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

 
ELEVATOR CONSTRUCTORS (IUEC)
More Sentences Announced in Multi-Million Dollar Racketeering Scheme in NYC
The U.S. Ofc. of Labor-Mgmt. Standards announced the following sentences in the $6 million racketeering case against 26 bosses and members of the Intl Union of Elevator Constructors Local One. These members allowed their names to be used for "no-show" jobs extorted from contractors in exchange for "labor peace."  All four were indicted on February 5, 2002 for conspiracy, false pension statements, money laundering conspiracy, money laundering, and unlawful labor payments following a joint investigation by the New York branch of the OLMS, the U.S. Dept. of Labor's Pension and Welfare Benefits Admin., the FBI, and the IRS. They all pled guilty on Oct. 10, 2002, and were all sentenced on Jan. 16 in the U.S. Dist. Ct. for the E. Dist. of NY.

Raymond Costello was sentenced to spend three years on probation and perform 400 hours of community service. Costello was ordered to pay $15,209 in restitution, which will be held by the Court Clerk until his victim, Turner Construction, submits an affidavit of loss to the court. Costello was also given the maximum fine of $5,000 and ordered to pay a $100 assessment.

Michael Coady was sentenced to spend three years on probation and perform 400 hours of community service. Coady was ordered to pay $32,796.96 in restitution, which will be held by the Court Clerk until his victim, a contractor named Morse Diesel, submits an affidavit of loss to the Court. Coady was also fined $500, ordered to pay $600 each month until restitution is completely paid, and ordered to pay a $100 assessment to the Court.

Frank Walker was sentenced to spend three years on probation and perform 400 hours of community service. Walker was ordered to pay $7,338.50 in restitution, which will be held by the Court Clerk until his victim, a contractor named Constructive Industries, submits an affidavit of loss to the Court. Walker was also given the maximum fine of $5,000 and ordered to pay a $100 assessment to the Court.

Steve Schmidt, a member of Elevator Constructors Local One, was sentenced to spend three years on probation and perform 400 hours of community service. Schmidt was ordered to pay $36,000 in restitution, which will be held by the Court Clerk until his victim, a contractor named HRH Construction, submits an affidavit of loss to the Court. Schmidt was also fined $500, ordered to pay $600 each month until restitution is completely paid, and ordered to pay a $100 assessment to the Court. [OLMS 2/3/03]

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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