2023 Union Corruption Report
Criminal enforcement actions taken by the Department of Labor in 2023.
Although corruption within unions is nowhere near as bad as it once was, some unions do still suffer from having corrupt individuals taking advantage of their positions by misusing or embezzling union members’ money.
The U.S. Department of Labor’s Office of Labor Management Standards “conducts criminal investigations of alleged violations of the Labor-Management Reporting and Disclosure Act (LMRDA) and related laws.”
“These investigations by OLMS District Offices involve issues such as embezzlements of union funds and the willful failure to file complete and accurate financial and other reports with OLMS or to maintain records,” according to the Department of Labor. “These investigations may result in legal enforcement actions.”
Below is a partial list (December) of enforcement actions taken by the USDOL’s Office of Labor Management Standards in 2023. To view the full list, go here.
On December 18, 2023, in the United States District Court for the Southern District of Ohio, Eastern Division, Phelton Woods, former Treasurer of the Columbus School Employees Association (CSEA), located in Columbus, Ohio, was sentenced to one day of imprisonment (time served) and three years of supervised release. Woods was also ordered to pay $58,385 in remaining restitution and a $100 special assessment. Woods previously paid $2,300 in restitution. On July 26, 2023, Woods pleaded guilty to one count of bank fraud for embezzling $60,685, in violation of 18 U.S.C. 1344(2). The sentencing follows an investigation by the OLMS Cincinnati-Cleveland District Office.
On December 7, 2023, in the United States District Court for the Eastern District of Pennsylvania, John Dougherty, former Business Manager of International Brotherhood of Electrical Workers (IBEW) Local 98 (located in Philadelphia, Pa.), was found guilty following a four-week trial of one count of conspiracy to embezzle from a labor union and employee benefits plan, 33 counts of embezzlement of union funds, 22 counts of wire fraud theft from the union, two counts of wire fraud theft from political action committee, two counts of filing a false LM report, two counts of falsifying union records, and four counts of filing false federal income tax returns in violation of 18 U.S.C. 371, 29 U.S.C. 501(c), 18 U.S.C. 1343, 29 U.S.C. 439(b) 29 U.S.C. 439(c), and 26 U.S.C. 7206(1). The guilty verdict follows an investigation by the OLMS Philadelphia-Pittsburgh District Office, the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office.
On December 7, 2023, in the United States District Court for the Eastern District of Pennsylvania, Brian Burrows, former President of International Brotherhood of Electrical Workers (IBEW) Local 98 (located in Philadelphia, Pa.), was found guilty following a four-week trial of one count of conspiracy to embezzle from a labor union and employee benefits plan, 13 counts of embezzlement of union funds, two counts of filing a false LM report, two counts of falsifying union records, and three counts of filing false federal income tax returns in violation of 18 U.S.C. 371, 29 U.S.C. 501(c), 29 U.S.C. 439(b), 29 U.S.C. 439(c), and 26 U.S.C. 7206(1) respectively. The guilty verdict follows an investigation by the OLMS Philadelphia-Pittsburgh District Office, the U.S. Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office.
On December 5, 2023, in the United States District Court for the District of Puerto Rico, Carlos C. Sanchez-Ortiz, former President of International Longshoremen’s Association (ILA) Local 1740 (located in San Juan, P.R.), and former Vice President of the ILA International, was sentenced to three years of probation. He was also ordered to pay $10,000 in restitution. On September 25, 2023, Sanchez-Ortiz pleaded guilty to one count of labor racketeering conspiracy (RICO Act), in violation of 18 U.S.C. 1962(d). In his plea agreement, Sanchez-Ortiz admitted that he participated in a scheme to collect unlawful payments from shipping companies (employers) at the piers, and that those unlawful payments were concealed in part through a company called “JCPY.” The sentencing follows an investigation by the OLMS New York District Office, the Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for the District of Puerto Rico.
On December 5, 2023, in the United States District Court for the District of Puerto Rico, Jorge I. Batista-Maldonado, Supervisor of the Puerto Rico Port Authority (located in San Juan, P.R.), was sentenced to two years of probation. He was also ordered to pay $50,000 in restitution. On September 25, 2023, Batista-Maldonado pleaded guilty to one count of labor racketeering conspiracy (RICO Act), in violation of 18 U.S.C. 1962(d). The sentencing follows an investigation by the OLMS New York District Office, the Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for the District of Puerto Rico.
On December 5, 2023, in the United States District Court for the District of Puerto Rico, Carlos A. Hernandez-Laguer, a member of International Longshoremen’s Association (ILA) Local 1740 (located in San Juan, P.R.), was sentenced to serve one year of probation. He was also ordered to pay $3,567 in restitution. On September 25, 2023, Hernandez-Laguer pleaded guilty to conspiracy to convert funds and falsify the records of an ILA Local 1740 benefit fund, in violation of 18 U.S.C. 371. The sentencing follows a joint investigation by the OLMS New York District Office, the Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for the District of Puerto Rico.
On December 5, 2023, in the United States District Court for the Southern District of West Virginia, Gary F. Fridley II, former Financial Secretary of United Steelworkers (USW) Local 8621 (located in Nitro, W.Va.), was sentenced to three years of probation. Fridley was also ordered to pay $19,732 in restitution and a $100 assessment. On May 10, 2023, Fridley pleaded guilty to one count of embezzlement from a labor organization, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Philadelphia-Pittsburgh District Office.
On December 1, 2023, in Ingham County, Michigan Circuit Court, John D. Greathouse, Editor of American Postal Workers Union (APWU) Local 488-489 (located in Lansing, Mich.), was charged with one count of false pretenses of $1,000 or more, but less than $20,000, in violation of Michigan Compiled Laws 750.218(4)(a). The charge follows an investigation by the OLMS Detroit-Milwaukee District Office and the Michigan State Police.