Merry Christmas! Those in good favor this year didn’t include a number of union bosses who found themselves caught up in illegal shenanigans. Perhaps their New Year’s resolutions will include “being a law-abiding citizen.”
Every paycheck, a portion of union members’ money is automatically deducted to cover union dues. They don’t have a say in how the money is spent; they are just left to trust their union leaders to use the dues money to represent them and their interests (legally).
Below are a handful of the latest labor rackets of 2024, courtesy of the U.S. Department of Labor’s Office of Labor-Management Standards, which reports annual criminal enforcement actions.
Embezzling union funds
Union leaders and former union employees pleaded guilty to embezzlement and conspiracy to embezzle union funds throughout 2024.
In Texas, a former president of United Steelworkers Local 13-1647 was indicted on embezzling union funds in the amount of $287,368. In Louisiana, a former financial secretary of United Steelworkers Local 554 pleaded guilty to embezzlement of union funds and was sentenced to six months of imprisonment and ordered to pay $41,041 in restitution and a $100 special assessment. In Texas, a former secretary-treasurer of International Association of Machinists and Aerospace Workers Local Lodge 2198 pleaded guilty to embezzlement of union funds in the amount of $63,508. In Alabama, a former president of the American Federation of Government Employees Local 131 was sentenced to 30 months of incarceration followed by three years of supervised release after pleading guilty to embezzlement, making false statements, and aggravated identity theft.
In Pennsylvania, a former secretary-treasurer of American Postal Workers Union Local 776 was charged with embezzling union funds and filing false LM [federal union] reports. In New York, a former secretary-treasurer of International Alliance of Theatrical Stage Employees Local 306 was charged in and pleaded guilty to embezzlement of union funds totaling $65,843. In Ohio, a former treasurer of United Steelworkers Local 673 was charged with embezzlement of approximately $89,457.
In Missouri, a former president of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers was indicted with racketeering conspiracy, 47 counts of embezzlement, two counts of theft, one count of wire fraud conspiracy, one count of health care fraud conspiracy, and three counts of theft from an Employee Retirement Income Security Act (ERISA) program. The indictment sought forfeiture of $20 million. Two former secretary-treasurers of that union, a former special assistant, a former video technician/film project coordinator, and two former presidents were also in on the racketeering, receiving similar indictments.
Wire fraud/bank fraud
In Texas, a former president of United Steelworkers Local 13-1647 was indicted on 13 counts of wire fraud. In Oregon, a former bookkeeper for Sheet Metal, Air, Rail, and Transportation Workers Local 16 pleaded guilty to five counts of wire fraud and one count of embezzling union funds and was sentenced to time served, three years of supervised release, and ordered to pay restitution totaling $189,119 and a $600 special assessment. In Vermont, a former president of American Federation of Government Employees Local 2076 was charged with wire fraud, embezzling approximately $36,000 in union funds by making unauthorized ATM withdrawals and debit card transactions.
In Washington, D.C., former chairman of the Fraternal Order of Police D.C. Department of Corrections Labor Committee pleaded guilty to one count of wire fraud. In Georgia, a former financial secretary of Bakery, Confectionary, Tobacco and Grain Millers Local 84 was indicted on 11 counts of theft by conversion and one count of criminal attempt to commit a misdemeanor. In Michigan, a former president of United Steelworkers Local 513 pleaded guilty to bank fraud in the amount of $47,347. Previously, this person was charged in an information with bank fraud for embezzling union funds in the amount of $58,696.
Theft
In Ohio, a former president of United Food and Commercial Workers Local 343-C was charged with two counts of theft valued at $5,000 or more. In Maryland, a former business manager/president of International Brotherhood of Electrical Workers Local 1501 was charged with one count of theft. Also in Ohio, a former president of Communications Workers of America Local 4484 pleaded guilty to theft and misuse of credit cards.