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.
|March 25th, 2014||On 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, 2012||On 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. Wittâ€™s wife, Anita Witt, former Local 450 Financial Secretary and the committeeâ€™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 Wittâ€™s plea agreement. This investigation was conducted jointly with the Employee Benefits Security Administration.|
|October 26th, 2010||On 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.|
|April 7th, 2009||On April 7, 2009, in the United States District Court for the Eastern District of New York, Constantine Vafias, a contractor, was sentenced to three years probation, 300 hours of community service, forfeiture of $100,000, and ordered to pay $100,000 in restitution. An investigation concluded that Vafias was involved in a no-show job scheme associated with the 2 Broadway Project and Operating Engineers Local 14 (located in New York City, N.Y.). The sentencing follows an investigation by the OLMS New York District Office and the FBI.|
|December 18th, 2006||On 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.|
|March 24th, 2006||On March 24, 2006, in the United States District Court for the Western District of Tennessee, James Taylor Banks, Former Business Agent for Operating Engineers Local Union 369 in Memphis, Tennessee, was sentenced to two years probation and required to make restitution of $6,818.57 for embezzling union funds. The sentencing follows an investigation by the OLMS Nashville District Office.|
|May 24th, 2004||On May 24, 2004, in the United States District Court for the Eastern District of New York, Morris Diminno, former union representative of Operating Engineers Local 14, was sentenced to 70 months in prison for 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 was required to forfeit $800,000 in connection with the no-show job scheme at the Metropolitan Transit Authority (MTA) headquarters. Diminno and co-defendants were jointly and severally responsible for paying $7 million in restitution. The sentence 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.|
|February 28th, 2003||On 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 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.|