Labor Pains: Because Being in a Union can be Painful

Labor Racket Weekly: Thousands Of Dollars In Restitution Payments

shutterstock_547250767When union dues are collected, the money can end up deep in union bosses’ pockets. This week, we have more examples of labor rackets from across the country:

  • In Virginia, William Dixon, former Secretary-Treasurer of International Brotherhood of Boilermakers Local 2014, was sentenced to two years of probation and ordered to undergo counseling and drug treatment. Dixon was also ordered to pay the remaining restitution of $3,408 after previously paying $930. In December, Dixon pled guilty to one count of embezzlement from a labor union for embezzling $4,338 from his own union members.
  • In Minnesota, Scot McNamara was sentenced to four months of house arrest and two years of probation. He was also ordered to pay $8,871 in restitution, a $3,000 fine, a $100 special assessment, and $4,000 in reimbursement to the U.S. Treasury Department for the cost of his legal bills. In December, McNamara pled guilty to one count of embezzlement from a labor union.
  • In Illinois, Michael Schofield, former Secretary-Treasurer of Brotherhood of Maintenance of Way (BMW) Local 1046, was sentenced to eight months of incarceration, and one year of supervised release. He was also ordered to pay $30,641 in restitution and a $25 fine. In January, Schofield pled guilty to one count of making a false entry which helped conceal an embezzlement of union funds totaling $31,850 during 2012 and 2013. In the plea, Schofield admitted to making unauthorized loans of union funds to himself in excess of $2,000. For the purpose of computing his sentence, Schofield admitted to defrauding his employer of $30,641.
Categories: Labor Racket Weekly