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. Contact the Law Office of Douglas Herring, Possession of Controlled Dangerous Substances, Official Misconduct Charges in New Jersey, New Jersey Criminals and Parolees Could Have Voting Rights Restored. Its typically a very trusted relationship with somebody who has been with the company a long time and has access to be able to get away with the fraud. A former officer of the UAW was implicated in allegedly defrauding the FCA National Training Center for personal gain, along with other company officials and a few international reps. We will never tolerate this type of misconduct,. The investigation included members of the attorney general's office, the Employment Development Department, the Franchise Tax Board and the Fair Political Practices Commission, which is the state's campaign finance watchdog. On October 7, 2008, Ethington plead guilty to embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS Cincinnati District Office. On May 14, 2009, in the United States District Court for the Northern District of New York, Carol Bruno, former Treasurer of AFSCME, Civil Service Employees Association Region 4 (located in Albany, N.Y.), was sentenced to ten months of home confinement, three years of probation and ordered to make total restitution in the amount of $40,451.03 for embezzling union funds. The .gov means its official. Two contractors were sentto prison and ordered to pay restitution, too. A sentence is a judicial determination of the punishment to be imposed on an individual who has plead guilty or has been convicted by a jury or judge of a criminal offense. FBI Seventeen Members of a North Carolina Racketeering 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. A former executive director of the Hawaii Painting & Decorating Contractors Association pleaded guilty in May 2016 to embezzling approximately $1,483,800 from the Hawaii Painters Trade Promotion & Charity Fund, which comes out of the hourly wages of Painters District Council 50 in Honolulu. 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. This material may not be published, broadcast, rewritten or redistributed. The sentencing follows an investigation by the OLMS Los Angeles District Office. The charge follows an investigation by the OLMS Milwaukee District Office. Have you been accused of embezzlement in a union? On October 22, 2008, Montgomery pled guilty to embezzling union funds in the amount of $509. On April 3, 2009, Welch pled guilty to one count of embezzlement from a non-profit/charitable organization between $250 and $1,000. The sentencing follows an investigation by the OLMS New York 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.. The sentencing follows an investigation by the St. Louis District Office. On April 10, 2009, Drawdy was charged with sixteen counts of embezzling union funds in the amount of $17,900. On September 29, 2008, Bentzen pled guilty to one count of bank fraud.The sentencing follows an investigation by the OLMS St. Louis District Office. This site is protected by reCAPTCHA and the Google. Drake was immediately sentenced to two years probation, ordered to pay restitution in the amount of $1,050 and fined $160. Prosecutors noted federal laws heavily regulate union finances, so the odds of discovering wrongdoing are greater than in the private sector. Bealefeld was then sentenced to three years probation. Fraud in small business in Michigan, and nationally, is chronic. Like Jimmy the Bull, the crimes dont stop with embezzlement. Copyright 2021 The Associated Press. What you find in these embezzlement cases is very trusted employees that have worked for organizations for a number of years. Federal government websites often end in .gov or .mil. Also, in addition to previously paying $5,057, Decker was also ordered to pay an additional $5,684 in restitution and a $100 special assessment. Votes often appoint many union positions. On February 3, 2009, Wiggins pled guilty to one count of embezzling union funds in the same amount. Attorney General Rob Bonta said Wednesday his office filed charges against Hernandez and her husband, Jose Moscoso, on Oct. 4. In this case, two contractors were given prison time and restitution fines. Contact the Law Office of Douglas Herring today to discuss your situation. There have been 300 unions that have discovered theft in the past two years. A locked padlock Former charter school official sent to prison for embezzling funds Vernon, Ind. On December 7, 2009, in the United States District Court for the Southern District of New York, Ira Sokol, a former school bus inspector for the New York City Department of Education, was sentenced to two years probation including six months home confinement, ordered to pay a fine of $10,000, and make restitution in the amount of $5,000 following a guilty plea to conspiracy to accept bribes in an industry receiving federal funds. On April 1, 2009, in the Criminal Court of the City of Syracuse, New York, Frederick Joseph McManus, Financial Secretary of Asbestos Workers Local 30 (Syracuse, N.Y.), was charged with grand larceny and falsifying business records associated with his actions as a union officer. 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. The Rise of Embezzlement in Unions Around the U.S. Rodriguez was convicted on two counts of mail fraud and three counts of theft of union property. Margaritis had previously made a restitution payment in the amount $12,000. When it comes to cases regarding embezzlement in unions, there is. On July 15, 2009, in the United States District Court for the Western District of Texas, Paul Hernandez, former Secretary Treasurer and former Joint Apprenticeship and Training Committee (JATC) Director of the International Brotherhood of Electrical Workers (IBEW) Local 60 (located in San Antonio, Texas), was charged in a one count indictment with embezzling funds from an employee benefit plan. Pemberton was immediately sentenced to two-years supervised probation, with judgment being deferred, was ordered to pay restitution of in the amount of $7,958, and was prohibited from serving as a union official for a period of 13 years. 2021 Criminal Enforcement Actions | U.S. Department of Labor 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. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. The indictment follows a joint investigation by the OLMS Atlanta District Office and the U.S. Brophy had previously paid over $47,172 in restitution. .usa-footer .grid-container {padding-left: 30px!important;} It should be a daily concern for business owners, said Amy Buben, a certified fraud examiner with Yeo & Yeo CPAs & Business Consultants, which works with the Michigan Small Business Association. Additionally, Roles was ordered to undergo drug and alcohol evaluation. On February 3, 2009, in the United States District Court for the Southern District of West Virginia, Donna Roles, former Financial Secretary of Steelworkers Local 14310 (located in Mt. 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. More unions are seeking to take decisive action when theres the possibility of embezzlement occurring. However, there is some discussion going around about the potential for problems that can come from a powerful union. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. .cd-main-content p, blockquote {margin-bottom:1em;} The indictment follows an investigation by the OLMS New York District Office. On May 13, 2009, in the United States District Court for the Northern District of Florida, Steve Pfeiffer, former Secretary/Treasurer of IATSE Local 60 (located in Pensacola, Fla.), pled guilty to embezzling union funds in the amount of $12,051. "We are deeply concerned about the allegations against Alma Hernndez. 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. .manual-search ul.usa-list li {max-width:100%;} 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. The charge follows an investigation by the OLMS St. Louis District Office. On April 15, 2009, Fanningpled guilty to falsifying union records by submitting fraudulent expense claims in the same amount. The charge follows and investigation by the OLMS Minneapolis Resident Office. As part of his plea, Garza admitted he awarded a $280,000 no-bid contract to Ahmed Bokaiyan. 1000 Louisiana, Ste. Regardless, it is clear that union corruption is alive and well across the country. On March 25, 2009, Caltabiano had pled guilty to embezzling $23,644.76 in union funds between 2002 and 2006. Investigators are said to be examining General Motors and Ford union training centers, as well. The indictment follows an investigation by the OLMS Nashville District Office. On June 3, 2009, in the 79th District Court of Mason County, Michigan, Kimberly Drake, former Treasurer of American Postal Workers Union (APWU) Local 3466 (located in Ludington, Mich.), pled guilty to one count of embezzlement of $200 or more but less than $1,000. Individual cases compiled by the Office of Labor-Management Standards last year cite theft and fraud ranging from $1,051 to nearly $6.5 million. 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. In February 2017, the International Longshoremens Association Local 970 had their former financial secretary received a lengthy prison sentence. The charge follows an investigation by OLMS New Orleans District Office. The stolen dues are used to buy everything from luxury goods and lavish vacations to everyday items like gas and food. On April 3, 2007, Brown was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. 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. On February 26, 2009, in the United States District Court for the Eastern District of Pennsylvania, Scott Gehringer, former President of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Local 594 (located in Bethlehem, Pa.), was sentenced to three years supervised probation, including two months of home confinement, and ordered to pay a $100 special assessment.Gehringer had previously made a restitution payment in the amount $547. The plea follows an investigation by the OLMS Phoenix Resident Investigator 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. Official websites use .gov On September 10, 2009, in the Criminal District Court Number 6, Dallas County, Texas, Janice Muriel Williams, wife of Bobby Earl Williams, former president of Amalgamated Transit Union (ATU) Local 1635 (formerly located in Dallas, Texas), pled guilty to check forgery. The sentencing follows an investigation by the OLMS San Francisco District Office. On May 13, 2009, Pfeiffer pled guilty to embezzling union funds in the amount of $12,051. On October 2, 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.), pled guilty to one count of embezzling union funds in the amount of $13,156. Embezzlement Rodriguez was sentenced to 18 months imprisonment and two years of supervised release. One Teamsters official would introduce himself as Jimmy the Bull before threatening businesses and non-profits if they didnt hire his workers for jobs that didnt even exist (because they werent needed). On April 7, 2009,in the United States District Court for the Eastern District of New York, Constantine Vafias, a contractor, was sentenced to three years probation, 300 hours of community service, forfeiture of $100,000, and ordered to pay $100,000 in restitution. The office will continue to file the appropriate criminal charges and to seek the most serious penalties, including jail time, restitution, and the forfeiture of criminal profits, that are supported by the evidence.. Now hes in prison, said Michael Galetti, a carpenterwho works in Detroit. Bruno was also ordered to enter into substance abuse counseling and attend credit counseling. The charge follows an investigation by the OLMS Cleveland District Office. Unions are experiencing a time period where they are not overly popular. 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. On May 15, 2009, Stefanik had pled guilty to one count of embezzling union funds in the same amount. Thomas was also ordered to make outstanding restitution totaling $14,324.84. 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. He was also ordered to pay restitution in the amount of $13,130 and a fine of $125. Any negative publicity is a tremendous blow to a union. pled guilty to one count of embezzling union funds totaling over $5,000. The sentencing follows an investigation by the OLMS Miami Resident Investigator Office. The plea follows an investigation by the OLMS New Orleans 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 Pittsburgh District Office. Houston Gateway Academy is a charter school located in the Gulfgate area of Houston. 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 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. 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. On November 5, 2009, in the City and County of Denver District Court, Denver, Colorado, Sherri Pemberton, former President of American Federation of Government Employees (AFGE) Local 1802 (located in Denver, Colo.), pled guilty to one count of theft. On August 11, 2009, in the United States District Court for the Western District of Arkansas, Brian Brownlee, former Vice-President of American Postal Workers Union 2nd District (located in Hot Springs, Ark. Its vital for you to protect yourself with legal help from the very beginning of this situation. Lopez was sentenced to 24 months imprisonment and two years supervised release. The plea follows an investigation by the OLMS Atlanta District Office. 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. On January 5, 2009, Johnson had pled guilty to one count of embezzling union funds in the amount of $102,519. ), pled guilty to one count of stealing union funds in the amount of $6,350. On January 30, 2009, in the United States District Court for the Eastern District of Pennsylvania, Grace Gaines, former Treasurer of American Federation of Teachers (AFT) Local 4973 (located in Philadelphia, Pa.), was sentenced to five years probation including six months home confinement with electronic monitoring, ordered to pay restitution in the amount $11,328.00 and a special assessment of $400.00.On October 24, 2008, Gaines pled guilty to a four count indictment for embezzlement of union funds in the same amount. The charge follows an investigation by theOLMSDetroit District Office. Finance experts say theft related to labor unions isa reflection of what's happening throughout society. On June 24, 2009, in the United States District Court for the Northern District of Indiana, Jeanne R. Brophy, former office manager of Iron Workers Local 379 (located in Lafayette, Ind.) All rights reserved. On September 10, 2009, in Circuit Court for the State of Maryland, City of Baltimore, Robert Bealefeld, former Financial Secretary-Treasurer of Glass Molders & Plastics Local 118 (located in Baltimore, Md. The sentencing follows a joint investigation by the OLMS Philadelphia District Office and the US Department of Labor Office of Inspector General. Theplea and charge follow an investigation by the OLMS Detroit District Office. Free Press staff writer Eric D. Lawrence contributed to this report. On April 2, 2009, in the Hennepin County District Court of Minnesota, William Thomas Brown, former Financial Secretary-Treasurer of IBEW Local 886 (located in New Hope, Minn.), was convicted of one felony count of theft over $1,000 associated with the theft of union funds in the amount of $6,467.05. Becker had previously made restitution in the amount of $6,500 in union funds. On August 10, 2009, Tungett was charged in an information with one count of destruction of union records. Of course, the shocking data from the Department of Labor only includes the cases where the theft, racketeering and other criminal activity were caught. Tulsa, OK 74119, Phone:(918) 382-2700 ), was charged with one count of larceny over $250, relating to the taking of union funds in the amount of $24,795.The charge follows an investigation by the OLMS Boston District Office and the Massachusetts State Police. 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. 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 September 15, 2008, a jury found Cook guilty of one count of embezzling union funds and one count of making a false entry in union records. ), admitted to sufficient facts to the charge of larceny over $250 by a single scheme. An indictment raises no inference of guilt. Walston, Bania and Mosley were ordered to pay restitution totaling $900,936. It also states that we are not to have any contact with Dr Walters from this date forward. Subsequently, Scott was sentenced to two years of unsupervised probation. 2023 www.freep.com. On March 24, 2009, in the District Court of Brockton, Massachusetts, Susan Elliott, former Secretary-Treasurer of Laborers Local 1162 (located in Brockton, Mass. An investigation concluded that Vafias was involved in a no-show job scheme associated with the 2 Broadway Project and Operating Engineers Local 14 (located in New York City, N.Y.). The sentencing follows an investigation by the OLMS Birmingham Resident Investigator Office. He was ordered to pay restitution in the amount of $6,824.30 and a special assessment of $100.00. On October 30, 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.), was sentenced to one year and one day imprisonment and ordered to make restitution in the amount of $46,013. On May 5, 2009, in the Criminal Court for Putnam County, Tennessee, Ronnie L. Scott, former Financial Secretary of Auto Workers Local 2409 (located in Cookeville, Tenn.), pled guilty to the charge of Theft Over $1,000. 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. The indictments follow a joint investigation by the OLMS New York District Office, the Department of Labor's Office of the Inspector General, and the FBI. On December 14, 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 sentenced to ten months incarceration, two years supervised release, and ordered to make restitution, respectively, in the amount of $45,000 and $31,000. We are upset and outraged with this notification (the day after school ends). 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. Hernandez also faces two charges of grand theft and one of perjury for her work as treasurer on a 2014 political committee supporting a state Senate candidate. The indictment follows an investigation by the OLMS Buffalo District Office. Follow her on Twitter @phoebesaid. #block-googletagmanagerheader .field { padding-bottom:0 !important; } Thecharges follow an investigation by the OLMS Detroit District Office. Report shows corruption continues to plague labor unions ), with one count of larceny over $250 for embezzling $7,696 from the two locals. Unions have a purpose to protect workers. 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. The plea follows an investigation by the OLMS Atlanta District Office. The charges follow an investigation by the OLMS Cincinnati District Office. 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. Defrauding Horizon Blue Cross Blue Shield out of 5.5 million dollars is one of the accusations against them. Public File for KBCW-TV / KBCW 44 Cable 12. While the vast majority of union officials do their work diligently and without incident, OLMS will continue to work with unions to hold accountable anyone that unlawfully exploits their union position to enrich themselves without regard to the best interests of union members, said Office of Labor-Management Standards District Director Michelle Hussar in Dallas, Texas.