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Union Facts

Operating Engineers, Local 14

Officials Sentenced

Office of Labor-Management Enforcement

The Office of Labor-Management Standards (OLMS) conducts both civil and 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, union officer elections, the filing of required reports by unions and others with OLMS, and the imposition of trusteeships over subordinate unions by a parent body. These investigations may result in legal enforcement actions.

DateDescription
April 7th, 2009On April 7, 2009, in the United States District Court for the Eastern District of New York, Constantine Vafias, a contractor, was sentenced to three years probation, 300 hours of community service, forfeiture of $100,000, and ordered to pay $100,000 in restitution. An investigation concluded that Vafias was involved in a no-show job scheme associated with the 2 Broadway Project and Operating Engineers Local 14 (located in New York City, N.Y.). The sentencing follows an investigation by the OLMS New York District Office and the FBI.
May 24th, 2004On May 24, 2004, in the United States District Court for the Eastern District of New York, Morris Diminno, former union representative of Operating Engineers Local 14, was sentenced to 70 months in prison for conspiracy to receive, possess and dispose of money obtained by fraud and transported across state lines, unlawful labor payment, engaging in an unlawful monetary transaction, and obstruction of justice. He was required to forfeit $800,000 in connection with the no-show job scheme at the Metropolitan Transit Authority (MTA) headquarters. Diminno and co-defendants were jointly and severally responsible for paying $7 million in restitution. The sentence follows a joint investigation by the OLMS New York District Office and the FBI.
October 10th, 2003On October 10, 2003, in the United States District Court for the Eastern District of New York, Matthew Downey, a representative of Elevator Constructor Local One, was sentenced to 78 months imprisonment and three years supervised release. He was ordered to pay a total of $2.6 million in restitution for fraud involving a no-show elevator operator scheme against Local One and to forfeit the sum of $800,000 for his involvement in the Local One racketeering enterprise. Downey, jointly and severally with other co-conspirators, was ordered to pay $7 million in restitution for fraud involving the 2 Broadway Project. On February 5, 2002, Downey was indicted for unlawful activity involving Elevator Constructors Local One. Additionally, there were 27 members of Local One, including two business agents, indicted for their involvement in the no-show scheme at 19 different construction sites in New York City. On April 16, 2002, in a separate indictment, Downey was charged, along with seven other individuals (including the developer of the 2 Broadway Project, the Operating Engineers Local 14 treasurer, and Elevator Constructor Local One representatives), for defrauding the New York Metropolitan Transit Authority and ZAR Realty of more than $10 million in construction money that was intended for vertical transportation costs on the 2 Broadway project. On April 24, 2003, Downey pled guilty to various charges in both indictments. The guilty plea and sentence follow a joint investigation by the OLMS New York District Office and the FBI.
September 12th, 2003On September 12, 2003, in the United States District Court for the Eastern District of New York, James Roemer, former treasurer of Operating Engineers Local 14, was sentenced to 41 months imprisonment and three years probation for conspiracy to receive, possess, and dispose of money obtained by fraud and transported across state lines; making and receiving unlawful labor payments; engaging in unlawful monetary transactions; obstruction of justice; conspiracy to defraud the United States; and tax evasion. He was ordered to pay a total of $2.7 million in restitution and to forfeit $800,000 to the United States Government within 90 days of his guilty plea. He had been indicted on April 16, 2002, along with seven other individuals, including the developer of the 2 Broadway Project and Elevator Constructor Local One representatives, for illegal activity relating to defrauding the New York Metropolitan Transit Authority and ZAR Realty of more than $10 million in construction money that was intended for vertical transportation costs on the 2 Broadway project. On April 3, 2003, Roemer pled guilty to the charges following a joint investigation by the OLMS New York District Office and the FBI.
November 22nd, 2002On November 22, 2002, Edward Carroll, a prominent figure in construction development in New York City and the vice president of 2 BW Development, was sentenced in United States District Court for the Eastern District of New York for obstruction of justice. The charges were filed in connection with Carroll's appearance before a federal grand jury on December 11, 2001 and January 8, 2002, at which time he provided false information to the grand jury. Carroll was sentenced to five months in jail, five months home detention, and ordered to pay a $150.00 fine. Carroll also lost his architecture license as a result of the conviction. The investigation is in connection with the $10 million fraud case arising out of the renovation of the Metropolitan Transportation Authority's new headquarters. Individuals affiliated with Elevator Constructors Local One and Operating Engineers Local 14 were part of the indictment filed on April 16, 2002. The charges were brought following a joint investigation by the OLMS New York District Office and the FBI.