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.
|April 6th, 2006||On April 6, 2006, in the United States District Court for the Northern District of Illinois, Gary W. Cope, former Business Manager for Electrical Workers (IBEW) Local Lodge 196, was indicted on one count of embezzling union funds totaling approximately $56,672. The indictment follows an investigation by the OLMS Chicago District Office.|
|August 1st, 2007||On August 1, 2007, in the United States District Court for the Eastern District of Louisiana, Lorraine Payton, former President of the National Federation of Federal Employees, Veterans Administration Council, pled guilty to one count of mail fraud. On March 16, 2007, Payton was charged in a superseding indictment with mail fraud and false statements to a government agency. The guilty plea follows an investigation by the OLMS New Orleans District Office.|
|August 10th, 2006||On August 10, 2006, in the United States District Court for the Eastern District of Louisiana, Lorraine Payton, former President of the National Federation of Federal Employees, Veterans Administration Council, was indicted on two counts of making false reports. The charges follow an investigation by the OLMS New Orleans District Office.|
|August 13th, 2003||On August 13, 2003, in the Marion County (Indiana) Superior Court Criminal Division, Casey Stewart, the son of an officer of the Employees Protection Association, received a suspended sentence of 547 days for theft. He was placed on probation for one year. On April 10, 2003, Stewart was charged in a three-count indictment with two counts of forgery and one count of theft when he negotiated two union checks totaling $2,576; the forgery counts were dismissed following a plea agreement. The sentencing and charges follow an investigation by the OLMS Cincinnati District Office. [Related documents: HTML | PDF]|
|August 6th, 2008||On August 6, 2008, in the United States District Court for the District of Puerto Rico, Jose Luis Caraballo, President of Obreros Unidos del Sur de PR IND NHQ (located in Salinas, P.R.), was indicted on two counts of embezzling union funds. Caraballo is alleged to have embezzled $400,000 under the guise of medical reimbursements and payments for services rendered, meals and car expenses, and unlawfully and willfully converting $49,500 for his own use in the form of a managers check. The indictment follows a joint investigation by the OLMS Atlanta District Office and the FBI.|
|January 10th, 2005||On January 10, 2005, in the United States District Court for the Northern District of Illinois, James M. Duff, principal leader, organizer and manager of the Duff family business enterprise, entered a guilty plea to multiple offenses including the following: racketeering conspiracy, money laundering conspiracy, 3 counts of wire fraud, 19 counts of mail fraud, 6 counts of money laundering and 3 counts of tax fraud. Duff was indicted in September 2003, for his role in defrauding the City of Chicago by fraudulently obtaining woman- and minority-owned business certifications for two of his companies. In addition, Duff fraudulently obtained government and private contracts for the two companies on the basis of the certification. The guilty plea follows a joint investigation by the OLMS Chicago District Office, the FBI, the IRS, and the Department of Labor's Office of the Inspector General.|
|July 28th, 2008||On July 28, 2008, in the United States District Court for the Middle District of North Carolina, Krista Yeatts, former office manager of Machinists Lodge 2444 (located in Winston-Salem, N.C.), was indicted on one count of embezzling union funds in the amount of $47,746.01. The indictment follows an investigation by the OLMS Nashville District Office.|
|May 29th, 2003||On May 29, 2003, in the United States District Court for the District of Massachusetts, Gene Malinowski, former business manager and secretary-treasurer of Boilermakers Local Lodge 1851, was indicted on one count of embezzlement and one count of aiding and abetting. The indictment was sealed until June 10, 2003 when Malinowski was arrested. The charges were brought following an investigation by the OLMS New Haven Resident Office. [Related documents: HTML | PDF]|
|May 5th, 2004||On May 5, 2004, in the United States District Court for the District of Massachusetts, Gene Malinowski, former secretary-treasurer and business manager of Boilermakers Lodge 1851, was sentenced to six months community confinement, six months home confinement and five years probation for conspiracy and embezzlement. Malinowski was fined $100, assessed $50 and ordered to make additional restitution in the amount of $17,205. On December 18, 2003, he was indicted on one count of conspiracy and one count of embezzlement. Since the amount in the indictment was unspecified, the loss was fixed at $81,000 during the sentencing. The sentence follows an investigation by the OLMS New Haven Resident Office.|
|September 15th, 2005||On September 15, 2005, in the United States District Court for the District of Kansas, Christopher Scott Wagner, former Operations Manager for the Boilermakers National Funds, was indicted on one count of lying to federal agents and one count of obstructing a health care investigation. The indictment follows an investigation by the OLMS St. Louis District Office and the DOL's Employee Benefits Security Administration and Office of Inspector General.|
|September 25th, 2003||On September 25, 2003, in the United States District Court for the Northern District of Illinois, James M. Duff, principal leader, organizer and manager of the Duff family business enterprise, and the following six individuals were indicted by federal grand jury on 30 counts of fraud, money laundering, and racketeering conspiracy: Patricia Green Duff, William Stratton, Terrence Dolan, Starling Alexander, John Leahy, and Edward Wisniewski. The indictment involves two alleged fraud schemes: one relating to more than $100 million in government and private contracts obtained by sham woman- and minority-owned businesses and the other relating to over $3 million in unpaid workers' compensation insurance premiums. All of the charges involve the activities of the Duff family businesses. The individuals were charged as follows:|