March 15, 2002

Mr. Don Todd
Deputy Assistant Secretary
Office of Labor-Management Standards
United States Department of Labor
200 Constitution Avenue, N.W.
Washington, D.C. 20210

Mr. Christopher J. Christie
United States Attorney, District of New Jersey
United States Department of Justice
Peter Rodino Federal Building
970 Broad Street, Suite 700
Newark, New Jersey  07102

Mr. Gordon S. Heddell
Inspector General
Office of the Inspector General
United States Department of Labor
200 Constitution Avenue, N.W.
Washington, D.C. 20210

Mr. Michael Chertoff
Assistant Attorney General
Criminal Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530

If you have not already done so, the National Legal and Policy Center requests that you initiate a union embezzlement prosecution of David Feeback, former president of Hotel Employees and Restaurant Employees International Union (HERE) Local 69 in Secaucus and/or Saddle Brook, New Jersey, under 29 U.S.C. § 501(c). According to a March 14, 2002, New York Times article, Mr. Feeback allegedly embezzled more than $100,000 from the local. Additionally, other union corruption crimes, possibly by other Local 69 officials, may have been committed, and the National Legal and Policy Center requests that you prosecute any such additional crimes your investigation uncovers.

Since 1997, NLPC has been dedicated to investigating and exposing union corruption at every level. In publishing the fortnightly newsletter, Union Corruption Update, we have observed hundreds of cases of union embezzlement and other union-related crimes. For more information about the National Legal and Policy Center, please visit http://www.nlpc.org.

The article -- Steven Greenhouse, "Hotel Workers' Union Expels Leader of North Jersey Local," N.Y. Times, Mar. 14, 2002, at B2 -- is enclosed. It reported that HERE ousted Mr. Feedback on March 13, 2002, after finding that he had made large, "unjustified" payments to his predecessor, who had been removed from the union for associating with organized crime. HERE said Mr. Feeback had "misappropriated" union funds 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.

More importantly, HERE reportedly placed Local 69 into trusteeship after uncovering "extensive financial irregularities." Reportedly, HERE accused Mr. Feeback of diverting more than $100,000 for his personal benefit, including money for dinners and bar tabs. HERE moved against Mr. Feeback after auditors discovered the potential wrongdoing. This credible allegation is more that sufficient evidence for you and your agencies to initiated a criminal investigation.

Moreover, according to the article, HERE asserted that unnamed Local 69 officials received an "illegal" $5,282 loan from an employer to buy 76 tickets to a Bruce Springsteen concert. Again, this credible allegation should be part of your criminal investigation.

There was no report that the alleged financial irregularities were referred to federal authorities for prosecution. Therefore, the National Legal and Policy Center believes that it is imperative that you and your offices are notified of this apparent union corruption and have the opportunity to bring any guilty union officials to justice. Simple removal from union office is not enough.

Thank you for your time and consideration of this request. If we can be of any additional assistance, please contact us at 703-237-1970.

Sincerely,

Kenneth F. Boehm
Chairman
 

cc:
United States Secretary of Labor Elaine L. Chao
United States Attorney General John Ashcroft

Enclosure: as stated

Supporting Article: Steven Greenhouse, "Hotel Workers' Union Expels Leader of North Jersey Local," N.Y. Times, Mar. 14, 2002, at B2

Union Corruption Update Brief on HERE Local 69 (Mar. 18, 2002)

Organized Labor Accountability Project

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