Ex-Investment Mgr. Accused of Stealing over $300K in Pensions in NY

An union investment manager accused of stealing $314,000 from a laborers union pension fund — by concealing commissions he made on stock and bond trades — will now face a federal jury four years after his indictment.  Anthony DiPace’s embezzlement and wire-fraud trial begins Sept. 14 in Albany before U.S. Dist. Judge Thomas McAvoy (N.D., NY, Reagan).  The trial follows two failed requests to dismiss the charges in both U.S. Dist. Court and the 2nd Circ. Ct. of Appeals in Manhattan.

 

DiPace managed the health and welfare plan for the Laborers Intl. Union of N. America Local 190 from 1988 to 1996.  DiPace allegedly executed a series of trades through his private brokerage practice, Direction Planning on New Karner Road.  He is accused of collecting commissions on the trades without the fund’s trustees’ knowledge, violating federal pension rules that bar investment managers from acting as Read More ➡

Cleanup Continues at Miami Teachers Union

The temp. administrator of the United Teachers of Dade has agreed to sell its huge HQ to help pay off the millions in debt incurred on the union’s behalf by its convicted ex-chief, Pat Tornillo.  Current director Mark Richard announced the sale of the bldg. to Millennium Developers earlier this month.  Meanwhile, a panel of fed. appeals ct. judges upheld a portion of Tornillo’s sentence for embezzlement ordering him to repay the union the $150,000 it spent uncovering his theft of about $2.5 million when he was running the affiliate of the Amer. Fedtn. of Teachers.

 

Tornillo agreed to repay $650,000 to the union when he pled guilty last Aug.  Prosecutors with the U.S. Attny. for Sou. Fla., said then that the wording of compensation contracts between Tornillo and the UTD made it impossible to stick the embezzlement charge on any more funds taken by Read More ➡

Ex-Secy.-Treasurer Confesses to Embezzlement in Ohio Fed. Ct.

On May 17, in the U.S. Dist. Ct. for the North. Dist. of Ohio, Jeffery Henson, frmr. secy.-treasurer of Graphic Communications Workers Local 42-C, pled guilty to one count of embezzling $98,000 in union funds.  The guilty plea follows an investigation by the Cleveland Dist. Ofc. of the U.S. Ofc. of Labor Mgmt. Standards. [OLMS, 6/1/04]

 

Ex-Union Chief Sentenced for Mail Fraud in Texas Fed. Ct.

U.S. Dist. Judge Harold Barefoot Sanders, Jr. (N.D. TX, Carter) sentenced Rick Wilson to 15 mos. in prison, and ordered him to repay the more-than $33,000 he stole from the Dallas Patrolman’s Assn., now the Fraternal Order of Police.  At his sentencing, Wilson showed no remorse, but insisted that he used the union’s credit card for gas while doing union business, and often bought meals to recruit potential members.  But investigators pointed out that Wilson was not authorized to charge personal items to Read More ➡

Trial of Cap Consultants Exec & Union Pension Trustees Continues in Ore.

Federal prosecutors and lawyers for now-defunct Capital Consultants salesman Dean Kirkland began dueling in federal court on April 21.  Leading the case against Kirkland, Ore. Asst. U.S. Attny Neil Evans presented evidence that in 1999, union pension trustees were uncomfortable with their funds being moved into the investment firm that eventually collapsed in 2000.  Evans also presented testimony that Kirkland continued to arrange hunting trips with union trustees who supported Capital even after he was advised that such trips likely violated anti-kickback provisions of fed. pension law.  After U.S. Dist. Judge Anna Brown (Ore., Clinton) rejected defense lawyers’ motions to dismiss the case, they began their defense, claiming that in spite of the appearance, Kirkland was only arranging the trips to rebuild a relationship with his father, Gary, frmr. CEO of Local 11 of the Ofc. & Prof. Employees Intl. Union in Portland.Read More ➡

Mass. Secy. of State Levies $50m Fine against Investment Firm

On April 8, Secy. of the Commonwealth William Galvin levied a $50 million fine on Putnam Investment in a settlement in which Putnam admitted to allowing some managers and certain fund participants to market time in its mutual funds.  The administrative settlement also orders Putnam to pay $5 million in restitution to the affected funds. In a related settlement, the federal Securities and Exchange Commission also fined Putnam $50 million and ordered $5 million in restitutions to the funds.

 

“This case uncovered a corporate culture that turned a resolute blind eye to the most egregious conduct on the part of its managers who indulged in market timing, as well as the favored fund participants who were allowed to market time at the expense of other shareholders,” Secretary Galvin said.  “In accepting this order, Putnam has admitted its wrongdoing which is a key element in restoring the trust Read More ➡

Another Guilty Plea in UTU Bribery Case

On March 10, in the U.S. Dist. Ct. for the Sou. Dist. of Texas, John Rookard, a special asst. and project coordinator to Byron Boyd, president of the United Transportation Union, pled guilty to one count of labor racketeering conspiracy.  Rookard and Boyd admitted to soliciting and collecting thousands of dollars in cash from attorneys nationwide.  The scheme involved attorneys seeking designation by UTU to receive lucrative business associated with the personal injury claims of rail workers.  Rookard will forfeit $45,000 to the Federal government from the proceeds of the racketeering activity. The guilty plea follows a joint investigation by the New Orleans Dist. Ofc. of the U.S. Ofc. of Labor Mgmt. Standards, the Dept. of Labor’s Ofc. of the Inspector General and the FBI. [OLMS, 3/24/04]

 

Ex-President Sentenced for Falsification in La. Fed. Court

On March 11, in the U.S. Dist. Ct. for the Read More ➡

Ex-DC Union Chief Pleads Guilty, Refuses to Cooperate with Investigation

Ex-Wash. Tchrs. Union president Barbara Bullock confessed to stealing more than $2.5 million of the WTU members’ dues on Oct. 7 before U.S. Dist. Judge Richard J. Leon (D.C., G.W. Bush). However, the 66-yr.-old Bullock seems prepared to accept a 10-yr. prison sentence rather than provide information about two other frmr. WTU officials — frmr. Exec. Asst. Gwendolyn Hemphill and ex-Treasurer James Baxter. Hemphill reportedly rejected a plea bargain offer from the U.S. Atny. For D.C. identical to Bullock’s on Sept. 29. Baxter has also reportedly refused to negotiate with prosecutors. After they took over the WTU earlier this year, the Amer. Fedtn. of Teachers claimed that nearly $5 million is missing from the local union’s accounts.

Unanswered in the court was how the massive theft, which acc. to the charges filed Oct. 3 took place from Nov. 1995 until Bullock’s resignation in Oct. of last year, could have gone … Read More ➡

Extortion of Union Charges against Genovese Clan Thrown out

Sr. U.S. Dist. Judge Leo Glasser (E.D.N.Y., Reagan) has dismissed charges that the Genovese crime family committed extortion against the Intl. Longshoremen’s Assn. (ILA) by exercising control over its elected officials.

Glasser issued his ruling in response to the U.S. Supreme Court’s Feb. 26 decision in Scheidler v. Natl. Org. of Women(NOW).  The High Ct. ruled, 8-1, that anti-abortion protesters could not be sued for extortion under the Racketeering Influenced Corrupt Organizations (RICO) act.  The Ct. held that sit-downs at the doors of abortion facilities, though intended to prevent legal abortions, did not constitute the taking of “property,” which NOW had defined as the right to procure and perform abortions.

In the Genovese case, Judge Glasser ruled that under the new precedent, the denial of ILA members’ right of free elections could not be considered the extortion of “obtainable property.”  Consequently, U.S. Attnys. cannot bring RICO charges against Genovese head … Read More ➡

More Sentences Announced in Multi-Million Dollar Racketeering Scheme in NYC

The U.S. Ofc. of Labor-Mgmt. Standards announced the following sentences in the $6 million racketeering case against 26 bosses and members of the Intl Union of Elevator Constructors Local One. All seven were indicted on February 5, 2002 for conspiracy, false pension statements, money laundering conspiracy, money laundering, and unlawful labor payments following a joint investigation by the New York branch of the OLMS, the U.S. Dept. of Labor’s Pension and Welfare Benefits Admin., the FBI, and the IRS. They were all sentenced in the U.S. Dist. Ct. for the Eastern District of NY. All seven were sentenced in the U.S. Dist. Ct. for the East. Dist. of NY.

On February 10, 2003, Edward Donohue, a member of Elevator Constructors Local One, was sentenced to spend three years on probation, perform 400 hours of community service, pay $244,996 in restitution, pay a fine of $1,000, and pay a $100 assessment. … Read More ➡

Fed. Investigation of Mobbed-Up Bos. Local Chalks up First Conviction

The Fed. Govt. investigation of extortion and embezzlement by the hierarchy of Intl. Bhd. of Teamsters Local 25 won its first conviction on July 1.  John J. “Mick” Murray, a Local 25 member and alleged associate of fugitive organized crime boss James “Whitey” Bulger, confessed that he plotted to steal up to $1 million worth of computer equipment and guns with the help of Teamster drivers working for United Parcel Service.  He also confessed to exerting influence over frmr Local 25 President George Cashman to help him receive fraudulent health benefits from Local 25’s insurance plan.  Murray alone took in some $35,000 in undeserved health care benefits.

Perhaps, most heinous of all, acc. to Asst. U.S. Attny. Fred Wyshak, Murray participated in a terrifying extortion scheme with Bulger lieutenant Kevin Weeks in 1994, when they hauled a bookie named Kevin Hayes into a South Boston basement for a lesson in … Read More ➡