Former Dance School Comptroller Pleads Guilty in $1.5 Million Fraud An OLMS investigation concluded that Elsezy created and cashed checks totaling $44,316.58, drawn from the unions bank account for personal use. .cd-main-content p, blockquote {margin-bottom:1em;} 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. Drake previously made restitution in the amount of $450. His sentencing is scheduled for Jan. 23. 2023 www.freep.com. An official website of the United States government. In addition, analysts said,lean times have led to cutbacks that limit oversight controls, and employee turnover during hard economic times may help expose wrongdoing. Fax Line: 713-718-3300. The sentencing follows an investigation by the OLMS New York District Office and the FBI. Watson is alleged to have made personal charges totaling $1,759 on the union credit card. 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. On January 14, 2009, Baker pled guilty to one count of making a false entry in a union record and made restitution in the amount of $16,050. On May 26, 2009, in the United States District Court for the Southern District of New York, Neil Cremin, a former New York City Department of Education (DOE) School Bus Inspector, was sentenced to four months incarceration to be followed by four months of home confinement and ordered to make restitution of $30,000 to the DOE. Will you do the same? Some explain that embezzlement is happening now because non-financial professionals are in positions handling union finances. On September 9, 2009, Wuest was charged with the same offenses. On December 14, 2009, in the United States District Court for the Southern District of New York, Wayne Mitchell, former President of Communication Workers of America (CWA) Local 14170 (located in New York, N.Y.), was charged with embezzling union funds in the amount of $200,000. When it comes to cases regarding embezzlement in unions, there is no shortage of high profile cases to use as examples. The plea follows an investigation by the OLMS Chicago District Office and the Department of Labors Office of Inspector General. DETROIT (AP) Members of the United Auto Workers union appeared on Friday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials. On January 14, 2009, in the U.S. District Court for the Southern District of Ohio, Jeffrey Baker, former co-chairman of the Picket Committee for Machinists Local Lodge 1943 (located in Middletown, Ohio), pled guilty to one count of making a false entry in a union record. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} An indictment raises no inference of guilt. 2021 Criminal Enforcement Actions | U.S. Department of Labor Charged with drug possession? 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. On March 25, 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.), pled guilty to embezzling $23,644.76 in union funds between 2002 and 2006.The plea follows an investigation by the OLMS Buffalo District Office. On July 7, 2009, in the United States District Court for the Northern District of California, San Jose Division, an information was filed charging Erica Alda Perez, former secretary and bookkeeper of Carpenters Local 9144 (located in San Jose, California), with one count of false statements. The Office of Labor-Management Standards (OLMS) opened an investigation after an internal audit by Steelworkers Local 145 revealed a loss of union funds. Mosley was sentenced to one day in prison, six months in home confinement, and 18 months of additional supervised release. Williams was sentenced to twelve months probation and ordered to pay restitution in the amount of $75.00, a fine of $1000, and court costs. He was also ordered to pay restitution in the amount of $13,130 and a fine of $125. On November 17, 2009, in the District Court of Brockton, Massachusetts, Joseph J. Morana, former President of National Association of Government Employees (NAGE) SEIU Local01-86 (located in West Roxbury, Mass.) The plea follows an investigation by the OLMS Atlanta District Office. Also, Elliot made restitution in the amount of $24,000. ADVERTISEMENT Priest charged with stealing $830,000 from retired priests December 1, 2022 embezzlement On June 24, 2009, in the United States District Court for the Northern District of Indiana, Jeanne R. Brophy, former office manager of Iron Workers Local 379 (located in Lafayette, Ind.) Shingler was charged with taking union funds in the amount of $2,572. The sentencing follows an investigation by the OLMS Cincinnati District Office. It should be a daily concern for business owners, said Amy Buben, a certified fraud examiner with Yeo & Yeo CPAs & Business Consultants, which works with the Michigan Small Business Association. Hernandez also faces two charges of grand theft and one of perjury for her work as treasurer on a 2014 political committee supporting a state Senate candidate. The indictment follows an investigation by the OLMS Washington District Office. How to File a Complaint On October 28, 2009, in the United States District Court for the Western District of Michigan, Carolyn Williams, former Secretary-Treasurer of International Brotherhood of Electrical Workers (IBEW) Local 352 (located in Lansing, Mich.), pled guilty to embezzling union funds in the amount of $9,554.14. UAW corruption scandal deepens as feds charge 16th person after (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. U.S. Attorney's Office, Northern District of Oklahoma, Former Labor Union President Sentenced for Embezzling Union Funds, Bixby Man Pleads Guilty to Fraudulently Acquiring Almost $28,000 Worth of Commercial Products from a California Company, Former Chief Financial Officer Pleads Guilty for Failing to Pay Over $3.6M in Employee Tax Withholdings and for Pocketing $130,000 from his Employers Bank Account, Federal Grand Jury A Indictments Announced- January 2023, Former Labor Union President Sentenced For Embezzling Union Funds. Please enter valid email address to continue. Over the past 10 years, restitution of $102,625,236 has been paid or ordered to be paid to defrauded unions and other parties. As part of his plea, Garza admitted he awarded a $280,000 no-bid contract to Ahmed Bokaiyan. What you find in these embezzlement cases is very trusted employees that have worked for organizations for a number of years. 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. 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. In February 2017, the business manager of Washington, D.C.s Laborers Local 657 was sentenced to four years in prison. The sentencing follows an investigation by the St. Louis District Office. The indictment follows an investigation by the OLMS Nashville District Office. The charges follow an investigation by the Buffalo District Office and the City of Syracuse Police. All Rights Reserved. "She was personable and bubbly. Charges were levied against an ex-president of the UAW in January 2017. The indictment follows a joint investigation by the OLMS Atlanta District Office and the U.S. In addition to the UAW, federal records show the biggest embezzlement cases resulting in criminal charges during the past decade have unfolded in the court system over the past threeyears: Embezzlement cases are often discovered by unions or during routine audits. On December 7, 2009, in the Circuit Court of Marion County, Kentucky, Mark Owens, former Financial Secretary of Machinists Local Lodge 366W (located in Lebanon, Ky.), was charged with theft by unlawful taking in the amount of $200.00. Bania was found guilty on four counts of mail fraud and six counts of theft of union property. The plea and sentencing follows an investigation by OLMS New York District Office. On May 14, 2009, she pled guilty to theft of more than $500. Attorney General Rob Bonta said Wednesday his office filed charges against Hernandez and her husband, Jose Moscoso, on Oct. 4. 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 February 5, 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.) An audit revealed Garza paid three checks totaling approximately $252,757 to Hot Rod Systems before it completed any work. The plea follows an investigation by the OLMS Atlanta District Office. The guilty plea follows an investigation by the OLMS Washington Distrct Office. Bentzen was also ordered to pay restitution in the amount of $32,256.60 and a $100 special assessment. 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. FBI plants bull's-eye on GM, Ford as UAW scandal widens. "The actions of a few individuals should not be held against the entire union and its membership, almost all of whom act with the utmost honesty and integrity every day to help our working men and women.. ), 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 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. The plea follows an investigation by the OLMS Cincinnati District Office. His charges include working with a health insurance broker to embezzle money from the union. On November 17, 2009, in the United States District Court for the Eastern District of Wisconsin, Warren Demmin, former Secretary-Treasurer of Boilermakers Local Lodge 449 (located in Sturgeon Bay, Wis.), was indicted on four counts of embezzling union funds in the amount of $681.44. 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. Ironically, its government entities and organized labor groups, which are highly regulated, that discoverembezzlement because of auditing requirements. The indictments follow an investigation by the OLMS Atlanta District Office. It oversees more than a dozen local unions representing state workers, education workers, healthcare workers and others. On January 5, 2009, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Lodge 687 (located in Charleston Heights, S.C.), pled guilty to one count of embezzling union funds in the amount of $102,519. The charge, plea and sentencing follow an investigation by the OLMS Cincinnati District Office. 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. The sentencing follows an investigation by the OLMS Cincinnati District Office. Russia was also charged with receiving stolen property. ), pled guilty to one count of embezzling union funds in the amount of $7,731.54. The plea follows an investigation by the OLMS Detroit District Office. On July 30, 2009, Kelly pled guilty to one count of embezzling union funds in the amount of $97,970.71. Theyre all very stung, not only financially but emotionally, said Todd Rammler, president of Michigan CFO Associates. Another group hit hard by embezzlement are churches. Freeman was charged with five counts of forgery totaling $2,260; Hamer was charged with one count of forgery totaling for $749; Smith, one count of forgery totaling $2,500; Turner, five counts totaling $15,800 and Russia, twelve counts of forgery totaling $21,309. Union Academy headmaster will not return after contract expires The plea follows a joint investigation by the OLMS Los Angeles District Office and the Department of Labors Office of Inspector General. Smalls was indicted on April 10, 2009. The information follows an investigation by the OLMS San Francisco District Office. The sentencing follows an investigation by the OLMS Washington District Office. Williams was charged in a criminal information, which means a guilty plea is expected. On September 29, 2008, Bentzen pled guilty to one count of bank fraud.The sentencing follows an investigation by the OLMS St. Louis District Office. On May 5, 2009, in the Criminal Court for Putnam County, Tennessee, Ronnie L. Scott, former Financial Secretary of Auto Workers Local 2409 (located in Cookeville, Tenn.), pled guilty to the charge of Theft Over $1,000. Brophy had previously paid over $47,172 in restitution. The case is working its way through the court system, so far resulting in charges against four people. 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. On September 26, 2008, Luna was charged with embezzling union funds in the same amount from November 2004 through June 2005. Williams was sentenced to twelve months deferred probation and ordered to pay restitution in the amount of $75, a fine of $1,000, and court costs of $194.00. On May 27, 2009, in the United States District Court for the Western District of Missouri, Wendy Bentzen, former information/financial manager for the American Federation of State, County and Municipal Employees (AFSCME) Council 72 (located in Jefferson City, Mo. Your California Privacy Rights / Privacy Policy. UAW leader charged with embezzling union funds amid contract Now hes in prison, said Michael Galetti, a carpenterwho works in Detroit. The sentence follows an investigation by the OLMS Buffalo District Office. The sentencing follows an investigation by the OLMS Philadelphia District Office. U.S. District Judge Claire V. Eagan sentenced Thomas Jerome Burkhart, Jr., 59, of Sapulpa, to three years of probation and ordered him to pay restitution to the labor union in the amount of $19,900. Also, Bruno agreed to pay restitution. The sentencing follows an investigation by the OLMS Seattle District Office. First published on October 13, 2021 / 2:43 PM. In one such case, the union was taking money for one legitimate purpose and stealing it to purchase personal gifts. Embezzlement In November 2002, Kupau was convicted of money laundering. On November 3, 2008, Getzen pled guilty to embezzling union funds in the same amount. On August 3, 2009, in the United States District Court for the Western District of Pennsylvania, Michael R. Rhoades, former Secretary Treasurer of the Communications Workers Local 88667 (located in Latrobe, Pa.), pled guilty to embezzling union funds. 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. The sentencing follows an investigation by the OLMS Cincinnati District Office. Burkhart pleaded guilty on April 8, 2021, admitting to embezzlement and theft of labor union assets. The sentencing follows a joint investigation by the OLMS Chicago District Office and the Department of Labor's Office of the Inspector General. The plea follows an investigation by the OLMS Milwaukee District Office. They give workers a powerful voice heard by employers. The sentencing follows a joint investigation by the OLMS Buffalo District Office and the New York State Police. The plea follows an investigation by the OLMS St. Louis District Office. Hundreds of union officials have been indicted for other crimes that victimize union members, such as filing false reports, keeping false records, destruction of records, extortionate picketing and deprivation of rights by violence. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} In the other multimillion-dollar case, charges were filed on Jan. 9, 2017, againsta former UAW president in New Jersey accused of hatching a scheme with a health insurance broker tosteal $1 million from the unions self-insured health planand defraud Horizon Blue Cross Blue Shield of approximately $5.5million. These were essentially persons entrusted with another's property, such as agents, attorneys, bankers, and corporate officers. On April 1, 2009, in the United States District Court for the Central District of California, Rosa Miriam Della Porta, former bookkeeper of International Longshore and Warehouse Union (ILWU) Local 26 (located inLos Angeles, Calif.), was found guilty of embezzling union funds. Dunbar has since been elected president of the International Brotherhood of Electrical Workers Local 58 in Detroit. On October 29, 2009, in the County Court of Hale County, Texas, Rudy Villa Jr., former Treasurer of American Federation of Government Employees (AFGE) Local 2771 (located in Plainview, Texas), was indicted on felony theft charges. The office will continue to file the appropriate criminal charges and to seek the most serious penalties, including jail time, restitution, and the forfeiture of criminal profits, that are supported by the evidence.. In conclusion, the first thing that you need to do is to seek legal counsel thats familiar with the prosecution of this crime.