Federal court orders former Arkansas steelworkers’ union president to pay $37K in restitution after US Department of Labor investigation

WHITE HALL, AR – Based on an investigation by the U.S. Department of Labor’s Office of Labor-Management Standards, a federal court has ordered former United Steelworkers Local 13-1731 president Trey Huffty to reimburse the White Hall, Arkansas, local $37,367 as part of his Sept. 23 sentencing.

In addition to restitution, the U.S. District Court for the Eastern District of Arkansas ordered Huffty to serve three years of probation, 150 hours of community service and $100 in penalties.  

OLMS investigators found that Huffty embezzled union funds between January 2015 and November 2018. The former president had claimed and received reimbursement from the union for wages he said he lost while conducting business for the union. The agency found, however, that Huffty obtained the payments for lost wages fraudulently, claiming reimbursement from the union for hours when his employer was paying him or when he was on paid time off, such as sick leave, personal days and vacation.

“The vast majority of union officials and employees work diligently and without incident, but in rare cases, unions and the workers they represent sometimes find themselves victims of financial crimes. When this occurs, the Office of Labor-Management Standards will work with unions to hold accountable anyone who exploits their position to enrich themselves at the expense of their union and the workers it represents,” said Office of Labor-Management Standards District Director Michelle Hussar in Dallas. “This sentencing and restitution order shows there are consequences for individuals who breach the trust placed in them to be good stewards of union funds.”

United Steelworkers Local 13-1731 represents more than 300 members.

OLMS administers and enforces provisions of the Labor-Management Reporting and Disclosure Act of 1959. The LMRDA promotes union democracy and financial integrity in private sector labor unions, and transparency for labor unions and their officials, employers and others. OLMS also administers provisions of the Civil Service Reform Act of 1978 and the Foreign Service Act of 1980, which extend comparable protections to federal sector labor unions.

Labor union fraud such as embezzlement, filing false reports, maintaining false records, destroying or concealing records and other criminal activity can be reported by email to OLMS-Public@dol.gov, to the OLMS National Office at 202-693-0143, or to your local OLMS field office. Find your local OLMS office.