, like his father, Arthur E. Coia, himself a ranking union official, had worked with New England’s Patriarca crime family. The younger … Read More ➡
On May 12, Amanda Kemmer, ex-secretary for Bricklayers Local 3 in the Des Moines area, was given a 24-month prison sentence plus three years probation, and was ordered to pay full restitution for embezzling union funds. Kemmer pleaded guilty last December in federal court to stealing more than $209,000 over the period January 1997-April 2004. She’d pocketed about $175,000 of that by using a rubber stamp to write herself checks, and raked in the rest by altering pay stubs and pilfering cash. (OLMS, 5/27).
Indictment of Pittsburgh-Area Bookkeeper Unsealed
On May 11, an indictment against Patricia Longbon, ex-bookkeeper for the AFL-CIO’s Building and Construction Trades Department (BCTD) of Southwestern Pennsylvania, was unsealed after a year-long delay. Longbon had been indicted on 25 counts in connection with embezzlement of $10,157 of union funds, and two counts of creating false financial records. The delay was … Read More ➡
Organized labor has made little secret of its opposition to the Bush administration’s proposal to reform the Social Security system. The Labor Department and certain ranking members of Congress want to make sure that the unions, led by the AFL-CIO, keep their campaign in bounds. DOL recently issued a reminder; one might not be enough.
In a letter dated May 3, Deputy Assistant Secretary of Labor Alan Lebowitz informed the AFL-CIO that unions may not use financial services firms’ positions on the Social Security issue as a reason to withdraw pensions from those firms. The letter did not overtly accuse the labor federation or its member unions of breaking any laws. But it did request the organization to clarify to member unions that their choice of pension fund managers, by law, must be based on fiduciary responsibility toward present and future retirees; the views … Read More ➡
David Feeback enjoyed nights out on the town. He soaked it all up – fine food, fine champagne, and even a few belly dancers for good measure. But now the former president of Local 69 of the Hotel Employees and Restaurant Employees International Union (HERE) may have to get used to prison fare. That’s because all that fun came out of raids on the union cookie jar. On May 3 Feeback pleaded guilty in federal court in Newark to two counts of embezzling anywhere from $70,000 to $120,000 from the local’s welfare fund during 1998 to 2001. His 2,900-member local, based in Secaucus, N.J., represents workers at Meadowlands Giants Stadium and other New Jersey locations.
The local already had been in hot water with the feds. In 1996 a court-ordered monitor took over the union, removing its president, John Agathos, and vice-president, John Agathos, Jr., from office. His successor, … Read More ➡
Leslie Patricia Bell made off like a bandit back when she ran the books for Laborers Local 1184. Now she’s being prosecuted like one. The Justice Department announced on May 4 that they had charged the 39-year-old Palm Desert, Calif. woman with embezzling more than $178,000 from the union. From 1997 until her termination in July 2003, Bell served as full-time bookkeeper for the local, which represents some 3,200 construction, maintenance and grounds keeping workers in Riverside and San Bernardino Counties. Since she already had pled guilty, the announcement would have seemed anticlimactic. But the U.S. Attorney’s Office believes the case is serious enough to warrant formal charges.
There’s good reason for this. Bell was responsible for paying Local 1184’s bills as well as receiving and depositing member dues. Evidence from a Labor Department probe revealed she began stealing from the local in May 2001, deriving most of her take … Read More ➡
Hiring carpenters at below union-scale wages and benefits can be profitable – for union shop stewards as well as contractors. That’s what a federally-appointed monitor of New York City’s District Council of Carpenters found after an extensive investigation into allegations of bribery at local construction sites.
The monitor, Walter Mack, a former federal prosecutor, issued a report on May 5, concluding that a Queens-based construction firm, Boom Construction Enterprises, had made payoffs to Carpenters’ Union shop stewards at several construction project sites. In one case, at Bronx’s Jacobi Medical Center, stewards omitted mention of two to six workers from their daily employee reports. The probe began shortly after a union business agent told Mack’s office about an anonymous tip he’d received.
Boom’s owner, Derek McKenna, paid union stewards $200 to $800 per week, more than $80,000 in all. A bartender at O’Shea’s … Read More ➡
On Monday, May 16, the U.S. Attorney’s Office in Boston announced the arrests and four-count indictment of Virgil “Duke” Farese, 72, of Framingham, Mass., and James Armstrong, 39, of Boston. The two men, alleges the indictment, from February 1997 through December 2000, lent money at usurious rates to fellow members of their union, Tunnel Workers Local 88. Based on a joint federal-local investigation, Farese and Armstrong indicated to borrowers they would have to get violent in the event of a late payment. The cost of a loan was steep, carrying a weekly interest rate of 10 percent. If convicted, the two men face up to 20 years in prison and a $250,000 fine on each of the four loan-sharking charges. (PR Newswire Association, 5/16).
Kansas Truck Drivers’ Union Official Pleads Guilty to Embezzlement
On Wednesday, May 11, Daniel Van Becelaere … Read More ➡
The Department of Justice has taken a dramatic step to combat Chicago’s most feared gangsters. In the process, any number of crooked union officials may have a change in career plans. On Monday, April 25, the U.S. Attorney’s Office, Northern District of Illinois, announced the indictment of 14 top members of the Chicago Mafia, also known as ‘The Chicago Outfit,’ for crimes spanning some four decades. Three of the defendants already were in federal custody on separate charges. Another, straight out of a movie, was found dead, apparently of natural causes, when agents came to arrest him. Of the 11 defendants indicted under the Racketeer Influenced and Corrupt Organizations Act (RICO), seven had committed murders or agreed to commit murder. Collectively, they accounted for 18 previously unsolved murders and one attempted murder during the period 1970-86. Other crimes listed in the nine-count indictment include extortion, loan-sharking, bookmaking, witness intimidation, … Read More ➡
Local 933 of the American Federation of Government Employees for the last few years has been in financial shambles. The explanation lies at the top. The local’s leadership operated their union like a personal bank. A series of investigations, most recently by the Detroit News, reveal a disturbing pattern of embezzlement and other forms of malfeasance.
The problems of the local, which represents nearly 1,200 employees at John Dingell Veterans Hospital in Detroit, became apparent after Chetham Brazill, president of the local, left his position in December 2002. When first elected to office in 1997, Brazill inherited a union with a surplus of $66,000. Five years later he and his cronies had left the union in debt. The local had fallen behind by more than $50,000 in forwarding dues to AFGE national headquarters and more than $40,000 in insurance premiums to Colonial Life. At the behest of rank … Read More ➡
“An outstanding citizen, an outstanding cleric, and a person to be emulated” – that was Patrick Gillespie, head of the 35,000-member AFL-CIO Building and Trades Council for the Philadelphia area, describing the director of a local religious school now on trial for fraud, bribery and extortion. The object of Gillespie’s admiration was Shamsud-din Ali, a Muslim cleric (or “imam”), who ran Philadelphia’s Sister Clara Muhammad School – or perhaps more accurately, ran it into the ground. But it’s where Ali, a convicted murderer, got his money that may interest prosecutors as much as where the money went. Last month he was slapped with a superseding indictment in Philadelphia federal court.
The imam’s trial is the third resulting from a federal probe into financial mismanagement in Philadelphia. Investigators discovered that on November 30, 1999 a $15,000 donation from a group called the Friends of Labor was deposited into the … Read More ➡