Officials Sentenced

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
September 3rd, 2015	On September 3, 2015, in the United States District Court for the Western District of Missouri, Jeremy Bolte, former Treasurer of Brotherhood of Maintenance of Way Employees (BMWE) Lodge 800 (located in Kansas City, Mo.), was sentenced to five years of probation and was ordered to pay restitution of $12,500 and a special assessment of $1,000. On October 29, 2014, Bolte pled guilty to 10 counts of embezzling union funds, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Denver-St. Louis District Office.
May 22nd, 2014	On May 22, 2014, in the United States District Court for the Northern District of Indiana, J.D. Richey, former Secretary Treasurer of the Brotherhood of Maintenance of Way Employes Division (BMWED) of the International Brotherhood of Teamsters Local Lodge 3025 (located in Fort Wayne, Ind.), was sentenced to two years of probation and was ordered to pay restitution in the amount of $7,300. On February 21, 2014, Richey pled guilty to one count of embezzlement of union funds, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Chicago District Office.
February 19th, 2014	On February 19, 2014, in the United States District Court for the Northern District of Illinois, Joseph Hulstedt, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes (BMWE) Local Lodge 1046 (located in Oswego, Ill.), pled guilty to making a false entry in union records, in violation of 29 U.S.C. 439(c). Hulstedt was then sentenced to one year of probation and was ordered to pay a $1,000 fine. Hulstedt had previously paid full restitution in the amount of $6,836. The plea and sentencing follow an investigation by the OLMS Chicago District Office.
April 30th, 2013	On April 30, 2013, in the 111th District Court of Webb County, Texas, Manuel Luebbert, former Secretary Treasurer of Brotherhood of Maintenance of Way Employees Lodge 1563 (located in Laredo, Tex.), pled guilty to one count of misapplication of fiduciary property, in violation of Texas Penal Code 32.45. On the same date, Luebbert was sentenced to five years of probation, 200 hours of community service, and was ordered to pay $3,580.68 in restitution and attend an anti-theft class. The guilty plea and sentencing follow an investigation by the OLMS New Orleans District Office.
March 12th, 2013	On March 12, 2013, in the Superior Court of Washington, County of Pierce, Katrina Hall, a former Secretary-Treasurer for Maintenance of Way Employees Lodge 389 (located in Puyallup, Wash.) was sentenced to 30 days in jail, six months probation, fined $500, and was ordered to pay restitution totaling $10,995. Hall pled guilty to a single count of theft in the 1st degree in violation of WA RCW 9A.56.020 (1)(b)/9A.56.030 (1)(a). The sentencing follows an investigation by the OLMS Seattle District Office.
November 26th, 2012	On November 26, 2012, in the Adams County, Wisconsin Circuit Court, Randy G. Paulson, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes (BMWE) of the International Brotherhood of Teamsters Sub-Lodge 1125 (located in Adams, Wis.), was ordered to pay $264 in restitution, a $486 fine, and a $37.50 restitution surcharge by January 25, 2013. On the same date, Paulson entered a no contest plea to one count of theft in a business setting of less than $2,500. Paulson previously paid restitution totaling $2,245 prior to sentencing. The sentencing follows an investigation by the OLMS Milwaukee District Office.
January 9th, 2012	On January 9, 2012, in the United States District Court for the Southern District of West Virginia, Derrick George, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes (BMWE), IBT, Sub-Lodge 76 (located in Leon, W.Va.), was sentenced to three years of probation, including eight months of home confinement, and was ordered to pay restitution in the amount of $17,932.07. The sentencing follows an investigation by the OLMS Pittsburgh District Office and the Department of Labor’s Office of Inspector General.
August 5th, 2011	On August 5, 2011, in the United States District Court for the Western District of Arkansas, Michael J. Curry, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes Division (BMWED) of the International Brotherhood of Teamsters Lodge 1127 (located in Texarkana, Ark.), was sentenced to three years of supervised probation and was ordered to pay $6,996.55 in restitution. On April 15, 2011, Curry pled guilty to an information charging him with knowingly and willfully embezzling funds belonging to Lodge 1127 in the amount of $6,996.55. The sentencing follows an investigation by the OLMS Dallas District Office.
June 13th, 2011	On June 13, 2011, in the United States District Court for the Eastern District of Pennsylvania, Amar Ali, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employes (BMWE) of the International Brotherhood of Teamsters, Sub-Lodge 695 (located in Baltimore, Md.), was sentenced to two years of probation. Ali was also ordered to pay a $25 special assessment fee and a $500 fine. Ali previously made restitution in the amount of $1,986.29. On January 4, 2011, Ali pled guilty to a one-count information for failure to maintain union records, in violation of 29 U.S.C. 439(a)(b). The sentencing follows an investigation by the OLMS Philadelphia District Office.
February 11th, 2011	On February 11, 2011, in the United States District Court for the Northern District of Illinois, Frank Kmiec, former Secretary-Treasurer of Brotherhood of Maintenance of Way Employees Division (BMWED) Local 2857 (located in Genoa City, Wis.), was sentenced to one year probation with the first six months served in home confinement with electronic monitoring. He was also ordered to pay a special assessment of $25. On November 22, 2010, Kmiec pled guilty to making false entries in the local’s cash record book, check register, and quarterly audit reports thereby misrepresenting the balance of the local’s bank account. In pleading guilty, Kmiec admitted to embezzling approximately $19,461.39 in Local 2857 funds. The sentencing follows an investigation by the OLMS Chicago District Office.
July 13th, 2010	On July 13, 2010, in United States District Court for the District of Colorado, Peter Maisel Jr., former Treasurer of Brotherhood of Maintenance of Way Employees (BMWE) Local 1517 (located in Pueblo, Colo.), was sentenced to five years probation and ordered to pay restitution in the amount of $9,514.79. On April 14, 2010, Maisel pled guilty to one count of embezzling union funds. The sentencing follows an investigation by the OLMS Denver District Office.
September 15th, 2008	On September 15, 2008, in the Seventh District Court of Carbon County, Utah, Kathleene L. Bigham, the spouse of former Brotherhood of Maintenance of Way Employees Local 779 (located in Grand Junction, Col.) Secretary-Treasurer Alfred Bigham, pled guilty to theft of union funds in the amount of $14,280, and three counts of forgery. Subsequently, Bigham was ordered to pay $800 in fines and make additional restitution in the amount of $2,022.68. Bigham previously paid restitution in the amount of $12,258. Additional sentencing will be held in abeyance for a period of two years. On June 3, 2008, an information was filed charging Bigham with theft of union funds in the same amount, and three counts of forgery. The sentencing follows an investigation by the OLMS Denver District Office.
July 14th, 2003	On July 14, 2003, in the United States District Court for the Southern District of Mississippi, Willie Corbett, former Local Lodge Delegate of Maintenance of Way Employees Lodge 616, was sentenced to three years probation and fined $500. He was previously charged with falsifying union records on September 25, 2002, following an investigation by the OLMS New Orleans District Office. Corbett pled guilty to the charge on May 6, 2003.
May 23rd, 2002	On May 23, 2002, in the United States District Court for the District of Utah, Jill C. Gonzales, spouse of a former secretary-treasurer of Maintenance of Way Employees Local 1227, was sentenced to six months home confinement and 24 months probation (concurrent with the home confinement), and was ordered to make restitution of the balance of $27,861 from a total of $49,706.46. She had pled guilty to mail fraud on March 13, 2002, following an investigation by the OLMS Denver District Office.