GOVERNMENT EMPLOYEES (AFSCME)
Three More New York Bosses Indicted for Grand Larceny
Helen Greene, the No. 2 official in the Am.
Fed'n of State, County & Mun. Employees' Dist. Council 37 in N.Y.C.,
was indicted Apr. 25 on grand larceny charges, including one alleging that
she charged $794 on her union credit card to pay for the rehearsal dinner
for her son's wedding. Manhattan Dist. Atty. Robert M. Morgenthau said
Greene had claimed that she spent the $794 on a union member retirement
dinner. She pled not guilty before N.Y. Justice Arlene D. Goldberg and
faces up to seven years in prison.
The indictment, one of several issued against union bosses Apr. 26, reportedly stunned many in DC37 because Greene appeared to be positioning herself to run for DC37's top post. Until the indictment, Greene appeared to be the sole top DC37 boss who had emerged unscathed from the DC37 scandals that came to light in 1998 and involved convictions of 39 DC37 bosses and vendors on embezzlement, vote fraud, and related charges. While other DC37 bosses resigned or were ousted, Greene's career advanced. While president of DC37's Local 768, she was elected an international vice president on the Executive Board of AFSCME, DC37's parent union.
Morgenthau said Greene had embezzled about $8,700 from Jan. 1995 to Dec. 1998 by using union credit cards for personal expenses, including clothing, electronics and a down payment on a car lease. He acknowledged that Greene had returned than $5,000 after KMPG auditors hired by DC37 found that she misused the credit cards.
Additionally, Morgenthau announced the indictment of Peter Carosella, ex-treasurer of AFSCME Local 299. Carosella was charged with embezzling almost $80,000 by submitting 429 fake restaurant receipts. Morgenthau said the fraud was easy to discover because Carosella bought a restaurant receipt book from a stationer and then submitted consecutively numbered receipts. His lawyer, Matthew Mari, said Carosella was not guilty, asserting that Local 299's ex-president, Gary Tenenbaum, had duped and victimized Carosella. Tenenbaum was sentenced to six months in prison after pleading guilty to defrauding the union. Carosella faces up to 15 years in prison if convicted.
Also, Morgenthau also said Laura Greco, ex-treasurer of AFSCME Local 1501, had been indicted. Greco was charged with stealing more than $8,500 in 1997. The indictment accused her of issuing local checks to herself and using a union credit card for payment of her E-ZPass bill, sporting goods and clothes. Greco also pled not guilty and faces up to four years in prison if convicted.
Morgenthau's office said the DC37 probe is winding down. Over half of the bosses who were on DC37's 28-person board in 1998 have been convicted of crimes.
Separately, Morgenthau said Joseph Alfano of AFSCME Local 372 was sentenced last week to 6 months in jail for bribing an AFSCME Local 1549 boss. Alfano sought to ensure that Local 1549 continued to hold conferences at the Friar Tuck Inn in Catskill, N.Y. The inn's owner, Richard Cardi, already pled guilty to bribery and is serving a 2 to 6 year prison term. [N.Y. Times, Newsday, Daily News 4/26/01]
TEACHERS (NEA)
Nebraska Embezzler Looses Teaching Certificate
The Neb. State Board of Education voted May 4 to revoke the teaching
certificate of Linda Harris for two years. Harris, a math teacher at Northwest
High School in Grand Island, was sentenced to one year of probation in
Sept. 2000 for embezzling more than $14,000 from the school's teachers
union, the Northwest Educ. Ass'n. Harris was treasurer of the local union.
[Omaha World-Herald 5/5/01]
FIREFIGHTERS
Illinois Boss Settles Embezzlement Suit for $275,000
Ex-Aurora, Ill., firefighter and union boss Patrick
Stiles agreed Apr. 26 to pay $275,000 to two union groups, Aurora Firefighters
Local 99 and the Aurora Firefighters Relief Ass'n, that accused him of
embezzlement. Though Stiles did not admit any wrongdoing, an order entered
by Kane County Circuit Court Judge Michael Colwell stated Stiles "misappropriated
and used for his own purposes" more than $300,000 from Local 99 and $65,000
from the Relief Ass'n. He was secretary-treasurer of the Relief Ass'n from
1995-99 and of Local 99 from 1992 until Jan. 2001.
The order did not state that Stiles denies wrongdoing, but the only aspect of the order to which Stiles reportedly agreed was the $275,000 payment. Colwell denied a motion by Fred Morelli, Jr., Stiles' attorney, to have a prior default judgment set aside so he could contest the suit's allegations. Morelli also failed in his demands that the two groups urge law enforcement not to pursue criminal charges and to state specifically that Stiles denies wrongdoing. The two groups filed the civil suit against Stiles in Feb. 2001, about a week after filing police reports that led to an ongoing criminal probe.
Colwell's order satisfied the objectives of that suit, Local 99 President Gregory Frieders said. "We came to court to get our money back, and that's what this hopefully will do. He used our money for his personal agenda, and we want it back."
Under the order, Stiles' retirement funds held by the Aurora Firefighters Pension Fund Bd. will be paid to Local 99 and the Relief Ass'n. Wade Joyner, attorney for the Relief Ass'n, said those funds now total about $64,000. In earlier court proceedings, a lien was placed on Stiles' home and other assets were frozen. The two groups do not believe Stiles' assets will cover the full amount. Additional hearings will be held to determine if the assets held by Stiles' wife, Tracey, can be used to satisfy the judgment. Stiles also is required by the order to produce federal income-tax returns and other financial documents each year until he pays off the full $275,000. [Chi. Trib. 4/27/01]
TEAMSTERS (IBT)
Ohio Boss Accused of $4,800 Theft
Stanley M. Bennett was charged Apr. 24 with embezzling $4,833 from
Int'l Bhd. of Teamsters Local 473 and Dayton (Ohio) Mailers Union Local
1137. He was secretary-treasurer of the Mailers Local before it merged
with the IBT Local. He was a union steward after the merger. From May 1997
to Mar. 1998, he allegedly stole $2,588 in members' cash dues. He concealed
the theft "by making false entries of receipts in the dues log or failing
to record the amount received," according to U.S. Dist. Court records.
Reportedly, Bennett also wrote union checks totaling $2,245 "for the personal
benefit of himself and not that of the union." [Dayton Daily News 4/25/01]
IBT Settles Florida Violence Case
An undisclosed financial settlement was reached Apr. 12 between the
Int'l Bhd. of Teamsters and Rod Carter, a former Miami Hurricanes linebacker
who was beaten and stabbed during IBT's 1997 strike against UPS and later
sued IBT officials for provoking the attack. Carter is barred from revealing
details of the agreement in return for dropping a racketeering and civil
conspiracy suit pending in Fla.'s Circuit Court for Miami-Dade County against
IBT Local 769 in Miami.
"Rod and his family are very pleased with the settlement and feel that the union has finally been forced to pay a price for its involvement. The settlement should send a message to union officials across America violence does not pay." said Stefan Gleason of the Nat'l Right to Work Legal Defense Fdn. The Defense Fdn. helps victims of union violence. It hired Ft. Lauderdale attorneys John W. McLuskey and Earthly McLuskey to represent Carter.
Carter continued to work during IBT's strike and appeared on TV during the local news to say he did not support the strike. His wife testified that threatening phone calls began at their home that night. The next day, Aug. 7, 1997, Carter was pulled from his truck and attacked. Six striking teamsters participated in the beating. Benigno Rojas served time for aggravated assault for allegedly stabbing Carter six times with an ice pick. The remaining assailants pleaded guilty or were convicted of lesser charges. Carter then filed a civil suit against IBT for encouraging and condoning the violence.
Carter was unable to work for two months after the attack. He is no longer a driver or a union member. He now is a UPS supervisor in Hialeah. [Sun-Sentinel (Ft. Lauderdale), 4/13/01]
FOOD WORKERS (UFCW)
New Jersey Boss Admits to Conspiracy
Joseph P. Rizzo, ex-president of the United
Food & Commercial Workers Union Local 1262 in N.J., admitted Apr. 16
to a conspiracy to accept money to ensure labor peace. He was charged
last year with four counts of bribery for allegedly demanding and accepting
payments from Foodtown and Shop-Rite employers. Prosecutors dropped other
counts in exchange for the plea to the conspiracy charge. He faces up to
five years in prison and a $250,000 fine at sentencing Aug. 7.
The initial indictment accused Rizzo of demanding payments of cash and groceries at Christmas in exchange for the local's cooperation, which he ran 1989-96. He was also accused of receiving payments during a 1993 strike. [Record (Bergen County, N.J.) 4/17/01]
LABOR LAW REFORM
Oklahoma to Vote on Right-to-Work Law
Okla. voters will decide in a special election Sept. 25 whether Okla.
should become a right-to-work state under a
measure given final approval by the Okla. Senate Apr. 30. The House approved
it Apr. 26. It will amend the state constitution to prohibit employment
contracts requiring workers to be union members or to pay union dues.
Okla. Gov. Frank Keating (R) said he was pleased that the legislature had agreed to 2001 vote: "Right-to-work is an important economic development tool, but for too long it has been stifled by politics. I am grateful to the legislative leadership of both parties that they have agreed to a date that is certain to be a milestone." Okla. last voted on the right-to-work question in 1964, narrowly defeating it. [BNA 5/2/01]
QUOTABLE QUOTE
"[I am] frankly surprised that you would treat this as a raiding opportunity."
-Douglas McCarron, United Bhd. of Carpenters president, in a Apr. 5 letter to Charles W. Jones, Int'l Bhd. of Boilermakers president. The fight resulted from IBB's attempt to have contractors reassign work to IBB (AFL-CIO affiliated) following UBC's Mar. 27 withdrawal from the AFL-CIO. [BNA 4/13/01]
- - - - - -
ADDITIONAL BRIEFS NOT INCLUDED ON THE FAX EDITION OF THIS UNION CORRUPTION UPDATE:
- - - - - -
TEAMSTERS (IBT)
Carey's Permanent Expulsion Upheld
The permanent expulsion of ex-Int'l Bhd. of Teamsters boss Ron
Carey from IBT was upheld Apr. 18 by the U.S. Court of Appeals for
the Second Circuit. The court affirmed a 1998 district court ruling upholding
and enforcing union disciplinary sanctions imposed on Carey and ex-IBT
Governmental Affairs Director William W.
Hamilton for the central roles they played in the elaborate money
laundering scheme that tainted the 1996 IBT election.
"We recognize the irony, indeed the poignancy, of this case, in which a union leader, long pledged to internal reform, should be held accountable for corrupt practices. But the law requires no less," said U.S. Circuit Judge Robert A. Katzmann in writing for the court. "Union democracy, after all, is premised on fair elections. To that end, union officials, such as Carey and Hamilton, have a duty to ensure the integrity of that process and to fulfill their obligations to the union membership by adhering to the highest standards of governance."
IBT's Independ. Rev. Bd. in 1998 found that Carey had breached his fiduciary duty as IBT president by authorizing the diversion of some $735,000 union funds to outside groups in an effort to generate contributions to his reelection campaign. Rejecting Carey's claim that the money-swap was done by aides without his knowledge, IRB determined that the boss knew and approved of the scheme and it recommended his expulsion. Hamilton as IBT's chief political liaison, had played a pivotal role in the scheme, the IRB found, and should be similarly sanctioned.
Earlier this year, Carey was indicted for perjury and making false statements during the government's lengthy investigation of the illegal fund-raising effort. He faces a maximum penalty of five years in prison on each of seven counts. Hamilton was convicted in 1999 of embezzlement of union funds for his part in the campaign funding swap and sentenced to three years in prison.
Rejecting Carey's arguments, the court concurred with IRB that Carey "committed 'serious breaches of trust' that 'require severe sanctions.'" "IRB justified the penalty imposed on Carey by finding that '[a]s the top elected official of the IBT, Carey was especially obligated to follow the rules, particularly as to financial transactions of the size involved here and in light of his constitutional obligation to review expenditures.'"
Hamilton's part in the funding swap displayed "...an abuse of trust by a powerful administrative official [which] undermined the faith of the public and the IBT members in the ability of the union to conduct its day-to-day affairs in a trustworthy and honest way," the court said. "Actions which cause such harm are deserving of serious rebuke, both to censure officers such as Hamilton, and to warn other members that such abuse will not be tolerated."
"At bottom, Hamilton's embezzlement and Carey's breach of his fiduciary duties resulted in the misuse of $735,000 in union funds. As a result of their approval of the contributions to the political advocacy organizations, the 1996 IBT election had to be overturned and the union membership was denied its right to a fair and democratic election. We therefore hold that IRB's decision regarding the choice of sanctions is neither arbitrary or capricious." the court said.
Circuit Judges Fred I. Parker and John M. Walker joined in the ruling. Bruce C. Bishop of Steptoe & Johnson in Washington, D.C. represented Carey. G. Robert Gage Jr. of Gage & Pavlis in N.Y., represented Hamilton. Karen B. Konigsberg and Andrew W. Schilling, Asst. U.S. Attys. for the S. Dist. of N.Y. represented the government [BNA 4/23/01]
Hoffa Campaign Ordered to Return $42,000 in Contributions
IBT Election Administrator William A. Wertheimer overseeing the Int'l
Bhd. of Teamsters 2001 election found Apr. 12 that IBT boss James
P. Hoffa's reelection campaign received some $42,000 in improper contributions
to its legal and accounting fund and that Hoffa must return the contributions.
The ruling stems from a protest filed by Tom Leedham, who is challenging Hoffa for the IBT presidency. Leedham asserted the Hoffa reelection campaign organization received improper contributions from union vendors. Under court-approved rules governing the election, candidates cannot receive contributions from any vendor who has performed services for IBT or its locals within the last 12 months. The rules governing the election require candidates to file periodic reports with Wertheimer detailing contributions and expenditures. These reports are available for review by a candidate's opponent.
Reviewing Hoffa's submissions, the election administrator found Hoffa's campaign received $104,455 in contributions to its accounting and legal fund. Of this, $36,750 came from union vendors and already has been returned by the campaign. Another $5,000 should have been returned but has not yet been. Wertheimer's accounting staff still is trying to determine the propriety of another $37,200 in contributions.
Wertheimer pointed out that all the improper legal and accounting contributions were made prior to the May 2000 adoption of rules for the election by IBT's Gen. Executive Bd, and were not barred as such when the contributions were made. Wertheimer therefore ordered the Hoffa campaign to immediately return all unreturned contributions that have been identified as improper and to establish an escrow account to cover those identified contributions where the staff still is trying to make a determination as to their propriety.
Hoffa campaign spokesman Richard Leebove said Apr. 24 the campaign will not appeal the decision. It has returned most of the questionable contributions and is cooperating with Wertheimer's auditors to determine the status of others. It also is working with the administrator to develop a consistent way of identifying vendors who are potential contributors and who may have done business recently with the union. [BNA 4/25/01]
Boston Boss Reportedly Targeting Informants
Embattled IBT Local 25 boss George W. Cashman,
a target of a federal racketeering probe, is reportedly trying to revoke
the union memberships of three Boston members whom he believes are responsible
for his legal problems. He petitioned IBT to strip Philip J. Myers Sr.,
and his two sons, Philip J. Jr. and Paul, of their membership cards or
"books," claiming they "brought reproach" upon the union with their own
illegal activities, according to a Boston Herald source. "(Cashman) thinks
they're the ones responsible for all this," the source said. "They want
to punish the Myers family."
Cashman and other Local 25 bosses have been the focus of an 18-month Dep't of Labor probe for alleged shakedowns of movie producers, moving companies and other businesses that employ teamsters. Local 25's movie crew, run by ex-convict and alleged Mob associate James Flynn, allegedly add unnecessary workers and pad expenses and overtime in addition to their base salaries in excess of $2,100 per week.
Philip Myers, Jr., a convicted bank robber and prison killer, was busted in 1998 for dealing cocaine along with his brother, Paul. In exchange for a lenient sentence, Philip Myers, Jr., is reportedly one of several people cooperating with investigators in the Local 25 probe. The elder Myers is retired and his sons are in jail on the drug charges.
While Cashman, a member of the Massport Board of Directors and confidant of ex-Gov. Paul Cellucci (R), has targeted the Myers family, he has not sought similar treatment for the movie crew, which reportedly includes convicted bank robbers, killers, drug dealers, ex-convicts, a convicted former cop, and the disgraced ex-Middlesex sheriff. Additionally, last summer a member of another union was reportedly beaten after she allegedly refused Flynn's demand to turn her snack concession over to a teamster. Reportedly, Flynn wanted the woman killed but that plan was nixed. Allegedly, Cashman approved a plan to beat the woman instead "to send her a message."
"I guess they don't bring reproach on the Teamsters," the Herald's source. [Bos. Herald 4/27/01]
Suspension of New York Boss Upheld
The nine-month suspension from union office imposed on Thomas
R. O'Donnell, an Int'l Bhd. of Teamsters int'l vice president by IBT's
Indep. Rev. Bd. for election rules violations was affirmed Apr. 12 by U.S.
Dist. Judge Loretta A. Preska. However, Preska said O'Donnell's suspension
from his int'l post as well as from his position as president of IBT Local
817 in Lake Success, N.Y., should not impede him from participating in
IBT's 2001 election of int'l officers. O'Donnell is running on IBT president
James P. Hoffa's slate as one of five int'l vice presidents at large.
O'Donnell was elected with Hoffa in the 1998 rerun election but stepped down from the int'l office following the IRB's Nov. 13, decision that he had "brought reproach upon the IBT" and violated the union's constitution by filing election finance reports that he knew failed to disclose certain payments to a campaign aide. In issuing the suspension, IRB said O'Donnell could not obtain employment, consulting, or other work from IBT or any local as an officer or employee. It did not suspend him, however, from IBT for the nine-month period.
IRB first filed charges against O'Donnell in December 1998 alleging he had submitted campaign finance reports that omitted payments to Kevin Currie, a campaign aide whom O'Donnell had learned had a criminal record. Checks for salary payments for work Currie did for O'Donnell's campaign were written to Currie's wife. O'Donnell later fired Currie, who subsequently was hired by the Hoffa campaign under a similar pay arrangement with Currie's wife.
In accordance with procedures set out in the 1989 Consent Decree, IRB referred the charges of alleged wrongdoing to IBT for investigation and adjudication. A panel appointed by IBT Joint Council 16 found O'Donnell had violated the IBT constitution by intentionally failing to disclose payments to Currie, but the panel said O'Donnell did not intend to deceive the election officer. It recommended he be suspended from office for 30 days. IBT Secretary-Treasurer Thomas Keegel accepted the panel's finding and ordered O'Donnell to pay a $ 6,000 fine. However, IRB said the sanction was "inadequate" and referred the case back to Keegel for his reconsideration; but the secretary-treasurer decided not to change his decision. As allowed by the consent decree, IRB then took the case back for its own review and disposition. After hearings, IRB issued the more severe penalty of a nine-month suspension.
In its filings with Preska objecting to IRB's penalty, IBT sought a clarification of O'Donnell's eligibility to run for vice president at large in the 2001 election. The election administrator determined that his suspension does not preclude O'Donnell from being elected as a delegate from his local to the June 2001 convention or his attendance at the convention as a union member. The suspension will end Aug. 13, before the time of the election balloting in the fall, Preska wrote in her order affirming IRB's decision.
"[I]t is my hope that O'Donnell's suspension and any coincidental disqualification from participation in the upcoming election process [prior to Aug. 13] for violating the 1995-1996 election rules will serve as a cautionary tale to others in the future," the Preska said. [BNA 4/19/01]
Judge Allows Florida Teamsters to Sue Union in Discrimination Suit
U.S. Dist. Judge Elizabeth A. Kovachevich in Tampa ruled Apr. 24 that
Surgret U. Doss, a former UPS driver, may sue the Int'l Bhd. of Teamsters
and IBT Local 79 for breaching their duties of fair representation in handling
his claim that racial bias motivated his termination. Doss alleges that
Local 79 mishandled his grievance by failing to assert his discrimination
concerns at the termination hearing and discrediting him when he attempted
to raise those concerns on his own. Also, IBT may have breached its duty
to Doss by improperly denying his appeal of the decision to uphold his
termination, Kovachevich found denying the defendants' motion for summary
judgment.
According to the opinion, Doss asserted that on Oct. 5, 1998, he stopped his truck at a McDonald's to call the office to ask if another driver needed help. He claimed a supervisor then came to his truck and accused him of taking an unauthorized break, which amounted to dishonesty, one of UPS's "seven cardinal sins" that could lead to termination. Doss said the supervisor threatened his job, called him "son," and ordered him to stand at the back of his truck.
According to UPS, the supervisor approached the truck because he heard loud music and saw Doss using the phone. Doss seemed nervous, and initially said he was calling the office, but later said he was calling someone else, UPS maintained. An argument ensued, and the supervisor fired him for taking an unauthorized break and insubordination. Within a week, the court said, UPS sent Doss three letters: a warning letter for insubordination, a termination letter for insubordination, and a termination letter for dishonesty.
Doss filed a grievance, claiming his discharge violated the collective bargaining agreement. Doss's claim went before a regional grievance committee that included three Teamsters and three UPS employees. The panel upheld his discharge for dishonesty. Local 79 requested an appeal to the national grievance committee on Doss's behalf, but Doss received no additional information regarding the appeal, the court recounted. Doss sued IBT and Local 79, alleging they violated their duty of fair representation in processing his grievance.
The court rejected IBT's argument that it could not have violated any duty to represent Doss because it was not his certified collective bargaining representative. The court acknowledged that IBT owed Doss no duty under the collective bargaining agreement because it was not a party to the contract and that IBT was not responsible for the acts of its affiliated locals. However, Doss argued that IBT did have some control over whether the national appeal was accepted. IBT ordinarily would consider those appeals stemming from cases involving an interpretation of the National Master Contract between IBT and UPS. Agreeing that the terms of that agreement might have been at issue, the court said "Plaintiff has identified a material factual dispute in this case, because it is possible that the Teamsters improperly denied his appeals, which was a function of the Teamsters and not Local 79."
The court also rejected IBT's argument that it could not have violated Title VII, the state civil rights law, or Section 1981 because it was unaware of Doss's race. Doss presented some evidence that IBT might have known his race, the court said, denying the union's motion for summary judgment on the issue.
Further, Doss argued that the local breached its duty of fair representation by mishandling his grievance. According to Doss, Local 79 never asserted his discrimination complaints at the termination hearing, even though the representative was aware of Doss's suspicions. In addition, when Doss informed the grievance panel of his race discrimination concerns, the representative spoke up after him and discredited his opinion.
The court found unpersuasive Local 79's argument that Doss was unable to show a prima facie case of intentional discrimination because he could not show that the local treated similarly situated whites differently. "Even if Plaintiff cannot establish a prima facie case of racial discrimination based on the tradition framework, the ultimate question is whether Local 79 mishandled [his] grievance based on any discrimination," the court said. Denying the motion for summary judgment, the court found there were genuine issues of material fact as to whether racial bias was a factor in the handling of Doss's grievance and whether he was fairly represented.
The court also rejected Local 79's assertion that Doss's fair representation claim was time-barred. There was conflicting information as to whether Doss was fired for insubordination or dishonesty, the court said, and each infraction carried a different appeals process. Given the conflicting information, a reasonable fact finder could decide the statute of limitation was tolled while Doss pursued the available internal remedies. Lynn H. Cole of Lynn Hamilton Cole, P.A., in Tampa represented Doss. Thomas J. Pilacek of Thomas J. Pilacek & Associates in Winter Springs, Fla., represented IBT and Local 79. [BNA 5/3/01]
SHEET METAL WORKERS (SMW)
New York Local Puts $2.6 Million in Escrow for Discrimination Suit
Sheet Metal Workers Int'l Ass'n Local 28 in N.Y.C. must set aside $2.6
million to compensate minority workers subjected to discriminatory practices
since 1975, the U.S. Court of Appeals for the Second Circuit ruled Apr.
16. The court found no abuse of discretion by the district court and affirmed
the escrow order.
Under the terms of the district court decision, Local 28 must place $1 million in an escrow fund immediately and an additional $1.6 million in the fund within six months. In addition, Local 28 must place $900,000 per year in the escrow fund, starting Dec. 31, 2001, for a period to be determined by the court following individual back-pay hearings. Although the total amount of the back-pay award has not been determined, "It is likely that this amount will be in excess of what the union is able to pay at present and could even exceed $12 million," the court said. The court established the schedule for escrow payments to meet possible employment discrimination liabilities.
The litigation dates back to 1971, when the EEOC brought charges against Local 28 alleging violations of Title VII of the Civil Rights Act of 1964. The local was found to have discriminated against nonwhite workers in its admission and job referral policies, was subjected to a series of affirmative action plans and orders and amended affirmative action plans and orders, and held in contempt of court. [BNA 4/23/01]
AIRLINE PILOTS (APA)
APA Surrender $45.5 Million Fine to American Airlines
American Airlines and the Allied Pilots Ass'n reached an agreement
Apr. 27 under which APA will pay a $45.5 million
contempt damage award leveled against it for refusing to end a 1999
union sickout. Under the agreement, APA immediately signed over to AA more
than $20 million that was placed in a fund two years ago. In addition,
the parties agreed to a 15-year payment schedule under which the remaining
$25.5 million will be repaid, with interest. AA dropped claims against
ex-APA president Richard LaVoy and ex-vice president Brian Mayhew and 23
other union bosses.
In a joint filing, the parties submitted the agreement for the
approval of U.S. Dist. Judge Joe Kendall in the N. Dist. of Tex. Kendall,
who levied the $45.5 million fine against APA and its bosses for violating
his order to call off a sickout in 1999, had set an April 30 deadline for
AA to take action either to collect or dismiss the damages. [BNA 5/1/01]
GOVERNMENT EMPLOYEES (AFGE)
Tainted New York Boss Hid Arrest
Am. Fed'n of Gov't Employees Local 2005 boss, Raymond
L. Cotton, admitted in court that he did not reveal an arrest on his
job application, according to a court transcript. The federal correction
officers union head also testified that he did not disclose the arrest
in a pistol-license application filed with the N.Y.C. Police Dep't.
Cotton appeared at a Nov. 2000 presentencing hearing on behalf of ex-prison guard Anthony Martinez, who had been convicted on federal corruption charges. U.S. Dist. Judge Frederic Block later sentenced Martinez to more than 6 years in prison for taking $2,400 to arrange visits and bring drugs inside Brooklyn's Metro. Detention Ctr. Under cross-examination by Asst. U.S. Atty. John Kroger, Cotton testified that he did not tell the Bureau of Prisons about the arrest.
Newsday reported Apr.10 that Cotton is the subject of an internal Dep't of Justice report in which 17 inmates and three other correction officers allege that he did favors for members of organized crime between 1990 and 1998. The favors allegedly included smuggling in contraband like hero sandwiches, veal cutlets and radios, giving warnings of prison searches and breaking visitation rules in exchange for bribes. Cotton claimed all the allegations were false. [Newsday (N.Y.) 4/17/01]
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