LONGSHOREMEN (ILA) / TEAMSTERS (IBT)  / CARPENTERS (UBC)
Longshore Union Allegedly Infiltrated by Genovese
Federal prosecutors in Brooklyn accused imprisoned Genovese crime family boss Vincent "Chin" Gigante and seven associates Jan. 23 of infiltrating the Int'l Longshoreman's Ass'n. The Genovese used their control of the union to extort money from firms operating on the piers in the N.Y.C. metro area and in Miami, according to a 40- page racketeering indictment announced by U.S. Atty. Alan Vinegrad. Convicted in 1997, Gigante is serving a twelve-year sentence for racketeering, murder conspiracy, and related crimes. Gigante, known for muttering as he walked around Manhattan's Greenwich Village in a bathrobe, has allegedly continued to run the Genovese family from prison.

Prosecutors allege Gigante obstructed justice during previous trials "by feigning diminished mental capacity." According to prosecutors, "video and audiotapes of Gigante in prison show that Gigante is a fully coherent, careful and intelligent man. In short, he appears to have ceased feigning mental illness in jail." Gigante is an inmate at the U.S. Bureau of Prisons Med. Ctr. in Ft. Worth, Tex. His arraignment  on the new charges is scheduled for about Feb. 6.

Other defendants in the case are Ernest Muscatella, the alleged Genovese acting boss; Charles Tuzzo, an alleged Genovese captain; Michael Ragusa, an alleged Genovese soldier; and Gigante's son, Andrew Gigante, an alleged Genovese associate. The four were arraigned before U.S. Magistrate Judge Steven Gold. If convicted, they face as much as 20 years in prison for each racketeering and extortion charge. Liborio Bellomo, Thomas Cafaro, and Pasquale Falcetti were indicted in the case in 2001 and are awaiting trial. The eight are charged with conspiring to control ILA Local 1804-1 in N. Bergen, N.J., and the Metro. Marine Maintenance Contractors Ass'n, which represents repair firms.

In one case, Vincent Gigante allegedly ordered Falcetti to pick up a $45,000 extortion payment from the owner of a shipping repair firm that operated in Fla. and N.J. Andrew Gigante allegedly delivered the order. Allegedly, Falcetti picked up the money on Feb. 6, 2001, and gave it to a Genovese associate. Some of the defendants also conspired to defraud pension funds of ILA, the Int'l Bhd. of Teamsters, and the United Bhd. of Carpenters by forcing the unions to use a Genovese associate as their investment adviser, the indictment said. Allegedly, the associate "then 'kicked back' a portion of the fee to the Genovese family."

Prosecutors also charged that Cafaro and Muscarella "participated in a classic 'pump and dump' stock fraud scheme" involving shares of Orex Gold Mines Corp. Investors paid $6.8 million for Orex shares, prosecutors charged. The shares then fell from a high of $7.50 to 15 cents. [Bloomberg News 1/23/02]

TEXTILE EMPLOYEES (UNITE)
$77.5 Million Suit Against Union Wins Class Action Status
U.S. Dist. Judge Sidney H. Stein (S.D.N.Y., Clinton) granted class certification Jan. 8 to a suit brought by participants in the Int'l Ladies Garment Workers' Union death benefit fund who allege that the fund violated its fiduciary duties when it transferred $77.5 million of fund assets to the union, which is now part of the Union of Needletrades Indus. & Textile Employees. The fund was established in 1937 and included language prohibiting any withdrawals except for payment of benefits and administrative costs. In 1976, an amendment was added to ILGWU's constitution that permitted termination of the fund by the union's board. In 1997, the board terminated the fund and transferred the bulk of the fund's assets to a new death benefit fund. However, it also transferred $77.5 million of assets to the union itself, and $12.5 million of which was routed to a nonprofit corporation, 21st Century ILGWU Heritage Fund.

Stein granted the participants' and beneficiaries' motion for class certification, finding that the requirements for a class action were met. There were common questions such as whether the transfer to ILGWU violated ERISA; whether the documents governing the fund permitted the transfer; and whether the original fund was "terminated" within the meaning of ERISA. Reportedly, 100,000 to 132,000 participants and beneficiaries who could be included in the class. David S. Preminger of Rosen, Preminger & Bloom, N.Y, and Marc I. Machiz of Cohen, Milstein, Hausgeld & Toll, Washington, D.C., represented the retirees. Ronald E. Richman and Holly H. Weiss of Schulte Roth & Zabel, New York, represented the union. [BNA 1/22/02]

POSTAL WORKERS (APWU)
Union, Firms, Settle False Claims Suit for $2.2 Million
U.S. Atty. Thomas M. DiBiagio in Baltimore announced Jan. 17 that the Am. Postal Workers Union, Nat'l Health Servs., Inc., and United Payors & United Providers, Inc. will pay the government nearly $2.2 million to settle charges that they submitted false claims to the government, specifically the Office of Personnel Mgmt.

APWU, through APWU Health Plan, operates a health plan under the Fed. Employees Health Benefits Program. APWU is located in Washington, D.C. and its Health Plan is in Rockville, Md. NHS is provides health care cost containment services such as case management, pre-certification and utilization review and is located in Louisville, Ky. UP&UP is located in Rockville and provides access to its preferred provider network to reduce health care costs. Both companies were acquired in Mar. 2000 by BCE Emergis Corp. of Canada

The government's audit focused on health care cost containment contracts between the APWU Health Plan, NHS and UP&UP. From 1994-97, APWU contracted with NHS for case management and pre-certification services and paid for the contracts from its cost containment budget. During the same time, APWU contracted with UP&UP to obtain discounts associated with access to UP&UP's network and paid for the contracts using benefit expenses.

The defendants allegedly conspired to inflate these contracts with kickbacks that NHS and UP&UP paid to APWU. APWU then used the kickbacks to supplement its administrative expenses, in violation of its contacts with OPM and the budget ceilings imposed by Fed. Acquisition Regulations. APWU, NHS, and UP&UP have denied the allegations.

The suit was originally filed on behalf of the government by Andrea Kessler, a Va. resident, under a provision of the False Claims Act that allows private parties to sue entities that have submitted false claims to the government. FCA permits the recovery of treble the amount of actual loss to the government, plus civil penalties of $5,000 to $10,000 for each false claim. [USAO D.Md. 1/17/02]

FIRE FIGHTERS (IAFF)
Ohio Boss Accused of Taking $145,000
In Dec. 2000, ex-treasurer of Int'l Ass'n of Fire Fighters Local 639, Richard Adams, resigned suddenly when the local's bank accounts came up some $143,000 short. He then paid $65,000 in partial restitution for funds he allegedly embezzled from the Parma, Ohio based local since 1987.  Then on Jan. 17, Adams was charged with one count of federal bank fraud. The U.S. Atty.'s Office in Cleveland said Adams once made a $3,139 house payment with a union check. But, according to the Dep't of Labor, the union embezzlement totaled $144,939.46 and final restitution will be based on that amount. Because of a loophole in federal labor labor, a federal union embezzlement charge could not be brought since Local 639 is a public sector union.

Despite the local's request that the matter be resolved internally, Parma Law Director Tim Dobeck called in the FBI and DOL to investigate in Feb. 2001. Dobeck's move disappointed Cliff Taylor, then Local 639 president. Taylor said at the time that the local wanted to handle the matter internally because "our objective was to get the money and we're recouping most of it." Taylor has since resigned.

Dobeck said Parma detectives learned of the possible theft from fire dep't informants. Several members  were alerted to the missing funds upon noticing in an IAFF publication that Local 639 was behind in its dues to IAFF even though members were current. Dobeck said Parma detectives said they will continue to investigate if present or former bosses broke any laws by attempting to conceal missing funds. Reportedly, the local failed to file required state financial reports. [Plain Dealer (Cleveland) 1/18/02; DOL 1/17/02]

GOVERNMENT EMPLOYEES (AFGE)
Boss' Scams Cost D.C. Local $20,600
Ex-president  of Am. Fed'n of Gov't Employees Local 1812, Hope Butler, pled guilty Dec. 7 to a federal felony charge of making false statements. The plea related to her unlawful conduct while serving as president of the Washington, D.C. based local, which is linked to the U.S. Info. Agency, from 1996 to 2000. At the same time, Butler's sister-in-law, co-defendant Nadine Crump Butler pled guilty to misdemeanor first-degree fraud.  From about Mar. 1999 to Apr. 2000, Butler and Crump Butler engaged in a fraudulent scheme to extract funds from the local.

On numerous occasions, Butler presented blank local checks to other local bosses authorized to co-sign them, and obtained their signatures. Butler signed nine of those checks, totaling $14,250, to "Nadine Crump and Associates" or "Nadine Crump." To justify the checks, Butler caused invoices from "Crump & Associates" to be kept and maintained in the local's records. These invoices typically represented that Crump & Associates provided work related to grievances and employee issues, when, in truth, Crump Butler did not provide such services. Within days, these checks were endorsed by Crump Butler and cashed or deposited into her personal bank account or an account belonging to Butler. When funds were deposited into Crump Butler's bank account, she would soon thereafter write a check from that account, or provide cash, to Butler. Of the $14,250 fraudulently paid to her, Crump Butler routed at least $11,340 back to Butler.

Further, between Apr. and Aug. 2000, Butler prepared, signed, and submitted a fraudulent LM-3 form to the Dep't of Labor. The form stated that for 1999, Butler had not received  any monetary disbursements from the local, when, in truth, she had received at least $7,940 during that period via Crump Butler. Finally, Butler also admitted that while president, she wrote checks drawn on local funds to herself and other persons and companies for her personal use and benefit, and not to pay local expenses.

As a result of all of Butler's fraudulent conduct, Local 1812 lost as much as $20,677. The defendants, both Md. residents, pled guilty before U.S. Dist. Judge Richard W. Roberts (D.D.C., Clinton). He scheduled sentencing for Mar. 13. [USAO D.D.C. 12/10/01]

STEELWORKERS (USWA)
Gary Local's Tainted Vote Overturned
On Jan. 23, the U.S. Dist. Court for the N. Dist. of Ind. granted the Dep't of Labor's motion for summary judgment and ordered United Steelworkers of Am. Local 1014 of Gary to rerun its Apr. 24, 2000, officer election under DOL supervision. DOL's probe found that Local 1014's application of a meeting attendance requirement barred more than 98% of its membership from running for office. [DOL 1/23/02]

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

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HOTEL & RESTAURANT EMPLOYEES (HERE)
Five Allegedly Stole $71,000 from Atlantic City Local
N.J. Police announced Jan. 2 that they have charged five people with conspiring to steal from  Atlantic City's largest union, in an embezzlement scheme that allegedly drained at least $71,000 from the severance fund of Local 54 of the Hotel Employees & Restaurant Employees Int'l Union.  Mariana Candelaria, who works for Garden State Benefit Servs. Inc., the company that administers the local's severance and pension funds from desks inside Local 54's office, was arrested on Dec. 21. Candelaria allegedly conspired with an ex-colleague and three outsiders by falsifying claims for severance payouts and then issuing and cashing the checks. Police charged Candelaria with embezzling more than $50,000, along with conspiracy, forgery, and theft by deception after an investigation by Detectives Edward Riegel and Brian Paige.

Local 54 vice president Al Cohen attempted to distance himself and other bosses from the thefts. He claimed that union members were the victims of a crime committed by a third party working inside the union office. "It's important people realize this is a subcontractor," he said.  No one in the union has access to the computers inside Local 54 that are used by GSBS, Cohen said.

Also charged were Rhonda Jones, who reportedly left her job working for GSBS inside Local 54's office last year; and Jaymes Browne, a friend of Candelaria who allegedly cashed more than $6,800 in fraudulent union checks and forged documents. Jaime Cambrelen, an acquaintance of Candelaria, also faces charges of forgery and fraudulent check-cashing.  Another suspect, identified as Sinclair Caesar remains at large. He is wanted on charges of theft by deception in excess of $50,000, fraud and forgery. All five suspects have been charged with conspiracy. The probe is continuing in cooperation with the Atlantic County Prosecutor's Office and the U.S. Dep't of Labor.

The timing of the arrests of Jones, Browne, and Cambrelen was unclear. News of Candelaria's arrest was kept private for several days because of concerns that releasing the  information would jeopardize the investigation. The investigation began as a minor fraud case, when authorities began looking into a severance check issued by GSBS to a union member who supposedly had worked for Tropicana Casino and Resort. But when the probe reportedly showed that the union member never had worked at Tropicana, detectives began following a trail of financial documents, allegedly finding many other fraudulent checks that were issued from Local 54's severance fund starting in Mar. 2001. "Two detectives followed through with it and it blossomed into a major conspiracy," Police Sgt. Michael Tullio said.

The arrests come as more bad news for Local 54 bosses, just weeks after an audit was released to union members that showed that Local 54's net assets dropped by $742,000 to $412,256 in 2000, and two weeks before a court-ordered special officer election. In Oct., a federal judge in threw out the results of a June 1999 election, ruling that the union failed to mail notices of the election to 1,975 members and failed to send ballots to 1,596 members.   [Press of Atlantic City 1/3/02]

Atlantic City Local's PAC Settles Late Filing Charges
The N.J. Election Law Enforcement Comm'n recently filed charges against a political action committee maintained by the Hotel Employees & Restaurant Employees Int'l Union Local 54, claiming the union failed to file timely reports during 1999 and 2000. NJELEC found in some cases that the Atlantic City local filed its reports 307 days late.

PACs, which are comprised of two or more persons who act jointly to aid or promote candidates for elected office, are required to file quarterly reports with NJELEC. N.J. State law also requires PACs to report all political donations of $600 or more that are made between Sept. and the date of a general election within 48 hours. Failure to file timely reports carries a maximum fine of $3,500 for each unreported transaction. In one count of the charges against Local 54, the union failed to report 20 transactions.

Local 54 president Robert McDevitt said the union admits it failed to file PAC reports on time and has agreed to pay $3,800 to settle the case. "There is no controversy," he said. "They were filed late. . . .We figured we would accept it. It would cost more to argue it."  McDevitt blamed the late filing of reports on issues affecting the union during 1999 and 2000. He said the union dealt with an election of officers, a strike and contract negotiations with the Atlantic City's casino hotels during 1999.  In 2000, the union's comptroller position was handled by several people and as a result some financial issues were mishandled, McDevitt said. "Things fell through the cracks," he said. [Press of Atlantic City 1/11/02]

GOVERNMENT EMPLOYEES (AFGE)
Philadelphia Boss Sentenced for $3,400 Theft
On Jan. 17, James Bryant, ex-secretary-treasurer of Am. Fed'n of Gov't Employees Local 2061 in Philadelphia, was sentenced to three years probation, ordered to make restitution of $1,980, and fined $500. (He had previously made restitution of $1,500.) He had pled guilty on Sept. 12, to two counts of theft by unlawful taking $3,480 within the territorial jurisdiction of the U.S. Local 2061 is connected to the Gen. Serv. Admin. [DOL 1/17/02]

OPERATING ENGINEERS (IUOE)
Chicago Union Found Guilty of Defamation
Int'l Union of Operating Eng'rs Local 150's statement on picket signs that a construction subcontractor was not paying its workers prevailing wages and benefits constituted defamation, the Illinois Appellate Court ruled Jan. 11  Reversing a lower court's ruling, the appeals court found the statement was harmful to Lowe Excavating Co.'s reputation because the company was required by federal law to pay prevailing wages and benefits for work on the federally funded construction project that was picketed. The evidence also showed that Chicago-based local's statement was false and that the union business agent should have had serious doubts about the truth of the statement on the picket signs, Justice Robert D. McLaren found. The appeals court remanded the case to the McHenry County Circuit Court for consideration of punitive damages. Justices R. Peter Grometer and Thomas E. Callum joined in the opinion. [BNA 1/25/02]

TEAMSTERS (IBT)
Atlantic City Local Settles Defamation Suit
In a settlement made public Jan. 4, the City of Brigantine, N.J., agreed to pay $1.2 million to an ex-public works director who claimed he was fired for complaining about other officials' wrongdoing. The plaintiff, John Costello, also agreed to take an undisclosed sum to drop a defamation claim against Int'l Bhd. of Teamsters Local 331 of Atlantic City.

Costello was fired in 1998 after three years on the job because he refused to play ball with city officials engaged in improper activities, including the wrongful use of city property, according to a federal suit  filed by Gregory Saputelli, a partner in Obermayer, Rebmann, Maxwell & Hippel. City officials told Costello, for example, to have his department build a private road with city-owned dirt in protected wetlands for the convenience of a councilman's constituents, he alleged. He also said he was punished for blowing the whistle on chiseling by employees of the department. Costello's most dramatic allegation is that city officials and members of Local 331 defamed him after a member of the union, Joseph Manera, killed himself and his wife. Reports on WMGM-TV in Wildwood, based on interviews with union and city officials, suggested that Costello's management style contributed to the crime, the suit said.

During summary judgment proceedings before U.S. Dist. Judge Jerome B. Simandle (D.N.J., H.W. Bush) last year, the city presented evidence that officials did nothing wrong and that Costello was fired because he was a harsh and unyielding boss who harassed his employees. But Simandle ruled there was enough evidence to take the case to the jury, although he did dismiss the defamation claims against the city defendants and the television station and its reporters, represented by lawyers at Atlantic City's Fox, Rothschild, O'Brien & Frankel, partner Jack Gorny and associate Sherri Affrunti.

The $1.2 million settlement with the city defendants was reached on Dec. 20, but was not disclosed until an Atlantic City newspaper invoked the Right To Know Law, obtained the terms and published them on Jan. 4. The city was represented by Matthew Giacobbe, a partner at Teaneck's DeCotiis, FitzPatrick, Gluck &  Cole, and by associate Peter Tucci.

Saputelli says his client received a retraction letter from the Local 331 but that a confidentiality agreement bars him from saying how much the unions defendants paid to settle the case. Their lawyer, Peter Marks Sr., a solo practitioner in Northfield, did not comment. [N.J.L.J. 1/21/02]

Indicted Boston Boss Resigns from Board of State Agency
Recently indicted Teamsters boss George W. Cashman abandoned his plum Mass. Port Auth. Bd. post Jan. 22, sparing acting Gov. Jane Swift (R) from embarrassing political standoff. Cashman, a Democrat and an ally to the last three Republican governors, fired off a terse resignation letter just ten minutes before Swift promised he'd be suspended from MPA Bd., the agency that operates Logan Int'l Airport where two planes that terrorists used to destroy the World Trade Ctr. originated. Eager to fend off an appearance of guilt, the president of the Charlestown-based Int'l Bhd. of Teamsters Local 25, promised to beat the "unfounded" federal indictment. Federal prosecutors charged Cashman Jan. 16 along with three others in a 179-count indictment alleging a scheme to illegally give union health benefits to 19 non-union workers.

A clearly relieved Swift, who gave Cashman a 5:00 P.M. deadline to quit or face immediate suspension, emerged from her office and praised Cashman for "doing the right thing." Even before Cashman had a chance to plead innocent, Swift promised to remove him from the board.  Aides said the governor had no contact with Cashman and that his attorneys kept her waiting all day before phoning Swift legal counsel Steve Pierce to offer the resignation. Cashman followed a two-sentence resignation letter on Teamsters stationery with a longer statement promising to fight the federal charges.

In terms of the MPA Bd.'s operation, Cashman's resignation likely will have no effect because he has been a virtual board no-show since the summer of 2000, when his name first publicly surfaced in connection with a federal investigation. Prior to Sept. 11, he missed ten of twelve monthly board meetings.

Swift promised to move quickly to replace Cashman, but she acknowledged she is hamstrung by a state law requiring her to appoint someone from a union that does business with the patronage laden MPA. That requirement flies in the face of a key recommendation from her own MPA reform commission. Under the MPA statutes, one slot must be reserved for a member of a "bona fide . . . national or international labor organization . . . directly and continually related to the scope of activities of the authority." Swift said that rule prevents her from stretching beyond the handful of unions that work directly at MPA, including the Teamsters and Longshoreman. The reform comm'n said the slot should be given to a labor leader without MPA conflicts. [Boston Herald; Boston Globe 1/23/02]

POSTAL WORKERS (APWU)
DOL Sues Dallas Local over Tainted Election
The Dep't of Labor filed suit Jan. 18 in U.S. Dist. Court for the N. Dist. of Texas against the Am. Postal Workers Union Local 732 of Dallas. The suit resulted from an DOL probe of the local's May 19, 2001 mail ballot officer and delegate election. DOL found that the local denied eligible members the right to vote, in that the local failed to mail ballots to all eligible members, and failed to count all ballots that had been returned by eligible members to the post office prior to the deadline. DOL also found that the local improperly permitted ineligible members to vote in violation of the union constitution and bylaws. The suit seeks  new election for 11 officer and 39 delegate positions under DOL supervision. [DOL 1/18/02]

MACHINISTS (IAM)
DOL Sues Baltimore Lodge for New Elections
The Dep't of Labor filed suit Dec. 28 in U.S. Dist. Court for the Dist. of Md. against Int'l Ass'n of Machinists Lodge S-33 in Baltimore. The suit resulted from DOL probe of the lodge's July 28-29, 2001 and Oct. 25 officers elections. Lodge S-33 allegedly violated Section 401(e) of the Labor-Mgmt. Reporting & Disclosure Act by applying an unreasonable meeting attendance requirement which called for attendance at 50% of the regular membership meetings in the 12 months preceding nominations. The requirement excluded approximately 90% of the members from running for office, was applied retroactively, and was not uniformly applied. Members were also not given sufficient notice that the requirement would be applied. The suit seeks new nominations and a new election under DOL supervision. [DOL 12/28/01]

AUTO WORKERS (UAW)
DOL Seeks New Election for Philadephia Local
The Dep't of Labor filed suit Dec. 21 in U.S. Dist. Court for the E. Dist. of Pa. against United Auto Workers Local 813 in Philadelphia. The suit resulted from a DOL probe of the local's May 1, 2001 election. DOL found that the local failed to mail notices of election to members at their last known home addresses. The Suit seeks a new election for all offices under DOL supervision. [DOL 12/21/01]

LABOR LAW REFORM
Three Employees Join Suit to Save Oklahoma Right-to-Work Law
Enjoying free legal aid from the Nat'l Right to Work Legal Def. Fdn., employees from three different  Okla. companies filed formally Jan. 22 in U.S. Dist. Court for the E. Dist. of Okla. to join Okla. Gov. Frank Keating (R) in defending Okla.'s new Right-to-Work constitutional amendment  against multi-union attack.  The employees argue that if the unions prevail in voiding the statewide ban on forced unionism they will suffer direct financial harm as well as damage to  their interests of free speech and free association.

The Okla. AFL-CIO, six local unions, and a heavily unionized company filed the suit in Nov. to overturn the will of Oklahomans in enacting State Question 695 on Sept. 25. The Right-to-Work constitutional amendment bans the widespread union practice of forcing workers to join an unwanted union or pay any union dues as a condition of employment. Okla. is the newest of Am.'s 22  Right-to-Work states.

"Despite the personal risks they face in publicly opposing the state's most powerful union officials, these employees feel so strongly that they have  decided to stand beside Governor Keating in federal  court to face down this multi-union lawsuit," said Stefan Gleason, vice President of NRTWLDF. "The Right to Work law is not just about economic growth and creation of  high-paying jobs, it's about protecting individual  rights and reducing union corruption and abuse."

The employees are filing with the court as "defendant  intervenors" which will ensure that they can file briefs and make arguments in court to defend their direct financial and liberty interests at stake in the preservation of the Right-to-Work amendment. Meanwhile, Gov. Keating's primary legal responsibility is to protect the interest of the public at large in a law passed by electoral  referendum.

The three employees are Kent Duvall, an employee of United Parcel Service, Michelle McKenzie, an employee of Southwestern Bell Telephone Co., and Stephen  Weese, an employee of Oklahoma Fixture Company.  Motions for summary judgment were schedule to be filed by the  parties on or before Jan. 31. [NRTWLDF 1/22/02]

Separately,  Jimmy Curry, president of the Okla. AFL-CIO, said Jan. 23 he thinks the suit will be decided in  Apr. John Hermes, Oklahoma City attorney representing Keating in the case, said lawyers for both sides will file legal briefs, then argue the case in Mar. [Daily Oklahoman 1/24/02]

DOL Pushes for Electronic LM Filing
The Dep't of Labor is urging unions to electronically file the financial forms required under the Landrum-Griffin Act (a.k.a., Labor-Management Reporting & Disclosure Act of 1959). The Office of Labor-Management Standards will enclose copies of a compact disc containing the forms with the traditional paper forms sent to labor unions at the end of their fiscal year, Don Todd, a deputy assistant secretary of OLMS, said Jan. 23. "The software will bring required reporting into the 21st century and should save unions valuable time and enhance the accuracy of their financial reports," he said.

Approximately 30,000 unions must file forms annually with OLMS disclosing their financial condition and operations for the preceding fiscal year. They are required to fill out LM-2, LM-3, or LM-4 forms, depending on their annual receipts.   Among the selling points for using the electronic forms is the ability to download information from previously filed reports and transfer other electronic information regarding officers and employees directly onto the forms, according to DOL. The software also performs calculations and checks for errors and discrepancies. A system for union officers to obtain digital signatures and submit the reports electronically over the Internet with automatic receipt confirmation will be made available shortly.

The software can be installed with a CD on computers running Windows 95 or above. Guides with detailed instructions for using the forms are included with the software, DOL said. More information about the new electronic forms software is available on the Internet at: http://www.dol.gov/dol/esa/public/olms_org.htm. [BNA 1/24/02]

ACTORS (AEA)
NLRB Reopens Excessive Union Fine Case
Persuaded by Nat'l Right to Work Legal Def. Fdn. attorneys, the General Counsel of the Nat'l Labor Relations Bd. has ordered its investigators to reconsider their dismissal of unfair labor practice charges filed by actor Barry Williams against the Actors Equity Ass'n (AEA).  The former "Brady Bunch" star faces confiscatory union fines for exercising his right to work on a non-union production.

NLRB General Counsel Arthur Rosenfeld remanded the case back to the N.Y. Reg'l Office because it dismissed Williams' June 2001 charges without conducting an adequate investigation. Inexplicably, the N.Y. office investigators had refused to interview key witnesses and collect key evidence. NRWLDF argued that the $30,000 fine levied against Williams for exercising his right to  work in a production that did not force employees to work under union contract is excessive and without justification, since Williams was not a voluntary  member of the union.

AEA bosses had organized nationwide pickets of "The Sound of Music" in which union militants chanted, held up signs, and handed out fliers personally attacking Williams. In their latest attempt to publicly embarrass Williams, union officials are offering to slightly reduce the amount of their exorbitant fine if Williams apologizes for working in a non-Equity production of "The Sound of Music." Williams says he should not have to issue an apology for exercising his rights.

"It is the union's officers who should issue an  apology--to Barry Williams for this vicious  harassment," charged NRWLDF's Stefan Gleason.

NRWLDF is demanding that the NLRB's N.Y. Reg'l Director conduct a thorough investigation and issue a complaint to establish that AEA is attempting to fine someone who is not a  voluntary union member, and that the fine levied against Williams was levied for post resignation  conduct. [NRWLDF 1/29/02]

AFL-CIO
AFL-CIO, Eleven Railroad Unions Sue to Stop Congressional Report on Amtrak
The AFL-CIO and eleven railroad-related unions filed suit Jan. 22 for an injunction to prevent a congressionally appointed panel, called the Amtrak Reform Council, from delivering its report  to Congress. In 2001, with Amtrak asking for another $3.2 billion to cope with increased business, ARC decided Amtrak wasn't going to make it. ARC was required to propose changes after declaring that Amtrak wouldn't meet a statutory Dec. 2002 self-sufficiency deadline. ARC voted Jan. 11 eight to one to recommend an end to Amtrak as we know it.  ARC's plan, a final version of which is due before Congress on Feb. 7, is likely to recommend opening America's entire intercity rail system to private competition and the divestiture of Amtrak's tracks and other infrastructure.  The suit filed in U.S. Dist. Court in Washington, D.C. alleged that ARC acted in "excess of its authority" with its recommendations. ARC "has long pursued an ideological agenda to dismember and then sell off Amtrak to private interests," Mark Filipovic, chairman of the union's Rail Labor Division.

Amtrak's 2001 operating loss was a record $1.1 billion, according to a Dep't of Transp. report released Jan. 25. Amtrak has never made a profit since it was founded in May 1971. It received a $521 million federal subsidy for fiscal 2002 and may be liquidated if it fails to meet the deadline. Amtrak has received more than $20 billion in subsidies since 1971 and had to mortgage part of N.Y.'s Penn Station last year to cover losses.

The plaintiffs in the suit are the 1) Rail Labor Division of the Transp. Trades Dep't, AFL-CIO; 2) Bhd. of Maintenance of Way Employees; 3) Transport Workers Union of Am.; 4) Bhd. of Locomotive Eng'rs; 5) Transp.-Communications Int'l Union; 6) Int'l Ass'n of Machinists; 7) Bhd. of Railroad Signalmen; 8) Nat'l Conference of Firemen & Oilers, Serv. Employees Int'l Union; 9) Int'l Bhd. of Elec. Workers; 10) Sheet Metal Workers Int'l Ass'n; 11) Int'l Bhd. of Boilermakers; and 12) Hotel Employees & Restaurant Employees Int'l Union.   Richard Edelman, the attorney who filed the lawsuit, said he will seek a restraining order. [Wall St. J. 1/29/02; Bloomberg News, AFL-CIO 1/22/02; Chi. Trib. 1/23/02]

LONGSHOREMEN (ILA)
Two Longshoremen Found Guilty of Drug Trafficking at the Port of Miami
On Jan. 11,  a federal jury in Miami convicted Charles Thomas and Darryl Bell of attempting to possess with intent to distribute 100 kilograms of cocaine after a four-day trial before U.S. Dist. Judge Federico A. Moreno (S.D. Fla., H.W. Bush). At the time of arrest, both were members of the Int'l Longshoremen Ass'n. Thomas and Bell face a statutory maximum penalty of life imprisonment. Sentencings are scheduled for Mar. 22, 2002, commencing at 9:00 a.m. before Moreno.  Previously on Oct. 26, co-defendant, Joseph Cobb, pled guilty to drug charges and was sentenced by Moreno on Jan. 9 to 46 months in prison.

This was a part of a probe where federal agents placed approximately 100 kilograms of "sham" cocaine within the confines of a 20-foot cargo container. There were a series of recorded conversation between a confidential source and the defendants. During the course of these conversations, the defendants agreed to off-load the cocaine at the Port of Miami. On Feb. 15, 2000, video surveillance showed Thomas placing a 40-foot container perpendicular to the container containing the kilograms of cocaine in an effort to conceal the activity of co-conspirators Cobb and Bell. The video surveillance inside the container also showed Cobb and Bell entering the container,  searching for the boxes containing the "sham" cocaine, removing them from the container, and then  placing the "sham" cocaine in the confidential source's vehicle to be transported out of the Port of Miami. [USAO S.D. Fla. 1/14/02]

DEPARTMENT OF LABOR (DOL)
Couple Pleads Guilty to Defrauding DOL of $300,000
Siria M. Toala of Daytona Beach, Fla., pled guilty Dec. 5 to one count of aiding and abetting the theft of government property. Toala's husband, Ricardo Perez, also pleaded guilty to a one count information charging him with aiding and abetting the making of false claims. The violations occurred between July 1999 and Mar. 2000.

Toala was a ex-procurement clerk with the Bureau of Labor Statistics, Dep't of Labor. As part of her duties, she was assigned a government credit card and was responsible for purchasing computer equipment on behalf of BLS with the credit card. Toala was also responsible for reconciling the monthly statements for the government credit card, and filling out and sending to the bank dispute forms for those charges that were improper. Beginning about July 1999, through the actions of Perez, Toala agreed to and began ordering computer equipment for BLS by way of government purchase orders from a company operated by Maruja Mondazzi, located in Miami, Fla. In connection with these orders, Toala provided Mondazzi with Toala's government credit card number and provided Mondazzi authorization to place charges on her government credit card as payment for these purchases. Mondazzi's company was a small general merchandise store and was not in the business of selling computers. Toala was not authorized to make purchases from Mondazzi's company.

The government was defrauded in various ways. Initially, Mondazzi filled some of the purchase orders at inflated prices. Mondazzi also started charging Toala's credit card without supplying any computer equipment to the BLS. A total of approximately $300,000 was charged to Toala's credit card for which no supporting documentation exists and for which DOL received nothing in return. Toala aided and abetted the theft of government monies by, among other things, failing: 1) to notify any of the officials at the BLS of these unlawful charges; 2) to send dispute forms to the bank; 3) to rescind the authorization allowing the Miami Corporation to charge her card; and 4) to reconcile bank statements containing the fraudulent charges.

Perez facilitated the arrangement by initially meeting with Mondazzi in Miami, Florida. Perez admitted to coming up with the scheme to inflate charges from Mondazzi's company and admitted knowing that the transactions would be conducted by means of the government credit card. Subsequently, through telephone calls, he discussed and confirmed the details of the arrangement with Mondazzi.

The pleas were entered before U.S. Dist. Judge Richard W. Roberts (D.D.C., Clinton) in Washington, D.C. Sentencing for both defendants has been set for Apr. 11. Mondazzi remains indicted and is a fugitive. [USAO D.D.C. 12/6/01]

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