Union Corruption Report: July 2011
August 15th 2011 · 0 Comments
On July 26, 2011, in the United States District Court for the Eastern District of Michigan, Perry Taylor, former Vice President of American, Federation of State, County and Municipal Employees (AFSCME) Local 1820 (located in Pontiac, Mich.), pled guilty to one count of aiding and abetting others in failing to maintain accurate records of lost time claims made by him and others. The plea follows an investigation by the OLMS Detroit District Office.
On July 25, 2011, in the United States District Court for the Western District of Michigan, April Franklin, former office secretary for Plumbers Local 333 (located in Lansing, Mich.) and former bookkeeper for Local 333′s Joint Apprenticeship Training Committee, was sentenced to 42 months of imprisonment, followed by 36 months of supervised release and 300 hours of community service. She was also ordered to pay restitution of $411,979.37 and a $200 special assessment. On April 7, 2011, Franklin pled guilty to one count of embezzling union funds in the amount of $40,886 and one count of theft from an employee benefit plan totaling $234,331.33. The sentencing follows an investigation by the OLMS Detroit District Office, the Department of Labor’s Office of Inspector General, and the Employee Benefits Security Administration.
On July 20, 2011, in the United States District Court for the Southern District of Ohio, Diana Frey, former President of the Cincinnati Organized and Dedicated Employees (CODE) union (located in Cincinnati, Ohio), was indicted on one count of wire fraud for embezzling $757,000. The indictment follows an investigation by the OLMS Cincinnati District Office.
On July 14, 2011, in the United States District Court for the Eastern District of Louisiana, Charles Fleming, former President of Boilermakers Lodge 1814 (located in Bridge City, La.), was sentenced to two years probation for making false entries in union records. Fleming was ordered to pay a $25 special assessment fee, a $3,000 fine, and $1,190.83 in restitution, plus interest until the restitution is paid off in full. The sentencing follows an investigation by the OLMS New Orleans District Office.
On July 13, 2011, in the United States District Court of the Eastern District of Texas, Wanda Jackson, former Treasurer of National Association of Letter Carriers (NALC) Branch 4065 (located in Plano, Tex.), was indicted on one count of embezzlement of union funds in the amount of $41,246.95, in violation of 29 U.S.C. 501(c). The indictment follows an investigation by the OLMS Dallas District Office.
On July 13, 2011, in the United States District Court for New Jersey, Jose Rivera, former President/Secretary-Treasurer of United Transportation Union (UTU) Local 710, a union representing Coach bus drivers in Orange, Newark, and Elizabeth, New Jersey, pled guilty to an information to taking unauthorized loans in excess of $2,000, in violation of 29 U.S.C. 503(a) and (c). Rivera’s sentencing is scheduled for October 2011. The guilty plea follows an investigation by the OLMS New York District Office.
On July 12, 2011, in the United States District Court for the Southern District of West Virginia, Derrick George, the former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes Division (BMWED) of the International Brotherhood of Teamsters (IBT) Sub-Lodge 76 (located in Leon, W.Va.), was charged in a one-count indictment for embezzling $19,287.42 in union funds. The charge follows an investigation by the OLMS Pittsburgh District Office and the Department of Labor’s Office of Inspector General.
On July 11, 2011, in the United States District Court for the Middle District of Pennsylvania, Brandon S. Borders, former Secretary-Treasurer of United Transportation Union (UTU) Local 997 (located in Camp Hill, Pa.), was indicted on one count of embezzlement of union funds in the amount of $12,551.16, in violation of 29 U.S.C. 501(c). The charge follows an investigation by the OLMS Philadelphia District Office.
On July 8, 2011, in the United States District Court for the Southern District of Texas, an indictment was unsealed upon the arrest of Ronald Wayne Witt, former Business Manager of Operating Engineers Local 450 (located in Houston, Tex.) and a former Trustee of Local 450’s Apprenticeship Committee (located in Alvin, Tex.), and Anita Witt, former Financial Secretary of Local 450 and Coordinator of Local 450’s Apprenticeship Committee. They were indicted for conspiracy and theft of labor union funds and apprenticeship funds from May 2007 until April 2009, totaling no less than $150,273.36. The charges and arrests follow a joint investigation conducted by the OLMS Houston Resident Investigator Office and the Employee Benefits Security Administration.
On July 7, 2011, in the United States District Court for the Southern District of Mississippi, Mechelle Busse (aka Mechelle Singleton), former office manager for United Association of Plumbers and Pipefitters Local 568 (located in Gulfport, Miss.), was sentenced to three years probation, including six months of home confinement, for embezzling union funds. Busse was also ordered to pay $51,169.65 in restitution, the cost of the electronic monitoring, and a $100 special assessment fee. The sentencing follows an investigation by the OLMS New Orleans District Office.
On July 7, 2011, in the Circuit Court of the 18th Judicial Circuit of DuPage County, Illinois, Larry F. Shelton, former Steward of Teamsters Local 754 (located in Elmhurst, Ill.), pled guilty and was sentenced to 60 days in jail, 25 months probation, and was ordered to pay restitution of $600. A criminal complaint filed on June 7, 2010 charged Shelton with one count of deception (bad check) over $150. The plea and sentencing follow an investigation by the OLMS Chicago District Office.
On July 7, 2011, in the United States District Court for the Southern District of New York, Leonard Leibowitz, former attorney for the Independent Artists of America (IAA), a union representing ballet dancers in Manhattan, pled guilty to filing a false report, in violation of 29 U.S.C. 439(b). On March 3, 2011, Leibowitz was indicted on one count of embezzlement of union funds of $350,000 and filing false reports with DOL. The guilty plea follows an investigation by the OLMS New York District Office.
On July 7, 2011, in the United States District Court for the Middle District of Pennsylvania, Ernest Milewski, former President of the United Food and Commercial Workers (UFCW), Northeast District Council (located in Wilkes-Barre, Pa.), was charged in a criminal information with one count of embezzling union funds by way of unauthorized checks, unauthorized expense reimbursements, and double billing from on or about January 1, 2005 through May 15, 2008, in violation of 29 U.S.C. 501(c). Milewski was also charged with one count of violating 18 U.S.C. 669 by knowingly and willfully embezzling, stealing, or otherwise without authority converting to the use of any person, other than the rightful owner, or did intentionally misapply any of the moneys, funds, securities, premiums, credits, property, and other assets of a health care benefit program, exceeding the sum of $100, of the Northeast District Council Health and Welfare Fund, a health care benefit program. The charges follow a joint investigation by the OLMS Philadelphia District Office, the Department of Labor’s Office of Inspector General, and the Employee Benefits Security Administration.
On July 6, 2011, in the United States District Court for the Southern District of New York, Ephram Pascall, former President/Business Manager of Painters Local 1422 (located in New York, N.Y.), pled guilty to one count of embezzlement in the amount of $34,199, in violation of 29 U.S.C. 501(c). The guilty plea follows an investigation by the OLMS New York District Office.
On July 6, 2011, in the Trial Court of Massachusetts District Court Department, Stephen Andros, President of Steelworkers Local 2936 (located in Auburn, Mass.), pled to sufficient facts for Larceny Over $250, in violation of Massachusetts General Laws Chapter 266, Section 30. Andros was placed on Administrative Supervision until January 10, 2012, and was ordered to make restitution of $2,430. Andros previously made restitution of $4,045. The plea and sentencing follow an investigation by the OLMS Boston District Office.
On July 6, 2011, in the United States District Court for the Eastern District of Louisiana, Christopher Burnett, President of Boilermakers Lodge 1814 (located in Bridge City, La.), pled guilty to a one count Bill of Information for making false entries in union records, in violation of 29 U.S.C. 439(c). The sentencing is scheduled for October 4, 2011. The guilty plea follows an investigation by the OLMS New Orleans District Office.
On July 1, 2011, in the Franklin County Court within the State of Ohio, Helen Stupka, former office secretary for the Plumbers State Association (located in Columbus, Ohio), was indicted on one count of theft exceeding $5,000. The charge follows an investigation by the OLMS Cleveland District Office.
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Criminal Enforcement Actions 2011
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. An indictment raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
An information is a formal accusation of a crime by a government attorney rather than a Grand Jury. An information raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A charge is an accusation of criminal activity and raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Each count is a separate and distinct offense charged in an indictment or information.
A guilty plea is a defendant’s admission to the court that he or she committed the offense charged and an agreement to waive the right to a trial.
A conviction is a judgment based on a jury’s verdict, judge’s finding, or the defendant’s admission that the defendant is guilty of the crime charged.
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.
Source: Office of Labor-Management Standards (OLMS)
Tags: AFSCME, American, Brotherhood of Maintenance of Way Employes, Cincinnati Organized and Dedicated Employees, County and Municipal Employees, Federation of State, Independent Artists of America, July 2011, National Association of Letter Carriers, Operating Engineers Local 450, Teamsters Local 754, UFCW, Union Corruption Report, United Association of Plumbers and Pipefitters, United Food and Commercial Workers, United Transportation Union
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