David N. Kelley, the United States Attorney for the Southern District of New York, Pasquale D’Amuro, the Assistant Director in Charge of the New York Office of the FBI, Robert Johnson, the District Attorney for Bronx County, and Gordon S. Heddell, the Inspector General of the United States Department of Labor, announced on March 9 the unsealing of a 53-count Indictment in Manhattan federal court captioned United States v. Arnold Squitieri, et al., 05 Cr. 228 (the Indictment”).
The Indictment charges 32 defendants, most of whom are members or associates of the Gambino Organized Crime Family of La Cosa Nostra (“LCN”), with wide-ranging racketeering crimes and other offenses spanning more than a decade, including violent assault, extortion of various individuals and businesses, loansharking, union embezzlement, illegal gambling, trafficking in stolen property
and counterfeit goods, and mail fraud.
The chief defendant is Arnold Squitieri, a/k/a “Zeke,” a/k/a “Bozey,” a/k/a … Read More ➡
A federal grand jury returned a five-count indictment on Feb. 23 against a former Sussex County political party chairman and two other individuals for their roles in embezzlement schemes that victimized Local 16 of the United Service Workers of America and its now-bankrupt health fund. Charles W. Cart, Charles H. Wiener and Marvin Raphael are charged with conspiring to embezzle a total of approximately $284,000 in health and union funds as a result of a multi-faceted fraud scheme existing between May 2000 and November, 2001.
Susan Donato of St. Cloud, Fla., formerly the President of Local 16 and the administrator of the Local 16 Health Fund was previously charged in a separate one-count Information. Donato pled guilty in January to conspiracy to embezzle from the Health Fund and is presently cooperating in the government’s investigation.
Cart is a former Sussex County political party chairman as … Read More ➡
On Feb. 20, Walter J. Browne, former President of the National Federation of Public and Private Employees, and Patricia A. Devaney, his sister and Administrative Assistant at the union were sentenced to terms of 5 yrs, 10 months’ imprisonment and 2 yrs., 3 months’ imprisonment. They were sentenced by U.S. Dist. Judge Jose E. Martinez (S.D. FL, G.W. Bush) in connection with the defendants’ violations of the Racketeering Influenced and Corrupt Organizations (RICO) Act. The sentences were announced by Marcos Daniel Jiménez, U.S. Attny. for the Southern Dist. of Fla.; and Douglas Colon, Special Agent in Charge, U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations
On June 2, 2004, Browne and Devaney were convicted by a federal jury in Miami, after a two-month trial, of conspiring to violate RICO, in violation of Title 18, United States Code, Section 1962(d), and of committing substantive RICO … Read More ➡
While seeking fiscal responsibility in his proposed FY 2006 budget, Pres. Bush has made it clear that he will not stint on fighting union corruption. While the Dept. of Labor’s overall budget is decreased by 4.4 pct. from FY 2005, the U.S. Office of Labor-Mgmt. Standards includes an increase of $7 million to fight fraud and corruption in labor unions. Money would be used to beef up audits, help hire 48 new auditors, and investigate and combat embezzlement of union funds. [DOL, 2/7/05]… Read More ➡
The former Business Manager of Tunnel Workers Local 88 was arrested on Feb. 4 on federal racketeering charges. Scott Boidi, age 46, of Pembroke, Massachusetts, is charged with one count of Racketeering, three counts of Embezzlement of Union Assets, one count of Possession with Intent to Distribute Cocaine, one count of Use of a Communication Facility in Furtherance of a Crime, one count of Carrying a Firearm During and in Relation to a Drug Trafficking Crime; and two counts of Witness Tampering.
From June 1991 through May 2002, Boidi served as the Business Manager of Local 88 of the Tunnel Workers in Boston and Quincy. As Bus. Mgr., Boidi was responsible for, among other things, the processing of membership applications, which included collecting initiation fees from prospective members and placing members in jobs. The Indictment charges Boidi with having used the union as an enterprise … Read More ➡
Ex-judge Leslie Crocker Snyder, who has yet to formally announce her bid to unseat veteran Manhattan Dist. Attny. Robert Morgenthau, already boasts an impressive lineup of union endorsements. The Captains Endowment Association, the Detectives Endowment Assn., NY State Court Officers Assn. and the Uniformed Fire Officers Assn. were among those who publicly backed Snyder at a news conference in mid-Jan.
Bolstered by the law-enforcement unions, Snyder suggested that if elected this fall, she would not spend half the DA’s budget on white collar crime. (Morgenthau aides said it’s actually 30 to 40 percent.) But there could be some other reasons unions might support Morgenthau’s opponent. The Detectives Endowment Association has been furious at Morgenthau for vacating the convictions of five men in the Central Park jogger case in 2002 after DNA linked another man to the 1989 attack.
Many other govt. union officials have distrusted … Read More ➡
John “Buddy” Ruel liked a good time. He’d slap down a credit card to pay for booze, items from an adult toy shop, limousine rides, even an escort service. The only problem was that the credit card wasn’t his. It belonged to the Chicago Ironworkers District Council, a powerful union group that Ruel headed for years.
On Jan. 17, the federal government moved against Ruel for his alleged excesses, charging him with “converting the labor organization’s funds to his own use” over at least seven years by using a union credit card and phone card for his own personal whims. Ruel was president of the district council, the umbrella group for around 7,100 ironworkers and machinery-moving riggers, for more than a decade, until he was voted out and replaced by Danny Aussem in 2001.
Aussem said the finances were awful when he took over. … Read More ➡
Now that several of its top officials have pled guilty in a massive, mob-orchestrated no-show jobs scheme, the next stop for the city’s powerful Operating Engineers union is expected to be a federal trusteeship, reports Tom Robbins of the Village Voice.
The Manhattan and Brooklyn U.S. Attorneys, who brought twin cases against officials of locals 14 and 15 of the engineers–and their mob allies–have made little secret of their intent to file civil racketeering charges against the union itself. Talks on a possible civil RICO case are ongoing, union officials acknowledge. “Our lawyers are working with the feds; that’s where it stands,” said Joe Brady, a spokesperson for the national union in Washington.
But John Ruggiero, a former Local 15 business agent, has told prosecutors that he was told that recently convicted Local 15 boss Tommy Maguire had paid $80,000 to the president of the IUOE … Read More ➡
In a vote that was scarcely noticed at the time but today is drawing scrutiny from federal investigators, the City Council quietly approved extraordinary retirement benefits for three politically powerful individuals — the presidents of the police union, the firefighters union and the white-collar workers union. All three are current or former city employees and vested in the municipal pension system.
Under this highly irregular arrangement, the union chiefs were allowed to add their union salaries to their city salaries in calculating their retirement benefits, thus substantially boosting their taxpayer-financed pensions. This unique perk, extended exclusively to the three incumbent union leaders, but not to their successors, will cost taxpayers $2 million, according to an estimate by Michael Conger, a Rancho Santa Fe lawyer who has successfully sued the city on other pension matters.
At best, the cozy deal worked out for the union presidents was a grossly … Read More ➡
For more than 25 years there hasn’t been a big construction job in this city where Tommy Maguire, leader of the Operating Engineers union, wasn’t present for the photo op. Recently, he was there at ground zero, glowingly describing the dedication of his members as they disinterred the wreckage.
Then last month, shortly before his 69th birthday, Maguire was compelled to attend a different kind of event, this one in Brooklyn federal court, where he stood glumly alongside three other union officers as he admitted to taking bribes from contractors in a scheme that had helped to vastly inflate the cost of construction in this town. Going back to 1989, he acknowledged in court, he had accepted payoffs, sometimes in the form of Christmas gifts, from at least two contractors.
The conviction of Thomas P. Maguire was greeted as just another ho-hum labor corruption tale in a … Read More ➡