With a certain reluctance, Chrysler Corporation accepted the Obama administration’s forcible transfer in 2009 of company stock to the United Auto Workers. The Auburn Hills, Mich.-based automaker now is feeling an aftershock. On July 26, Alphons Iacobelli, the company’s former labor negotiator, and Monica Morgan, the widow of UAW Vice President General Holiefield, were indicted in U.S. District Court for the Eastern District of Michigan for defrauding the UAW-Chrysler National Training Center of at least $1.2 million and likely much more. Prosecutors allege Iacobelli, who left Chrysler in 2015, wrote numerous checks from a center bank account to a shady nonprofit controlled by Holiefield, whose wife used much of the pilfered funds to finance her own enterprises and shopping sprees. Iacobelli and Morgan have pleaded not guilty. Another ex-Chrysler official, Jerome Durden, was charged separately and pleaded guilty yesterday.
Those who follow the U.S. auto industry remember all too well … Read More ➡
On July 7, Jay Roy, former secretary-treasurer of Sheet Metal, Air, Rail and Transportation (SMART) Local 1245 – Transportation Division, was sentenced in U.S. District Court for the Northern District of Georgia to two months in prison and two years of probation for embezzling funds from the Locust Grove, Ga.-based union, and was ordered to pay $83,417 in restitution plus a $100 special assessment. Roy had pleaded in March to one count of theft in the amount of $2,125, though he had stolen far more. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Sometimes the U.S. Department of Labor has to investigate its own employees for union corruption. That’s why Lon Sullivan is now an ex-employee. On June 28, Sullivan, former treasurer of American Federation of Government Employees Local 644, was sentenced in U.S. District Court for the District of Delaware to three years of probation and 200 hours of community service for wire fraud against the Baltimore union. He also was ordered to pay $59,809 in residual restitution, having already paid $37,000. Sullivan, a Delaware resident who had worked for the Occupational Safety and Health Administration, had pleaded guilty in February immediately after being charged. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡
On July 7, Lonzell Moore, former president of American Postal Workers Union Local 1730, was charged in U.S. District Court for the Northern District of Illinois with one count of embezzling $18,857 from the Des Plaines, Ill. union. Five days later, on July 12, he pleaded guilty. The charge and plea follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On June 27, Kimberly Steinhoff, former treasurer of United Steelworkers Local 87, was charged in U.S. District Court for the Western District of Michigan with one count of embezzlement in the amount of $12,751 from the Munising (Upper Peninsula)-based union. The charge follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On June 21, Tamika Bullock, former secretary-treasurer of International Brotherhood of Boilermakers Local 684, was indicted in U.S. District Court for the Eastern District of Virginia on one count of embezzling $24,600 in funds from the Chesapeake-based union. The indictment follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On June 22, Jeanette Willoughby, former president of American Federation of Government Employees Local 2009, was charged in Nassau County (N.Y.) District Court with embezzling $2,487 in funds from the Garden City union. She then pleaded guilty, and was sentenced to a (suspended) one-year sentence. She also was ordered to pay full restitution. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
International Brotherhood of Teamsters Local 50 for the past year has been operating on tight leash imposed by union headquarters in Washington, D.C. Members now have a clearer idea why. On June 20, Scott and Nancy Alexander, respectively, former president and former office administrator of the Belleville, Ill.-based union, were indicted in U.S. District Court for the Southern District of Illinois for embezzlement and fraud related to the disappearance of thousands of dollars of union funds. The charges follow an investigation by the Labor Department’s Office of Labor-Management Standards. Teamsters General President James P. Hoffa had imposed a trusteeship on the local last July.
Scott Alexander was president of the 2,400-member Teamsters Local 50. His wife, Nancy, was office administrator of the union, located in Belleville, across the river from St. Louis, Mo. Their combined income was about $200,000 – until they, along with four other union officers, were replaced… Read More ➡
Arthur Boedecker, all things considered, got off pretty lightly. On June 20, Boedecker, former vice president of Utility Workers Union of America Local 270, pleaded guilty in the Cuyahoga County, Ohio, Court of Common Pleas to one count of aggravated theft from the Brooklyn Heights-based union. He then was sentenced to a jail term of three days and fined $500. Boedecker had been indicted last September for money laundering and six months earlier for receiving unauthorized payments from the union in the amount of $40,203. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Among union officials on the corruption radar screen, John T. Coli Sr. long has ranked among the most prominent. But the powerful Chicago-area Teamster boss’s luck finally appears to have run out. Last week, on July 12, Coli, now 57, was indicted by a federal grand jury on five counts of extortion and one count of attempted extortion from a local film production company. During July 2016-April 2017, allege prosecutors, Coli (in photo, on right), as head of Teamsters Local 727, received cash payments from the firm totaling $100,000, threatening economic retaliation if the money was not forthcoming. By no coincidence, Coli announced his retirement from Teamster activity that day, though without mentioning the indictment. A bench warrant for his arrest has been issued, but the date of his arraignment has yet to be set.
Teamsters Local 727 is a longtime Coli family business, a reality that Union Corruption Update … Read More ➡