Former ILWU Official in Hawaii Pleads Guilty to Identity Theft, Tax Fraud

It wasn’t exactly the classiest behavior. On March 28, Nathan Lum, former director of the Longshore Division of International Longshore and Warehouse Union Local 142, pleaded guilty in U.S. District Court for the District of Hawaii to one count each of aggravated identity theft and income tax evasion. The offenses, unrelated to operations of the Honolulu-based union, had a lot to do with his misuse of his late father’s stream of income. The guilty plea follows a joint investigation by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards. Sentencing is scheduled for July.

Court records show that Lum, now 61, a powerful, well-paid boss of the more than 1,000-member ILWU Local 142, cashed Social Security checks made out to his late father, who died in June 2013, and diverted the money to his own use. In addition, he failed to file federal income tax returns … Read More ➡ “Former ILWU Official in Hawaii Pleads Guilty to Identity Theft, Tax Fraud”

ILWU, Dockworkers in Oregon Sued for Roles in Time Card Scam

There are few workplaces in this country that can match the shipping terminal when it comes to wage and hour fraud – especially if the dockworkers are unionized. Back in December, Columbia Export Terminal in Portland, Oregon filed a lawsuit in U.S. District Court for the District of Oregon against the International Longshore and Warehouse Union and more than 150 local members, accusing them of participating in a conspiracy to inflate their clock time in a variety of ways. The schemes allegedly cost the terminal over $5 million. The union, the suit reads, “organized and orchestrated the scheme to submit falsified time sheets.” A court spokesperson told National Legal and Policy Center yesterday afternoon that the case remains active, though a pretrial hearing has yet to be scheduled.

The longshore industry long has been plagued by union-abetted time sheet fraud. About a dozen years ago, Union Corruption Update extensively covered Read More ➡ “ILWU, Dockworkers in Oregon Sued for Roles in Time Card Scam”

ILWU Secretary-Treasurer in Hawaii Indicted

On April 11, Charles Kimo Brown, former secretary-treasurer of International Longshore and Warehouse Union (ILWU) Local 142, Hawaii Longshore Division, was indicted in Honolulu federal court on two counts each of embezzlement totaling $1,575 from the union and concealment of the thefts in union financial records. According to prosecutors, Brown, now 60, a resident of Mililani, during December 2009-April 2014 received “lost time” reimbursements from the local when in fact these were hours during which worked for his regular employer. The union represents about 1,000 Hawaii dockworkers. The indictment follows a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡ “ILWU Secretary-Treasurer in Hawaii Indicted”

Ex-Bookkeeper for Los Angeles Local Arrested for Thefts

ilwu-logoFor a union office employee, Rosa Della Porta seemed to live beyond her means. The new BMW she drove to work raised her boss’ suspicions, especially as funds seemed to be disappearing. Those suspicions eventually were borne out. Della Porta, former bookkeeper for Local 26 of the International Longshore and Warehouse Union in Los Angeles, was arrested this month for embezzlement of $108,000 in local funds and indicted on August 8 in federal court. “After receiving cash from various sources, Della Porta allegedly deposited less cash than the union received and pocketed the difference,” noted the U.S. Attorney’s Office.

The local began an internal audit after it noticed discrepancies in its books. Local 26 President Luisa Gratz, suspecting Della Porta had been dipping into the till, then notified the U.S. Department of Labor’s Office of Labor-Management Standards, which in turn conducted a full investigation. The DOL determined that Della Read More ➡ “Ex-Bookkeeper for Los Angeles Local Arrested for Thefts”