U.S. Department of Labors Office of Labor-Management Standards reports 11 indictments, eight convictions during August for union funds embezzlement

WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today announced its criminal enforcement data for August 2007. During August, OLMS obtained 11 indictments and eight convictions, for a total of 84 indictments and 108 convictions during fiscal year 2007 to date. These indictments and convictions primarily involve union officers and employees who have embezzled union funds.

"OLMS is as committed as ever to protecting union members from criminal activity by those entrusted to represent them, and we will maintain efforts to uncover wrongdoing against the rank-and-file," said Deputy Assistant Secretary for Labor-Management Standards Don Todd. "Since fiscal year 2001, OLMS investigations have yielded a total of 821 indictments with 789 convictions and court-ordered restitution exceeding $101 million."

OLMS is the federal enforcement agency responsible for administering most provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). The agency's criminal enforcement program includes investigations of embezzlement from labor organizations and fraud in union officer elections. The agency's civil program collects and publicly discloses unions' annual financial reports, conducts compliance audits of labor unions, and seeks civil remedies for violations of officer election procedures.

OLMS's public disclosure Web page at www.unionreports.gov contains union annual financial reports and additional forms required to be filed under the LMRDA. Other information, including synopses of OLMS enforcement actions, is available on OLMS's home page at www.olms.dol.gov.

Editor's Note: A listing of selected OLMS enforcement actions during August 2007 is below.

Selected Enforcement Actions in August 2007 Office of Labor-Management Standards U.S. Department of Labor

Sentencings

On August 31, in the U.S. District Court for the District of Puerto Rico, Jorge Aponte-Figueroa, former president of International Longshoremen's Association Local Union 1740, was sentenced to five years of imprisonment and three years of supervised release for embezzling $1.9 million in union funds. On April 2, Aponte-Figueroa had been found guilty of 12 counts of embezzlement, five counts of false reporting on LM reports, conspiracy and money laundering. The sentencing follows a joint investigation conducted by the OLMS Puerto Rico Resident Investigator Office, the FBI and the U.S. Attorney's Office in San Juan.

On August 23, following an investigation by the OLMS Nashville District Office, James B. Green, former secretary-treasurer of Railroad Signalmen's Local Lodge 49, was sentenced to 25 months of confinement and three years of probation, and ordered to pay a special assessment of $500 and restitution totaling $36,025.

On August 17, following an investigation by the OLMS Kansas City Resident Office, William Kendrick, former treasurer of the American Postal Workers Union Local 238, was sentenced to six months of home detention and five years probation, and ordered to make restitution in the amount of $26,236.

On August 15, following an investigation by the OLMS Detroit District Office, Claudia R. Thompson, the former president of the Paper, Allied Industrial, Chemical and Energy Workers International Union (now United Steelworkers) Local 513, was sentenced to one year of probation, ordered to pay restitution in the amount of $26,201 and ordered to attend a substance abuse program.

On August 7, following an investigation by the OLMS St. Louis District Office, David Hlavacek, the former secretary-treasurer of American Postal Workers Local 7065 and the Missouri State Postal Workers Union, was sentenced to three years of probation and ordered to make restitution in the amount of $4,783.

Guilty Pleas

On August 31, Judy A. Thurman, former treasurer of Federated Independent Texas Union Local 900, pled guilty in the U.S. District Court for the Northern District of Texas to one count of embezzlement of union funds totaling $164,268.50. The plea follows an investigation by the OLMS Dallas District Office.

On August 28, Gary E. Sharp, former business manager of International Brotherhood of Electrical Workers Local 2, pled guilty in the U.S. District Court for the Northern District of Indiana to one count of embezzling, stealing and willfully converting to his own use $630 of union funds. The guilty plea follows an investigation by the OLMS Chicago District Office.

On August 23, following an investigation by the OLMS Milwaukee District Office, Debra M. Timko and Danny L. Iverson, former presidents of Service Employees Local 150, pled guilty to two counts of willful failure to maintain union records. Timko and Iverson failed to generate and maintain adequate and necessary records to establish that various payments made by Local 150 were proper under the union's policies. The payments included reimbursement of expenses incurred by Timko and Iverson that were not reimbursable due to their failure to comply with the union's policies. Under their plea agreements, Iverson and Timko agreed to make restitution totaling approximately $63,000.

On August 22, Christina Wabinga, former treasurer of Theatrical Employees Local B-66, pled guilty to one count of false statements and representations of fact, and one count of false entries and concealment in union records, following an investigation by the OLMS San Francisco District Office. Wabinga agreed to pay restitution totaling $3,533 and $2,000 in fines.

On August 15, James Douglas, former secretary-treasurer of Glass Molders Plastics Local 220, pled guilty to concealing, withholding and destroying union records, following an investigation by the OLMS Dallas District Office. Douglas destroyed the records to conceal his embezzlement of approximately $12,857 in union funds.

On August 9, Brad Harper, former treasurer of American Federation of Government Employees Local 1629, pled guilty to one count of making materially false statements on the annual financial report filed by Local 1629, following an investigation by the OLMS Detroit District Office.

On August 9, Thomas Saltzman, former secretary-treasurer of United Transportation Union Local 418, pled guilty to one count of embezzling union funds in the amount of $32,010, following an investigation by the OLMS Kansas City Resident Office.

On August 9, Connie Scarrow, former secretary-treasurer of American Federation of Government Employees Local 3749, pled guilty to one felony count of knowingly and willfully making a false entry on a Form LM-3 Report to conceal her misappropriation of union funds, following an investigation by the OLMS Kansas City Resident Office.

On August 1, Lorraine Payton, former president of the National Federation of Federal Employees, Veterans Administration Council, pled guilty to one count of mail fraud, following an investigation by the OLMS New Orleans District Office.

Criminal Charges and Indictments

On August 31, Denise M. Nichols, former secretary-treasurer of Communications Workers of America Local 4050, was indicted on one count of embezzling union funds in the amount of $3,804 and two counts of false records, following an investigation by the OLMS Detroit District Office.

On August 16, Terry Howell, former president of United Steelworkers of America Local 8-505, was charged with embezzling $13,210 in union funds, following an investigation by the OLMS Cincinnati District Office.

On August 15, Bridgett C. Hooks, former secretary-treasurer of the American Postal Workers Union Local 332, was indicted on one count of embezzling union funds in the amount of $10,820, following an investigation by the OLMS Nashville District Office.

Read the associated news release.

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