10/17/2007

News / U.S. Department of Labor's Office of Labor-Management Standards Reports 13 Indictments, 7 Convictions During September for Union Funds Embezzlement

Linked from: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-16-2007/0004683262&EDATE=

115 convictions obtained, $31.5 million in restitution in fiscal year
2007 alone

WASHINGTON, Oct. 16 /PRNewswire-USNewswire/ -- The U.S. Department of
Labor's Office of Labor-Management Standards (OLMS) today announced its
criminal enforcement data for September 2007. During September, OLMS
obtained 13 indictments and seven convictions, for a total of 97
indictments and 115 convictions during fiscal year 2007. These indictments
and convictions primarily involve union officers and employees who have
embezzled union funds resulting in court-ordered restitution back to the
unions of more than $31.5 million.

"In this fiscal year, OLMS's efforts resulted in 115 convictions of
individuals found guilty of wrongdoing against unions. Our vigilance on
behalf of rank-and-file union members punishes criminal behavior and
protects union members, and we are proud of our results." said Deputy
Assistant Secretary for Labor-Management Standards Don Todd. "Since fiscal
year 2001, OLMS investigations have yielded a total of 834 indictments with
796 convictions and court-ordered restitution of nearly $102 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, extortionate
picketing, deprivation of union members' rights by force or violence, 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 http://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 http://www.olms.dol.gov.

Editor's Note: A listing of selected OLMS enforcement actions during
September 2007 accompanies this release.

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

Sentencings

On September 20, in the U.S. District Court for the Southern District
of Illinois, Jeffrey Klope, former financial secretary of Boilermakers
Lodge 8-S, was sentenced to three years probation for embezzling union
funds in the amount of $25,794. Under the special conditions of his
probation, Klope is required to spend the first six months on home
detention and perform 100 hours of public service. On June 13, Klope pled
guilty to embezzling union funds in the same amount; Klope had previously
paid full restitution to the union. The sentencing follows an investigation
by the OLMS St. Louis District Office.

On September 20, in the U.S. District Court for the Western District of
Texas, James Douglas, former secretary-treasurer of Glass Molders Plastic
Local 220, was sentenced to two years probation and 240 hours of community
service after pleading guilty to concealing, withholding and destroying
union records. He destroyed union records to conceal his embezzlement of
$12,857 from the union. Douglas repaid the union prior to sentencing, which
follows an investigation by the OLMS Dallas District Office.

On September 20, in the U.S. District Court for the Western District of
Texas, Jose Ocasio, former secretary-treasurer of the National Association
of Letter Carriers Branch 404, was sentenced to two years probation and 240
hours of community service after pleading guilty to making false entries in
union records. He made false entries in the union's records in order to
conceal his embezzlement of $9,083. Ocasio made full restitution to the
union before sentencing, which follows an investigation by the OLMS Dallas
District Office.

On September 17, in the U.S. District Court for the District of Oregon,
Marlene Watson, former president of the Associated Field Representatives,
was sentenced to 12 months probation for falsification of an annual
financial report filed by a labor union. Watson previously made restitution
in the amount of $9,030. The sentencing follows an investigation by the
OLMS Seattle District Office.

On September 6, in the U.S. District Court for the Western District of
Oklahoma, Nathaniel Marc Greene, former president of AFGE Local 2562, was
sentenced to 10 months confinement, three years probation, ordered to pay a
special assessment of $100, and ordered to pay restitution totaling
$55,955.76. Greene knowingly and willfully made or used a false writing or
document and knew the local's Form LM-3 contained a materially false
statement or entry at the time he made or used the report. On April 4,
Greene pled guilty to one count of making a false statement. The sentencing
follows a joint investigation by the OLMS Dallas District Office and the
Department of Veterans Affairs' Office of the Inspector General.

Guilty Pleas

On September 11, in the U.S. District Court for the Middle District of
Pennsylvania, Joseph Capece, former business manger/financial-secretary of
the International Brotherhood of Electrical Workers Local 163 in
Wilkes-Barre, Pa., pled guilty to one count of embezzling union funds in
the amount of $256,000. On September 4, Capece was charged with knowingly
and willfully embezzling union funds in the same amount. The information
and plea follow an investigation by the OLMS Philadelphia District Office.

On September 11, in the U.S. District Court for the Southern District
of Ohio, William J. Pagano, former secretary-treasurer of the National
Association of Letter Carriers (NALC) Branch 78, pled guilty to one count
of embezzlement of union funds totaling $66,759.18. The plea follows an
investigation by the OLMS Cleveland District Office.

Criminal Charges and Indictments

On September 26, in the District Court for Douglas County, Wisconsin,
John F. Sigafus, former secretary-treasurer of Machinists Local Lodge
335-W, was charged with business theft over $5,000 and forgery. The charges
follow an investigation by the OLMS Milwaukee District Office.

On September 25, in the U.S. District Court for the Northern District
of Alabama, Frank M. McEvoy, former business manager/secretary-treasurer
for Laborers Locals 1370 and 123, was indicted on one count of embezzling
union funds in the amount of $11,167.50 from Local 1370 and one count of
embezzling union funds totaling $23,779 from Local 123. The indictment
follows an investigation by the OLMS Nashville District Office.

On September 24, in the U.S. District Court for the District of
Colorado, Paula Adair-Butts, former office secretary of Plasterers Local
577, was indicted on four counts of embezzling union funds in the amount of
$28,480.96. The indictment follows an investigation by the OLMS Denver
District Office.

On September 11, in the U.S. District Court for the Western District of
Virginia, former Brotherhood of Locomotive Engineers Division 37
secretary-treasurer Randy Greear was indicted on one count of embezzling
union funds in the amount of $22,691.60. The indictment follows an
investigation by the OLMS Washington District Office.

On September 6, in the U.S. District Court for the Northern District of
Illinois, Richard Lopez, Mark Jones, Cassandra Mosely and David Rodriquez,
current president, former business agents and former organizer,
respectively, of Teamsters Local 743, were indicted on one count of
conspiracy to deprive Local 743 members of their honest services and to
embezzle, or steal, the official ballots in the 2004 election of officers.
Lopez and Jones were each charged with one count each of embezzlement or
theft of union property, that being the official ballots, while Moseley and
Rodriquez were each charged with two counts of embezzlement or theft of
union property, also being the official ballots. The indictment alleges
that between August and December 2004, Lopez, Mosely, Jones and Rodriguez
engaged in a scheme to rig the election by diverting official ballot
packages to their friends, family and associates, and casting the ballots
or causing them to be cast in both the October and December 2004 elections
for incumbent officers, known as the "Unity Slate," to ensure their
election. The seven-count indictment follows a joint investigation by the
OLMS Chicago District Office, the Department of Labor and U.S. Postal
Service Offices of the Inspector General.

U.S. Department of Labor releases are accessible on the Internet at
http://www.dol.gov. The information in this news release will be made available in
alternate format (large print, Braille, audio tape or disc) from the COAST
office upon request. Please specify which news release when placing your
request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is
committed to providing America's employers and employees with easy access
to understandable information on how to comply with its laws and
regulations. For more information, please visit http://www.dol.gov/compliance.








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