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
November 2nd, 2021	On November 2, 2021, in the United States District Court for the Northern District of California, Scott Wilson, former Director of Information Technology for Operating Engineers Local 3 (located in Alameda, Calif.), was sentenced to 60 months in prison followed by three years of supervised release. He was also ordered to pay $4,669,577 in restitution and a $100 special assessment. On July 6, 2021, Wilson pleaded guilty to one count of embezzlement from a labor organization, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS San Francisco-Seattle District Office, the FBI, and the Department of Labors Office of Inspector General.
July 6th, 2021	On July 6, 2021, in the United States District Court for the Northern District of California, Scott Wilson, former Director of Information and Technology for Operating Engineers Local 3 (located in Alameda, Calif.), pleaded guilty to one count of embezzlement of union assets, in violation of 29 U.S.C. 501(c). The guilty plea follows an investigation by the OLMS San Francisco-Seattle District Office.
June 1st, 2021	On June 1, 2021, in the United States District Court for the Northern District of California, Scott Wilson, former Information Technology Director for International Union of Operating Engineers (IUOE) Local 3 (located in Alameda, Calif.), was charged in a one-count information with embezzlement of labor organization assets, in violation of 29 U.S.C. 501(c). The charge follows a joint investigation conducted by the OLMS Seattle-San Francisco District Office, the Federal Bureau of Investigation, and the Department of Labors Office of Inspector General.
May 17th, 2019	On May 17, 2019, in the United States District Court for the Western District of Tennessee, Caroline Kelly Phelps, former office secretary of International Union of Operating Engineers (IUOE) Local 369 (located in Cordova, Tenn.), was sentenced to three years of probation and ordered to pay restitution totaling $36,823 and a $100 special assessment. On February 7, 2019, Phelps pleaded guilty to one count of embezzlement, in violation of 29 U.S.C. 501(c). The sentencing follow an investigation by the OLMS Atlanta-Nashville District Office.
February 7th, 2019	On February 7, 2019, in the United States District Court for the Western District of Tennessee, Caroline Kelly Phelps, former office secretary of International Union of Operating Engineers (IUOE) Local 369 (located in Cordova, Tenn.), pleaded guilty to one count of embezzlement of union funds totaling approximately $40,000, in violation of 29 U.S.C. 501(c). The guilty plea follows an investigation by the OLMS Atlanta-Nashville 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.
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, 2013	On October 1, 2013, 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 charged in an information with embezzlement of union funds, in violation of 29 U.S.C. 501(c). The charge follows an investigation by the OLMS Denver 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. 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.
May 27th, 2010	On 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.
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.
August 8th, 2006	On 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 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.
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.
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.
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 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.