Ex-SEIU Official in Chicago Indicted for Conspiracy, Wire Fraud

On May 7, Robert Kurtycz, former comptroller for the Service Employees International Union’s Chicago and Midwest Regional Joint Board, was indicted in U.S. District Court for the Northern District of Illinois on one count of conspiracy to commit commercial bribery plus six counts of wire fraud. One of the wire fraud charges involved the electronic transfer of funds from the Chicago-based labor organization for his receipt of unauthorized expense reimbursements totaling $85,962. The five others are related to this alleged offense. The indictments follow a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration.… Read More ➡

Washington State SEIU Affiliate Settles Suit Over Forged Signature

Service Employees International Union Local 775, it seems, would do anything for a buck, including collecting dues from a former member. It’s now learned its limitations. On March 29, the Seattle-based union reached an out-of-court agreement with a Spokane home caregiver, Cindy Ochoa, following its admission that one of its canvassers had forged her signature on a membership card. Ochoa, with the help of a nonprofit legal group, the Freedom Foundation, had filed a lawsuit in federal court in October alleging the union had violated her First Amendment rights, unlawfully withheld part of her wages, and caused emotional distress. Local 775 agreed to pay $15,000 in damages to her and $13,000 to the foundation to cover legal fees, plus send her a written apology.

SEIU Local 775 represents more than 45,000 long-term health care providers in Washington State and Montana, many of them operating out of their homes on behalf … 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 ➡

Kansas President of Government Employees Union Sentenced

On January 22, Robert Clearwater, former president of National Association of Government Employees (NAGE) Local 14-8, was sentenced in U.S. District Court for the District of Kansas to three years of supervised probation for embezzling $11,681 in funds from the Topeka union. He also was ordered to pay full restitution plus a special assessment of $700. Clearwater had pleaded guilty to embezzlement and falsifying union financial records last April after being charged in February. NAGE is an affiliate of the Service Employees International Union. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Kamala Harris Goes to Bat for the SEIU

Kamala Harris, the junior U.S. senator from California, is a woman in a hurry. Elected in 2016, Harris today announced her candidacy for president in 2020. “I’m running for president of the United States, and I’m very excited about it,” she told ABC’s “Good Morning America.” Her track record, however, suggests she would be the kind of president who among other things would cut ethical corners on behalf of labor unions. Back in 2015, Harris, as California attorney general, helped a powerful affiliate of the Service Employees International Union (SEIU) scotch the purchase of a half-dozen nonprofit health care facilities by a corporate buyer to protect union jobs. While a federal judge twice has dismissed allegations by the buyer, Prime Healthcare, that she abused her office, the case deserves another look.

Kamala Devi Harris, now 54, is a fast-rising Democratic Party star. Of Indian and Jamaican descent, she’s emerged … Read More ➡

New Report Describes Dirty Union ‘Corporate Campaign’ Tactics

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 ➡

HHS, Nonprofit Group Combat Union Medicaid Dues-Skimming Schemes

Few things say “money in the bank” to a public-sector union quite like Medicaid. A proposed federal rule would end this freebie. On July 12, the Department of Health and Human Services (HHS) posted a Notice of Proposed Rulemaking to bar states from using Medicaid funds as a source of dues for unions representing home health care providers. Workers still would have the right to join a union. But non-joiners no longer would be captive of a state agency deducting dues and forwarding them to a union. Over a dozen states now engage in this practice. For organized labor, this arrangement generates around $200 million a year. That’s why unions and the states are resisting the proposed rule in the aftermath of the Supreme Court’s Janus ruling in June. A recent development in Washington State has strengthened the hand of reluctant dues payers while the department finalizes its rule.… Read More ➡