Posts tagged RICO Act
Organized Labor’s Violent Privilege: The Supreme Court Loophole Shielding Union Officials from Prosecution
May 27, 2026 // Under federal precedent, they can often destroy property, assault workers, threaten communities, and even commit murder with reduced risk of serious prosecution — as long as the acts advance “legitimate union objectives” such as higher wages or work rules. This extraordinary immunity stems primarily from the U.S. Supreme Court’s 1973 ruling in United States v. Emmons, which gutted key provisions of the Hobbs Act. Combined with practical limitations in the Racketeer Influenced and Corrupt Organizations Act (RICO), it has created a regime where violence during labor disputes is frequently treated differently under the law. The Emmons Decision: A Judicial Loophole In United States v. Emmons, 410 U.S. 396 (1973), three IBEW members were indicted for firing high-powered rifles at utility transformers, draining oil from equipment, and blowing up a substation during a strike. The Supreme Court held that such violence did not constitute “wrongful” extortion under the Hobbs Act (18 U.S.C. § 1951) because the union had a “claim of right” to pursue legitimate bargaining goals.
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.
Boilermakers sue ex-president, demand he repay union nearly $500,000 he ‘misused’
August 3, 2025 // The Kansas City-based International Brotherhood of Boilermakers is suing the president it ousted two years ago, demanding that Newton Jones pay back nearly $500,000 of union money it says he misused. Filed Monday in the U.S. District Court for the Western District of Missouri, the lawsuit says Jones has ignored the union’s order to reimburse the money he’s accused of taking.
Two former presidents among 7 Boilermakers union employees indicted for embezzlement
August 28, 2024 // “As alleged in the indictment, these defendants, including two former presidents of the Boilermakers Union, enriched themselves by spending millions of dollars in union funds for their own benefit, including for salary and benefits for no-show jobs, tuition, rent, luxury international travel, meals, vacation payouts, and unauthorized loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division.
How the Mafia Infiltrated American Labor Unions
August 12, 2024 // While law enforcement agencies continue to monitor Mafia infiltration of labor unions, labor racketeering has become less prevalent than it was decades ago. In part, that’s because union membership plummeted after the McClellan Committee exposed the extent of labor racketeering. At its zenith in the mid-1950s, union membership comprised one-third of the labor force, but now union members only represent approximately 10 percent of American workers.
Union and Port Employee Arrested in $1.2M Puerto Rico Extortion Scheme
August 18, 2022 // U.S. authorities in Puerto Rico arrested the president of the longshore union local, a port employee, and five others on charges of organized crime and extorting more than $1.2 million from shipping companies in the San Jun as well as cheating the union benefits fund. With a list of charges reading like the famed 1950s waterfront cases, the U.S. attorney said the FBI-led investigation showed the scheme had been operating since at least 2005. Puerto Rico Port Authority, Megan Underwood, Northeastern Regional Director of the Office of Labor-Management Standards, Ali Khawar, Acting Assistant Secretary of Labor, Employee Benefits Security Administration