Need to catch up on the latest in union corruption? Here are some of the latest labor rackets from the end of Summer.
In New York (SDNY), Salvatore Tagliaferro, former President of Carpenters Local 926 (located in Brooklyn, N.Y.) and a former New York City District Council of Carpenters Representative, was sentenced to five years in prison followed by two years of supervised release. He was also ordered to pay $145,065 in restitution and $296,400 in forfeiture. On April 28, 2021, following a jury trial, Tagliaferro was found guilty on all charges relating to a scheme to sell union “books” or membership cards (union property) for cash bribes: conversion of union assets (29 U.S.C. 501(c)), honest services wire fraud (18 U.S.C. 1346 and 1343), aiding and abetting (18 U.S.C. 2) both the conversion of union assets and the honest services wire fraud, as well as conspiracy (18 U.S.C. 371). The sentencing follows a joint investigation by the OLMS New York District Office, the Public Corruption Unit of the U.S. Attorney’s Office SDNY, the Department of Labor’s Office of Inspector General, and the New York City Department of Investigation.
In Michigan, Hasan Zahdeh, former President of Michigan Union of Healthcare Workers (located in Muskegon, Mich.), was sentenced to 14 months of imprisonment followed by three years of supervised release. He was also ordered to pay $140,498 in restitution and a $100 special assessment. On April 13, 2021, Zahdeh pleaded guilty to one count of embezzlement of union funds, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Minneapolis Resident Investigator Office.
In Texas, Crystal Nicole Cruz, former President of International Association of Machinists and Aerospace Workers (IAMAW) Local Lodge CE-3 (located in Corpus Christi, Tex.), was charged with one count of aggregation of amounts involved in theft and one count of misapplication of fiduciary property in the amount greater than $2,500 and less than $30,000, in violation of Texas Statutes 31.09 and 32.45(c)(4), respectively. The charges follow an investigation by the OLMS Dallas-New Orleans District Office.
In Texas, Sally Ann Gutierrez, former Secretary-Treasurer of International Association of Machinists and Aerospace Workers (IAMAW) Local Lodge CE-3 (located in Corpus Christi, Tex.), was charged with one count of aggregation of amounts involved in theft and one count of misapplication of fiduciary property in the amount greater than $2,500 and less than $30,000, in violation of Texas Statutes 31.09 and 32.45(c)(4), respectively. The charges follow an investigation by the OLMS Dallas-New Orleans District Office.
In California, Stephen A. Rooze, former Secretary-Treasurer for the Brotherhood of Locomotive Engineers and Trainmen (BLET) Division 662 (located in Burbank, Calif.), pleaded guilty to four counts of embezzling union funds, in violation of 29 U.S.C. 501(c), and admitted to embezzling a total of $140,064 over an eight-year period. The guilty plea follows an investigation by OLMS Los Angeles District Office.
