On September 2, 2011, Ford pled guilty to one count of embezzling union funds, in violation of 29 U.S.C. ), admitted to sufficient facts to a charge of larceny over $250. 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. 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 plea and sentencing follows an investigation by the OLMS Nashville Office. His sentencing is scheduled for Jan. 23. Bania was sentenced to 40 months imprisonment and two years supervised release. 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. On March 30, 2009, in the United States District Court for the Northern District of West Virginia, Steven Snyder, former Financial Secretary of Steelworkers Local 5724 (located in Clarington, Ohio), was sentenced to five months incarceration after pleading guilty to embezzling $78,893.47 in union strike fund benefits. The plea and sentence follows an investigation by the OLMS Cleveland District Office. 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. On October 6, 2008, Roles pled guilty to one count of embezzling union funds in the amount of $76,420. The plea and sentencing follows an investigation by the OLMS San Francisco District Office. 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. He conceded it hurts the union's image internally and externally. On October 19, 2009, in the United States District Court for the Southern District of West Virginia, Harold C. Ullum, former Vice-President and West Virginia District Manager of the Mid-Atlantic Regional Council of Carpenters, Ind., West Virginia District (located in Parkersburg, W.Va.), was sentenced to six months home detention, five years probation, and payment of a $20,000 fine plus a $100 special assessment. A lock ( On October 22, 2008, Montgomery pled guilty to embezzling union funds in the amount of $509. On December 7, 2009, in the United States District Court for the District of Arizona, Roger Wuest, former Secretary-Treasurer of Security Police and Fire Professionals (SPFPA) (located in San Bernardino, Calif.), was sentenced to one year of probation. On June 10, 2009, in the United States District Court for the District of New Jersey, Kathleen Fonti, former President of Health Professionals & Allied Employees (HPAE) Local 5030 (located in Emerson, N.J.), pled guilty to improperly receiving loans in excess of $14,500. 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. Union Academy is in great shape and poised to continue down the path of excellence. Postal Inspection Service. On October 22, 2009, in the United States District Court for the District of Kansas, Darryl D. Becker, former Financial Secretary of the United Steelworkers of America (USWA) Local 558-11 (located in McPherson, Kan.) was fined $500 and placed on probation for one year. Dunbar has since been elected president of the International Brotherhood of Electrical Workers Local 58 in Detroit. The plea follows an investigation by the OLMS Cincinnati District Office. On May 8, 2009, in the United States District Court for the Northern District of Indiana, Jeffrey C. Harris, former Financial Secretary-Treasurer of Glass Molders and Plastics Local 285 (located in Fort Wayne, Ind. On March 10, 2009, in the United States District Court for the Eastern District of Michigan, Charles Bohanon, former Secretary-Treasurer of Brotherhood of Locomotive Engineers (BLE) Division 1 (located in Petersburg, Mich.), was sentenced to three years of supervised release and ordered to pay restitution in the amount of $18,074.23 and a $100 special assessment.On November 20, 2008, Bohanon pled guilty to embezzling union funds in the same amount. Itsfounding pastor is accused of stealing up to $5 million afteraudits and reviewsin the summer of 2017. Lock On January 7, 2009, Bruno pled guilty to one count of embezzling union funds in the amount of $16,118.57. Subsequently, Scott was sentenced to two years of unsupervised probation. Its the same basic story over and over again. 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. The English definition of the offense is followed in the United States. What Are Some High Profile Cases of Embezzlement in Unions? 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. The pleas follow a joint investigation of Amalgamated Transit Union Local 1181 (the primary union that represents drivers for school bus companies in New York City) as well as the New York City school bus industry by the OLMS New York District Office, Department of Labor's Office of the Inspector General, and the FBI. On April 17, 2009, Simpson pled guilty to embezzling union funds in the same amount. Rhoades was also ordered to perform 25 hours of community service and was prohibited from serving as a union official for a period of 13 years. They were convicted of stealing 1,072,660 dollars from the union that they used to purchase toys, shoes, clothing, food, gas, entertainment expenses, and home improvement products. 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. Fanning had previously made restitution in the amount of $6,342.15. On May 6, 2009, Jimenez had pled guilty to one count of making a false entry in or willful concealment of books and records. 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. 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. Charges were levied against an ex-president of the UAW in January 2017. The plea follows an investigation by the OLMS Dallas District Office. On June 30, 2009, Tidwell had pled guilty to one count of embezzlement of union funds in the same amount and one count of forfeiture. Johnson was also ordered to make restitution in the amount of $46,653. 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 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. #block-googletagmanagerheader .field { padding-bottom:0 !important; } And its used effectively to damage unions politically.. 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. On May 28, 2009, in the District Court of Brockton, Massachusetts, Susan J. Elliot, former Secretary-Treasurer of Laborers Local 1162 (located in Brockton, Mass. 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 following individuals have been charged with violations of United States Northern District of Oklahoma All rights reserved. The plea follows a joint investigation by the OLMS Tampa Resident Investigator Office and the U.S. Department of Labors Office of Inspector General. 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. Washington, DC 202101-866-4-USA-DOL1-866-487-2365, File Labor Union, Trusteeship, Employer, and Consultant Reports (EFS), Labor-Management Reporting and Disclosure Act (LMRDA), Poster: Notice of Employee Rights Under Federal Law (Executive Order 13496). I think the public has a perception that theyre all greedy mobsters and these things reinforce stereotypes that theres corruption. The trial hasnt been set yet, but they both could see up to 10 years in prison and restitution if found guilty. .usa-footer .container {max-width:1440px!important;} On February 19, 2009, in the Cuyahoga County, Ohio Court of Common Pleas, Willie Harris, former Secretary-Treasurer of AFGE Local 2823 (located in Cleveland, Ohio), was sentenced to two years probation and ordered to make restitution in the amount of $5,784.61 following a guilty plea to one count of aggravated theft. The sentencing follows a joint investigation by the OLMS Pittsburgh District Office and the Department of Labor's Office of the Inspector General. The plea and sentencing follows an investigation by the OLMS Dallas District Office. On October 29, 2009, in the United States District Court for the Southern District of Ohio, Donald Spell, former office employee for Hotel Employees & Restaurant Employees (HERE) Local 12 (formerly located in Cincinnati, Ohio), pled guilty to embezzling union funds totaling $16,422. WebEmbezzlement was created by the English legislature, which designated specific persons who might be liable for the offense. An official website of the United States government. Margaritis had previously made a restitution payment in the amount $12,000. 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 On April 28, 2009, in the United States District Court for the Northern District of Illinois, Joyce Marsalis, former Treasurer of the Illinois Nurses Association, University of Chicago Local (located in Chicago, Ill.), was indicted on one count of embezzling union funds in the amount of $12,717 and one count of falsifying union records. 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. The sentencing follows an investigation by the OLMS Milwaukee District Office. Elliott was ordered to perform 100 hours of community service and ordered to pay assessments and fees of $594. 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. On March 12, 2009, Ramsey pled guilty to embezzling union funds in the same amount. We have also at times withstood investigations that have tested our goodwill," he said. 2300 The sentencing follows an investigation by the OLMS Cincinnati District Office. The sentencing follows an investigation by OLMS Dallas District Office, EBSA Dallas District Office, and the Department of Labors Office of Inspector General. On February 17, 2009, Ramsey was charged with embezzling funds in the same amount. Mosley was sentenced to one day in prison, six months in home confinement, and 18 months of additional supervised release. Disclaimer | Sitemap | Privacy Policy. 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. Detroit Federal prosecutors charged a local United Auto Workers official Wednesday with embezzling more than $2 million in union funds, money laundering and The hard part is that everybody liked her," Dunbar said. HOUSTON The former superintendent of Houston Gateway Academy has been ordered to federal prison after taking more than a million dollars, announced Acting U.S. Attorney Jennifer B. Lowery. 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. It may seem like a problem thats only hitting large unions, but in fact, it happens commonly all across the country in large and small areas. The sentencing follows an investigation by the OLMS Buffalo District Office. The sentencing follows a joint investigation by the OLMS Chicago District Office and the Department of Labor's Office of the Inspector General. On February 6, 2009, in the United States District Court for the Southern District of New York, George Ortiz, former New York City Department of Education School Bus Inspector, pled guilty to extorting and accepting bribes in a program receiving federal funds. 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. Federal prosecutors say UAW leader Vance Pearson conspired with other union officials to embezzle hundreds of thousands of dollars in union money. On December 2, 2009, in Hamilton County (Ohio) Court of Common Pleas, the following Tiffany Freeman, Tiesha Hamer, Lavina Smith, LaDonna Turner and Britton Russia were charged with forging checks belonging to Musicians Local 1 (located in Cincinnati, Ohio). The criminal charge is punishable by up to five years in federal prison and a The Department of Education-Office of Inspector General conducted the investigation with the assistance of the TEA. On August 26, 2009, in Cambria County (Pennsylvania) Court, Richard J. Vincent, former Treasurer of AFGE Local 3951, was sentenced to seven years probation and ordered to pay restitution in the amount of $43,694 and court costs of $900. An official website of the United States government. 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. Suite 300 West previously made full restitution in the amount of $650.Subsequently, West was sentenced to 90 days in jail (suspended) and a fine of $20 plus court costs. The charge follows an investigation by the OLMS Buffalo District Office. ), 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. On October 9, 2009, Marsalis pled guilty to one count of creating false entries in union records. While superintendent, Garza awarded a contract to a company whose owner then sent funds back to Garza. 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. "Over the last several months, we have been under a magnifying glass, and rightfully so. 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. Unions have a purpose to protect workers. The sentencing follows an investigation by the OLMS Buffalo District Office. Drake previously made restitution in the amount of $450. The guilty plea follows an investigation by the OLMS Washington Distrct Office. Contact Phoebe Wall Howard:313-222-6512 or phoward@freepress.com. [CDATA[/* >