LABORERS (LIUNA)
New Jersey Boss Accused of Embezzling $2 Million
Carmelo J. Sita, ex-fund manager for the Hudson County (N.J.) Dist. Council of Laborers, was arrested the morning of Dec. 12 at his home in Mountainside, N.J., and accused of embezzling more than $2 million from HCDCL and its benefit funds. He used the money for a lavish  lifestyle, including a Martha's Vineyard vacation home and luxury cars, according to the 59-count indictment handed up Dec. 10. U.S. Magistrate Judge Susan D. Wigenton set bail at $250,000, which was reportedly secured by a coop apartment that Sita owns on Manhattan's Upper West Side.

From Jan. 1995 to Mar. 1999, Sita allegedly conspired with others who concealed the embezzlement, and he wrote checks from benefit fund and HCDCL  accounts to himself or to pay his personal expenses. Allegedly, Sita stole money to pay for "monthly credit card debts, mortgage payments, lease payments on luxury vehicles, personal taxes, Martha's Vineyard vacation home and boat, and unauthorized political and charitable contributions." Further, he allegedly used union money to pay country club dues. Specifically, the indictment charges him with conspiracy, theft from employee benefit and health care plans, health care fraud, and falsifying disbursement documents about HCDCL.

In addition to prison time, prosecutors are seeking criminal forfeiture of Sita's Mountainside home, his condo in Tisbury, Mass. (Martha's Vineyard), a Wellcraft 20-foot motor boat, and $1,062,787 million in cash. They charge that the property and money came from the embezzled funds.

Sita resigned in 1999 after 22 years as executive manager of HCDCL's benefit funds. The Jersey City based council consists of Laborers' Int'l Union of N. Am. Locals 21, 31, 202, and 325. He is now a self-employed consultant on commercial real estate deals. Sita's attorney, David A. Ruhnke, said his client denies any wrongdoing: "this indictment represents a gross misunderstanding of how matters of compensation were handled in this union." Ruhnke admitted that last year, the Dep't of Labor sued Sita and other bosses, accountants, and attorneys linked the funds over the alleged embezzlement. The parties reached a confidential settlement, he said. [Record (Bergen County, N.J.) 12/13/01; Bloomberg News 12/12/01]

According to Fed. Election Comm'n records, Sita's federal political contributions from 1995-99 were: $2,000 to the N.J. Republican State Comm., $1,000 to Sen. Robert G. Torricelli (D-N.J.), Rep. Michael Ferguson (R-N.J.), Senate Candidate & ex-Rep. Dick Zimmer (R-N.J.), House candidate John O. Bennett, III (R-N.J.), and $800 to the Republican Nat'l Comm.

CARPENTERS (UBC)
Genovese Allegedly Stole $1 Million from Union Funds
The Dep't of Justice brought a 98-count indictment against 73 members and associates the Genovese crime family in N.Y. The charges include embezzlement, extortion, labor racketeering, loansharking, illegal gambling operations, selling counterfeit money, gun trafficking, credit card fraud, and attempted bank fraud, some of which led to conspiracy and racketeering counts. The crimes reportedly earned about $14 million this year. At least 60 defendants were arrested Dec. 5; some were already in custody. If convicted, some defendants would face as little as 5 years in prison while others would face hundreds of years; one could face up to 530 years.

Among those indicted are 3 alleged "capos" or captains, who are responsible for supervising the criminal activities of the members of their crews. They were identified as Pasquale "Patsy" Parrello, Joseph Dente, Jr., and Rosario "Ross" Gangi, who is already serving a 97-month sentence in federal prison for his role in a penny stock fraud.

Parrello is accused of embezzling more than $1 million from the benefit funds of Local 11 and Local 964 of the United Bhd. of Carpenters. Allegedly, Parrello and others stole the funds through S&F Carpentry, a unionized company based in Tuckahoe, N.Y., by reporting a fraction of the union carpenters they employed, using non-union labor and destroying payroll records. UBC members allegedly were threatened if they complained about the use of non-union workers.

"The Genovese family, the . . . most powerful and most secretive crime group, has been dealt yet another severe blow," said Barry W. Mawn, asst. director of the FBI's N.Y. field office. "It has been infiltrated in one of the most successful and significant undercover operations in law enforcement history." Mawn singled out one undercover agent, that went by the name "Big Frankie" who had "risked his safety on almost a daily basis" over 27 months. He often met secretly with gangsters at Rigoletto's Restaurant, owned by Parrello, in the Bronx. Big Frankie ate his way into the mobsters' confidence posing as the owner of a N.J. haulier, who could slice up hot cars and make the parts disappear.

The latest charges are the second major assault this year on the Genovese family, the largest of N.Y.'s 5 crime families with an estimated 225 members. The Genoveses reportedly flourished as prosecutors focused on the high-profile exploits of the Gambino crime family, run by the flamboyant John "Dapper Don" Gotti. The Genovese clan was controlled by Vincent "The Chin" Gigante, an anti-Gotti who roamed the streets of Greenwich Village in his pajamas and a bathrobe in an apparent attempt to lay the groundwork for an insanity defense. Gigante was sentenced to 12 years in jail in 1997, but still allegedly runs the family from his cell. In Apr., prosecutors arrested 45 reputed gangsters, including 33 alleged Genovese members and associates, in raids in N.Y., Fla., and Nev. [Bloomberg News 12/5/01; A.P.,Wash. Post, N.Y. Times, Daily News (N.Y.), Times (London); Independent (London) 12/6/01]

ROOFERS (RWAW)
Ohio Boss Stole $130,500 to Cover Gambling Debts
Robert D. King, Jr., admitted Dec. 11 that a gambling habit led him to embezzle $130,507 from the United Union of Roofers, Waterproofers & Allied Workers Local 86 in Columbus, Ohio. Specifically, he embezzled $88,757 from the local and $41,750 from local's employee benefit funds. During his arraignment before U.S. Dist. Judge George C. Smith (S.D. Ohio, Reagan), King pled guilty to 2 embezzlement-related charges. King stole the money from Aug. 1999 to Jan. 2001 by writing himself checks from Local 86's general and apprentice-training funds. King told the Columbus Dispatch, "I got hooked on gambling and got in over my head. I got deeper and deeper." He bet at casinos on the Ohio River and in Las Vegas and placed sports bets with bookmakers.

King served as the local's business manager and financial secretary for 6 years until the int'l removed him in Jan. 2001. Local 86 officers became suspicious of King because his sloppy record-keeping. The int'l union audited the local's books and confronted King with numerous discrepancies. King admitted stealing the funds, and the case was turned over to the Dep't of Labor. [Columbus Dispatch 12/12/01]

FIRE FIGHTERS (IAFF)
Virginia Boss Admits Theft, Must Repay $44,000 to Avoid Jail
Judge Johnny E. Morrison of the Circuit Court for the City of Portsmouth (Va.) sentenced Alan F. White, ex-treasurer of Int'l Ass'n of Fire Fighters Local 539, Dec. 5 to 12 months in jail on each of 4 embezzlement counts. The sentences were to run consecutively, but, Morrison suspended all jail time on the condition that White repay $44,000. Morrison also placed White on unsupervised probation until the final payment is made.

A state grand jury indicted White in June on 9 embezzlement counts. He pled guilty to 4 misdemeanor counts just before sentencing. In the plea deal, prosecutors withdrew 5 felony counts. White has repaid $13,000, including a lump-sum installment of $10,000, to the local, which is also known as the Portsmouth Prof'l Firefighters. He will make $500 monthly payments. White served as treasurer for 6 years and resigned in Apr. when an audit revealed discrepancies in the local's books.

Union officials, who were present in court, approved of the plea agreement and restitution plan.  Dues at the local start at about $240 a year. [Virginian-Pilot (Norfolk) 12/6/01]

MUSICIANS (AFM)
Missouri Boss Admits $18,500 Theft
Ex-boss of Am. Fed'n Musicians Local 150, James Steven Call, admitted embezzling $18,536.50 from the Branson, Mo., based local which represented entertainers in Mo., Kan., Okla., and Ark. He entered a guilty plea Nov. 29 to a one-count information before U.S. Magistrate Judge James C. England, and U.S. Dist. Judge Ortrie D. Smith (W.D. Mo., Clinton) will sentence Call at a date to be determined.

The scheme ran from Apr. 1997 to Mar. 1999. The local was placed in trusteeship by the int'l union in 1995 because of financial difficulties; as the the trusteeship was ending, int'l trustee Theresa Gafford made a poor judgment of character and groomed Call to run the local. He was elected president and secretary-treasurer in Apr. 1997. In an apparent cost-cutting move, Call relocated the local's office to his leased house on about May 1, 1997. He received no salary from the local, but the local's board agreed to pay him $100 for rent and utility-related costs of running the local out of his home plus any expense he incurred in the course of his work for the local.

Call did not have a personal checking account during the period of the scheme. Instead, Local 150 had a single checking account and Call used it as joint account. He reportedly wrote checks to himself, his disabled wife, other relatives, and cash for his personal benefit. According to the plea agreement he also used the checking account for personal groceries, restaurant meals, books, magazines, compact disks, videos, household supplies (e.g., diapers, toothpaste), school pictures, toys, fishing gear, clothing, cable, and dues for memberships in the Int'l Ass'n of Elec. Inspectors and the Building Code Ass'n. Further, while the local's office occupied one room of the house, the union paid Call's full rent and electric, sewer, trash, and water bills in excess of the agreed $100 amount.

A total of more than 300 checks were involved. Also, he admitted to making false entries on check stubs and monthly financial reports to conceal the personal nature of some of the expenses. In total, he took $21,936.50 from the union account for his personal use but deposited $3,400; thus, the net embezzlement was $18,536.50. Call was represented by a public defender, R. Steven Brown. Call agree to make full restitution to the union and has already begun doing so. Call was removed from office on Mar. 1999 by the int'l union. The int'l closed down the local in 2000 and assigned its members to Local 257 in Nashville.  [USAO W.D. Mo. 12/17/01; DOL 11/29/01]

West Virginia Boss, Wife Accused of $15,600 Theft
A federal grand jury indicted Thomas C. "Tom" Bailey, president of Am. Fed'n of Musicians Local 136 in Charleston, W. Va., and his wife for embezzling some $15,601 from union coffers. Bailey's wife, Deborah S., was office manager for the local. Their theft of dues and other revenues allegedly occurred between Jan. 1997 and June 5, 2001. The union president is also accused of filing a false annual financial report with the Dep't of Labor in Jan. 2001. Bailey was elected president of Local 136 in 1985, after previously serving as vice president. He was reelected in Jan. 2001.

Bailey, a saxophone player, was a longtime organizer of a local event called the "Charleston Sternwheel Regatta." Last year, Bailey alleged that the now-defunct Charleston Festival Comm'n owed Local 136 nearly $10,000 for the 1997-99 Regattas. However, unlike other vendors owed by the Comm'n, Bailey could not produce receipts for the debt when asked to by city officials. The Comm'n collapsed under mounting debts, and was replaced by the Charleston Regatta Comm'n. Bailey served on the boards of both organizations.

U.S. Magistrate Judge Mary E. Stanley rule Dec. 13 that taxpayers will provide the defense lawyers for Baileys. At the arraignment, Stanley suggested, however, prosecutors may wish to seize the assets of the Baileys if they are convicted, and said, "The court has approved appointed counsel to preserve their assets." Stanley set Feb. 13 trial dates for the Baileys, who are represented by different lawyers in the case. She then released the couple on bail. Normally, criminal defendants must avoid potential witnesses and alleged victims. But Stanley allowed Tom Bailey to resume his duties at Local 136 under one condition. "The only person you should be discussing this case with is your attorney," she said.[Charleston (W. Va.) Gazette 12/6, 12/14/01]

AUTO WORKERS (UAW)
Iowa Boss Admits $5,300 Theft
Terrance P. Baldridge, ex-financial secretary of United Auto Workers Local 1349 in Cedar Rapids, Iowa, pled guilty Dec. 3 to embezzling $5,307.34 from the local. From Oct. 1996 to July 2000, he wrote checks on union accounts and used the money for personal expenses including $1,150 for a bail bond for his son. He has agreed to make full restitution. He was indicted Oct. 5. U.S. Dist. Judge Michael J. Melloy (N.D. Iowa, H.W. Bush) set sentencing for Feb. 25.  [USAO N.D. Iowa 12/17/01; DOL 12/3/01]

QUOTABLE QUOTE
"Great to have you back. Just don't steal the silverware!" President Bush greeting Terry McAuliffe, Democratic Nat'l Comm. Chairman, Clinton crony, and high-profile figure in both the Teamsters money-laundering scandal and the recently settled $4.9 million Int'l Bhd. of Elec. Workers' benefit fund scandal involving shaky Fla. real estate deals, in a White House receiving line for the Dec. 2 Kennedy Ctr. Honors.

"I have no intention of doing that, sir." Kennedy Ctr. Trustee and McAuliffe's wife, Dorothy, in response. Mrs. McAuliffe was also linked to the real estate deal. [Wash. Post 12/11/01]

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

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AFL-CIO
Convention Sides Against Rank-and-File
Many wacky and outrageous items came out of the recently ended AFL-CIO convention in Las Vegas. For example, AFL-CIO boss John J. Sweeney said there was a "conservative conspiracy in Congress" and "[t]he sleaziness o the Republicans in the House is the shame of the nation." But one of most troubling moves was the AFL-CIO's Dec. 4 resolution, called by some the "Mohamed Atta Resolution," supporting amnesty for millions of illegal immigrants in the United States. A recent Ctr. for Immigration Studies survey said the majority of Americans, including union members, oppose amnesty.  It found that 55% of Americans oppose amnesty and 34 % support it. However, among union households, 60% oppose amnesty, while 32% support it. [CNSNews.com 12/4/01; Wash. Times 12/5/01]

TEAMSTERS (IBT)
DOL Attacks Tainted Seattle Election
The Dep't of Labor filed suit Dec. 7 in U.S. Dist. Court for the W. Dist. of Wash. against Int'l Bhd. of Teamsters Local 174 seeking to set aside the local's Nov. 21, 2000, election of president, secretary-treasurer, and trustee. The case involves the denial of the voting rights of new members for whom the employer had not deducted sufficient dues and initiation fees or for whom adequate amounts had been deducted but not forwarded to the Seattle-based local. DOL's probe found that of the money received by the local, not all deductions were posted to membership records, rendering some members ineligible to vote. Additionally, other members were permitted to vote who were not current in dues or initiation fees, an unequal application of the union's constitution which states that eligibility to vote is dependent on payment of dues and fees. The local is reportedly surprised by the suit. Tim Sullivan, Local 174's business agent, said the current union administration was not in office at the time of the vote and will oppose the charges. [DOL 12/7/01; BNA 12/17/01]

CARPENTERS (UBC)
Indiana Boss Admits $47,000 Theft (edited 01/16/02)
Robert D. Meyer, ex-secretary-treasurer of United Bhd. of Carpenters Local 1481 in Gary, Ind.,  pled guilty to a one-count information charging him with embezzling $47,346.40 in union funds. He was charged Nov. 19. Meyer stole the funds by using the local's ATM card for personal use over a two-year period.  On what the funds was spent was not determined.  U.S. Dist. Judge Robert L. Miller, Jr. (N.D. Ind., Reagan) set sentencing for Mar. 26. [DOL 12/6/01; USAO N.D. Ind. 12/28/01]

Indianapolis Dues Collector Gets 10 Months Confinement for $29,600 Theft (edited 01/16/02)
U.S. District Chief Judge Larry J. McKinney (S.D. Ind., Reaga) sentenced confessed union embezzler, Michelle T. Spragur Nov. 30 to 10 months home confinement with electronic monitoring and 5 years probation. The ex-bookkeeper/office secretary pled guilty July 13 to two counts of embezzling a total of $29,673 from United Bhd. of Carpenters Locals 364 ($20,641) and 1124 ($9,031) in Indianapolis and two counts of destroying union records. She was also ordered to make full restitution to the locals. She was not fined. Shw as barred from working for a union or holding union office for 13 years. A grand jury indicted Spragur Apr. 18 on two counts each of union embezzlement, falsification of union records, and destruction of union records. She reportedly took the funds for her personal use. She allegedly falsified union records to cover her thefts and then destroyed certain records when she left the locals. From 1995-98, as a secretary for both locals, she was responsible for collecting union dues. [DOL 11/30, 7/13/01; USAO S.D. Ind. 4/18, 11/30/01]

STEELWORKERS (USWA)
Northeast Ohio Boss Admits $21,600 Embezzlement
Stephen T. Hanlon, ex- secretary-treasurer of United Steelworkers of Am. Local 01-4564-S in Girard, Ohio, pled guilty Nov. 16 to embezzling $21,657 in union funds. He was charged Nov. 2. [DOL 11/16/01]

Virginian Admits to False Pretenses Charge, Stole $13,700
On Nov. 30, Judge Robert W. Curran of the Circuit Court for the City of Newport News (Va.) accepted a plea agreement from Stanley Coppedge, ex-grievance person for United Steelworkers of Am. Local 8888 in Newport News. Coppedge pled guilty to petty larceny, a Class 1 misdemeanor, in violation of Va. Code § 18.2-178 (obtaining money or property by false pretenses). Curran sentenced Coppedge to one year incarceration, suspended as long as he remains in good behavior and makes restitution of $13,761.67. Coppedge charged July 9 of defrauding the Newport News Shipbuilding Co. and/or Local 8888. [DOL 11/30, 7/9/01]

IRON WORKERS (BSORIW)
Eastern Pennsylvanian Charged Admits $7,600 Theft
On Nov. 15, in the Berks County (Pa.) Court of Common Pleas, Kathleen L. Frost, ex- bookkeeper of the Int'l Ass'n of Bridge, Structural, Ornamental & Reinforcing Iron Workers Local 420 in Reading, pled guilty to one count of theft by unlawful taking and one count of theft by failure to make required disposition of funds received. She was sentenced to 2 years probation. The theft charges, brought on Aug. 14, alleged that Frost took $7,653.46 from the local. [DOL 11/15, 8/14/01]

AUTO WORKERS (UAW)
East Central Illinois Boss Gets 12 Months Supervised Release for Theft
On Nov. 29, 2001, in Edgar County (Ill.) court, Judith E. Cline, ex-secretary-treasurer of United Auto Workers Local 2343 in Paris, Ill., pled guilty to a one-count information charging her with misdemeanor theft of $300. She was sentenced to 12 months of supervised release and ordered to make restitution of $900 to the union. The charges were brought following an investigation by the Dep't of Labor. [DOL 11/29/01]

Two Michigan Bosses Charged with Embezzling $10,800 (information added 3/6/02)
On Dec. 7, U.S. Magistrate Judge Steven Pepe (E.D. Mich.) signed a criminal complaint that charging Isador Hampton and Willie Lyons, ex-president and financial secretary, respectively, of United Auto Workers Local 835 in Warren, Mich., with embezzling union funds.

According to an affidavit in support of probable cause from Dep't of Labor investigator Anthony Fritz, Hampton received approximately $10,389 in union funds between Mar. and Sept. 2000 as compensation to which he was not entitled.  Allegedly, Hampton knowingly received and cashed for his own use, nine checks drawn on Local 835's account as payment for unauthorized compensation and expenses as follows :$1,099 for unauthorized salary, $1,300 for duplicate salary, $1,040 for duplicate vacation pay, $400 for advance salary, $750 for undocumented expenses, $3,200 for unknown expenses, and $2,600 unexplained. Similarly, Lyons allegedly obtained $500 in unauthorized expenses via four checks. In DOL interview, Lyons admitted that he was not entitled to the $500 and offered to make full restitution.

Hamption was president from 1989 to 2000, and Lyons was financial secretary from March to June 2000.  Local 835 ceased to exist in June 2000 when it merged into UAW Local 771 of Detroit by order of the international UAW. [USAO E.D. Mich. 12/18/01; DOL 12/7/01]

GUARD UNIONS
Southeast Regional Bosses Accused of Falsifying Records
On Nov. 29, in U.S. Dist. Court for the N. Dist. of Ala., Roy Summerlin and Thomas Hall, ex- treasurer and vice-president, respectively, of the independent Guards union's Tenth Reg'l Council, were charged in 2 separate informations with making false entries in required union records. The council is headquartered in Nashville. [DOL 11/29/01]

TRANSIT UNION (ATU)
DOL Wins Court Order Invalidating International Union's Elections
On Mar. 28, 2001, U.S. Dist. Judge Joyce H. Green (D.D.C., Carter) granted the Dep't of Labor's motion for summary judgment and declared the Amalgamated Transit Union's 1998 election of int'l officers void. DOL's suit charged that the ATU, headquartered in Washington, D.C., imposed an unreasonable candidacy qualification when it applied a meeting attendance requirement for the nomination and election of delegates to its 1998 int'l union convention. DOL's Office of Labor-Mgmt. Standards Washington District Office conducted the investigation leading to the complaint and will supervise the remedial election ordered by the court. [DOL 3/28/01]

ATU elects its int'l officers by means of a triennial int'l convention, at which delegates elected by ATU local unions convene at a particular location to nominate and cast ballots for int'l union officers. ATU's 52nd triennial int'l convention took place in Chicago between Sept. 29 and Oct. 3, 1998 and twenty-one officer positions were up for election. As to 3 of the positions (the 4th, 10th, and 18th int'l vice president positions), there were two nominees per position. All other 18 positions were uncontested. The results of the contested elections were as follows: 4th IVP, incumbent Jackie Breckenridge defeated challenger Marcellus Barnes 413 to 120; 10th IVP, incumbent Don Hansen defeated challenger Richard Stomper 464 to 19; 18th IVP (no incumbent running) Charles Pettus defeated Brenda Rayford by a tally of 408 to 101.

The bylaws of every ATU local provide that the president and financial sec'y of the local are entitled to serve as ex officio delegates to the int'l convention. If the local union is entitled to more than 2 delegates, other local union officers serve as ex officio delegates. As a result of the use of local union officers as ex officio delegates, the qualifications necessary to become a local union officer are also qualifications necessary to become a convention delegate. Section 14 of ATU's Constitution governs the election of local union officers. Members of local unions not covered by federal labor law are required to satisfy 2 qualifications to be eligible for local union office: a two-year "good standing" requirement and a "meeting-attendance" requirement. The meeting-attendance requirement is that the member must have attended 6 local meetings in each of the 2 years preceding and including the nomination meeting. Local union meetings are required to be held at least once every month. Members of local unions covered by federal labor law are also required to satisfy a 2-year "good standing requirement." In addition, the ATU Constitution permits such locals to either adopt a more lenient meeting-attendance requirement, requiring attendance at six local union meetings during the 1-year period preceding the convention; or adopt no meeting-attendance requirement at all. Different locals have follow different options.

Although many candidates for convention delegate are subject to meeting-attendance requirements, an ATU member seeking to run for int'l office need not satisfy any meeting-attendance requirement in order to be eligible. The only candidacy qualification for int'l union office is that the would-be candidate be a member in 2 years' continuous good standing and obtain the nomination of a delegate.

Both before and after the 1998 convention, ATU Local 241 (Lancaster, Pa.) member Richard Stomper filed a written complaint with the Sec'y of Labor, under 29 U.S.C. § 482(a), and which concerned, inter alia, the validity of the above-described meeting-attendance requirements as applied to the election of local officer/delegates. After conducting an investigation, the Dep't of Labor filed suit alleging that ATU violated 1) 29 U.S.C. § 481(e) when it and local unions affiliated with the ATU imposed unreasonable candidacy qualifications which rendered a significant portion of their memberships ineligible to be nominated and elected as delegates to the int'l convention; 2) 29 U.S.C. § 481(e) when the candidacy qualification requirements for becoming a delegate to the int'l convention were not applied in a uniform manner; and 3) 29 U.S.C. § 481(a)when delegates to the int'l convention who were not elected by secret ballot were allowed to participate in the nomination and election of the int'l union officers. DOL asked for the elections of all int'l officers to be declared null and void, and for the Court to order ATU to conduct new elections under DOL supervision. Stomper, and four other ATU members, have intervened on behalf of DOL.

Green held that DOL was entitled to summary judgment on the claim that the qualifications for office were not "uniformly imposed." Plus, ATU conceded that several of the int'l convention delegates were not "chosen by secret ballot." Therefore, because ATU's violations of the Labor-Mgmt. Reporting & Disclosure Act of 1959 "may have affected" the election for every int'l union officer, Green ordered new elections be held under DOL's supervision. [Chao v. Amalgamated Trans. Union, 141 F. Supp. 2d 13 (D.D.C. 2001)]

SHEET METAL WORKERS (SMW)
New Orleans Embezzler's Wife Denied Share of His Pension
U.S. Dist.. Judge Stanwood R. Duval (E.D. La., Clinton) ruled Nov. 28 that Audrey Gaudet, the wife of a union boss who had been convicted of embezzling funds from retirement plans of the Sheet Metal Workers Int'l Ass'n , cannot collect the pension funds that her husband accrued because he embezzled more than he was owed by the plan. To allow Gaudet "in essence, to receive double benefits under the plan could penalize innocent beneficiaries and would defy common sense and the fundamental protections" under the Employee Retirement Income Security Act (ERISA).

Gaudet's husband Stanley Gaudet was president of the Sheet Metal Workers Local 11 in New Orleans. Between 1983-89, he embezzled funds from the local and its employee benefit plans and was convicted in 1991 on 22 counts of embezzlement and theft. He was sentenced to more than 18 years in prison. The district court ordered him to pay restitution in the amount of $2,750,539 to SMW by relinquishing his rights to the pension funds. In 1991, the Sheet Workers' Nat'l Pension Fund denied the embezzler's request for retirement benefits, saying it would breach their fiduciary duty to pay a pension benefit to someone who embezzled more than he was owed in benefits.

In May 2001, the Gaudets entered into a property separation agreement, which created a qualified domestic relations order and established Audrey Gaudet as the alternate payee of half of Stanley Gaudet's pension benefits "due and owing." She claimed the domestic relations order entitled her to half of the benefits that accrued to her husband under the retirement plans. She claims that she never knew about her husband embezzling funds.

However, Duval said "[under] a logical interpretation of that order, if Stanley is not entitled to any benefits under the pension plan (because he has already received more than his pension), Audrey can not claim any independent right to more benefits under the plan." Duval added that this is the first situation where "a fiduciary breached his duty to the plan itself, stole more money than he would be entitled to under his pension plan, and then claimed entitlement to even more retirement funds from the plan (whether the funds be for himself or his spouse)."

Audrey Gaudet argued that ERISA's anti-alienation provision prohibited an offset of her husband's pension benefits against the amount he owed. The court said there was no issue of offset, since the pension fund had no obligation to Stanley Gaudet after he embezzled from the plan. [BNA 12/13/01]

LABOR LAW REFORM
Union Protesters Crash Right-to-Work Meetings
The battle over whether union officials should be able to force workers to join a union and pay dues escalated Dec.12  when AFL-CIO protesters used bullhorns to interrupt a meeting of right-to-work advocates at the Heritage Fdn. near Capitol Hill.  More than 30 demonstrators stormed the lobby of the Heritage Fdn., staging a sit-in outside the door of the auditorium and using bullhorns and chants to interrupt the meeting until Capitol Police arrived.

As right-to-work advocates listened to R. Marc Nuttle, the chief strategist of Oklahoma's recent right-to-work initiative, describe the success of the campaign, AFL-CIO members and supporters crashed the meeting. Using bullhorns, protesters chanted, "Hey Hey, Ho Ho, Right To Work Has Got To Go." and "Right To Work Means Work For Less." Steve Rosenthal, AFL-CIO political director, led the protest.

Protesters peacefully filed out of the Heritage Fdn. lobby when Capitol Police arrived. A picket line was formed outside the building and protesters marched and chanted but quickly left the premises. There was no report about whether any criminal or civil trespass charges will be brought. [CNSNews.com 12/12/01]

TRANSPORT WORKERS (TWU)
DOL Sued Arizona Local to Overturn Tainted Election
The Dep't of Labor filed suit Sept. 5 in the U.S. Dist. Court for the Dist. of Ariz. against Transport Workers Union Local 580. DOL's probe into the local's Nov. 1, 2000 election found that the local failed to mail notices of election to members at their last known home address and failed to accurately count the votes that were cast. The suit seeks a new election under DOL supervision. [DOL 9/5/01]

PLUMBERS (UA)
Pennsylvania Bosses Accused of Campaigning on Local's Time
The Dep't of Labor filed suit Aug. 30 in the U.S. Dist. Court for the W. Dist. of Pa. against United Ass'n of Plumbers & Pipefitters Local 354 in Youngwood, Pa. DOL's investigation into the local's Apr. 7 election found that, during the 2-week period prior to the election, the incumbent business manager, along with business agents, campaigned to members at several work sites while on time paid for by the local. DOL's complaint seeks a new election for 4 positions under DOL supervision. [DOL 8/30/01]

DOL Seeks New Election at California Local
The Dep't of Labor filed a complaint May 4 in the U.S. Dist. Court for the E. Dist. of Cal. against the United Ass'n of Plumbers & Pipefitters Local 442 in Stockton, Cal.. DOL's investigation into the local's Dec. 16, 2000 election uncovered that a candidate violated the local's bylaws when he campaigned for office by "meeting and greeting" voters on election day within a prohibited area. The complaint seeks a new election under DOL supervision for one local union officer position. [DOL 5/4/01]

TEAMSTERS (IBT)
DOL Wins Subpoena Dispute over Honolulu Local
On Aug. 15, the U.S. Dist. Court for the Dist.t of Haw. ruled in favor of Dep't of Labor in a subpoena enforcement action involving Int'l Bhd. of Teamsters Local 996 and an DOL officer election investigation under the Labor-Mgmt. Reporting & Disclosure Act of 1959. The court reversed a magistrate's order to quash DOL's subpoena of local election ballots. The court ruled that nothing in LMRDA limits the scope of DOL's investigatory reach (citing 29 U.S.C. §§ 482, 521). The court also ruled that DOL's demand to review the ballots was not irrelevant or immaterial to the investigation. [DOL 8/15/01]

MACHINISTS (IAM)
DOL Fights for Two Disenfranchised Dissident Candidates
The Dep't of Labor brought suit July 23 against the Int'l Ass'n of Machinists District Lodge 141 in U.S. Dist. Court for the N. Dist. of Ill. DOL's investigation determined that at least two insurgent candidates for the office of assistant general chairperson were improperly deprived of their opportunity for candidacy. District Lodge 141 is based in Burlingame, Cal., and has members nationwide who are airline baggage handlers. DOL's probe, conducted by the the Office of Labor-Mgmt. Standards Pittsburgh Dist. Office, determined that the insurgents secured the nominations/endorsements from the required minimum of four local lodges, but the int'l president ordered that two of these nominations/endorsements be reconducted, contrary to the recommendation of his own investigator. DOL's suit seeks to require the union to validate the original endorsement results.

California Local Accused of Permitting Ineligible Candidate to Run for Union President
The Dep't of Labor filed a complaint May 11 in the U.S. Dist. Court for the N. Dist. of Cal. against the Int'l Ass'n of Machinists Local Lodge 2228 in Sunnyvale, Cal. DOL's investigation into the lodge's Dec. 2, 2000 election disclosed the that lodge permitted an ineligible candidate to run for president. The complaint seeks a new election under DOL supervision. [DOL 5/11/01]

PROFESSIONAL ENGINEERS (SCPEA)
DOL Sues Southern California Local over Tainted Elections
The Dep't of Labor filed suit June 14 against the S. Cal. Prof'l Eng'g Ass'n (SCPEA) in the U.S. Dist. Court for the Cent. Dist. of Cal. DOL's investigation of SCPEA's Dec. 20, 2000 officers election found that the union improperly disqualified the winning vice-presidential candidate and improperly permitted an unqualified (and winning) candidate to run for executive board member-at-large. The union represents workers in Huntington Beach and Long Beach, Cal. DOL's suit seeks installation of the improperly disqualified vice presidential candidate to his office and new nominations and a new election for the executive board member-at-large position under DOL supervision. [DOL 6/14/01]

Rich Devens and Steve Weixel were among a field of newly elected SCPEA officers, but Devens and Weixel were later declared ineligible because their candidacies violated SCPEA's constitution. Devens was disqualified as vice president because he sat on the nominating committee prior to his election. Weixel was declared ineligible to become an at-large officer because he had not been a union member for two years and thus was not considered to be in good standing.

Another candidate, Terry Dunder, was second in votes behind Weixel in a race that would seat two of four candidates. He was temporarily stripped of his seat pending a new election because the union's ruling council determined he might not have won in a three-man race.

The contested elections are just the latest battleground in a highly political skirmish between two SCPEA factions. Devens, Weixel and Dunder, who filed the original complaint with DOL earlier this year, have questioned the motives of the incumbent leaders who disqualified them. But ex-SCPEA president Doug Potter, who now sits on the council, said the union followed the rules set forth in its constitution. He said the council has yet to decide whether to settle or fight Devens' appointment in court. SCPEA President Steve Dunham affirmed his support for Devens, Weixel, and Dunder. "I've maintained all along these guys should have been put in," he said. [Press-Telegram (Long Beach, Cal.) 6/21/01]

LONGSHOREMEN (ILA)
Charleston Local Defies Int'l Union, DOL Goes to Court to Force New Local Election
The Dep't of Labor filed suit June 7 in the U.S. Dist. Court for the Dist. of S.C. against Int'l Longshoremen's Ass'n Local 1422 in Charleston, S.C. DOL investigated the local's Jan. 28, 2000 officer election and determined that the local violated ILA's constitution by permitting members who fell within the category of individuals employed in supervisory positions to run for and hold the office of trustee. ILA has ordered Local 1422 to conduct a new election for the office of trustee, but Local 1422 failed to do so. DOL's suit seeks to have the court order a new election under DOL supervision. [DOL 6/7/01]

In a related development, on Aug. 14, the court granted DOL's motion to dismiss a complaint filed by Leonard Riley, Jr., and Charles Brave, winning candidates for trustee in Local 1422's tainted Jan. 2000 election. The two bosses sought to enjoin ILA from requiring Local 1422 to conduct a new election. In addition to DOL's June 7 suit, it intervened in the private civil action to protect the DOL's exclusive jurisdiction over such federal labor law matters governed by the Labor Mgmt. Reporting & Disclosure Act of 1959. [DOL 8/14/01]

MAIL HANDLERS (NPMHU) / LABORERS (LIUNA)
Court Orders Dallas Local to Rerun Tainted Election
On Apr. 26, U.S. Dist. Judge Barbara M.G. Lynn (N.D. Tex., Clinton) granted the Dep't of Labor's motion for summary judgment and ordered Local 311 of the Nat'l Postal Mail Handlers' Union, a division of the Laborers' Int'l Union of N. Am., to rerun their 1999 officer election under the supervision of DOL. DOL's suit charged that the Dallas-based local improperly disqualified member Albertus Lewis, Jr., from running for local vice-president and Dallas Bulk Mail Center administrative vice president based on his failure to pay dues for single month, June 1998, during the 2-year period prior to nominations. However, DOL's probe found that the member had earnings during the month in question and was subject to a collective bargaining agreement between the U.S. Postal Serv. and the local union which provided for dues check off. Lynn agreed with DOL's position that, under the law, the failure of the U.S. Postal Serv. to deduct dues could not be used to declare the member ineligible to run for office. All of Lewis' appeals to union bosses were denied. [DOL 4/26/01; Chao v. Local 311, Nat'l Postal Mail Handlers' Union, No. 3:99-CV-2349-M, 2001 U.S. Dist. LEXIS 5287, at *1 (N.D. Tex. Apr. 26, 2001)]

POSTAL WORKERS (APWU)
DOL Seeks to Overturn Tainted Elections at New Jersey Local
The Dep't of Labor filed suit Mar. 30 in U.S. Dist. Court for the Dist. of N.J. against the North Jersey Area Local of the Am. Postal Workers Union. DOL's probe of the local's Apr. 18, 2000 election which disclosed the union used union resources to promote incumbent candidates. The complaint seeks a new election under DOL supervision for nine local union officer positions. [DOL 3/30/01]

SERVICE EMPLOYEES (SEIU)
St. Louis Local Conducted Unfair Nominations
On Mar. 29, 2001, the U.S. Dist. Court for the E. Dist. of Mo. issued an order agreeing in part with the Sec'y of Labor's complaint challenging 1998 elections in Serv. Employees Int'l Union Local 50 based in St. Louis. The Dep't of Labor's complaint challenged both the reasonableness and application of a petition requirement for nomination to office. The court held that the requirement itself was reasonable, but agreed that it was not applied fairly and directed DOL to submit a proposed order for new elections under the supervision of the Sec'y. The DOL's Office of Labor-Mgmt Standards St. Louis Dist. Office will supervise any remedial election. [DOL 3/29/01]

ELECTRICAL WORKERS (IBEW)
Michigan Boss Used Union Resources for Reelection
On Mar. 27, the U.S. Dist. Court for the W. Dist. of Mich. approved an agreement between the Dep't of Labor and the Int'l Bhd. of Elec. Workers's Local 1106 in settlement of DOL's Dec. 2000 suit against the local. DOL filed suit against Local 1106, located in Mason, Mich., after an investigation found that in the local's June 2000 officer election, the incumbent business manager/financial secretary used union resources to produce campaign mailings. Under the Stipulation of Settlement and Order issued by the court, the DOL will supervise an immediate new officer election in Local 1106 and certify the names of those elected to the court. [DOL 3/27/01]

DOL Seeks New Election at Honolulu Local
The Dep't of Labor filed a suit June 4 in U.S. Dist. Court for the Dist. of Haw. against Int'l Bhd. of Elec. Workers Local 1357 seeking a new election for business manager-financial secretary under DOL supervision. DOL's investigation found that the Honolulu-based local violated members' federal right to support the candidate of their choice. Allegedly, the local wrongfully disqualified a member/candidate on the basis of union discipline. Allegedly, the unidentified discipline was imposed in violation of the Labor-Mgmt, Reporting & Disclosure Act of 1959. LMRDA's "Safeguards against Improper Disciplinary Action" provision mandates: "No member of any labor organization may be fined, suspended, expelled, or otherwise disciplined except for nonpayment of dues by such organization or by any officer thereof unless such member has been (A) served with written specific charges; (B) given a reasonable time to prepare his defense; (C) afforded a full and fair hearing." 29 U.S.C. § 411(a)(5). [DOL 6/4/01]

TEACHERS
New Jersey Unionists Held in Contempt, Sent to Jail
"You are holding the keys to the jail cell," said N.J. Superior Judge Clarkson S. Fisher, Jr., as he sentenced some 43 striking teacher-union members from the Middletown (N.J.) Township Educ. Ass'n., to a mere week in jail Dec. 4 for defying a court back-to-work order, joining 4 unionists already jailed. N.J. state law forbids public employees to strike. Besides jailing 47, Fisher declined to send 22 to jail because of a variety of family and medical problems. They were still found in contempt, however. Two other teachers told the judge they would obey his order and return to work.

This is the second strike in three years in the Middletown district. The most recent contract expired June 30. The two sides postponed bargaining after the Sept. 11 massacre, which killed more than 30 Middletown residents. Discussions resumed Nov. 30, but after several hours of meetings, union bosses declared the strike. Hundreds of strikers were served with warrants over the Dec. 1-2 weekend and were called into court alphabetically. Douglas Kovats, Middletown Bd. of Educ. attorney asked whether they were aware of the judge's back-to-work order, whether they had complied, and whether they planned to comply.

There was a "collective sobbing of teachers" who were "stunned by the start of the jailings," reported the N.Y. Times. Allyson Bajor, 12, stood crying in a hallway outside the courtroom as her mother, Diane, was hauled away in handcuffs for being in contempt of court. However, hundreds of other striking unionists turned defiant and exuberant.

Fisher sought to avoid the jailings at least 3 times by offering to order around-the-clock contract bargaining under his supervision if the unionists obeyed the order he issued on the first day of the strike, Nov. 29, and returned to Middletown's 17 schools immediately. But MTEA lawyer, Sanford Oxfeld, rejected the offer. Striking unionist said they would not return to class until MBE signed a "fair" contract settlement.

Unionists acknowledged that most Middletown residents don't support them. Lisa Rosado, a fourth-grade teacher, said she was largely rebuffed by residents when she telephoned them seeking support a few weeks ago. "I think they all hate us," Rosado told the Bergen County Record. "They think we're being greedy. They think we're being brainwashed." New Jersey teachers salaries are the highest in the Nation; they are 31% above the national average, according to census figures. The average annual teacher's salary in N.J. is $51,468, $2,304 higher than in the second state, Conn..

Unionists denounced MBE during the judge's questioning. Each time Fisher found small groups in contempt and deputies led them out of the courtroom for processing, the 150 unionists in the courtroom stood and applauded their sentenced colleagues. Fisher, called "remarkably tolerant" by the Bergen County Record,did nothing to silence these demonstrations.

The union prepared their minions for incarceration. Unionists who were sent to jail came to court dressed for comfort in jeans, T-shirts, and sweat shirts. A union flier had advised them to bring $50 to use at the jail commissary. "You may be incarcerated with [non-union] members," the flier said. "However, an effort will be made to keep you in an area separate from hardened criminals. . . . At all times, be cooperative. Do not argue with anyone. " Gary Hilton, the jail director said the unionists were to be housed two to a cell, with a toilet, sink, and bunk beds. Lights go out at 9:45 p.m. and the wake-up call is at 6 a.m. "It will not be pleasant. They will not enjoy their stay with us," Hilton said.

The atmosphere outside was "festive." Three members of the marching band of the Middletown North High School came with saxophone, trumpet, and clarinet, and played pep tunes. About 10 members of the football team from Middletown South High School, which won a state championship game Dec. 1, came in support of the head coach and an assistant coach, both now in jail. Other unionists gathered outside a rear door and cheered handcuffed colleagues each time deputies led them to vans for the trips to the Monmouth County Jail which can only hold 300 inmates. Jail officials said they were prepared to use "temporary housing," if necessary, to incarcerate more unionists.

Despite the rally, MBE attorney Michael Gross said that about 100 teachers returned to work, on Dec. 5 up from 50 on Dec. 4. Union boss Diane Swaim, said she doubted that 100 had split with the union, but she did not know how many had gone back to work.

The judge's action, requested by MBE, is the first jailing of striking teachers in N.J. since 1978, when 26 teachers spent 26 days behind bars in Camden. Frank Belluscio, a spokesman for the N.J. Sch. Bds. Ass'n, said teacher walkouts are rare, "mostly because they're illegal." [Record (Bergen County, N.J.), N.Y. Times 12/5/01]

The union called a truce Dec. 7, without a new contract and after 228 unionists were jailed. Negotiations were postponed and the union ordered teachers back to work on Dec. 10. However, bitterness lingered. Some teachers chose to defy a joint request by the MBE and MTEA that they refrain from discussing the strike during class.

"The teachers were giving the students a lot of attitude," said Ashley Petrisky, 16, a sophomore at Middletown North High School. "You could tell they didn't want to be here. " Some students said their teachers gave a minimum effort. "We really didn't do much," said Sean O'Brien, 15. "My teachers handed out a couple work sheets. It was really boring. " "My teachers taught a little bit, but it was mostly a review," said Mark Lyon, 17, a junior.

Not all were back at work even. Three resigned in protest, and two reportedly walked off the job during the first day back. Schools Superintendent Jack DeTalvo said attendance among teachers and staff was 95%. DeTalvo said that teachers were given orders to "get back to the curriculum," and that administrators were sent around to classrooms to ensure that lessons were being taught.

Some parents who came to pick up their kids at dismissal at Middletown North said the teachers are out of step with the times. "They hurt the kids is all they did. And for what? " asked Bill Brown, waiting in his car outside the high school to pick up his daughter. "The way they came out in handcuffs, with their hands raised, they showed the kids it was cool to go to jail. You want somebody like that teaching your kids? "

Marc Sim, 17, a senior was resentful. "They want to use us as leverage -- as a pawn in the game," he said of the teachers.

"My husband is a union pipefitter, so I have nothing against unions," parent Cindy Getto, explained, as she waited for her daughter. "But we have to pay for part of our health benefits. This has been going on way too long. " Health benefits has been a major sticking point in the negotiations and has been for many years noted Getto. [Record (Bergen County, N.J.), 12/11/01]

South Florida Boss Pleads Guilty
Longtime Broward (Fla.) Teachers Union president Tony Gentile admitted Nov. 30 that he arranged for a sexual tryst with an Internet pal he thought was a 14-year-old girl. Gentile, who resigned last month after 22 years as head of the BTU, faces a likely prison term after pleading guilty to federal charges of attempting to entice a minor into a sex act and sending child pornography over the Internet. Gentile was arrested July 26 in a sting that started four months earlier in Ala. and ended at a Circle K store in Ft. Lauderdale, where Gentile discovered that the girl he had been corresponding with was actually an undercover cop. He was indicted by federal grand juries in Florida and Alabama.

Gentile, 54, who once regarded as a powerful political force in Broward County, took deep breaths as he stood before U.S. Dist. Judge William P. Dimitrouleas (S.D. Fla., Clinton).  According to the plea agreement, the ex-union boss would face between 46 and 57 months in prison. However, Dimitrouleas is not bound by that agreement and could sentence Gentile to as many as 20 years at his sentencing in Feb. 2002. Gentile, joined by his wife, declined to comment after the proceedings. He has 2 grown children and one child in high school. Gentile, who led a "politically active" union in the nation's fifth-largest school district, has served on the boards of the NAACP, Nat'l Conference of Christians & Jews, and the United Way.

John Ristow, spokesman for BTU, said the union has made a strong effort to get past the incident, including asking for Gentile's resignation. BTU agreed to give Gentile $140,000 as part of a severance settlement. Ristow said the settlement was only what BTU's attorneys thought was owed to Gentile and what Gentile could potentially recover in court. Ristow said reaction to the payoff has been mixed. "People have come to me and said he should have gotten double the amount of money because he has worked for the union for three decades," Ristow said. "Others say he should get nothing because of what he did." [Sun-Sentinel (Ft. Lauderdale) 12/01/01]

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