On Oct. 31, a former secretary-treasurer pleaded guilty to embezzling $37,197 in Rushville, Ind. ), pled guilty to one count of embezzling union funds in the amount of $7,731.54. They were charged with five felony counts of filing false tax returns, allegedly under reporting their income by about $1.4 million over five years, according to the complaint. Thecharges follow an investigation by the OLMS Detroit District Office. The stolen dues are used to buy everything from luxury goods and lavish vacations to everyday items like gas and food. An indictment is a formal accusation or charge based on a finding by a Grand Jury that it is likely that the person charged committed the criminal offense described in the indictment and is the means by which an accused person (defendant) is brought to trial. On July 1, 2009, Wheeler had pled guilty to one count of embezzling union funds. /*-->*/. Under terms of a plea deal with federal prosecutors, Edmunds could be sentenced to up to 57 months in prison on charges of money laundering and embezzlement. Tulsa, OK 74119, Phone:(918) 382-2700 OLMS has investigated and prosecuted union leaders for embezzling more than $100 million in union dues since 2001. Itsfounding pastor is accused of stealing up to $5 million afteraudits and reviewsin the summer of 2017. The plea follows an investigation by the OLMS Pittsburgh District Office. On February 27, 2009, in the United States District Court for the Eastern District of Wisconsin, Mary Schaeuble, Chair of the Insurance Committee of Steelworkers Local 20 (located in Kaukauna, Wis.), was sentenced to two years probation and ordered to pay a $200 special assessment and to make restitution in the amount of $4,000.On November 25, 2008, Schaeuble pled guilty to two counts of embezzling union funds in the amount of $730.94.The sentencing follows an investigation by the OLMS Milwaukee District Office. The thing that I think is most surprising is that a lot of small businesses dont think it can happen. On May 13, 2009, Pfeiffer pled guilty to embezzling union funds in the amount of $12,051. The sentencing follows an investigation by the OLMS Cleveland District Office. A conviction is a judgment based on a jurys verdict, judges finding, or the defendants admission that the defendant is guilty of the crime charged. The plea follows an investigation by the OLMS Chicago District Office, the Department of Labor's Office of Inspector General and the United States Postal Inspection Service. The plea follows an investigation by the OLMS Cleveland District Office. On Sept. 21, a former local president was sentenced to prison after diverting more than $129,723 in union money for personal use in Danville, Ill. Alma Hernandez served as executive director for SEIU California since 2016. On December 7, 2009, in the Circuit Court of Marion County, Kentucky, Mark Owens, former Financial Secretary of Machinists Local Lodge 366W (located in Lebanon, Ky.), was charged with theft by unlawful taking in the amount of $200.00. ), were indicted on a combined total of 199 counts of wire fraud. In addition to the UAW, federal records show the biggest embezzlement cases resulting in criminal charges during the past decade have unfolded in the court system over the past threeyears: Embezzlement cases are often discovered by unions or during routine audits. Hundreds of union officials have been indicted for other crimes that victimize union members, such as filing false reports, keeping false records, destruction of records, extortionate picketing and deprivation of rights by violence. The plea follows an investigation by the OLMS San Francisco District Office. On April 1, 2003, Martin was convicted of mail fraud and theft from a labor organization. Bruno was also ordered to enter into substance abuse counseling and attend credit counseling. A boilermakers union official had a taste for luxury goods, but most of the stealing was small-scale. In conclusion, the first thing that you need to do is to seek legal counsel thats familiar with the prosecution of this crime. According to the Board Chair for Union Academy, Dr. Ann Walters contract expires at the end of the month. On December 16, 2009, in the United States District Court for the Eastern District of Michigan, an information was filed charging Brenda Bywater, former Treasurer of American Federation of State, County, and Municipal Employees(AFSCME)Local 100 (located in Pontiac, Mich.), with one count ofmaking false entries in union records. Richard Garza, 61, Houston, pleaded guilty Sept. 20, 2019. On July 2, 2009, in the United States District Court for the Northern District of Ohio, an information was filed charging Michael Kelly, former Secretary Treasurer for the United Transportation Union (UTU) Local 586 (located in Willard, Ohio) with one count of embezzling union funds in the amount of $97,970.71. ), was sentenced to five years of probation, which included six months of home confinement, and ordered to pay restitution in the amount of $24,085.56 for the charge of embezzlement of union funds. The plea follows an investigation by the OLMS Cleveland District Office. Two UAW incidents uncovered in 2017, one in Michigan and the other in New Jersey,exceedthe $1-million mark, among the biggest labor theft cases in a decade. Its just access to money., He added, "These people view themselves as overworked and underpaid. On Dec. 5, a former president in Danville, Ill., was indicted for embezzling $19,482. These were essentially persons entrusted with another's property, such as agents, attorneys, bankers, and corporate officers. Elliott was ordered to perform 100 hours of community service and ordered to pay assessments and fees of $594. The sentencing follows an investigation by the OLMS Buffalo District Office. Sergio Acosta oversawthe benefit plan for UAW Local 2326 and, authorities say,conspired with Lawrence Ackerman, who is accused of creating two shell companies to market health insurance to about 700 ineligible participants from across the country, New Jersey Advance Media reported. Assistant U.S. The plea follows an investigation by the OLMS New York District Office. This accusation is a dire situation that could result in the loss of your job, the potential of having a difficult time finding a job in the future, fines, and even a prison sentence. 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. Postal Services Office of Inspector General. On October 9, 2009, Spell had been charged with embezzling funds in the same amount. The sentencing follows an investigation by the OLMS Milwaukee District Office. What you find in these embezzlement cases is very trusted employees that have worked for organizations for a number of years. 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 Middle District of Florida, Tarris D. Dallas, former Financial Secretary-Treasurer of United Steelworkers Local 9-415 (located in Fernandina Beach, Fla.), pled guilty to one count of embezzling union funds in the amount of approximately $105,000.The plea follows an investigation by the OLMS Atlanta District Office. In February 2017, the business manager of Washington, D.C.s Laborers Local 657 was sentenced to four years in prison. In December 2008, Pagano pled guilty to one count of falsifying union records. The AEA is the local union for Arlington public school educators. Casesinvolved unions representing nurses, aerospace engineers, firefighters, teachers, film and TV artists, air traffic controllers, musicians, bus inspectors, bakery workers, roofers, postal workers, machinists, ironworkers,steelworkers, dairy workers, plasterers, train operators, plumbers, stagehands, engineers, electricians, heat insulators, missile range workers andbricklayers. FREE Consultations 24/7 Availability And its used effectively to damage unions politically.. On June 17, 2009, in the United States District Court for the Western District of Washington, Fawne Lei-Petersen, former office manager of the International Union of Painters and Allied Trades (IUPAT) Local 300 (located in Seattle, Wash.), was charged with, embezzling, stealing and unlawfully converting to her own personal use moneys of a labor organization in the amount of $86,118. The charge follows an investigation by the OLMS Pittsburgh District Office. On August 10, 2009, Tungett was charged in an information with one count of destruction of union records. Williams was sentenced to twelve months probation and ordered to pay restitution in the amount of $75.00, a fine of $1000, and court costs. Each defendantfaces up to 10 years in prison, if convicted. The plea follows an investigation by the OLMS Detroit District Office. In November 2002, Kupau was convicted of money laundering. On August 24, 2009, in the United States District Court for the Northern District of Ohio, Steven Thomas, former Business Manager for Laborers Local 500 (located in Toledo, Ohio) was sentenced to five years probation with three months of location monitoring and 250 hours of community service. "She was personable and bubbly. Theplea and charge follow an investigation by the OLMS Detroit District Office. On August 6, 2008, ORourke had been charged in a two-count indictment with embezzling union funds in the amount of $23,057 and falsifying union records. 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. ), admitted to sufficient facts to a charge of larceny over $250. The .gov means its official. Stephens allegedly received $52,000 in consulting payments, issued to himself and three other individuals, from the Los Angeles County Federation of Labor's Voter Improvement Program from February 2004 through April 2005, and filed a false 2004 income tax return by not reporting $35,000 in "other income" related to the payments. On September 10, 2009, in the United States District Court for the District of New Jersey, Joseph Moon Jr., former President of Amalgamated Transit Union (ATU) Local 1626, pled guilty to a criminal information for one count of improper loans from a labor organization. WebFord was ordered to pay $174,100 in restitution and a $125 special assessment. Copyright 2021 The Associated Press. On September 4, 2009, in the United States District Court for the Southern District of Illinois, Don C. Padgett, former secretary treasurer of the American Federation of Government Employees (AFGE) Local 1304 (located in Greenville, Ill.), was sentenced to 21 months in prison for one count of mail fraud relating to an embezzlement of $185,042. This is both externally from the public and internally from members. The sentencing follows an investigation by the OLMS Cincinnati District Office. On August 27, 2009, in the United States District Court for the Southern District of Ohio, Terry Hacker, former Secretary-Treasurer of Hotel Employees Restaurant Employees (HERE) Local 12 (located in Cincinnati, Ohio), pled guilty to one count of embezzling union funds in the amount of $38,146. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} The incident created distrust that remains years later. The charge follows and investigation by the OLMS Minneapolis Resident Office. On September 26, 2008, Luna was charged with embezzling union funds in the same amount from November 2004 through June 2005. An agency within the U.S. Department of Labor, 200 Constitution AveNW On September 2, 2009, in the United States District Court for the Eastern District of Arkansas, Lance Hinerman, Steven Boyles, Daniel Cassidy, current President, former Vice President and former Clerk Craft Director, respectively, of American Postal Workers Union (APWU) Central Arkansas Area Local 189 (located in North Little Rock, Ark. On April 17, 2009, in the United States District Court for the Western District of Pennsylvania, Donna J. Simpson, former secretary for the Steelworkers District 10 office (located in North Versailles, Pa.), pled guilty to one count of embezzling union funds in the amount of $87,823.18. 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. While superintendent, Garza awarded a contract to a company whose owner then sent funds back to Garza. 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. ), was indicted on one count of embezzling $18,100 between February 2004 and September 2008. Lopez was sentenced to 24 months imprisonment and two years supervised release. The indictment follows an investigation by the OLMS Chicago District Office and Department of Labors Office of Inspector General. Fonti was then sentenced to two years supervised probation and fined $1,000. On August 11, 2009, in the United States District Court for the District of South Carolina, Christina Geathers, former Financial Secretary-Treasurer of Steelworkers Local 357 (located in Georgetown, S.C.), pled guilty to one count of embezzling union funds totaling approximately $36,865.18. The charges follow a joint investigation by the OLMS Los Angeles District Office, Department of Labor's Office of the Inspector General, the FBI, and the IRS. On June 15, 2009, in the United States District Court for the Western District of New York, Michael Pagano, former Business Agent /Secretary-Treasurer of Roofers, Local 74 (located in West Seneca, N.Y.), was sentenced to one year probation and order to make full restitution of $9,264. Follow her on Twitter @phoebesaid. Another group hit hard by embezzlement are churches. On August 18, 2009, in the United States District Court for the Northern District of New York Norma Fanning, former Treasurer of Steelworkers Local 503 (located in Ogdensburg, N.Y.) was sentenced to one-year probation, 100 hours of community service and fined $1,000. Copyright 2019 WBTV. 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. Federal government websites often end in .gov or .mil. The article highlights some examples, but a more extensive list can be found on the Labor Racket Weekly, a recurring and regularly updated list of the union officials around the country who have been charged, or found guilty, of stealing from the hard-working members who pay dues. Monica Morgan, wifeof Holiefield,was charged in July 2017 with tax evasion and conspiracy stemming from her familys receipt of more than $1.2 million from the former vice president of FCA between 2009 and 2014. In The sentencing follows an investigation by the OLMS Detroit District Office. On September 24, 2009, in the United States District Court for the District of Arizona, Roger Wuest, formerSecretary-Treasurer of Security Police and Fire Professionals Union Officer, Ind. A former financial secretary for the International Longshoremens Association Local 970 in Norfolk, Va., was sentenced in February 2017 to 41 months in prison after stealing $1,072,669 from the union by making cash withdrawals and using money to buy gas, food, clothing, shoes, toys, entertainment and home improvement supplies. On June 29, 2009, in the United States District Court for the Western District of Pennsylvania, Anne ORourke, former office secretary of Roofers Local 37 (located in Pittsburgh, Pa.), pled guilty to a two-count indictment for embezzling union funds in the amount of $23,057 and falsifying union records. On November 16, 2009, in the United States District Court for the Western District of Pennsylvania, Michael Rhoades, former Secretary Treasurer of Communications Workers The plea follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the office of the Inspector General, Railroad retirement Board. 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. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } The sentencing follows an investigation by the OLMS Dallas District Office. The sentencing follows an investigation by the OLMS Cincinnati District Office. The pleas follow a joint investigation by the OLMS New York District Office, Department of Labor's Office of the Inspector General, and the FBI. Postal Service Office of Inspector General. Jimmy the Bull and the Perry Crew also assaulted and intimidated rank and file union members who were critical of union leadership and physically blocked them from the union hall to keep them from voting on a contract proposal with a major employer. On May 1, 2009, Hooks pled guilty to embezzling $15,192 in union funds. On January 5, 2009, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Lodge 687 (located in Charleston Heights, S.C.), pled guilty to one count of embezzling union funds in the amount of $102,519. .cd-main-content p, blockquote {margin-bottom:1em;} Prosecutions of Union Officials in 2018 Unmasked Theft, OLMS field offices can provide guidance on how to file a complaint, including guidance regarding any additional steps you may need to take before filing a complaint and your ability to file an anonymous complaint. 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 sentencing follows an investigation by the OLMS Birmingham Resident Investigator Office. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. 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. Will you do the same? The case follows an investigation by the OLMS Honolulu Resident Investigator Office. On February 3, 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.), pled guilty to a one count of embezzling union funds in the amount of $2,269.85. On April 3, 2009, in the United States District Court for the Western District of Kentucky, Richard M. Clark, former Secretary Treasurer of Letter Carriers Branch 468 (located in Bowling Green, Ky.), was charged with embezzling $18,680 in union funds and concealing and destroying union records. 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. In this case, two contractors were given prison time and restitution fines. TULSA, Okla. A man who attempted to fraudulently acquire more than $92,000 worth of commercial products from a California-based company pleaded guilty in federal court, announced U.S. Attorney Clint TULSA, Okla. A former chief financial officer for a company with offices in Oklahoma pleaded guilty in federal court after failing to pay over to the IRS $3.6 million TULSA, Okla. United States Attorney Clint Johnson today announced the results of the January 2023 Federal Grand Jury A. The sentencing follows an investigation by the OLMS Buffalo District Office. 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 Ingham County DA made headlines for prosecuting 53 embezzlement cases in 2014, up from 35 cases the year prior, according to the Lansing State Journal. Subsequently, Scott was sentenced to two years of unsupervised probation. On June 3, 2009, in the United States District Court for the Southern District of Indiana, Keith W. Hart, Jr., former Financial Secretary of Bakery Workers (BCTGM) Local 315G (formerly located in Mt. 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. On June 1, 2009, in the United States District Court for the Southern District of New York, Nicholas Maddalone and Paul Maddalone, former Executive Board Members of Amalgamated Transit Union Local 1181 (the primary union that represents school bus drivers in New York City), were indicted on charges of extortion, unlawful labor payments, and participation in a conspiracy, for allegedly using their union positions to obtain cash bribes from employers. ) or https:// means youve safely connected to the .gov website. The sentencing follows an investigation by the OLMS Milwaukee District Office. On September 15, 2009, in the United States District Court for the Northern District of Georgia, Sonia McGuire, former treasurer of American Postal Workers Union (APWU) Local 3434 located in Decatur, Ga.), was indicted for embezzling union funds, between January 15, 2005 and April 28, 2008, in excess of $15,000. The plea follows an investigation by the OLMS Detroit District Office. Williams was sentenced to twelve months deferred probation and ordered to pay restitution in the amount of $75, a fine of $1,000, and court costs of $194.00. The charge follows an investigation by the OLMS Detroit District Office. On January 30, 2009, in the United States District Court for the Eastern District of Wisconsin, Eugene Huss, former Area Vice President of Steelworkers Local 20 (located in Kaukauna, Wis.), was ordered to make restitution in the amount of $2,000 and pay a $100 fine. Any negative publicity is a tremendous blow to a union. The sentencing follows an investigation by the OLMS Cincinnati District Office. Fanning had previously made restitution in the amount of $6,342.15. Former UAW President Dennis Williams was charged with embezzlement and defrauding the government as part of a multiyear corruption probe into one of America's Rodriguez was convicted on two counts of mail fraud and three counts of theft of union property. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} On May 6, 2009, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Union Lodge 687 (located in Charleston Heights, S.C.), was sentenced to 12 months and 1 day imprisonment, three years supervised release and was ordered to pay a $100 fine. An OLMS investigation concluded that Elsezy created and cashed checks, drawn from the unions bank account, for personal use, 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. This field is for validation purposes and should be left unchanged. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. (CWA) Local 88667 (located in Latrobe, Pa.), was sentenced to 5 years probation and was ordered to pay restitution in the amount of $8,001.86 and a special assessment of $100. The plea follows an investigation by OLMS New Orleans District Office. The plea and sentencing follows an investigation by the OLMS Dallas District Office. On January 29, 2009, White pled guilty to embezzling union funds in the amount of $85,963.31. On February 11, 2009, in the United States District Court for the District of South Carolina, Christina Geathers, former Financial Secretary/Treasurer ofSteelworkers Local 357 (located in Georgetown, S.C.), was indicted on one count of embezzling union funds totaling approximately $36,865 and two counts of filing false LM-3 reports. On March 25, 2009, Dallas pled guilty to one count of embezzling union funds in the same amount. The sentencing follows a joint investigation by the OLMS Cleveland District Office and the Veterans Administration's Office of the Inspector General. Contact Phoebe Wall Howard:313-222-6512 or phoward@freepress.com. A .gov website belongs to an official government organization in the United States. On October 22, 2009, in the United States District Court for the Eastern District of Wisconsin, an information was filed charging Timmy R. Peltier, former Secretary Treasurer of Independent Loomis Security Employees Union (located in Cudahy, Wis.), with making a false statement or representation of a material fact on the union's 2006 and 2007 annual financial reports. On July 22, 2009, in the United States District Court for the Western District of Pennsylvania, Donna J. Simpson, former secretary of Steelworkers District 10 (located in North Versailles, Pa.), was sentenced to six months incarceration, six months home detention, two years supervised release and ordered to pay restitution of $84,065.14. The defendant is now a convicted felon and will pay back Steelworkers Local 145 for the funds he embezzled. Walston, Bania and Mosley were ordered to pay restitution totaling $900,936. 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. 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 Garza then used some of the funds to purchase a New Nissan Armada SUV and a condominium located on Gentryside Drive in Houston.