Labor Pains: Because Being in a Union can be Painful

Labor Racket Weekly: Coronavirus Catch Up

The coronavirus may have put some court proceedings on hold, but union bosses are finally seeing their own misdeeds catch up with them. Check out the latest labor rackets below:

In Michigan, Gary Jones, former President of the United Auto Workers (UAW), pleaded guilty to one count of conspiracy to embezzle union funds and use a facility of interstate commerce to aid racketeering activity, in violation of 18 U.S.C. 371, 1952(a)(3), and 29 U.S.C. 501(c), and one count of conspiracy to defraud the United States, in violation of 18 U.S.C 371. During the course of the conspiracy, from at least 2010 and continuing through in or about September 2019, Jones embezzled and conspired to embezzle approximately $1,000,000 in union funds by submitting fraudulent vouchers to the UAW that misrepresented the destination and purpose of the expenses and by using unauthorized checks to divert funds from the UAW Midwest CAP.

In New Mexico, Jessica Pangburn, former office secretary of Operating Engineers Local 953, was sentenced to one day of jail (time served), two years of supervised release, and 25 hours of community service. She was also ordered to pay restitution in the amount of $69,469. On November 26, 2019, Pangburn pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. 1343.

In West Virginia, Eric Childress, former Secretary-Treasurer of Communications Workers of America (CWA) Local 2276, was sentenced to five years of probation and was ordered to pay restitution of $30,611 and a $25 special assessment. On December 18, 2019, Childress pleaded guilty to one count of making a false entry in a union record, in violation of 29 U.S.C. 439(c).

In Wisconsin, Linda Woodford, former President of American Federation of State, County and Municipal Employees Local 727D, pleaded guilty to one count of misdemeanor theft, in violation of Wisconsin State Statute 943.20(1)(b). She was then sentenced to five days in jail, one year of probation, and 50 hours of community service. She was also ordered to pay $453 in court costs; Woodford previously paid full restitution of $4,065.

In Indiana, Rhondalyn Cornett, former President of the Indianapolis Education Association, pleaded guilty to one count of wire fraud for embezzling $154,118 from the union, in violation of 18 U.S.C. 1343. She was then sentenced to 16 months of incarceration and two years of supervised release. She was also ordered to pay restitution of $154,118 and a $100 special assessment.

In Georgia, Janet Pilcher, former Secretary-Treasurer of National Association of Letter Carriers (NALC) Branch 536, pleaded guilty to embezzlement of union funds in the amount of $65,033, in violation of 29 U.S.C. 501(c).

In Kentucky, Shannon Pemberton, former Treasurer for Painters Local 238, was sentenced to three years of probation and ordered to pay restitution of $958 and a $100 assessment. Pemberton previously paid $5,444 in restitution. On January 23, 2020, Pemberton pleaded guilty to one count of embezzling union funds in the amount of $6,403, in violation of 29 U.S.C. 501(c).

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