National Legal and Policy Center -- Organized Labor Accountability Project
 
UNION CORRUPTION UPDATE
 
February 17, 2003 -- Vol. 6, Issue 4

For Influential Leaders & Important Decision Makers:
Information on America's most corrupt & aggressive unions

 
PRODUCTION WORKERS
DOL Sues NY Local for Engaging in Prohibited Transactions
The U.S. Dept. of Labor alleged multiple violations of the Employee Retirement Income Security Act (ERISA) by officials of the Production Workers Union Local 148 welfare and pension plans, in a complaint filed on January 17 in the U.S. Dist. Ct. for NJ, in Newark. Named as defendants were Joseph Nardone, Jr., the current plan administrator, who, in 1998, was removed from his position as the locals president, and Ralph Somma, president of Brueton Industries, a contributing employer to the plans and the current employer-trustee. "This action demonstrates our commitment to protect the hard-earned benefits of American workers," said Francis Clisham, director of the depts. New York Office of the Employee Benefits Security Admin. (EBSA), which investigated the case.

According to the DOL, the two defendants used welfare plan funds to buy property near the funds offices for $300,000, to be used as a parking lot, on the same day that the seller purchased the property for $125,000. The dept's. complaint also alleged that the defendants caused the welfare plan to pay benefits for Sylvia Nardone even though she was not eligible to receive benefits; the defendants caused the plans to improperly pay for Nardone, Jr's. attorney representing him in the Local 148 trusteeship litigation; the defendants caused the welfare plan to pay the salary plus expenses for former Local 911 president Edward Bigham, Jr., even though he did not perform commensurate services for the plan, and that Nardone Jr. caused the welfare fund to pay for expenses incurred by the pension plan providing benefits to employees of the union and the plans from February 1996 through July 1999.

The dept. is seeking to restore to the plans all losses, permanently bar the defendants from serving any ERISA-covered plans, and remove Sylvia Nardone as an eligible welfare plan benefit recipient. The membership of Local 148 includes of a variety of factory workers in the five boroughs of New York, New Jersey and Long Island. [EBSA 2/4/03]

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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