Indictments

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
November 26th, 2019	On November 26, 2019, in United States District Court for the District Of New Mexico, Jessica Pangburn, former office manager for Operating Engineers Local 953 (located in Albuquerque, N.M.), waived an indictment and pled guilty to one count of wire fraud, in violation of 18 USC 1343. The plea follows an investigation by the OLMS Denver-St. Louis District Office.
October 18th, 2018	On October 18, 2018, in the United States District Court for the Western District of Tennessee, Caroline Kelly Phelps, former office secretary of Operating Engineers International Union (OEIU) Local 369 (located in Cordova, Tenn.), was indicted on one count of embezzlement of union funds totaling approximately $40,000, in violation of 29 U.S.C. 501(c). The charge follows an investigation by the OLMS Atlanta-Nashville District Office.
December 16th, 2015	On December 16, 2015, in the United States District Court for the Eastern District of Michigan, John Hamilton, former business manager of International Union of Operating Engineers (IUOE) Local 324 (located in Bloomfield Hills, Mich.), was charged in a nine-count indictment with one count of interference with commerce by extortion and one count of conspiracy to commit extortion (18 U.S.C. 1951); one count of attempted structuring of financial transactions (31 U.S.C. 5324(a)(3)); one count of laundering of monetary instruments (18 U.S.C. 1956(a)(1)(B)(i) & (B)(ii)); one count of embezzlement of union funds (29 U.S.C. 501(c)); two counts of conspiracy to embezzle union funds (18 U.S.C. 371 & 29 U.S.C. 501(c)); one count of conspiracy to commit theft from an employee or welfare benefit fund (18 U.S.C. 371 & 664); and one count of conspiracy to commit honest services mail and wire fraud (18 U.S.C. 1349). The charges follow 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.
December 16th, 2015	On December 16, 2015, in the United States District Court for the Eastern District of Michigan, John Hamilton, former business manager of International Union of Operating Engineers (IUOE) Local 324 (located in Bloomfield Hills, Mich.), was charged in a nine-count indictment with one count of interference with commerce by extortion and one count of conspiracy to commit extortion (18 U.S.C. 1951); one count of attempted structuring of financial transactions (31 U.S.C. 5324(a)(3)); one count of laundering of monetary instruments (18 U.S.C. 1956(a)(1)(B)(i) & (B)(ii)); one count of embezzlement of union funds (29 U.S.C. 501(c)); two counts of conspiracy to embezzle union funds (18 U.S.C. 371 & 29 U.S.C. 501(c)); one count of conspiracy to commit theft from an employee or welfare benefit fund (18 U.S.C. 371 & 664); and one count of conspiracy to commit honest services mail and wire fraud (18 U.S.C. 1349). The charges follow a joint investigation by the OLMS Detroit-Milwaukee District Office, the Department of LaborÄôs Office of Inspector General, the Employee Benefits Security Administration, the Federal Bureau of Investigation, and the Internal Revenue Service.
July 8th, 2011	On July 8, 2011, in the United States District Court for the Southern District of Texas, an indictment was unsealed upon the arrest of Ronald Wayne Witt, former Business Manager of Operating Engineers Local 450 (located in Houston, Tex.) and a former Trustee of Local 450’s Apprenticeship Committee (located in Alvin, Tex.), and Anita Witt, former Financial Secretary of Local 450 and Coordinator of Local 450’s Apprenticeship Committee. They were indicted for conspiracy and theft of labor union funds and apprenticeship funds from May 2007 until April 2009, totaling no less than $150,273.36. The charges and arrests follow a joint investigation conducted by the OLMS Houston Resident Investigator Office and the Employee Benefits Security Administration.
May 3rd, 2006	On May 3, 2006, in the United States District Court for the Northern District of Ohio, Boni Segura, former bookkeeper for the International Union of Operating Engineers (IUOE) Local 18, was indicted on one count of embezzling union funds in the amount of $5,729.20. The indictment follows a joint investigation by the OLMS Cleveland District Office and the Department of Labor's Office of Inspector General.
August 16th, 2005	On August 16, 2005, in the United States District Court for the Western District of Tennessee, James Taylor Banks, former Business Agent of Operating Engineers Local 369, was indicted on one count of embezzling union funds in the amount of $6,593. The indictment follows an investigation by the OLMS Nashville District Office.
May 7th, 2004	On 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, 2003	On 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, 2003	On 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, 2003	On 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.
November 22nd, 2002	On November 22, 2002, Edward Carroll, a prominent figure in construction development in New York City and the vice president of 2 BW Development, was sentenced in United States District Court for the Eastern District of New York for obstruction of justice. The charges were filed in connection with Carroll's appearance before a federal grand jury on December 11, 2001 and January 8, 2002, at which time he provided false information to the grand jury. Carroll was sentenced to five months in jail, five months home detention, and ordered to pay a $150.00 fine. Carroll also lost his architecture license as a result of the conviction. The investigation is in connection with the $10 million fraud case arising out of the renovation of the Metropolitan Transportation Authority's new headquarters. Individuals affiliated with Elevator Constructors Local One and Operating Engineers Local 14 were part of the indictment filed on April 16, 2002. The charges were brought following a joint investigation by the OLMS New York District Office and the FBI.
November 14th, 2002	On 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.
August 7th, 2002	On August 7, 2002, in the United States District Court for the Western District of Pennsylvania, John L. Dorrier, Jr., former business manager of Operating Engineers Local 66, was indicted for embezzlement of union funds, bank fraud, forgery, and interference with the administration of Internal Revenue Laws. The indictment alleged that he falsified 976 picket expense vouchers causing the union to issue checks that he cashed for a total of approximately $14,400 from August 8, 1997 through November 1998. He is alleged to have previously converted $37,295 in union funds to his own use from 1992 through August 7, 1997. The charges were brought following a joint investigation by the OLMS Pittsburgh District Office and the IRS Criminal Investigation Division.
June 4th, 2002	On 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.
April 16th, 2002	On April 16, 2002, in the United States District Court for the Eastern District of New York, Frederick Contini, the developer of the Metropolitan Transportation Authority's new headquarters at 2 Broadway in Manhattan; James Roemer, the treasurer of Operating Engineers Local 14; Morris Diminno, a Local 14 shop steward; Matthew Joseph Downey and David Coakley, members of Elevator Constructors Local 1; Constantine Vafias, a construction contractor; and John Vitiello were indicted on 55 counts relating to a $10,000,000 fraud against the Transportation Authority in connection with the renovation of its new headquarters. Charges in the indictment include interstate transportation of property or money obtained by fraud, wire fraud, mail fraud, unlawful payments to union officials and representatives, money laundering, obstruction of justice, witness tampering, and conspiracy. The charges were brought following a joint investigation by the OLMS New York District Office and the FBI.