The UAW has weathered many storms over the years, and through bad economic times, long strikes, relentless and vicious organizing drives. And law enforcement warned of a growing trend at the time. Embezzlement On March 24, 2009, in the District Court of Brockton, Massachusetts, Susan Elliott, former Secretary-Treasurer of Laborers Local 1162 (located in Brockton, Mass. Finance experts say theft related to labor unions isa reflection of what's happening throughout society. Will you do the same? Richard Garza, 61, Houston, pleaded guilty Sept. 20, 2019. On July 22, 2009, in the United States District Court for the District of Nevada, Monica Peaslee, former Office Manager of Teamsters Local 533 (located in Reno, Nev.), was indicted on one count of embezzling union funds in the amount of $13,156 and one count of falsifying union records. Postal Service Office of Inspector General. As the UAW,Fiat Chrysler and federal investigators unravel a scandal over the misappropriation of millions ofdollars meant for worker training, federal records show that embezzling from union offices is endemic around the country. ), with one count of embezzling union funds during a period between August 2006 and October 2007. The plea follows an investigation by the OLMS Detroit District Office. On November 3, 2009, in the Village of Ilion (New York) Court, Raymond Watson, former Financial Secretary of Mine Workers Local 717 (located in Ilion, N.Y.), was charged with grand larceny. The plea follows an investigation by the OLMS Cincinnati District Office. Unions are experiencing a time period where they are not overly popular. On August 26, 2008, Simpson was charged with one count of embezzling union funds in the same amount. On August 26, 2009, in Cambria County (Pennsylvania) Court, Richard J. Vincent, former Treasurer of AFGE Local 3951, was sentenced to seven years probation and ordered to pay restitution in the amount of $43,694 and court costs of $900. Baker misappropriated approximately 107 strike pay checks and forged members' signatures on the union's check register for 101 checks.The plea follows an investigation by the OLMS Cincinnati District Office. On April 7, 2009, in the United States District Court for the Southern District of Ohio, Jeffrey Baker, former co-chairman of the Picket Committee for Machinists Local Lodge 1943 (located in Middletown, Ohio), was sentenced to 180 days home confinement, two years probation, and ordered to pay a $2,500 fine and a $25 special assessment. At the hearing, the court noted Garza led a double life and had a desire for taking money from others which got him into trouble and led him to his situation today. Thomas Burkhart Jr. was trusted by local union members as their president but instead abused his position to steal nearly $20,000 for his own personal use, said Acting U.S. Attorney Clint Johnson. In December 2008, Pagano pled guilty to one count of falsifying union records. The hard part is that everybody liked her," Dunbar said. On November 12, 2009, Kobe was charged in an information with one count of embezzling union funds during a period between 2005 through 2006. The sentencing follows an investigation by the OLMS Cleveland District Office. They give workers a powerful voice heard by employers. While superintendent, Garza awarded a contract to a company whose owner then sent funds back to Garza. ), admitted to sufficient facts to a charge of larceny over $250. On April 3, 2007, Brown was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. On December 17, 2009, in the United States District Court for the Western District of Louisiana, David M. Matthis, former Secretary Treasurer of American Postal Workers Union (APWU) Local 205 (located in Alexandria, La. The charge, plea and sentencing follow an investigation by the OLMS Cincinnati District Office. The arrest follows an investigation by the OLMS Miami Resident Investigator Office. It may seem like a problem thats only hitting large unions, but in fact, it happens commonly all across the country in large and small areas. The pleas follow a joint investigation of Amalgamated Transit Union Local 1181 (the primary union that represents drivers for school bus companies in New York City) as well as the New York City school bus industry by the OLMS New York District Office, Department of Labor's Office of the Inspector General, and the FBI. The indictment follows an investigation by the OLMS Detroit District Office. Local 598 (located in Huntsville, Ala.), was indicted on one count of embezzling union funds in the amount of $10,690. On December 15, 2009, in the United States District Court for the Eastern District of Michigan, Deidra Lucas, former President of American Federation of State, County, and Municipal Employees (AFSCME) Local 100 (located in Pontiac, Mich.) was indicted on four counts of embezzling union funds in the amount of $39,403.72. On May 1, 2009, in the United States District Court for the Northern District of Illinois, Thaddeus Bania, Richard Lopez and David Rodriguez, former comptroller, Secretary Treasurer and Recording Secretary, and organizer, respectively, of Teamsters Local 743 (located in Chicago, Ill.), were convicted on numerous counts arising from multiple schemes involving the locals voided October 2004 regular election of officers and a rerun election that was held in December 2004. Prosecutions of Union Officials in 2018 Unmasked Theft, Elsezy affixed the signature stamps of the President and Treasurer, altered the name of the payees in the union's accounting system, and removed checks from the union's records to conceal the true beneficiary of the funds. On February 5, 2009, in the United States District Court for the Northern District of Indiana, Jeffrey C. Harris, former Financial Secretary-Treasurer of Glass Molders and Plastics Local 285 (located in Fort Wayne, Ind.) Contact Phoebe Wall Howard:313-222-6512 or phoward@freepress.com. Separately, Moscoso was charged for unreported wages and failing to pay employment taxes for his business, LA Duct Cleaning LLC. On April 9, 2009, in the United States District Court for the Western District of Wisconsin, Carl W. White, former Treasurer of IATSE Local251 (located in Madison, Wis.), was sentenced to twelve months and one day imprisonment plus three years supervised release, and ordered to pay restitution in the amount of $96,088 and a $100 criminal assessment penalty. Her trial is scheduled for March 19. The sentence follows a joint investigation of Amalgamated Transit Union Local 1181 (the primary union that represents drivers for school bus companies in New York City) as well as the New York City school bus industry by the OLMS New York District Office, Department of Labor's Office of the Inspector General, and the FBI. Tungett was also ordered to attend a drug aftercare program, pay a $250 fine and a $25 special assessment. On Jan. 25, a former secretary treasurer of the UAW Fox Valley Area Community Action Programin Oshkosh, Wis., was sentenced toprison and ordered to pay $30,020 in restitution for embezzlement. Renew Dr. Ann Walters contract as Headmaster at Union Academy On August 10, 2009, in the United States District Court for the Eastern District of Kentucky, James Decker, former Treasurer of Independent Soft Drink Workers Union (formerly located in Burlington, Ky.), was sentenced to ten months imprisonment, two years supervised release and an yet to be determined period of probation. On October 7, 2009, in Goodhue County (Minnesota) District Court, a felony complaint was filed charging Michelle Adler, former Secretary-Treasurer of Government Security Officers Local 24 (located in Lake City, Minn.), with one count of theft of more than $1,000, but not more than $5,000. On February 3, 2009, in the United States District Court for the Eastern District of Kentucky, Christopher Ethington, former President of UAW Local 2926 (located in Shelbyville, Ky.), was sentenced to five years probation, five months of home detention, ten consecutive weekends of incarceration, ordered to make restitution of $15,100.50 and pay a $100 assessment. On August 6, 2009, in the United States District Court for the Northern District of Alabama, Herman Peoples, former Financial Secretary of Security Police and Fire Professionals, Ind. On November 23, 2009, in the United States Court for the Western District of Louisiana, an information was filed charging David Matthis, former Secretary Treasurer of American Postal Workers Union (APWU) Local 205 (located in Alexandria, La. .manual-search ul.usa-list li {max-width:100%;} Like Jimmy the Bull, the crimes dont stop with embezzlement. Drake was immediately sentenced to two years probation, ordered to pay restitution in the amount of $1,050 and fined $160. On November 17, 2009, in the District Court of Brockton, Massachusetts, Joseph J. Morana, former President of National Association of Government Employees (NAGE) SEIU Local01-86 (located in West Roxbury, Mass.) OLMS has investigated and prosecuted union leaders for embezzling more than $100 million in union dues since 2001. The plea follows an investigation by the OLMS St. Louis District Office. On August 27, 2009, in the United States District Court for the Central District of California, Alejandro Stephens, former President of Service Employees International Union (SEIU) Local 660 (located in Los Angeles, Calif.), was charged in an information with three counts of mail fraud and filing a false tax return. The charge follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the Railroad Retirement Boards Office of the Inspector General. Federal records for 2017 show a handful ofsmaller losses to UAW locals: Federal records for 2016 document these losses to UAW locals: Preventing embezzlement is nearly impossible, so decisive action must be taken when it arises, said Harley Shaiken, a professor at the University of California-Berkeley who specializes in labor and the global economy. Elsezy was also ordered to pay restitution in the amount of $44,316.58. The founder of Prim Capital Corp., who managed as much as $250 million for the National Basketball Players Association, was sentenced in June 2014 to 18 months in prison for trying to defraud the union of $3 million. On September 4, 2009, in the Huron County (Mich.) District Court, a felony complaint was filed charging Christine Pawlowski, former Financial Secretary of Auto Workers Local 812 (located in Harbor Beach, Mich.), with one count of embezzlement of $1,000 or more but less than $20,000. On November 17, 2009, in the United States District Court for the Eastern District of Wisconsin, Warren Demmin, former Secretary-Treasurer of Boilermakers Local Lodge 449 (located in Sturgeon Bay, Wis.), was indicted on four counts of embezzling union funds in the amount of $681.44. The stipulation settles a lawsuitthat the Department filed against Local 3 seeking to void the August 29, 2008 rerun election, supervised by OLMS, for the offices of two union-wide Business Agent positions.Local 3eliminated the Business Agent position that represented employees at Entenmann's Bakery thereby, according to OLMS' investigative findings, denying Entenmann's members the opportunity to run for and vote for any business agent position. On February 23, 2009, in the Superior Court of Vanderburgh County, Indiana, Michael West, President of Communications Workers of America (CWA) Local 84845 (located in Evansville, Indiana), pled guilty to one count of conversion. On June 30, 2009, Tidwell had pled guilty to one count of embezzlement of union funds in the same amount and one count of forfeiture. The plea follows an investigation by the OLMS Milwaukee District Office. Bokaiyan, 58, Houston, had also pleaded guilty for his role in the scheme and was ordered to pay $156,595 in restitution. The plea follows an investigation by the OLMS Cleveland District Office. On October 30, 2008, Steinruck had pled guilty to grand larceny in the fourth degree for taking union funds in the same amount. Sadly, fraud can destroy a companys trust, impact it financially, and in some cases, shut it right down. The following individuals have been charged with violations of United States Northern District of Oklahoma The plea follows an investigation by the OLMS Chicago District Office. Subsequently, Scott was sentenced to two years of unsupervised probation. The sentencing follows an investigation by the OLMS Dallas District Office. Elliott was ordered to perform 100 hours of community service and ordered to pay assessments and fees of $594. On February 17, 2009, Ramsey was charged with embezzling funds in the same amount. Have you been accused of embezzlement in a union? On February 3, 2009, Rhein pled guilty to a fourteen count indictment that included six counts of embezzlement of union funds totaling $43,600 and eight counts of false statements. The U.S. Department of Labor, Office of Labor-Management Standards conducted the investigation. He and his union gang (they referred to themselves as the Perry Crew) would shake down employers and pocket the payments that were supposed to go to the union benefit fund. On October 2, 2009, in the United States District Court for the Western District of Kentucky, Ray Horton, former employee of United Steelworkers Local 9443 (located in Robards, Ky.), pled guilty to mail fraud and embezzlement of union funds. On May 5, 2009, in the United States District Court for the Southern District of Alabama, Angelo Wiggins, former President of the National Alliance of Postal and Federal Employees (NAPFE) Local 408 (located in Mobile, Ala.), was sentenced to five years of probation and ordered to pay restitution in the amount of $2,269.85. The OLMS notes: As part of its effort to protect and safeguard union funds and assets, OLMS investigates possible embezzlement from unions and other violations of criminal laws. Lopez was sentenced to 24 months imprisonment and two years supervised release. Contact the Law Of Read this blog to learn more about felony offenses in New Jersey and how the courts determine the se 2023 Law Office of Douglas Herring. The thing that I think is most surprising is that a lot of small businesses dont think it can happen. On May 15, 2009, Stefanik had pled guilty to one count of embezzling union funds in the same amount. Attorneys Jeffrey A. Gallant and David D. Whipple prosecuted the case. The UAW says this illustrates that its constitutionprovides the intended checks and balancesthat essentially requiretwo keys and conspiracyto steal. The sentencing follows an investigation by the OLMS Chicago District Office. As part of his plea, Garza admitted he awarded a $280,000 no-bid contract to Ahmed Bokaiyan. On February 9, 2009, the United States District Court for the Eastern District of New York approved a stipulation ofsettlement between the Department of Labor andLocal 3 of the Bakery Workers (located in Long Island City, N.Y.). On January 27, 2009, Wiggins was charged with embezzling union funds in the same amount. Each count is a separate and distinct offense charged in an indictment or information. The sentencing follows an investigation by the OLMS Pittsburgh District Office. The sentencing follows an investigation by the OLMS Pittsburgh District Office. Union Academy is in great shape and poised to continue down the path of excellence. This sentencing and restitution order sends a clear message that there are consequences for individuals who breach the trust placed in them to be good stewards of union funds.. On December 4, 2009, in the United States District Court for the Western District of Pennsylvania, Christine S. Throckmorton, former office secretary/bookkeeper for the Hotel Employees Restaurant Employees (HERE) Local 57 (located in Pittsburgh, Pa.), pled guilty to one count of embezzlement of union funds in the amount of $9,674.95. Please enter valid email address to continue. On May 27, 2009, in the United States District Court for the District of Kansas, Daryl D. Becker, former Financial Secretary of Steelworkers Local 558 (located in McPherson, Kan.), was indicted on one count of embezzling union funds. SEIU California Union Leader Resigns Following Fraud, Embezzlement Charges October 13, 2021 / 2:43 PM / CBS San Francisco SACRAMENTO (AP) The top staff The union represents more than 700,000 workers - including nearly 60,000 Northern California workers through its Local 1021, and is politically influential, regularly donating millions to Democratic candidates. An OLMS investigation concluded that Elsezy created and cashed checks totaling $44,316.58, drawn from the unions bank account for personal use. Hope, W.Va.), was sentenced to one month of incarceration, three years supervised release, ordered to make restitution in the amount of $70,000 (of which $1,775 has already been repaid) and pay a $100 special assessment. The Detroit Free Press report said individual cases compiled by the OLMS last year cite theft and fraud ranging from $1,051 to a staggering $6.5 million. Friday, April 9, 2021 Former charter school official sent to prison for embezzling funds HOUSTON The former superintendent of Houston Gateway Academy has been Usually, its the treasurer, bookkeeper or president actions that come to light. On April 10, 2009, in the United States District Court for the Southern District of Georgia, Dianne Drawdy, former Financial Secretary of Security Police Fire Professionals Local 576 (located in Baxley, Ga.), was indicted on sixteen counts of embezzling union funds in the amount of approximately $17,900. On March 25, 2009, in the United States District Court for the Northern District of New York, Donna Caltabiano, former President of AFSCME Local 888 (located in Catskill, N.Y.), pled guilty to embezzling $23,644.76 in union funds between 2002 and 2006.The plea follows an investigation by the OLMS Buffalo District Office. The plea follows an investigation by the OLMS Detroit District Office. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Local3 agreed to hold a new election, under OLMS supervision, for the two union-wide business agent positions.The settlement follows an investigation by theOLMS New York District Office. Some explain that embezzlement is happening now because non-financial professionals are in positions handling union finances. Mike Roth, a spokesman for the union, did not answer a question about when Hernandez resigned. Embezzlement plagues union offices around U.S., records show WebDr. ), was sentenced to five years probation, with a special condition of home detention for the first six months, and ordered to pay restitution of $16,228.38 and a special assessment of $100. How to File a Complaint ), was sentenced to six months home confinement and three years probation. On December 7, 2009, in the United States District Court for the District of Arizona, Roger Wuest, former Secretary-Treasurer of Security Police and Fire Professionals (SPFPA) (located in San Bernardino, Calif.), was sentenced to one year of probation. On November 30, 2009, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment 325 (located in Duluth, Minn.), pled guilty to embezzling union funds in the amount of $16,200. Houston Gateway Academy is a charter school located in the Gulfgate area of Houston. On April 28, 2009, in the United States District Court for the Western District of Pennsylvania, Christine S. Throckmorton, former office secretary/bookkeeper for Hotel Employees Restaurant Employees Local 57 (located in Pittsburgh, Pa.), was charged with one count of embezzling union funds in the amount of $9,674.95. It was hard to believe she was stealing from us. Share sensitive information only on official, secure websites. The guilty plea follows an investigation by the OLMS Washington Distrct Office. The sentencing follows an investigation by OLMS Dallas District Office, EBSA Dallas District Office, and the Department of Labors Office of Inspector General. On November 17, 2009, in the United States District Court for the Northern District of California, Ruth R. Olson, former Financial Secretary of Amalgamated Transit Union (ATU) Local 1225 (located in Marina, Calif.), was sentenced to four years probation, 200 hours community service, and ordered to pay $12,904.56 in restitution and a $25 special assessment. The charge follows an investigation by the OLMS Cleveland District Office. On July 13, 2009, Ullum pled guilty to a one-count information charging him with causing a false statement on an ERISA record. U.S. Attorney's Office, Southern District of Texas, Former charter school official sent to prison for embezzling funds, Four co-conspirators charged with bank fraud, Dallas man heads to prison for deed fraud scheme, Former Charter School Official Sent To Prison For Embezzling Funds. 2023 Washington Policy Center All Rights Reserved Terms of Use, Mark Harmsworth talking affordable housing on the Lars Larson Show, Opinion: HB 1011 dies Keep readying for a long-term-care payroll tax starting this summer, HB 1011 dies: Keep readying for a long-term-care payroll tax starting this summer, Survivor: Legislation allowing Washington to join multistate Nurse Licensure Compact is still alive, Seattles social housing authority measure near approval with latest vote count, Elizabeth Hovde on the Lars Larson Show discussing nurse-shortage issues and policy ideas. The plea follows an investigation by the OLMS New York District Office. I think the public has a perception that theyre all greedy mobsters and these things reinforce stereotypes that theres corruption. On November 13, 2009, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment 325 (located in Duluth, Minn.), was charged in an information with one count of embezzlement of union funds during a period between 2005 through 2006. The plea and sentencing follows an investigation by the OLMS Dallas District Office. The plea and sentencing follows an investigation by the OLMS Dallas District Office. On October 29, 2009, in the United States District Court for the Southern District of Ohio, Donald Spell, former office employee for Hotel Employees & Restaurant Employees (HERE) Local 12 (formerly located in Cincinnati, Ohio), pled guilty to embezzling union funds totaling $16,422. Freeman was charged with five counts of forgery totaling $2,260; Hamer was charged with one count of forgery totaling for $749; Smith, one count of forgery totaling $2,500; Turner, five counts totaling $15,800 and Russia, twelve counts of forgery totaling $21,309. The sentencing follows an investigation by the OLMS Atlanta District Office. FBI plants bull's-eye on GM, Ford as UAW scandal widens. Its counterproductive. He was ordered to pay restitution in the amount of $6,824.30 and a special assessment of $100.00. On November 9, 2009, in the 52nd Judicial Circuit Court of Huron County, Michigan, Christine Pawlowski, former Financial Secretary of Auto Workers Local 812 (located in Harbor Beach, Mich.), was sentenced to four months in county jail, 36 months of supervised release, and ordered to pay the remaining balance of restitution owed in the amount of $7,000. Disclaimer | Sitemap | Privacy Policy. On August 13, 2009, in the United States District Court for the District of Maryland, LaRose Elsezy, former administrative assistant and bookkeeper of American Federation of Government Employees (AFGE) Local 1923 (located in Baltimore, Md. October 13, 2021 / 2:43 PM The sentencing follows an investigation by the OLMS Buffalo District Office. The indictment follows an investigation by the OLMS New York District Office. He pleaded guilty in 2016. Margaritis had previously made a restitution payment in the amount $12,000. On September 24, 2009, Wuest pled guilty to a charge of concealment or destruction of union records. We are upset and outraged with this notification (the day after school ends). Drawdy agreed to make restitution in the amount of $17,900. WebThe racketeering charges contained in the indictment are the result of Operation Wax House, an ongoing investigation into securities and mortgage fraud targeting communities in the They also said that labor unions operate on shoestring budgets and often lack resources needed to provide oversight. Thomas was also ordered to make outstanding restitution totaling $14,324.84. .agency-blurb-container .agency_blurb.background--light { padding: 0; } She is scheduled to be sentenced May 1. On December 10, 2009, in the United States District Court for the District of New Jersey, Kathleen Fonti, former President of Health Professionals and Allied Employees (HPAE) Local 5030 (located in Emerson, N.J.), pled guilty to one count of receipt of improper loans from a labor organization. The convictions follow an investigation by the OLMS Chicago District Office, the Department of Labors Office of Inspector General and the United States Postal Inspection Service. The plea follows an investigation by the OLMS Dallas District Office. Official websites use .gov Prosecutors noted federal laws heavily regulate union finances, so the odds of discovering wrongdoing are greater than in the private sector. The site is secure. On August 3, 2009, in the United States District Court for the Western District of Pennsylvania, Michael R. Rhoades, former Secretary Treasurer of the Communications Workers Local 88667 (located in Latrobe, Pa.), pled guilty to embezzling union funds. Former Labor Union President Sentenced for Embezzling Union Secure .gov websites use HTTPS The plea follows an investigation by the OLMS Pittsburgh District Office. The information follows an investigation by the OLMS San Francisco District Office. On August 4, 2009, in the United States District Court for the Northern District of Georgia, Gary Barner, former Treasurer of Steelworkers Local 518 (located in Rome, Ga.), was indicted on one count of embezzling union funds in excess of $10,000 between August 4, 2004 and September 13, 2006. The sentencing follows an investigation by the OLMS Cleveland District Office. An official website of the United States government. The plea follows an investigation by the OLMS Milwaukee District Office. The plea follows an investigation by the OLMS San Francisco District Office. Per the agreement, White agreed to restitution in the same amount, and to reimburse the local $10,125 for expenses it incurred in its internal investigation. 2021 CBS Broadcasting Inc. All Rights Reserved. The sentencing follows a joint investigation by the OLMS Chicago District Office and the Department of Labor's Office of the Inspector General. The sentencing follows an investigation by the OLMS Boston District Office. The plea follows a joint investigation by the OLMS Los Angeles District Office and the Department of Labors Office of Inspector General. On April 1, 2009, in the United States District Court for the District of Minnesota, Thomas James Martin, former Business Manager of Plumbers Local 15 (located in Minneapolis, Minn.), was denied his request for an exemption from the LMRDA Section 504 prohibition against persons convicted of certain crimes holding union office. Its vital for you to protect yourself with legal help from the very beginning of this situation. Hinerman was indicted on 65 counts of wire fraud, Boyles was indicted on 61 counts of wire fraud and 1 count of worker's compensation fraud and Cassidy was indicted on 73 counts of wire fraud. On February 19, 2009, in the United States District Court for the Northern District of California, San Jose Division, an information was filed charging Ruth R. Olson, former Financial Secretary of Amalgamated Transit Union (ATU) Local 1225 (located in Marina, Calif.), with one count of false entry in or willful concealment of books and records.
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