Big Labor Bosses Kickbacks, Rackeetering, Embezzlement

From Winston & Strawn:

  • Former officers of the UFCW Local 348-S in New York City were sentenced after being found guilty of racketeering, extortion, money laundering conspiracy, and witness tampering, stemming from their receipt of more than $2.5 million in illegal payments and stolen funds from the union. Anthony Fazio Sr., the former president of the local, was sentenced to 12 years and seven months in prison and must pay a $1.5 million fine. John Fazio Jr., the former vice president, was sentenced to 11 years and three months and a $1.5 million fine, while Anthony Fazio Jr., former president, was sentenced to five years and a fine of $100,000. Additionally, the defendants must pay $2.5 million in restitution and forfeiture.
  •  Four former officers of the Teamsters local in Boston were indicted on 30 counts of extortion, racketeering, mail fraud, unlawfully holding union office, and theft of government money, among other charges, in the U.S. District Court for the District of Massachusetts. Prosecutors alleged that John Perry and his co-conspirators threatened to disrupt businesses such as hotels, event planners, and catering companies before scheduled events unless the businesses agreed to hire the officials and their friends. One of the events the officials allegedly threatened to disrupt was a Democratic Party fundraiser by Massachusetts Governor Deval Patrick, featuring a speech by President Obama. Penalties for the counts can range from five to 20 years on each count, as well as fines of up to $250,000.
  • The former president of the Metal Polishers Union Local 8A-28A was indicted and arrested on charges of money laundering, mail and wire fraud, and tax evasion, among other charges. Prosecutors alleged that Hector Lopez took more than $740,000 in kickbacks that were embezzled from the local’s welfare fund by the fund’s third party administrator, as well as taking kickbacks in exchange for concealing illegal conduct and fixing a contract bidding process.
  • The Federal Election Commission fined a Wisconsin firefighters’ union $58,000 as part of a settlement reached after the Commission alleged the union reimbursed union officers for contributions made to the union’s political action committee in violation of campaign finance laws. From 2002 to 2010, the Professional Fire Fighters of Wisconsin union reimbursed contributions made by union officers totaling over $18,000 from the union’s general treasury. The union attempted to hide the reimbursements by classifying them as payments to attend a legislative conference, but the purported conference did not exist.