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Union Corruption Report: August 2011

On August 23, 2011, in the United States District Court for the Northern District of West Virginia, Stephen Koski, former Secretary-Treasurer of Machinists Lodge 1027 (located in Clarksburg, W.Va.), pled guilty to embezzling approximately $1,500 in union funds.  The plea follows an investigation by the OLMS Pittsburgh District Office.

On August 22, 2011, in the United States District Court, Northern District of Ohio, Western Division, two former officers of Steelworkers Local 982 (located in Wapakoneta, Ohio) were sentenced for their crimes.  Tim Fisher, former Secretary-Treasurer of Steelworkers Local 982, was sentenced to five years probation and was ordered to make restitution in the amount of $5,618.60.  On April 19, 2011, Fisher pled guilty to one count of embezzlement.  Following Fisher’s sentencing, Stacy Sacks, former Local 982 President, was sentenced to five years probation and was ordered to make full restitution in the amount of $18,399.36.  On May 4, 2011, Sacks pled guilty to one count of embezzlement and one count of falsification of union records.  The sentencings follow an investigation by the OLMS Cleveland District Office and Department of Labor’s Office of Inspector General.

On August 18, 2011, in the United States District Court for the Eastern District of California, Robert L. Carr, former Financial Secretary-Treasurer of the United Association of Plumbers and Pipefitters Local 228 (located in Yuba City, Calif.), and his wife Theresa Carr were charged in a superseding indictment with three additional counts of embezzlement and the conspiracy to embezzle union funds in the amount of $13,497, in violation of 29 U.S.C. 501(c), 18 U.S.C. 2, and 18 U.S.C. 371.  With the initial indictment that was filed on April 9, 2009, charges total $59,157.  The indictment follows an investigation by the OLMS San Francisco District Office and the Department of Labor’s Office of Inspector General.

On August 18, 2011, in the United States District Court for the Middle District of Florida, John T. Parisi, former business manager of International Brotherhood of Electrical Workers (IBEW) Local 682 (located in St. Petersburg, Fla.), was sentenced to one year of probation and 25 hours of community service, and was ordered to pay a $25 special assessment fee and restitution of $13,053.  On May 18, 2011, Parisi pled guilty to one count of making a false entry in, or willfully concealing, withholding, or destroying any book, record, report or statement required to be kept, in violation of 29 U.S.C. 439(c).  The sentencing follows an investigation by the OLMS Tampa Resident Office.

On August 17, 2011, in the United States District Court for the Eastern District of Arkansas, Peggy Bolen, former Financial Secretary-Treasurer of Steelworkers Local 898 (located in Redfield, Ark.), pled guilty to embezzling $61,541 in union funds.  The plea follows an investigation by the OLMS Dallas District Office.

On August 17, 2011, in the United States District Court for the Eastern District of Wisconsin, Royce Austin, former President of Progressive Organization of Worker Representatives (located in Milwaukee, Wis.), pled guilty to one count of embezzling union funds in the amount of $26,330.80, in violation of 29 U.S.C. 501(c).  Austin’s sentencing is scheduled for November 2011.  The plea follows an investigation by the OLMS Milwaukee District Office.

On August 17, 2011, in the United States District Court for the Northern District of Georgia, Bobby Harrison, former Secretary-Treasurer of American Postal Workers Union (APWU) Local 979 (located in Gainesville, Ga.), pled guilty to one count of embezzling union funds in the amount of $21,737.11.  The plea follows a joint investigation by the OLMS Tampa Resident Office and the United States Postal Service’s Office of Inspector General.

On August 16, 2011, in the Kandiyohi County, Minnesota District Court, a complaint was filed against Cherity Perez, former Secretary-Treasurer of American Postal Workers Union (APWU) Local 631 (located in Willmar, Minn.), charging her with felony theft of $1,240, in violation of Minnesota State Statute 609.52.2(1).  The charge follows an investigation by the OLMS Minneapolis Resident Investigator Office.

On August 16, 2011, in the County of Westmoreland in the state of Pennsylvania, a complaint was filed charging Lesa Major, former Secretary-Treasurer of Communications Workers of America (CWA) Local 14821 (located in Monessen, Pa.), with access device fraud and theft by unlawful taking when she used the union’s ATM card to make unauthorized withdrawals from the union’s account totaling $3,068.94.  The charge follows an investigation by the OLMS Pittsburgh District Office.

On August 11, 2011, in the United States District Court for the Western District of Michigan, Robert Cole, former Financial Secretary of Utility Workers Union of America (UWUA) Local 124 (located in Irons, Mich.), pled guilty to one count of embezzlement of union funds in the amount of $11,605.59, one count of filing a false report, and one count of making false entries in union records.  The plea follows an investigation by the OLMS Detroit District Office.

On August 11, 2011, in the State of Florida, Circuit Court of Nassau County, Dakota Wilson, former Financial Secretary-Treasurer of Steelworkers Local 9-802 (located in Yulee, Fla.), pled guilty to grand theft and was adjudicated guilty.  She was sentenced to five years probation and was ordered to pay $20,157.98 in restitution, $498 in fines, and a teen court service surcharge. On June 7, 2011, Wilson was charged with grand theft of $19,472.53 in union funds and was formally arrested on June 8, 2011.  The sentencing follows an investigation by the OLMS Miami Resident Office.

On August 9, 2011, in the United States District Court for the Middle District of Pennsylvania, Ernest Milewski, former President of the United Food and Commercial Workers (UFCW), Northeast District Council (located in Wilkes-Barre, Pa.), pled guilty to one count of embezzling union funds and one count of embezzling assets of a health care benefit program.  The plea follows a joint investigation by the OLMS Philadelphia District Office, the Department of Labor’s Office of Inspector General, and the Employee Benefits Security Administration.

On August 5, 2011, in the United States District Court for the Western District of Arkansas, Michael J. Curry, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes Division (BMWED) of the International Brotherhood of Teamsters Lodge 1127 (located in Texarkana, Ark.), was sentenced to three years of supervised probation and was ordered to pay $6,996.55 in restitution.  On April 15, 2011, Curry pled guilty to an information charging him with knowingly and willfully embezzling funds belonging to Lodge 1127 in the amount of $6,996.55.  The sentencing follows an investigation by the OLMS Dallas District Office.

On August 5, 2011, in the Chesapeake, Virginia Circuit Court, Larry Brooks, former President of Steelworkers Local 8-543 (located in Hampton, Va.), was sentenced to 12 months in prison, all of which was suspended, and 12 months of unsupervised probation.  Brooks made full restitution of $5,500 at his sentencing, which resulted in his conviction being reduced from a felony to misdemeanor embezzlement.  The sentencing follows an investigation by the OLMS Washington District Office.

On August 4, 2011, in the 187th District Court for Bexar County, Texas, Eddie De Hoyos, former District Vice President for the American Postal Workers Union (APWU) Texas State Association (located in McAllen, Tex.), was ordered to complete 150 hours of community service and a probation period of five years.  De Hoyos was also ordered to pay an administrative fee of $60 per month, each month, court costs/fine of $1,793, restitution of $15,761.21, and a crime stoppers fee of $50.  De Hoyos is to serve a term of imprisonment in the Bexar County Jail for 180 days, or until restitution is paid in full.  The order of deferred adjudication follows an investigation by the OLMS Houston Resident Investigator Office.

On August 3, 2011, in the Circuit Court for the City of Norfolk, Virginia, Leonard Carman, former Financial Secretary of International Brotherhood of Electrical Workers (IBEW) Local 1142 (located in Norfolk, Va.), was indicted on one count of embezzlement of $200 or more, in violation of Virginia Code, Section 18.2-111.  The indictment follows an investigation by the OLMS Washington District Office.

On August 2, 2011, in the United States District Court for the District of South Dakota, Terri Dunkelberger, former Financial Secretary-Treasurer of Amalgamated Transit Union (ATU) Local 1356 (located in Sioux Falls, S.D.), was sentenced to two years probation for embezzling union funds.  Dunkelberger was also ordered to pay $11,848.98 in restitution and a $100 special assessment fee.  The sentencing follows an investigation by the OLMS Minneapolis Resident Investigator Office and Milwaukee District Office.

On August 2, 2011, in the United States District Court for the Northern District of Illinois, Grace Rathke, former office manager for Laborers Local 32 (located in Rockford, Ill.), was indicted on 10 counts of embezzling approximately $200,000 in union funds, in violation of 29 U.S.C. 501(c).  The indictment follows an investigation by the OLMS Chicago District Office and the Department of Labor’s Office of the Inspector General.

 

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Criminal Enforcement Actions 2011

An indictment is a formal accusation or charge based on a finding by a Grand Jury that it is likely that the person charged committed the criminal offense described in the indictment and is the means by which an accused person (defendant) is brought to trial. An indictment raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

An information is a formal accusation of a crime by a government attorney rather than a Grand Jury.  An information raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

charge is an accusation of criminal activity and raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Each count is a separate and distinct offense charged in an indictment or information.

guilty plea is a defendant’s admission to the court that he or she committed the offense charged and an agreement to waive the right to a trial.

conviction is a judgment based on a jury’s verdict, judge’s finding, or the defendant’s admission that the defendant is guilty of the crime charged.

sentence is a judicial determination of the punishment to be imposed on an individual who has plead guilty or has been convicted by a jury or judge of a criminal offense.

Source: Office of Labor-Management Standards (OLMS)

1 comment

  • forgot to say that ernie milewski used to put $5,000 into the joker-poker every evening at jerry bonner’s carriage stop in.

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