March 14, 2002, Thursday, Late Edition - Final

SECTION: Section B; Page 2; Column 1; Metropolitan Desk

LENGTH: 440 words

HEADLINE: Hotel Workers' Union Expels Leader of North Jersey Local

BYLINE:  By STEVEN GREENHOUSE

BODY:
The hotel employees' union ousted the president of its North Jersey local yesterday after finding that he had made large, unjustified payments to his predecessor, who had been kicked out for associating with mobsters.

Hotel union officials said the president of the local had misappropriated union money by paying $542,000 in severance benefits to John N. Agathos, who was expelled from the local's presidency in 1996, and to his son, John R. Agathos, who was also ousted that year.

John W. Wilhelm, president of the Hotel Employees and Restaurant Employees International Union, said that the Washington-based union put the local into trusteeship after uncovering extensive financial irregularities there. The local put into trusteeship, Local 69, is based in Secaucus and represents 2,800 workers, including 1,300 workers at the Meadowlands Sports Complex.

The parent union also accused David Feeback, Local 69's president, of diverting more than $100,000 for his personal benefit, including money for dinners and bar tabs. The union also asserted that Local 69 officials had
received an illegal $5,282 loan from an employer to buy 76 tickets to a Bruce Springsteen concert.

Mr. Feeback did not return calls to the Local 69 office. His home telephone was not listed.

Among the reasons Mr. Feeback was ousted was that a federal court had barred Local 69 officials from having any dealings with Mr. Agathos, the former president, who New Jersey officials said associated with the Genovese crime family.

During the 1980's the hotel employees' union was considered one of the nation's most corrupt unions. In 1995 it signed a consent decree naming a federal monitor to root out corruption. In December 2000 the federal government
agreed to end its oversight after the monitor, Kurt W. Muellenberg, reported that the union was largely free of corruption.

The union put Local 69 into trusteeship after consulting with the Justice Department and the union's ethics review board. The union named John A. Boardman, president of its local in Washington, to serve as the trustee who runs
Local 69, while the federal government has named Mr. Muellenberg to serve as monitor of the local.

Mr. Wilhelm said he moved against Mr. Feeback after auditors discovered a withdrawal of more than $500,000 from Local 69's treasury. Mr. Wilhelm said his decision to put Local 69 into trusteeship showed that the hotel employees' union was on the mend and was intent on cleaning its own house.

Robert J. Rotatori, the union's general counsel, said Mr. Agathos and his son had agreed to repay the $542,000.