On July 2, 2009, in the United States District Court for the Northern District of Ohio, an information was filed charging Michael Kelly, former Secretary Treasurer for the United Transportation Union (UTU) Local 586 (located in Willard, Ohio) with one count of embezzling union funds in the amount of $97,970.71. An indictment raises no inference of guilt. On March 25, 2009, Dallas pled guilty to one count of embezzling union funds in the same amount. On August 8, 2008, Della Porta was indicted on one count of embezzling approximately $108,000 in union funds. We wish Dr. Walters the very best of luck and thank her for her many years of service to Union Academy, a statement from the Board Chair read. On January 30, 2009, in the United States District Court for the Eastern District of Wisconsin, Eugene Huss, former Area Vice President of Steelworkers Local 20 (located in Kaukauna, Wis.), was ordered to make restitution in the amount of $2,000 and pay a $100 fine. What Should You Do If Suspected of Embezzlement? The Maddalones pled guilty to conspiracy to commit extortion for their 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. Mike Roth, a spokesman for the union, did not answer a question about when Hernandez resigned. An information raises no inference of guilt. We are hired to detect suspected fraud, and to help businesses recover from the catastrophic financial effect it can have. 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). The case is working its way through the court system, so far resulting in charges against four people. The indictment follows an investigation by the OLMS Detroit District Office. The plea follows an investigation by the OLMS Dallas District Office. Theplea and charge follow an investigation by the OLMS Detroit District Office. On July 30, 2009, in the United States District Court for the Northern District of Ohio, Michael Kelly, former Secretary-Treasurer for the United Transportation Union (UTU) Local 586 (located in Crestline, Ohio), pled guilty to one count of embezzling union funds in the amount of $97,970.71. While superintendent, Garza awarded a contract to a company whose owner then sent funds back to Garza. On March 31, 2009, in the United States District Court for the Eastern District of Missouri, Michael St. John, former Secretary Treasurer of Glass Molders Local 30 (located in Festus, Mo. The sentencing follows an investigation by the OLMS Pittsburgh District Office. The verdict follows an investigation by the OLMS Los Angeles District Office. The indictments follow an investigation by the OLMS Atlanta District Office. On October 7, 2008, Ethington plead guilty to embezzling union funds in the same amount. 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. On February 3, 2009, in the United States District Court for the Eastern District of Kentucky, Mervin Patrick Getzen, former Secretary Treasurer of UAW Local 2926 (located in Shelbyville, Ky.), was sentenced to three years probation, six months home detention, and order to pay a $100 assessment. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} On September 28, 2009, in the 52nd Judicial Circuit Court of Huron County (Mich.), Christine Pawlowski, former Financial Secretary of Auto Workers Local 812 (located in Harbor Beach, Mich.), pled guilty to one count of embezzlement of $1,000 or more but less than $20,000. Of course, the shocking data from the Department of Labor only includes the cases where the theft, racketeering and other criminal activity were caught. Bealefeld was then sentenced to three years probation. On September 24, 2009, in the United States District Court for the Central District of California, Alejandro Stephens, former President of the Service Employees International Union (SEIU) Local 660 (now Local 721) (located in Los Angeles, Calif.), pled guilty to two counts of mail fraud in connection with income fraudulently received from the Voter Improvement Program of the Los Angeles County Federation of Labor, and one count of filing a false tax return related to his failure to report $35,000 fraudulently received from this fund. The trial hasnt been set yet, but they both could see up to 10 years in prison and restitution if found guilty. The charge follows an investigation by the OLMS St. Louis District Office. An OLMS investigation concluded thatBrownlee falsified vouchers for travel, per diem, lodging and lost time. They were in charge of the National Basketball Players Association. The convictions follow an investigation by the OLMS Chicago District Office, the Department of Labors Office of Inspector General and the United States Postal Inspection Service. The plea and sentencing follows an investigation by the OLMS San Francisco District Office. Copyright 2019 WBTV. A conviction is a judgment based on a jurys verdict, judges finding, or the defendants admission that the defendant is guilty of the crime charged. The plea follows an investigation by the OLMS Buffalo District Office. The sentencing follows an investigation by the OLMS Philadelphia 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. Posted on: November 13, 2021, 11:30h. What you find in these embezzlement cases is very trusted employees that have worked for organizations for a number of years. The English definition of the offense is followed in the United States. The criminal charge is punishable by up to five years in federal prison and a $250,000 fine. The charge follows an investigation by the OLMS Boston District Office. He pleaded guilty in 2016. The union represents more than 700,000 workers - including nearly 60,000 Northern California workers through its Local 1021, and is politically influential, regularly donating millions to Democratic candidates. The plea follows an investigation by the OLMS Cincinnati District Office. 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 June 11, 2009, in the Montgomery County (Ohio) Court of Common Pleas, Monica Smalls, former Treasurer of AFGE Local 2209 (located in Dayton, Ohio), was sentenced to five years probation, ordered to make full restitution in the amount of $3,790, and required to attend the Montgomery County Theft Counseling Program. What Are Some High Profile Cases of Embezzlement in Unions? 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 Milwaukee District Office. On May 13, 2009, Pfeiffer pled guilty to embezzling union funds in the amount of $12,051. The sentencing follows an investigation by the OLMS Buffalo District Office. WebOfficer at TXDOT Credit Union in Wichita Falls, Texas Sentenced to Nearly Six Years in Federal Prision for Embezzlement Scheme U.S. Attorneys Office April 03, 2009 Northern District On September 1, 2009, in the United States District Court for the Middle District of Florida, Tarris D. Dallas, former Financial Secretary-Treasurer of Steelworkers Local 9-415 (located in Fernandina Beach, Fla.), was sentenced to five years of probation and ordered to make restitution in the amount of $104,713.45 and pay a special court fee of $100. Also, Bruno agreed to pay restitution. On October 9, 2009, in the United States District Court for the Northern District of Illinois, Joyce Marsalis, former Treasurer of the University of Chicago local unit of the Illinois Nurses Association (located in Chicago, Ill.), pled guilty to one count of willfully making a false entry in union records. 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. 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. On December 1, 2009, in the United States District Court for the Southern District of Georgia, Dianne Drawdy, former Financial Secretary of Security Police Fire Professionals Local 576 (located in Baxley, Ga.), was sentenced to six months imprisonment, followed by three years of supervised release and ordered to pay restitution in the amount of $ 18, 818.74. In lieu of community service hours, Williams was also ordered to make a $175 monetary donation to the Society of St. Vincent de Paul Food Pantry. We had our union president build a big elaborate house with materials, money and labor through our union. 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. The plea follows an investigation by the OLMS Cincinnati District Office. 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. He conceded it hurts the union's image internally and externally. On April 17, 2009, Simpson pled guilty to embezzling union funds in the same amount. 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 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 sentencing follows an investigation by the OLMS Cincinnati District Office. 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 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. Brownlee falsified travel vouchers, per diem, lodging, and lost time claims. His trial is scheduled for March 19. A Maryland woman who gambled away nearly $1.5 million in funds from the elite dance school where she served as comptroller pleaded guilty to fraud in U.S. District Court Secure .gov websites use HTTPS Local 598 (located in Huntsville, Ala.), was indicted on one count of embezzling union funds in the amount of $10,690. 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. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The complaint alleges she directed nearly $12,000 in campaign money to her husband for campaign food services that he never provided. ), pled guilty to one count of theft over $500 for stealing $5,686 from the union. SEIU California's director of government relations, Tia Orr, will take over as interim executive director for the union, Schoonover said. A charge is an accusation of criminal activity and raises no inference of guilt. 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. Dr. Walters has been instrumental in our childrens lives and at Union Academy. 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. On April 28, 2009, in the United States District Court for the Western District of Pennsylvania, Christine S. Throckmorton, former office secretary/bookkeeper for Hotel Employees Restaurant Employees Local 57 (located in Pittsburgh, Pa.), was charged with one count of embezzling union funds in the amount of $9,674.95. On November 23, 2009, Matthis was charged in an information with one count of embezzling union funds during a period between August 2006 and October 2007. On September 17, 2009, in the United States District Court for the Northern District of Indiana, Karen Snelling, former Treasurer of Communication Workers Local 34014 (located in Gary, Ind. That political committee received numerous contributions from the SEIU California's political arm, according to campaign finance filings. Hundreds of union officials have been indicted for other crimes that victimize union members, such as filing false reports, keeping false records, destruction of records, extortionate picketing and deprivation of rights by violence. 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. 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. In February 2017, the International Longshoremens Association Local 970 had their former financial secretary received a lengthy prison sentence. On September 10, 2009, in the United States District Court for the District of New Jersey, Joseph Moon Jr., former President of Amalgamated Transit Union (ATU) Local 1626, pled guilty to a criminal information for one count of improper loans from a labor organization. The plea follows an investigation by the OLMS Detroit 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 June 8, 2009,Brownlee pled guilty to embezzling union funds in the amount of $16,221.30. On Oct. 31, a former secretary-treasurer pleaded guilty to embezzling $37,197 in Rushville, Ind. Any negative publicity is a tremendous blow to a union. 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 Detroit District Office. On June 10, 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.), pled guilty to one count of embezzling union funds in the amount of $10,988.86 and one count of falsifying union records. On Sept. 21, a former local president was sentenced to prison after diverting more than $129,723 in union money for personal use in Danville, Ill. Thats a significant amount. Attorney General Rob Bonta said Wednesday his office filed charges against Hernandez and her husband, Jose Moscoso, on Oct. 4. The hard part is that everybody liked her," Dunbar said. Baker misappropriated approximately 107 strike pay checks and forged members' signatures on the union's check register for 101 checks.The plea follows an investigation by the OLMS Cincinnati District Office. 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. 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 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 plea follows an investigation by the OLMS Philadelphia District Office. This is both externally from the public and internally from members. On March 6, 2009, Acevedo pled guilty to attempted theft. 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. 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. The plea follows an investigation by the OLMS Cincinnati District Office. Lisa McCormick, chief assistant prosecuting attorney for Ingham County, noted the current case of St. Martha Parishin Okemos. In December 2008, Pagano pled guilty to one count of falsifying union records. Bokaiyan, 58, Houston, had also pleaded guilty for his role in the scheme and was ordered to pay $156,595 in restitution. 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. ), 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 February 3, 2009, in the United States District Court for the Southern District of Alabama, Angelo Wiggins, former President of the National Alliance of Postal and Federal Employees (NAPFE) Local 408 (located in Mobile, Ala.), pled guilty to a one count of embezzling union funds in the amount of $2,269.85. Copyright 2021 The Associated Press. Pearson was In one such case, the union was taking money for one legitimate purpose and stealing it to purchase personal gifts. 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. Have a question about Government Services? The indictment also included a forfeiture allegation in the amount of $1,000,000. On October 30, 2008, Steinruck had pled guilty to grand larceny in the fourth degree for taking union funds in the same amount. ), with one count of embezzlement of union funds between August 2006 and October 2007. The plea follows an investigation by the OLMS Denver District Office. The charge follows an investigation by OLMS New Orleans District Office. Bokaiyan was an IT employee at the school who also owned a business called Hot Rod Systems. 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. .table thead th {background-color:#f1f1f1;color:#222;} 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. One financial analystrecalled working with a treasurer who was dyslexic and another who had trouble balancing his own checkbook. According to the Board Chair for Union Academy, Dr. Ann Walters contract expires at the end of the month. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} On July 31, 2009, in the United States District Court for the Southern District of Georgia, Dianne Drawdy, former Financial Secretary of Security Police Fire Professionals Local 576 (located in Baxley, Ga.) pled guilty to embezzling union funds. The plea follows an investigation by the OLMS Cleveland District Office. 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. They also said that labor unions operate on shoestring budgets and often lack resources needed to provide oversight. 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. Burkhart pleaded guilty on April 8, 2021, admitting to embezzlement and theft of labor union assets. The stipulation settles a lawsuitthat the Department filed against Local 3 seeking to void the August 29, 2008 rerun election, supervised by OLMS, for the offices of two union-wide Business Agent positions.Local 3eliminated the Business Agent position that represented employees at Entenmann's Bakery thereby, according to OLMS' investigative findings, denying Entenmann's members the opportunity to run for and vote for any business agent position. On February 17, 2009, Ramsey was charged with embezzling funds in the same amount. People were leaving town for work.. 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. 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 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. The sentencing follows an investigation by the OLMS New Orleans District Office. Many in the public perceivelabor unions to besynonymous with corruption. 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.). On October 9, 2009, Spell had been charged with embezzling funds in the same amount. Investigators are said to be examining General Motors and Ford union training centers, as well. On November 12, 2009, Kobe was charged in an information with one count of embezzling union funds during a period between 2005 through 2006. 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. All Rights Reserved. On October 2, 2009, in the United States District Court for the Western District of Kentucky, Ray Horton, former employee of United Steelworkers Local 9443 (located in Robards, Ky.), pled guilty to mail fraud and embezzlement of union funds.