TEAMSTERS (IBT)
IRB Charges Carey-aide with $12,650 Embezzlement
On Oct. 29, the Int'l Bhd. of Teamsters' Independent Rev. Bd. charged Joseph A. Padellaro, a top aide to disgraced former IBT boss Ron Carey, with embezzling at least $12,650 and with breaching his fiduciary duty to IBT members. During his administration, Carey relied heavily on Padellaro to "clean up" locals that had been placed into trusteeship because of allegedly corrupt leadership.

IRB accused Padellaro of repeated double-dipping of hotel and airline expenses from 1995 to 1998. He allegedly bought airplane tickets that were paid for by the parent union and then asking various locals to reimburse him for the trips. IRB asked the IBT's president, James P. Hoffa, to pursue disciplinary proceedings that could lead to a fine in the amount of the embezzled funds against Padellaro. He resigned from the union in May 1999, and thus, cannot be suspended or expelled.

Padellaro is the ex-secretary-treasurer of IBT Local 686 in North Andover, Mass, until he resigned from the post Feb. 1997. In 1994, he was appointed by Carey as his special assistant, at a salary of $90,000 per year, to coordinate the trusteeships of Teamsters locals. Between 1992 and 1998, Carey appointed Padellaro as trustee for a total of 16 IBT union locals and two joint councils. He held several of these trusteeship positions simultaneously.

Padellaro knew from his experience as an international trustee that double dipping in the reimbursement of expenses was fraudulent and a violation of the IBT constitution, IRB's report charges.  Padellaro‘s actions breached his fiduciary duties to members and brought reproach upon the IBT, IRB's report states. Reportedly, because of the high position that he held in the union, a more severe penalty might be imposed. [N.Y. Times 10/30/99; BNA 11/2/99]

GOVERNMENT EMPLOYEES (AFSCME)
Buffalo Boss Suspended After Audit
John Scardino has been suspended indefinitely as president of Am. Fed'n of State, County & Mun. Employees Local 264 in Buffalo and is charged with a series of improper expenditures of union funds. Charges against Scardino, who has led the local for a decade, were referred to the international union after an audit of the local's checking account, according to local vice-president Dave Christopher. The audit, covering the past 20 months, indicated that Scardino obtained funds through a series of checks, some of them written to him, according to Christopher.

According to Scardino, the matter involved "questionable expenses," and he said he repaid the questioned amounts. Scardino also said he may resign before an AFSCME judicial panel hears the charges. Neither side would discuss the amount in question. [Buff. News 10/27/99]

PROFESSIONAL SPORTS
Umpires Accused of Corruption Sue Dissidents
On Nov. 1, the day before a meeting in Baltimore organized by umpires trying to oust Richie Phillips as the umpires' union boss, six major league umpires loyal to Phillips filed a defamation suit against their colleagues who are trying to set up a new union. The six umpires and Pilot Air Freight Corp., a company controlled by Phillips, accused the dissidents of falsely accusing Pilot of paying umpires to support Phillips, according to the suit filed in the Delaware County (Pa.) Court of Common Pleas.

The umpires Jerry Crawford, Gerry Davis, Steve Rippley, Terry Tata of the Nat'l League and Drew Coble and Richie Garcia of the Am. League filed the suit against the A.L. umpires Joe Brinkman, John Hirschbeck, Dave Phillips (not related to Richie Phillips) and Tim Welke. The six -- all members of the union's board -- said the dissidents conspired to destroy the union and the reputation of Richie Phillips and made up deliberate lies, which they hoped would discredit Phillips and the union board.

On Nov. 5, major league umpires began voting by mail for the current union, a new one or neither, and the results will be announced Nov. 30. [AP & USA Today 11/2/99]

LABORERS (LIUNA)
New York Embezzlers Say Boss Showed Them the Way
A Long Island couple admitted in U.S. Dist. Court in Uniondale, N.Y., Nov. 3 that they lied about their income and the status of their children from 1988-98 in order to receive $108,000 in federal housing subsidies meant for low-income families. Joseph Mizell and his wife, Katherine, both pled guilty to a charge of conspiracy to embezzle money from the Dep't of Housing & Urban Dev. Mizell said that in 1988 he told a person in his local union that he needed money and that the person suggested the scheme.

Federal prosecutors have charged that the person was David McKay, the ex-chairman of the Huntington Housing Auth. and a ex-boss of Laborers' Int'l Union of No. Am. Local 66 in Melville. McKay is awaiting trial on a federal indictment that he himself got $30,000 in illegal housing subsidies and also used his union post to extort another $130,000 from construction firms. McKay allegedly received the $30,000 in subsidies from a house he surreptitiously owned and rented to a niece. Under federal law, housing officials cannot profit from HUD subsidies on property they own.

Another couple, Zachary and Jessie Watkins, charged with gaining $67,500 in illegal HUD subsidies in connection with McKay were scheduled to pled guilty Nov. 4.  [Newsday 11/4/99]

ELECTRICAL WORKERS (IBEW)
Probe of Illinois Local Finds Corruption
The ongoing Int'l Bhd. of Electrical Workers investigation into IBEW Local 21 in Downers Grove, Ill., said it uncovered deficit expenses of over $600,000 for the first six months of 1999. IBEW findings were in a Oct. 14 letter to Local 21 members explaining why the international was "forced" to place the local under trusteeship in Sep. 1999 and suspend its officers. The letter from IBEW president J.J. Barry said the investigation also revealed: 1) unauthorized bonuses paid to bosses and staff, 2) improper and unauthorized use of union credit cards, 3) numerous unauthorized payments to local union bosses and staff, 4) local funds spent to campaign for union office.

But Barry added that the "improprieties uncovered concern past and newly elected officers." IBEW spokesman did not provide specifics on which boss might face disciplinary action, but he said a hearing on the allegations is expected to take place soon.

In Jun. 1999, members elected three new officers, including Ronald Kastner, who serves as local president, business manager and financial secretary. He defeated incumbent Donald Moseley, who was appointed interim business manager by the international union on Sep. 1, 1998 -- the same date that five locals in the Chicago area merged, forming IBEW Local 21.

IBEW took over Local 21 on Sep. 1, after a preliminary investigation of complaints from some members who alleged financial improprieties by officials. A two-day hearing to determine whether the trusteeship was justified and should continue was held Sep. 28. [Chi. Sun-Times 10/28/99]

FIREFIGHTERS (IAFF)
FBI Probes California Union Consultant
An ongoing FBI investigation into city government corruption in Richmond, Cal., includes union consultant Darrell Reese's role in alleged payoffs to city leaders in exchange for their votes on various deals during the past seven years, according to city leaders interviewed by federal agents.  Reese is the political consultant for the Int'l Ass'n of Fire Fighters Local 188 in Richmond. After he was subpoenaed, Reese called the FBI investigation part of a "political war."

The firefighters union played key roles in financing the campaigns of candidates backed by Reese, according to campaign records. The union's political action committee has reported a campaign war chest of more than $64,000, including $27,000 in loans from three firefighters. [S.F. Chron. & Contra Costa Times 10/29/99]

But this election day was not very kind to Reese.  Winning four of the five contested City Council seats, opponents of Darrell Reese said the election was a road wreck for the political consultant. Opponents cited the FBI political corruption probe as one reason why Reese candidates won only one spot on the City Council.

"I'm glad to see most of the Reese-backed candidates weren't successful," said incumbent City Councilman Tom Butt. [S.F. Chron. 11/4/99]

ELECTIONS & POLITICS
Union Soft Money Update
In the latest soft money reports, one of America's most corrupt unions -- the Am. Fed'n of  State, County & Mun. Employees -- made huge payments to Democratic Party committees, according to Public Disclosure, Inc. On Sep. 23, AFSCME gave $100,000 to the Dem. Sen. Campaign Committee.

DSCC also received money from two other unions on Sep. 30. Transport Workers Union of Am. gave DSCC $35,000 and the Sheet Metal Workers PAC gave $25,000.

QUOTABLE QUOTE
"In an administration rife with ethically challenged officials, Harold Ickes has consistently been at the top of the list. He initially lost out on an administration job over allegations linking him to mob-controlled labor unions. He was also connected to Arthur Coia, long-serving president of the Laborers' International Union of North America and heavy Democratic contributor. Earlier this month, [news leaked that] Coia, identified by the FBI as an organized-crime associate, [may plead guilty] on fraud charges -- conveniently avoiding a trial at which Ickes and other administration officials would likely have faced some embarrassing questions.

Despite his role at the center of the now-notorious 1996 Clinton-Gore fund-raising apparatus, Ickes was spared a full-scale independent counsel investigation when Janet Reno, America's "hear no evil, see no evil" attorney general, declined to authorize a probe into charges that Ickes lied to Congress about his role in helping the Teamsters while the union was a potential hot source of campaign cash.

With Harold Ickes in charge, 'Clinton for Senate' is bound to be as sleazy and corrupt as the Clinton White House."
[Editorial, N.Y. Post 11/2/99]

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ADDITIONAL BRIEFS NOT INCLUDED ON THE FAX EDITION OF THIS UNION CORRUPTION UPDATE:

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TEACHERS (NEA)
Las Vegas Boss under Attack
Unidentified dissident members of the Clark County Education Ass'n in Nevada have recently circulated bulletins under the name the Committee to Impeach Sue Strand. Strand is the top boss of CCEA. They accuse Strand of greed and utter incompetence.

One bulletin focused on Strand's apparent indifference to union corruption. It quotes some of her published statements from recent years when she was asked about the embezzlement charges against ex-CCEA director Steve Confer in Indiana, Strand dismissed it as "just a silly issue."  Confer pled guilty to union embezzlement on July 26.

Another bulletin went after the boss' salary. "Members got a 1 percent raise and no increase in their benefits, but their president got an 11.6 percent increase," states one bulletin. That raise would hike Strand's compensation package from $100,566 to $112,238. By contrast, a beginning teacher makes $26,060. [Las Vegas Rev.-J. 10/28/99]

AIR LINE PILOTS (ALPA)
Workers Loose Libel Case against Union
The Eleventh Circuit Court of Appeals ruled Oct. 25 that name-calling, however inflammatory, is not necessarily libelous in the context of a labor strike. The Air Line Pilots Ass'n was entitled to call members who crossed picket lines "scabs," the Court held. The 2-1 decision ends, for now, a $280 million libel suit by dozens of former Eastern Air Lines pilots against ALPA.

The case stems from an eight-month strike by Eastern pilots, conducted to support striking Eastern machinists in 1989. After the strike, the pilots' union distributed 50,000 leaflets identifying more than 2,000 pilots who broke the strike, calling them "The Scabs of Eastern."  On the leaflet's front page was a poem called "Ode to a Scab," comparing strike-breakers to Judas Iscariot and Benedict Arnold. It read in part: "No man has a right to SCAB as long as there is a pool of water deep enough to drown his body in, or a rope long enough to hang his carcass with."

In 1991, some of the nonstriking pilots sued for libel, claiming the "scab" moniker was malicious and false. The picket-crossing pilots argued they weren't "scabs" because the strike was never approved by a secret ballot of Eastern's pilots. Therefore, they weren't violating union policy. [Fulton County Daily Rep. 10/29/99]

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In addition to the unions and organizations covered in this Union Corruption Update, readers can look forward to news and information on other corrupt and abusive unions in future editions.

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Union Corruption Update is part of NLPC's Organized Labor Accountability Project which is investigating and exposing corruption and extremism in the Teamsters, LIUNA, AFL-CIO and many other union organizations. NLPC is a nonpartisan, nonprofit foundation promoting ethics and accountability in government through research, education and legal action.

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