On August 30, Ivar Carlson, former business agent and treasurer of International Alliance of Theatrical Stage Employees Local B-935, was sentenced in U.S. District Court for the District of Massachusetts to one year of probation for embezzling funds from the now-defunct Worcester-based union. He also was ordered to forfeit $16,151 in assets and pay $9,786 in restitution on top of the $6,775 he already paid. Carlson, a resident of Auburn, Mass., during March 2007-September 2016 had written or cashed union checks for unauthorized purposes. He had pleaded guilty this March to stealing $37,014 after being charged last December. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On August 28, Eleanor Harvey, former secretary-treasurer of American Federation of State, County and Local Employees Local 3826, was charged in Marion County, Indiana Superior Court with two counts of theft of funds from the Indianapolis union totaling between $750 and $50,000 following a grand jury indictment. The charge follows a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards and the Marion County Prosecutor’s Office.
On August 23, Gregg Pedersen, former president of Association of Civilian Technicians Local 75, was charged in U.S. District Court for the Northern District of Iowa with wire fraud in the sum of $6,320 against the Sioux City-based union. The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On August 23, Mitchell Sharp, a Phoenix-based former organizer for the Laborers International Union of North America, was charged in U.S. District Court for the District of Arizona with one count of theft from an Indian Health Service local office in Phoenix in an amount of more than $1,000. He then pleaded guilty. Sharp allegedly had made unauthorized use of his union credit card. The charge and plea follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
It’s a common truism that crooked teacher unions are a problem only for public schools. Ken Morris may be a prime example of the need for revision. On August 29, Morris, treasurer of American Federation of Teachers Local 2240, was charged in U.S. District Court for the Northern District of California with five counts of bank fraud and three counts of embezzlement totaling more than $31,000 from the San Francisco-based union, which represents teachers, counselors and librarians employed by the Catholic Archdiocese of San Francisco and the Catholic Diocese of San Jose. A grand jury had indicted Morris a week earlier. The charges follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.
According to prosecutors, Morris, now 50, a resident of Alameda, Calif. and a former math teacher at Archbishop Riordan High School in San Francisco, during September 10, 2018-December 10, 2018 took five checks of between … Read More ➡
On August 21, Wanda Coleman-Gordon, former secretary-treasurer of American Postal Workers Union Local 1477, was charged in U.S. District Court for the Eastern District of Texas following a grand jury indictment on one count of embezzling $71,063.49 in funds from the Tyler-based union. Coleman-Gordon allegedly stole the money during January 2010-April 2019. Prosecutors are seeking forfeiture of cash or other assets, plus interest. The indictment follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
For three years, Annette Jones used her union as a personal ATM card. Her card now no longer works. On September 10, Jones, former treasurer of American Federation of Government Employees Local 331, was sentenced in U.S. District Court for the District of Maryland to two years in prison for embezzling more than $80,000 from her union, which represents hundreds of employees at the Perry Point VA Medical Center in Cecil County, Md. She also was ordered to pay full restitution. Jones had pleaded guilty this May after being indicted in June 2018. The actions follow a joint investigation by the Department of Labor’s Office of Labor-Management Standards and the Department of Veterans Affairs’ Office of Inspector General.
On September 17, Mark Douglas, president of United Food and Commercial Workers Local 1101, pleaded guilty in U.S. District Court for the Eastern District of Louisiana to embezzling funds from the Arabi (near New Orleans) union. According to court records, during November 2011-January 2015 Douglas, now 72, a resident of New Orleans, had filed fraudulent claims for “lost time” reimbursement totaling $6,280.91. He had been charged this April with embezzling $7,078.35. AFGE Local 1101 represents employees of Domino Sugar Company. The plea follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Theodore Watson developed two streams of side income over nearly a decade: his union and a charity. Neither was legal. On September 17, Watson, former business manager for International Association of Heat & Frost Insulators and Allied Workers Local 74, was sentenced in U.S. District Court for the Southern District of Iowa to 18 months in prison, plus three years of supervised release, for acts of mail fraud and embezzlement against the Des Moines union and a United Way chapter over nearly a decade. He also was ordered to make restitution of over $125,000. Watson had pleaded guilty in April after being indicted last December. The actions follow an investigation by the U.S. Department of Labor’s Office of Labor-Management Standards.
When it comes to self-dealing, the United Auto Workers’ General Motors Department might rival its Chrysler Department. On September 4, Michael Grimes (in photo), a now-retired senior UAW official, pleaded guilty in U.S. District Court for the Eastern District of Michigan to honest services fraud and money laundering in connection with his receipt of over $1.5 million in illegal payoffs from UAW vendors over a dozen years. Eight days later, on September 12, a prominent union regional official, Vance Pearson, was arrested and charged with fraud, embezzlement and money laundering connected to separate schemes. The actions follow a joint investigation by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Union Corruption Update described the case of Michael Grimes a few weeks ago. Grimes, now 65 and living in Fort Myers, Fla., had served as a $150,000-a-year administrative assistant to United … Read More ➡