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Union Facts

Crime and Corruption

handcuffsNearly fifty years after John F. Kennedy first condemned corrupt leadership in the American labor movement, it is still plagued by rampant corruption, embezzlement, racketeering and influence from numerous organized crime organizations. From penny-ante theft to multi-million dollar embezzlement schemes, labor leaders continue to violate the trust of the members they claim to represent.

The labor movement is nothing but the sum of its many parts—millions of working Americans who’ve entrusted union leaders to spend a portion of their hard earned salary for the benefit of the collective good. Financially speaking, the sum of the movement’s parts totals more than $10 billion dollars annually in mandatory dues and controls another $400 billion in financial assets in strike funds, pension plans, and health care benefits.

In fact, in just the last five years, hundreds (maybe thousands) of labor leaders at all levels of the movement have been convicted of embezzlement, corruption, racketeering, or engaging in organized crime. The problem is rampant, getting worse, and yet the unions seemingly refuse to address it.

Key Findings:

  • During fiscal years 2000–2019, OLMS investigations led to over $156.3 million dollars of restitution in over 2,100 criminal cases;
  • OLMS investigations also led to 2,297 indictments and 2166 convictions;
  • The Labor-Management Reporting and Disclosure Act’s (LMRDA) reliance on self-government, public disclosure, and ultimately deterrence has failed;
  • The Department of Labor’s (DOL) Office of Labor-Management Standards (OLMS) has investigated and prosecuted union leaders for embezzling more than $100 million in union dues since 2001;
  • Investigations by the DOL’s Office of Inspector General, which investigates labor racketeering and organized crime’s influence within the labor movement, has resulted in more than $1 billion in fines, restitutions, and forfeitures;
  • Fewer than 5 percent of unions audited by the DOL received unqualified passes.

Read More:

Labor Racketeering Enforcement Actions

 

 

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cases opened 117 81 92 103 67 74 62 59 42 43 39
Cases closed 130 122 102 95 92 144 107 71 78 60 60
Cases referred for prosecution 105 73 91 74 66 65 51 62 51 44 37
Indictments 139 128 149 111 107 87 77 60 139 68 80
Convictions 112 72 112 105 143 102 62 72 85 68 38
Fines, restitutions, forfeitures, and civil monetary actions ($ in millions) $72.9 $75.3 $109.2 $14.7 $18.1 $31.8 $122.1 $41.7 $15.6 $39.1 $68.1

OLMS Enforcement Statistics Financial Integrity

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Indictments 145 121 97 95 83 93 77 73 84 61
Convictions 116 121 116 100 68 87 79 72 60 69