Posts tagged fraud
Labor Dept deploys ‘strike team’ to California over $21B unemployment debt, fraud concerns
February 20, 2026 // In a statement, the department cited an 83-page California State Auditor report that determined the state’s UI system is high-risk, in part due to "inadequate fraud prevention and claimant service [in its employment development department (EDD)], as well as a high rate of overturned eligibility decisions in its Unemployment Insurance Program."
Former Jacksonville teachers union leaders sentenced to prison for $2.6M fraud
February 11, 2026 // A summary from an interview prosecutors and FBI agents had with George in June 2025 said George claimed “it was an open joke in the [DTU] office that Brady did not really have any leave days to sell.” Because George’s job included keeping track of union employees' (not members') leave balances, “when Brady needed money she would say something along the lines of I need to sell some days,” said the summary, which Coolican attached to his sentencing memo. “Brady would tell George how much money she needed after taxes and then George would initiate a payment for the equivalent value of leave days. Brady directed George to do the same for herself.” For example, the summary said that Brady sold $20,000 worth of leave time when she needed roof repairs, and George assumed the two facts were connected.
‘Corrupt union boss’: Federal prosecutors call for 3-year prison sentence for former DTU president
February 8, 2026 // In January 2025, prosecutors announced a variety of fraud charges against Brady and former DTU vice president Ruby George. According to the indictment, Brady and George sold un-earned leave time back to the union, enabling each to pocket more than $1 million. The indictment said the two withheld the activity from the DTU’s auditors by signing each other’s checks, hid the payments from the DTU’s Secretary/Treasurer, and withheld the funds from Florida’s Public Employee Relations Committee (PERC) in required yearly financial statements. Brady was also charged with two counts of money laundering.
Oregon Punishes the Freedom Foundation
December 30, 2025 // The censorship is masked in the good-government language of fighting fraud, but don’t be fooled. The Workers Fraud Protection Act, which takes effect Jan. 1, makes it “unlawful to falsely impersonate a union representative” and imposes punitive fines. The law cites a definition of fraud that includes merely giving a “false impression” of union matters. The bill was written specifically to give unions a cudgel against the Freedom Foundation. The nonprofit sends mailers informing workers of their right to decline union representation. Unions say the Freedom Foundation misleads workers by using union colors and logos to make the mail seem as if it is coming from the union itself.
Largest Flight Attendant Union In The U.S. Faces Computer Fraud Allegations In Ongoing Skywest Unionization Lawsuit
December 15, 2025 // A federal judge has allowed a counterclaim accusing the largest flight attendant union in the United States of conspiracy to commit computer fraud to proceed following months of legal wrangling in a Utah District Court. The contentious allegations were made against the Association of Flight Attendants (AFA-CWA) by a staff association representing crew members at the major regional carrier SkyWest, which provides services to the likes of Alaska Airlines, Delta, and United Airlines.
Teachers’ union AFT slams crypto market bill, warns of ‘profound risks’ for America’s retirement plans
December 11, 2025 // The American Federation of Teachers, the powerful labor union that represents 1.8 million members, is urging the Senate Banking Committee to reconsider its crypto market structure bill, the Responsible Financial Innovation Act, calling the proposed legislation “as irresponsible as it is reckless” in a letter exclusively obtained by CNBC. In the letter that AFT president Randi Weingarten sent to Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-Mass.), she wrote the union opposes the bill based on the “profound risks to the pensions of working families and the overall stability of the economy.”
Editorial: The MTA needs to end insane union privileges at the commuter railroads
September 30, 2025 // In the latest sign of how badly the MTA’s labor contracts serve the public as a whole, last week brought a fresh Metro-North Railroad scandal: Two now-suspended fraudsters allegedly faked commuter station safety and equipment checks — with one “worker” dining out while on the clock. Managers discovered the scam after noticing that forms claiming the work got done at a particular time didn’t jibe with GPS records showing the inspectors’ vehicles were elsewhere.
Philly campaign consultant Tracy Hardy pleads guilty to $2M pandemic loan fraud, union hall scheme
September 16, 2025 // He also pleaded guilty on Thursday to his role in a scheme in which he created fake bids for a union hall bar renovation job in Manayunk for District 1199C, a local chapter of the National Union of Hospital and Healthcare Employees. This made it seem like his construction company, Manayunk Construction & Development Corp., offered the best price for the job even though he inflated the price by $45,000. As part of the federal court agreement, the Pennsylvania Attorney General’s Office will drop state charges against Hardy related to the union hall matter, so his codefendant, Christen Woods, the former head of District 1199C, is expected to be charged alone.
Commentary: To Harvard and Back with Julie Su
August 18, 2025 // This year, Julie Su, Joe Biden’s pick for secretary of labor, became a resident fellow with Harvard’s Kennedy School, Institute of Politics. The Century Foundation also brought Su on board as a full-time senior fellow. These prestigious institutions seem to have overlooked key events in Su’s long career. Harvard, where Su, a Stanford grad, earned her law degree, hails the Biden nominee as “a nationally recognized workers’ rights and civil rights expert.” As California’s labor commissioner, Su was “widely credited with a renaissance in enforcement and creative approaches to combating wage theft and protecting immigrant workers.” In reality, her experience was a bit more extensive.
Commentary: Blatant Lawlessness
August 7, 2025 // A new Yankee Institute report, Blatant Lawlessness: How the CT Department of Labor & Union Leaders Disrespect Union Workers and Ignore the Law, highlights the Connecticut Department of Labor’s (CT DOL’s) failure to enforce vital state laws. These laws require unions to provide financial transparency to their members, and the state’s non-enforcement leaves dues-paying workers vulnerable to potential mismanagement and corruption. Enacted in 1959, Connecticut General Statutes Sec. 31-77 mandates that unions representing public and private sector employees submit verified annual financial reports to the CT DOL and make them available to members.