Union Corruption Update

Since 1997, NLPC has become a high-profile and credible source for information about America’s labor unions through our publication Union Corruption Update.

The newsletter has been referenced in many other media outlets including the New York Times, Chicago Tribune and National Journal.

Texas Building & Construction Trades Council Treasurer Sentenced

Construction workersOn January 28, Danny Tilley, former executive secretary-treasurer of the Texas State Building & Construction Trades Council, was sentenced in federal court to three years probation for embezzling $9,719.11 from the Austin-based AFL-CIO affiliate. He pleaded guilty in April. The sentencing follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Financial Secretary of Georgia Steelworkers Local Indicted for Theft

Steelworkers logoOn January 28, Johnny Banes, formerly financial secretary of United Steelworkers of America Local 2401, was indicted in the Superior Court of Cobb County, Georgia on one count of theft of $38,329 in funds from the Mableton, Ga. union. The indictment follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Montana Painters Local President Pleads Guilty to Embezzlement

PaintersFor almost two and a half years, Tammy Smith used her union as a cash dispensary. She now wishes she hadn't. On February 17, Smith, former secretary of International Union of Painters and Allied Trades Local 1922 in Billings, Montana, pleaded guilty in federal court to embezzling more than $11,000. Smith, 40, a resident of Billings, began working for the local in 2002. According to federal prosecutors from May 2004 until December 2006 Smith diverted dues payments into a personal bank account and wrote union checks to herself or to cash. At her May 19 sentencing, she faces a maximum five years in prison and a $10,000 fine.

New York State Public Employees Union President Charged

Empire State Plaza, Albany, N.Y.John Vinson isn't the only former local official within New York State's mammoth Civil Service Employees Association (CSEA), an AFSCME affiliate, to be in recent trouble for embezzlement. Rank-and-file members no doubt hope he'll be the last. Vinson, president of CSEA Local 659, was arrested by state police on Wednesday, February 17, and charged with embezzling more than $70,000 from the Albany union. He was arraigned in Albany City Court and released on $10,000 bond.

Locomotive Engineers President Rodzwicz Pleads Guilty to Bribery, Related Charge

LocomotiveThe resignation of Edward Rodzwicz last November as president of the Brotherhood of Locomotive Engineers and Trainmen (BLET) was almost inevitable. So, it seems, was his guilty plea. On Thursday, March 4, Rodzwicz pleaded guilty in St. Louis federal court to bribery and interstate travel for unlawful activity in relation to solicitations for bribery totaling $20,000. He had been indicted and arrested last fall at his home in Avon, Ohio, a suburb of Cleveland, headquarters of BLET. He faces sentencing on June 3.

Former Los Angeles-Area Cop Pleads Guilty to Embezzlement

Police officerAs a police officer, Gene Tomatani didn't have to be told that stealing from his union and his employer was illegal. At least now he's acknowledged as much. On February 10, Tomatani, a former officer with Redondo Beach, California police force, pleaded guilty in Los Angeles County Superior Court to embezzlement of more than $75,000, mainly from the local police officers association. Under the reported settlement, he will receive a sentence later this month of 90 days in jail, three years of probation, and one year at meetings of Gamblers Anonymous.

Field Representative for Pennsylvania Laborers Local Charged

Laborers logoOn January 22, Gary Day, former field representative for Laborers International Union of North America Local 1180, was charged in U.S. District Court for the Middle District of Pennsylvania with embezzling $10,827.50 from the Harrisburg local. The charge follows a probe by the Labor Department's Office of Labor-Management Standards.

Treasurer of Atlanta-Area Postal Workers Local Sentenced for Thefts

Post officeOn January 21, Sonia McGuire, former treasurer of American Postal Workers Union Local 3434, was sentenced in U.S. District Court for the Northern District of Georgia to five years probation, the first six months of which must be served in home detention, for embezzling funds from the Decatur, Ga. union. She also will have to pay $16,023.12 in restitution and a $100 special assessment. McGuire had pleaded guilty in November to embezzling funds in the same amount. The sentencing follows a probe by the Labor Department's Office of Labor-Management Standards.

Former Treasurer of Cleveland-Area Transit Union Charged with Embezzlement

Transit bus On January 21, Lisa Wright, former treasurer of the Transit Employees Union, was charged in U.S. District Court for the Northern District of Ohio with one count of embezzling $71,470.50 from the Bedford (suburban Cleveland) union. The charge follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Ohio Steelworkers Local President Charged with Records Fraud

Steelworkers logoOn January 21, Jacqueline Kiedrowicz, former president of United Steelworkers of America Local 1200, was charged in U.S. District Court for the Northern District of Ohio with one count of making false entries in financial records of the Canton union. The charge follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Philadelphia-Area Aerospace Workers President Sentenced in Credit Union Fraud/Kickback Scheme

Chinook helicopterRunning a labor union and a credit union at the same time may be a bad combination. For Anthony Forte it was. Forte, formerly president of United Aerospace Workers Local 1069 and executive vice president of the Boeing Helicopters Credit Union (BHCU), was sentenced on February 22 in U.S. District Court for the Eastern District of Pennsylvania to 28 months in prison and ordered to pay more than $1.25 million in restitution for organizing a massive loan fraud and kickback scam nearly a decade ago. His ailing younger brother, David, was sentenced to (and since has served) a day in prison and was ordered to pay $178,446 in restitution. Both men had pleaded guilty in November 2009 after being charged in September 2008. Six other defendants ranging in age from 33 to 40 also were prosecuted.

Former Employee of Kentucky Steelworkers Local Sentenced

Steelworkers logoOn January 15, Ray Horton, a former employee of United Steelworkers of America Local 9443 in Robards, Ky., was sentenced in U.S. District Court for the Western District of Kentucky to three years probation, including four months of community confinement, for embezzlement and mail fraud from the union. He also will have to pay $43,816.29 in restitution and $200 in court costs. He had pleaded guilty in October to stealing nearly $20,000 in local funds. The sentencing follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Michigan Independent Workers Local Treasurer Indicted for Embezzlement

Michigan On January 6, David Miller, former treasurer of Independent Workers Union Local 373, was indicted in U.S. District Court for the Western District of Michigan on one count of embezzling funds from the Litchfield union in the amount of $50,501.99. The indictment follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Former Officials of Security Guards Local in Mississippi Plead Guilty

Security guardOn January 12, Ron Quinn and Rebecca James, respectively, the former president and secretary-treasurer of International Guards Union of America Local 123 in Port Gibson, Miss., pleaded guilty to embezzling union funds in the amount of $11,147.30. The pair had been charged in July with conspiracy and embezzlement during the period January-August 2008. The guilty pleas follow a probe by the Labor Department's Office of Labor-Management Standards.

Ex-Office Manager of Nevada Teamsters Local Sentenced for Embezzlement

Reno, NevadaOn January 8, Monica Peaslee, former office manager of International Brotherhood of Teamsters Local 533, was sentenced in U.S. District Court for the District of Nevada to four years probation for embezzling funds from the Reno union. She also was ordered to pay $12,479.99 in restitution. Peaslee pled guilty in October to embezzling $13,156 and falsifying union records. The sentencing follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Former Business Manager of Detroit Teachers Local Charged

Detroit skylineSherri Patrick isn't the communicative type. She'll likely become one, however, not long from now. Patrick's former employer, the Detroit Federation of Teachers (DFT), an affiliate of the American Federation of Teachers, on February 8 filed a criminal complaint with the Detroit Police Department alleging that she'd embezzled $75,000 in union funds. Patrick had served as the union's business manager until last spring and as a member of the Highland Park School Board until late January, citing "personal issues."

Former NYC Operating Engineers Business Agent Sentenced in Construction Scam

Construction workersUntil seven years ago, Locals 14 and 15 of the International Union of Operating Engineers (IUOE) had been virtually synonymous with organized crime. Union bosses, working in tandem with the Genovese and Colombo crime families, diverted millions of dollars in labor payments associated with major New York City-area construction projects into their own pockets. Now another participant in that racket has had a date with justice. On January 29, Joseph "Joey" Coriasco, a former IUOE Local 14 business agent, was sentenced to three years probation in Brooklyn federal court for his role in facilitating unlawful labor payments and mail fraud.

St. Louis Communications Workers Local Treasurer Charged with Theft; Pleads Guilty

Communications Workers on strikeSherrell Mitchell was the gambling type. She now wishes she wasn't. On January 5, Mitchell, formerly secretary-treasurer for Local 86823 of Communications Workers of America, was charged in U.S. District Court for the Eastern District of Missouri with one count of embezzling in excess of $110,000 from the St. Louis union. She then pleaded guilty. Prosecutors alleged that Mitchell, 45, a resident of St. Louis County, over a more than seven-year period made out local checks to herself and made cash withdrawals from the account. She lost much of the money at a local casino. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Connecticut Firefighters Ex-Local President Agrees to Repay Embezzled Funds

FirefightersSettling out of court might not be the most lucrative approach to getting back stolen funds, but in the long run it may be the best. Officials of Local 2533 of the International Association of Fire Fighters are hoping so. Early this month, the Branford (near New Haven), Connecticut union and State Attorney General Richard Blumenthal announced they had reached an agreement with former local president Michael Manemeit to recover around $38,000 in funds Manemeit had stolen years earlier. "We're happy to have some closure on the case," said Randall Chittenden, a former union president and currently a local trustee.

Southern California Electrical Workers Local Treasurer Indicted

Electrical Workers logoJames Miles has plenty of reasons to fear a trial - more than 350 of them, in fact. Miles, formerly treasurer of International Brotherhood of Electrical Workers Local 1023, pleaded not guilty in Riverside, Calif. federal court on February 3 to charges related to his theft of more than $93,000 from the Barstow union over four and a half years. A grand jury on January 13 had indicted him on one count of embezzlement, nine counts of mail fraud and two counts of filing false financial statements with the U.S. Department of Labor. He also allegedly filed false federal and state tax returns on behalf of himself and the union. A pretrial hearing is set for March 22.

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