WebOn April 3, 2007, Brown was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. Acosta is accused ofpermittingineligible participants to remain on the union's health care plan. The sentencing follows an investigation by the OLMS Cincinnati District Office. The charges follow an investigation by the OLMS Cincinnati District Office. These were essentially persons entrusted with another's property, such as agents, attorneys, bankers, and corporate officers. Lock Gina Balaya, public information officer with the U.S. Attorneys Office in theEastern District of Michigan, said, The U.S. Attorneys Office works closely with the Department of Labor, Federal Bureau of Investigation, Internal Revenue Service, and other law enforcement agencies to investigate and prosecute significant financial crimes committed in this district, including fraud and embezzlement. Additionally, Roles was ordered to undergo drug and alcohol evaluation. The plea follows an investigation by the OLMS Chicago District Office and the Department of Labors Office of Inspector General. The UAW has weathered many storms over the years, and through bad economic times, long strikes, relentless and vicious organizing drives. Copyright 2019 WBTV. 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. On June 19, 2009, Elsezy had pled guilty to one count of theft in a special maritime and territorial jurisdiction of the United States. A lock ( An indictment raises no inference of guilt. He said the team has implemented as many safeguards as possible, with multiple signatures required on all financial paperwork with real-time bank account reviews. 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 plea follows an investigation by the OLMS Miami Resident Office. On February 4, 2009, in the United States District Court for the Northern District of Illinois, Keith H. Cook, former Secretary Treasurer of United Transportation Union (UTU) Local 620 (located in Chicago, Ill.), was sentenced to twelve months and one day imprisonment for embezzlement of union funds, ten months imprisonment for making a false entry in union records, three years supervised release for embezzlement of union funds, and one year supervised release for making a false entry in union records (to run concurrently). Have you been accused of embezzlement in a union? On November 12, 2009, in the United States District Court for the District of Montana, Laura A. The sentencing follows an investigation by the OLMS Cleveland District Office. 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. Defrauding Horizon Blue Cross Blue Shield out of 5.5 million dollars is one of the accusations against them. On June 17, 2009, in the Circuit Court for Baltimore City, Maryland, Rhonda Holmes, former Secretary-Treasurer of Laborers Local 481 (located in Baltimore, Md. On August 5, 2009, in the United States District Court for the Northern District of California, Audrea Ann Jimenez, former secretary/bookkeeper of Carpenters Local 262 (located in San Jose, Calif.), was sentenced to two years probation and 75 hours of community service, and was ordered to pay a $25 special assessment. The sentencing follows a joint investigation by the OLMS Cleveland District Office, Department of Labor's Office of the Inspector General, and the FBI. Just to clarify, that is restitution of more than $102 million. The sentencing follows an investigation by the OLMS Cincinnati District Office. On April 17, 2009, Fortier pled guilty to a two-count information charging him with making false entries in union records. An information is a formal accusation of a crime by a government attorney rather than a Grand Jury. On February 5, 2009, Harris had pled guilty to embezzlement of union funds. Dr. Ann Walters, headmaster at - The Enquirer-Journal | Facebook Renew Dr. Ann Walters contract as Headmaster at Union Academy Like Jimmy the Bull, the crimes dont stop with embezzling .table thead th {background-color:#f1f1f1;color:#222;} The charges follow an investigation by the OLMS Cincinnati District Office. 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 sentencing follows an investigation by the OLMS New Orleans District Office. When it comes to cases regarding embezzlement in unions, there is no shortage of high profile cases to use as examples. On July 1, 2009, in the United States District Court for the Southern District of Ohio, Larry Ramsey, former Secretary-Treasurer of the Representatives and Organizers Union (located in St. Louisville, Ohio), was sentenced to three years probation, to include six months home confinement, and ordered to pay restitution in the amount of $163,222. The International Brotherhood of Boilermakers Local 154 in Pittsburgh saw its former business manager plead guilty in September 2017 to embezzling approximately $1.5 million, plus tax evasion. On October 9, 2008, Bruno was charged with embezzling union funds, between March 2004 and March 2006, in the same amount. On March 5, 2009, in the United States District Court for the Northern District of Illinois, Cassandra Mosley, former Business Agent of Teamsters Local 743 (located in Chicago, Ill.), pled guilty to one count of conspiracy to commit mail fraud and theft from a labor organization and one count of embezzlement from a labor organization.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. On February 19, 2009, an information was filed charging Jimenez with one count of false entry in or willful concealment of books and records. The indictment follows an investigation by the OLMS Detroit District Office. The sentencing follows a joint investigation by the OLMS Cleveland District Office and the Veterans Administration's Office of the Inspector General. We had our union president build a big elaborate house with materials, money and labor through our union. The hard part is that everybody liked her," Dunbar said. The charge follows and investigation by the OLMS Minneapolis Resident Office. On January 29, 2009, in the United States District Court for the Western District of Wisconsin, Carl W. White, former Treasurer of IATSE Local 251 (located in Madison, Wis.), pled guilty to embezzling union funds in the amount of $85,963.31. The plea follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the office of the Inspector General, Railroad retirement Board. The indictment follows a joint investigation by the OLMS New Orleans District Office and the Department of Labors Employee Benefits Security Administration. Brown, former Business Manager of Plumbers Local 237 (formerly located in Texarkana, Texas), was sentenced to five years probation and ordered to pay $100 mandatory special assessment and remaining restitution in the amount of $4,942. Detroit Federal prosecutors charged a local United Auto Workers official Wednesday with embezzling more than $2 million in union funds, money laundering and On May 15, 2009, in the United States District Court for the Northern District of New York, Norman Joseph Stefanik, former Treasurer of Steelworkers Local 1450 (located in Watertown, N.Y.), pled guilty to embezzling union funds. 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. Each defendantfaces up to 10 years in prison, if convicted. 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. The indictment follows an investigation by the OLMS Atlanta District Office. Following his plea, Baker paid restitution in the amount of $16,050. Frequently, money goes to buy luxury items. UAW leader charged with embezzling union funds amid contract They allegedly owe the state more than $140,000 and could face state prison time. The indictment follows a joint investigation by the OLMS Dallas District Office and the U.S. The plea and sentencing follows an investigation by the OLMS Cincinnati District Office. Law enforcement officials said less-qualified people tend to end up in union finance roles because they're often elected based on popularity rather than qualification. On October 26, 2009, in the United States District Court for the Western District of Michigan, Belinda K. Woods, former President of Communications Workers (CWA) Local 84-415 (located in Grand Rapids, Mich.), was sentenced to six months in prison and one year of supervised release, ordered to pay the remaining amount of restitution owed ($9,991.86) within 30 days of the judgment and pay a $125 special assessment. On September 2, 2011, Ford pled guilty to one count of embezzling union funds, in violation of 29 U.S.C. Copyright 2021 The Associated Press. Also, Dallas was prohibited from incurring any additional credit card debts, ordered to perform 200 hours of community service, submit to random drug testing and obtain mental health treatment. 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 April 1, 2009, in the United States District Court for the Central District of California, Rosa Miriam Della Porta, former bookkeeper of International Longshore and Warehouse Union (ILWU) Local 26 (located inLos Angeles, Calif.), was found guilty of embezzling union funds. Bania was found guilty on four counts of mail fraud and six counts of theft of union property. The plea and sentencing follows an investigation by the OLMS San Francisco District Office. On Feb. 17, a former member was sentenced to probation and ordered to pay restitution of $3,208 after pleading guilty to lying to an investigator. Thats a significant amount. According to an investigation by the Detroit Free Press, federal records reveal embezzling from union offices is endemic around the country. WebFord was ordered to pay $174,100 in restitution and a $125 special assessment. Ironically, the jobs he strong-armed were for friends and family members, some of whom werent even union members. .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. The sentencing follows an investigation by the OLMS Pittsburgh District Office. All rights reserved. On September 23, 2009, in the United States District Court for the Northern District of Ohio, Jack Hooks, former Secretary-Treasurer of AFSCME Local 11, Chapter 7010 (located in Mansfield, Ohio), was sentenced to two years probation, including six months home confinement with electronic monitoring, ordered to make full restitution, and fined $2,000. The charge follows an investigation by the OLMS Seattle District Office. 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. Ann Marie Shaffer, 57, of Livonia was sentenced toa year in prison after admitting to embezzling $101,059.56 in 2008-10. ), admitted to sufficient facts to a charge of larceny over $250. The sentencing follows an investigation by the OLMS Detroit District Office. 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.. Brown was then sentenced to three years probation and 30 days of electronic home monitoring and ordered to make restitution in an amount yet to be determined. We are upset and outraged with this notification (the day after school ends). On August 11, 2009, in the United States District Court for the District of New Jersey, Richard Klemser, former Treasurer of International Association of Machinist (IAM) Local 1041 (located in West Long Branch, N.J.), was sentenced to one year imprisonment and ordered to pay restitution in the amount of $64,000 for embezzling union funds. This petition starter stood up and took action. Two contractors were sentto prison and ordered to pay restitution, too. His trial is scheduled for March 19. The plea and sentencing follow an investigation by the OLMS Cincinnati District Office. On May 18, 2009, in the 61st District Court of Kent County, Michigan, Kevin Welch, former Financial Secretary of Communications Workers of America (CWA) Local 84-415 (located in Grand Rapids, Mich.), was sentenced to one year of incarceration (suspended), placed on probation for a period of one year, ordered to pay restitution in the amount of $2,759.55 and fined $25. An information raises no inference of guilt. 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. Dennis Williams, president of the UAW, said the 415,000-member union takes seriously issues of fraud and wrongdoing. Garza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. We have also at times withstood investigations that have tested our goodwill," he said. On February 25, 2009, Stefanik was indicted on one count of embezzling union funds in the amount of $25,808.29 between February 2004 and November 2007. The sentencing 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. The union collects roughly $65 per month from each of its members; the money is split between the local and the national office. Morana was ordered to pay restitution in the amount of $7,696.48 and an assessment of $90 and placed on supervised probation for two years, which may be terminated early when restitution is paid in full. On July 7, 2009, in the United States District Court for the Western District of Pennsylvania, Thomas Carrola, former Financial Secretary Treasurer of International Brotherhood of Electrical Workers (IBEW) Local 1919 was indicted on one count of embezzling union funds in the amount of $35,057.70 and one count of falsifying union records. He had previously made restitution in the amount of $55,866. On March 30, 2009, in the United States District Court, Southern District of Ohio, Tina Curtis, former Secretary Treasurer for the APWU Local 232 (located in Columbus, Ohio), was sentenced to three years probation, 100 hours of community service and ordered to make restitution. All Rights Reserved. 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. Fraud in small business in Michigan, and nationally, is chronic. On January 29, 2009, White pled guilty to embezzling union funds in the amount of $85,963.31. Walston, Bania and Mosley were ordered to pay restitution totaling $900,936. 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 The plea follows an investigation by OLMS New Orleans District Office. Officials say the Board of Directors does not discuss individual personnel matters and cannot comment on the circumstances around Dr. Walters departure. On February 6, 2009, Cremin pled guilty to accepting bribes in a program receiving federal funds. The sentencing follows an investigation by the OLMS Pittsburgh District Office. On March 12, 2009, in the United States District Court, Southern District of Ohio, Larry Ramsey, former secretary-treasurer of the Representatives and Organizers Union (located in St. Louisville, Ohio), pled guilty to embezzling $163,222 in union funds. Margaritis had previously made a restitution payment in the amount $12,000. On February 3, 2009, in the United States District Court for the Eastern District of Pennsylvania, Peter Rhein, former Treasurer of American Federation of Teachers (AFT) Local 3845 (located in Philadelphia, Pa.), pled guilty to a fourteen count indictment that included six counts of embezzlement of union funds totaling $43,600 and eight counts of making a false statement. On June 26, 2009, in the City Court of Geneva, New York, Bradley Steinruck, former President of Steelworkers Local 828 (located in Geneva, N.Y.), was sentenced to seven days imprisonment, five years of probation, and 200 hours of community service. 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. UAW corruption scandal deepens as feds charge 16th person after The plea follows an investigation by the OLMS San Francisco District Office. On June 9, 2008, the Department of Labor informed Kupau of his prohibition from serving as a union official for a period of 13 years. 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. On October 7, 2008, Ethington plead guilty to embezzling union funds in the same amount. On May 6, 2009, in the United States District Court for the Northern District of Illinois, Mozelle E. Means-Swanson, former President of American Postal Workers Union (APWU) Local 7139 (located in Aurora, Ill.), was indicted on one count of embezzling union funds in the amount of $4,900. ), with one count of embezzlement of union funds between August 2006 and October 2007. was charged in a one count information of Theft totaling $1,560.The charges follow an investigation by the OLMS Cincinnati District Office. 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. Local 598 (located in Huntsville, Ala.), was indicted on one count of embezzling union funds in the amount of $10,690. In The sentencings followed a joint investigation by OLMS Chicago District Office, the Department of Labor's Office of the Inspector General, and the U.S. Subsequently, Holmes was sentenced to five years in prison, suspended, five years of probation, and was ordered to pay restitution in the amount of $6,350. On December 14, 2009, in the United States District Court for the Southern District of New York, Wayne Mitchell, former President of Communication Workers of America (CWA) Local 14170 (located in New York, N.Y.), was charged with embezzling union funds in the amount of $200,000. The charge follows an investigation by the OLMS Cincinnati District Office. Postal Services Office of Inspector General. On October 31, 2008, Novak pled guilty to embezzling union funds in the amount of $47,780.89 which he repaid prior to sentencing. A former labor union president was sentenced in federal court for embezzling close to $20,000 from the union, announced Acting U.S. Attorney Clint Johnson. .manual-search-block #edit-actions--2 {order:2;} What Are Some High Profile Cases of Embezzlement in Unions? Williams was charged in a criminal information, which means a guilty plea is expected. A message for Moscoso seeking comment that was left with a worker who answered the phone listed for Moscoso's business was not immediately returned. 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. Secure .gov websites use HTTPS ), pled guilty to one count of theft in a special maritime and territorial jurisdiction of the United States. The sentencing follows an investigation by OLMS Dallas District Office, EBSA Dallas District Office, and the Department of Labors Office of Inspector General. On August 3, 2009, the United States Court of Appeals for the Eleventh Circuit ruled, in Warshauer v. Solis, that the Secretary of Labor did not act arbitrarily and capriciously in requiring a unions designated legal counsel (DLC) to report as an employer on Form LM-10 concerning potential conflict of interest payments to unions or union officials. Every penny we have comes from the 5,000 hardworking men and women, he said. 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. The plea follows an investigation by the OLMS New York District Office.