criminal 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
August 3rd, 2021	On August 3, 2021, in the Bexar County Judicial District Court, Jeannette Simmons, former bookkeeper for the Sheet Metal, Air, Rail, and Transportation Union (SMART) Southwest Gulf Coast Regional Council (SWGCRC), located in San Antonio, Tex., was charged with one count of theft, one count of misapplication of fiduciary property, and one count of forgery in the aggregate amount greater than $30,000 and less than $150,000, in violation of Texas Codes 31.03, 32.45, and 32.21, respectively. The indictment follows an investigation by the OLMS Dallas-New Orleans District Office.
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.
May 1st, 2013	On May 1, 2013, in the United States District Court for the Northern District of Ohio, Western Division, Michael Zaborski, former Secretary-Treasurer for United Transportation Union (UTU) Local 1962 (located in Fremont, Ohio), was indicted on one count of embezzlement in the amount of $41,226.54. The charge follows an investigation by the OLMS Cleveland District Office.
March 7th, 2013	On March 7, 2013, in the 377th Judicial District Court of Victoria County, Larry Lanier Lacy, former Secretary-Treasurer for United Transportation Union (UTU) Local 1205 (located in League City, Tex.), was charged with one count of felony theft, in the amount of $64,110.03, and one count of felony misappropriation of fiduciary/financial property, in violation of Texas Statutes 31.03 and 32.45. The indictment follows an investigation by the OLMS New Orleans District Office.
September 11th, 2012	On September 11, 2012, in the United States District Court for the Northern District of Illinois, an information was filed charging Lawrence E. Minas, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment (GCA) 449 (located in Palos Heights, Ill.), with one count of embezzlement of union funds totaling $71,160, in violation of 29 U.S.C. 501(c). The information follows an investigation by the OLMS Chicago District Office.
April 18th, 2012	On April 18, 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.), 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). On February 29, 2012, an information was filed charging Morales with the same crime. The plea 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 29th, 2012	On February 29, 2012, in the United States District Court for the Eastern District of Michigan, an information was filed against Paul Morales, former Treasurer of United Transportation Union (UTU) Local 1477 (located in Taylor, Mich.), charging him with one count of willfully failing to maintain union records for unauthorized cash withdrawals totaling $22,829.39. The charge follows an investigation by the OLMS Detroit 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 9th, 2011	On November 9, 2011, in the United States District Court for the Southern District of Pennsylvania, Derek Klingman, former Secretary-Treasurer of United Transportation Union (UTU) Local 1006 (located in Monongahela, Pa.), was charged in a one-count indictment for embezzling $9,354.84 in union funds. The charge follows an investigation by the OLMS Pittsburgh 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 11th, 2011	On July 11, 2011, in the United States District Court for the Middle District of Pennsylvania, Brandon S. Borders, former Secretary-Treasurer of United Transportation Union (UTU) Local 997 (located in Camp Hill, Pa.), was indicted on one count of embezzlement of union funds in the amount of $12,551.16, in violation of 29 U.S.C. 501(c). The charge follows an investigation by the OLMS Philadelphia District Office.
April 12th, 2011	On April 12, 2011, in the United States District Court for the Western District of Missouri, an information was filed against Charles E. McDaniel, former General Chairman of the United Transportation Union (UTU) General Committee of Adjustment (GCA) 341, charging him with one count of wire fraud for fraudulently obtaining $44,889.62 from UTU and $36,629.29 from Burlington Northern Santa Fe (employer), in violation of 18 U.S.C. Section 1343. The charge follows an investigation by the St. Louis District Office.
October 26th, 2010	On October 26, 2010, in the United States District Court for the Central District of Illinois, Kevin Hunt, former Secretary Treasurer of the United Transportation Union (UTU) Local 198 (located in Peoria, IL), pled guilty to a one count information charging him with filing a false Form LM-3 annual financial report for fiscal year 2007. The plea follows an investigation by the OLMS Chicago District Office.
November 30th, 2009	On November 30, 2009, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment 325 (located in Duluth, Minn.), pled guilty to embezzling union funds in the amount of $16,200. On November 12, 2009, Kobe was charged in an information with one count of embezzling union funds during a period between 2005 through 2006. The plea follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the office of the Inspector General, Railroad retirement Board.
November 13th, 2009	On November 13, 2009, in the United States District Court for the District of Minnesota, Edward Kobe, former General Chairman of United Transportation Union (UTU) General Committee of Adjustment 325 (located in Duluth, Minn.), was charged in an information with one count of embezzlement of union funds during a period between 2005 through 2006. The charge follows a joint investigation by the OLMS Minneapolis Resident Investigator Office and the Railroad Retirement Board’s Office of the Inspector General.
July 2nd, 2009	On July 2, 2009, in the United States District Court for the Northern District of Ohio, an information was filed charging Michael Kelly, former Secretary Treasurer for the United Transportation Union (UTU) Local 586 (located in Willard, Ohio) with one count of embezzling union funds in the amount of $97,970.71. The charge follows an investigation by the OLMS Cleveland District Office.
September 15th, 2008	On September 15, 2008, 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 convicted of embezzling union funds in the amount of $48,287 and willfully making false entries on union checks. On March 8, 2007, Cook was charged with one count embezzling union funds in the same amount and one count of willfully making a false entry in union records. The conviction follows a joint investigation by the OLMS Chicago District Office and the Department of Labor’s Office of the Inspector General.
December 20th, 2006	On December 20, 2006, in the United States District Court for the District of Maryland, Walter Fisher, former Treasurer for United Transportation Union Local 1949, was indicted on one count of embezzling union funds. The charges are the result of an investigation by the OLMS Washington 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.
November 2nd, 2005	On November 2, 2005, in the United States District Court for the Eastern District of Wisconsin, Michael C. Crogan, former Secretary-Treasurer of Local 1382, United Transportation Union, pled guilty to a one-count information charging him with embezzling union funds totaling $31,700. Crogan previously made full restitution to UTU Local 1382. The guilty plea follows an investigation by the OLMS Milwaukee District Office.
July 11th, 2005	On July 11, 2005, in the United States District Court for the Eastern District of Wisconsin, Michael C. Crogan, former secretary-treasurer of Local 1382, United Transportation Union, entered a guilty plea by plea agreement to an information filed on the same day charging him with embezzling $31,700 in union funds. The charge and plea agreement follow an investigation by the OLMS Milwaukee District Office.
December 14th, 2004	On December 14, 2004, in the United States District Court for the District of Kansas, Daniel Van Becelaere, former secretary-treasurer of Local 763, United Transportation Union, was charged in a three-count indictment with embezzling $36,169 in union funds. The charges follow an investigation by the OLMS St. Louis District Office.
November 13th, 2003	On November 13, 2003, in the United States District Court for the Southern District of Texas, a superseding indictment was filed adding new charges against Byron Boyd, Jr., current president; Charles Little, former president; and John Rookard, current special assistant to the president, of the United Transportation Union (UTU). These individuals had been previously charged on September 12, 2003, with racketeering conspiracy and two counts of mail fraud. The superseding indictment charges all three with one count of racketeering, one count of RICO conspiracy, and one count of mail fraud. Boyd and Rookard were indicted on a second count of mail fraud. Additionally, Little and Boyd were charged with seven counts of embezzling union funds in the amount of $3,658.59; Boyd was charged with three additional counts of embezzling union funds in the amount of $4,185.50 and two counts of witness tampering. The indictment alleges that Boyd, Little and Rookard devised and executed a scheme to defraud the UTU membership by soliciting and receiving over $525,000 in cash from thirty-four attorneys nationwide. The charges follow a joint investigation by the OLMS New Orleans District Office, the Department of Labor's Office of the Inspector General, and the FBI.
October 2nd, 2003	On October 2, 2003, 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, pled guilty to conspiring with others to violate the Racketeer Influenced and Corrupt Organizations Act (RICO). Dennis had been indicted on September 12, 2003, on one count of RICO conspiracy and two counts of mail fraud and aiding and abetting. These charges and the guilty plea resulted from an investigation by the OLMS New Orleans District Office, the Department of Labor's Office of the Inspector General, and the FBI.
September 12th, 2003	On September 12, 2003, in the United States District Court for the Southern District of Texas, the following international officers and employees were indicted on one count of RICO conspiracy and two counts of mail fraud and aiding and abetting: Charles Little, former international president of the United Transportation Union (UTU), Byron Boyd, current UTU international president, Ralph Dennis, former director of insurance for the United Transportation Union Insurance Association (UTUIA), and John Rookard, assistant to the UTU international president. The charges were brought following a joint investigation by the OLMS New Orleans District Office, the Department of Labor's Office of Inspector General and the FBI.
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.
April 9th, 2003	On April 9, 2003, in the United States District Court for the District of Montana, Frank Darvis, former treasurer of United Transportation Union Local 891, pled guilty to embezzlement and falsifying signatures on more than 60 union checks which he made payable to himself. Darvis was indicted for embezzling $29,865 in union funds on January 8, 2003. The charges were brought following an investigation by the OLMS Denver District Office.
March 20th, 2002	On March 20, 2002, in the United States District Court for the Northern District of New York, Michael G. Brown, former treasurer of United Transportation Union Local 1007, was ordered to make full restitution to the local of $2,160.16, which he had already done. He had pled guilty on February 13, 2002, to making false entries in union records. The charges had been brought following an investigation by the OLMS Buffalo District Office.
February 13th, 2002	On February 13, 2002, in the United States District Court for the Northern District of New York, Michael G. Brown, secretary-treasurer of United Transportation Union Local 1007, pled guilty to making false entries in union records to conceal his taking of union monies for his personal expenses. The charges had been brought following an investigation by the OLMS Buffalo District Office.