Union Corruption Update

These are from 06/29/11 to date. There are at least 9 more pages and many stories, more information is at the site.

Union Corruption Update


Shafted Delphi Retirees Suing Treasury, Auto Task Force Submitted by Mark Modica on Mon, 07/25/2011 - 12:25

The unprecedented intrusion of the executive branch of the US government into the American auto industry when the Obama Administration orchestrated the General Motors and Chrysler bankruptcy processes is now leading to unprecedented responses. Groups that were clearly discriminated against and had their rights subordinated to politically powerful unions may actually have a winnable case against our own government as lawsuits are being brought against the US Treasury Dept. and others.

GM’s Chevy Volt 'Bait and Switch'

Submitted by Mark Modica on Thu, 07/21/2011 - 09:52
According to a report by the Detroit News, General Motors claims that it now has fewer than 100 Chevy Volts sitting on dealer lots. In addition, only 1 in 9 dealers are offering the vehicles for sale. However, a search for Volt inventory on the cars.com website uncovers 500 new Chevy Volts advertised for sale to the public. This data confirms that GM dealerships are using a version of "bait and switch" to lure consumers into showrooms by advertising Chevy Volts that are not truly available for purchase.

UFCW Official in Eastern Pennsylvania Charged with $200K+ Embezzlement

Submitted by Carl Horowitz on Wed, 07/20/2011 - 17:42
Ernest Milewski wasn't quite as clever as he imagined. The former president of the United Food and Commercial Workers (UFCW) Northeastern District Council was charged in U.S. District Court for the Middle District of Pennsylvania on July 11 with embezzling more than $200,000 from the Wilkes-Barre labor organization and an allied health care benefit program. The information count follows a joint investigation by the Labor Department's Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration. If convicted, he could face up to 15 years in prison.

Texas Operating Engineers Local Business Manager, Wife Arrested

Submitted by Carl Horowitz on Wed, 07/20/2011 - 15:20
Ronald and Anita Witt enjoyed the good life, especially luxury cars and trips to Hawaii. They're now facing a potential trip to prison. On Friday, July 8, Mr. and Mrs. Witt, respectively, business manager and financial secretary of International Union of Operating Engineers Local 450, were arrested by U.S. Marshals and charged in Houston federal court that day with embezzling more than $150,000 from the union's general fund and job training benefit plan, and forging records to conceal the thefts. The couple also faces a civil suit filed by the Houston-based local on April 21 alleging "$750,000 in unlawful expenditures." Ronald Witt denies all criminal and civil allegations, claiming he has receipts that will exonerate him and his wife.

Auto Bailout Czar Ron Bloom Changes Story

Submitted by Mark Modica on Tue, 07/19/2011 - 10:18

On Friday night, I discussed White House staffer Ron Bloom's statement that the auto bailout was done for the unions, and his subsequent denial of making such a claim, only to now back off his denial. The show was America's Nightly Scorecard on Fox Business Channel. Here's the video

http://www.youtube.com/watch?feature=pl ... pcTq_hRYjg:



GM's Free Insurance Incentive – Innovation or Desperation?

Submitted by Mark Modica on Mon, 07/18/2011 - 09:35
General Motors recently launched a pilot program in the Pacific Northwest offering free auto insurance on GM vehicle purchases. The move immediately drew criticism from independent insurance agents who point to possible legal problems with the move, as reported by liveinsurancenews.com. The agents are obviously concerned with the potential loss of business, but they make valid points that there are regulatory and licensing requirements that go with the offering of insurance products.

Painters Local President in NYC Pleads Guilty to Thefts

Submitted by Carl Horowitz on Fri, 07/15/2011 - 17:23
Ephram Pascall's job training seminars had something missing: trainees. Now he's out of a job himself and likely to do hard time. Pascall, former president and business manager of International Union of Painters and Allied Trades Local 1422, pleaded guilty on July 6 in Manhattan federal court to one count of embezzling nearly $35,000 from the Manhattan-based local. He had been indicted in April following an investigation by the Labor Department's Office of Labor-Management Standards. The defendant, said U.S. Attorney Preet Bharara, "treated the union coffers like his personal piggy bank."


Alabama Electrical Workers President Indicted for Embezzlement

Submitted by Carl Horowitz on Fri, 07/15/2011 - 15:39
On March 23, Michael Williams, former president of Local 780 of the International Association of Electrical Workers, was indicted in U.S. District Court for the Middle District of Alabama on ten counts of embezzlement totaling $4,906 and four counts of making false entries in financial records of the Eufaula union. The charges follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Letter Carriers Local President in Pennsylvania Charged

Submitted by Carl Horowitz on Fri, 07/15/2011 - 14:55
On March 21, William Wyda, former secretary-treasurer of National Association of Letter Carriers Branch 253, was charged in U.S. District Court for the Middle District of Pennsylvania with embezzlement of $14,081.51 from the Hazelton-based union. The charge follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Bailed-Out UAW Workers (Again) Caught Drinking, Getting High

Submitted by Mark Modica on Thu, 07/14/2011 - 22:15

The UAW and Chrysler are once again embarrassed as Chrysler workers were caught on camera for the second time in 10 months smoking pot and drinking beer before heading back to work.

Former Atlanta-Area AFGE President Charged with Theft
Submitted by Carl Horowitz on Thu, 07/14/2011 - 17:57
On March 17, Richard Barnes, former president of Local 517 of the American Federation of Government Employees, was charged in U.S. District Court for the Northern District of Georgia with theft by deception in the amount of $14,024. The local represents employees of the Department of Veterans Affairs regional office in Decatur, Ga. The charge follows a probe by the Labor Department's Office of Labor-Management Standards.

Louisiana Boilermakers President Pleads Guilty to Records Fraud

Submitted by Carl Horowitz on Thu, 07/14/2011 - 17:46
On March 17, Charles Fleming, former president of International Brotherhood of Boilermakers Lodge 1814, pled guilty in U.S. District Court for the Eastern District of Louisiana to one count of making false entries in financial records of the Bridge City, La. union. The guilty plea follows an investigation by the Labor Department's Office of Labor-Management Standards.

SEIU's Andrew Stern Endorses Corporate Tax Break, But What Does It Mean?

Submitted by Carl Horowitz on Tue, 07/12/2011 - 15:42
Is Andrew Stern, the retired president of the Service Employees International Union, a born-again capitalist? That's the emerging view at SEIU headquarters in downtown Washington, D.C. and various points beyond. For months, Stern, who stepped down last spring after 14 years at the helm, has been championing a proposal to grant a limited-period tax break for U.S. corporations on investment income earned abroad and transferred to here. Stern's allies in the labor movement are shaking their heads in disbelief. His union enemies are saying, "I told you so." Many in the business world are welcoming him like an old friend. Yet the real story may be that Stern is being his old self: a believer in a large-scale government-corporate-union partnership to generate jobs - preferably union ones.

Auto Bailout Czar: We Did It All for the Unions

Submitted by Mark Modica on Sun, 07/10/2011 - 10:02
The Detroit Free Press reports that the House committee holding hearings on the auto bailout process wants clarification from former head of President Obama's Auto Task Force, Ron Bloom, regarding testimony he gave about a statement he allegedly made at a 2009 celebratory dinner. According to a news article written at the time and fellow ex-car czar, Steve Rattner, Bloom stated that he "did this all for the unions." Bloom denied making the statement while under oath. The congressional panel isn't buying it and has written a letter to Bloom requesting that he amend his testimony.

CWA Local President in Minnesota Charged with Theft

Submitted by Carl Horowitz on Fri, 07/08/2011 - 18:00
On March 16, Michelle Jean Nelson, former president of Communications Workers of America Local 7272, was charged in Polk County, Minnesota Circuit Court with felony theft by false representation of between $1,000 and $5,000 from the Erskine, Minn. (near Grand Forks, N.D.)-based union. The charge follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Ohio Steelworkers Local Officials Charged with Embezzlement

Submitted by Carl Horowitz on Fri, 07/08/2011 - 17:19
On March 16, Stacy Sacks and Tim Fisher, respectively, former president and former vice president of United Steelworkers of America Local 982, were charged in U.S. District Court, Northern District of Ohio, with embezzling union funds. Sacks, who allegedly stole $7,739.76, also was accused of falsifying financial records to cover up the theft. Fisher allegedly stole $4,858.21. In addition, the pair used union funds to buy a flat screen television set for their personal use valued at $1,520.77. The union is based in Wapakaneta, located in the western part of the state. The charges follow an investigation by the Labor Department's Office of Labor-Management Standards.

GM Spends Taxpayer Money to Lobby for More Taxpayer Money

Submitted by Mark Modica on Tue, 07/05/2011 - 08:50
According to CNBC, General Motors has ramped up its lobbying efforts to the tune of $3.58 million in the first quarter of 2011. This is nearly triple the $1.36 million it spent in the first quarter of the prior year. It is also over double the $1.67 million spent by non-bailed out Ford in the same quarter. The $50 billion that taxpayers gave to bail out GM is now partially being distributed back to President Obama, Congress and a variety of agencies in an effort by GM to, well, receive more taxpayer money.

Detroit Steelworkers President Sentenced for Records Fraud

Submitted by Carl Horowitz on Wed, 06/29/2011 - 17:35
On March 15, Oscar Gatewood, former president of Local 842 of the United Steelworkers of America, was sentenced in U.S. District Court for the Eastern District of Michigan to three years probation, the first six months of which must be served in home confinement, for concealment of financial records of the Detroit union. He also was ordered to pay $2,666.61 in restitution and a $25 special assessment. Gatewood pled guilty last October. The guilty plea and sentencing follow an investigation by the Labor Department's Office of Labor-Management Standards.

Letter Carriers President in Kentucky Pleads Guilty to Theft

Submitted by Carl Horowitz on Wed, 06/29/2011 - 15:55
On May 19, Max Messamore, former president of National Association of Letter Carriers Branch 2039, pleaded guilty in U.S. District Court for the Eastern District of Kentucky to failing to maintain proper records in connection with theft of funds from the Somerset, Ky. union. Messamore, who had been indicted in January, admitted that he willfully failed to maintain financial records to cover up his embezzlement of $2,293.77. The theft charge will be dropped once he begins serving time for records concealment. The indictment and guilty plea follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

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NE Pennsylvania Carpenters Bookkeeper Pleads Guilty to Embezzlement

Submitted by Carl Horowitz on Wed, 06/29/2011 - 15:01
Email to friendPrinter-friendlyOn June 13, Colin Rehrig, former bookkeeper for United Brotherhood of Carpenters and Joiners Local 600, pleaded guilty in federal court to embezzling $30,483 over four years from the Bethlehem, Pa.-based union. Rehrig, 68, a resident of Mahoning Township, stole the money from a bank account from which he wrote union checks during September 2004-September 2008. He had been charged in March. The guilty plea follows an investigation by the Labor Department's Office of Labor-Management Standards.

Plumbers Secretary in Michigan Pleads Guilty to Stealing $400K

Submitted by Carl Horowitz on Tue, 06/28/2011 - 17:31
Email to friendPrinter-friendlyOn April 7, April Franklin, formerly office secretary for United Association of Plumbers and Pipefitters Local 333 and former bookkeeper for the union's apprenticeship fund, pleaded guilty in U.S. District Court for the Western District of Michigan to embezzling a combined more than $400,000 from the Lansing-based labor organizations. An employee of the union during 1999-2009, she was charged this January with her husband in the theft of $234,331.33 from the training fund and $40,886 from the union general fund during 2008-09. The plea agreement also refers to her stealing additional funds, bringing the total to $411,979.37. She is set for sentencing on July 25. The indictment and guilty plea follow an investigation by the Labor Department's Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration.





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