Ex-Treasurer of West Virginia Teachers Union Sentenced for Fraud

On October 2, Cathy Byers, former treasurer of American Federation of Teachers Local 6540, was sentenced in U.S. District Court for the Southern District of West Virginia to eight months of home confinement and five years of supervised release for wire fraud in the sum of roughly $22,000 from the Ronceverte (Greenbrier County), W.Va.-based union. She also was ordered to pay a $100 special assessment on top of the restitution she already has paid. Byers had pleaded guilty in June to one count of wire fraud following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡

Fort Knox AFGE President Sentenced for Fraud, Forgery

On October 1, Rocky Gannon, former president of American Federation of Government Employees Local 2302, was sentenced in U.S. District Court for the Western District of Kentucky to 15 months of home incarceration, four years of probation and 250 hours of community service for fraud and forgery. He had pleaded guilty in June after being charged in November 2019 with three counts of fraud and nine counts of securities forgery. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Central California Union Consultants Charged with Fraud

In California, selling worker’s compensation insurance requires a license. The business practices of Marcus Asay and Antonio Gastelum would seem to justify such a requirement. On September 24, Asay, founder of a Fresno-area firm, American Labor Alliance, and Gastelum, a former principal officer of the alliance, were charged in U.S. District Court for the Eastern District of California in a 19-count superseding indictment for fraud and money laundering related to the sale of their financial products. In 2018 the California Department of Insurance had penalized the company and certain affiliates by more than $4.3 million. The latest action follows in the wake of an amended civil suit filed by a Fresno-area employer. The defendants are denying all wrongdoing. The charges follow a probe by the FBI, the IRS, the Social Security Administration and the Department of Labor.

American Labor Alliance (ALA), launched in 2007, doesn’t look like a union. But … Read More ➡

Machinists Secretary in Texas Pleads Guilty; Sentenced

On September 16, Moises Romero, former secretary-treasurer of International Association of Machinists and Aerospace Workers Local Lodge 811, pleaded guilty in the District Court of Harris County (Texas) to misdemeanor theft of fiduciary property of roughly between $500 and $1,000 from the Houston union. He then was sentenced to two years of deferred adjudication. As a condition of his plea agreement, he already had paid $21,342. Romero had been charged in February with misapplication of funds in a sum of between $20,000 and $100,000. Local 811 represents about 2,700 ramp and fleet service employees of United/Continental Airlines. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

SMART Treasurer in North Dakota Sentenced for Embezzlement

On September 30, Chad Waldoch, former secretary-treasurer of Sheet Metal, Air, Rail and Transportation Workers (SMART) Local 980, was sentenced in U.S. District Court for the District of North Dakota to 30 months of supervised release for embezzling $107,706 in funds from the Fargo-based union during January 2012-October 2017. He also was ordered to pay $50,270 in restitution on top of the $56,436 he already had paid, plus a $100 special assessment. Waldoch had pleaded guilty this June after being indicted in January. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

South Carolina Postal Workers President Sentenced for Theft

On September 29, Dana Roush, former president of American Postal Workers Union Local 403, was sentenced in U.S. District Court for the District of South Carolina to five years in prison and three years of supervised release for embezzling $10,889 in funds from the Spartanburg union. She also was ordered to pay full restitution. Roush had pleaded guilty in October 2019 after being charged in September. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Letter Carriers Local Treasurer in Michigan Sentenced

On September 28, Kathryn Connelly, former president of National Association of Letter Carriers Branch 707, pleaded guilty in U.S. District Court for the Western District of Michigan to one count of embezzlement of funds from the Sault Ste. Marie-based union in the amount of $10,323. She had been charged on August 31 following a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards and the U.S. Postal Service’s Office of Inspector General.… Read More ➡

LIUNA Office Manager in Indianapolis Pleads Guilty to Theft; Sentenced

On September 22, Misty Fain, former office manager for Laborers International Union of North America Local 120, pleaded guilty in Marion County, Indiana Superior Court to three counts of theft of funds from the Indianapolis union in a sum of at least $750 and less than $50,000. She then was sentenced to one year in prison (suspended) and one year of probation. She was also ordered to pay restitution in the amount of $10,000. Fain had been charged on August 5. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.   … Read More ➡

BLET Secretary-Treasurer in Texas Charged with Theft; Pleads Guilty

On September 16, Edward Davis Jr., former secretary-treasurer of Brotherhood of Locomotive Engineers and Trainmen (BLET) Division 620, pleaded guilty in U.S. District Court for the Northern District of Texas to embezzling funds from the Fort Worth union in the amount of $61,386. He had been charged in an information count two days earlier. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

NSO Treasurer in Texas Pleads Guilty to Embezzlement

On September 17, Harold Weatherford, former treasurer of National Staff Organization (NSO), Professional Staff Association, pleaded guilty in U.S. District Court for the Eastern District of Texas to embezzling $82,560 in funds from the Tomball (Houston metro area) union. He had been charged on August 21. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡