The indictments follow an investigation by the OLMS Atlanta District Office. The admission follows an investigation bythe OLMS Boston District Office and the Massachusetts State Police. The sentencing follows an investigation by the OLMS Cleveland District 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). 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. 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. The Office of Labor-Management Standards (OLMS) opened an investigation after an internal audit by Steelworkers Local 145 revealed a loss of union funds. Subsequently, ORourke was sentenced to two years probation on each count, ordered to make remaining restitution in the amount of $6,059.45, and pay a special assessment of $125. In just the past two years, more than 300 union locations have discovered theft, often resulting in more than one person charged in each instance, the records show. 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 sentencing follows an investigation by the OLMS Miami Resident Investigator Office. The sentencing follows an investigation by the OLMS Pittsburgh District Office. Officer at TXDOT Credit Union in Wichita Falls, Texas Sentenced to Like Jimmy the Bull, the crimes dont stop with embezzlement. 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 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. Have a question about Government Services? On May 2, 2003, the Department of Labor informed Martin of his prohibition from serving as a union official for a period of 13 years. The criminal charge is punishable by up to five years in federal prison and a In June 2014 to the founder of Prim Capital Corp was sentenced to 18 months. On April 3, 2007, Brown was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. A .gov website belongs to an official government organization in the United States. On May 27, 2009, in the United States District Court for the Western District of Missouri, Wendy Bentzen, former information/financial manager for the American Federation of State, County and Municipal Employees (AFSCME) Council 72 (located in Jefferson City, Mo. On September 2, 2009, in the United States District Court for the Northern District of Iowa, Thomas Jon Witham, former Financial Secretary of the International Brotherhood of Boilermakers Local 106-D (located in Mason City, Iowa), pled guilty to one count of embezzlement of union funds in the amount of $52,037.19. On October 29, 2009, in the County Court of Hale County, Texas, Rudy Villa Jr., former Treasurer of American Federation of Government Employees (AFGE) Local 2771 (located in Plainview, Texas), was indicted on felony theft charges. The sentencing follows an investigation by the OLMS Buffalo District Office. On April 23, 2008, Williams was indicted on one count of forgery totaling $1,431. The sentencing follows an investigation by the OLMS Detroit District Office. 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. The charge, plea and sentencing follow an investigation by the OLMS Cincinnati District Office. and NAGE -SEIU Local 01-25 (located in Brockton, Mass. The sentencing follows an investigation by the OLMS Cincinnati District Office. 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. Thomas was also ordered to make outstanding restitution totaling $14,324.84. In Detroit, four defendantsremain in the spotlight of theUAW-Fiat Chrysler (FCA) case: Jerome Durden, a former financial analyst incorporate accounting at Fiat Chryslerand former Controller of the UAW-Chrysler National Training Center, pleaded guiltyin August 2017 after preparing and filing tax returns that concealed millions of dollars in prohibited payments directed to others in 2009-15. On January 29, 2009, in the United States District Court for the Southern District of Ohio, Rebecca Montgomery, former bookkeeper/office secretary for the Machinist Eastern Regional Office (located in Cincinnati, Ohio), was sentenced to one year probation, fined $1,000 and ordered to pay a special assessment fee of $100. 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,. 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. In December 2008, Pagano pled guilty to one count of falsifying union records. On March 19, 2009, in the United States District Court for the Eastern District of Kentucky, James A. Decker, former Treasurer of Independent Soft Drink Workers Union (formerly located in Burlington, Ky.), pled guilty to embezzling union funds. The sentencing follows an investigation by the OLMS Atlanta District Office. Bania was sentenced to 40 months imprisonment and two years supervised release. The sentencing and plea follow an investigation by the OLMS Detroit District Office. On April 15, 2009, in the United States District Court for the Western District of Michigan, Belinda K. Woods, former President of Communications Workers Local 84-415 (located in Grand Rapids, Mich.), was indicted on one count of embezzling union funds in the amount of $10,988.86 and one count of falsifying union records. DETROIT (AP) Members of the United Auto Workers union appeared on Friday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials. 110 W. 7th Street
He was also ordered to pay restitution in the amount of $13,130 and a fine of $125. On May 13, 2009, inthe 79th District Court of Mason County, Michigan, Kimberly Drake, former Treasurer of American Postal Workers Union (APWU) Local 3466 (located in Ludington, Mich.), was charged with one count of forgery and one count of embezzlement of $1,000 or more but less than $20,000. Fanning had previously made restitution in the amount of $6,342.15. On February 17, 2009, Ortiz pled guilty to extorting and accepting bribes in a program receiving federal funds. On November 16, 2009, in the United States District Court for the Western District of Pennsylvania, Michael Rhoades, former Secretary Treasurer of Communications Workers Many times, the embezzlement has been going on for years before discovery. On April 2, 2009, in the United States District Court for the District of Hawaii, Oliver Kupau III, former lead field representative of Laborers Local 368 (located in Honolulu, Hawaii), was denied his request for an exemption from the LMRDA Section 504 prohibition against persons convicted of certain crimes holding union office or employment. The sentencing follows an investigation by the OLMS Cincinnati 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. embezzling @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} 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. On September 23, 2008, Gehringer pled guilty to a two-count indictment for aiding and abetting in the embezzlement of union funds and embezzlement of union funds. Andy Dunbar, a union steward for electricians at Cobo Center, said he went to federal court and watched as dues-paying members urged the judge to punish a clerk who embezzled during the economic downturn. Often, this situations discovery is through a routine audit, or someone sees a discrepancy in the accounts when the person is on vacation or has left the position. Embezzlement An OLMS investigation concluded that Baker misappropriated approximately 107 strike pay checks and forged members signatures on the unions check register for 101 checks. An indictment raises no inference of guilt. ), with one count of embezzlement of union funds between August 2006 and October 2007. The charges follow an investigation by the OLMS San Francisco District Office and the Department of Labors Office of Inspector General. Getzen had previously made restitution in the amount of $7,012. The indictment follows an investigation by the OLMS Milwaukee District Office. 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. 609-566-9686. 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. The plea follows an investigation by the OLMS Detroit District Office. 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. On June 17, 2009, in the United States District Court for the District of New Jersey, Shawn Clark, former Business Agent of Carpenters Local 455 (located in Somerville, N.J.), was indicted on sixteen counts of embezzling union funds in excess of $85,000 and conspiracy to improperly spend union funds for his own personal use and the use of others during the approximate period of December 2000 through December 2007. Alphons Iacobelli, formervice president at FCA, was charged in July 2017 with conspiracy and delivering more than $1.2 million in prohibited payments and things of value to the late General Holiefield, former vice president of the UAW, Holiefield's wife and other UAW officials. The sentencing follows an investigation by the OLMS Chicago District Office. On February 5, 2009, Harris had pled guilty to embezzlement of union funds. 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. The charge follows an investigation by the OLMS Miami Resident Investigator Office. The thing that I think is most surprising is that a lot of small businesses dont think it can happen. In February 2017, the business manager of Washington, D.C.s Laborers Local 657 was sentenced to four years in prison. The plea and sentencing 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. 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. Its counterproductive. On April 7, 2009, Elsezy was indicted on one count of theft within a special maritime and territorial jurisdiction of the United States and one count of aiding and abetting. 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. 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. She is UA family to us and we want her to remain as Headmaster leading our school as she has been monumental in all UA has achieved over the last several years. Harris agreed to make restitution in the same amount.The plea follows an investigation by the OLMS Chicago District Office. On January 27, 2009, Wiggins was charged with embezzling union funds in the same amount. WebEmbezzlement was created by the English legislature, which designated specific persons who might be liable for the offense. The sentencing follows a joint investigation by the OLMS Cleveland District Office, Department of Labor's Office of the Inspector General, and the FBI. ), pled guilty to one count of embezzling union funds in the amount of $7,731.54. 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. / CBS San Francisco. The guilty plea follows an investigation by the OLMS Washington Distrct Office. (located in Phoenix, Ariz.), pled guilty to one count of willful concealment and destruction of required union records. 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). The plea follows an investigation by the OLMS Cleveland District Office. 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 August 10, 2009, Tungett was charged in an information with one count of destruction of union records. Lopez was sentenced to 24 months imprisonment and two years supervised release. On September 10, 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), pled guilty to conspiracy to commit extortion for participation in a scheme, along with other union officials, to use their union positions and the fear of economic harm to obtain cash bribes from employers. Shingler was charged with taking union funds in the amount of $2,572. In 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.. The sentencing follows an investigation by the OLMS San Francisco District Office. The sentencing follows an investigation by the OLMS St. Louis District Office. U.S. Attorney's Office, Northern District of Oklahoma, Former Labor Union President Sentenced for Embezzling Union Funds, Bixby Man Pleads Guilty to Fraudulently Acquiring Almost $28,000 Worth of Commercial Products from a California Company, Former Chief Financial Officer Pleads Guilty for Failing to Pay Over $3.6M in Employee Tax Withholdings and for Pocketing $130,000 from his Employers Bank Account, Federal Grand Jury A Indictments Announced- January 2023, Former Labor Union President Sentenced For Embezzling Union Funds. Federal government websites often end in .gov or .mil. The case was continued without a finding for two years, pending the successful completion of two years supervised probation. Two contractors were sentto prison and ordered to pay restitution, too. The indictment also included a forfeiture allegation in the amount of $1,000,000. An audit revealed Garza paid three checks totaling approximately $252,757 to Hot Rod Systems before it completed any work. The indictment follows an investigation by the OLMS Birmingham Resident Investigator Office. WebDr. On November 18, 2009, in the United States District Court for the Northern District of Georgia, Sonia McGuire, former-treasurer of America Postal Workers Union, Local 3434, (Decatur, Ga.), plead guilty to one count of embezzlement of union funds in the amount of $16,023.12. 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. The sentencing follows an investigation by the OLMS New Orleans District Office. 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. On February 17, 2009, Ramsey was charged with embezzling funds in the same amount. ), was indicted on one count of embezzling $18,100 between February 2004 and September 2008. 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 plea follows an investigation by the OLMS San Francisco District Office. All orders for restitution payments are to be paid jointly and severally. Its just access to money., He added, "These people view themselves as overworked and underpaid. 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. Scandal just reinforces stereotypes about unions. As a result, strict regulations regarding financials and audits can help discover this type of crime early on in the process before it becomes such a large issue to handle. The Labor Department records show that union theft happens in big cities and tiny towns in all corners of the country. Full restitution was ordered following release from incarceration. On December 8, 2009, in the United States District Court for the Northern District of Iowa, Thomas Jon Witham, former Financial Secretary of the International Brotherhood of Boilermakers Local 106-D (located in Mason City, Iowa) was sentenced to 21 months in prison for one count of embezzlement of union funds in the amount of $52,037.19. 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.). A .gov website belongs to an official government organization in the United States. On November 20, 2008, Sargent pled guilty to one count of larceny within the special maritime and territorial jurisdiction of the United States. The union collects roughly $65 per month from each of its members; the money is split between the local and the national office. When it comes to cases regarding embezzlement in unions, there is no shortage of high profile cases to use as examples. On July 31, 2009, in the United States District Court for the Northern District of Florida, Stephen J. Pfeiffer, former Secretary Treasurer of IATSE Local 60 (located in Pensacola, Fla.), was sentenced to thirteen months imprisonment, to run consecutively to the yet to be imposed sentence on state charges, and three years of probation. 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 sentencing follows a joint investigation by the OLMS Chicago District Office and the Department of Labor's Office of the Inspector General. The case follows an investigation by the OLMS Minneapolis Resident Investigator Office. What Are Some High Profile Cases of Embezzlement in Unions? Second ex-UAW president charged with embezzling union funds It also states that we are not to have any contact with Dr Walters from this date forward. An information is a formal accusation of a crime by a government attorney rather than a Grand Jury. UNION COUNTY, N.C. (WBTV) - Officials say the headmaster at Union Academy charter school will not return after her contract expires at the end of June. On February 12, 2009, in the United States District Court for the Western District of Michigan, Kenneth L. Holman, former Secretary-Treasurer of Retail, Wholesale Department Store Union (RWDSU) Local 665 (located in Ishpeming, Mich.), pled guilty to making a false statement or representation of a material fact on the annual financial report filed by Local 665. Teachers, nurses, firefighters, bakery workers, dairy workers, train operators, plumbers, steelworkers, and more have seen embezzlement cases. ), was sentenced to three years probation and ordered to make restitution in the amount of $5,048. Texas largest charter school network ousted two of its top leaders and is working with authorities after a forensic review revealed some administrators used school The sentencing follows an investigation by the OLMS New York District Office, the Department of Labors Office of the Inspector General and the FBI. The charge follows an investigation by the OLMS Milwaukee District Office. 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. In the other multimillion-dollar case, charges were filed on Jan. 9, 2017, againsta former UAW president in New Jersey accused of hatching a scheme with a health insurance broker tosteal $1 million from the unions self-insured health planand defraud Horizon Blue Cross Blue Shield of approximately $5.5million. Share sensitive information only on official, secure websites. The admission follows and investigation by the OLMS Boston District Office. Jimmy the Bull and the Perry Crew were ultimately found guilty of extortion and racketeering, joining the ranks of hundreds of union leaders who have been found guilty of a myriad of crimes against their union brothers and sisters. 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. FREE Consultations 24/7 Availability On March 2, 2009, in the United States District Court for the Western District of Michigan, Kenneth L. Holman, former Secretary-Treasurer of Retail, Wholesale Department Store Union (RWDSU) Local 665 (located in Ishpeming, Mich.), was sentenced to pay restitution in the amount of $2,798.64 and a $25 special assessment.On February 12, 2009, Holman pled guilty to one count of making a false statement or representation of material fact on an annual financial report filed by Local 665.The sentencing follows an investigation by the OLMS Detroit District Office. On July 8, 2009, Horton was charged with mail fraud and embezzlement of union funds in the amount of $19,924. In conclusion, the first thing that you need to do is to seek legal counsel thats familiar with the prosecution of this crime. (Lead Investigator Andrea Welhouse). On January 14, 2009, Baker pled guilty to one count of making a false entry in a union record and made restitution in the amount of $16,050. On April 3, 2009, Welch pled guilty to one count of embezzlement from a non-profit/charitable organization between $250 and $1,000. 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. ), pled guilty to one count of embezzling union funds in the amount of $7,468.19. On March 27, 2009, in the United States District Court for the Northern District of Florida, Glen Gard, former Secretary-Treasurer of Machinists Local 2460 (located in Pensacola, Fla.), pled guilty to one count of embezzling union funds in the amount of approximately $90,500.The plea follows an investigation by the OLMS Miami Resident Investigator Office. Ironically, its government entities and organized labor groups, which are highly regulated, that discoverembezzlement because of auditing requirements. There are a wide variety of unions that experience problems with embezzlement no matter the size. 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. SEIU California's director of government relations, Tia Orr, will take over as interim executive director for the union, Schoonover said. The plea and sentence follows an investigation by the OLMS Cleveland District Office. 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. On July 7, 2009, in the United States District Court for the Northern District of California, San Jose Division, an information was filed charging Erica Alda Perez, former secretary and bookkeeper of Carpenters Local 9144 (located in San Jose, California), with one count of false statements. On November 12, 2009, Kobe was charged in an information with one count of embezzling union funds during a period between 2005 through 2006. At the time, we were giving out food boxes and Meijer gift cards. 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.