embezzlement charges

Office of Labor-Management Enforcement

The Office of Labor-Management Standards (OLMS) conducts both civil and criminal investigations of alleged violations of the Labor-Management Reporting and Disclosure Act (LMRDA) and related laws.

These investigations by OLMS District Offices involve issues such as embezzlements of union funds, union officer elections, the filing of required reports by unions and others with OLMS, and the imposition of trusteeships over subordinate unions by a parent body. These investigations may result in legal enforcement actions.

Date	Description
January 21st, 2014	On January 21, 2014, in the United States District Court for the Middle District of Florida, Edward Martin Mosher, former Treasurer of Steelworkers Local 9-458 (located in Plant City, Fla.), pled guilty to one count of embezzling union funds in the amount of $65,895, in violation of 29 U.S.C. 501(c). The plea follows an investigation by the OLMS Tampa Resident Investigator Office.
August 22nd, 2012	On August 22, 2012, in the United States District Court for the Northern District of Alabama, Darrell Goldsby, former Secretary-Treasurer of Steelworkers Local 9-2140S (located in Pleasant Grove, Ala.), was sentenced to two years of probation and ordered to pay the remaining restitution in the amount of $5,569.15 and a $600 special assessment. On March 8, 2012, Goldsby pled guilty to one count of embezzlement in the amount of $10,869.15, in violation of 29 U.S.C. 501(c), and five counts of forgery, in violation of 18 U.S.C. 513(a). The sentencing follows an investigation by the OLMS Nashville District Office.
April 9th, 2012	On April 9, 2012, in the United States District Court for the Middle District of Alabama, Northern Division, Graven Townsend, former Treasurer of Steelworkers Local 9-462 (located in Prattville, Ala.), was sentenced to serve five years of probation and five months at Dismas Charities. Townsend was also ordered to pay additional restitution owed in the amount of $80,970.76 and a fine of $100. On December 21, 2011, Townsend pled guilty to a one-count information charging him with embezzlement in the amount of $98,970.76, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Nashville District Office.
December 21st, 2011	On December 21, 2011, in the United States District Court for the Middle District of Alabama, Northern Division, Graven Leevon Townsend, former Treasurer of Steelworkers Local 9-462 (located in Prattville, Ala.), pled guilty to a one-count information charging him with embezzlement in the amount of $98,970.76, in violation of 29 U.S.C. 501(c). The plea follows an investigation by the OLMS Nashville District Office.
October 14th, 2011	On October 14, 2011, in the United States District Court for the Northern District of Alabama, Dennis Lee McGee, Jr., former President of Steelworkers Local 9-9506 (located in Bynum, Ala.), pled guilty to three counts of 29 U.S.C. 501(c) for embezzling union funds totaling $1,950. McGee was then sentenced to three years probation and was ordered to pay $7,600 in restitution and a $300 special assessment. The guilty plea and sentencing follow an investigation by the OLMS Nashville District Office.
September 29th, 2011	On September 29, 2011, in the United States District Court for the Northern District of Alabama, Harry Dane Small, Jr., former Treasurer of Steelworkers Local 9-9506 (located in Bynum, Ala.), pled guilty to three counts of 29 U.S.C. 501(c) for embezzling union funds totaling $13,100. Small was then sentenced to three years probation including one year home detention. He was also ordered to pay $25,420 in restitution and a $300 special assessment. The guilty plea and sentencing follow an investigation by the OLMS Nashville District Office.
September 1st, 2009	On September 1, 2009, in the United States District Court for the Middle District of Florida, Tarris D. Dallas, former Financial Secretary-Treasurer of Steelworkers Local 9-415 (located in Fernandina Beach, Fla.), was sentenced to five years of probation and ordered to make restitution in the amount of $104,713.45 and pay a special court fee of $100. Also, Dallas was prohibited from incurring any additional credit card debts, ordered to perform 200 hours of community service, submit to random drug testing and obtain mental health treatment. On March 25, 2009, Dallas pled guilty to one count of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS Miami Resident Investigator Office.
March 25th, 2009	On March 25, 2009, in the United States District Court for the Middle District of Florida, Tarris D. Dallas, former Financial Secretary-Treasurer of United Steelworkers Local 9-415 (located in Fernandina Beach, Fla.), pled guilty to one count of embezzling union funds in the amount of approximately $105,000.The plea follows an investigation by the OLMS Atlanta District Office.
November 19th, 2008	On November 19, 2008, in the United States District Court for the Middle District of Florida, Tarris D. Dallas, former Financial Secretary-Treasurer of United Steelworker’s Local 9-415 (located in Fernandina Beach, Fla.) was indicted on one count of embezzling union funds in the amount of approximately $105,000. The charge follows an investigation by the OLMS Atlanta District Office.
July 7th, 2007	On July 7, 2007, in the United States District Court for the Eastern District of Tennessee, Larry Haislip, former Financial Secretary of Steelworkers Local 09-7509-S, was sentenced to six months probation, ordered to pay a special assessment of $100.00, and ordered to pay restitution in the amount of $49,428.78. On January 23, 2007, Haislip pled guilty to one count of embezzlement of labor organization funds in the amount of $1,702.97. The sentencing follows an investigation by the OLMS Nashville District Office.
March 23rd, 2005	On March 23, 2005, in the United States District Court for the Southern District of Alabama, Otis Johnson, Jr., former financial secretary of Local 9-9361-S, United Steelworkers, was sentenced to five years supervised probation and ordered to make restitution in the amount of $9,638.59. He pled guilty to embezzlement on December 15, 2004, following an investigation by the OLMS Nashville District Office.
October 7th, 2004	On October 7, 2004, in the United States District Court for the Western District of Louisiana, Rita Cloud, former financial secretary of Steelworkers Local 09-13314-S was sentenced to two years probation; she must serve the first six months of her sentence in home detention. In addition, Cloud was ordered to pay a $2,000 fine and to perform 100 hours of community service. She previously made restitution. On June 28, 2004, she pled guilty to one count of embezzling $16,988 of union funds following an investigation by the OLMS New Orleans District Office.
September 3rd, 2004	On September 3, 2004, in the United States District Court for the Northern District of Alabama, Richard Krystofiak, former financial secretary of Steelworkers Local 9-1071-L, was sentenced to 12 months of supervised probation and ordered to make restitution in the amount of $8,644.46 for embezzlement and making false entries. On May 18, 2004, Krystofiak pled guilty to the charges following an investigation by the OLMS Nashville District Office.
May 4th, 2004	On May 4, 2004, in the United States District Court for the Western District of Louisiana, an indictment was filed against Rita Cloud, former financial secretary of Steelworkers Local 09-13314, charging her with one count of embezzling $16,988 in union funds and one count of concealment/destruction of union records. The charges follow an investigation by the OLMS New Orleans District Office.
April 1st, 2004	On April 1, 2004, in the United States District Court for the Northern District of Alabama, Richard Krystofiak, former secretary-treasurer of Steelworkers Local 9-1071-L, was charged in a two-count indictment with embezzlement and making false entries in union records. The charges follow an investigation by the OLMS Nashville District Office.
March 16th, 2004	On March 16, 2004, in the United States District Court for the Middle District of North Carolina, Robert Hart, former president of Steelworkers Local 9-447, was sentenced to two years supervised probation. He made full restitution in the amount of $18,257. Hart had previously pled guilty to filing a false labor organization annual financial report on December 5, 2003, at which time an embezzlement charge was dismissed. The sentence follows an investigation by the OLMS Nashville District Office.
April 15th, 2002	On April 15, 2002, in the United States District Court for the Middle District of Tennessee, Michelle Arington, former bookkeeper of Steelworkers Local 9-194-L, was sentenced to five years probation and was ordered to make restitution of $5,707. As a special condition of probation, she must disclose her conviction to any employer for whom she is handling funds. She had earlier pled guilty to one count of embezzling union funds and one count of making false entries in required union records following an investigation by the OLMS Nashville District Office.
August 21st, 2001	On August 21, 2001, in the United States District Court for the Middle District of Tennessee, Michele Arington, former bookkeeper for Steelworkers Local 9-194-L, was indicted on one count of embezzling $5,635 in union funds. The charges were brought following an investigation by the OLMS Nashville District Office.
July 23rd, 2001	On July 23, 2001, in the United States District Court for the Western District of North Carolina, Terry Wilson, former secretary-treasurer of Steelworkers Local 09-1133-L, was placed on three years supervised probation and ordered to make restitution in the amount of $6,073, the amount of the $22,073 in union funds he embezzled which is still outstanding. He had entered a guilty plea on May 5, 2001. The charges had been brought following an investigation by the OLMS Nashville District Office.