Posts tagged wire fraud
The Year of the Union…Corruption?
February 1, 2024 // According to an annual report by the Office of Labor Management Standards (OLMS), over 155 criminal investigations into union-related activity were completed over the past year. As a result, the OLMS distributed 39 indictments and collected 57 convictions for numerous offenses ranging from petty theft to labor racketeering. While these findings are certainly disturbing, they likely only represent a drop in the bucket of national union corruption. This is because, according to the Department of Labor, it is simply “not feasible” to audit every union. Instead, forced to optimize limited resources against widespread corruption, the OLMS has developed an auditing methodology for unions whose “metrics suggest the possibility that there may have been criminal activity.” In 2023, the OLMS conducted 222 of these targeted audits, ultimately finding that 18.3% of these cases warranted criminal action. With nearly 1/5 of audits uncovering some form of wrongdoing, even in the limited sampling size permitted by OLMS resources, it is fair to say that corruption is entrenched within the American labor movement.
Ex-Philly labor leader John Dougherty found guilty in embezzlement trial
December 7, 2023 // Former Philadelphia labor leader John "Johnny Doc" Dougherty and his co-defendant Brian Burrows were found guilty on multiple counts in their federal embezzlement trial. Federal prosecutors had alleged that Dougherty -- the former business manager of IBEW Local 98 and the Philadelphia Building and Construction Trades Council -- spent the money on home renovations, meals, concerts and groceries for himself and his family and friends.
Anti-labor group calls out SEIU for pattern of workplace misconduct: report
September 1, 2023 // The group rolled out a media campaign the same day, purchasing a TV commercial and a billboard in Times Square that read “Who’s America’s Worst Boss?” The sign featured pictures of SEIU President Mary Kay Henry alongside comedian and TV host Ellen DeGeneres and pop star Lizzo — both of whom have had workplace complaints lodged against them. Several male leaders at the union have received promotions in recent years despite being accused of harassment, according to the group’s report.
Who will control New Jersey’s ports now that the state has withdrawn from Waterfront Commission?
August 17, 2023 // The commission’s death was a triumph for Gov. Phil Murphy, whose administration took the fight to the U.S. Supreme Court, and his allies in the International Longshoremen’s Association, the maritime labor union that has controlled hiring at the port for decades. In late July, Murphy traveled to the union’s international convention in Hollywood, Fl. to celebrate the victory and salute the man he calls a “dear friend” and “partner in growing the New Jersey economy,” ILA President Harold J. Daggett. “I am happy to report that as of last Monday, the commission has been officially dissolved,” said Murphy, addressing more than 1,000 cheering union members assembled in the grand ballroom of The Diplomat Beach Resort. “Now we can finally begin to turn the page, and together, I look forward to starting a new chapter at our ports.” Murphy’s speech came a day after a profanity-laced address by Daggett, who promised a “painful” comeuppance for union foes and companies that would attempt to replace workers with automation. He vowed to cripple port commerce next year if the union’s contract demands aren’t met. “Mark my words! There’s going to be an explosion,” Daggett said. “Someone must take the bull by the horns, and that’s me… Don’t f–k with the maritime unions around the world. We will shut you down!”
Ex-NYPD union boss gets 2 years for stealing $600,000 from members’ fund: ‘An incredibly bad decision’
August 4, 2023 // In October 2021, Mullins resigned as head of the SBA after the FBI searched the union’s Manhattan office and his Long Island home. Weeks later, he retired from the New York Police Department. Prosecutors said Mullins stole money in part to pay for meals at high-end restaurants and to buy luxury personal items, including jewelry. Sometimes, they said, he charged personal supermarket bills to the union and counted costly meals with friends as business expenses. His lawyer, Thomas Kenniff, told the judge that his client did not live lavishly on his roughly $250,000 salary.
Disgraced ex-NYPD union boss Ed Mullins asks for no-jail sentence in embezzlement case
July 28, 2023 // The disgraced ex-head of the NYPD’s Sergeants Benevolent Association is asking a judge to impose a no-jail penalty at his sentencing in an embezzlement case next month. Ed Mullins, 61, in January copped to stealing $600,000 from the union he helmed — submitting inflated expense reports between 2017 and 2021 and using money for high-end meals, clothes, jewelry, home appliances and a relative’s college tuition. Mullin’s lawyer Thomas Kenniff said his client’s 39 years of public service, otherwise spotless criminal record and other factors warrant leniency, according to a Thursday letterto Manhattan federal Judge John Koeltl. “While the stain of this conviction will forever tarnish Mr. Mullins’ SBA tenure, it does not define it,” Kenniff wrote. “Nor must it erase the many years of faithful service he devoted to the SBA, and the successes the organization achieved under his leadership.”
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.
Former UIA contract worker sentenced for stealing taxpayer money
July 19, 2023 // Regulation agents with the UIA’s Fraud and Investigations Division built a detailed case against Semaje Reffigee by identifying irregular claim activity that uncovered a kickback scheme to defraud the agency and Michigan taxpayers. Reffigee is one of nearly 50 fraudsters – four of them former UIA staff or contract workers – who have been convicted of unemployment insurance crimes. Many more cases are pending. In a plea agreement, Reffigee was sentenced in Detroit to 18 months in prison on one count of conspiracy to commit wire fraud for her participation in the pandemic-related unemployment insurance fraud scheme. She was ordered to pay $313,497 in restitution to the state of Michigan. The UIA uses internal and external tools as well as close collaborations with local, state, and federal law enforcement agencies to file charges and bring suspects to justice. Charges have been brought in more than 100 criminal cases UIA’s investigators have built since March 2020. Once detailed evidence is gathered and suspects identified, agents work with the Department of Labor’s Office of Inspector General (U.S. DOL-OIG) as well as local, state and federal authorities to prosecute the cases.
Ex-NYPD union boss delays fraud sentence with re-entry class while collecting six-figure city pension
June 14, 2023 // Ed Mullins — who faces up to 20 years behind bars for stealing hundreds of thousands of dollars in union dues from the Sergeants Benevolent Association — was scheduled to be sentenced on May 25 in the federal case. But Mullins, 61, managed to delay the potential prison term to complete a 12-week pre-sentencing course run by the Focus Forward Project that helps criminal defendants prepare for life in lockup and re-entry into society, according to court documents. Federal prosecutors said he used the member dues to pay for hundreds of personal high-end meals as well as clothing, jewelry and home appliances — and even a relative’s college education.
Former state police union head gets 2 1/2 years in prison on fraud, racketeering convictions
May 11, 2023 // Lynch paid Pullman a $20,000 kickback in connection with a settlement agreement between the union and the state, prosecutors said. They also defrauded two companies that sought to do business with the state police by hiding the fact that Lynch was paying Pullman to direct vendors to use Lynch’s services, authorities said. They then hid the payments to avoid reporting and paying taxes on that income. Pullman also embezzled union funds by using a debit card tied to a union bank account to pay for thousands of dollars worth of meals and travel for himself and his girlfriend to Florida. The union represents more than 1,500 troopers and sergeants.