New York City-area construction unions are well-known for being on the take. An announcement by the U.S. Department of Justice won’t likely alter that reputation. On October 1, the U.S. Attorney’s Office for the Southern District of New York announced the arrest and indictment of 11 officials of the New York State Building and Construction Trades Council for various charges related to their receipt of over $100,000 in bribes from nonunion contractors in return for bid-rigging, in the process selling out the dues-paying union members whom they represented. Led by Trades Council President James Cahill, the defendants are current or former members of two local affiliates of the United Association of Plumbers & Pipefitters. Aiding in the probe was the Suffolk County (Long Island), N.Y. district attorney’s office. All the defendants pleaded not guilty at arraignment.
It’s a common form of back-scratching in the world of organized labor: An employer, … Read More ➡
John Ulrich might have called it payola, but prosecutors called it bribery. And evidence indicates they were right. On December 12, Ulrich, former vice president of the Great Neck (Long Island), N.Y.-based International Brotherhood of Teamsters Local 812 and a trustee of its health plan, pleaded guilty in Manhattan federal court to soliciting tens of thousands of dollars in bribes from an official with the plan’s third-party contractor in return for ensuring the union’s retention of the company. Ulrich had been indicted last February following a joint investigation by the FBI and the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration. Sentencing is set for April 23.
Teamsters Local 812 represents more than 3,000 soft drink and brewery production, bottling, delivery and auxiliary workers in the New York City metropolitan area. It also has a health benefit plan lucrative enough to attract … Read More ➡
James Moylan is about the last person that International Brotherhood of Electrical Workers Local 98 wants to see taking the witness stand. But those fears might be realized. On October 16, Moylan, a longtime friend of John Dougherty, business manager of the powerful Philadelphia union, pleaded guilty in federal court to 17 counts of wire fraud and four counts of filing false income tax returns in connection with his theft of around $49,000 from two nonprofit groups, each in some way supported by the union. He had been charged in January following a joint probe by the FBI, the IRS, the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration, plus the Pennsylvania State Police and Attorney General’s Office.
IBEW Local 98, now with about 4,700 members, for years has held a prominent place in the overlapping worlds of Philadelphia labor, real estate … Read More ➡
The identity of Michael Carney’s union forever may remain unknown, but at least Carney himself is getting a measure of justice. On November 8, Carney, a former real estate manager for an unnamed labor union based in Herndon (Fairfax County), Va., was sentenced in U.S. District Court for the Eastern District of Virginia to eight months of home confinement and two years of supervised probation for conspiring with a private contractor to commit wire fraud and embezzlement. He also was fined $25,000. A required restitution order for $23,367 previously had been satisfied. Carney had pleaded guilty in May immediately after being charged. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
As Union Corruption Update had indicated earlier (here and here), Carney, now 64, a resident of Ashburn, Va., along with an unnamed relative, during roughly mid-2012 through mid-2015, … Read More ➡
The strike by nearly 50,000 United Auto Workers against General Motors ended after nearly six weeks on October 25. But Jeffrey Pietrzyk’s troubles are far from over. On October 22, Pietrzyk, a retired top aide to ex-UAW Vice President Joe Ashton, pleaded guilty in Ann Arbor federal court to honest services fraud and money laundering charges in connection with his acceptance of about $123,000 in bribes and kickbacks from union vendors. He had been charged on September 20. His offenses were part of a dozen-year, $2 million scheme in the union’s GM Department led by now-convicted ex-UAW official Michael Grimes. The actions follow an investigation 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 covered this scandal in August and September. The United Auto Workers’ General Motors Department, like its Chrysler Department, has been the focus … Read More ➡
When it comes to self-dealing, the United Auto Workers’ General Motors Department might rival its Chrysler Department. On September 4, Michael Grimes (in photo), a now-retired senior UAW official, pleaded guilty in U.S. District Court for the Eastern District of Michigan to honest services fraud and money laundering in connection with his receipt of over $1.5 million in illegal payoffs from UAW vendors over a dozen years. Eight days later, on September 12, a prominent union regional official, Vance Pearson, was arrested and charged with fraud, embezzlement and money laundering connected to separate schemes. The actions follow a joint investigation 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 described the case of Michael Grimes a few weeks ago. Grimes, now 65 and living in Fort Myers, Fla., had served as a $150,000-a-year administrative assistant to United … Read More ➡
For a half-dozen years, Dana Pullman (in photo) headed a union representing law enforcement officers. He’s now become acquainted with law enforcement in a very different way. Two days ago, on August 21, Pullman, former president of the State Police Association of Massachusetts, was arrested at his home and then charged in Boston federal court with wire fraud, honest services fraud and obstruction in connection with the misuse of an estimated $75,000 in funds from the Boston-based union. A now-retired state lobbyist, Anne Lynch, also was arrested and charged. Pullman’s attorney, Martin Weinberg, says his client denies all charges and “never acted in a manner that compromised his loyalty to his union.” Each defendant has been released on a $25,000 bond. The actions follow a joint probe by the FBI and the IRS.
Dana Pullman, now 57, a resident of Worcester, headed the more than 1,500-member State Police Association of … Read More ➡
On July 12, Howard Janoske, co-owner of an HVAC and plumbing company in Maryland, was sentenced in U.S. District Court for the Eastern District of Virginia to six months of home confinement and two years of supervised probation for his role in a conspiracy to commit honest services fraud, theft and embezzlement over a three-year period. He also was ordered to pay restitution in the sum of $23,367, pay a fine of $25,000 and forfeit $92,432 in assets. Janoske had pleaded guilty in March. The actions follow a joint probe by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
As Union Corruption Update had reported, Janoske and a business agent of a large, unnamed Herndon, Va.-based union had entered into an illegal play-for-pay arrangement. Through his company, Janoske from about mid-2012 until mid-2015 paid the official tens of thousands of dollars for personal home … Read More ➡
This March, Union Corruption Update made mention of an unnamed union official who enabled a convicted Maryland contractor, Howard Janoske, to siphon funds from his unnamed union for his own personal use. At least the official now has a name, and a criminal conviction to go along with it. On May 16, Michael Carney, a former facilities and real estate manager for the Herndon, Va.-based union, pleaded guilty in U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit honest services wire fraud, theft and embezzlement of funds over a three-year period. Carney’s conviction, like that of Janoske, follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Michael Carney, now 63, a resident of Ashburn, Va., who handled physical plant issues for the union, also saw his job as an opportunity to score some illegal money. … Read More ➡
Howard Janoske obtained business on the principle that every man has his price. Now he’s likely to pay a different kind of price. On March 1, Janoske, president of an unnamed Maryland-based plumbing and HVAC contractor, pleaded guilty in U.S. District Court for the Eastern District of Virginia to honest services fraud, theft and embezzlement in providing an official of an unnamed Virginia-based labor union with extensive kickbacks over a three-year period in return for receiving preference for union contracts. Sentencing is scheduled for July 12. The plea follows a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
According to the indictment, Howard Janoske, now 74, a resident of Oakland, Maryland (in the westernmost portion of the state), entered into an illegal quid pro quo agreement with the facilities and real estate manager of an unnamed large international union based in … Read More ➡