The indictment follows a joint investigation by the OLMS New Orleans District Office and the Department of Labors Employee Benefits Security Administration. The sentencing follows an investigation by the OLMS Phoenix Resident Investigator Office. Hope, W.Va.), was sentenced to one month of incarceration, three years supervised release, ordered to make restitution in the amount of $70,000 (of which $1,775 has already been repaid) and pay a $100 special assessment. On December 2, 2009, in Hamilton County (Ohio) Court of Common Pleas, the following Tiffany Freeman, Tiesha Hamer, Lavina Smith, LaDonna Turner and Britton Russia were charged with forging checks belonging to Musicians Local 1 (located in Cincinnati, Ohio). ), was sentenced to five years probation, with a special condition of home detention for the first six months, and ordered to pay restitution of $16,228.38 and a special assessment of $100. A locked padlock /*-->*/. ), was sentenced to five years of probation, which included six months of home confinement, and ordered to pay restitution in the amount of $24,085.56 for the charge of embezzlement of union funds. On January 29, 2009, White pled guilty to embezzling union funds in the amount of $85,963.31. ), was indicted on one count of embezzling $18,100 between February 2004 and September 2008. Tungett previously made restitution to the union. Brophy had previously paid over $47,172 in restitution. On November 30, 2009, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment 325 (located in Duluth, Minn.), pled guilty to embezzling union funds in the amount of $16,200. On November 18, 2009, in the United States District Court for the Northern District of Georgia, Sonia McGuire, former-treasurer of America Postal Workers Union, Local 3434, (Decatur, Ga.), plead guilty to one count of embezzlement of union funds in the amount of $16,023.12. The indictment follows an investigation by the OLMS Washington District Office. The situation may be as simple as a bookkeeper going on vacation and leaving an attentive part-timer in charge who notices irregularity. The case follows an investigation by the OLMS Minneapolis Resident Investigator Office. On February 4, 2009, in the Court of Common Pleas for Jefferson County, Ohio, Deborah Chichick, former Treasurer of Communication Workers of America Local 4527 (located in Steubenville, Ohio), pled guilty to one count of theft in the amount of $1,440.Chichick was then sentenced to serve one year probation and ordered to make restitution. On April 3, 2007, Brown was indicted on eight counts of embezzling union and apprenticeship funds totaling over $86,500. Before sharing sensitive information, make sure youre on a federal government site. A message for Moscoso seeking comment that was left with a worker who answered the phone listed for Moscoso's business was not immediately returned. On August 20, 2009, in the United States District Court for the District of Minnesota, Daniel Fortier, former Secretary Treasurer of Teamsters Local 970 and former President of Teamsters Joint Council 32 (located in Minneapolis, Minn.), was sentenced to three years probation and ordered to pay restitution in the amount of $13,556.65, a $2,000 fine and 150 hours of community service. Also, Bruno agreed to pay restitution. There have been 300 unions that have discovered theft in the past two years. On February 6, 2009, in the United States District Court for the Southern District of New York, Neil Cremin and Ira Sokol, former New York City Department of Education School Bus Inspectors, pled guilty to accepting bribes in a program receiving federal funds. ), pled guilty to one count of embezzling union funds in the amount of $18,100. The sentencing follows an investigation by the OLMS Cleveland District Office. On September 2, 2009, Witham pled guilty to one count of embezzling union funds in the same amount. On May 6, 2009, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Union Lodge 687 (located in Charleston Heights, S.C.), was sentenced to 12 months and 1 day imprisonment, three years supervised release and was ordered to pay a $100 fine. On September 14, 2009, in the United States District Court for the Western District of Kentucky, Richard M. Clark, former Secretary Treasurer of Letter Carriers Branch 468 (located in Bowling Green, Ky.), pled guilty to embezzling union funds totaling $18,680 and destruction of union records. Subsequently, ORourke was sentenced to two years probation on each count, ordered to make remaining restitution in the amount of $6,059.45, and pay a special assessment of $125. Many times, the embezzlement has been going on for years before discovery. This is both externally from the public and internally from members. The indictment follows an investigation by the OLMS New York District Office. Washington, DC 202101-866-4-USA-DOL1-866-487-2365, File Labor Union, Trusteeship, Employer, and Consultant Reports (EFS), Labor-Management Reporting and Disclosure Act (LMRDA), Poster: Notice of Employee Rights Under Federal Law (Executive Order 13496). Secure .gov websites use HTTPS The plea follows an investigation by the OLMS Cincinnati District Office. On October 2, 2009, in the United States District Court for the Western District of Kentucky, Ray Horton, former employee of United Steelworkers Local 9443 (located in Robards, Ky.), pled guilty to mail fraud and embezzlement of union funds. A .gov website belongs to an official government organization in the United States. On May 14, 2009, she pled guilty to theft of more than $500. The International Brotherhood of Boilermakers Local 154 in Pittsburgh saw its former business manager plead guilty in September 2017 to embezzling approximately $1.5 million, plus tax evasion. On May 6, 2009, Jimenez had pled guilty to one count of making a false entry in or willful concealment of books and records. On April 1, 2009, in the United States District Court for the District of Minnesota, Thomas James Martin, former Business Manager of Plumbers Local 15 (located in Minneapolis, Minn.), was denied his request for an exemption from the LMRDA Section 504 prohibition against persons convicted of certain crimes holding union office. The sentencing follows an investigation by the OLMS St. Louis District Office. According to the Board Chair for Union Academy, Dr. Ann Walters contract expires at the end of the month. On January 29, 2009, in the United States District Court for the Southern District of Ohio, Rebecca Montgomery, former bookkeeper/office secretary for the Machinist Eastern Regional Office (located in Cincinnati, Ohio), was sentenced to one year probation, fined $1,000 and ordered to pay a special assessment fee of $100. The sentencing follows an investigation by the OLMS Cincinnati District Office. On September 4, 2009, in the Huron County (Mich.) District Court, a felony complaint was filed charging Christine Pawlowski, former Financial Secretary of Auto Workers Local 812 (located in Harbor Beach, Mich.), with one count of embezzlement of $1,000 or more but less than $20,000. The indictments follow an investigation by the OLMS Atlanta District Office. A conviction is a judgment based on a jurys verdict, judges finding, or the defendants admission that the defendant is guilty of the crime charged. The plea and sentencing follow an investigation by the OLMS Cincinnati District Office. On November 12, 2009, Kobe was charged in an information with one count of embezzling union funds during a period between 2005 through 2006. On November 17, 2009, in the United States District Court for the Northern District of California, Ruth R. Olson, former Financial Secretary of Amalgamated Transit Union (ATU) Local 1225 (located in Marina, Calif.), was sentenced to four years probation, 200 hours community service, and ordered to pay $12,904.56 in restitution and a $25 special assessment. On January 30, 2009, in the United States District Court for the Eastern District of Wisconsin, Eugene Huss, former Area Vice President of Steelworkers Local 20 (located in Kaukauna, Wis.), was ordered to make restitution in the amount of $2,000 and pay a $100 fine. (CWA) Local 88667 (located in Latrobe, Pa.), was sentenced to 5 years probation and was ordered to pay restitution in the amount of $8,001.86 and a special assessment of $100. Friday, April 9, 2021 Former charter school official sent to prison for embezzling funds HOUSTON The former superintendent of Houston Gateway Academy has been U.S. The judgment follows a joint investigation of Amalgamated Transit Union Local 1181 (the primary union that represents drivers for school bus companies in New York City), as well as the New York City school bus companies, by the OLMS New York District Office, the Department of Labor's Office of the Inspector General, and the FBI. On August 3, 2009, the United States Court of Appeals for the Eleventh Circuit ruled, in Warshauer v. Solis, that the Secretary of Labor did not act arbitrarily and capriciously in requiring a unions designated legal counsel (DLC) to report as an employer on Form LM-10 concerning potential conflict of interest payments to unions or union officials. 2300 As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt. On February 17, 2009, Ramsey was charged with embezzling funds in the same amount. Gina Balaya, public information officer with the U.S. Attorneys Office in theEastern District of Michigan, said, The U.S. Attorneys Office works closely with the Department of Labor, Federal Bureau of Investigation, Internal Revenue Service, and other law enforcement agencies to investigate and prosecute significant financial crimes committed in this district, including fraud and embezzlement. On July 1, 2009, in the United States District Court for the Southern District of Ohio, Larry Ramsey, former Secretary-Treasurer of the Representatives and Organizers Union (located in St. Louisville, Ohio), was sentenced to three years probation, to include six months home confinement, and ordered to pay restitution in the amount of $163,222. The plea follows an investigation by the OLMS Pittsburgh District Office. The sentencing follows an investigation by the OLMS Cincinnati District Office. Bokaiyan was an IT employee at the school who also owned a business called Hot Rod Systems. Houston Gateway Academy is a charter school located in the Gulfgate area of Houston. The Maddalones pled guilty to conspiracy to commit extortion for their participation in a scheme, along with other union officials, to use their union positions and the fear of economic harm to obtain cash bribes from employers. Casesinvolved unions representing nurses, aerospace engineers, firefighters, teachers, film and TV artists, air traffic controllers, musicians, bus inspectors, bakery workers, roofers, postal workers, machinists, ironworkers,steelworkers, dairy workers, plasterers, train operators, plumbers, stagehands, engineers, electricians, heat insulators, missile range workers andbricklayers. Embezzlement plagues union offices around U.S., records show As part of his plea, Garza admitted he awarded a $280,000 no-bid contract to Ahmed Bokaiyan. This sentencing and restitution order sends a clear message that there are consequences for individuals who breach the trust placed in them to be good stewards of union funds.. Shingler was charged with taking union funds in the amount of $2,572. Under terms of a plea deal with federal prosecutors, Edmunds could be sentenced to up to 57 months in prison on charges of money laundering and embezzlement. On September 25, 2009, in the United States District Court for the Western District of Washington, Fawne Lei-Petersen, former office manager of Painters Local 300 (located in Seattle, Wash.), was sentenced to 3 months in prison, 7 months of home confinement, and 36 months of supervised release. On September 24, 2009, in the United States District Court for the Central District of California, Alejandro Stephens, former President of the Service Employees International Union (SEIU) Local 660 (now Local 721) (located in Los Angeles, Calif.), pled guilty to two counts of mail fraud in connection with income fraudulently received from the Voter Improvement Program of the Los Angeles County Federation of Labor, and one count of filing a false tax return related to his failure to report $35,000 fraudulently received from this fund. Elsezy was also ordered to pay restitution in the amount of $44,316.58. The sentencing follows an investigation by the OLMS Cincinnati District Office. On March 25, 2009, Dallas pled guilty to one count of embezzling union funds in the same amount. Her current duties have been reassigned and discussed with her. Usually, the crimes are committed by the union local's bookkeeper, president or treasurer. The sentencing follows an investigation by the OLMS Cincinnati District Office. In this case, two contractors were given prison time and restitution fines. On February 9, 2009, the United States District Court for the Eastern District of New York approved a stipulation ofsettlement between the Department of Labor andLocal 3 of the Bakery Workers (located in Long Island City, N.Y.). On March 12, 2009, in the United States District Court, Southern District of Ohio, Larry Ramsey, former secretary-treasurer of the Representatives and Organizers Union (located in St. Louisville, Ohio), pled guilty to embezzling $163,222 in union funds. Itsfounding pastor is accused of stealing up to $5 million afteraudits and reviewsin the summer of 2017. The sentencing follows an investigation by On February 5, 2009, Harris had pled guilty to embezzlement of union funds. The AEA is the local union for Arlington public school educators. On October 8, 2009, in the United States District Court for the Western District of Kentucky, Daniel Reynolds, former president of PACE Local 05-1737 (located in Louisville, Ky.), was sentenced to 24 months probation on one count of embezzling union funds and 24 months probation on one count of destruction of union records, to be served concurrently. On April 28, 2009, in the United States District Court for the Western District of Pennsylvania, Christine S. Throckmorton, former office secretary/bookkeeper for Hotel Employees Restaurant Employees Local 57 (located in Pittsburgh, Pa.), was charged with one count of embezzling union funds in the amount of $9,674.95. A former unionbusiness manager for Allied Novelty and Production Workers Local 223in New York and former president of Teamsters Local 810in August 2016pleaded guilty tosoliciting and receive kickbacks to influence the operation of an employee benefit plan and commit theftof $1 million. The sentencing follows an investigation by the OLMS Pittsburgh District Office. Laborers Local 657 in Washington, D.C., saw its business manager sentenced to four years in prison in February 2017 for embezzlement and was ordered to pay $1,632,000 in restitution. A .gov website belongs to an official government organization in the United States. In just the past two years, more than 300 union locations have discovered theft, often resulting in more than one person charged in each instance, the records show. The board says Dr. Walters will be employed by Union Academy until the end of June when her contract expires. One of these issues is embezzlement. The sentencing follows an investigation by the OLMS Birmingham Resident Investigator Office. On September 15, 2008, a jury found Cook guilty of one count of embezzling union funds and one count of making a false entry in union records. An investigation concluded that Vafias was involved in a no-show job scheme associated with the 2 Broadway Project and Operating Engineers Local 14 (located in New York City, N.Y.). On December 4, 2009, in the United States District Court for the Western District of Pennsylvania, Christine S. Throckmorton, former office secretary/bookkeeper for the Hotel Employees Restaurant Employees (HERE) Local 57 (located in Pittsburgh, Pa.), pled guilty to one count of embezzlement of union funds in the amount of $9,674.95. On August 10, 2009, in the United States District Court for the Eastern District of Kentucky, James Decker, former Treasurer of Independent Soft Drink Workers Union (formerly located in Burlington, Ky.), was sentenced to ten months imprisonment, two years supervised release and an yet to be determined period of probation. On March 23, 2009, in the United States District Court for the Northern District of Illinois, Robert Walston, former President of Teamsters Local 743 (located in Chicago, Ill.), pled guilty to one count of conspiracy to commit mail fraud, theft from a labor organization and one count of embezzlement of property and other assets of a labor organization in connection with his role in rigging the 2004 elections of union officers. On February 6, 2009, in the United States District Court for the Southern District of New York, Milton Smith, a New York City Department of Education School Bus Inspector, was found guilty of extorting and accepting bribes in a program receiving federal funds. Richard Garza, 61, Houston, pleaded guilty Sept. 20, 2019. Dennis Williams, president of the UAW, said the 415,000-member union takes seriously issues of fraud and wrongdoing. Public File for KBCW-TV / KBCW 44 Cable 12. On November 13, 2009, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment 325 (located in Duluth, Minn.), was charged in an information with one count of embezzlement of union funds during a period between 2005 through 2006. On February 3, 2009, in the United States District Court for the Southern District of West Virginia, Donna Roles, former Financial Secretary of Steelworkers Local 14310 (located in Mt. The charge follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the Railroad Retirement Boards Office of the Inspector General. When it comes to cases regarding embezzlement in unions, there is no shortage of high profile cases to use as examples. On August 6, 2009, in the United States District Court for the Northern District of New York, Donna Caltabiano, former President of AFSCME Local 888 (located in Catskill, N.Y.), was sentenced to six months of home confinement and five years of probation and ordered to make restitution of $23,644.76. On December 10, 2009, in the United States District Court for the District of New Jersey, Kathleen Fonti, former President of Health Professionals and Allied Employees (HPAE) Local 5030 (located in Emerson, N.J.), pled guilty to one count of receipt of improper loans from a labor organization. The union represents more than 700,000 workers - including nearly 60,000 Northern California workers through its Local 1021, and is politically influential, regularly donating millions to Democratic candidates. Rodriguez was sentenced to 18 months imprisonment and two years of supervised release. The plea follows an investigation by the OLMS Atlanta District Office. Your California Privacy Rights / Privacy Policy. In the Fiat Chrysler case in Detroit, money provided by auto companies for worker training was embezzled in 2009-15 by men who were supposed to be working together to negotiate a labor contract rather than divvying up hundreds of thousands of dollars in personal gifts. Usually, its the treasurer, bookkeeper or president actions that come to light. .cd-main-content p, blockquote {margin-bottom:1em;} The indictment follows an investigation by the OLMS Buffalo District Office. Indeed, prosecutors saytheft is common from nonprofits and small businesses,and often goes undetected for years. Texas largest charter school network ousted two of its top leaders and is working with authorities after a forensic review revealed some administrators used school