On August 11, 2009, in the United States District Court for the District of New Jersey, Richard Klemser, former Treasurer of International Association of Machinist (IAM) Local 1041 (located in West Long Branch, N.J.), was sentenced to one year imprisonment and ordered to pay restitution in the amount of $64,000 for embezzling union funds. On October 6, 2009, in the United States District Court for the Central District of California, Teresa Cora Luna, former office manager/bookkeeper of International Alliance of Theatrical Stage Employees (IATSE) Local 504 (located in Anaheim, Calif.), was sentenced to five months in federal prison and five months in a community corrections facility, to be followed by a three year period of supervised release and a 13-year bar from future union officer or employment service following her release. Finance experts say theft related to labor unions isa reflection of what's happening throughout society. On February 19, 2009, in the United States District Court for the Northern District of California, San Jose Division, an information was filed charging Ruth R. Olson, former Financial Secretary of Amalgamated Transit Union (ATU) Local 1225 (located in Marina, Calif.), with one count of false entry in or willful concealment of books and records. Frequently, money goes to buy luxury items. On December 14, 2009, in the United States District Court for the Southern District of New York, Nicholas Maddalone and Paul Maddalone, former Executive Board Members of Amalgamated Transit Union Local 1181 (the primary union that represents school bus drivers in New York City), were sentenced to ten months incarceration, two years supervised release, and ordered to make restitution, respectively, in the amount of $45,000 and $31,000. On July 15, 2009, in the United States District Court for the Western District of Texas, Paul Hernandez, former Secretary Treasurer and former Joint Apprenticeship and Training Committee (JATC) Director of the International Brotherhood of Electrical Workers (IBEW) Local 60 (located in San Antonio, Texas), was charged in a one count indictment with embezzling funds from an employee benefit plan. Your California Privacy Rights / Privacy Policy. On May 1, 2009, Hooks pled guilty to embezzling $15,192 in union funds. 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). On October 29, 2009, in the United States District Court for the Southern District of Ohio, Donald Spell, former office employee for Hotel Employees & Restaurant Employees (HERE) Local 12 (formerly located in Cincinnati, Ohio), pled guilty to embezzling union funds totaling $16,422. Even more astounding is that in many of these cases several people are part of the situation with embezzlement rather than just one person. ), pled guilty to one count of embezzling union funds in the amount of $7,731.54. 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. On May 8, 2009, in the United States District Court for the Northern District of Indiana, Jeffrey C. Harris, former Financial Secretary-Treasurer of Glass Molders and Plastics Local 285 (located in Fort Wayne, Ind. .table thead th {background-color:#f1f1f1;color:#222;} On January 30, 2009, in the United States District Court for the Eastern District of Pennsylvania, Grace Gaines, former Treasurer of American Federation of Teachers (AFT) Local 4973 (located in Philadelphia, Pa.), was sentenced to five years probation including six months home confinement with electronic monitoring, ordered to pay restitution in the amount $11,328.00 and a special assessment of $400.00.On October 24, 2008, Gaines pled guilty to a four count indictment for embezzlement of union funds in the same amount. The founder of Prim Capital Corp., who managed as much as $250 million for the National Basketball Players Association, was sentenced in June 2014 to 18 months in prison for trying to defraud the union of $3 million. The Office of Labor-Management Standards (OLMS) opened an investigation after an internal audit by Steelworkers Local 145 revealed a loss of union funds. Embezzlement plagues union offices around U.S., records show Usually, the crimes are committed by the union local's bookkeeper, president or treasurer. A Maryland woman who gambled away nearly $1.5 million in funds from the elite dance school where she served as comptroller pleaded guilty to fraud in U.S. District Court The Sacramento Bee first reported the charges and her resignation. On February 3, 2009, Rhein pled guilty to a fourteen count indictment that included six counts of embezzlement of union funds totaling $43,600 and eight counts of false statements. The thing that I think is most surprising is that a lot of small businesses dont think it can happen. The plea follows an investigation by the OLMS Cincinnati District Office. The sentencing follows an investigation by the OLMS Cleveland District Office. A locked padlock The defendant is now a convicted felon and will pay back Steelworkers Local 145 for the funds he embezzled. 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. Just to clarify, that is restitution of more than $102 million. He said the team has implemented as many safeguards as possible, with multiple signatures required on all financial paperwork with real-time bank account reviews. Renew Dr. Ann Walters contract as Headmaster at Union Academy The sentencing follows an investigation by the OLMS Chicago District Office. The plea follows an investigation by the OLMS San Francisco District Office. Tungett was also ordered to attend a drug aftercare program, pay a $250 fine and a $25 special assessment. An OLMS investigation concluded that Elsezy created and cashed checks, drawn from the unions bank account, for personal use, affixed the signature stamps of the President and Treasurer, altered the name of the payees in the union's accounting system, and removed checks from the union's records to conceal the true beneficiary of the funds. On June 10, 2009, in the United States District Court for the Western District of Michigan, Belinda K. Woods, former President of Communications Workers Local 84-415 (located in Grand Rapids, Mich.), pled guilty to one count of embezzling union funds in the amount of $10,988.86 and one count of falsifying union records. The sentencing follows an investigation by the OLMS Seattle District Office. Free Press staff writer Eric D. Lawrence contributed to this report. The Ingham County DA made headlines for prosecuting 53 embezzlement cases in 2014, up from 35 cases the year prior, according to the Lansing State Journal. embezzlement Official websites use .gov Another group hit hard by embezzlement are churches. We had our union president build a big elaborate house with materials, money and labor through our union. On November 5, 2009, in the City and County of Denver District Court, Denver, Colorado, Sherri Pemberton, former President of American Federation of Government Employees (AFGE) Local 1802 (located in Denver, Colo.), pled guilty to one count of theft. On February 19, 2009, in the United States District Court for the Northern District of California, an information was filed charging Audrea Ann Jimenez, former secretary/bookkeeper of Carpenters Local 262 (located in San Jose, Calif.), with one count of false entry in or willful concealment of books and records. Brown was then sentenced to three years probation and 30 days of electronic home monitoring and ordered to make restitution in an amount yet to be determined. Walston, Bania and Mosley were ordered to pay restitution totaling $900,936. Local Official Accused of Embezzling ), was sentenced to three years probation and ordered to make restitution in the amount of $5,048. On May 1, 2009, in the United States District Court for the Northern District of Ohio, Jack Hooks, former Treasurer of AFSCME Local 11, Chapter 7010 (located in Mansfield, Ohio), pled guilty to embezzling union funds in the amount of $15,192. The indictment follows an investigation by the OLMS Detroit District Office. The charge follows an investigation by theOLMSDetroit District Office. Union Academy headmaster will not return after contract expires On August 11, 2009, in the United States District Court for the District of South Carolina, Christina Geathers, former Financial Secretary-Treasurer of Steelworkers Local 357 (located in Georgetown, S.C.), pled guilty to one count of embezzling union funds totaling approximately $36,865.18. Ann Marie Shaffer, 57, of Livonia was sentenced toa year in prison after admitting to embezzling $101,059.56 in 2008-10. The sentencing follows an investigation by the OLMS Dallas District Office. Johnson was also ordered to make restitution in the amount of $46,653. 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. The sentencing follows an investigation by OLMS Dallas District Office, EBSA Dallas District Office, and the Department of Labors Office of Inspector General. The indictment follows an investigation by the OLMS Detroit District Office. Well, Ive just identified 80% of the country.. The final of four charged in connection with the theft of $200,000 from a bank in Houston and allegedly transferred to New York has turned herself in to authorities, A 38-year-old resident of Richmond has been charged for operating as a money mule as part of her involvement in a nationwide romance fraud scheme, A 61-year-old man has been sent to federal prison following his conviction of money laundering as well as conspiracy to commit and committing wire fraud, Southern District of Texas .usa-footer .grid-container {padding-left: 30px!important;} There have been 300 unions that have discovered theft in the past two years. In June 2014 to the founder of Prim Capital Corp was sentenced to 18 months. On On August 27, September 1, September 3, and September 29, 2009, Six former officials of Teamsters 743 (located in Chicago, Ill.) were sentenced in the United States District Court for the Northern District of Illinois in connection with their roles in rigging the unions 2004 officer election and its rerun. On August 12, 2008, Rhoades was indicted on one count of embezzling union funds in the amount of $8,001.86 between June 2006 and November 2006. The sentencing follows an investigation by the OLMS New Orleans District Office. Please enter valid email address to continue. On October 7, 2009, in Goodhue County (Minnesota) District Court, a felony complaint was filed charging Michelle Adler, former Secretary-Treasurer of Government Security Officers Local 24 (located in Lake City, Minn.), with one count of theft of more than $1,000, but not more than $5,000. Mike Roth, a spokesman for the union, did not answer a question about when Hernandez resigned. On October 19, 2009, in the United States District Court for the District of Maine, Brian Wheeler, former Treasurer of Painters Local 1468 (located in Brentwood, N.H.), was sentenced to five years probation, and was ordered to pay restitution in the amount of $5, 000, a $5,000 fine, and a $100 special assessment. Additionally, Luna was ordered to pay restitution in the amount of $67,416.21 and a $100 assessment. The plea follows an investigation by the OLMS Buffalo District Office. The sentencing follows an investigation by the OLMS Buffalo District Office. ), pled guilty to one count of embezzlement of union funds of over $5,000. On July 30, 2009, in the United States District Court for the Northern District of Ohio, Michael Kelly, former Secretary-Treasurer for the United Transportation Union (UTU) Local 586 (located in Crestline, Ohio), pled guilty to one count of embezzling union funds in the amount of $97,970.71. On August 27, 2009, in the United States District Court for the Central District of California, Alejandro Stephens, former President of Service Employees International Union (SEIU) Local 660 (located in Los Angeles, Calif.), was charged in an information with three counts of mail fraud and filing a false tax return. On March 27, 2009, in the United States District Court for the Northern District of Florida, Glen Gard, former Secretary-Treasurer of Machinists Local 2460 (located in Pensacola, Fla.), pled guilty to one count of embezzling union funds in the amount of approximately $90,500.The plea follows an investigation by the OLMS Miami Resident Investigator Office. Lock The plea follows an investigation by the OLMS Philadelphia District Office. ), was sentenced to six months home detention and five years of supervision for the charge of bank fraud. The plea and sentencing follows an investigation by the OLMS Cincinnati District Office. On February 27, 2009, in the United States District Court for the Eastern District of Wisconsin, Mary Schaeuble, Chair of the Insurance Committee of Steelworkers Local 20 (located in Kaukauna, Wis.), was sentenced to two years probation and ordered to pay a $200 special assessment and to make restitution in the amount of $4,000.On November 25, 2008, Schaeuble pled guilty to two counts of embezzling union funds in the amount of $730.94.The sentencing follows an investigation by the OLMS Milwaukee District Office. The incident created distrust that remains years later. 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. 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.). Each count is a separate and distinct offense charged in an indictment or information. The sentencing follows a joint investigation by the OLMS Cleveland District Office and the Veterans Administration's Office of the Inspector General. The sentencing follows an investigation by the OLMS St. Louis District Office. The charge follows an investigation by the OLMS Cincinnati District Office. This site is protected by reCAPTCHA and the Google. The sentencing follows an investigation by the OLMS Buffalo District Office. On May 14, 2009, she pled guilty to theft of more than $500. On February 3, 2009, Wiggins pled guilty to one count of embezzling union funds in the same amount. He also was ordered to make restitution of $47,079.21 and pay a $125 assessment. The sentencing follows an investigation by the OLMS St. Louis District Office. 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 February 17, 2009, Ortiz pled guilty to extorting and accepting bribes in a program receiving federal funds. On April 2, 2009, in the Hennepin County District Court of Minnesota, William Thomas Brown, former Financial Secretary-Treasurer of IBEW Local 886 (located in New Hope, Minn.), was convicted of one felony count of theft over $1,000 associated with the theft of union funds in the amount of $6,467.05. 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. She is scheduled to be sentenced May 1. Getzen had previously made restitution in the amount of $7,012. On April 10, 2009, in the United States District Court for the Southern District of Georgia, Dianne Drawdy, former Financial Secretary of Security Police Fire Professionals Local 576 (located in Baxley, Ga.), was indicted on sixteen counts of embezzling union funds in the amount of approximately $17,900. The sentencing follows an investigation conducted by the OLMS Buffalo District Office. A former executive director of the Hawaii Painting & Decorating Contractors Association pleaded guilty in May 2016 to embezzling approximately $1,483,800 from the Hawaii Painters Trade Promotion & Charity Fund, which comes out of the hourly wages of Painters District Council 50 in Honolulu. Ironically, its government entities and organized labor groups, which are highly regulated, that discoverembezzlement because of auditing requirements. On July 13, 2009, Ullum pled guilty to a one-count information charging him with causing a false statement on an ERISA record. Two contractors were sentto prison and ordered to pay restitution, too. Garza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. The plea follows a joint investigation by the OLMS Tampa Resident Investigator Office and the U.S. Department of Labors Office of Inspector General. Smalls was indicted on April 10, 2009. It may seem like a problem thats only hitting large unions, but in fact, it happens commonly all across the country in large and small areas. Copyright 2021 The Associated Press. TULSA, Okla. A man who attempted to fraudulently acquire more than $92,000 worth of commercial products from a California-based company pleaded guilty in federal court, announced U.S. Attorney Clint TULSA, Okla. A former chief financial officer for a company with offices in Oklahoma pleaded guilty in federal court after failing to pay over to the IRS $3.6 million TULSA, Okla. United States Attorney Clint Johnson today announced the results of the January 2023 Federal Grand Jury A. The English definition of the offense is followed in the United States. FBI Seventeen Members of a North Carolina Racketeering Brownlee falsified travel vouchers, per diem, lodging, and lost time claims. Of course, the shocking data from the Department of Labor only includes the cases where the theft, racketeering and other criminal activity were caught. Garza then used some of the funds to purchase a New Nissan Armada SUV and a condominium located on Gentryside Drive in Houston. The indictment follows an investigation by the OLMS Detroit District Office. The board says Dr. Walters will be employed by Union Academy until the end of June when her contract expires. On August 26, 2008, Simpson was charged with one count of embezzling union funds in the same amount. Sadly, fraud can destroy a companys trust, impact it financially, and in some cases, shut it right down. The charge follows an investigation by OLMS New Orleans District Office. On March 19, 2009, in the United States District Court for the Eastern District of Kentucky, James A. Decker, former Treasurer of Independent Soft Drink Workers Union (formerly located in Burlington, Ky.), pled guilty to embezzling union funds. "Over the last several months, we have been under a magnifying glass, and rightfully so. 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. In February 2017, the International Longshoremens Association Local 970 had their former financial secretary received a lengthy prison sentence. Share sensitive information only on official, secure websites. Additionally, Roles was ordered to undergo drug and alcohol evaluation. This is both externally from the public and internally from members. 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. The plea follows an investigation by the OLMS Cincinnati District Office. Harris agreed to make restitution in the same amount.The plea follows an investigation by the OLMS Chicago District Office. On June 8, 2009,Brownlee pled guilty to embezzling union funds in the amount of $16,221.30. The Detroit Free Press report said individual cases compiled by the OLMS last year cite theft and fraud ranging from $1,051 to a staggering $6.5 million. I mean, the teacher at my sons high school just embezzled from the homecoming fund.. Also, Bruno agreed to pay restitution. 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. An indictment raises no inference of guilt. On January 29, 2009, in the United States District Court for the Western District of Wisconsin, Carl W. White, former Treasurer of IATSE Local 251 (located in Madison, Wis.), pled guilty to embezzling union funds in the amount of $85,963.31. The sentencings followed a joint investigation by OLMS Chicago District Office, the Department of Labor's Office of the Inspector General, and the U.S. On September 17, 2009, Williams was indicted on one count of embezzling union funds in the same amount. In fact, small businesses are the most vulnerable, and we are seeing more significant occurrences in churches, nonprofits, financial institutions and the manufacturing industry, she said. It was hard to believe she was stealing from us. Its just access to money., He added, "These people view themselves as overworked and underpaid. On April 7, 2009, in the United States District Court for the District of Maryland, LaRose Elsezy, former administrative assistant and bookkeeper of AFGE Local 1923, was indicted on one count of theft within a special maritime and territorial jurisdiction of the United States and one count of aiding and abetting. The criminal charge is punishable by up to five years in federal prison and a $250,000 fine. WebOfficer at TXDOT Credit Union in Wichita Falls, Texas Sentenced to Nearly Six Years in Federal Prision for Embezzlement Scheme U.S. Attorneys Office April 03, 2009 Northern District [CDATA[/* >