Terry Doan is a perfect example of why a union official should not be trusted with disbursing funds without the approval of at least one other fellow official. The union now has found out the hard way. On November 13, Doan, secretary-treasurer and a trustee of the Joint Apprenticeship Training Committee of Heat & Frost Insulators and Allied Workers Local 84, was indicted in U.S. District Court for the Northern District of Ohio on one count of embezzling nearly $200,000 from the training fund over a five-year period. Local 84 is based in Kent, Ohio. The indictment follows an investigation by the U.S. Department of Labor.
According to prosecutors, Doan, now 60, a resident of Deerfield (Portage County), Ohio, back in 2012 used his positions to rescind a requirement that training fund checks above a certain amount have the signature of two trustees. That move gave him carte blanche to … Read More ➡ “Heat & Frost Insulators Training Fund Officer Indicted for Embezzlement”
Virdell King wasn’t the main character in the self-dealing among certain officials of Fiat Chrysler Automobiles (FCA) and the United Auto Workers. But she may be headed for a brief stretch behind bars anyway. On November 13, Ms. King, a former contract negotiator for the UAW, was sentenced in U.S. District Court for the Eastern District of Michigan to two months in prison plus a year of supervised release for her receipt of tens of thousands of dollars from the till of the company’s National Training Center (NTC) in return for a promise to drop certain union demands during collective bargaining a few years ago. She also was ordered to pay a $5,500 fine and a $100 special assessment. The sentencing follows a joint probe by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Union Corruption Update has provided continuous … Read More ➡ “Ex-UAW Official Sentenced for Accepting Bribes in Chrysler Scandal”
The defendants came into the courtroom in large volume, but the judge was more than up to the task. On November 19, fully 27 members of local unions affiliated with the Indiana/Kentucky/Ohio Regional Council of the United Association of Carpenters and Joiners were sentenced in U.S. District Court for the Northern District of Indiana for defrauding the council’s health care program out of a combined $531,422.68. Though court records do not indicate any prison sentences, the defendants, all of them Indiana residents, were ordered to pay restitution. The actions follow a joint investigation by the U.S. Labor Department’s Office of Inspector General and Employee Benefits Security Administration, assisted by Indiana state officials.
According to prosecutors, each of the accused union members had filed fake claims for medical expenses with the Greenwood, Ind.-based council. One of them, Luka Kljajic, who pleaded guilty this July, during 2012-14 had coached various … Read More ➡ “Nearly 30 Indiana Carpenters Sentenced for $500K+ Benefit Fraud”
On November 6, Charles Webster, former president of Glass, Molders, Pottery, Plastics and Allied Workers (GMP) Local 284, was sentenced in U.S. District Court for the Eastern District of Texas to one year of probation for concealing false information in the records of the Longview-based union. He also was ordered to pay $4,633 in restitution, a $1,000 fine and a $25 special assessment. Webster pleaded guilty in May immediately after being charged. GMP voted to merge with the United Steelworkers back in August 2016. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “Glass Workers President in Texas Sentenced for Records Fraud”
Obnoxiousness is a universal human trait. But for unions, it’s a tool of persuasion. Large employers, with good reason, are wary. A new paper from the U.S. Chamber of Commerce, “Hardball: The Tactics of Union Corporate Campaigns,” summarizes organized labor’s frequently aggressive, predatory shakedown tactics in the search to win concessions from supposedly morally errant employers. These campaigns, which seek to discredit a targeted firm’s brand name in hopes of winning concessions, involve extensive groundwork; these campaigns can last for years. Unions and their allies test the legal limits of protest, while raising the costs of business. Undeterred by reality, certain lawmakers on Capitol Hill, led by Sens. Bernie Sanders, I-Vt., and Patty Murray, D-Wash., are sponsoring bills to repeal safeguards against such behavior.
Corporate campaigns are no stranger to Union Corruption Update (see here, here and here). These projects of confrontation and negotiation took off … Read More ➡ “New Report Describes Dirty Union ‘Corporate Campaign’ Tactics”
The fallout from the Chrysler-United Auto Workers scandal continues. On November 7, two former executives of Fiat Chrysler Automobiles (FCA), Jerome Durden and Michael Brown, along with an ex-UAW official, Keith Mickens, were sentenced in Detroit federal court for their roles in a broad scheme in which representatives of the auto manufacturer bribed union negotiators to avoid raising key issues during contract negotiations a few years ago. They are the third, fourth and fifth defendants to be sentenced in the scandal, estimated at $4.5 million, which also involved embezzlement and income tax evasion. The latest actions, said U.S. Attorney Matthew Schneider, represent “further strides in our effort to root out corruption” at FCA and UAW.
Union Corruption Update has covered this pay-for-play scandal many times since it broke last July. The primary culprits were Chrysler Vice President Al Iacobelli, UAW Vice President General Holifield, and Holifield’s girlfriend and … Read More ➡ “Two Chrysler Executives, UAW Official Sentenced for Roles in Bribery Conspiracy”
On October 15, John Zehm, former business manager for the Tile Setters and Finishers Union of Northern California, pleaded guilty in the Superior Court of California, County of Sacramento, to one misdemeanor count of grand theft from the Sacramento-based union. He then was sentenced to 90 days in jail (suspended) and three years of informal probation, and was ordered to pay $300 in fines. In addition, as part of his plea agreement, he already had paid $14,014 in restitution. Zehm had been indicted this June. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “Sacramento Tile Setters Business Manager Pleads Guilty; Sentenced”
On October 25, Anthony Edmunds, former president of United Auto Workers Local 2419, pleaded guilty in U.S. District Court for the Central District of Illinois to one count of embezzling funds from the Danville, Ill. union in the sum of $19,482. He had been indicted last December. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “Illinois UAW Local President Pleads Guilty to Embezzlement”
On July 23, Deborah Hand, former bookkeeper for Sheet Metal, Air, Rail and Transportation Workers (SMART) Local 270, was sentenced in U.S. District Court for the Northern District of Oklahoma to three months of incarceration, five months of home confinement and three years of supervised release for embezzling funds from the Tulsa-based union. She also was ordered to pay $44,808 in restitution and a $100 special assessment. Hand had pleaded guilty on July 31 after being charged a week earlier in a one-count information. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and the U.S. Secret Service.… Read More ➡ “Former Bookkeeper for SMART Local in Tulsa Sentenced”
On October 17, Benjamin Wisecarver, former president of International Alliance of Theatrical Stage Employees Local 264, was indicted in U.S. District Court for the Eastern District of Virginia on three counts of embezzlement, two counts of wire fraud and one count of conspiracy for his role in a scheme that embezzled $57,310 from the Hampton, Va.-based union. The indictment follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.… Read More ➡ “IATSE Local President in Virginia Indicted for Embezzlement”