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Office of Labor-Management Standards (OLMS)

Criminal Enforcement Actions 2017

An indictment is a formal accusation or charge based on a finding by a Grand Jury that it is likely that the person charged committed the criminal offense described in the indictment and is the means by which an accused person (defendant) is brought to trial. An indictment raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

An information is a formal accusation of a crime by a government attorney rather than a Grand Jury.  An information raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

A charge is an accusation of criminal activity and raises no inference of guilt. As in all criminal cases, each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Each count is a separate and distinct offense charged in an indictment or information.

A guilty plea is a defendant’s admission to the court that he or she committed the offense charged and an agreement to waive the right to a trial.

A conviction is a judgment based on a jury’s verdict, judge’s finding, or the defendant’s admission that the defendant is guilty of the crime charged.

A sentence is a judicial determination of the punishment to be imposed on an individual who has plead guilty or has been convicted by a jury or judge of a criminal offense.

 


 

On March 8, 2017, in the United States District Court for the Southern District of New York (White Plains), Brian W. Scott, former President/Business Manager of International Brotherhood of Electrical Workers (IBEW) Local 503 (located in Monroe, N.Y.), was sentenced to one year and one day in federal prison followed by two years of supervised release.  Scott was also ordered to pay restitution in the amount of $68,771.  On November 17, 2016, Scott pled guilty to one count of mail fraud, in violation of 18 U.S.C. 1341.  The sentencing follows an investigation by the OLMS New York District Office. 

On March 3, 2017, in the United States District Court for the Eastern District of California, Edward Padilla, former Secretary-Treasurer/Business Manager of Laborers Local 220 (located in Bakersfield, Calif.), was charged in a one-count information with embezzlement of union funds totaling $168,780, in violation of 29 U.S.C. 501(c).  The charge follows an investigation by the OLMS Los Angeles District Office.

On March 1, 2017, in the United States District Court for the Middle District of Pennsylvania, Stephen Royer, former Secretary-Treasurer of Machinists Lodge 243 (located in East Prospect, Pa.), was charged in a five-count indictment, which included one count of embezzling $130,870 in union funds, in violation of 29 U.S.C. 501(c), and four counts of filing false reports, in violation of 29 U.S.C. 439(b).  The indictment follows an investigation by the OLMS Philadelphia-Pittsburgh District Office. 

On February 28, 2017, in the United States District Court for the District of Delaware, Lon Sullivan, former Treasurer of American Federation of Government Employees (AFGE) Local 644 (located in Baltimore, Md.), was charged in an information with one count of wire fraud in the amount of $8,647, in violation of 18 U.S.C. 1343.  He then pled guilty to the charge.  Sullivan agreed to pay restitution in the amount of $96,809.  The subject union was comprised of DOL employees.  The charge and guilty plea follow an investigation by the OLMS Philadelphia-Pittsburgh District Office and the Department of Labor’s Office of Inspector General.  

On February 27, 2017, in the United States District Court for the District of Columbia, Gary Cooper, a contractor associated with Laborers Local 657 (located in Washington, D.C.), was sentenced to 68 months in prison, 36 months of probation, and 120 hours of community service.  He was also ordered to pay $1,632,000 in restitution.  On November 22, 2016, Cooper was convicted by a jury of one count of conspiracy to embezzle from a labor organization, in violation of 29 U.S.C. 501(c) and 18 U.S.C. 371; one count of conspiracy to make unlawful labor payments, in violation of 29 U.S.C. 186 and 18 U.S.C. 371; one count of wire fraud, in violation of 18 U.S.C. 1343; and two counts of money laundering, in violation of 18 U.S.C. 1957, for stealing $1.7 million from the union.  The sentencing follows an investigation by the OLMS Washington District Office, the FBI, and the Department of Labor’s Office of Inspector General. 

On February 24, 2017, in the United States District Court for the District of Columbia, Juan Carlos Recinos, former business manager for Iron Workers Local 201 (located in Washington, D.C.), pled guilty to one count of Fraud in the Second Degree, in violation of DC Code Section 22-3221(b) and Section 22-3222(b)(2), on the condition that he repay the seven union members he stole from prior to sentencing.  Recinos pled guilty to stealing $26,900 from the seven union members when he told them that they had to pay him cash from their back pay awards to pay an attorney that helped obtain the back pay, when there was no attorney involved.  The guilty plea follows an investigation by the OLMS Washington District Office and the Department of Labor’s Office of Inspector General.

On February 23, 2017, in the Dakota County (Minnesota) District Court, William Winecke, former Treasurer of the Soo Line Locomotive and Car Foremen’s Association (located in Apple Valley, Minn.), pled guilty to one count of theft by swindle of more than $35,000, in violation of Minnesota State Statute 609.52.2(4).  On the same date, Winecke was sentenced to 30 days of confinement and four years of probation, and he was also ordered to pay $12,536 in restitution and $504 in fees.  Winecke previously made restitution in the amount of $29,000.  The guilty plea and sentencing follow an investigation by the OLMS Minneapolis Resident Investigator Office.

On February 22, 2017, in the United States District Court for the Northern District of Ohio, Western Division, Aaron Contreras, former Secretary-Treasurer of Communications Workers of America (CWA) Local 84749 (located in Fostoria, Ohio), was sentenced to 16 months of incarceration, three years of supervised release, and he was ordered to make full restitution of $42,700.  On October 11, 2016, Contreras pled guilty to one count of embezzlement in the amount of $42,700.  The sentencing follows a joint investigation by the OLMS Cincinnati-Cleveland District Office and the Fostoria, Ohio Police Department. 

On February 17, 2017, in the Ashtabula, Ohio Court of Common Pleas, Adele Dewey, former Secretary-Treasurer of Steelworkers Local 811 (located in Andover, Ohio), pled guilty to one count of theft in the amount of $4,224, in violation of O.R.C. 2913.02, and one count of forgery, in violation of O.R.C. 2913.31.  She was immediately sentenced to 30 days of incarceration (suspended) and one year of supervised release.  Dewey was ordered to pay a $250 fine for each charge and to perform 40 hours of community service.  Dewey already paid full restitution.  The plea and sentencing follow an investigation by the OLMS Cincinnati-Cleveland District Office. 

On February 16, 2017,in Waupaca County, Wisconsin Circuit Court, Teresa Adkins, former business manager of Heat & Frost Insulators Local 127 (located in Clintonville, Wis.), was charged in 10-count criminal complaint with one count of felony theft of more than $10,000 and nine counts of felony forgery, in violation of Wisconsin State Statute 943.20(1)(b) and 943.38(1)(a), respectively.  The charges follow an investigation by the OLMS Minneapolis Resident Investigator Office.

On February 15, 2017, in the United States District Court for the Eastern District of Michigan, Devon Madray, former President of Security, Police and Fire Professionals of America (SPFPA) Local 119 (located in Roseville, Mich.), was sentenced to five years of probation and was also ordered to pay $20,097 in restitution and a $100 special assessment.  On October 24, 2016, Madray pled guilty to one count of embezzling union funds in the same amount, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS Detroit-Milwaukee District Office.

On February 14, 2017, in the United States District Court for the Western District of Pennsylvania, Daniel R. Guthrie, former President of United Steelworkers (USW) Local 10-583 (located in Bradford, Pa.), was indicted on one count of embezzling $8,189 in union funds, in violation of 29 U.S.C. 501(c).  The charge follows an investigation by the OLMS Philadelphia-Pittsburgh District Office.

On February 14, 2017, in the United States District Court for the Western District of Texas, Clementine T. Ray , former President of American Federation of Government Employees (AFGE) Local 2109 (located in Temple, Tex.), was charged in a one-count indictment of wire fraud, in violation of 18 U.S.C. 1343.  The charge follows an investigation by the OLMS Dallas-New Orleans District Office. 

On February 8, 2017, in the Franklin County, Ohio Court of Common Pleas, Michael Mathis, former Secretary-Treasurer of Locomotive Engineers Division 34 (located in Columbus, Ohio), was charged with one count of theft in the amount of $5,784, in violation of Ohio Revised Code 2913.02.  The charge follows an investigation by the OLMS Cincinnati-Cleveland District Office.

On February 8, 2017, in the United States District Court for the District of Columbia, Christopher Kwegan, a contractor associated with Laborers Local 657 (located in Washington, D.C.), was sentenced to four years in prison, three years of probation, and 120 hours of community service.  He was also ordered to pay $1,632,000 in restitution.  On November 1, 2016, Kwegan pled guilty to one count of conspiracy to commit embezzlement from a labor organization, in violation of 29 U.S.C. 501(c) and 18 U.S.C. 371; one count of conspiracy to accept unlawful labor payments, in violation of 29 U.S.C. 186(b) and 18 U.S.C. 371; one count of conspiracy to commit wire and honest services fraud, in violation of 18 U.S.C. 1341, 18 U.S.C. 1346, and 18 U.S.C. 371; and 39 counts of money laundering, in violation of 18 U.S.C. 1957.  The sentencing follows an investigation by the OLMS Washington District Office, the FBI, and the Department of Labor’s Office of Inspector General. 

On February 7, 2017, in the United States District Court for the District of Columbia, Anthony Frederick, former business manager for Laborers Local 657 (located in Washington, D.C.), was sentenced to four years in prison, three years of probation, and 120 hours of community service.  Frederick was also ordered to pay $1,632,000 in restitution.  On October 31, 2016, Frederick pled guilty to one count of conspiracy to embezzle money from a labor organization, in violation of 29 U.S.C. 501(c) and 18 U.S.C. 371; one count of conspiracy to receive unlawful labor payments in violation of 29 U.S.C. 186 and 18 U.S.C. 371; one count of conspiracy to commit wire fraud in violation of 18 U.S.C. 1343 and 18 U.S.C. 371; and one count of money laundering, in violation of 18 U.S.C. 1957.  The sentencing follows an investigation by the OLMS Washington District Office, the FBI, and the Department of Labor’s Office of Inspector General.

On February 7, 2017, in the United States District Court District of Wyoming, Harold Giberson, former President of Utility Workers Local 127 (located in Casper, Wyo.), was sentenced to six months of home confinement and five years of probation.  He was also ordered to pay restitution in the amount of $158,953 and a $100 special assessment.  On December 2, 2016, Giberson pled guilty to embezzlement in the amount of $179,052, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS Denver-St. Louis District Office.  

On February 6, 2017, in the United States District Court for the District of Columbia, Wanda Rosenboro-Correa, former Secretary-Treasurer of American Federation of Government Employees (AFGE) Local 2798 (located in Washington, D.C.), was sentenced to five years of probation and was ordered to pay restitution of $13,803.  On November 22, 2016, Rosenboro-Correa pled guilty to one count of theft within a special maritime and territorial jurisdiction of the United States, in violation of 18 U.S.C. 661.  The sentencing follows an investigation by the OLMS Washington District Office. 

On February 2, 2017, in the United States District Court for the Eastern District of Virginia, Norfolk Division, Robert Smith III, former Business Agent and Financial Secretary of International Longshoremen’s Association (ILA) Local 970 (located in Norfolk, Va.), was sentenced to 41 months in prison followed by three years of probation.  Smith was also ordered to pay $1,072,669 in restitution.  On October 14, 2016, Smith pled guilty to one count of mail fraud, in violation of 18 U.S.C. 1341, for stealing $1,072,669 from the union by making cash withdrawals from the union’s bank account, paying his personal credit card bills, and using union funds to buy gas, food, clothing, shoes, toys, entertainment, and home improvement supplies.  The sentencing follows an investigation by the OLMS Washington District Office, the Department of Labor’s Office of Inspector General, and the FBI. 

On February 1, 2017, in the Commonwealth of Pennsylvania, Court of Common Pleas, County of Clarion, Mark Bell, former Secretary-Treasurer of International Association of Machinists Lodge 2439 (located in Knox, Pa.), was sentenced to 18 months of probation.  He was also ordered to pay the cost of prosecution and the cost of supervision fee of $35 per month and to complete 50 hours of community service.  Bell previously paid $872 in restitution.  On January 4, 2017, Bell pled guilty to one count of forgery, in violation of 18 Pa. C.S. 4101(a)(1).  The sentencing follows an investigation by the OLMS Philadelphia-Pittsburgh District Office.

On January 31, 2017, in the United States District Court for the Northern District of Alabama, Southern Division, Michael Lackey, former President of Communications Workers of America (CWA) Local 3901 (located in Oxford, Ala.), pled guilty to five counts of bank fraud, in violation of 18 U.S.C. 1344, and one count of embezzlement in the amount of $69,193, in violation of 29 U.S.C. 501(c).  The guilty plea follows an investigation by the OLMS Atlanta-Nashville District Office.

On January 30, 2017, in the United States District Court for the District of Minnesota, Keith Christopherson, former business manager for Heat & Frost Insulators and Allied Workers (HFIA) Local 34 (located in St. Paul, Minn.), was sentenced to four months of incarceration followed by two years of supervised release.  Christopherson was also ordered to pay $67,714 in restitution and a $100 special assessment.  On August 19, 2016, Christopherson pled guilty to one count of embezzlement of union funds, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS Minneapolis Resident Investigator Office. 

On January 26, 2017, in the United States District Court for the Northern District of Illinois, Michael Schofield, former Secretary-Treasurer of Brotherhood of Maintenance of Way (BMW) Local 1046 (located in Plainfield, Ill.), entered into an amended plea, thereby dismissing the June 30, 2016 guilty plea.  In the amended plea, Schofield pled guilty to the same one-count charge of making a false entry with respect to the filing of the union’s LM-4 report for fiscal year ending March 31, 2013 in that it helped conceal an embezzlement of union funds totaling $31,850 during 2012 and 2013.  In the amended plea, for the purpose of determining relevant conduct pursuant to Guideline 1B1.3,  Schofield admitted to making unauthorized loans of union funds to himself in excess of $2,000, in violation of 29 U.S.C. 503(a).  In the amended plea, for the purpose of computing his sentence under Guideline 1B1.2, Schofield stipulated to having committed wire fraud to defraud his employer (Union Pacific) of $30,641, in violation of 18 U.S.C. 1343.  As a result of violating the terms of his pretrial release (stipulated wire fraud offense), Schofield was incarcerated pending his March 21, 2017 scheduled sentencing date.  The guilty plea follows an investigation by the OLMS Chicago District Office. 

On January 26, 2017, in the United States District Court for the Central District of California, Carmen Martinez, former Treasurer of Bet Tzedek Legal Service Union Local 946E (located in Los Angeles, Calif.) pled guilty to one count of embezzling union funds in the amount of $19,070, in violation of 29 U.S.C. 501(c).  The guilty plea follows a joint investigation by the OLMS Los Angeles District Office and the Department of Labor’s Office of Inspector General.

On January 25, 2017, in the United States District Court for the Northern District of Alabama, Angela Parrish-Wilson, former office manager of the Mid-South Retail Wholesale and Department Store Union, District Council 932 (located in Birmingham, Ala.), was charged with one count of embezzling $41,450 in union funds from District Council 932 as well as Locals 201 and 555, in violation of 29 U.S.C. 501(c), and 20 counts of defrauding a FDIC insured financial institution of over $40,000, in violation of 18 U.S.C 1344(2).  The charges follow an investigation by the OLMS Tampa Resident Investigator Office of the Atlanta-Nashville District Office. 

On January 25, 2017, in the Suffolk County First District Court of New York, David Diaz, former President of American Federation of Government Employees (AFGE) Local 387 (located in Northport, N.Y.), was charged in a felony complaint with Grand Larceny in the Third Degree, a Class D Felony, for a larceny exceeding $3,000, in violation of New York State Penal Law 155.35.  Diaz was then arrested and surrendered to the Suffolk County Attorney General's Office.  The charge follows an investigation by the OLMS New York District Office and the Department of Veterans Affairs’ Office of Inspector General. 

On January 25, 2017, in the United States District Court for the District of Idaho, Ashley Cline, former office manager for Laborers International Union of North America (LIUNA) Local 155 (located in Idaho Falls, Idaho), was indicted and pled guilty to one count of embezzling over $37,000 in union funds, in violation of 29 U.S.C. 501(c).  The sentencing is scheduled for April 20, 2017.  The charge and guilty plea follow an investigation by the OLMS San Francisco - Seattle District Office. 

On January 25, 2017, in the United States District Court for the Middle District of Pennsylvania, John Kauffman, Jr., former President of National Federation of Government Employees (NFFE) Lodge 1442 (located at Chambersburg, Pa.), was sentenced to one month of imprisonment followed by seven months of home confinement.  He was also ordered to pay restitution in the amount of $22,062.  On September 26, 2016, Kauffman pled guilty to mail fraud, in violation of 18 U.S.C. 1341.  The sentencing follows an investigation by the OLMS Philadelphia-Pittsburgh District Office.

On January 24, 2017, in the United States District Court for the Southern District of New York, Louis Smith, former President of Teamsters Local 810 (located in Long Island City, N.Y.), was sentenced to one year in prison followed by two years of supervised release.  He was also ordered to pay $151,481 in forfeiture.  Smith had already paid $213,264 in restitution to the local's health and welfare fund.  On August 5, 2016, Smith pled guilty to conspiracy to solicit and receive kickbacks in an employee benefit plan, in violation of 18 U.S.C. 371 and 1954.  The sentencing follows a joint investigation by the OLMS New York District Office, the NYPD, the Department of Labor's Office of Inspector General, and the FBI.

On January 23, 2017, in the United States District Court for the Northern District of Alabama, Michelle Clifton, former office manager for Insulators Local 78 (located in Birmingham, Ala.), was sentenced to three months of imprisonment, three months of home detention, and three years of supervised release.  She was also ordered to pay $23,014 in restitution.  On August 30, 2016, Clifton pled guilty to one count of embezzlement in the amount of $23,014, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS Atlanta-Nashville District Office.  

On January 18, 2017, in the United States District Court for the Eastern District of Washington, Charles Nelson, former Secretary-Treasurer of the National Council of Security Police (NCSP), formally located in Yakima, Wash., was sentenced to six months in a federal penitentiary and three years of federal probation.  He was also ordered to pay restitution in the amount of $143,489 and a $100 fine.  On September 7, 2016, Nelson pled guilty to one count of embezzling over $140,000 in union funds, in violation of 29 U.S.C. 501(c).  The sentencing follows an investigation by the OLMS San Francisco-Seattle District Office.

On January 17, 2017, in the United States District Court for the Central District of California, John J. Romero, former Treasurer of United Industrial & Service Workers of America (UISWA), located in Colton, Calif., pled guilty to one count of conspiracy to commit theft or embezzlement in connection with healthcare, in violation of 18 U.S.C. 669.  The guilty plea follows an investigation by the OLMS Los Angeles District Office, the Department of Labor’s Office of Inspector General, and the Employee Benefits Security Administration. 

On January 12, 2017, in the 10th Judicial Circuit in Jefferson County, Alabama, John Clifton, former unit griever for Steelworkers Local 09-1013-S (located in Fairfield, Ala.), pled guilty to theft of property, in violation of 13A-008-005.  He was then sentenced to one year in the Jefferson County Jail (suspended) and placed on unsupervised probation for two years.  Clifton was also ordered to pay $8,000 in restitution.  The guilty plea and sentencing follow an investigation by the OLMS Atlanta-Nashville District Office. 

On January 12, 2017, in the Western District of Oklahoma, Kathleen Smith, former Financial Secretary-Treasurer of Machinists Lodge 850 and the Oklahoma State Council of Machinists (located in Oklahoma City, Okla.), was charged and pled guilty to one count of embezzling $18,658 in union funds, in violation of 29 U.S.C 501(c).  The charge and plea follow an investigation by the OLMS Dallas-New Orleans District Office.

On January 9, 2017, in the United States District Court for the District of New Jersey, Sergio Acosta, President/Employee of United Auto Workers (UAW) Local 2326 and Lawrence Ackerman, a health insurance broker, were each charged with one count of conspiring to defraud Horizon Blue Cross Blue Shield of $5.5 million and one count of conspiring to defraud the Local 2326 self-insured plan of $1 million, in violation of 18 U.S.C. 1347 and 1349, respectively.  The charges follow an investigation by the OLMS New York District Office, the Department of Labor’s Office of Inspector General, and the Office of Employee Benefits Security Administration. 

On January 5, 2017, in the United States Court for the Southern District of New York, Adrian Lindsay, former Vice President of the Benefit Fund Staff Association (located in New York, N.Y.), was sentenced to two years of probation.  Lindsay was also ordered to pay $12,000 in restitution and a $25 special assessment.  On July 21, 2016, Lindsay pled guilty to willful concealment and withholding of records, in violation of 29 U.S.C. 439(c), showing use of association funds for approximately $25,000 in combined expenditures, with former President Malkia King, that were not authorized by the union.  The sentencing follows an investigation by the OLMS New York District Office.

On January 4, 2017, in the Commonwealth of Pennsylvania, Court of Common Pleas, County of Clarion, Mark Bell, former Secretary-Treasurer of International Association of Machinists Lodge 2439 (located in Knox, Pa.), pled guilty to one count of forgery, in violation of 18 Pa. C.S. 4101(a)(1).  The guilty plea follows an investigation by the OLMS Philadelphia-Pittsburgh District Office.  

 

Last Updated: 3-15-17