Feds investigate prominent ex-labor leader Andy Stern

Tuesday, September 28, 2010
New York Post, AP
Comments 22

WASHINGTON — Prominent ex-labor leader Andy Stern http://www.nypost.com/t/Andy_Stern is reportedly being investigated by the FBI and Department of Labor as part of a corruption probe involving the Service Employees International Union, authorities said.

Two organized labor officials met with federal agents this summer to answer questions about Stern’s role in approving money to pay the salary of an SEIU leader in California who performed no work and a book contract that Stern landed in 2006, The Los Angeles Times reported today on its website. http://www.nypost.com/t/Los_Angeles_Times

Both officials spoke on condition of anonymity because of the sensitive nature of the investigation.

The FBI and the Labor Department’s office of inspector general declined to comment for the record.

Stern abruptly resigned as president of the 2.2-million member SEIU in April.

Stern, who currently sits on President Obama's bipartisan deficit-reduction commission, has not commented on the investigation.

As part of the corruption probe, the feds have been examining $150,000 in consulting fees paid to a disgraced former Los Angeles labor leader under a confidential agreement signed by Stern, then president of the powerful Service Employees International Union, according to documents and interviews.

The U.S. Attorney's office in Los Angeles had considered filing embezzlement charges against Alejandro Stephens, who headed the SEIU local for county government workers, in connection with the payments, records obtained by The Los Angeles Times reveal.

Prosecutors decided last year not to include the embezzlement counts in a criminal complaint against Stephens, who is going to prison on other charges, but investigators were still questioning labor officers about the payments at least nine months later, say three people familiar with the probe.

Stephens, 67, said that he did the work required by the 2007 agreement and that the union still owes him $75,000.

With AP

http://www.nypost.com/p/news/national/f ... tx4Y3MPxHL