Union Corruption Report: October 2011

November 17th 2011   ·   1 Comment

Union Corruption Report Archives

On October 25, 2011, in the Circuit Court for the City of Norfolk, Virginia, Leonard Carman, former Financial Secretary of International Brotherhood of Electrical Workers (IBEW) Local 1142 (located in Virginia Beach, Va.), pled guilty to one count of embezzlement of less than $200, in violation of Virginia Code Section 18.2-111.  Carman was then sentenced to one year in prison, all of which was suspended, two years of supervision, and 50 hours of community service.  Carman had previously made restitution of $3,118.  The guilty plea and sentencing follow an investigation by the OLMS Washington District Office.

On October 24, 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).  Pascall was then sentenced to six months home confinement (on weekends), three years supervised release, and was ordered to pay $34,199 in restitution and a $100 special assessment.  The guilty plea and sentencing follow an investigation by the OLMS New York District Office.

On October 24, 2011, in the Cuyahoga County Court of Common Pleas, Victor Davis, former President of American Federation of Government Employees (AFGE) Local 3283 (located in Cleveland, Ohio), was indicted on one count of theft in excess of $500 but less than $5,000.  The indictment follows an investigation by the OLMS Cleveland District Office and the Defense Criminal Investigative Service.

On October 20, 2011, in the United States District Court for the Northern District of Illinois, John McMahon, former President of Workers United, Service Employees International Union (SEIU) Local 335-T (located in Chicago, Ill.), was sentenced to two years probation including six months of home confinement.  McMahon was also ordered to pay $12,460 in restitution and a $25 special assessment.  On June 9, 2011, McMahon pled guilty to one count of making false entries in union financial records, in violation of 29 U.S.C. 439(c).  The sentencing follows an investigation by the OLMS Chicago District Office.

On October 19, 2011, in the United States District Court of Massachusetts, Joseph Pavone, former President of Laborers Local 560 (located in Waltham, Mass.), pled guilty to three counts of receiving unlawful labor payments in the amount of $6,466.80, in violation of 29 U.S.C. 186(b)(1) and (d)(2).  The guilty plea follows an investigation by the OLMS Boston District Office and the Department of Labor’s Office of Inspector General.

On October 17, 2011, in the United States District Court for the Southern District of West Virginia, Freda Hensley, former President of Steelworkers Local 8-14505 (located in West Logan, W.Va.), pled guilty to a one count indictment of 29 U.S.C. 501(c) for embezzling $38,539.68 in union funds.  The plea follows an investigation by the OLMS Pittsburgh District Office.

On October 14, 2011, in the United States District Court for the Northern District of Alabama, Dennis Lee McGee, Jr., former President of Steelworkers Local 9-9506 (located in Bynum, Ala.), pled guilty to three counts of 29 U.S.C. 501(c) for embezzling union funds totaling $1,950.  McGee was then sentenced to three years probation and was ordered to pay $7,600 in restitution and a $300 special assessment.  The guilty plea and sentencing follow an investigation by the OLMS Nashville District Office.

On October 14, 2011, in the United States District Court for the Western District of New York, Thomas Wagner, former Financial Secretary of Steelworkers Local 897 (located in Cheektowaga, N.Y.), was sentenced to two years of supervised probation and was ordered to make restitution of $5,526.  On June 26, 2011, Wagner pled guilty to falsifying union records. The sentencing follows an investigation by the OLMS Buffalo District Office.

On October 13, 2011, in the United States District Court for the District of Columbia, a criminal information was filed charging Patricia Moore, former employee and Secretary-Treasurer of the National Union of Protective Services Associations (NUPSA), located in Washington, D.C., with one count of conspiracy to commit wire fraud for obtaining $109,866.17 from NUPSA and the National Union of Law Enforcement Associations (NULEA) for her personal use, in violation of 18 U.S.C. 371.  The charge follows an investigation by the OLMS Washington District Office, the Department of Labor’s Office of the Inspector General, and the Employee Benefits Security Administration.

On October 13, 2011, in the United States District Court for the Eastern District of Kentucky, Max Messamore, former President of National Association of Letter Carriers (NALC) Branch 2039 (located in Somerset, Ky.), was sentenced to two years probation, fined $500, and was ordered to make restitution in the amount of $2,293.77.  He was also ordered to pay a special assessment of $25.  On May 19, 2011, Messamore pled guilty to failing to maintain union records, in violation of 29 U.S.C. 439(a).  The sentencing follows an investigation by the OLMS Cincinnati District Office.

On October 12, 2011, in the County of Westmoreland in the state of Pennsylvania, Lesa Major, former Secretary-Treasurer of Communications Workers of America (CWA) Local 14821 (located in Monessen, Pa.), was sentenced for Theft by Unlawful Taking which had been reduced to a misdemeanor at sentencing.  Major paid restitution of $2,500 prior to sentencing and as stated in the plea agreement, probation was terminated when restitution was paid.  The sentencing follows an investigation by the OLMS Pittsburgh District Office.

On October 11, 2011, in the United States District Court for the District of Nevada, Nichelle Alstatt, former Secretary-Treasurer of the Professional Office Personnel Alliance (POPA), located in Las Vegas, Nev., was sentenced to five years probation, with a series of special conditions which included the successful completion of substance abuse and mental health treatment and the completion of 40 hours of community service.  Alstatt was also ordered to pay $51,613.37 in restitution through a garnishment of her wages and a lump sum court assessment of $150.  On June 8, 2011, Alstatt pled guilty to one count of embezzlement in the amount of $51,636.37, in violation of 29 U.S.C. 501(c); one count of making false entries in required records, in violation of 29 U.S.C. 439(c); and one count of making false entries in reports required to be filed under the LMRDA, in violation of 29 U.S.C. 439(b).  The sentencing follows an investigation by the OLMS Los Angeles District Office.

On October 7, 2011, in the United States District Court for the Eastern District of Missouri, Mark Winston, former business manager for Laborers Local 509 (located in St. Louis, Mo.), was sentenced to five months home confinement, five years probation, and 100 hours of community service.  He was also ordered to pay restitution in the amount of $11,557 and a $100 fine.  On June 30, 2011, Winston pled guilty to one count of embezzling union funds, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS St. Louis District Office.

On October 4, 2011, in the United States District Court of Northern Oklahoma, Jackie Darrell Whitehouse, former Treasurer of Steelworkers Local 4430 (located in Tulsa, Okla.), was sentenced to two years of probation and was ordered to pay a $500 fine.  On June 10, 2011, Whitehouse pled guilty to embezzling $6,350 in union funds, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS Dallas District Office.

On October 4, 2011, in the United States District Court for the Southern District of West Virginia, Derrick George, former Secretary-Treasurer of Brotherhood of Maintenance of Way, Employes (BMWE), IBT, Sub-Lodge 76 (located in Leon, W.Va.), pled guilty to one count of embezzlement of union funds.  The plea agreement requires payment of restitution in the amount of $19,287.42.  The plea follows an investigation by the OLMS Pittsburgh District Office and the Department of Labor’s Office of Inspector General.

On October 3, 2011, in the United States District Court for the District of Massachusetts, Frank Rago, former Representative of the International Longshoremen’s Association (ILA) and former President of ILA Local 1604 (located in Stoneham, Mass.), was sentenced to one year and one day incarceration followed by three years supervised release.  Rago was also ordered to pay $216,384.57 in restitution, $10,000 in forfeiture, and a $200 special assessment.  After a 13 day trial in January 2010, Rago was convicted of two violations of 29 U.S.C. 186 (Employer Payment to Labor Union/Taft-Hartley) and one violation of 18 U.S.C. 1027 (False Statement – ERISA).  At Rago’s sentencing, the court dismissed one of the 29 U.S.C. 186 convictions.  The sentencing follows an investigation by the OLMS Boston District Office and the Department of Labor’s Office of Inspector General. 

On October 3, 2011, in the United States District Court for the Western District of Kentucky, Christy Riggs, former office secretary for Iron Workers Local 70 (located in Louisville, Ky.), was sentenced to five years probation and was ordered to pay restitution on the amount of $13,937.80 and a $25 special assessment.  On June 30, 2011, Riggs pled guilty to one count of making false entries in union records, in violation of 29 U.S.C. 439(a) and (c).  The sentencing follows an investigation by the OLMS Cincinnati District Office.

_____________

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:  Communications Workers of America, CWA, IBEW, IUPAT, Laborers, LIUNA, National Union of Law Enforcement Associations, National Union of Protective Services Associations, Painters, Steelworkers, Union Corruption, Union Corruption Report, USW

By Editor