Posts tagged money laundering
Former Honolulu Union Leader Headed To Prison For More Than 11 Years
July 24, 2023 // In a weeks-long trial last year, federal prosecutors detailed how the finances of Local 1260 nosedived after Ahakuelo took over as business manager and financial secretary. In 2010, the union had a surplus of approximately $700,000, Gillmor noted. Four years later, it had a deficit of some $760,000. Prosecutors said Ahakuelo hired family members at salaries exceeding what union rules allowed. His wife, sister-in-law, son and his children’s spouses were all on the union’s payroll. Their pay contributed to the union’s salary expenses jumping by 150%, the judge said. Ahakuelo was emboldened by an inexperienced executive board, handpicked by Ahakuelo himself, that literally and figuratively handed him signed blank checks to spend as he wished, Gillmor said. Ahakuelo was also able to make unilateral decisions on travel. On several occasions, he brought an unnecessary entourage of family members and other employees on trips with dubious connections to union needs.
The Largest Teachers Union Embezzlements of All Time
February 8, 2023 // Denise Inez Owens was the treasurer of the Worcester County Teachers Association when she stole more than $433,000 of state and national dues money to feed her gambling addiction. The Maryland State Education Association discovered the theft in March 2009, but did not report it to authorities. Instead the union persuaded Owens to sign a confession and agree to a restitution plan. Owens then resigned her union position and returned to work as a middle school teacher without notifying the school district or union members of her crime. A newspaper discovered the incident three years later when the state union filed an insurance claim for its losses, and stated the theft was “not reported because of potential impact on membership and loss of members.”
Former union leader found guilty of fraud, other crimes
December 5, 2022 // Hawaii is the Aloha State, but union members of IBEW Local 1260 are not singing a happy tune: A jury found a former union leader guilty of fraud, money laundering, and embezzlement by misusing union dues. Brian Ahakuelo, a former union business manager and financial secretary, was found guilty of 68 charges to fund an extravagant and lavish lifestyle for himself and his family members. Marilyn Ahakuelo, Brian’s wife, was found guilty of 46 similar charges. Brian Ahakuelo placed five of his family members on union payroll, where each earned a six-figure salary, and used $80,000 in union dues to fund travel to Japan.
Fighting For Workers Or Fleecing Them? An Ousted Honolulu Union Boss Faces His Reckoning
October 13, 2022 // In court filings, prosecutors describe a brazen abuse of power by a union leader and a stunning display of greed by a man accused of using union funds as a piggy bank for himself and his family. The feds say the family charged numerous personal expenses to the union and, when funds started to dwindle, rigged a union vote to raise dues against the wishes of the members. Ahakuelo and his family members have pleaded not guilty, and he said they all plan to take the stand. “It’s not true,” Ahakuelo said of the criminal charges in an interview with Civil Beat last week. “Some of the stuff will be, maybe, morally incorrect … However, it’s not criminal.”
Former UAW Official Sentenced to 57 Months in Prison For Embezzling Over $2 Million in Union Funds
July 28, 2022 // Timothy Edmunds, the former Financial Secretary Treasurer of Local 412 of the United Auto Workers union, was sentenced to 57 months in prison today based on his convictions for embezzling $2.1 million in union funds and for money laundering announced U.S. Attorney Dawn N. Ison. Evidence indicates that Edmunds used portions of the proceeds of his embezzlement to gamble extensively, to purchase firearms, various high-end vehicles, and to purchase cocaine. For example, between 2018 and 2020, Edmunds used the UAW Local 412 debit card to make over $30,000 in unauthorized withdrawals at the Greektown Casino.
UAW Union Treasurer in $2.2M Embezzlement Gambled $16M at Greektown
April 3, 2022 // He was denied bail because of the judge’s concerns about his mental health and criminal history of violence.
Former UAW treasurer pleads guilty to stealing more than $2M in union funds
March 30, 2022 // The former treasurer and secretary for UAW Local 412 pleaded guilty to charges of embezzling union funds and money laundering after he stole more than $2 million in union funds. According to the Associated Press, Timothy Edmunds, 54, entered his plea last Friday during an appearance in U.S. District Court.