LABOR LAW REFORM
Bush, DOL Committed to Fighting Union Corruption
Despite a significant decrease in the Dep't of Labor's proposed FY2003 discretionary budget, the agency charged with monitoring union finance and elections would see a sizable increase in funding, under President Bush's proposed budget. DOL's Office of Labor-Mgmt. Standards, currently is funded at $30.6 million, but would get a $3.9 million increase under the proposed budget. The new funding is intended to increase the number of OLMS audits of unions under the Labor-Mgmt. Reporting & Disclosure Act of 1959 (a.k.a., Landrum-Griffin Act ). It includes $3.4 million and 40 additional staffers "for enhanced enforcement" "to ensure compliance" with LMRDA.

"This is a victory for every American who is forced to pay dues or fees to a union," said NLPC Chairman Ken Boehm. "As repeatedly documented in NLPC's Union Corruption Update, there is wave of union corruption plaguing our country. It's reassuring to know the Bush Administration recognizes the problem and is willing to do something to combat it."

According to DOL's annual performance plan, which was released Feb. 4, at least 1% of labor organizations (3,000 unions) subject to the LMRDA would be audited each fiscal year, starting in FY2003, to determine compliance with LMRDA's "fiduciary safeguards." Seeking to promote "effective use of investigative resources," OLMS will "allocate criminal investigative time to cases with the most prosecutive potential and, where appropriate, redirect criminal investigative resources to union compliance audits."  OLMS's criminal investigations primarily concern embezzlement of union funds, and its civil investigations chiefly deal with union officer elections.

DOL also stated that OLMS is "explor[ing] means to enhance union transparency, increase information available to union members, and better inform union members of their rights." This includes making the LMRDA-required financial forms (LM-2s) available for public disclosure via the Internet. The budget request also includes $2 million to provide for the electronic filing and Internet disclosure.

DOL's budget package included a chart showing a decline in OLMS staff from 460 in FY1991 to a mere 260 for FY2002. DOL correctly stated that the increased staff and budget is necessary to promote union democracy, protect members' funds, and fight labor racketeering

Not surprisingly, the AFL-CIO criticized the corruption-fighting plan. The AFL-CIO questioned how the Bush Administration could justify increases for OLMS investigations as well as a budget and staff hike a for DOL's Office of Inspector General. The budget request includes $2.5 million and 20 staffers "to conduct a nationwide comprehensive initiative to combat labor racketeering relative to: pension plan corruption and organized crime or corruption affecting industries and union leadership." [BNA 2/7/02]

It appears that the Bush Adminstration is following the sound advice of Americans for Tax Reform president Grover Norquist. Last year, in responding to a question about what the Bush "labor policy" should be, Norquist said: "Prosecute the hell out of labor union corruption." [Am. Prospect 4/9/01]

ELEVATOR CONSTRUCTORS (IUEC)
Twenty-Six New York Bosses/Members Indicted on Racketeering and Other Charges; $6 Million Taken
On Feb. 7, federal and local law enforcement announced the unsealing of a 137-count indictment against 26 bosses/members and one associate of the Int'l Union of Elevator Constructors Local 1. More than $6 million in wages and benefits were allegedly stolen. Allegedly, Local 1 bosses defrauded the construction industry and abused the hiring rights of Local 1 members by committing racketeering crimes at more than 20 construction sites in the N.Y.C. area between 1989-2001. The indictment outlines a longstanding scam in which corrupt union bosses repeatedly lined their pockets through no-show jobs doled out to corrupt union members willing to assist the enterprise.

"The acts of the individuals from Local 1 are appalling," said N.Y.C. Police Comm'r Raymond W. Kelly. "As all New Yorkers are working toward rebuilding the City, it is despicable that members of Local 1 participated in such corrupt activities. [We] will continue to target those who manipulate union guidelines for their own benefit."

The indictment charges that Charles L. Novak, a Local 1 vice president and business agent until 2000, as well as Matthew J. Downey and Anthony DeGennaro, both of whom acted as Local 1 representatives at construction sites, engaged in a pattern of racketeering activity through various criminal activities, including demanding and receiving unlawful labor payments, mail fraud, extortion, interstate transportation of property converted and taken by fraud, money laundering, and witness tampering.

Further, the indictment charges that William C. Barthold, David Coakley, and William Tracy, each Local 1 site representatives, as well as Anthony DeGennaro's wife, Susan, conspired with Novak, Downey, and DeGennaro to commit the alleged labor racketeering crimes. These seven defendants are charged with being  members of a racketeering enterprise ("Local 1 Operators' Crew") that corrupted Local 1 through their no-show job scheme and other crimes and abused the membership's right to employment referrals through an open employment list.

In addition to these seven "RICO defendants," 20 other defendants face an assortment of fraud, money-laundering, tax evasion, and other charges. For example, the indictment charges Robert Shannon, currently a Local 1 vice president and business agent, and Terence Carr, a Local 1 executive board member of and the son-in-law of Local 1 president John Green, with demanding and receiving unlawful labor payments in violation of the Taft-Hartley Act.

In addition to fines and prison time, the indictment seeks forfeiture of up to approximately $3 million from defendants who are convicted of the RICO or RICO conspiracy charges, including a bank account, real properties, and their interests in the Local 1 pension, annuity, and welfare plans. The indictment also seeks to forfeit monies and various properties from defendants who are convicted of a money laundering charge.

The case has been assigned to U.S. Dist. Judge David G. Trager (E.D.N.Y., Clinton). Downey, who was charged with witness tampering in a Oct. 30 indictment, was scheduled to be arraigned on the superseding indictment before Trager on Feb. 15. Other defendants entered not guilty pleas on Feb. 7 before U.S. Magis. Judge A. Simon Chrein in Brooklyn. Chrein set bail for all but one defendant, Anthony DeGennaro, who was ordered held without bail. Prosecutors submitted a letter to Chrein alleging that DeGennaro, of Middletown, N.J., was linked to organized crime, was a flight risk, and had tampered with three of 12 witnesses who were mentioned by pseudonyms in the indictment. The letter quotes DeGennaro as saying "If I go for a guy that rats me out, on my God's heart, I will kill him."

The charges center on the collective bargaining agreements (CBAs) entered into by most major N.Y.C.  construction contractors with Local 1, which require the contractors to hire Local 1 members to operate the temporary elevator cars. Although the CBAs required that Local 1 refer operators for employment based on an open employment list maintained and kept current by Local 1, the indictment charges the RICO defendants with circumventing that list by themselves selecting who would be put on contractor payrolls at particular construction sites. Allegedly, the defendants exploited the CBAs through the following criminal activities.

1. The No-Show Jobs Scheme -- Beginning in 1989, the RICO defendants--Novak, Downey, Anthony and Susan DeGennaro, Coakley, Tracy, and Barthold--submitted and caused to be submitted fraudulent time sheets to contractors at numerous construction sites, claiming that hours had been worked by certain elevator operators who, in fact, had not worked those hours; either they did not appear at all at the construction site, or their hours were grossly inflated. Most of the money for these no-show jobs ended up in the pockets of Novak or other union members, including Downey, Anthony DeGennaro, Coakley and Barthold, each of whom functioned in the capacity of union representative by deciding who worked at particular sites, ensuring contractor compliance with CBAs, and resolving disputes at various locations.

At certain construction sites, Downey, Anthony DeGennaro, Barthold, and Coakley caused their own names to be used to claim falsely that they had worked certain hours as operators, when, in fact, they had either been elsewhere, often conducting union business at other construction sites. Certain of the no-show operators actually worked as chauffeurs for union representatives, including Novak and DeGennaro, while on the payroll of building contractors.

Many Local 1 members who participated in the no-show jobs scheme claimed to have been working on multiple construction jobs at the exact same time. In addition, three union members involved in the scheme had other, full time jobs--Edward W. Connelly was employed as a supervisory fire inspector for N.Y.C.; Steven L.Seidl was a full-time employee of St. John's Univ.; and James Cassidy was employed full time as a clerk for Local 1.

The most common method for the transfer of no-show job payments to union officers and representatives was by depositing the paychecks into bank accounts controlled by Downey or  Anthony and Susan DeGennaro,  including an account in the name of "Mattlynn," a fictitious entity controlled by Downey. Between 1996-1998, Downey deposited more than 1,400 checks payable to other Local 1 union members, totaling more than $1.5 million, into the Mattlynn account. Other methods used by Downey and Coakley to obtain cash from the no-show jobs scheme was to instruct no-show operators to cash their checks and give the cash to these defendants, or to collect the checks from various no-show operators and cash them at a bar in Manhattan.

In addition to the seven RICO defendants, 19 defendants--Richard Brady, Carr, James F. Cassidy, Michael J. Coady, Jr., Connelly, Raymond P. Costello, Marc A. DeGennaro, Edward B. Donohue, Paul J. Downey, Karen Gordon, Peter R. Grim, Timothy J. Grim, Thomas B. McCarthy, Kevin M. Murphy, Michael E. O'Gara, Steven G. Schmitt, Seidl, Shannon, and Frank D. Walker-- are charged with participating in the scheme by allowing their names to be used for no-show jobs. These nineteen defendants profited from the  scheme through receiving inflated contributions to their pension, annuity, and welfare plans, and some received a portion of the fraudulently obtained wages, including Carr and Shannon, despite their being prohibited to do so by virtue of their status as union representatives and officers.

Allegedly, between 1989 and Mar. 2001, contractors paid more than $3 million in the names of no-show operators. Including withholding taxes and contributions to the benefit plans, the charged enterprise stole more than $6 million from construction projects during the charged period.

2. The Labor Peace Payments Scheme -- The indictment charges that between Jan. 1997 and Apr. 2001, Novak, Matthew Downey, and Joseph L. Fusilli, a non-Local 1 member, extorted or conspired or attempted to extort payments from contractors in exchange for labor peace. These defendants and others approached contractors and employers at various job sites where Local 1 elevator operators were not employed. Regardless of whether Local 1's CBAs required that Local 1 operators be employed at these sites, these three defendants demanded and accepted payments from the contractors and employers in return for avoiding disruption of work at the sites by Local 1 members and others. In order to mask these labor peace payments, Novak caused fraudulent time sheets to be submitted in the names of Local 1 elevator operators, claiming that the hours had been worked when, in fact, they had not been. The contractors and employers then paid these members of Local 1, who, in turn, gave a portion of the payments to Novak or simply made cash payments to Downey.

The indictment charges the seven RICO defendants, as well as the remaining 20 defendants, with various crimes in connection with the no-show job and the labor peace payment schemes, including violations of the Taft-Hartley Act (unlawful labor payments), mail fraud, making false statements to federally-regulated pension plans, interstate transportation of stolen property, money laundering, extortion, witness tampering, conspiracy to defraud the United States, and tax evasion.

The charges of witness tampering against Matthew Downey and Anthony DeGennaro stem from their various attempts to persuade or coerce union members to lie to federal investigators and to the grand jury. For example, according to a previously filed complaint in this case, in a recorded conversation on June 22, 2000, Downey told a cooperating witness who had been on a no-show job to tell a federal grand jury that Downey had cashed his checks for him to save time, and that Downey had returned all of the money to the witness. When the witness reminded Downey "[W]hat the deal is," Downey (referring to investigators), said, "Yeah, I know what the deal was, but they don't!" He then added, "I gotta be very careful, here" because "if I ever get caught in a conversation like, something like that, they got it on tape, they get me for (unintelligible), for, uh, obstruction of justice."

FBI Asst. Director-in-Charge Barry W. Mawn added: "In the wake of the events of September 11, there will be many rebuilding projects begun in New York City. Lower Manhattan has already been victimized once. All those who would seek to take advantage of the effort to recover from that tragedy by engaging in criminal acts similar to those committed by today's defendants are on notice that the law enforcement community will be paying close attention and will vigorously pursue any and all information provided to us."

"The participation of high ranking members of Local 1 in this criminal scheme is particularly reprehensible," said  U.S. Atty. for the E. Dist. of N.Y. Alan Vinegrad. "These arrests signal the government's continuing commitment to hold accountable those who abuse labor unions through their corrupt activities. . . .The message from these arrests should be clear: those who try to cheat and extort the New York City  construction industry and abuse the hiring rights of the members of their own labor unions will be caught, prosecuted and punished."

U.S. Sec'y of Labor Elaine L. Chao stated: "Strong enforcement is a critical component of the [Bush] Administration's efforts to protect the retirement security of America's workers. This prosecution] demonstrates our commitment to protecting workers' benefits and strengthening the confidence of the American workforce that their retirement savings are secure."

If convicted of the racketeering or racketeering conspiracy charges, Novak, Matthew Downey, Anthony and Susan DeGennaro, Barthold, Coakley, Tracy face up to 20 years in prison and a fine of up to $250,000 for each crime. If convicted of the extortion or extortion conspiracy charges, Novak, Matthew Downey, and Anthony DeGennaro face up to 20 years in prison and a fine of up to $250,000 for each crime. If convicted of the witness tampering charges, the defendants Matthew Downey and Anthony DeGennaro face up to 10 years in prison and a fine of up to $250,000 for each crime. Defendants who are convicted of the money laundering or money laundering conspiracy charges face up to 20 years in prison and a fine of up to $500,000 for each crime. Defendants who are convicted of committing interstate transportation of property converted and taken by fraud face up to 10 years in prison and a fine of up to $250,000 for each crime. Defendants who are convicted of demanding and receiving unlawful labor payments in violation of the Taft-Hartley Act face up to 5 years in prison and a fine of up to $15,000 for each crime. Defendants who are convicted of mail fraud face up to 5 years in prison and a fine of up to $250,000 for each crime. Defendants who are convicted of making false statements to pension plans face up to 5 years in prison and a fine of up to $250,000 for each crime. Defendants convicted of conspiring to commit Taft-Hartley violations, mail fraud, interstate transportation of property converted and taken by fraud, tax evasion and to make false statements to pension plans face up to 5 years in prison and a fine of up to $250,000 for each crime. Defendants convicted of tax evasion face up to 5 years in prison and a fine of up to $100,000 for each crime. [USAO E.D.N.Y. 2/7/02; Bloomberg News 2/7/02; Newsday 2/8/02]

GUARD UNIONS
Philly Boss Accused of $50,000 Theft; $2,500 from Widow
A federal grand jury in Philadelphia returned a 21-count indictment Feb. 13 charging Kendall Williams with theft of union funds, theft from a union health and welfare fund, failure to keep required records, and failure to file required reports with the Dep't of Labor. The alleged thefts totaled $50,983.84. Williams is the president of the independent PNI Security Union, which represents the security officers at the facilities of the Philadelphia Inquirer and Daily News.

Between 1997-99, Williams allegedly embezzled approximately $29,683.84 from the PNI Security Union Health & Welfare Fund by falsely claiming that another union member, L. Zane, would join him in traveling to benefit plan administration conferences put on by the Int'l Fdn. of Employee Benefit Plans. After obtaining funds for the bogus expenses (conference fees, preconference fees, air transportation, lodging, lost wages, and per diem expenses), he deposited the Fund's checks into the union's checking account and then withdrew that money for his own personal use.

Also, he sought and received refunds from IFEBP for preconference programs that he did not attend. He did the same for Zane's unused conference and preconference fees. However, he did not return the refund checks to Fund. He deposited them into the union's checking account and withdrew that money for his personal use. Six conferences were involved: Las Vegas, Stateline, Pa. (2), Vancouver (2), and Washington, D.C.

Even more outrageous, Williams allegedly obtained a $2,500 check from the Fund in Feb. 2000 that was meant to be paid to the widow of a recently deceased union member. According to the indictment, he never gave that check to the widow. Instead, he deposited the check in the union's checking account on June 8, 2000, and on June 9, he withdrew the money for his personal use.

Further, Williams allegedly embezzled union monies by taking an unauthorized salary between 1997-2000, totaling about $18,800. Finally, Williams allegedly failed to keep proper records of union finances between 1997-99 and failed to timely file required financial reports with DOL for the years 1996-99. If convicted on all counts, he faces a maximum possible sentence of 77 years imprisonment, 3 years supervised release, a $4,200,000 fine, a $2,100 special assessment, and restitution. [USAO E.D. Pa. 2/12/02; Phil. Inquirer 2/13/02]

CHRISTIAN LABOR (CLA)
No Jail Time for California Extortionist
U.S. Dist. Judge Virginia A. Phillips (C.D. Cal., Clinton) sentenced Hank Van Heyningen, ex-president of Christian Labor Union Local 17 (Dairy Employees), to a mere 36 months probation and 300 hours of community service for extorting money from workers for job referrals. He faced up to 20 years in prison. Phillips also ordered Van Heyningen to pay $100 restitution and a $2,500 fine. The boss of the Chino, Cal., union pled guilty to one federal count of extortion on Oct. 23. He admitted to regularly extorting money for 10 years. A member who received a full-time job with regular daylight hours was charged $800 to $1,500. [DOL 1/7/02; USAO C.D. Cal. 10/23/01]

FIRE FIGHTERS (IAFF)
Ohio Boss Admits $142,700 Scheme
On Jan. 28, Richard Adams, ex-treasurer of Int'l Ass'n of Fire Fighters Local 639 in Parma, Ohio, pled guilty to a federal bank fraud charge for a scheme to deprive the union of $142,715.78. Sentencing is scheduled for Apr. 10 before U.S. Dist. Judge Donald C. Nugent (N.D. Ohio, Clinton). [DOL 1/28/02; Plain Dealer (Cleveland) 1/30/02]

LONGSHOREMEN (ILA)
Louisiana Boss Admits $91,400 Theft (information added 3/6/02)
Willie R. Walker, ex-secretary-treasurer of the Int'l Longshoremen's Ass'n Local 1349 in Lake Charles, La., pled guilty Jan. 25 to a one-count indictment charging him with embezzling $91,423 in union funds. He was indicted Nov. 16 on the one embezzlement count and one count of falsifying union records. Sentencing is scheduled for Apr. 9 before U.S. Dist. Judge Tucker L. Melançon (W.D. La., Clinton).

According to the U.S. Attorney's Office for the W. Dist. of La., Walker used the embezzled funds for various personal items and the the thefts occurred in small amounts over a long period of time.  Also, the thefts were allegedly accomplished through misuse of union checks for fictitious union expenses and he allegedly made out the checks to himself. [DOL 1/25/02; USAO W.D. La. 2/25/02]

BOILERMAKERS (IBB)
Green Bay Boss Accused of Embezzling $61,500
David Dobry, ex-secretary-treasurer of Int'l Bhd. of Boilermakers Lodge 177 in Green Bay, was indicted Feb. 5 on one count of embezzling $61,510, one count of filing a false financial report with the Dep't of Labor, and one count of destruction of union records. [DOL 2/5/02]

GOVERNMENT EMPLOYEES (AFGE)
Phoenix Boss Charged with Theft
In the Maricopa County (Ariz.) Court, Mary K. Johnson, ex-treasurer of Am. Fed'n of Gov't Employees Local 2552, was charged Jan. 29 in a criminal complaint with knowingly converting between  $25,000 and $100,000 with the intent to deprive the local of those funds. The Phoenix-based local serves the Dep't of Veteran's Affairs. [DOL 1/29/02]

MACHINISTS (IAM)
Georgia Boss Indicted for Stealing $16,000
On Jan. 22, Carey McClure, ex-secretary-treasurer of Int'l Ass'n of Machinists Lodge 2731 in Hampton, Ga., was indicted on one count of embezzling $16,917.13 in union funds and one count of failure to maintain union financial records. [DOL 1/22/02]

ROOFERS (RWAW)
Atlanta Boss Allegedly Stole $7,400
Ricky Sanders, ex-business manager of Roofers, Waterproofers & Allied Workers Local 136 in Atlanta, was indicted Jan. 22 on one count of embezzling $7,433.51 from the local. [DOL 1/22/02]

QUOTABLE QUOTE
"The only time I hear from those guys is when they want my money. I shouldn't have to ask the union what's going on; they should be telling me."

- Chuck Biel, Member, Am. Fed'n of Musicians Local 136, Charleston, W. Va., discussing the bosses of his local. [Charleston (W. Va.) Gazette 1/24/02]
 
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ADDITIONAL BRIEFS NOT INCLUDED ON THE FAX EDITION OF THIS UNION CORRUPTION UPDATE:

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FOOD & COMMERCIAL WORKERS (UFCW) 
Class Action Pension Suit, Alleging $37 Million in Losses, Allowed to Move Forward
U.S. Dist. Judge Ellen S. Huvelle (D.D.C., Clinton) ruled Jan. 20 that officers and employees of an investment adviser may have breached their fiduciary duties to an the United Food & Commercial Workers Pension Plan for Employees, which is governed by Employee Retirement Income Security Act. Pension plan participants filed a class action against the trustees of the UFCW Pension Plan, claiming they breached their fiduciary duties to the plan by following the advice of Investment Performance Servs., the investment advisers and permitting a investment firm to implement a hedge program. UFCW Pension Plan's executive committee approved an options-based hedge strategy, which allegedly resulted in a $37 million loss. Under ERISA, trustees found to have breached their fiduciary duties to the plan are personally liable for damages.

The trustees claimed the investment firm and IPS breached of their respective fiduciary duty. The participants amended their complaint to add three individuals, officers, and employees of IPS, who the participants claimed breached their fiduciary duty under ERISA by investigating, recommending, implementing, and continuing the hedge program.

Huvelle refused to dismiss the participants' suit for failure to state a claim, finding that there was evidence that the individuals may have exercised some control over the plan and therefore might have acted as fiduciaries under ERISA. [BNA 2/11/02]

TEAMSTERS (IBT)
Indicted Boston Boss Targeted by the Mob
Boston-area gangsters were plotting to use violence to push aside Int'l Bhd. of Teamsters Local 25 president George W. Cashman in the mid-1990s and seize control of lucrative movie contracts, a U.S. Drug Enforcement Admin. agent said in an affidavit filed Feb. 11 in federal court. John "Mick" Murray, a Local 25 member and an alleged associate of fugitive organized crime boss James "Whitey" Bulger, was "not pleased with the management of Local 25 by . . . Cashman," Agent Joseph W. Desmond said in his affidavit. Murray and Phil Myers, another Local 25 member who was arrested in 1998 on drug charges and is now cooperating with authorities, were allegedly "part of a conspiracy to take charge of Local 25's movie crews through the use of force and violence," he said. The two men plotted to "confront Cashman with a weapon and force Cashman to make changes in the management of the movie crews," Desmond said, adding that they went so far as to track the union president's movements before Myers was arrested and the plan was abandoned.

The allegations surfaced during Murray's bail hearing and mark the first time that federal law enforcement officials have publicly released information about Local 25's attempts to strong-arm movie producers operating in New England. Cashman was arrested Jan. 16, at the same time as Murray and several Local 25 officials and associates. Cashman pled not guilty to charges of embezzling from the local's health care fund. Murray pled not guilty to a 12-count indictment charging fraud, extortion, and theft. Murray is accused of receiving $35,000 in unearned health benefits, stealing computer shipments from a UPS facility in Chelmsford, Mass., and shaking down a bookmaker and Airborne Express truck driver.

Desmond's affidavit offers a detailed look of the operations of the "Charlestown group," described by the agent as a loosely knit association active in murder, drug trafficking, bank robbery, extortion, and truck hijacking since the 1960s. Murray used his connections with Local 25, Bulger, and the Charlestown group in an attempt to take over Boston-area rackets after federal crackdowns on organized crime in the 1990s, the affidavit alleges. Along with two other men, the affidavit says, Murray "had designs of expanding the influence of the Charlestown group, based upon the power vacuum" resulting from the 1995 arrests of mob figures Frank Salemme and Stephen Flemmi and Bulger's flight.

"It's the government's position this criminal organization - though now weakened - is still alive and well in Charlestown," said  Asst. U.S. Attorney Fred Wyshak told U.S. Magistrate Judge Robert B. Collings.

Arguing to keep Murray behind bars, Wyshak said he also took part in a "heinous extortion" in 1994. Wyshak said Murray, a convicted bank robber, joined Bulger lieutenant Kevin Weeks in hauling a bookie into a South Boston basement for a lesson in the consequences of withholding Bulger's "rent." The men allegedly outfitted the room for an execution. Plastic covered the floor. Freezers stood nearby and a single stool was placed under a glaring light. Wearing knuckle-baring gloves and showing off a gun in his waistband, Weeks - who became a government witness in 1999 - berated bookie Kevin Hayes and ordered him to strip in case he was wearing a wire, according to the government. Another man present allegedly insisted Weeks kill Hayes. Eventually Hayes promised to fork over a $ 50,000 "fine." He paid $ 10,000 in a first installment, the government said, eventually pleading that $1,000-a-week was too much. He then paid Murray monthly, and continued until 1997, the affidavit states.

Prosecutors also alleged that Murray extorted Local 25 member Paul Kupchaunis, a delivery driver, by instructing him to hand over a UPS master key to cancel a $50,000 contract on his life. That key allegedly opened up a $1 million theft ring involving mostly high-end electronics.

Finally, prosecutors argued Murray's contacts with organized crime in Montreal and the Irish Republican Army make him a flight risk. A pretrial services report recommends releasing him on $10,000 bond. Collings did not making an immediate ruling. [Boston Globe; Boston Herald 2/12/02]

Cleveland Local in Trusteeship; Boss Accused of Unauthorized Salary Increases
Int'l Bhd. of Teamsters Local 244 in Cleveland has been under trusteeship since late last year after a report that its president may have embezzled the local's money. Investigators for IBT's court-supervised Independent Review Board reported in Oct. 2001 that Jarrell Williams apparently embezzled at least $3,300 by increasing his salary without approval of the local's executive board, as required in its bylaws. The investigators also said that the executive board doesn't have an active role and that Williams holds "incredible power."

Richard Murray, an IRB investigator, said the IRB has not officially charged Williams with any wrongdoing. Rather, it recommended appointing a trustee to run the local's affairs for up to 18 months and to root out any wrongdoing. "The report said basically the entire local is not being run properly; you'd better get someone in there," Murray said.

In Nov. 2001, IBT president James P. Hoffa appointed Malcolm Mader, a business representative for the Ohio Conference of Teamsters, as trustee for Local 244. Mader hired Williams to work four days a week as a business agent during the trusteeship. Mader said IBT has since held its own hearing into the matter and will eventually decide what penalties to impose, if any. Those could range from letters of reprimand to permanent banishment from union activity.

According to the IRB report, Williams' salary as president was supposed to have risen at the same rate as the wages of Cleveland garbage haulers: 3.5% in both 1999 and 2000. Instead, he reportedly received an 11.7% increase in 1999 and a 13.6% increase in 2000. It noted that one increase Williams took - of $550 a month - was equivalent to a car allowance he stopped getting after it was questioned by a IBT auditor. Williams told the IRB that the auditor instructed him to take the increase because his pay was too low. The auditor denies that, according to the report. The report said Williams' salary rose to $80,541 in 2000, from $72,452 a year earlier. Additionally, he receives a second salary, $48,000 a year, as an organizer for the Ohio Conference of Teamsters, but that money was not a focus of the investigation.

Williams denounced the report as inaccurate. He expressed belief that union opponents had called investigators. He has run unopposed since becoming president in 1995, Williams said. [Plain Dealer (Cleveland) 2/8/02]

TEAMSTERS (IBT) / MACHINISTS (IAM)
Union Fund Manager Admits to Kickbacks
A N.Y. union pension fund consultant admitted Feb 6. that he paid kickbacks to a fund trustee. George W. Philipps, ex-president and owner of Pension Fund Evaluations, Inc., a consulting firm in Centerreach, N.Y., pled guilty before U.S. Dist, Judge Nancy Gertner (D. Mass., Clinton) in Boston to a charge of paying kickbacks to William V. Close, who was then a trustee of the pension funds of Int'l Bhd. of Teamsters Local 710 and Auto. and Int'l Ass'n of Machinists Local 701 (a.k.a., Auto. Mechanics Union Local 701), both of which are in Chicago.

At the plea hearing, Asst. U.S. Atty. Jeanne M. Kempthorne told Gertner that Philipps caused three cash payments totaling $55,000 to be paid to Close between Sept. and Nov. 1997, in return for Close's using his influence to cause Fiduciary Mgmt. Associates, Inc., an investment manager to the union pension funds, to direct trades for the benefit of Philipps' firm. Clearing brokers with commission-splitting arrangements with Pension Fund Evaluations, paid the firm a portion of the commission earned on trades.  Philipps, in turn, paid Close the kickbacks.  As a result of the deal, Philipps' firm received hundreds of thousands of dollars in commissions without providing any services to the union pension funds, a practice known as "free business." Philipps, while admitting to the essential elements of the crime charged, denied that the payments were a bribe he agreed to pay as a condition of his receiving the union pension fund business.

"Union pension funds and other institutional investors are poorly served when investment managers and consultants put their own interests first in distributing commissions.  When commission-splitting involves kickbacks to fiduciaries, a questionable practice becomes clearly criminal," said U.S. Atty. for the Dist. of Mass. Michael J. Sullivan.

Gertner scheduled sentencing for May 23. Philipps faces a maximum sentence of three years in prison and a $250,000 fine.  Close, of Chicago, pled guilty on June 2, 2000 to receiving kickbacks and to money laundering.  He is scheduled to be sentenced in U.S. Dist. Court Chicago on Mar. 12.  [USAO D. Mass. 2/7/02]

POLICE UNIONS / PRODUCTION WORKERS / OPERATING ENGINEERS (IUOE)
Two Convicted in Scheme to Bribe Union Bosses to Access Pension Funds
A N.Y. stockbroker and a Chicago futures trader were convicted Feb. 13 of scheming to bribe union bosses to invest millions of dollars of pension fund money with a corrupt money manager. Stockbroker John M. Black, who authorities say was a Luchese organized crime family associate, and futures trader Glenn B. Laken were convicted today of racketeering, bribery and fraud. Among those whom they planned to bribe were bosses with the Annuity Fund of the N.Y.C. Police Detectives Endowment Ass'n, the independent Production Workers Local 400 in N.Y.C., and Int'l Union of Operating Engineers Local 137 in Briarcliff Manor, N.Y.  The verdict was reached at the conclusion of a three-month trial before U.S. Dist. Judge William H. Pauley, III (S.D.N.Y., Clinton).

Federal prosecutors said Black, a principal in Grady & Hatch Co., and Laken, a principal in TradeVentureFund, worked with a mob-controlled investment bank in lower Manhattan, DMN Capital Inc., in planning illegal payoffs to union bosses. The goal was to induce pension fund managers to shift some $300 million in union pension funds to the control of a crooked investment adviser.  Laken agreed to pay secret kickbacks to the principals of DMN Capital to raise money for TradeVentureFund on the understanding that the kickbacks would pay off union bosses for switching pension fund money to the corrupt hedge fund.

The two were indicted in June 2000 along with 118 others as part of the FBI's "Operation Uptick," which targeted mob influence on Wall Street. So far, 92 defendants have been convicted of various fraud schemes and another 17 cases are pending. The federal jury in Manhattan also acquitted three other men who were on trial with Black and Laken: Dallas-based real estate developers Gene Phillips and  A. Cal Rossi as well as San Francisco-based investment strategist William M. Stephens. Of the 120 defendants charged, 11 have had the charges against them dismissed or were acquitted at trial.  Black and Laken face up to 20 years in prison at their sentencing scheduled for May 31.

No bribes were ever paid, and the union money was never diverted to the other investments. Arrests were made before any union pension funds were squandered. Most of the evidence at trial against Stephens arose from 30 to 35 hours of taped conversations between the various defendants and Jeffrey Pokross, a government informant who ran a corrupt investment bank that had been infiltrated by the Gambino and Bonanno crime families, DMN Capital  On the tapes played in court, Pokross made reference to bribing pension fund managers in conversations with Stephens. But Stephens, the only defendant to take the witness stand in his own defense, testified that he did not believe Pokross was serious and was merely going along with him to meet potential new clients. [Bloomberg News 2/13/02; Chi. Trib., Daily News (N.Y.C.), S.F. Chron. 2/14/02]

AUTO WORKERS (UAW)
Indiana Boss Charged with Forgery and $4,000 Theft
On Dec. 17, in Wayne County (Ind.) Superior Court, Priscilla Crist, ex-president of Auto Workers Local 2374 in Richmond, Ind., was indicted for forgery and theft of $4,092 in union funds. [DOL 12/17/02]

MACHINISTS (IAM)
Georgia Boss Charged with False Recordkeeping
Joseph Argo, ex-president of Int'l Ass'n of Machinists Lodge 615 in Marietta, Ga., was charged in a one-count information with false financial recordkeeping. [DOL 1/15/02]

RETAIL UNION (RWDSU)
Atlanta Boss Charged for Failing to Maintain Financial Records
On Jan. 15, Charles Astin, ex-president of Retail, Wholesale & Department Store Union Local 343 in Atlanta, was charged in a one-count information with failure to maintain union financial records. [DOL 1/15/02]

PAINTERS (IBPAT)
Florida Boss Allegedly Concealed Records
On Dec. 17, in U.S. Dist. Court for the S. Dist. of Fla., David Lareau, ex-business manager of Int'l Bhd. of Painters & Allied Trades Local 160, was charged in a one-count information with concealing and withholding union financial records.

MUSICIANS (AFM)
Indicted West Virginia Boss Resigns, Accused of Playing Favorites in Job Assignments
Indicted union boss Tom Bailey, facing internal pressure from his union, agreed to resign from the Am. Fed'n of Musicians Local 136's eight-member board of directors effective Dec. 31. He remains a member of the Charleston, W. Va., based local. In Dec., Bailey and his wife, Deborah, were indicted on federal union embezzlement charges and accused of embezzling some $15,000 from the local. Their criminal trial is scheduled for Mar. 26.

New local president Brad Bradley held a meeting Feb. 10 to tell members about changes that will be made in the local. "We're going to try to redirect the union focus back to a more service-friendly organization," Bradley said. "We're really wanting to change things around."

Some union members said they've been trying to find out what's going on at the union ever since Bailey's indictment. "The only time I hear from those guys is when they want my money," said Chuck Biel, a union member who plays in several local bands and sometimes performs with the West Virginia Symphony Pops. "I shouldn't have to ask the union what's going on; they should be telling me," he said. "I've paid my dues, and I've done what I'm supposed to do for the union."

Bailey agreed to resign in part because of the federal indictment and in part because of a Dec. 10 union hearing in which union member Liz Nichols formally charged Bailey with using the union booking office for promoting his favorite bands, ignoring union regulations and refusing to share with Nichols copies of her own performance contracts. "If you didn't kiss his butt, you didn't get work," Biel said.

Whether Bailey actually played favorites or not, Bradley concedes the perception is widespread in the union. As a result, Bradley said, anyone who wants to hire a band will be given a complete list of available musicians. The union business office is also being turned over to an accountant. "We've divorced the office away from the [union] board," Bradley said.  Board member Larry Kopelman said he's working on a book listing all area musicians to distribute to area bars, hotels and other venues.

"It's very difficult to run a booking agency out of the union," said Bill Holstein, Local 136's  secretary-treasurer. "It seemed to be a pretty clear conflict of interest and doesn't work out well at all, to say the least. The perception of nepotism in this office has been very harmful to this union."

Other problems include many union members not being paid for jobs they played years ago, apparently because Bailey never turned in the paperwork. Moreover, "we weren't even having the required meetings," Holstein said. "We didn't even have the elections when we were supposed to." Union regulations require at least two meetings a year. They require a monthly newsletter - something union members never remember happening under Bailey.

Holstein also said it might be necessary to move out of union's lavish headquarters. For years, the union has owned an impressive Victorian-style house in Charleston, but Holstein said taxes and maintenance on the building use up much of the union's budget.

Some union members wanted to know how the union got in such bad shape. Holstein said Bailey originally told union leaders officials from the Dep't of Labor were in town for a routine audit. Only later did they discover the Baileys were subjects of a criminal investigation. [Charleston (W. Va.) Gazette 1/24, 2/11/02]

FOOD & COMMERCIAL WORKERS (UFCW) 
Arkansas Judge Bars Union from Wal-Mart due to Trespass Violations
An Ark. state court judge issued a nationwide injunction Jan. 29 barring the United Food & Commercial Workers from passing out literature or soliciting for the union inside Wal-Mart stores. Judge James Spears of the Chancery Court in Ft. Smith, Ark., determined that UFCW organizers violated state trespassing law when in late Sept. 2001 they participated in a week-long "blitz," entering a number of Sam's Club stores to distribute union literature.   Following a Dec. hearing, Spears issued the order enjoining UFCW from soliciting activity inside any Wal-Mart or Sam's Club stores. Spears said the order was "nationwide in scope."

However, "outside of Arkansas the injunction shall be enforced through the courts of the various states in that a court may consider any law of trespass or affirmative defense peculiar to that state familiar with it. [Wal-Mart] shall register this order in any state in which it desires and proceed from there," Spears said.  This is the second time the judge has acted on Wal-Mart's request for an injunction against UFCW organizing activity on Wal-Mart property.  UFCW spokesman Al Zack said the union will appeal Spear's order in state court.

Wal-Mart spokeswoman Jessica Moser said it is clear from the judge's order that he wants any future complaints of UFCW organizers trespassing on company property to be filed with the local court and not brought back to Arkansas. The company is still trying to determine how best to anticipate future union violations in states outside of Ark., she said.   "We're not going to tolerate them being in our stores and harassing our associates," she said. "We hope they'll abide by the judge's ruling." [BNA 2/5/02]

ELECTRICAL WORKERS (IBEW) / COMMUNICATIONS WORKERS (CWA)
Contractors May Proceed with Antitrust Suit Against New York Local
U.S. Dist. Judge Richard M. Berman (S.D.N.Y., Clinton) ruled Jan. 24 that two telecommunications wiring installation contractors, U.S. Info. Systems Inc. and Odyssey Group Inc.,  may proceed with their claims that Int'l Bhd. of Elec. Workers Local 3 and six contractors that employ Local 3 workers violated federal and state antitrust laws by conspiring to exclude the plaintiffs from telecommunications installation work in the N.Y.C.  area. Berman denied the defendant's motion for summary judgment on the USISI and OGI's claims brought under the Sherman Antitrust Act and state antitrust law, finding that the plaintiffs, adequately pled violations of the acts.

USISI and OGI, who employed workers represented by the Communications Workers of Am., installed wiring used for the transmission, emission, or reception of voice, data, video, and security by cable, optical, or other electromagnetic systems. The defendant contractor installed electrical wiring for all purposes, including telecommunications. This group of electrical contractors included A.R. Communication Contractors Inc., ADCO Elec. Corp., Five Star Elec. Corp., Forest Elec. Corp., IPC Communications Inc., and NEAD Info. Systems.

USISI and OGI alleged that Local 3 and the contractors conspired with each other to coerce building owners, tenants, building managers, general contractors, information technology consultants, and others in the construction industry to keep the plaintiffs out of the market for telecommunications installation work.   They contended that the defendants threatened -- and made good on threats -- that those involved in renovating and construction commercial buildings in the metro area would experience "problems" if one of the plaintiffs or another telecommunications contractor using CWA employees was chosen over one of the defendant contractors. [BNA 2/6/02]

BOILERMAKERS (IBB)
Employees Win $120,000 from Oklahoma Local in Beck Action
Richard Ohse and 60 other employees of the Carlon Corp. won a long-running case on Jan. 31 against Int'l Bhd. of Boilermakers Lodge 465-D in Oklahoma City . Ohse, with the help of Nat'l Right to Work Legal Def. Fdn. attorneys, filed charges with the Nat'l Labor Relations Bd. to reclaim dues that had been illegally collected by the union and used to support political activities. As a result of the NLRB's ruling, the local, also known as Cement Workers Lodge 465-D, will have paid out a total of $120,000 in full refunds of illegally seized dues, plus interest,  to the 61 employees who were the beneficiaries of the complaint. Ohse, and the other Carlon employees have had to wait more than a decade for this ruling. The charge was first filed in 1991, but  it took several years to force the Clinton NLRB to act  on the matter.

"After all of these prosecutorial delays and the union's stonewalling, these employees have finally been made whole," said NRTWLDF's Stefan Gleason. "No matter  how long union officials hold out, they cannot ultimately deny workers their fundamental rights."

The case arose after IBB bosses violated the workers' rights established by the U.S. Supreme Court CWA v. Beck decision. Under Beck, workers who are not protected by a Right-to-Work law may resign from formal union memberships and halt and reclaim the portion of forced union dues spent on politics and other activities unrelated to collective  bargaining. Since Okla. only passed a Right-to-Work law on Sept. 25, 2001, these employees were not protected from forced unionism.  [NRTWLDF 2/7/02; Daily Oklahoman 2/8/02]

SERVICE EMPLOYEES (SEIU)
New York Local Settles Beck Action
Responding to  pressure brought by Nat'l Right to Work Legal Def. Fdn. attorneys, the Nat'l Labor Relations Bd. forced the Service Employees Int'l Union Local 200 Feb. 7 into a settlement  of unfair labor practice charges brought by employees  of the Marsellus Casket Co.  The case was filed by NRTWLDF attorneys for three employees, Mark L. Miller, Scott Bayer, and David Sprague. The Syracuse, N.Y., based local refused their resignations and forced them to continue to pay full union dues, including dues used for political,  ideological, or other non-representational purposes.

Local 200 must refund the three employees' dues and fees that were used for non-representational purposes. The settlement also forces the union to post a notice alerting workers and  Marsellus Casket employees of their right to refrain from formal union membership and the payment of full union dues.

"The union has finally been forced to pay a price for its illegal practice of fleecing employees for political cash," said NRTWLDF's Stefan Gleason.

As part of the settlement, Local 200 bosses must also notify objecting workers what percentage of their dues is being used to fund non-representational activities, including political activities. Under law, an employee may resign from formal union membership, pay a reduced fee, and further challenge the veracity of the union's figures.

The case arose after Local 200 bosses violated the workers' rights established by the U.S. Supreme Court CWA v. Beck decision. Under Beck, workers may halt and reclaim forced union dues spent  on politics and other activities unrelated to collective bargaining. [NRTWLDF 2/7/02]

ACTORS (SAG)
DOL Opens Probe of National Union's Election
The Dep't of Labor is reportedly investigating last year's national election of the Screen Actors Guild to determine whether alleged ballot irregularities influenced the outcome of the vote. Five SAG members petitioned DOL to intervene after SAG's elections committee in Jan. scrapped the results of the Nov. election of SAG President Melissa Gilbert and two other national officers. The members argued that the elections committee lacked the authority to overturn the election and that they were biased toward Valerie Harper, who lost the presidential race to Gilbert by 1,588 votes out of about 28,000 votes cast.

The elections committee voted to scrap the election results because N.Y. members had two extra days to vote and the company that printed the East Coast ballots failed to include a signature line similar to ballots sent to members on the West Coast.

Although the members hoped their DOL petition would derail the new election, it will go as planned because DOL's investigation could last up to 60 days. Ballots were mailed to SAG members Feb. 11 and are due by March 8, when the votes will be tabulated.

Harper issued a statement Feb. 6 saying the Nov. election was "badly bungled" and that she was confident DOL would protect union members' "right to a fair and honest election."

Amy Aquino, a SAG board member who is a Gilbert supporter, said some "Harper supporters took two benign procedural mishaps and they're trying to turn these into violations." In the most extreme case, the government could call for a SAG election that would be supervised by DOL. [L.A. Times 2/7/02]

COMMUNICATIONS WORKERS (CWA)
Welfare Board Files Complaint against New Jersey Local
The government board that runs Passaic County's (N.J.) welfare agency has taken the unusual step of filing an unfair labor practice charge against Communications Workers of America Local 1081, demanding that its leaders apologize for injecting race into their rhetoric and stop interfering with "management rights. " The Board of Social Services has complained that Local 1081 bosses have tried to intimidate the board by raising discrimination issues while opposing a controversial promotion.

The complaint says such tactics have been particularly tough on "a public body with many African-Americans and Latinos serving as commissioners. " It adds that the union's allegations "are personal insults to the heritage and consciousness of public officials who donate their time, energy, and reputation to assist the people of Passaic County.  They devalue the importance of civil rights programs and policies. They are unfair and immoral. " Filing an unfair labor practice charge with the N.J. Public Employment Relations Comm'n is a fairly rare move, especially for management. Longtime union and board officials agreed that the board's complaint was unprecedented. Complaints are investigated by PERC's staff and may proceed to a formal hearing if it appears likely that state labor laws have been violated.

Local 1081 president David Weiner's verbose, sometimes hyperbolic critiques of county government have become a staple of public meetings and newsroom fax machines, particularly following his union's falling out with the ruling Democratic organization over last year's sheriff race.

At issue in the board's complaint is Weiner's hammering of county officials over the promotion in the fall of two welfare investigators to the title of "confidential investigator," a position that the Board of Social Services had dropped months earlier and then reintroduced. Weiner argued that the position, which entails some internal investigations and is not part of the union membership, is effectively a promotion that was handed to political favorites and not advertised as required.

In speeches to commissioners and freeholders, Weiner also pointed out that both new confidential investigators are white, while most of the investigative staff consists of minorities. "Does this inequitable choice of investigators mean that the administration of the board does not trust minorities ... to investigate their co-workers in an efficient and impartial fashion? " Weiner demanded during an October board meeting, where he also noted that his college major was black studies.  "Does this Passaic County version of the hideous Jim Crow laws of our nation's segregationist past portend further declarations of racial prejudice?"

The board's complaint says that half the agency's confidential staff is African-American.  It also notes that a formal grievance that the union, which represents about 400 workers, filed over the promotions does not mention the issue of race, which came up only in union officials speeches.

"Without regard to the truth, Local 1081 leaders engaged in a campaign to defame the [board] ... using taunts of 'racism' and 'Jim Crow' to attempt to intimidate board members," the complaint says.  "The leaders of Local 1081 raised the issue of race for the exclusive purpose of gaining notoriety. " Weiner expressed "regret" for any offense to commissioners, but added, "We will not apologize for calling things as we see them. "  [Record (Bergen Co., N.J.) 2/7/02]

SHEET METAL WORKERS (SMW)
Indiana Salt Permitted to Lie on Job Application
U.S. Court of Appeals for the Seventh Circuit said Feb. 6 that a paid union organizer is permitted to lie on his employment application about his status as a "salt," or about facts that might raise suspicion that he is a union organizer, so long as he has not misrepresented facts relevant to his job qualifications. The lie is not material, the court said in addressing the question left open by the Supreme Court's decision in NLRB v. Town & Country Elec., 516 U.S. 85 (1995), because "an employer cannot turn down a job applicant just because he's a salt or other type of union organizer or supporter."  Salting is the union practice in which organizers obtain employment with a nonunion firm and try to organize the company's employees. Even an Indiana statute that criminalizes intentionally making false statements to obtain employment will be preempted by the Nat'l Labor Relations Act, the Seventh Circuit said, if that state law is interpreted to allow an employer to turn down an applicant because he lied about salt status.

The Seventh Circuit held that even though Michael Starnes had lied about why he left his last job, Hartman Bros. Heating & Air Conditioning violated the NLRA by sending Starnes home after he revealed his status as a paid union organizer. Starnes had stated on his job application that he had been laid off from his previous employment at an $11-per-hour job, when he had actually taken a leave of absence to work at Hartman for $8.50 an hour. Although Hartman justifiably discharged him later that day when the company learned that his driving record prevented him from being insured, a mandatory job qualification, the court enforced the NLRB's order that Starnes be paid for the day up until the time he was justifiably fired.

Judge Richard A. Posner (7th. Cir., Reagan) wrote the decision, and Judges William J. Bauer (7th Cir., Ford) and Terence T. Evans (7th Cir., Clinton) concurred in the opinion. William T. Hopkins of Barnes & Thornburg, Fort Wayne, Ind., represented Hartman. Stephen B. Goldstein, Washington, D.C., represented NLRB. Sheet Metal Workers Int'l Ass'n  Local 20, of Indianapolis, was an intervening respondent in the case. [BNA 2/11/02]

TEACHERS
Ex-South Florida Boss Sentence to 46 Months
U.S. Dist. Judge William P. Dimitrouleas (S.D. Fla., Clinton) sentenced ousted Broward Teachers Union boss  Anthony J. Gentile to 46-month in prison Feb. 8 on child pornography charges. Gentile, once a giant in Florida education and labor relations circles, struggled to compose himself as he apologized to his family, to the union he helped create, and to the court before his sentence was imposed.

Gentile, who began as a teacher in Pennsylvania and rose to command the fifth-largest teachers union in the country, was ordered to pay a $10,000 fine, in addition to the jail time, for indictments in Alabama and Florida. He will not be allowed to work with minors or be involved with youth organizations when he is released.

He was arrested July 26 after he arranged a rendezvous with what he thought was a 14-year-old girl he had befriended on an Internet chat room. The girl turned out to be Ft. Lauderdale Police Detective Richard Love with Law Enforcement Against Child Harm, a task force of federal, county and local investigators. The investigation began on Mar. 30, 2001, when Gentile engaged in an America Online chat with a federal undercover investigator in Alabama masquerading as the teenage girl. Gentile was also indicted in Alabama for sending that agent at least one piece of child pornography. The investigation continued in Florida with investigators using the same screen name.

Gentile could have gotten up to 57 months in prison, but prosecutors did not ask for the maximum. Gentile's attorney and a psychologist said he appeared truly sorry for his crime and provided more than 20 letters from friends and former colleagues praising the 22-year teachers union president. "The name Tony Gentile was legendary among education and union activists throughout Florida," wrote Lynne J. Webb, president of the United School Employees of Pasco County.

John Ristow, spokesman for the BTU, called Gentile's crime an "anomaly" in his life. Although the union has tried to distance itself from Gentile, who resigned in Nov. 2001 in a $140,000 settlement, Ristow said Gentile's leadership ability had left the organization in good shape.

Gentile is not eligible for the least restrictive prison, but will probably end up in a low-security federal prison in Coleman, northwest of Orlando, which has a treatment program for sexual offenders. Dimitrouleas denied Gentile's request to voluntarily surrender himself at a later date, and  U.S. Marshals removed his belt and necktie and led him away. [Sun-Sent. (Ft. Lauderdale) 2/9/02]

GOVERNMENT EMPLOYEES (AFGE)
New York Boss Gets Probation for $192,000 Theft
U.S. Dist. Judge Kimba M. Wood (S.D.N.Y., Reagan) sentenced David Blank, ex-secretary-treasurer of Am. Fed'n of Gov't Employees Local 2094, Jan. 12, 2001, to three years probation and restitution of $192,000, relating to an embezzlement of union funds. The local is connected to the Veterans' Affairs Medical Ctr. in N.Y.C.

Blank pled guilty to a three-count criminal information charging that from Jan. 1992 to Dec. 1994, he participated in a conspiracy to commit mail fraud. This was accomplished by embezzling Local 2094 funds, and by making false statements to, and concealing from, the Dep't of Labor, the fact that he and his co-conspirators had embezzled, misappropriated and misdirected union funds. The information also charged Blank with subscribing to a false personal income tax return for the calendar year 1994 and possessing a firearm in a federal facility.

Reportedly, Blank issued union checks to himself and to third parties for their personal benefit. Blank also used the union's credit card to purchase personal items and services for himself. Blank thereafter made false statements to the Department of Labor in the Annual Reports the union submitted to so as to conceal from DOL the embezzlement, misappropriation and misdirection of union funds, according to charges. Local 2094 was placed under trusteeship in December 1994. [Dep't of Veterans Affairs, Office of Inspector Gen., N.E. Field Office 1/12/01]

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