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Union Facts

Operating Engineers

Guilty Pleas

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.

DateDescription
September 2nd, 2015On September 2, 2015, in the United States District Court for the Eastern District of Michigan, Steven Minella, former President and Business Agent of International Union of Operating Engineers (IUOE) Local 324 (located in Bloomfield Hills, Mich.), pled guilty to one count of misprision of a felony, in violation of 18 U.S.C. 4, for failing to report to appropriate authorities the commission of extortion (18 U.S.C. 1951) by another Local 324 official. The guilty plea follows a joint investigation by the OLMS Detroit-Milwaukee District Office, the Department of LaborÕs Office of Inspector General, the Employee Benefits Security Administration, the Federal Bureau of Investigation, and the Internal Revenue Service.
March 25th, 2014On March 25, 2014, in the United States District Court for the District of Colorado, Ronald Martin, former bookkeeper for International Union of Operating Engineers (IUOE) Local 9 (located in Denver, Colo.), was sentenced to five months of probation and was ordered to pay restitution of $30,338 and a $200 assessment. At the time of his sentencing, Martin also petitioned the court for an exemption from the Section 504 bar prohibiting him from serving as a union official or employee for 13 years following his conviction; the judge denied his request. On November 14, 2013, Martin pled guilty to a two-count information charging him with embezzlement of union funds, in violation of 29 U.S.C. 501(c). The charge follows an investigation by the OLMS Denver-St. Louis District Office.
October 1st, 2012On October 1, 2012, Ronald Witt, former business manager and JATC Trustee of International Union of Operating Engineers (IUOE) Local 450 in Houston, Texas, was sentenced to one year and one day in prison, three years of supervised release, and was ordered to pay $198,333 in restitution. In January 2012, Witt pled guilty to one count of conspiring to embezzle union funds. Witt stole nearly $200,000 and used the money to pay for luxury trips for himself and friends, to remodel his home, and for other personal expenses. Witt’s wife, Anita Witt, former Local 450 Financial Secretary and the committee’s coordinator, was also charged with conspiracy and embezzlement from an employee benefit plan. Those charges were dismissed following the acceptance of responsibility and sentencing of her husband as agreed to in Ronald Witt’s plea agreement. This investigation was conducted jointly with the Employee Benefits Security Administration.
January 19th, 2012On January 19, 2012, in the United States District Court for the Southern District of Texas, Ronald W. Witt, former business manager of International Union of Operating Engineers (IUOE) Local 450 (located in Houston, Tex.), pled guilty to one count of conspiracy, in violation of 18 U.S.C. 371. The plea follows an investigation by the OLMS New Orleans District Office and the Employee Benefits Security Administration.
October 26th, 2010On October 26, 2010, in the United States District Court for the Northern District of Illinois, William Dugan, former President and Business Manager of Operating Engineers Local 150 (located in Countryside, IL), was sentenced to three years probation and ordered to pay a fine of $30,000, an assessment of $25, and the cost of probation on a monthly basis. Special conditions of supervision also require Dugan to file appropriate Form LM-30 reports. On March 22, 2010, Dugan pled guilty to one count of receiving a thing of value from a signatory employer. The sentencing follows a joint investigation by the OLMS Chicago District Office, FBI, and DOL OIG.
May 27th, 2010On May 27, 2010, in the United States District Court for the District of Nevada, Cheryl Staley, former dues clerk of Operating Engineers Local 501 (located in Los Angeles, Calif.), pled guilty to a two-count information charging her with embezzling union funds in the amount of $231,653.89 and falsifying records. The plea follows an investigation by the OLMS Los Angeles District Office.
March 22nd, 2010On March 22, 2010, in the United States District Court for the Northern District of Illinois, William Dugan, former President of Operating Engineers Local 150 (located in Countryside, Ill.) pled guilty to one count of accepting and receiving the delivery of concrete buffalo feeders (value of over $900) from an employer whose employees the union represents. On March 10, 2010, an information filed charging Dugan with a misdemeanor count of receiving and accepting a thing of value from an employer whose employees were represented by the union in which the he was an officer. The plea follows a joint investigation by the OLMS Chicago District Office, the Department of Labor’s Office of Inspector General, the Department of Labor’s Employment Benefit Security Administration, and the FBI.
December 18th, 2006On December 18, 2006, in the United States District Court for the Northern District of Ohio, Boni Segura, former clerk/secretary for the International Union of Operating Engineers, Local 18, was sentenced to 5 years probation and ordered to make restitution to the Fidelity and Deposit Company of Maryland in the amount of $5,548.98 immediately. On August 8, 2006, Segura pled guilty to one count of embezzling union funds in the amount of $5,729. The sentencing follows an investigation by the OLMS Cleveland District Office and the Department of Labor's Office of Inspector General.
August 8th, 2006On August 8, 2006, in the United States District Court for the Northern District of Ohio, Boni L. Segura, former Secretary for Operating Engineers (IUOE) Local 18, pled guilty to one count of embezzlement of union funds in the amount of $5,729. The guilty plea follows a joint investigation by the OLMS Cleveland District Office and the Department of Labor's Office of Inspector General.
May 7th, 2004On May 7, 2004, in the United States District Court for the Eastern District of New York, Michael Weiss, a contractor, pled guilty to an information charging him with obstruction of justice and making a false statement. Weiss was involved in a $10 million fraud against the Metropolitan Transit Authority (MTA) in the renovation of its new headquarters at 2 Broadway in New York City. In April 2003, an indictment was filed against seven individuals including a developer, officers from Operating Engineers Local 14 and members of Elevator Constructors, Local One. Weiss' guilty plea follows a joint investigation by the OLMS New York District Office and the FBI.
October 10th, 2003On October 10, 2003, in the United States District Court for the Eastern District of New York, Matthew Downey, a representative of Elevator Constructor Local One, was sentenced to 78 months imprisonment and three years supervised release. He was ordered to pay a total of $2.6 million in restitution for fraud involving a no-show elevator operator scheme against Local One and to forfeit the sum of $800,000 for his involvement in the Local One racketeering enterprise. Downey, jointly and severally with other co-conspirators, was ordered to pay $7 million in restitution for fraud involving the 2 Broadway Project. On February 5, 2002, Downey was indicted for unlawful activity involving Elevator Constructors Local One. Additionally, there were 27 members of Local One, including two business agents, indicted for their involvement in the no-show scheme at 19 different construction sites in New York City. On April 16, 2002, in a separate indictment, Downey was charged, along with seven other individuals (including the developer of the 2 Broadway Project, the Operating Engineers Local 14 treasurer, and Elevator Constructor Local One representatives), for defrauding the New York Metropolitan Transit Authority and ZAR Realty of more than $10 million in construction money that was intended for vertical transportation costs on the 2 Broadway project. On April 24, 2003, Downey pled guilty to various charges in both indictments. The guilty plea and sentence follow a joint investigation by the OLMS New York District Office and the FBI.
September 12th, 2003On September 12, 2003, in the United States District Court for the Eastern District of New York, James Roemer, former treasurer of Operating Engineers Local 14, was sentenced to 41 months imprisonment and three years probation for conspiracy to receive, possess, and dispose of money obtained by fraud and transported across state lines; making and receiving unlawful labor payments; engaging in unlawful monetary transactions; obstruction of justice; conspiracy to defraud the United States; and tax evasion. He was ordered to pay a total of $2.7 million in restitution and to forfeit $800,000 to the United States Government within 90 days of his guilty plea. He had been indicted on April 16, 2002, along with seven other individuals, including the developer of the 2 Broadway Project and Elevator Constructor Local One representatives, for illegal activity relating to defrauding the New York Metropolitan Transit Authority and ZAR Realty of more than $10 million in construction money that was intended for vertical transportation costs on the 2 Broadway project. On April 3, 2003, Roemer pled guilty to the charges following a joint investigation by the OLMS New York District Office and the FBI.
April 11th, 2003On April 11, 2003, in the United States District Court for the Eastern District of New York, Morris Diminno, a former representative of Operating Engineers Local 14, pled guilty to conspiracy to receive, possess and dispose of money obtained by fraud and transported across state lines, unlawful labor payment, engaging in an unlawful monetary transaction, and obstruction of justice. He agreed to forfeit $800,000 to the United States Government within 90 days from various assets. He had been indicted on April 16, 2002 on charges relating to fraud against the Metropolitan Transportation Authority (MTA) and ZAR Realty in connection with the renovation of MTA headquarters. The charges had been brought following a joint investigation by the OLMS New York District Office and the FBI.
February 28th, 2003On February 28, 2003, in the United States District Court for the Western District of Pennsylvania, John Dorrier, former business agent of Operating Engineers Local 66, was sentenced to spend 12 months and 1 day in federal prison, pay restitution in the amount of $56,195, spend three years on supervised probation, and pay a $300 special assessment. Restitution in the amount of $1,000 each month becomes payable upon release from prison. Amended tax returns are to be filed with the IRS with the applicable fines and interest to be computed by the IRS. Dorrier pled guilty to embezzlement, forgery, and interfering with the administration of IRS laws on November 14, 2002, following a joint investigation by the OLMS Pittsburgh District Office and the IRS Criminal Investigative Division.
November 14th, 2002On November 14, 2002, in the United States District Court for the Western District of Pennsylvania, John L. Dorrier Jr., former business agent of Operating Engineers Local 66, pled guilty to three counts of a 10-count indictment charging him with embezzlement of union funds, forgery, and interference with the administration of Internal Revenue laws. Dorrier falsified 976 picket expense vouchers by completing them in the names of union members and others who had not done any picketing and approximately 104 fictitious picketers. Dorrier routinely obtained checks from the union and forged payee signature endorsements before depositing or cashing the checks into his personal bank account. Annually the checks to each fictitious picketer purposely totaled less than $600, a threshold amount that would have triggered the required filing of IRS Form 1099. Dorrier has agreed to make restitution to the union in the amount of $56,195.00 and to take responsibility for a tax loss to the Internal Revenue Service in an amount between $23,500.00 and $40,000.00. The charges were brought following a joint investigation by the OLMS Pittsburgh District Office and the Department of the Treasury Internal Revenue Service Criminal Investigation Division.
June 4th, 2002On June 4, 2002, in the United States District Court for the Eastern District of New York, Edward Carroll, vice president of 2 BW Development Corporation, pled guilty to an information charging him with obstruction of justice in violation of 18 U.S.C. 1503 and 3551. The charges were filed in connection with false information that he provided to a Federal grand jury. This prosecution resulted from a case relating to the April 16, 2002, indictment of seven individuals involved in a $10 million fraud against the Metropolitan Transportation Authority in the renovation of their new headquarters at 2 Broadway in lower Manhattan. The seven individuals included a developer, union officials from Operating Engineers Local 14, and members of Elevator Constructors, Local One, as well as two other individuals. This money was intended for vertical transportation costs relating to Elevator Constructors, Local One and Operating Engineers, Local 14 elevator operators. A substantial amount went to Frederick Contini, owner of 2BW Development, in the form of cash kickbacks for his participation in the scheme. Carroll, who was partners with Contini, submitted false invoices to the MTA from a subcontractor known as Links. These invoices purporting to be from Links totaled in excess of $13 million and were prepared by Carroll under the direction of Contini. When asked questions concerning the handling of Links invoices, Carroll misled the grand jury by leading it to believe that Links invoices had been handled like other invoices in the normal course of business. The charges were brought following a joint investigation by the OLMS New York District Office, the FBI, and the IRS.