National Legal and Policy Center -- Organized Labor Accountability Project
 
UNION CORRUPTION UPDATE
 
February 14, 2000 -- Vol. 3, Issue 4


 
For Influential Leaders & Important Decision Makers:
Information on America's most corrupt & aggressive unions


GOVERNMENT EMPLOYEES (AFSCME)
$100,000 Abused; Another New York Takeover
Am. Fed'n of State, County & Mun. Employees Dist. Council 37 in N.Y. seized another of its 56 locals Jan. 28 after an audit found over $100,000 in questionable spending by Local 1508 president Al Cannizzo.

He allegedly had the local reimburse him $15,000 for 215 visits to the Golden Gate Motor Inn, a Brooklyn "short-stay motel" from Jan. 1995 and Dec 1998. It's not known exactly what Cannizzo did during his stays at the motel, where rates are $53 for a four-hour stay and $110 for the night.  He reportedly often checked in during the afternoon and stayed a couple of hours.

In addition to the motel stays, Cannizzo reportedly had the union pay personal credit card expenses of $3,650, make a $1,650 personal loan payment and pay $270 for a family member's psychiatric exam. The auditors also questioned more than $43,000 in bills for car phones and pagers.  Cannizzo's expenditures have been reportedly referred to Manhattan Dist. Atty. Robert M. Morgenthau.

The charges against Cannizzo, a self-proclaimed reformer, have embarrassed the Committee for Real Change,
a reform group within DC37, of which Cannizzo was a member.  The group has criticized DC37 bosses for not moving more aggressively against corruption. "I don't get how someone who knows that he did what he did was hanging out with the reformers denouncing others who stole," said dissident attorney Arthur Schwartz.

The Local 1508 takeover signals a second wave of charges in DC37 as its audits start to "flush out" problems not previously revealed in criminal charges issued by Morgenthau. Over two dozen DC37 bosses and its vendors have been indicted on a variety of union corruption charges.  [Newsday 1/31/00; Daily News 2/9/00]


Union Corruption Update is made possible by the generous contributions from readers like you. NLPC, P.O. Box 6273, McLean, VA 22106-6273. Thank you.

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.

All back issues of the Union Corruption Update can be viewed at NLPC's website (www.nlpc.org).  Also available is a union-by-union and state-by-state index of all Union Corruption Update articles.

If you have story ideas or suggestions for future editions of Union Corruption Update, please email NLPC at nlpc@nlpc.org.  Thank you.

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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