On January 22, Robert Clearwater, former president of National Association of Government Employees (NAGE) Local 14-8, was sentenced in U.S. District Court for the District of Kansas to three years of supervised probation for embezzling $11,681 in funds from the Topeka union. He also was ordered to pay full restitution plus a special assessment of $700. Clearwater had pleaded guilty to embezzlement and falsifying union financial records last April after being charged in February. NAGE is an affiliate of the Service Employees International Union. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
For years, Rocco Fazzolari used his union and a related benefit plan as sources of easy money. He’s now about to live the hard life. Fazzolari, formerly president of United Industrial and Service Employees Union Local 122, today was sentenced in Manhattan federal court to 37 months in prison for embezzlement, false record-keeping and receiving kickbacks from the East Meadow (Long Island), N.Y. -based union. Through these schemes, he and an unnamed co-conspirator had enriched themselves by more than $1.3 million. In addition to serving prison time, he will have to forfeit $941,828 in assets and pay restitution of $1,288,810.75. Fazzolari had pleaded guilty in September following a joint probe by the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration.
Police unions represent people who arrest thieves, not employ them. In Somerville, Mass., they’ve got both types. Last week, a source close to the local police department in Somerville, adjacent to Boston’s Charlestown neighborhood, revealed that the Somerville Police Employees Association (SPEA), an independent union of nearly 100 patrol officers, is missing between $50,000 and $90,000 from its coffers and that the culprit is one of its own. SPEA President Michael McGrath indicated that the case is under investigation, but would not comment further. No outside government agencies have gotten involved yet, but that could change soon.… Read More ➡
Kamala Harris, the junior U.S. senator from California, is a woman in a hurry. Elected in 2016, Harris today announced her candidacy for president in 2020. “I’m running for president of the United States, and I’m very excited about it,” she told ABC’s “Good Morning America.” Her track record, however, suggests she would be the kind of president who among other things would cut ethical corners on behalf of labor unions. Back in 2015, Harris, as California attorney general, helped a powerful affiliate of the Service Employees International Union (SEIU) scotch the purchase of a half-dozen nonprofit health care facilities by a corporate buyer to protect union jobs. While a federal judge twice has dismissed allegations by the buyer, Prime Healthcare, that she abused her office, the case deserves another look.
On December 20, John Burgess, former president of Pacific Stainless Products Employee Association Local 304, pleaded guilty in U.S. District Court for the District of Oregon to one count of concealment or destruction of financial records of the St. Helens-based union. He had been indicted in September on one count of embezzling about $35,000 and one count of concealment. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
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.
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 ➡
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.
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 ➡
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.