Posts tagged Embezzlement
More transparency for the largest unions
May 31, 2026 // A new rule from the Labor Department will recalibrate the disclosure reports that labor unions are required to file. It’s a welcome update to ensure that union members know how their money is being spent. What will happen in the 2026 midterms? Sign up for Margin of Victory The reason unions have government-mandated disclosure requirements is that they are government-backed monopolies. Labor relations law gives unions exclusive power as the sole bargaining agent for the entire workplace.
Racketeering trial starts for former KC-based union leaders accused of $20M theft
May 4, 2026 // “What makes this trial so significant is that it is not only about the individuals who were indicted,” he said. “It is also about the system and the culture that allowed this to ever happen. “Newton Jones and what federal prosecutors have described as the ‘Jones Enterprise’ would not have been able to allegedly racketeer, embezzle, or misuse union resources if the people sworn to uphold their constitutional duties had taken that oath seriously.” The Boilermakers deserve better, Sulivan said. “This trial should be a turning point, not just for accountability for the past, but for rebuilding and restructuring our organization for the future,” he said.
Two ex-Boilermakers plead guilty in $20M racketeering case involving KC-based union
March 17, 2026 // Two former members of the Kansas City-based International Brotherhood of Boilermakers set to go to trial in May pleaded guilty Monday to racketeering conspiracy and embezzlement from a labor organization in an alleged $20 million scheme involving union funds. Warren Fairley — who took over for a short stint as president of the union in 2023 after its leaders ousted longtime leader Newton Jones — and Jones’ son, Cullen Jones, entered their guilty pleas in the U.S. District Court in Kansas City, Kansas.
IUE-CWA Union Bigwig Joe Scott Pleads Guilty to Embezzlement
March 4, 2026 // On January 21, 2026, in the United States District Court for the District of Massachusetts, Joe Scott, former Treasurer of International Union of Electrical Workers – Communications Workers of America (IUE-CWA) Local 81154 (located in Gardner, Mass.), pleaded guilty to one count of embezzlement of union funds, in violation of 29 U.S.C. 501(c). The guilty plea follows an investigation by the OLMS Boston-Buffalo District Office.
Mail Handlers Union Boss Max Jaramillo Faces Multiple Criminal Charges
February 10, 2026 // On January 6, 2026, in the United States District Court for the District of New Mexico, Max Jaramillo, former Treasurer of Mail Handlers Local 331 (located in Albuquerque, N. Mex.), was charged with two counts of wire fraud for submitting false Form LM-3 Labor Organization Annual Reports and three counts of embezzlement, in violation of 18 U.S.C. 1343 and 29 U.S.C. 501(c), respectively. The charges follow an investigation by the OLMS Denver-St. Louis District Office.
APWU President LaTanya Gadson Faces Serious Criminal Enforcement Actions,
February 4, 2026 // On December 17, 2025, in the United States District Court for South Carolina, Columbia Division, LaTanya Gadson, former President of American Postal Workers Union (APWU) Local 795 (located in Sumter, S.C.), was charged with one count of embezzlement of union funds of at least $11,474 and one count of falsification of records, in violation of 29 U.S.C. 501(c) and 29 U.S.C 439(c), respectively. The charge follows an investigation by the OLMS Atlanta-Nashville District Office.
Feds: Ex-Union Boss Funded New York Home Renovation With Stolen Faculty Dues
December 5, 2025 // According to the indictment, Carbone treated the union's funds as a personal account, diverting more than $290,000 to cover travel, restaurant tabs, and personal bills. Investigators allege a significant portion of the stolen money went toward purchasing and renovating a private property in Athens, a town in Greene County. “As alleged, Carbone embezzled hundreds of thousands of dollars from the union he claimed to serve and used the money to fund his lifestyle and buy a home in the Hudson Valley,” said Acting U.S. Attorney John A. Sarcone III.
NALC Union Boss Marcus Miller Faces Embezzlement Indictment
October 18, 2025 // On September 9, 2025, in the United States District Court for the Western District of Michigan, Marcus Miller, former Vice President of National Association of Letter Carriers (NALC) Branch 775 (located in Niles, Mich.), was indicted on one count of embezzlement, in violation of 29 U.S.C. 501(c). The indictment follows an investigation by the OLMS Detroit-Milwaukee District Office and the United States Postal Service’s Office of Inspector General.
UMWA President Jerry Kerns II Faces Embezzlement Indictment
October 8, 2025 // Jerry Kerns II, President of UMWA Local 1582, will have to face a courtroom after being indicted on one count of embezzlement.
Eaton Worker’s Federal Complaint Sheds Light on Union Fee Threats in St. Louis
August 29, 2025 // Another critic, the nonprofit Institute for the American Worker (I4AW), highlighted the LMRDA’s origins in addressing labor corruption and stressed the importance of robust financial reporting. I4AW expressed concern that the current proposal focuses too heavily on reducing paperwork rather than preserving oversight. They recommended reconsidering OLMS’s 2020 proposal, which raised thresholds more moderately and introduced a “long form” LM-2 for the largest unions. I4AW also cited recent criminal convictions for embezzlement and financial misconduct involving union officials whose unions would have benefited from the proposed threshold increase, underscoring the need for strong reporting to prevent abuse.