Iowa Local Insulators Business Manager Indicted

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 ➡

New Jersey Executive Pleads Guilty to UAW Benefit Fraud

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.

Union Corruption Update has covered this case twice before (here and here). Lawrence Ackerman, now 54, a resident of Old Tappan (Bergen County), N.J., was … Read More ➡

Local Carpenters Financial Secretary in Kentucky Indicted

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 ➡

IATSE President in Virginia Pleads Guilty to Fraud and Embezzlement

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.

 … Read More ➡

SPFPA President in Maryland Sentenced for Thefts

On December 7, Keith Franzese, former president of Security, Police and Fire Professionals of America Local 275, was sentenced in Circuit Court for Prince George’s County, Md. to 10 years in prison (suspended), 90 days of home detention and five years of probation for various acts of theft from the Greenbelt-based union. He also was ordered to pay $67,624 in restitution. Franzese, who entered an Alford plea last June, had been indicted in November 2017 on 15 counts of various acts of theft, embezzlement and fraud totaling well over $200,000. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Police Union Treasurer in Rhode Island Sentenced for Fraud

Adam Conheeny is following in the footsteps of Christopher Hayes. And the path isn’t an enviable one. On December 20, Conheeny, ex-treasurer of Fraternal Order of Police Lodge 8, was sentenced in U.S. District Court for the District of Rhode Island to three months in prison, to be followed by two years of supervised release, for wire fraud in the sum of $31,413 against the Newport, R.I.-based union over a five-year period. He had pleaded guilty in May following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General, and the Rhode Island State Police. He has paid back the union in full. The case grew out of an investigation of former lodge President Christopher Hayes, who was sentenced in July 2017 for ripping off the union by more than $70,000.

According to prosecutors, Conheeny, 46, a resident of Portsmouth, R.I., and an officer … Read More ➡

Los Angeles Teacher Sues Union, School District Over Forced Representation

The union calls them “service fees.” In practice, they amount to dues. And public school teachers are among those who believe that it is a distinction without a difference. On November 13, Thomas Few, a special education teacher in Los Angeles, filed suit in U.S. District Court for the Central District of California against the United Teachers of Los Angeles and the Los Angeles Unified School District challenging their tandem practice of deducting a large fee from salaries of teachers who remain employed but leave the union. In the wake of the U.S. Supreme Court ruling in Janus v. AFSCME Council 31, Few had informed the union of his intent to resign, but was told that he would have to pay an annual “service fee” equivalent to monthly dues. The union, an affiliate of the state chapters of both the American Federation of Teachers and the National Education Association, … Read More ➡

Auto Workers Official Sentenced for Accepting Bribes from Chrysler Execs

Looking back, Nancy Adams Johnson probably doesn’t think the money was worth it. On December 18, Johnson, former chief negotiator for the United Auto Workers with Fiat Chrysler Automobiles, was sentenced in Detroit federal court to a year and a day in prison, and ordered to pay restitution and a $10,000 fine, for conspiring with certain UAW and Chrysler officials to receive more than $40,000 in cash payments and gifts in return for dropping certain issues during contract talks a few years ago. Johnson, who had been slapped with a five-count indictment this March, pleaded guilty in July. She is the seventh person to be sentenced in the scandal, which first came to light in July 2017. The actions follow a joint probe by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

According to prosecutors, Nancy Johnson, now 57, … Read More ➡

Mine Workers Secretary in Ohio Sentenced for Embezzlement

On December 10, Johnnie Nicholas, former financial secretary of United Mine Workers Local 4994, was sentenced in U.S. District Court for the Northern District of Ohio to seven days of incarceration and three years of supervised release for embezzling $37,900 from the New Philadelphia, Ohio-based union. He also was ordered to perform 200 hours of community service, and pay a $10,000 fine and a $100 special assessment. At sentencing, he paid residual restitution in the sum of $17,650. Nicholas had pleaded guilty in May following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Mexican Teachers Boss Accused of Theft; Steps Down

Juan Diaz de la Torre, until recently the head of the Mexican teachers union Sindicato Nacional de Trabajadores de la Educacion (SNTE), may have done the impossible by creating nostalgia for his predecessor, Elba Esther Gordillo Morales. Late in October, a group of member teachers filed a criminal complaint against de la Torre, accusing him of embezzling millions of pesos. “There are thousands of teachers in the country who are in the dark because they don’t know what their money is being used for,” said spokesman Venancio Morales Zuniga. The SNTE countered with its own suit, claiming the charge is “totally false and devoid of reality.” But with pressure on him growing, de la Torre stepped down a month later. The main beneficiary of all this – perish the thought – may be Ms. Gordillo, released from house arrest in August. Her supporters, regrettably, include teachers.

Established in 1943, … Read More ➡