Boss Sentenced for Embezzlement

A former Local 478 Teamsters boss in Newark, N.J. was sentenced Sep. 22 to 15 months in prison and ordered to pay $25,000 restitution for embezzling more than $30,000 from the union. The U.S. Attorney’s Office said Joan Pribelzsky embezzled from the union’s general operating account and made false entries into the union’s books to disguise the thefts. She pled guilty May 1 to both charges. In Jun. 1994, Pribelzsky, without authorization, applied for a credit card under the union’s name and went on an 18-month shopping spree charging about $20,000 at places like Disney World, Victoria’s Secret and on the QVC channel, according court records. Pribelszky removed her charges from monthly statements so the union saw only their charges. She then had checks made out for false expenditures that she used to pay her credit card charges. She also stole $10,000 in cash of which $5,000 covered pending bankruptcy … Read More ➡

Report Released on Corrupt New York Boss

Detailed charges against Charles Hughes, a prominent N.Y. City union boss who was expelled on Jun 26., were released Sep. 18. The Am. Fed. of State, County & Municipal Employees has long refused to release the sealed report, but a union official upset about corruption at AFSCME Dist. Council 37 leaked it just recently. AFSCME accused the 30-year boss of embezzling $1.7 million union members. Hughes’ conduct was described as “a vigorous effort to plunder his union’s coffers.” Experts told the N.Y. Times that the findings document one of the worst cases of union embezzlement in years.  No criminal charges have been brought, but the Dist. Attorney’s office is investigating.

The panel harshly condemned Hughes for claiming 1,820 hours of overtime a year (35 hours a week) in every year from 1993-97 for which he was owed more than $300,000. His salary was $224,000, while most of his local’s members … Read More ➡

Bosses & Liberals Team-Up Again

The Wash. Post reported that a coalition of unions and liberal activists are planning to raise several million dollars to be spent on ads supporting President Clinton and accusing Republicans mishandling the probe at the “expense” of other issues. The liberal People for the American Way has plans for an aggressive air campaign attacking Republicans by focusing on Republican “overreaching.” Other interest groups, including the AFL-CIO, are reportedly  interested in sponsoring a campaign of strengthening Clinton in his battle to remain in office.  [Wash. Post 9/29/98]

QUOTABLE QUOTES
“This place is a cesspool of corruption. We’re trying to save the union before the District Attorney marches in and people get the wrong impression about the union, and everyone is branded a crook.”

-Mark Rosenthal, a dissident leader in AFSCME Dist. Council 37 in N.Y. City [N.Y. Times 9/21/98].… Read More ➡

Hoekstra Turns Probe to DOL

In the ongoing Congressional probe of the tainted 1996 Teamsters election, Rep. Pete Hoekstra (R-Mich.) is exploring claims that U.S. Labor Dep’t officials agreed to take action on the union’s behalf in return for its support for President Clinton’s 1996 reelection campaign. Hoekstra, Chairman of Oversight & Investigations Subcommittee of the Workforce Committee, has asked DOL Sep. 18 for documents relating to a Mar. 1995 meeting that he says was attended by Harold M. Ickes, former deputy chief of staff at the White House; Thomas Glynn, former deputy secretary of DOL; Steve Rosenthal, former associate deputy secretary of DOL; Ron Carey, disgraced former president of the Teamsters; and William Hamilton, disgraced former government affairs director of the union.  This request follows Attorney General Janet Reno’s announcement that she has opened a 90-day preliminary investigation into allegations that Ickes lied in Senate testimony last year about his efforts to help the … Read More ➡

Fawell Press Ahead with Reform Legislation

Rep. Harris W. Fawell (R-Ill.) announced Sep. 24 that he will introduce legislation to amend the Labor Management Reporting and Disclosure Act prior to the adjournment of Congress next month. Fawell, Chairman of the Employer-Employee Relations Subcommittee of the Workforce Committee, said during the latest in a series of hearings on “impediments to union democracy” that he has come to the conclusion that the “goals” of the 1959 law, also known as the Landrum-Griffin Act, “are not always reached.”   The proposed legislation that is largely based on the recommendations of two leading experts on union democracy, Prof. Clyde Summers of the University of Pennsylvania Law School and Herman Benson, founder of the Association for Union Democracy, who both testified at earlier hearings of the subcommittee. Fawell’s announcement came as he opened a hearing into charges that the rights of members of the approximately 200-member American Radio Association are being violated. … Read More ➡

Workers Win Dues Ruling

U.S. Dist. Judge Royce Lamberth ruled Oct. 1 that the Communications Workers of America failed to inform about 50,000 affiliated workers that they didn’t have to pay full dues. Workers who pay a fee to the union for collective bargaining representation but don’t become full union members were awarded damages in the class-action suit sponsored by the National Right to Work Foundation.  Any of the workers who didn’t want to pay for work the union did outside of collective bargaining, such as political advocacy, from 1987-95 can request reimbursement for a portion of their dues. A NRTW foundation spokesman Stefan Gleason called Lamberth’s ruling a “monumental decision on behalf of workers across the country. Not only will it allow these abused workers to exercise their rights not to pay for union activities that they object to in the future, but it will also allow them to be reimbursed for the … Read More ➡

Second Hanley to Resign Over Criminal Charges

The son of Edward T. Hanley, the disgraced former President of the Hotel Employees & Restaurant Employees Int’l Union, has reportedly settled charges of embezzlement and misuse of union funds. Thomas Hanley has resigned as HERE’s director of organization and as president of Local 1 in Chicago. Kurt Muellenberg, HERE’s monitor under the 1995 consent agreement with the Justice Dep’t, confirmed that Hanley’s resignation was stipulated under an agreement settling various charges of misconduct. But, Muellenberg refused to give further details until U.S. Dist. Judge Garrett E. Brown has reviewed the agreement.

However, a government source familiar with the agreement told the Bureau of National Affairs that Hanley agreed to relinquish his two positions and pay a $25,000 penalty. But Hanley would be able to retain his HERE membership (thus his pension), and after Aug. 31, 1999, he could participate in HERE without restriction the source said. Hanley’s ouster comes … Read More ➡

Federal Sting Nabs Corrupt Boss

A Chicago Teamsters boss was indicted Sep. 17 for taking $16,000 in bribes from a mole of an federal investigation called Operation Silver Shovel. The mole, John Christopher, attempted to bribe the boss to overlook his financial obligations to Local 786. The local’s president from 1982-97, Walter Hoff, allegedly accepted two payoffs. Hoff is the 17th defendant charged in the ongoing investigation, but the first defendant named in 10 months, and the first union figure implicated in what has been mostly a public corruption probe.

“Labor union officials are supposed to bargain with employers at arm’s length, not with their hands in each other’s pockets,” said U.S. Atty. Scott Lassar. “The defendant allegedly placed his own financial interest ahead of his
duty to protect the interests of the workers whom he represented.”

Hoff is charged with 9 counts of fraud, labor racketeering and tax evasion. Prosecutors said that one payoff … Read More ➡

Rerun Election Pushed Back

U.S. Dist. Judge David N. Edelstein approved Sep. 14 an new timetable for the Teamsters rerun election. Members will vote Nov. 2-Dec. 3., and counting begins Dec. 3. The reason for the delay: the $538,000 money-laundering schemes employed by the disgraced and expelled president, Ron Carey’ campaign. Taxpayers have been forced to contribute $4 million to the rerun’s monitoring cost after paying nearly $20 million for the failed monitoring of the 1996 election. The corrupt union reluctantly agreed to pay $2 million. This is $2.6 million short of the $8.6 million originally requested. The savings will come from limiting protest processes and substituting electronic devices for security guards at the ballot counting. [BNA 9/16/98]
 
Texas Boss Gets 51 Months for Theft
A Houston Teamsters boss was sentenced Aug. 31 to 51 months in prison for using union funds for personal items such as underwear and monogrammed luggage. Richard … Read More ➡

Boss Stole $8K on the Job

According to the Ohio auditor’s office, the president of the Am. Fed. of State, County and Municipal Employees Local 3984 owes Ohio $8,217 that she admitted stealing last year while working in the Butler Co. Clerk of Courts office. Lori Lutes, who is also a motor-vehicle dep’t bookkeeper, pled guilty in Jul. to “theft in office,” a felony.  [Cincinnati Enquirer 9/10/98]

LIUNA Boss Accused of Harassment
Two female construction workers who alleged that a union boss demanded sex for job assignments have won probable cause findings from the Mass. Comm’n Against Discrimination. Ruth Ann Niemeyer and Pamela J. Corey alleged James M. Porter, LIUNA Local 243 business manager, made the women perform sex in return for work. Winning the Sep. 3 decision was the women’s first legal hurdle. Despite complaining about Porter’s behavior, LIUNA refused to take action. The alleged actions are quite sick. Niemeyer alleges Porter forced her … Read More ➡