The House Education and the Workforce subcommittee began looking Oct. 6 into whether former U.S. Trade Rep. Mickey Kantor pressured a Cal. firm to settle a strike with the Teamsters in order to encourage campaign contributions from the union. Kantor, a long-time Clinton advisor, told a Rep. Peter Hoekstra’s (R-Mich) committee that a telephone call he made at the request of then-White House Deputy Chief of Staff Harold Ickes to Diamond Walnut Grower’s former chief executive officer, William Cuff, didn’t involve pending campaign donations. The probe is looking into allegations that Ickes served as a conduit between the administration and Teamsters. Presently, Attorney Gen. Janet Reno is considering appointing an independent counsel to investigate Ickes. A decision is expected next month.
According to a memos written by former Teamsters boss William W. Hamilton, who has been separately indicted for his role in the Teamsters money-laundering schemes of 1996, Ickes told … Read More ➡
Representatives of the Laborers’ Int’l Union of North Am. and the Justice Dep’t met Oct. 6 to assess the union’s future after Jan. 31, 1999 when DOJ’s oversight of LIUNA is supposed to end. Michael S. Bearse, LIUNA’s general counsel and New England labor lawyer, said this was the first in a series of meetings “to decide what happens next and understand each other.” The next meeting is Oct. 21. Bearse said, the union would like to see “more arm’s length supervision” from DOJ. However, others outside LIUNA’s inner circle have called for DOJ to take over LIUNA and oust the current leadership before DOJ’s authority do due so lapses. Among the many reasons for a government takeover is the fact that Gen. President Arthur A. Coia, who DOJ said in its 1994 draft RICO complaint had “associated with, and been controlled and influenced by, organized crime figures,” is still … Read More ➡
Utility Workers of Am. Local 537 Secretary-Treasurer William S. George was sentenced Oct. 14 to 5 months in prison for stealing union funds. He pled guilty Jul. 30 to 6 counts of embezzlement. The plea came after the Pittsburgh union boss was indicted Apr. 22 in U.S. District Court for stealing over 40,000 of union members’ funds. According to the U.S. Attorney’s Office, George used several schemes, including fraudulent reimbursements for meals, postal costs and lost wages. The indictment alleged he had UWA pay for personal cellular phone and florist bills. He also used UWA’s credit card to pay for other personal expenses. George had faced 5 years in prison and $1,500,000 in fines. [Pittsburgh Post-Gazette 10/15/98]
Boss Banned from Union Office
Union embezzler, Janet Brown, was sentenced Oct. 8 to 4 months of house arrest and was banned from union office for 13 years. The former president of … Read More ➡
An audit of the Kentucky AFL-CIO sparked by member union complaints of corruption has turned the Ky. AFL-CIO upside down: so much so that it had to cancel its state convention last week. Notice of the national AFL-CIO’s audit arrived in Frankfort on Sep. 15. That day, Donna Bayless, the Ky. AFL-CIO’s bookkeeper at the center of the corruption allegations, was reported missing. She was found dead Sep. 19, an apparent suicide. She was found in a secluded wooded area owned by her family. Police said Bayless died of a single gunshot wound in the side of her head and a pistol was found near her body.
Police are investigating an Aug. break-in at the Ky. AFL-CIO HQ in which records were stolen and a Sep. 4 fire. The fire did minimal damage but destroyed union records and is considered an arson. Bayless disappeared the same day police went to … Read More ➡
Kentucky Democratic Gov. Paul Patton’s two top aides and two Teamsters bosses were indicted on charges of violating campaign finance laws in Patton’s 1995 election. The special grand jury indictments were unsealed Sep. 24 by a Ky. Supreme Court order. The named were: Skipper Martin, Patton’s chief of staff and 1995 campaign manager; Danny Ross, Patton’s labor liaison who ran a pro-Patton campaign for the Teamsters and the AFL-CIO between stints on Patton’s state payroll; Lon Fields, president of Teamsters Local 89 in Louisville, where Ross ran the campaign; and Robert Winstead, secretary-treasurer of Local 89 and recording secretary of the Teamsters’ state council, through which the national union paid for Ross’ campaign work. The four’s lawyers denied their clients broke the law.
Patton has denied wrongdoing, and in an act of defiance, he said that Martin and Ross would keep their state jobs, saying they were “vital to the … Read More ➡
The lawyer who represented the disgraced and expelled Teamsters President Ron Carey in his 1996 reelection pled guilty Oct. 1 to one count of conspiracy for making false statements to a court-appointed officer. It’s the fifth guilty plea, with one indictment, in the money-laundering scheme which funneled over $538,000 into Carey’s campaign. Nathaniel Charney, of the labor law firm of Cohen, Weiss & Simon, admitted in U.S. Dist. Court in Manhattan to lying to former election officer Barbara Zack Quindel about contributions and to concealing that two employers had sent his law firm checks for the Carey campaign. It’s illegal for employers to contribute to union candidates. Reportedly, Charney vetted contributions to a special fund that took donations from non-Teamsters. He faces 5 years in prison and a $250,000 fine. He acknowledged in court that he is cooperating with prosecutors, which implies that more indictments are likely. [N.Y. Times… Read More ➡
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 ➡
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 ➡
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]
“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 ➡
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 ➡