Remember when then-candidate Obama won the endorsement of the Teamsters after privately promising to end federally oversight of the corruption-plagued union?
I wonder if that’s still on the agenda after yesterday’s revelation that the independent review board determined that Chicagoland Local 726 has been engaged in all sorts of “financial malfeasance.” Specifically, CBS 2 in Chicago reports that the allegations include:
- Taking $125,000 out of local pension funds and moving it into local union coffers without pension fund approval or any documentation noting interest rates and repayment terms.
- Breach of fiduciary duties by the three union leaders who also serve as pension fund trustees. They are accused of skipping at least 12 months of mandatory payments to the pension fund and failing to maintain pension fund records.
- Told by an accountant that it was a no-no to transfer money from the pension fund to the local, the officers took steps to pay the money back. When Local 726 could not cover the payment, the three officers allegedly made $112,000 in personal loans to the local, a violation of the Teamsters constitution.
- Misled the international union on at least two occasions about financial liabilities and steps being taken to improve those conditions.
- Waiving one year’s worth of membership dues for 27 different members without approval.
Following the report, the International headquarters (Read: Hoffa) took the local into trusteeship, ousting all 7 leaders.