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.
|July 12th, 2013||On July 12, 2013, in the United States District Court for the Western District of Washington, Sofia Gonzalez, former bookkeeper for Service Employees International Union (SEIU) Local 925 (located in Vancouver, Wash.), was sentenced to five years of probation and was ordered to pay restitution totaling $40,087. On April 25, 2013, Gonzalez pled guilty to a single count of embezzling labor union assets, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Seattle District Office.|
|January 28th, 2013||On January 28, 2013, in the United States District Court for the Central District of Los Angeles, a jury found Tyrone Ricky Freeman, former President of Service Employees International Union (SEIU) Locals 6434 and 434-B (located in Los Angeles, Calif.), guilty of four counts of mail fraud, in violation of 18 U.S.C. 1341; seven counts of embezzlement and/or theft of labor union assets, in violation of 29 U.S.C. 501(c); one count of making a false statement to a federally insured financial institution, in violation of 18 U.S.C 1014; and two counts of subscribing to a false tax return, in violation of 26 U.S.C. 7206(1) following a 10-day trial. On July 31, 2012, Freeman was indicted by a federal grand jury. The sentencing is scheduled for April 22, 2013. The guilty verdict follows a joint investigation by the OLMS Los Angeles District Office, Department of Laborâ€™s Office of Inspector General, Employee Benefits Security Administration, the Federal Bureau of Investigation, and the Internal Revenue Service.|
|September 24th, 2009||On September 24, 2009, in the United States District Court for the Central District of California, Alejandro Stephens, former President of the Service Employees International Union (SEIU) Local 660 (now Local 721) (located in Los Angeles, Calif.), pled guilty to two counts of mail fraud in connection with income fraudulently received from the Voter Improvement Program of the Los Angeles County Federation of Labor, and one count of filing a false tax return related to his failure to report $35,000 fraudulently received from this fund. The plea follows a joint investigation by the OLMS Los Angeles District Office and the Department of Laborâ€™s Office of Inspector General.|
|August 27th, 2009||On August 27, 2009, in the United States District Court for the Central District of California, Alejandro Stephens, former President of Service Employees International Union (SEIU) Local 660 (located in Los Angeles, Calif.), was charged in an information with three counts of mail fraud and filing a false tax return. Stephens allegedly received $52,000 in consulting payments, issued to himself and three other individuals, from the Los Angeles County Federation of Labor's Voter Improvement Program from February 2004 through April 2005, and filed a false 2004 income tax return by not reporting $35,000 in "other income" related to the payments. The charges follow a joint investigation by the OLMS Los Angeles District Office, Department of Labor's Office of the Inspector General, the FBI, and the IRS.|
|August 23rd, 2007||On August 23, 2007, in the United States District Court for the Eastern District of Wisconsin, Debra M. Timko and Danny L. Iverson, former Presidents of Service Employees Local 150, pled guilty to two counts of willful failure to maintain union records. Iverson and Timko failed to generate and maintain adequate and necessary records to establish that various payments made by Local 150 were proper under the union's policies. The payments included reimbursement of expenses incurred by Iverson and Timko that were not reimbursable due to their failure to comply with the union's policies. Under their plea agreements, Iverson and Timko agreed to make restitution totaling approximately $63,000. The guilty pleas follow an investigation by the OLMS Milwaukee District Office.|
|May 25th, 2007||On May 25, 2007, in Superior Court for the District of Columbia, Quentin Womack, former Secretary-Treasurer of Service Employees International Union, Conference of Firemen and Oilers Local 1050, pled guilty to one count of second degree theft and was subsequently sentenced to 120 days suspended sentence, nine months of supervised probation and ordered to make restitution. On March 28, 2007, Womack was charged with one count of First Degree Theft for embezzling $3,326.80 from the union. The plea and sentencing follow an investigation by the OLMS Washington District Office.|
|April 4th, 2006||On April 4, 2006, in the Philadelphia County Court of Common Pleas, Darnell Smith, former bookkeeper for Service Employees (SEIU) Local 36, plead guilty to theft by deception for embezzling approximately $70,420.00 in union funds. The guilty plea follows an investigation by the OLMS Philadelphia District Office.|
|July 11th, 2001||On July 11, 2001, in the United States District Court for the Northern District of New York, Nancy Groome, former secretary-treasurer of the Civil Service Employees Association, Local 316 of the State, County, and Municipal Employees, pled guilty to one count of embezzling $111,476.48 in union funds. The charges were brought following an investigation by the OLMS Buffalo District Office.|