LABORERS (LIUNA)
Chicago Boss Charged with $473,100 Embezzlement
A federal grand jury indicted ex-president and business manager
of Laborers’ Int’l Union of N. Am. Local 5, Frank B. Zeuberis, Nov. 9 for
embezzling $473,106 in union funds. Asst. U.S. Atty. Mark J. Vogel said
Zeuberis was arrested Nov. 9 at his home in St. John, Ind. He was released
on a $20,000 recognizance bond after an appearance before a federal magistrate
in Hammond, Ind. The Chicago Hts., Ill., based local has had a long history
of corruption and mob influence.
The indictment includes one count of racketeering, 11 counts of embezzling union funds, and 16 counts of keeping false union records. Reportedly, Zeuberis illegally enriched himself, his wife Joann Zeuberis, who was a clerk at Local 5, and James A. DiForti, secretary-treasurer of the local during the mid-1990s. Allegedly, on 30 occasions, he illegally granted salary increases, paid vacations and bonuses, benefiting himself, his wife, and DiForti.
Zeuberis allegedly supported this fraudulent activity by creating false executive board and membership meeting minutes containing authorizations for salary increases, paid vacations, and bonuses. In addition, Zeuberis allegedly created false authorizations for vehicle expense reimbursements and auto repairs. Zeuberis’ career with LIUNA ended in Oct. 1998, when Local 5 entered into a supervision agreement with LIUNA.
DiForti held his LIUNA post until 1997 when he was charged with the 1988 murder of William Benham, who had refused to repay a $10,000 “juice” loan and threatened to tell authorities about DiForti's alleged loan-sharking activities. DiForti died in June at age 55 before he went on trial for the murder. A 1999 lawsuit by the Dep’t of Justice alleged DiForti was a lieutenant to “outfit” boss John Monteleone and in charge of gambling and juice-loan and street-tax collections for the “26th Street crew.” The suit alleged DiForti had been dispatched by Monteleone to take over Local 5 and to conduct organized crime operations in the south suburbs. [BNA 11/14/00; Chi. Trib. 11/10/00]
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.
Union Corruption Update Article Index (by Union)
Union Corruption Update Article Index (by State)
Organized Labor Accountability Project