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
February 15th, 2018	On February 15, 2018, in the United States District Court for the Eastern District of Virginia, Tamika Bullock, former Treasurer of International Brotherhood of Boilermakers Local 684 (located in Chesapeake, Va.), was sentenced to 14 months in prison and three years of supervised release. Bullock was also ordered to pay $24,600 in restitution. On November 14, 2017, Bullock pleaded guilty to one count of embezzling $24,600 in union funds, in violation of 29 U.S.C 501(c). The sentencing follows an investigation by the OLMS Washington District Office.
February 12th, 2018	On February 12, 2018, in the United States District Court for the Western District of Pennsylvania, Raymond C. Ventrone, former Business Manager of International Brotherhood of Boilermakers Local 154 (located in Pittsburgh, Pa.) was sentenced to 41 months incarceration followed by 3 years of supervised released and ordered to pay $2,391,183 in restitution to Boilermakers Local 154 and $500,000 restitution to Zurich Surety for embezzlement of union funds. Additionally, he was ordered to pay $223,881 to the Internal Revenue Service for tax evasion. On September 14, 2017, Ventrone pleaded guilty to one count of embezzling union funds in violation of 29 U.S.C. 501(c) and one count of tax evasion in violation of 26 U.S.C. 7201. The sentencing follows an investigation of the OLMS Philadelphia-Pittsburgh District Office along with the FBI, DOL-OIG, and the IRS.
November 14th, 2017	On November 14, 2017, in the United States District Court for the Eastern District of Virginia, Norfolk Division, Tamika Bullock, former Secretary-Treasurer of International Brotherhood of Boilermakers Local 684 (located in Chesapeake, Va.), pled guilty to one count of embezzlement from a labor organization for embezzling $24,600 from the union, in violation of 29 U.S.C. 501(c). The guilty plea follows an investigation by the OLMS Washington District Office.
September 14th, 2017	On September 14, 2017, in the United States District Court for the Western District of Pennsylvania, Raymond C. Ventrone, former business manager of International Brotherhood of Boilermakers Local 154 (located in Pittsburgh, Pa.) pled guilty to one count of embezzling union funds in the approximate amount of $1,499,000, in violation of 29 U.S.C. 501(c), and one count of tax evasion in the approximate amount of $265,343, in violation of 26 U.S.C. 7201. The guilty plea follows a joint investigation by the OLMS Philadelphia-Pittsburgh District Office, Department of LaborÄôs Office of Inspector General, the Internal Revenue Service, and the Federal Bureau of Investigation.
June 21st, 2017	On June 21, 2017, in the United States District Court for the Eastern District of Virginia, Norfolk Division, Tamika Bullock, former Secretary-Treasurer of International Brotherhood of Boilermakers Local 684 (located in Chesapeake, Va.), was indicted on one count of embezzling $24,600 from a labor union, in violation of 29 U.S.C. 501(c). The indictment follows an investigation by the OLMS Washington District Office.
April 24th, 2017	On April 24, 2017, in the United States District Court for the Western District of Pennsylvania, Raymond C. Ventrone, former business manager for International Brotherhood of Boilermakers Local 154 (located in Pittsburgh, Pa.), was charged in a six-count information for one count of embezzling approximately $1,499,000 in union funds, in violation of 29 U.S.C. 501(c), and five counts of income tax evasion, in violation of 26 U.S.C. 7201. The charges follow a joint investigation by the OLMS Philadelphia-Pittsburgh District Office, Department of LaborÄôs Office of Inspector General, the Internal Revenue Service, and the Federal Bureau of Investigation.
March 29th, 2017	On March 29, 2017, in the United States District Court for the Western District of Virginia, Abingdon Division, William Dixon, former Secretary-Treasurer of International Brotherhood of Boilermakers Local 2014 (located in Lebanon, Va.), was sentenced to two years of probation and was ordered to undergo counseling and drug treatment. Dixon was also ordered to pay the remaining restitution of $3,408. Dixon previously paid $930. On December 12, 2016, Dixon pled guilty to one count of embezzlement from a labor organization for embezzling $4,338 from the union, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Washington District Office.
December 12th, 2016	On December 12, 2016, in the United States District Court for the Western District of Virginia, Abingdon Division, William Dixon, former Secretary-Treasurer of International Brotherhood of Boilermakers Local 2014 (located in Lebanon, Va.), was charged in a criminal information with one count of embezzlement from a labor organization, in violation of 29 U.S.C. 501(c), for embezzling $4,338 from the union. He then pled guilty to the charge. The charge and guilty plea follow an investigation by the OLMS Washington District Office.
May 14th, 2014	On May 14, 2014, in the United States District Court for the Northern District of Indiana, Karen Stone, former bookkeeper for Boilermakers Local Lodge 374 (located in Hammond, Ind.), was sentenced to one year of probation and was ordered to pay $9,170 in restitution and a $100 assessment. On February 7, 2014, Stone pled guilty to one count of embezzling union funds, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Chicago District Office.
February 7th, 2014	On February 7, 2014, in the United States District Court of the Northern District of Indiana, Karen Stone, former bookkeeper for Boilermakers Local Lodge 374 (located in Hammond, Ind.), was charged in an information with embezzlement of union funds, in violation of 29 U.S.C. 501(c). On the same date, Stone pled guilty to the embezzlement charge in the amount of $9,169. The information and plea follow an investigation by the OLMS Chicago District Office and the Department of Labor’s Office of Inspector General.
May 12th, 2010	On May 12, 2010, in the United States District Court for the Eastern District of Wisconsin, Warren Demmin, former President of Boilermakers Local Lodge 449 (located in Sturgeon Bay, Wis.), was sentenced to four months incarceration, four months electronic monitoring, three years probation, and was ordered to pay a $100 special assessment. Demmin previously made restitution in the amount of $14,045.48. On February 11, 2010, Demmin pled guilty to embezzling union funds in the amount of $169.12. The sentencing follows an investigation by the OLMS Milwaukee District Office.
February 11th, 2010	On February 11, 2010, in the United States District Court for the Eastern District of Wisconsin, Warren Demmin, former President of Boilermakers Local Lodge 449 (located in Sturgeon Bay, Wis.), plead guilty to one count of embezzling union funds in the amount of $169.12. On November 17, 2009, Demmin had been indicted on four counts of embezzling union funds in the amount of $681.44. The plea follows an investigation by the OLMS Milwaukee District Office.
December 8th, 2009	On December 8, 2009, in the United States District Court for the Northern District of Iowa, Thomas Jon Witham, former Financial Secretary of the International Brotherhood of Boilermakers Local 106-D (located in Mason City, Iowa) was sentenced to 21 months in prison for one count of embezzlement of union funds in the amount of $52,037.19. On September 2, 2009, Witham pled guilty to one count of embezzling union funds in the same amount. The sentencing follows an investigation by the OLMS St. Louis District Office.
November 17th, 2009	On November 17, 2009, in the United States District Court for the Eastern District of Wisconsin, Warren Demmin, former Secretary-Treasurer of Boilermakers Local Lodge 449 (located in Sturgeon Bay, Wis.), was indicted on four counts of embezzling union funds in the amount of $681.44. The indictment follows an investigation by the OLMS Milwaukee District Office.
September 2nd, 2009	On September 2, 2009, in the United States District Court for the Northern District of Iowa, Thomas Jon Witham, former Financial Secretary of the International Brotherhood of Boilermakers Local 106-D (located in Mason City, Iowa), pled guilty to one count of embezzlement of union funds in the amount of $52,037.19. The plea follows an investigation by the OLMS St. Louis District Office.
July 29th, 2009	On July 29, 2009, in the United States District Court for the Northern District of Iowa, a sealed indictment was opened charging Thomas Jon Witham, former Secretary Treasurer of International Brotherhood of Boilermakers Local 106-D (located in Mason City, Iowa) with one count of embezzlement of union funds in the amount of $52,037.19. The charge follows an investigation by the OLMS St. Louis District Office.
May 6th, 2009	On May 6, 2009, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Union Lodge 687 (located in Charleston Heights, S.C.), was sentenced to 12 months and 1 day imprisonment, three years supervised release and was ordered to pay a $100 fine. Johnson was also ordered to make restitution in the amount of $46,653. He had previously made restitution in the amount of $55,866. On January 5, 2009, Johnson had pled guilty to one count of embezzling union funds in the amount of $102,519. The sentencing follows an investigation by the OLMS Atlanta District Office.
January 5th, 2009	On January 5, 2009, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Lodge 687 (located in Charleston Heights, S.C.), pled guilty to one count of embezzling union funds in the amount of $102,519. On September 10, 2008, Johnson was charged with embezzling union funds in the same amount. The plea follows an investigation by the OLMS Atlanta District Office.
September 10th, 2008	On September 10, 2008, in the United States District Court for the District of South Carolina, Joseph Michael Johnson, former Secretary-Treasurer of Boilermakers Union Lodge 687 (located in Charleston Heights, S.C.), was indicted on one count of embezzling union funds in the amount of $102,519. The indictment follows an investigation by the OLMS Atlanta District Office.
August 7th, 2008	On August 7, 2008, in the United States District Court for the Middle District of Georgia, James E. Kay, former President of Boilermakers Local Lodge 523 (located in Sandersville, Ga.), was sentenced to six months home confinement, four years of supervised released, and a $5,000 fine. Also Kay was ordered to make restitution in the amount of $5,642.41. Kay previously made restitution in the amount of approximately $11,000. On April 9, 2008, Kay pled guilty to one count of embezzling union funds in the amount of $16, 979.36. The sentencing follows an investigation by the OLMS Atlanta District Office.
February 29th, 2008	On February 29, 2008, in the United States District Court for the Northern District of Ohio, Frances Pagan, former President of Boilermakers Local Lodge 3M, pled guilty to one count of embezzling union funds in the amount of $17,415. On February 26, 2008, an information was filed against Pagan charging him with embezzling union funds in the same amount. The plea follows an investigation by the OLMS Cleveland District Office.
February 6th, 2008	On February 6, 2008, in the United States District Court for the Northern District of Ohio, an information was filed against Francis Pagan, former President of Boilermakers Local Lodge 3M, charging him with embezzling $17,415 in union funds. The charge follows an investigation by the OLMS Cleveland District Office.
January 16th, 2008	On January 16, 2008, in the United States District Court for the Middle District of Georgia, James Eric Kay, former President of Boilermakers Local Lodge 523, was indicted on 43 counts of embezzling union funds in the approximate amount of $16,979. The indictment follows an investigation by the OLMS Atlanta District Office.
September 20th, 2007	On September 20, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Klope, former Financial Secretary of Boilermakers Lodge 8-S, was sentenced to three years probation for embezzling union funds in the amount of $25,794. Under the special conditions of his probation, Klope is required to spend the first six months on home detention and perform 100 hours of public service. On June 13, 2007, Klope pled guilty to embezzling union funds in the same amount; Klope had previously paid full restitution to the union. The sentencing follows an investigation by the OLMS St. Louis District Office.
June 13th, 2007	On June 13, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Klope, former Financial Secretary of Boilermakers Lodge 8-S, pled guilty to one count of embezzling union funds. On January 11, 2007, Klope was charged with embezzling union funds in the amount of $25,794. The plea follows an investigation by the OLMS St. Louis District Office.
May 9th, 2007	On May 9, 2007, in the United States District Court for the Western District of Pennsylvania, Stephen A. Kostelac, former Secretary-Treasurer of Boilermakers Local 906, was sentenced to six months home detention, five years probation, a $100 special assessment, and ordered to pay restitution in the amount of $26,079.38. On February 7, 2007, Kostelac pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS Pittsburgh District Office.
February 7th, 2007	On February 7, 2007, in the United States District Court for the Western District of Pennsylvania, Stephen A. Kostelac, former Secretary-Treasurer for Boilermakers Local 906, pled guilty to one count of embezzling union funds. On November 29, 2006, Kostelac was charged in a 16-count indictment with embezzling $13,748.22 in union funds. The guilty plea follows an investigation by the OLMS Pittsburgh District Office.
January 11th, 2007	On January 11, 2007, in the United States District Court for the Southern District of Illinois, Jeffrey Klope, former Financial Secretary for Boilermakers Lodge 8-S, was indicted on one count of embezzling union funds in the amount of $25,794. The indictment follows an investigation by the OLMS St. Louis District Office.
November 29th, 2006	On November 29, 2006, in the United States District Court for the Western District of Pennsylvania, Stephen A. Kostelac, former Secretary-Treasurer for Boilermakers Local Lodge 906, was charged with 16 counts of embezzling union funds in the amount of $13,748.22. The charges follow an investigation by the OLMS Pittsburgh District Office.
May 26th, 2006	On May 26, 2006, in the United States District Court for the District of Kansas, Vernon Keith Reed, former Fund Administrator for the International Brotherhood of Boilermakers, and Richard M. Taylor, owner of Deramus Street Properties, Brothers Mechanical Corporation, International Fabricators and Erectors Inc., and Woodley-Griggs Boiler Repair, were charged with nine counts of embezzlement from an employee benefit plan. The indictment alleges that Reed and Taylor conspired to embezzle approximately $800,000 from the Boilermakers Health and Welfare Fund. The charges follow a joint investigation by the OLMS St. Louis District Office, the Employee Benefits Security Administration, and the Department of Labor's Office of Inspector General.
April 19th, 2006	On April 19, 2006, in the United States District Court for the Southern District of Illinois, Dennis Foster, former Secretary-Treasurer for Boilermakers Lodge S-60, pled guilty to one count of embezzling $5,680.27 in union funds. The guilty plea follows an investigation by the OLMS St. Louis District Office.
February 22nd, 2006	On February 22, 2006, in the United States District Court for the Southern District of Illinois, Dennis Foster, former Secretary-Treasurer for Boilermakers Lodge S-60, was indicted on one count of embezzling union funds totaling $5,680.20. The indictment follows an investigation by the OLMS St. Louis District 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.
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.
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.
October 29th, 2002	On October 29, 2002, in the United States District Court for the Middle District of North Carolina, Martha Davidson, the wife of Clyde Davidson, former secretary-treasurer of Boilermakers Lodge 31, was indicted. The 24-count indictment charges Mrs. Davidson with 12 counts of embezzling union funds and 12 counts of making, uttering and possessing a forged security belonging to Boilermakers Lodge 31. The combined 24 counts charge Mrs. Davidson with misappropriating $13,917.74 in union funds. Mrs. Davidson gained access to the lodge funds while performing bookkeeping duties for her husband. The charges were brought following an investigation by the OLMS Nashville District Office.
September 6th, 2002	On September 6, 2002, in the United States District Court for the Eastern District of Wisconsin, David Dobry, former secretary-treasurer of Boilermakers Lodge 177, was sentenced to five months imprisonment followed by five months of home detention followed by three years of supervision. He was also ordered to pay restitution in the amount of $61,510. He pled guilty to embezzling $61,510 in union funds on July 2, 2002, following an investigation by the OLMS Milwaukee District Office.
July 2nd, 2002	On July 2, 2002, in the United States District Court for the Eastern District of Wisconsin, David Dobry, former secretary-treasurer of Boilermakers Lodge 177, pled guilty to one count of embezzling $61,510 in union funds. He had been indicted on February 5, 2002, following an investigation by the OLMS Milwaukee District Office.
February 5th, 2002	On February 5, 2002, in the United States District Court for the Eastern District of Wisconsin, David Dobry, former secretary-treasurer of Boilermakers Lodge 177, was indicted on one count of embezzling $61,510 in union funds, one count of filing a false report, and one count of destruction of union records. The charges were brought following an investigation by the OLMS Milwaukee District Office.