The United Auto Workers knew a settlement was coming. Now comes the hard part: compliance. This past Monday, December 14, Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, announced that his office and the UAW had settled a civil suit filed earlier that day against the union based on acts of fraud, embezzlement and tax evasion committed by certain among its members. Criminal investigations had led to charges and convictions of 15 individuals, mostly union officials, including recent UAW Presidents Gary Jones and Dennis Williams. Most thus far have received sentences. The consent order, which requires court approval, creates an Independent Monitor possessed of the authority for up to six years to investigate and discipline corruption.
Union Corruption Update has covered this two-part investigation many times (such as here and here) since it broke open in July 2017. The 400,000-member, Detroit-based United Auto Workers, though … Read More ➡
When it comes to open borders enthusiasm, few labor organizations are the match of the Las Vegas-based UNITE HERE Local 226. Representing around 60,000 hotel-casino and other employees in Las Vegas and Reno, the union for years has promoted illegal immigration as a means of building membership and bargaining power. That advocacy just might have delivered Nevada to Joe Biden in the presidential election. By its own count, union activists knocked on a half-million doors in the state in its effort to defeat Donald Trump, speaking to more than 100,000 persons. “We think we are the difference maker – without any question,” said UNITE HERE International President D. Taylor at a press conference a couple days after Election Day. Given his union’s stance on immigration, and the compelling evidence of vote fraud in that state, it is thus fair to ask: Did the union play a part in that fraud? … Read More ➡
Jennifer Rogers played a supporting role, but it was enough for prosecutors to secure a guilty plea. Last Tuesday, December 1, Rogers, the daughter of Linda Rogers, former secretary-treasurer of American Federation of State, County and Municipal Employees Local 2254, pleaded guilty by videoconference in U.S. District Court for the District of New Jersey to aiding her mother’s embezzlement of $40,455 in funds from the Jersey City union. The pair had been charged in August. AFSCME Local 2254 represents employees at Jersey City Medical Center, including clerical workers, therapists and housekeepers. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.
Linda Rogers, as secretary-treasurer, had sole control over union finances. According to prosecutors, daughter Jennifer Rogers, now 38, a resident of Jersey City, helped her mom rip off the union. During July 2016-August 2017, as an employee of the hospital as well as a … Read More ➡
For a few years, Sarah Geddes Holmes used her union like a personal bank. She now might be facing a few years in prison. Last Thursday, December 3, Holmes, former secretary-treasurer of International Association of Machinists and Aerospace Workers Local 24, pleaded guilty in U.S. District Court for the District of Maryland to embezzling nearly $300,000 in funds from the union through embezzlement and bank fraud. She had been charged in an information count on November 23. The union represents more than 400 employees of a combined 10 employers at Andrews Air Force Base in Maryland. As part of her plea agreement, she must pay full restitution. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards. Sentencing is set for March 4.
According to prosecutors, Holmes, now 65, a resident of Clinton, Md., during May 2015-June 2018 embezzled local funds by writing checks to herself, … Read More ➡
On November 2, Tyrone Johnson and Dorothy Jordan, respectively, former president and former secretary-treasurer of American Federation of State, County and Municipal Employees Local 3374, were indicted in the Circuit Court for Baltimore City on two charges each of stealing funds from the Baltimore union. Johnson allegedly stole between $100 and $1,500; Jordan allegedly embezzled between $1,500 and $25,000, plus another $2,206. The union represents employees of Johns Hopkins Bayview Medical Center. The indictments follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
On November 13, Michael Johnson, former president and business manager of International Brotherhood of Electrical Workers Local 1658, was sentenced in U.S. District Court for the Eastern District of Arkansas to five years of probation, with the first six months to be spent on a monitored curfew, for embezzling $9,317 in funds from the Pine Bluff-based union. He also was ordered to pay full restitution. Johnson had been charged this past March, pleading guilty immediately afterward. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards. … Read More ➡
On November 17, Angel Luis Garcia, former financial secretary of Amalgamated Transit Union Local 1614, was sentenced in U.S. District Court for the District of New Jersey to a year of home confinement, plus three years of supervised release, for embezzling around $117,000 from the union, based in Dover (Morris County), N.J. He also was ordered to pay $119,021 in restitution and a $100 special assessment. Garcia had pleaded guilty this June after being charged in December 2019. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
Jeffrey Veach may see himself as “old school,” but he’s about to get a new kind of education. On September 23, Veach, former president of the Portage, Ind.-based International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Local 395, was sentenced in U.S. District Court for the Northern District of Indiana to 42 months in prison for conspiracy to threaten and commit violence against nonunion workers at a construction site in Dyer, Ind. He and other union members had tried to shake down an out-of-state contractor into hiring only union labor. He and another member, Thomas Williamson Sr., had pleaded guilty in January after being charged in August 2018. Williamson, who also pleaded guilty, is set for sentencing on December 15. The actions follow a probe by the FBI, the Labor Department’s Office of Inspector General and the Dyer Police Department.
Union Corruption Update covered this case twice before … Read More ➡
The unfinished business of the United Auto Workers scandal is nearing its end. A week ago, on November 17, Joe Ashton, former vice president of the UAW’s General Motors Department, was sentenced in U.S. District Court for the Eastern District of Michigan to 30 months in prison for receiving over $250,000 in illegal bribes and kickbacks from a union vendor, and for conspiring with two fellow union officials to launder the proceeds. He had pleaded guilty last December. Several ranking UAW officials, including its two previous presidents, already have pleaded guilty to embezzlement, racketeering and tax fraud charges. The actions follow a joint investigation by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Ashton, now 72, a resident of Ocean View, N.J., is a retired UAW vice president. He now is also one 15 defendants convicted of financial crimes related to … Read More ➡
Benefit fraud has become an enormous form of theft from labor unions. Add one more case to the list. On October 23, federal prosecutors announced a settlement with a Michigan-based company, Great Lakes Medical Laboratory, Inc., for a little over $1.2 million, a sum representing twice the company’s combined fraudulent billings of the Medicare program and a United Mine Workers of America-affiliated health plan in West Virginia. “This settlement demonstrates my office’s commitment to protect critical Medicare dollars and union-affiliated benefit plans from fraud and abuse,” said U.S. Attorney Mike Stuart. The action follows a joint probe by the Office of Inspector General of each of the Labor Department and the Health & Human Services Department, plus the U.S. Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST).
If there has been a state hit harder by the opioid drug crisis than West Virginia, it would be hard to name … Read More ➡