This Holiday Season, more than a few union bosses can expect to get coal in their stockings. Check out the latest labor rackets from November below.
In Maryland, Sarah Geddes Holmes, former Secretary-Treasurer of International Association of Machinists (IAM) Local Lodge 24, was charged in a criminal information with one count of embezzlement from a labor organization (29 U.S.C. 501(c)) and one count of bank fraud (18 U.S.C. 1344) for embezzling $294,585 from the union.
In Michigan, Joseph Ashton, former United Auto Workers (UAW) International Vice President in the General Motors (GM) Department and former director of the UAW-GM Center for Human Resources (CHR), was sentenced to 30 months in prison and 12 months of supervised release. Ashton was also ordered to forfeit $250,000 in proceeds from his crimes and to pay a $200 special assessment. On December 4, 2019, Ashton pleaded guilty to one count of conspiracy to commit honest services wire fraud (18 U.S.C. 1349) and one count of conspiracy to commit money laundering (18 U.S.C. 1956(h)). Ashton knowingly joined a conspiracy whereby he and others used their positions with the UAW and CHR to enrich themselves by obtaining a $250,000 loan from a vendor, assisting the same vendor in obtaining a contract from CHR valued at over $3,900,000, and then suggesting that the profits would repay the vendor what was owed on the loan. After the vendor was awarded the contract from the CHR, Ashton demanded at least $250,000 in kickbacks. .
In New Jersey, Angel Luis Garcia, former Financial Secretary of Amalgamated Transit Union (ATU) Local 1614, was sentenced to 12 months of home confinement with electronic monitoring and three years of supervised release. Garcia was also ordered to pay $119,021 in restitution and a $100 assessment. On June 23, 2020, Garcia pleaded guilty to one count of embezzling union funds in the amount of $117,000.
In Arkansas, Michael Johnson, former President and Business Manager of International Brotherhood of Electrical Workers (IBEW) Local 1658, was sentenced to five years of probation, with the first six months on a curfew with location monitoring. He was also ordered to pay $9,317 in restitution. On March 6, 2020, Johnson pleaded guilty to embezzlement of union funds.
In Virginia, Alexandria Division, Arthur Penn, former chairman of the Fraternal Order of Police Defense Protective Service Labor Committee (located in Arlington, Va.), was indicted on seven counts of wire fraud for embezzling $384,001 from the union, in violation of 18 U.S.C. 1343.
In Ohio, Douglas B. Dye, former unit chairman of United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) Local 12, was sentenced to one year of probation on each of the two counts in the indictment (probation to run concurrently) and 60 hours of community service. He was also ordered to pay a $2,500 fine and a $125 special assessment. The court acknowledged that Dye previously paid restitution of $8,490. On July 15, 2020, Dye pleaded guilty to one count of embezzlement of labor union assets in the amount of $8,443 and one count of falsification of union records.
In South Carolina, Columbia Division, Brenda Wilson, former President of American Federation of Government Employees (AFGE) Local 3841, was indicted for willfully and knowingly making a false, fictitious, and fraudulent statement in a matter within the jurisdiction of the executive branch of the Government of the United States.
In Maryland, Tyrone Johnson, former President of American Federation of State, County and Municipal Employees (AFSCME) Local 3374, was indicted on one count of theft having a value of at least $100 but less than $1,500 and one count of embezzlement.
In Maryland, Dorothy Jordan, former Secretary-Treasurer of American Federation of State, County and Municipal Employees (AFSCME) Local 3374, was indicted on one count of theft having a value of at least $1,500 but less than $25,000 and one count of embezzlement for embezzling $2,206 from the union.
