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 ➡
A former boss of the Service Employees Int’l Union used union members dues for personal trips to Disney World and London. The former head of the SEIU local in Boyton Beach, Fla., Wanda Stimpson, was sentenced Sep. 4 to 5 months in prison for embezzling $120,000 from the union for her vacations. Federal prosecutors said she altered checks to conceal her scheme. The SEIU boss also was sentenced to 5 months of home detention and 2 years of probation. There was no report of restitution. [Palm Beach Post 9/5/98]
$412K a Year Boss Sets Up Defense Fund
Reportedly America’s highest-paid union boss, Gus Bevona, who made $412,000 in 1997 as president of N.Y.’s SEIU Local 32B-32J, is in trouble. Despite his salary, Bevona is asking other union bosses to fund his latest legal defense costs. According to his lawyer’s recent letter to other bosses, he “is being victimized by … Read More ➡
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 ➡
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 ➡
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 ➡
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 ➡
The election of president of central California’s largest union “has been a cakewalk” for Don Hunsucker for nearly the past two decades, but fellow United Food & Commercial Workers Local 1288 member, Candelaria Arroyo, could change that in this month’s election. Arroyo has blasted Hunsucker and his staff for their lavish expense accounts, but stopped short directly criticizing Hunsucker for his $120,000 a year base salary. Hunsucker has been Local 1288’s boss for 20 years and has run unchallenged in every election since 1981. “There are some people who have been in office for so long that they’ve forgotten about the working people,” Arroyo said. [Fresno Bee 9/7/98]
Boston Bosses Monitored for Unfair Practices
The Service Employees Int’l Union has begun monitoring Boston’s SEIU Local 254 following a hearing last spring on allegations that the Local unfairly represented members. SEIU spokeswoman Jill Gallagher confirmed Sep. 16 that Thomas Balanoff … Read More ➡
A contract employee for the U.S. Labor Dep’t and a co-conspirator embezzled over $500,000 from DOL’s Division of Longshore & Harbor Workers’ Compensation. Jennifer M. Spraitz and Rachel Lea Gratton pled guilty to conspiracy to commit mail fraud and theft from a federal program. The Division administers compensation benefits, medical payments and vocational rehabilitation services to injured workers and is funded by the federal government and private employers. Spraitz created false vocational rehabilitation counselor invoices, making up the names of allegedly injured workers who were supposedly receiving services she listed on the invoices. Spraitz used Gratton’s name as the fictitious rehabilitation counselor on the invoices and listed addresses that were under their control. From Oct. 1993 to Nov. 1997, Spraitz submitted 150 fraudulent invoices which generated government checks totaling $524,722. Spraitz retrieved the checks for Gratton who then returned personal checks for half the amount to Spraitz. Both used the … Read More ➡
Frustrated by over 135 illegal union actions that have continually idled West Coast ports since 1996, the Pacific Maritime Assn. is seeking a court order to prevent dockworkers from violating contract provisions prohibiting strikes and slowdowns. PMA filed suit Sep. 11 in U.S. Dist. Court in L.A. to halt an alarming trend of improper walkouts, demonstrations and stoppages that have cost shippers and consumers tens of millions of dollars.
“Illegal slowdowns, gimmicks and games have become daily fare for the [Int’l] Longshore & Warehouse Union,” the suit states. “[M]illions of dollars are lost each week by the ILWU’s contemptuous behavior.” Named defendants include ILWU, Locals 13 in L.A. and Local 63 in Long Beach. The suit doesn’t seek financial damages. Instead, PMA attorneys want a permanent injunction to force ILWU to comply with existing contracts. The suit cites seven major work stoppages that were deemed illegal by arbitration authorities.
The … Read More ➡