Local AFSCME Official in Wisconsin Charged with Theft

On June 12, Jennifer Conway, former vice president of American Federation of State, County and Municipal Employees Local 727D, was charged in Dunn County, Wisconsin Circuit Court with one count of misdemeanor theft in the sum of $250. The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

AFSCME President in Wisconsin Charged with Embezzlement

Linda Woodford admits she acted stupidly. She should have thought about that beforehand. On June 12, Woodford, former president of American Federation of State, County and Municipal Employees Local 727, was charged in Dunn County (Wisconsin) Circuit Court with embezzling more than $4,000 from the Menomonie-based union, which represents nursing home employees. The charge follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

Woodford, now 41, a resident of Glenwood City (St. Croix County), headed the union during December 2015-July 2017. According to prosecutors, she used the last few months of her tenure to steal $4,055.37 by writing more than two dozen unauthorized union checks either to herself or other people and by making one unauthorized cash withdrawal. In October 2018, more than a year after her dismissal, she admitted writing the checks. She emphasized that she “needed the money” and used the union checking account as … Read More ➡

Indiana AFSCME Secretary-Treasurer Pleads Guilty to Theft; Sentenced

On June 5, Charlotte McDaniel, former secretary-treasurer of American Federation of State, County and Municipal Employees Local 3826, pleaded guilty in Marion County, Indiana Superior Court to one count of theft of funds in an amount of between $750 and $50,000 from the union, which represents Indianapolis public school bus drivers. She then was sentenced to a year in jail, with all but two days suspended, and ordered to pay $4,082 in restitution. McDaniel had been indicted in March following an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

HHS Finalizes Rule Barring Union Medicaid Dues-Skimming

A half-decade ago, the Obama administration, in apparent defiance of federal statutes, issued a rule authorizing states to deduct union dues from home care providers whose income is partly or fully Medicaid-derived. The experiment now has ended. Yesterday, May 2, the Department of Health and Human Services (HHS) issued a final rule to protect non-joining independent providers from having a portion of their paychecks deducted and routed to a union. Public-sector unions have generated an estimated $200 million a year this way. Mark Mix, president of the National Right to Work Committee, calls the reversal “an encouraging action toward stopping union bosses from unlawfully using public payment systems to intercept tax dollars intended for providers caring for those in need.” The rule is set to take effect on or about July 5.

Union Corruption Update examined this issue at length last year. On July 12, HHS posted a Notice … Read More ➡

AFSCME Secretary-Treasurer in Indianapolis Indicted for Theft

On March 15, Charlotte McDaniel, former secretary-treasurer of American Federation of State, County and Municipal Employees Local 3826, was indicted in Marion County, Indiana Superior Court on three counts of theft from the Indianapolis union in a sum of between $750 and $50,000. The union represents Indianapolis public school bus drivers. The indictment follows a probe by the Labor Department’s Office of Labor-Management Standards. Ms. McDaniel, it should be noted, has a “history.” Back in August 2015, she pleaded guilty to misdemeanor battery for hitting an unruly 14-year-old female student with a broom handle while on her afternoon bus route about a year and a half earlier. One wonders if she has a future.… Read More ➡

Detroit AFSCME President Sentenced for Embezzlement

Mervin Hawk was an unlucky gambler. That’s why his time behind bars is a sure thing. On March 7, Hawk, former president of American Federation of State, County and Municipal Employees Local 1640, was sentenced in U.S. District Court for the Eastern District of Michigan to 30 months in prison, to be followed by three years of supervised release, for embezzling more than $330,000 in funds from the Detroit union over a more than two-year period. Hawk had pleaded guilty last November after being charged in a one-count information last April with stealing over $600,000. He also was ordered to make restitution in the amount of $362,623. The actions follow a joint investigation by the FBI and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

According to court records, Hawk, now 59, a resident of Southfield, Mich., used his position to make frequent withdrawals from … Read More ➡

AFSCME Treasurer in Northern California Sentenced for $500K Ripoff

Susan Kyle paid herself on a weekly basis. Unfortunately, union members were involuntarily subsidizing her. On February 4, Kyle, former treasurer of American Federation of State, County and Municipal Employees Local 2428, was sentenced in U.S. District Court for the Northern District of California to two years in prison, plus three years of supervised release, for embezzling nearly $500,000 in funds over a six-year period from the Oakland-based union, which represents employees of East Bay Regional Parks. She had pleaded guilty last October to embezzlement and concealment; as part of the plea agreement, she will pay full restitution. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.

According to prosecutors, Kyle, now 61, a resident of Citrus Heights (Sacramento County), Calif., used her position as local treasurer to “issue unauthorized payments to herself on a weekly basis” during 2008-14. She would verbally authorize the union … Read More ➡

Top Ten Union Corruption Stories of the Year

The year 2018 saw the indictment, conviction and sentences of plenty of organized labor scams. New York City played host to some of the largest. For sheer magnitude, nothing anywhere could match the network of union fraud surrounding the construction of Hudson Yards, a large-scale, mixed-use development on Manhattan’s West Side. Set for completion in 2024, the project from the start has been a source of easy money for labor organizations affiliated with the Building and Construction Trades Council of Greater New York. The general contractor, Related Companies, having reached the limits of frustration, filed suit last March with the State Supreme Court against the council and its president for promoting or allowing illegal practices that allegedly have added over $100 million to the total project cost.

In other cases from the Big Apple, the president of a United Industrial and Service Employees local, Rocco Fazzolari, pleaded guilty … Read More ➡

Los Angeles Teacher Sues Union, School District Over Forced Representation

The union calls them “service fees.” In practice, they amount to dues. And public school teachers are among those who believe that it is a distinction without a difference. On November 13, Thomas Few, a special education teacher in Los Angeles, filed suit in U.S. District Court for the Central District of California against the United Teachers of Los Angeles and the Los Angeles Unified School District challenging their tandem practice of deducting a large fee from salaries of teachers who remain employed but leave the union. In the wake of the U.S. Supreme Court ruling in Janus v. AFSCME Council 31, Few had informed the union of his intent to resign, but was told that he would have to pay an annual “service fee” equivalent to monthly dues. The union, an affiliate of the state chapters of both the American Federation of Teachers and the National Education Association, … Read More ➡

East Bay AFSCME Treasurer Pleads Guilty to Embezzling Nearly $500K

Susan Kyle proved extraordinarily clever. But in the end, she was not clever enough. On October 29, Kyle, former treasurer of American Federation of State, County and Municipal Employees Local 2428, pleaded guilty in U.S. District Court for the Northern District of California to embezzling $490,338 in funds from the Oakland-based union, which represents employees of East Bay Regional Parks. She also pleaded guilty to concealing her thefts in union financial records. As part of her plea, she agreed to pay full restitution. Kyle had been charged on October 5. The actions follow an investigation by the U.S. Department of Labor’s Office of Labor-Management Standards.

Kyle, now 61, served as treasurer of AFSCME Local 2428 during 1999-2014. According to prosecutors, she spent the last seven of those years ripping off the union. On numerous occasions, she instructed a third-party payroll processing company to issue unauthorized payments to herself and then … Read More ➡