Scollo was indicted, along with Gotti and Ciccone, on June 3 of last year for racketeering, extortion, wire-fraud, loan-sharking, illegal gambling, money laundering, witness tampering and other related crimes. In Nov., he pled guilty to extortion and agreed to cooperate with the U.S. Attny's. Ofc. for the E. Dist. of NY.

Scollo testified that as Local 1814 pres., he answered to Ciccone, even though he knew that under a decree in a civil racketeering case, the frmr. union official was not supposed to deal with labor-mgmt. issues. Among the services Scollo performed for Ciccone, starting in 1997, was the collection of payments for "labor peace" from Carmine Ragguci, who owned a Staten Island port company, which Scollo them gave to Ciccone. The payments of around $9,000 came every few months.

During his testimony, tapes of conversations recorded by investigators were played that showed another defendant, Gambino soldier Primo Cassarino, instructing Scollo on how to vote on officer elections at the ILA's Nevada convention in 2000.

Fed. prosecutors say that Scollo is simply the latest in a line of local 1814 presidents whom the mob has controlled for generations. Asked by U.S. Attny. Andrew Genser why he obeyed Ciccone, Scollo simply said, "The way it was, we just did what Sonny wanted." Pressed further, Scollo said, "I didn't want to lose my job...I respected Sonny for what he is...It was alleged he was with the family...The Gambino family." [The New York Times, Newsday  1/29/03]

Fed. Judge Approves Takeover of NJ Longshore Union
Federal Judge John S. Martin, Jr. (S.D. NY, G.H.W. Bush) agreed on Jan. 29 to appoint an administrator for a mob-riddled union that ignored court orders to clean itself up. The next day, he appointed frmr. N.Y.C. Police Commissioner Robert McGuire to take over the union.

Local 1588 of the Intl. Longshoremen's Assn. in Bayonne settled a racketeering case in 1992 filed by the U.S. Attny. for the Sou. Dist. for NY. As part of that settlement, Eugene G'Sell and John Angelone agreed to keep the Genovese crime family out of their union, and to have nothing to do with Genovese associate Joseph Lore. But in a 2001 trial, G'Sell and Angelone detailed how they helped embezzle between $1.3-$2.3 million from the union for Lore's benefit.

Then this past May, the current president of 1588, John Timparano, and five other current and frmr. officials, were indicted in NJ state court for racketeering and extortion. U.S. Attny. James B. Comey asked Judge Martin for the court takeover on Dec. 10. after Timparano announced that he would still conduct officer elections on the 27th.

Lawyers for Local 1588 claimed that the state's indictment against the reputed Genovese associate would soon be dismissed. And ILA Vice President John D. Baker claimed to have already taken action to clean up the mob-riddled local, and that the proposed fed. takeover was unnecessary. But agreeing with the U.S. Attny., Judge Martin said, "By the union's own admission, from the date of the signing of the decree, officers of Local 1588 blatantly and repeatedly violated the terms of the consent decree."

McGuire, the new administrator, was the Police Commissioner from 1978-83. In the 1990s, he supervised the reform of the city’s garment-trucking industry after it had been infiltrated by organized crime. [Newsday 1/29/03, 1/30/03]

TEACHERS (AFT)
1st Charges Filed as AFT Belatedly Takes Over DC Local
The personal driver of disgraced Wash. Tchrs. Union (WTU) president Barbara Bullock was charged with laundering embezzled funds from the union on Jan. 27. That the charges were contained in an "Information" filed with the U.S. Dist. Ct. for D.C. -- not an indictment -- indicates that Leroy Holmes may be cooperating in the investigation of Bullock, ex-WTU Exec. Asst. Gwendolyn Hemphill, ex-Treasurer James O. Baxter, and some of their relatives, for embezzling millions of dollars from the WTU for at least five years.

And after years of ignoring the apparent cash-flow problems in the WTU, the Amer. Fedtn. of Teachers finally stepped in on Jan. 22, taking over the WTU. The AFT was forced to take over the WTU after its auditors concluded that Bullock and her cohorts stole some $5 million. With the WTU's Exec. Bd. failing to detect any problem during the years in which the reported embezzlement took place, outside intervention was necessary.

But even as the AFT filed suit against the frmr. officials, U.S. Dist. Judge Emmet G. Sullivan (U.S.D.C., DC, Clinton), considered a request by high school history teacher Nathan Saunders that a court-appointed receiver take over the WTU. Saunders and other D.C. teachers wonder why the AFT failed to take action after Bullock never produced an audit of the WTU, as required of all AFT affiliates every two years.

In the Information, Holmes was charged with money laundering in violation of 18 U.S.C., Sec. 1956 (h). Holmes allegedly cashed WTU checks totaling more than $1 million, kept about $1,875 each time, then gave the rest back to one of the frmr. officials, who would use the cash to for personal purchases made on WTU credit cards. Many of these payments were then categorized as "membership services." [Education Week 1/29/03, U.S.A.O. D.C. 1/27/03, Washington Post 1/23/03]

LABORERS (LIUNA)
Mob-Infested Chicago Local Suggests Ex-AG as Temporary Supervisor
Reeling from the expulsion of three organized crime members from its hierarchy, the new president of a Chicago Laborers union has asked that a frmr. state attny. general be appointed to oversee the union. But with Roland Burris having been a character witness for a Teamster expelled from office for associating with organized crime, it remains an open question whether Burris will be approved.

Last January, the "in-house judge" of the Laborers' Intl. Union of N. Amer. permanently barred three relatives from holding office in Local 1001. Based on the testimony of law enforcement officials, frmr. mob associates, and informants under witness protection, Peter F. Vaira concluded that Bruno Caruso, his brother, Frank "Toots", and their first cousin, Leo, had been associates of the mafia, known in Chicago as the "Outfit," for more than 40 years.

LIUNA officials in Wash. D.C. are still accusing Local 1001 of corruption and other connections to the "Outfit" -- a charge that, according to a news release, Local 1001 officials "stridently refute." But on Jan. 17, Local bosses met with an unnamed "national union official" and "agreed to enter into a voluntary supervision agreement  if Burris is appointed to that role."

This is not Burris's first involvement with allegedly corrupt unions. While serving as attny. gen. in 1994, Burris was a character witness for Robert T. Simpson Jr., frmr. pres. of Intl. Bhd. of Teamsters (IBT) Local 743. In spite of that testimony, the fed. Independent Rev. Bd. (IRB) ruled that Simpson had allowed Donald Peters to continue his influence of the Chicago local after Peters had agreed to have nothing to do with the union. Peters was named as a defendant in the 1988 fed. racketeering lawsuit against the IBT.

Peters agreed to resign from all offices held in the IBT. But the IRB, created to oversee the entire union as part of the settlement of the lawsuit, ruled in ‘94 that Peters -- with Simpson's help -- maintained an office at Local 743, attended Local meetings, and was paid by the Local for consulting and traveling expenses. In 1996, Fed. Judge David N. Edelstein (U.S.D.C. S.D.NY, Truman), upheld the IRB's decision against Simpson's appeal.

Apart from Burris's willingness to testify to the "character" of a corrupt Teamster boss, LIUNA's "in-house prosecutor," Robert Luskin, questioned whether Burris had enough background in unions to to know where to look for evidence of corruption, such as embezzled pensions, or kickback deals with contractors. Luskin also said "many more [Local 1001 members] will be disciplined," based on evidence already gathered. [Local 1001 News Release, 1/18/03: Chicago Tribune, 1/18/03: U.S. v. IBT 931 F. Supp. 1074; 1996 U.S. Dist.]

ELEVATOR CONSTRUCTORS (IUEC)
20th Defendant Pleads Guilty in NYC Racketeering Case
William Barthold became the 20th person to plead guilty, on Jan. 21, to his role in a racketeering scheme at more than 20 New York City construction sites from 1989-2001. The scheme of payments for no-show jobs and "labor peace" cost more than $6 million in lost wages and benefits.

Barthold, a representative of Local 1 of the Intl. Union of Elevator Constructors, and other union members submitted fraudulent time sheets to the construction sites. Many of the members participating in the no-show scheme actually claimed to have worked at multiple sites at the exact same time. Barthold and 26 other Local 1 officials were indicted on Feb. 7, 2002 on 137 counts of unlawful payments for labor under the Taft-Hartley Act and the laundering of those payments in violation of the Racketeering, Influenced & Corrupt Organizations Act (RICO).

Barthold himself ended up strengthening the U.S. Attny's case when an unidentified person turned over to the FBI a black, leather-bound book belonging to Barthold. In that book were the names of 22 of the 27 indicted members, along with their home and cell phone numbers. By pleading guilty, William Barthold will have to spend two years in prison and forfeit more than $200,000. But his son, Brian, who is also under investigation, will likely avoid a trial, acc. to the New York Post.

Barthold will be sentenced on April 23 by Federal Judge David Trager (U.S.D.C. E.D.N.Y., Clinton). [U.S.A.O. E.D.NY 1/26/03, New York Post 1/19/03]

UNION DUES
Agreement Between Teamsters and UPS Undermines Right to Work Laws
On Jan. 28, attorneys with the Natl. Right to Work Legal Defense Fndtn. filed an  employee's legal challenge to the national contract signed by United Parcel Services (UPS) and the Teamsters union that illegally  requires company officials to pressure tens of thousands of workers to join the union. Douglas Ragone, a non-union member, filed the unfair labor practice charges with the National Labor Relations Board (NLRB) against UPS and the Teamsters. The NLRB is responsible for investigating the charges and will decide whether to prosecute the union and UPS.

A contract provision requires UPS officials in Right to Work states to tell new employees that they should become full dues-paying union members. Ragone is challenging the agreement because the National Labor Relations Act prohibits employers from supporting unions and coercing employees into joining them. In running afoul of federal statutes, the agreement violates the spirit of North Carolina's highly popular Right to Work law. A state Right to Work law frees workers from being forced to join or to pay union dues as a condition of employment.

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

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TEAMSTERS (IBT)
Ky Sup. Ct. Upholds Indictment of Teamsters in ‘95 Election Case
The Ky. Supreme Court, on Jan. 23, upheld the indictment of four men who allegedly violated state campaign spending limits by coordinating a joint effort of the Paul Patton campaign and the Intl. Bhd. of Teamsters in the 1995 gubernatorial election.

Patton, the current governor, beat Republican Larry Forgy by just 2.2 percent. But after a series of articles by the Louisville Courier-Journal on irregularities in the Democrats' voter turnout drive, Patton ordered an investigation by Attny. General Ben Chandler, also a Democrat. Patton wasn't happy, however, when a special grand jury indicted his chief of staff and campaign mgr., Andrew "Skipper" Martin; his liaison to Big Labor, Danny Ross; Lon Fields, frmr. pres. of Teamster Local 89; and Fields lieutenant Robert Winstead.

According to the 1998 indictment, the four arranged for Ross, officially working for Martin on the Patton campaign, to be paid by the Teamsters union. At a time when the maximum legal contribution to state candidates was $500, the Teamsters were charged with contributing $20,000 to the Patton campaign by their payments to Ross. In June 1999, Circ. Judge William Trude, Jr. dismissed the indictment, claiming that it was so vague and overly broad that it violated the First Amendment rights of campaign contributors.

The Ky. Ct. of Appeals reinstated the indictments in 2000, and the Ky. high court upheld them by a 4-1 vote, ruling that the four were not indicted for constitutionally protected speech, but solely for exceeding the legal contribution limit at the time of the ‘95 campaign. [Louisville Courier-Journal 1/24/03]

Hoffa NJ Vice President Charged by Union with Mob Links
The Intl. Bhd. of Teamsters filed internal charges of links to organized crime against one of its vice presidents on Jan. 21. The internal charges come three years after Donato DeSanti was first accused of of improper behavior while running for vice pres. on James Hoffa's slate.

Hoffa's opponent, Tom Leedham, accused the president of IBT Local 701 in New Brunswick, NJ, of associating with a barred Teamster member who had earlier been disqualified as a part of Hoffa's slate of natl. officer candidates. Leedham's allegations did not prevent DeSanti, or Hoffa, from taking office. But the more recent charges appear to have stuck to DeSanti.

According to the IBT, DeSanti conspired with a member of the Genovese crime family, along with a convicted trucking racketeer, to unionize a T.J. Maxx warehouse in Philadelphia, then kick back a portion of the employees' wages to organized crime. The Genovese member, Michael Sciarra, ran IBT Local 560 in Union City, NJ, during the 1990s, intimidating members and attempting to loot millions of dollars from the pension fund. He and his allies were finally thrown out by a court-appointed trusteeship and free elections in Dec. 1999.

Frank Walsh, a trucking company owner in Massena, NY, allegedly participated with DeSanti and Sciarra in the conspiracy to pay the T.J. Maxx workers less than the regular Teamster wage. He was sentenced to four years in prison in 1990 for a similar scheme involving Local 560 officials, incl. Anthony Provenzano, a suspect in the late Jimmy Hoffa's disappearance.

The IBT's Exec. Bd. will appoint a panel to try and punish DeSanti, should he be found guilty of the charges against him. [The New York Times 1/25/03]

Rev. Bd. Charges Against NY Local Made Public
In a mid-Jan. letter to the members of Local 456, Intl. Bhd. of Teamsters president James Hoffa outlined the results of a 13 month investigation by the union's Independent Rev. Bd. (IRB) that led to the IBT takeover of the Elmsford Local.

The IRB was established under the jurisdiction of the U.S. Dist. Ct. for the Sou. Dist. of NY in 1989 to root out corruption in the Teamsters. In 1999, the IRB concluded that Local 456 pres. Edward Doyle Sr. took part in a bribery scheme in which a Yonkers car dealer sold 12 cars to Local 456 while accepting the Local's used cars at less than fair value. Doyle and other bosses then bought back the used cars at a sharp discount. Doyle agreed to a seven-year suspension from the union and resigned his office. But Doyle remained as head of the Westchester-Putnum Bldg. & Construction Trades Council. His brother, Bernard, took over as pres. of the Local, and his son, Edward, Jr., remained on the Exec. Bd. of Local 456.

According to the Hoffa letter, the IRB found evidence of improper supervision of local funds. Bernard Doyle, for instance, failed to get the Board's approval for a $2 million fund transfer. The Bd. apparently failed to verify bank account balances. And, according to the Hoffa letter, "the Local Union has failed to maintain proper records with respect to $3 million loan to the Local's Holding Corporation.

The IRB also documented a pattern of nepotism in the Local by the Doyle family, where three generations have exercised considerable influence in a union that has not had a contested election since 1971. Current pres. Bernard Doyle is accused of arbitrarily choosing members, and doling out construction jobs on the basis of favoritism, not merit. Finally, the IRB charges that Doyle used the union credit card at restaurants near his home 54 times between Feb. 1999 and March 2001. Forty five of those dinners were on Friday or Saturday nights. According to the Hoffa letter, "The IRB report raises serious questions as to whether these meals were related to Local Union business." [Journal-News 1/19/03]

CARPENTERS (UBC)
Michigan Regional Officials Indicted for Misappropriation of Union Assets
Warren City Councilman William H. Barnwell and four other state officials were indicted on Jan. 24 for claiming union pay and benefits while they worked on some fellow bosses' new home.

Barnwell is director of organizing for the Michigan Regional Council of Carpenters. The other officials indicted are: Edwin R. Nyhus, Charles S. Jackson, and David and Sandra Williamson. According to the indictment, Barnwell and the others took salaries, allowances and pension contributions between Dec. 1997 and April 1998 as they worked on the Williamsons' new house. The Williamsons are also accused of lying to federal agents.

Elected to the Warren City Council in 1999, Barnwell will be forced to leave if he is convicted of the felony charges of misappropriation and conspiracy, each of which carries a maximum penalty of five years in prison and a $250,000 fine. The five were indicted in the U.S. Dist. Ct. for the E. Dist. of Michigan. [Macomb Daily 1/27/03]

UNION DEMOCRACY
Settlement of Election Ballot Dispute in Texas
On Jan. 3, a Stipulation of Settlement between the U.S. Dept. of Labor and Local 732 of the American Postal Workers Union was approved by Magistrate Judge Jeff Kaplan of the U.S. Ct. for the N. Dist. of Texas.

The stipulation requires the local union to open and count 75 ballots cast by eligible members that were not included in the tally completed on May 19, 2001. After the tally of these 75 ballots is completed and the results of the May 19, 2001 officer election are revised accordingly, The U.S. Ofc. of Labor-Mgmt. Standards (OLMS) will supervise new nominations and a new election for all Local 732 offices affected by the 67 votes that were cast by ineligible persons. OLMS will complete this supervised election on or before May 31, 2003. [OLMS 1/21/03]

Previously Barred Member Allowed to Run for Union Office in Washington State
On Jan. 7, a stipulation and order of settlement between the U.S. Dept. of Labor and the Bremerton Metal Trades Council (BMTC) was approved by the U.S. Dist. Ct. for the W. Dist. of Washington.

After an investigation by the Seattle branch of the U.S. Ofc. of Labor-Mgmt. Standards, the DOL filed suit against the BMTC for not allowing a member of an affiliated American Federation of Government Employees (AFGE) local to run for office because the AFGE national union is not affiliated with the Metal Trades Department of the AFL-CIO. The case was in the district court on remand from the Ninth Circ. Ct. of Appeals which ruled for DOL on the jurisdictional issues raised by the BMTC but remanded it for further factfinding on the election issues.

Under the terms of the settlement, OLMS will supervise a new election of officers by July 31, 2003. [OLMS 1/23/03]

AUTO WORKERS (UAW)
Ex-Wisc. Secy.-Treasurer Sentenced for Embezzlement
On Jan. 9, in the U.S. Dist. Ct. for the East. Dist. of Wisconsin, Kim M. Conner, former financial secy.-treasurer of United Auto Workers Local 469, was sentenced to six months imprisonment followed by six months of home confinement and three years of supervised release. Conner was ordered to make full restitution of $54,317.39, pay a special assessment of $125, and perform five days of community service. Conner pled guilty on October 10, 2002 to one count of embezzlement of union funds and one count of filing a false LM-2 report following an investigation by the  Milwaukee branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS 1/21/03]

TRANSPORTATION UNION (UTU)
Ex-Montana Treasurer Indicted for Embezzlement
On Jan. 8, in the U.S. Dist. Ct. for the Dist. of Montana, Frank Darvis, former treasurer of United Transportation Union Local 891, was indicted on one count of embezzling $29,865 in union funds following an investigation by the Denver branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS 1/21/03]

BAKERY & TOBACCO WORKERS (BC&T)
Ex-Virginia Financial Secy. Indicted for Embezzlement
Paul J. McNulty, U.S. Attny. for the East. Dist. of Virginia, and Michael B. Cahir, Dist. Dir., Washington Dist. Ofc., Dept. of Labor, announced the federal indictment yesterday of Barbara Ann Fields, age 42, of Alberta, Virginia.  Fields is charged with one count of embezzlement of union funds.  She faces a maximum penalty of five years imprisonment and a fine of up to $250,000.

The indictment alleges that Fields was the Financial Secretary for the Petersburg-based Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, Local 255-T.  The indictment alleges that during the period from June 1997 until July 2001, Fields embezzled $10,557.79 by cashing union checks and making cash withdrawals from the Local 255-T checking account. To conceal her embezzlement, Fields forged the signature of the former Local 255-T president on some of the unauthorized checks.

The indictment follows an investigation by the U.S. Dept. of Labor.  The case is being prosecuted by Asst. U.S. Attny. Roderick C. Young. [U.S.A.O. E.D. Va. 1/24/03]

STEELWORKERS (USW)
W. Va. Computer Specialist Indicted for Embezzlement
A fed. grand jury in Charleston indicted Julia Mynes on Jan. 9 for embezzling some $4,000 from a local steelworkers union. According to the indictment, Mynes worked for United Steel Workers Local 14614 as a computer specialist, which included installing a computerized check-writing system. From  Dec. 2000 through Jan. 2001, Mynes reportedly stole about $4,001 from the South Charleston local, in violation of 29 U.S.C., Sec. 501(c). Mynes was scheduled to be arraigned before U.S. Magistrate Judge Mary Stanley on Jan. 30. [U.S.A.O. S. Dist. W. Va.. 1/15/03]

MACHINISTS (IAM)
Ex-Arkansas Office Mgr. Charged with Embezzlement
On Jan. 6, in Bradley County (Arkansas) Circuit Court, Tasha R. Word, former ofc. secy. for Machinist Local Lodge 484, was charged in a one-count information with credit card fraud and in a seven-count information with forgery and theft of property totaling $1,191. The charges were brought following an investigation by the Dallas branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS 1/21/03]

HOTEL & RESTAURANT EMPLOYEES (HERE)
Frmr. Ohio Office Secy. Pleads Guilty to Theft
On Jan. 8, in the Hamilton County (Ohio) Municipal Court, Michelle Back, former ofc. secy. for Local 12 of the Hotel Employees and Restaurant Employees International Union, pled guilty to theft of union funds and was sentenced to one year probation, a $100 fine, and court costs. Back was charged following an investigation by the Cincinnati branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS 1/23/03]

GRAPHIC COMMUNICATIONS (GCIU)
Ex-Minn. Treasurer Sentenced for Embezzlement
On Jan. 6, in Blue Earth (Minnesota) District Court, Adam Wobbrock, former treasurer of Graphic Communications International Union Local 379-C, was sentenced to ten days in jail with work release and fined $537. On Dec. 11, 2002, Wobbrock pled guilty to one count of theft related to an embezzlement of $3,675.36 in union funds. The charges were brought following an investigation by the Milwaukee branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS 1/21/03]

MACHINISTS (IAM)
Ex-Office Secy. Charged with Theft, Forgery in Arkansas Court
On Jan. 6, in Bradley County (Arkansas) Circ. Ct., Tasha R. Word, former office secretary for Machinist Local Lodge 484, was charged in a one-count information with credit card fraud and in a seven-count information with forgery and theft of property totaling $1,191. The charges were brought following an investigation by the Dallas branch of the U.S. Ofc. of Labor-Mgmt. Standards. [OLMS 1/23/03]

Union Corruption Update is made possible by the generous contributions from readers like you. NLPC, PO Box 6821, Falls Church, VA 22040. Thank you. Union Corruption Update is part of NLPC's Organized Labor Accountability Project which is investigating and exposing corruption in the Teamsters, LIUNA, AFL-CIO and many other union organizations. NLPC is a nonpartisan, nonprofit foundation promoting ethics and accountability in government through research, education and legal action.

In addition to the unions and organizations covered in this Union Corruption Update, readers can look forward to news and information on other corrupt and abusive unions in future editions.  All back issues of the Union Corruption Update can be viewed at NLPC's website (http://www.nlpc.org).  Also available is a union-by-union and state-by-state index of all Union Corruption Update articles. If you have story ideas or suggestions for future editions of Union Corruption Update, please email NLPC at nlpc@nlpc.org.  Thank you.
 
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