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
April 14th, 2014	On April 14, 2014, in the United States District Court for the District of Colorado, James Edwin Hedges III, former Treasurer of United Transportation Union (UTU) Local 201 (located in Trinidad, Colo.), was sentenced to three years of probation and was ordered to pay $16,205 in restitution. On February 24, 2014, Hedges pled guilty to a three-count information charging him with falsifying annual labor union financial reports, in violation of 29 U.S.C. 439(b). The sentencing follows an investigation by the OLMS Denver-St. Louis District Office.
October 28th, 2013	On October 28, 2013, in the United States District Court for the Northern District of Ohio, Western Division, Michael Zaborski, former Secretary Treasurer for the United Transportation Union (UTU) Local 1962 (located in Fremont, Ohio), was sentenced to five years of probation and was ordered to pay the outstanding restitution in the amount of $39,829. On June 19, 2013, Zaborski pled guilty to one count of embezzlement in the amount of $41,226, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Cincinnati-Cleveland District Office.
April 10th, 2013	On April 10, 2013, in the United States District Court for the Western District of New York, Joseph Grygorcewicz, former Secretary-Treasurer of United Transportation Union (UTU) Local 1566 (located in Tonawanda, N.Y.), was sentenced to three years of probation and ordered to make full restitution and continue to undergo counseling for his gambling addiction. On November 29, 2012, Grygorcewicz pled guilty to embezzling $39,990 from the union, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Buffalo District Office.
February 1st, 2013	On February 1, 2013, Lawrence E. Minas, former General Chairman for United Transportation Union (UTU) General Committee of Adjustment 449 in Munster, Indiana, was sentenced to six months of home detention and was ordered to pay 10% of his monthly income in restitution. In September 2012, Minas pled guilty to embezzling union funds in the amount of $71,160. The investigation discovered the embezzlement and false records relative to unauthorized salary reimbursements, per diem payments, and vacation reimbursements. Minas admitted guilt in a signed statement.
September 7th, 2012	On September 7, 2012, in the United States District Court for the Southern District of Texas, Vance Valentine, former Secretary-Treasurer of United Transportation Union (UTU) Local 524 (located in Willis, Tex.), was sentenced to one year of probation and was ordered to pay $1,287 in restitution and a $25 assessment. On January 26, 2012, Valentine pled guilty to one count of filing false union reports with the Department of Labor, in violation of 29 U.S.C. 439(b). The sentencing follows an investigation by the OLMS New Orleans District Office.
September 7th, 2012	On September 7, 2012, in the United States District Court for the Southern District of Texas, Sheila Valentine, spouse of Vance Valentine, former Secretary-Treasurer of United Transportation Union (UTU) Local 524 (located in Willis, Tex.), was sentenced to one year of probation and was ordered to pay $1,287 in restitution and a $100 assessment. On January 23, 2012, Valentine 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 New Orleans District Office.
August 10th, 2012	On August 10, 2012, in the United States District Court for the Eastern District of Michigan, Paul Morales, former Treasurer of United Transportation Union (UTU) Local 1477 (located in Taylor, Mich.), was sentenced to three years of probation (including the completion of 15 hours per week of community service for the first year of probation) and was ordered to pay $25,329.39 in restitution and a $25 special assessment. On April 18, 2012, Morales pled guilty to one count of willfully failing to maintain union records of unauthorized cash withdrawals totaling $22,829.39, in violation of 29 U.S.C. 439(a). The sentencing follows an investigation by the OLMS Detroit District Office.
March 6th, 2012	On March 6, 2012, in the United States District Court for the District of New Jersey, Kevin McKnight, former Secretary-Treasurer of United Transportation Union (UTU) Local 1390 (located in Laurence Harbor, N.J.), was sentenced to four months of community confinement, four months of home confinement, and three years of probation. In addition, McKnight was ordered to pay $54,603.52 in restitution and a $100 special assessment. McKnight had previously paid approximately $16,000 in restitution. In November 2011, McKnight pled guilty to a one-count information charging him with embezzling approximately $68,000 in union funds, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS New York District Office.
February 17th, 2012	On February 17, 2012, in the United States District Court for the Middle District of Pennsylvania in Harrisburg, Brandon Borders, former Secretary-Treasurer of United Transportation Union (UTU) Local 997 (located in Camp Hill, Pa.), was sentenced to eight months of home confinement followed by 24 months of probation. He was also ordered to pay a fine of $2,000 and a $100 special assessment. Borders had already paid restitution of $12,551.16. On September 23, 2011, Borders pled guilty to one count of embezzlement. The sentencing follows an investigation by the OLMS Philadelphia District Office.
February 9th, 2012	On February 9, 2012, in the United States District Court for the District of New Jersey, Jose M. Rivera, former President and Treasurer of United Transportation Union (UTU) Local 710 (located in Newark, N.J.), was sentenced to three years of probation and was ordered to pay the remaining balance of restitution. The sentencing follows a guilty plea by Rivera regarding one count of accepting an illegal loan as an officer from a union over $14,000. The sentencing follows an investigation by the OLMS New York District Office.
November 17th, 2011	On November 17, 2011, in the United States District Court for the District of New Jersey, Kevin McKnight, former Secretary-Treasurer of United Transportation Union (UTU) Local 1390 (located in Laurence Harbor, N.J.), was charged in a one-count information with embezzling union funds in the amount of approximately $68,000, in violation of 29 U.S.C. 501(c). McKnight then pled guilty to the charge. While Secretary-Treasurer, he withdrew approximately $68,000 from the union’s bank account for his personal use. The sentencing is scheduled for February 28, 2012. The charge and guilty plea follow an investigation by the OLMS New York District Office.
November 14th, 2011	On November 14, 2011, in the United States District Court for the Western District of Missouri, Charles McDaniel, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment (GCA) 341 (located in St. Joseph, Mo.), was sentenced to five years probation and was ordered to pay $68,365.62 in restitution and a $100 special assessment. On April 12, 2011, McDaniel pled guilty to one count of wire fraud, in violation of 18 U.S.C. 1343. The sentencing follows an investigation by the OLMS St. Louis District Office.
September 23rd, 2011	On September 23, 2011, in the United States District Court for the Middle District of Pennsylvania, Brandon Borders, former Secretary-Treasurer of United Transportation Union (UTU) Local 997 (located in Camp Hill, Pa.), pled guilty to one count of embezzlement totaling $12,551.16. Borders was indicted for the same charge on July 11, 2011. The sentencing is scheduled for January 3, 2012. The plea follows an investigation by the OLMS Philadelphia District Office.
July 13th, 2011	On July 13, 2011, in the United States District Court for New Jersey, Jose Rivera, former President/Secretary-Treasurer of United Transportation Union (UTU) Local 710, a union representing Coach bus drivers in Orange, Newark, and Elizabeth, New Jersey, pled guilty to an information to taking unauthorized loans in excess of $2,000, in violation of 29 U.S.C. 503(a) and (c). Rivera’s sentencing is scheduled for October 2011. The guilty plea follows an investigation by the OLMS New York District Office.
February 4th, 2011	On February 4, 2011, in the United States District Court for the Central District of Illinois, Kevin T. Hunt, former Secretary-Treasurer for United Transportation Union (UTU) Local 198 (located in Peoria, Ill.), was sentenced to one year probation. He was also ordered to pay a fine of $500 and a $25 special assessment. On October 26, 2010, Hunt pled guilty to a one-count information for filing a false LM report. The sentencing follows an investigation by the OLMS Chicago District Office.
July 20th, 2010	On July 20, 2010, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman, United Transportation Union General Committee of Adjustment 325 (located in Duluth, Minn.), was sentenced to three months incarceration followed by two years supervised release, and ordered to pay restitution to the UTU GCA 325 in the amount of $16,200, restitution to the Railroad Retirement Board in the amount of $32,778.39, a fine of $30,000, and a $100 special assessment. On November 30, 2009, Kobe pled guilty to one count of embezzling union funds in the amount of $16,200. The sentencing follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the Railroad Retirement Board’s Office of the Inspector General.
October 15th, 2009	On October 15, 2009, in the United States District Court for the Northern District of Alabama, Christopher Scott Tidwell, former Secretary-Treasurer of Transportation Union Ind, Local 1261 (located in Lineville, Ala.), was sentenced to 60 months probation, including six months home confinement with electronic monitoring, and ordered to pay restitution in the amount of $22,264.08 and a $100 special assessment. On June 30, 2009, Tidwell had pled guilty to one count of embezzlement of union funds in the same amount and one count of forfeiture. The sentencing follows an investigation by the OLMS Birmingham Resident Investigator Office.
October 13th, 2009	On October 13, 2009, in the United States District Court for the Northern District of Ohio, Michael Kelly, former Treasurer of Untied Transportation Union (UTU) Local 586 (located in Lexington, Ohio), was sentenced to one year and a day confinement, three years supervised release, and ordered to make full restitution. On July 30, 2009, Kelly pled guilty to one count of embezzling union funds in the amount of $97,970.71. The sentencing follows an investigation by the OLMS Cleveland District Office.
February 4th, 2009	On February 4, 2009, in the United States District Court for the Northern District of Illinois, Keith H. Cook, former Secretary Treasurer of United Transportation Union (UTU) Local 620 (located in Chicago, Ill.), was sentenced to twelve months and one day imprisonment for embezzlement of union funds, ten months imprisonment for making a false entry in union records, three years supervised release for embezzlement of union funds, and one year supervised release for making a false entry in union records (to run concurrently). He also was ordered to make restitution of $47,079.21 and pay a $125 assessment. On September 15, 2008, a jury found Cook guilty of one count of embezzling union funds and one count of making a false entry in union records. The sentencing follows a joint investigation by the OLMS Chicago District Office and the Department of Labor's Office of the Inspector General.
July 27th, 2007	On July 27, 2007, in the United States District Court for the District of Maryland, Walter Fisher, former Secretary-Treasurer of United Transportation Union Local 1949, was sentenced to six months in prison to be followed by six months of home detention and two years probation. Fisher was ordered to attend drug and alcohol counseling, gambling counseling and financial management counseling. Fisher was also ordered to pay $45,000 restitution to the union. On May 3, 2007, Fisher pled guilty to one count of embezzling more than $30,000, but less than $70,000, in union funds. The sentence follows an investigation by the OLMS Washington District Office.
April 25th, 2006	On April 25, 2006, in the United States District Court for the Western District of North Carolina, James Shannon, former President of the United Transportation Union, Local 1715, was sentenced to three years probation and required to make restitution of $1,100 for making a false entry in union records. The sentencing follows an investigation by the OLMS Nashville District Office.
January 27th, 2006	On January 27, 2006, in the United States District Court for the Eastern District of Wisconsin, Michael C. Crogan, former Secretary-Treasurer for United Transportation Union Local 1382, was sentenced to five months imprisonment, 150 days home confinement, and three years supervised release. On November 2, 2005, Crogan pled guilty to a one-count information charging him with embezzling union funds totaling $31,700, for which he had already made full restitution. The sentencing follows an investigation by the OLMS Milwaukee District Office.
August 1st, 2005	On August 1, 2005, in the United States District Court for the District of Kansas, Daniel Van Becelaere, former financial secretary of Local 763, United Transportation Union, was sentenced to 15 months in prison, two years of supervised release, and ordered to make restitution of $36,169.84 for embezzlement. On May 11, 2005, Van Becelaere pled guilty to embezzling union funds following an investigation by the OLMS St. Louis District Office.
July 9th, 2004	On July 9, 2004, in the United States District Court for the Southern District of Texas, Charles Little, former president of the United Transportation Union, was sentenced to two years imprisonment to be followed by three years supervised probation. He was also ordered to pay $100,000 in criminal forfeiture and a $10,000 fine. Little pled guilty to Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy on January 23, 2004, following a joint investigation by the OLMS New Orleans District Office, the FBI, and the Department of Labor's Office of Inspector General.
July 9th, 2004	On July 9, 2004, in the United States District Court for the Southern District of Texas, Byron Boyd, former president of the United Transportation Union, was sentenced to two years imprisonment to be followed by three years supervised probation. He was also ordered to pay $100,000 in criminal forfeiture and a $10,000 fine. Boyd pled guilty to RICO conspiracy on March 11, 2004, following a joint investigation by the OLMS New Orleans District Office, the FBI, and the Department of Labor's Office of Inspector General.
July 9th, 2004	On July 9, 2004, in the United States District Court for the Southern District of Texas, Ralph Dennis, former Director of Insurance for the United Transportation Union Insurance Association, was sentenced to three years supervised probation. He was also ordered to pay $45,000 in criminal forfeiture and a $2,000 fine. Dennis pled guilty to RICO conspiracy on October 2, 2003, following a joint investigation by the OLMS New Orleans District Office, the FBI, and the Department of Labor's Office of Inspector General.
July 9th, 2004	On July 9, 2004, in the United States District Court for the Southern District of Texas, John Rookard, former field representative for the United Transportation Union Insurance Association and project coordinator during the administration of Byron Boyd, was sentenced to three years probation with the first six months under home confinement with electronic monitoring. He was also ordered to pay $45,000 in criminal forfeiture. Rookard pled guilty to RICO conspiracy on March 10, 2004, following a joint investigation by the OLMS New Orleans District Office, the FBI, and the Department of Labor's Office of Inspector General.
September 5th, 2003	On September 5, 2003, in the United States District Court for the Southern District of Texas, Neil Babineaux, former assistant to the assistant vice president of the United Transportation Union, pled guilty to a charge of criminal contempt. He had been indicted on April 3, 2003, on charges of obstruction of justice and making false declarations to a federal grand jury. Following the guilty plea, Babineaux was sentenced to six months home confinement, two years probation and a $3,000 fine. These charges follow a joint investigation by the OLMS New Orleans District Office, the Department of Labor's Office of Inspector General and the FBI.
July 10th, 2003	On July 10, 2003, in the United States District Court for the District of Montana, Frank Darvis, former treasurer of the United Transportation Union, Local 891, was sentenced to 18-months probation and ordered to pay a $100 fine. Darvis was indicted for embezzling $29,865 in union funds on January 8, 2003, and pled guilty to the charges on April 9, 2003. Darvis previously made full restitution. The charges were brought following an investigation by the OLMS Denver District Office.