LABORERS (LIUNA)
Coia Pleads Guilty!
Arthur A. Coia, ex-boss of the Laborers’ Int’l Union of N. Am., has
agreed to plead guilty to a mail fraud charge related to union corruption.
U.S. Attorney Donald K. Stern in Boston and John R. McGlynn, of Dep’t of
Labor’s Racketeering Division, announced Jan. 27 that Coia defrauded the
State of Rhode Island and the Town of Barrington, R.I., of approximately
$100,000 in taxes. The deal alleges that from 1991-97, Coia, with the assistance
car dealers under the name of Viking (a LIUNA vendor), purchased Ferraris
that ranged from $215,000 to $1,050,000 and avoided taxes due on the purchase
and ownership of those cars. “While holding important leadership positions
at LIUNA... Coia repeatedly found ways to shirk his duty to pay his taxes,”
said Stern.
In the plea, the government recommended a two-year probation term, full restitution and a $10,000 fine. Additionally, Coia is barred from any future role in LIUNA or its subordinate entities in any capacity, and to be barred from being an employee of any other union for a period of five years. Coia “retired” as LIUNA’s boss on Jan. 1. He is now president emeritus and get $335,000 a year. The plea is subject to approval by U.S. Dist. Judge George A. O’Toole. [USAO D. Mass., Media Release 1/27/00]
“Coia’s plea further illustrates that the Laborers’ ‘internal reform effort’ is a sham,” said NLPC Chairman Ken Boehm. “Since 1995, Coia and LIUNA have perpetuated the myth that Coia is ‘squeaky clean.’ Finally, it is confirmed that Coia is just another dirty union boss. The Clinton-Reno Justice Department should be embarrassed that it has taken so long to bring Coia to partial justice.”
“The agreement doesn’t go far enough. For years Coia has avoided justice. Now that he’s caught, the government should not go soft on him. Coia is a corrupt union boss who should get what he deserves -- prison,” added Boehm.
Coia, in his office three blocks from the White House, used a Ferrari coffee mug, had Ferrari toy cars and displayed Ferrari posters. When union officials who disdained such “high living” visited his office, he would temporarily replace his Ferrari pictures with posters by Ralph Fasanella, a painter famous for his “loving” depictions of factories. [N.Y. Times 1/28/00]
DOJ Capitulates to LIUNA
Accountability sunk to a new low in the ongoing scam between the Dep’t
of Justice and LIUNA. The extension
of the 1995 DOJ-LIUNA agreement,
by which the union avoided a DOJ’s racketeering suit and takeover,
was set to expire Jan. 31. On Jan. 20, the agreement was replaced with
a weakened agreement that expires in 2006. Unlike the prior agreement,
the new deal has no takeover threat. Before, DOJ could take over
the union if DOJ felt the union’s “internal reform effort” was failing.
Though the last five years have shown that this threat was meaningless,
it was at least something. Now DOJ has virtually nothing: it can
“veto” major changes in LIUNA’s “internal reform effort.” What is
a major change? How will this “veto” be enforced?
The new agreement also calls for Stephen A. Goldberg, a law professor, to oversee LIUNA’s 2001 and 2006 elections. He oversaw the 1996 election of corrupt ex-LIUNA boss Arthur A. Coia. [BNA, Providence J.-Bull. 1/21/00]
GOVERNMENT EMPLOYEES (AFSCME)
Union Lost $4.1 Million to Corruption in 1999
On Jan. 21, the New York Times reported that an Am. Fed’n of State,
County & Mun. Employees’ internal report details “extensive corruption”
with the union. It listed $4.6 million in claims that AFSCME made
to its insurance company, seeking reimbursement under a policy that covers
boss’ fraud. The report was leaked by a union official eager to have AFSCME
take a tougher stance on corruption.
It describes how 35 bosses forged checks, made unauthorized withdrawals, siphoned union dues into their personal accounts and used union credit cards for personal expenses. More than half the claims arise from N.Y.C.’s Dist. Council 37 in which two dozen officials have been indicted. Other corruption claims involved locals in Ind., Mass., Minn., Mont., N.J., Ohio, Pa., Wis. and D.C. In Milwaukee, Robert Gordon, apparently embezzled $96,000 by writing 208 checks to himself. In Elkart, Ind., Steven K. Grubb, wrote $13,500 in union checks for his personal benefit.
AFSCME has a fidelity bond insurance policy that reimburses it if a boss commits “dishonest acts” that cause the union to lose money. The insurance company paid $605,000 of $2.6 million in claims that were pending in Nov. 1999. The reason the company paid less than the amount requested was that AFSCME claimed $2.2 million for money it said was stolen by Charles Hughes, ex-boss of DC37 Local 372. The policy covering Hughes was only for $500,000. [N.Y. Times 1/21/00]
Reportedly, federal law enforcement wants to investigate AFSCME. [Wall. St. J. 1/24/00] The only problem is that many AFSCME locals, such DC37, are exempt from the Landrum-Griffin Act which imposes fiduciary duties in union bosses and criminalizes union embezzlement.
Ex-New York Boss Gets 1 to 3 Years
N.Y. Judge George Daniels in Manhattan sentenced Connie Lango, ex-treasurer
DC37 Local 384, Jan. 24 to 1 to 3 years in prison for stealing union funds.
She pled guilty in Aug. to two counts
of grand larceny and admitted to taking over $50,000. Prosecutors
believed she took as much as $190,000. She stole the money from May 1994
to Sept. 1995, by asking the local’s bank to issue checks payable to herself,
credit-card companies and car leasing firms. [Newsday 1/25/00]
LABORERS (LIUNA)
Buffalo Consent Decree Approved
In the latest illustration that the LIUNA
“internal reform effort” is a failure, U.S. Dist. Judge Richard J.
Arcara Jan. 24 approved a consent decree over LIUNA Local 210 in Buffalo.
Arcara said the government takeover was “appropriate and necessary” and
that he found “substantial evidence” that the affairs of Local 210 have
been influenced by members of organized crime for more than 20 years. If
such corruption is so pervasive in Local 210, what has LIUNA’s “internal
reform effort” been doing the last five years?
A 114-page civil complaint filed under RICO sought injunctive relief to insure that Local 210 is “rid of domination and influence by members and associates of the La Cosa Nostra organized crime family.” The complaint was filed by DOJ and LIUNA in Dec., but Arcara forced LIUNA out because of a conflict of interest. LIUNA had run Local 210 and it was suing Local 210. The judge didn’t want LIUNA to be both plaintiff and defendant. [BNA 1/26/00]
Rhode Island Boss Indicted for Embezzlement
Michael Fascitelli, the business manager of a LIUNA Local 1056 was
indicted Jan. 12 by a Rhode Island grand jury on a felony embezzlement
charge for allegedly using his union-issued credit card for personal purchases.
The amount was not disclosed. The embezzlement allegedly occurred
between 1996 and 1997. He is scheduled to be arraigned on Jan. 26.
[Providence J.-Bull. 1/15/00]
FIREFIGHTERS
Michigan Embezzler Took $6,000
Paul W. Dean, a 13-year veteran of the Mt. Pleasant (Mich.) Fire Dep’t
pled no contest Jan. 13 to a felony charge of embezzling from his union.
Police said Dean admitted taking about $6,000, though the actual amount
could be as high as $16,000. He faces 10 years in prison. His union title
was unreported. Restitution and sentencing hearings will be in Feb. [Det.
News 1/14/00]
CARPENTERS (UBC)
Pension Funds Sued for Self-Dealing
Three retired carpenters -- Horacio Grana, Phillip R. Helsius, and
Walter J. Sprenger -- filed a suit Jan. 14 seeking the removal of
penion plan directors and advisors for alleged self-dealing and other ERISA
violations. The federal suit charged that Douglas McCarron, UBC president,
and other directors of the Carpenters Pension Trust Fund for S. Cal. and
the UBC Pension Fund authorized imprudent investments into entities owned
or controlled by the plans’ advisor, Richard C. Blum, husband of Sen. Dianne
Feinstein (D-Cal.).
The plaintiffs seek a court order allowing them to recover documents relating to the investments from the two funds; removal of both plans’ trustees and Blum; a prohibition against the defendants from using plan assets to defend themselves; and, all allowable statutory and compensatory damages.
Investments were allegedly made to protect McCarron and others’ holdings in Perini Corp., a financially ailing construction company. Hundreds of millions of dollars of Perini assets were then transferred to Ronald N. Tutor, a trustee of the S. Cal. plan. The assets were transferred “...at prices highly favorable to Tutor and highly disfavorable to Perini and its shareholders, including (indirectly) the [pension plans],” the suit charged. Blum, Tutor, and McCarron knew or should have known that Perini was in serious financial trouble, having lost more than $27.5 million in 1995. They made the investment anyway, “...in order to protect Tutor’s and McCarron’s investment in Perini and without regard to the fact that prudent investments were available...” to the two funds, according to the suit.
In addition to the Perini, the S. Cal. plan allegedly made other investments in entities in which Tutor, McCarron and other plan trustees had financial interests. Those investments were imprudent, and some or all of the assets in question were transferred in whole or in part to defendants or entities they control or have interests in, “at prices well below book value,” it said. [L.A. Times 1/19/00; BNA 1/26/00]
Union Bosses’ Salaries and Benefits/Allowences for 1998
AFSCME, Gerald McEntee: $352,404, $16,800
LIUNA, Arthur A. Coia: $335,674, $86,120
ALPA, Randolph Babbitt: $314,995, $34,000
HERE, John Wilhelm: $280,793, $30,700
UFCW, Douglas H. Dority: $264,152, $58,167
AFT, Sandra Feldman: $246,563, $94,932
IUOE, Frank Hanley: $231,237, $15,600
SEIU, Andrew Stern: $215,218, $7,800
AFL-CIO, John J. Sweeney: $199,750, $7,250
IBEW, J.J. Barry: $198,533, ??
UNITE, Jay Mazur: $196,462, $54,796
NEA, Robert F. Chase: $196,427, $94,049
BSOIW, Jake West: $196,390, $184,750
UBC, Douglas J. McCarron: $194,250, $28,700
CWA, Morton Bahr: $152,762, $9,556
IAM, R.T. Buffenbarger: $142,801, $57,871
UWSA, George F. Becker: $131,499, $22,432
AFGE, Bobby L. Harnage: $122,746, $15,109
UAW, Stephen P. Yokich: $112,608, $6,900
UMW, Ronald E. Cecil: $96,224, $3,960
IBT, Ronald Carey: $0, $0
Source: Nat’l J. 1/15/00; for full list with footnotes: http://www.nlpc.org/olap/ucu2/03_03_09.htm.
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ADDITIONAL BRIEFS NOT INCLUDED ON THE FAX EDITION OF THIS UNION CORRUPTION UPDATE:
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LONGSHOREMEN (ILA)
Union Riot in Charleston
On the night of Jan. 19-20, about 400 members of the Int’l Longshoremen’s
Ass’n rioted in the Port of Charleston S.C.; the Post & Courier’s editorial
on Jan. 21 paints the picture well:
“Labor violence on Charleston's waterfront must not be rewarded. Unionized dock workers cannot be allowed to get their way through intimidation. Indeed, those responsible for the riot near the docks shortly after midnight Thursday morning must be held to account for their irresponsible - apparently even criminal - actions. The same union that had been condemning what it called an excessive show of police force destroyed its own argument with an excessive show of mob force. Fortunately, a sufficient contingent of law enforcement officers quelled the disturbance and restored order.
Unfortunately, several people - including at least two police officers - were injured. Eyewitness accounts...indicate that hundreds of irate workers, in defiance of police orders, marched directly into the police lines at the State Ports Authority's Columbus Street Terminal, shouting their determination to reach the ship that was being loaded by non-union workers. After the police repulsed the initial frontal assault, the mob began hurling bricks, rocks and pieces of railroad ties at the officers. After the conflict escalated, police finally gained the upper hand and pushed the rioters back toward the union hall.
In the wake of the appalling incident Thursday, the union attempted to shift the blame to the authorities. Such deflection of responsibility simply doesn't ring true.
Less than three weeks ago, a crowd of up to 75 longshoremen disrupted the terminal's operation, temporarily blocking the gates and, according to the alleged victims, roughing up two non-union workers. The union obviously was spoiling for a much bigger fight Wednesday night. A few hours before the after-midnight showdown, union members were making cryptic remarks to our reporter Tony Bartelme. One worker told him, "It's a game of chess. Be patient, you'll get your story." This newspaper - and other media outlets - did get the story, despite the bullying of journalists by rioters. The ugly scene cast an ugly reflection on the union and its leadership.
If the union's leadership was aware that any of its members were, in the vernacular, ready to rumble Wednesday night, it should have dissuaded them. If the leadership was not aware of that combative mood, it was sadly out of touch with the men it represents. Either way, the Wednesday night riot has done the union a gross disservice. Those involved must know that with or without their approval, South Carolina remains a right-to-work state. Non-union workers, by law, can load and unload non-union ships at this port. No union mob will change that reality - and no union's cause will be advanced by that frightening outburst of mob violence at the Columbus Street Terminal.”
SERVICE EMPLOYEES (SEIU)
New Info on New York Boss’ Schemes
Almost a year after ex-Service Employee’s Int’l Union Local
32B-32J boss Gus Bevona was was ousted, members are still learning
about his secretive but high-living ways.
On Jan. 18, at the first general membership meeting of Local 32B-32J since a trusteeship was imposed by SEIU, members learned that Bevona had the local pay $1.1 million for a parcel of land on Long Island where he pledged to build an office - then failed to pay the taxes. The town authorities foreclosed. SEIU is suing to get it back. Bevona had the local pay $2.8 million in 1990 for a large two-story brick building in N.Y.C. Officials say renovations to turn it into living space were begun and abandoned. The union is trying to sell it.
Members also learned that the union retirement village in Fla. that Bevona had long promised them, a place where they could retire when they were done scrubbing floors and holding open doors for others, was only a fantasy. Bevona had a law firm scout out possible sites near Fort Myers, but that was it. "Gus told everyone it was there, but it never existed. There was nothing," said Mike Fishman, the current trustee. [Daily News 1/24/00]
TEAMSTERS (IBT)
Overnite Files RICO Suit Against IBT
Overnite Transportation Co. is seeking at least $ 5.2 million from
the Int’l Bhd. of Teamsters for damages and other costs associated with
the union's three-month strike against the Richmond, Va.,-based trucking
company. In a suit filed Jan. 24 in U.S. District court in Tennessee,
the company alleges that the IBT, its officers, and officials have engaged
in a pattern of racketeering activities, including 57 alleged incidents
of attempted murder and 131 alleged acts of extortion as well as numerous
violations of Tennessee law. Named in the 225-page complaint
are IBT President James P. Hoffa, members of the union's general executive
board, and other IBT officials and staff.
The suit alleges a scheme to "put Overnite out of business" if the company does not recognize the union as its employees' bargaining representative and accept the terms of a contract agreement proposed by IBT. It seeks damages in excess of $5.2 million for security expenses, damage to Overnite property, damage to the property of company employees for which Overnite has paid compensation, and the cost of replacing workers who missed work because of lawless acts by the union. The company also is seeking an unspecified amount of relief for lost profits and other damage associated with IBT's ongoing strike.
The suit seeks payment of triple damages allowed under the Racketeer Influenced and Corrupt Organizations Act, which would bring the amount of the award to more than $15 million. Overnite alleges that the named defendants are associated with an "enterprise" as defined by the RICO statute for the purpose of putting Overnite out of business. Apart from the union's lawful strike activity, the IBT and its officials have engaged in "a pattern of racketeering activity," the suit claims, including acts of attempted murder and extortion. In its filing, the company details specific incidents that have occurred since the strike began in late Oct.
According to Overnite, because of violence associated with the strike, "judges in 14 states have issued 21 restraining orders in an attempt to curb IBT lawlessness. Police reports have detailed 26 separate shootings and two dozen instance of projectiles thrown or dropped on moving vehicles," the company said in a statement announcing the suit. Among the incidents cited in the lawsuit is the Dec. 1 shooting of Overnite driver William Wonder who was critically injured when he was shot in the stomach as he was driving along an interstate highway north of Memphis. [BNA 1/28/00]
Suit Claims California Official Improperly Helped Teamsters
Caltrans Director Jose Medina was accused Jan. 25 in a lawsuit of steering
a state parking contract to a pro-union company that did not submit the
winning bid. The lawsuit alleges that Medina, a former S.F. County supervisor
with strong union ties, used his position to snatch a $3.9-million contract
away from the nonunion company that already had been declared the best
bidder and awarded it to the runner-up, whose workers were Teamsters union
members.
The allegations are expected to increase pressure on Gov. Gray Davis (D-Cal.) to remove Medina, whose yearlong reign as head of one of the state's most powerful agencies has been marred by controversy. Michael Bustamante, Davis' press secretary, said the governor's office would look into the latest allegations but any action is unlikely as long as a lawsuit is pending.
The latest allegations against Medina were raised by attorneys for CarPark Management Corp., a San Francisco-based company. It complained that in an unprecedented move, the Caltrans director had intervened in a contract matter that affected his political allies. The issue involved a two-year lease to operate the Transbay Parking Facility in San Francisco. The 900-space parking facility is owned by Caltrans but leased to private operators. In late 1999, when the facility's lease came up for renewal, Caltrans sought bids from parking companies.
Steve Kottmeier, an attorney for CarPark, said that on Dec. 2 the company's owner, Minesh Mehta, was notified by Caltrans that it had won the bidding competition and would be awarded the contract to operate the facility. He said Mehta was asked to make a security deposit and pay $ 327,000 in advance rent, both of which he did. On Dec. 13, he said Caltrans officials advised Mehta that he had satisfied all the conditions of the lease and provided him with two copies to sign.
But on Dec. 31, just hours before the lease was to take effect, Kottmeier said, Caltrans informed Mehta "that the lease was being pulled from CarPark and. . . was instead being awarded to Priority Parking." When Mehta sought an explanation, Kottmeier said, local Caltrans officials told him that the decision had been made in Sacramento by Medina. Kottmeier noted that Mehta's company is nonunion while Priority Parking employs union labor.
In a statement, Medina said Caltrans had exercised its right to award the contract to the second bidder because of "very serious allegations raised against the apparent high bidder." He did not say who had raised the allegations or what they were. Mark I. Gleason, vice president of IBT Local 665, confirmed that his organization had complained to Caltrans about improprieties involving the agency's leased properties, but he would not say if those complaints had been directed at CarPark. Nor would he say if union representatives had met with Medina.
Administrators familiar with state contract laws, however, said it is highly unusual for the director of Caltrans to intervene in a local contract matter and to reverse a contract decision made by staff. They said it also was unusual to act on allegations that have not been investigated. [L.A. Times 1/26/00]
POLICE UNIONS
Toronto Boss’ “Protection Racket” Condemned
Toronto Police Association president Craig Bromell has been given a
week to stop the union's "evil" Operation True Blue or face the wrath of
the Toronto police board. The controversy is over a fundraising drive
in which the union has hired telemarketers to call people and ask for money.
Depending on the size of the check, donors get windshield stickers that
show exactly how generously they've supported the police union fundraising
drive.
Toronto Mayor Mel Lastman said Jan. 26 he laid down the law for Bromell, promising to cut him some slack if the union would stop handing out "get-out-of-jail-free" stickers for contributions to their war chest. "This is wrong. I think it's evil," Lastman told reporters. "I intend to do everything possible. This has got to stop. It's like a protection racket. That's what it sounds like to me -- that if you pay, you may not get a ticket. That's what people think and that's what goes through my mind as well. And... it's scary," he added.
Police Chief David Boothby said Bromell's refusal to stop the fundraising effort is a direct challenge to his authority and he's prepared to take action against the union executive if they don't. Bromell said yesterday he's hanging tough on the controversial fundraising drive and doesn't intend to change a thing. But, he stressed the money raised to date wouldn't be used to hire private eyes and smear politicians, contrary to comments he made on TV in Nov.
"They work for us. They are our employees," Lastman said. "They may be members of the union, but they're our employees and we've got to get more control." [Toronto Sun 1/27/00]
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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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