Cherkasky’s Other Job Going Well

Cherkasky doesn’t only work for the government monitoring the Teamsters. He has remained the President & Chief Operating Officer of Kroll Associates which is part of the Kroll-O’Gara Company (NASDAQ: KROG), a worldwide private investigator & security firm based in N.Y. On Jun. 18, Cherkasky spent the day in Toronto closing a $16 million deal on Kroll’s latest acquisition of a Canadian forensic accounting firm. “It’s hard to beat them so we had to buy them… We can expand very rapidly across the world,” Cherkasky boasted to the Toronto media. The merger builds Kroll’s presence to 40 cities in 16 counties. Apparently, Cherkasky doesn’t have his hands full because he said he is looking to further expand his Moscow office’s work against burgeoning crime syndicates in Russia. [Toronto Star 06/18/98]
 
UP SHOT: How does Cherkasky have time to run his multi-million dollar business and still ensure the upcoming Teamsters … Read More ➡

The GM Strikes: An Eye-Opening Perspective

From Investor’s Business Daily’s editorial [06/22/98]: “It takes a lot of effort to put on a strike. Bodies are needed for the picket lines from dawn ’til after dusk. Somebody has to work the telephones. And the media message must be honed. That’s almost as much coordinated work as it takes to build cars. So we want to know: Why don’t members of the United Auto Workers direct their energy to making a superior product, instead of striking General Motors. There are many reasons, but one big one is that the union bosses wouldn’t like it. Workers would learn that they don’t need the union. They could earn high wages by simply turning out a car that buyers prefer…

The Flint stamping facility is at the bottom of the barrel when it comes to productivity. It has about half the output per hour worked of similar GM facilities. And the … Read More ➡

Violence Ravages Puerto Rico

Protesters planted bombs, smashed bank machines and severed and burned phone cables on Jun. 25, reacting with fury to the privatization of Puerto Rico’s phone company. One bomb exploded in a policeman’s hands. The bomb, concealed in a flashlight, was planted at a branch of Banco Popular, part of a consortium buying the Puerto Rico Telephone Co. It tore a finger off the officer’s right hand and wounded his left hand and leg.

Two large unions began a financial offensive against Banco Popular. The General Workers’ Council withdrew $40 million from accounts on Jun. 25, and the Teachers Association of Puerto Rico said it transferred $100 million out of the bank. The rash of sabotage started shortly after Gov. Pedro Rossello signed a law on Jun. 24 completing the $1.9 billion sale of the phone company, known as Telefonica, to a consortium led by GTE Corp.
 
Being told by … Read More ➡

Connecticut Union Bosses Settle Case

State AFL-CIO President John Olsen and 13 other fund trustees agreed on Jun. 10 to pay more than $2 million in restitution and another $416,000 in civil penalties. The Labor Department sued Olsen and other trustees of the CT Plumbers & Pipefitters pension fund over investments the department said were risky and led to losses of $2-3 million.

Olsen will be able to continue serving as a financial guardian of union pension funds under the terms of a settlement. The money will be paid by an insurance policy, not the trustees themselves.
 
In the original lawsuit, the department had asked that Olsen and the other trustees be permanently barred from serving as financial guardians to employee benefit plans. The settlement includes no such prohibition, although it does require the trustees to carefully evaluate potential risks. [Hartford Courant 06/11/98]

Longshoreman Pleads Guilty
A union dockworker pleaded guilty Jun. 12 for … Read More ➡

Ex-AFSCME Boss Indicted

In N.Y., Lawrence Germano former associate director and executive director of Council 82 of the American Federation of State, County and Municipal Employees was indicted on Jun. 5 on federal charges of defrauding union members through a computer-consulting scam in 1993-94. The 14-count indictment included Germano’s two brothers-in-law. This same AFSCME council had four bosses ousted in 1995 for misusing about $450,000 of union funds for out-of-state trips and visits to strip bars. [Albany Times Union 06/06/98]

VP Consorting with AFSCME Boss Implicated in Teamsters Scandal
Vice-President Albert Gore, Jr. had an “unusual” close-door meeting on Jun. 5 with 3 union bosses including AFL-CIO President John J. Sweeney and AFSCME President Gerald W. McEntee to discuss opposition to the proposed Freedom From Government Competition Act. McEntee has been implicated in the Teamsters money-laundering scandal. According U.S. District Court records, McEntee raised $20,000 for Ron Carey’s reelection campaign which allegedly violated … Read More ➡

Food Service Employees Ruin USC Graduation

L.A. Police arrested 37 members of the Hotel Employees & Restaurant Employees International Union, many disguised in caps and gowns, for unruly demonstrations during the University of Southern California’s commencement. The demonstration was part of an on-going strike against USC. USC spokesman James Elmendorf said, “it’s extremely tragic that this group would destroy, or attempt to destroy, one of the most significant days in the lives of the students and their families.” [City News Service 05/08/98]

Herman’s Independent Council Named
Announced May 26, Labor Secretary Alexis M. Herman will be investigated by Independent Counsel Ralph I. Lancaster, Jr. for an alleged swap scheme that traded campaign contributions to the DNC for favors to a business in which she had a financial interest during her time on the White House staff. Herman is the 7th top Clinton administration official to be investigated by an independent counsel over suspected criminal activity. [Washington … Read More ➡

Rerun Election Set for October

Due to the campaign money-laundering scandal which funneled at least $538,100 into the disgraced Carey reelection campaign, Teamsters will vote this fall for a new president. On Jun. 3, U.S. District Judge David Edelstein set Oct. 14 as the date for the mail-in ballots to be tallied. The Court has already disqualified Carey from the rerun. Likely candidates for president are James P. Hoffa, Carey’s 1996 opponent, and Tom Leedham who has the support of the influential liberal-activist group, Teamsters for a Democratic Union, as well as many other Carey supporters.

Related news: Rep. Peter Hoekstra (R-MI), chairman of the House committee looking into Teamsters corruption, told the Detroit News on Jun. 9, “I don’t want the election to go forward with the conditions that exist today. I just don’t know how you can run an honest election in this environment.” His concerns are a reminder of the $20 million … Read More ➡

Teamsters Scandal Briefs

Business Week [06/15/98] reported that top DNC/Clinton-Gore fundraiser Terrence McAuliffe’s conversations with 2 Democratic party staffers about a possible swap scheme with the Teamsters during the 1996 election are now “the focus of a federal grand jury in Manhattan that is investigating whether Democratic fundraisers conspired to find donors for Carey’s campaign in hopes of getting back hefty union contributions.”

Business Week also said sources “close to the investigation said the U.S. Attorney is interested in whether [an AFL-CIO] credit-card deal played a role in the swap schemes.” McAuliffe and Carey campaign consultant Martin Davis, who plead guilty to charges of conspiracy, mail fraud, embezzlement and making false statements to the court-appointed Teamsters election officer, were both under contract to “lobby the AFL-CIO Executive Council to switch its union credit card program” to Household International bank.

In a Jun. 3 ruling, Judge Edelstein rejected a Carey appeal of his disqualification … Read More ➡

N.Y. Teamsters Indicted

6 Teamsters were arrested in connection with a 14-man crime-ring that was stealing and reselling electronic equipment, clothing and jewelry in N.Y. Each faces up to 10 years in prison. Many of the stolen items were sold to an undercover FBI agent in 67 transactions according to U.S. District Court records. The 6 were UPS drivers. UPS notified the FBI that it had suspected criminal activity. [A.P. 06/11/98]

Violent Teamsters Shut Down CA Port
The Port of Hueneme, near L.A., was shut down on Jun. 1 due to a violent Teamsters strike sparked by a dispute over 2 forklift workers’ salaries. The reportedly illegal strike idled hundreds of workers and stranded 3 cargo-laden ships.
Police were present to stop Teamsters’ violence against Longshoremen wishing to cross the picket line. All 250 members of the International Longshoremen’s & Warehousemen’s Union honored the picket line until an arbitrator ruled that the strike … Read More ➡

Coia Warned Against Retaliating Against Witnesses

Rep. Harris W. Fawell (R-IL), chairman of a House subcommittee examining union abuses against members, sent letter to Laborers Int’l. Union of North America president Arthur A. Coia, warning him against acts of retaliation against individuals testifying before the committee.

Coia as long-been suspected of being under the influence of organized crime. In 1997, LIUNA’s in-house prosecutor filed charges against Coia for knowingly associating with organized crime and permitting organized crime to influence LIUNA affairs.

“We can not, and will not, tolerate any retaliation against any witness and we will take every step necessary and possible to protect them,” wrote Fawell in the May 27 letter. Stephen Manos, vice-president LIUNA Local 230 in Hartford, told the committee his Congressional testimony has “further exacerbated” acts of harassment, intimidation and retaliation against him, including a recent complaint filed in U.S. District Court by Local 230’s business manager Charles LeConche accusing him of … Read More ➡