Locomotive Engineers

Indictments

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.

Date	Description
July 29th, 2010	On July 29, 2010, in the United States District Court for the District of Minnesota, Cory A. Carroll, former Secretary Treasurer of Brotherhood of Locomotive Engineers and Trainmen (BLET) Regional and Shortline General Committee of Adjustment (GCA) (located in Albert Lea, Minn.), pled guilty to one count of embezzling union funds in the amount of $35,362.41. On April 5, 2010, Carroll was indicted for the same offense. The plea follows an investigation by the OLMS Milwaukee District Office and Minneapolis Resident Investigator Office.
April 5th, 2010	On April 5, 2010, in United States District Court for the District of Minnesota, Corry Carroll, Secretary-Treasurer of the Brotherhood of Locomotive Engineers and Trainmen (BLET), General Committee of Adjustment (located in Albert Lea, Minn.), was indicted for embezzling union funds in the amount of approximately $35,000. The indictment follows an investigation by the Milwaukee District Office and Minneapolis Resident Office.
January 28th, 2010	On January 28, 2010, in the Superior Court of Cobb County, Georgia, Johnny L. Banes, former-Financial-Secretary of the United Steelworkers of America, Local 2401 (located in Mableton, Ga.), was indicted on one count theft of union funds in the amount of $38,329.00. The indictment follows an investigation by the OLMS Atlanta District Office.
April 3rd, 2009	On April 3, 2009, inthe 61st District Court of Kent County, Michigan, Kevin Welch, former Financial Secretary of Communications Workers of America (CWA) Local 84-415 (located in Grand Rapids, Mich.), pled guilty to one count of embezzlement from a non-profit/charitable organization between $250 and $1,000. On March 4, 2009, Welch was indicted on one count of embezzlement from a non-profit/charitable organization between $1,000 and $20,000. Theplea and charge follow an investigation by the OLMS Detroit District Office.
April 3rd, 2009	On April 3, 2009, inthe 61st District Court of Kent County, Michigan, Kevin Welch, former Financial Secretary of Communications Workers of America (CWA) Local 84-415 (located in Grand Rapids, Mich.), pled guilty to one count of embezzlement from a non-profit/charitable organization between $250 and $1,000. On March 4, 2009, Welch was indicted on one count of embezzlement from a non-profit/charitable organization between $1,000 and $20,000. Theplea and charge follow an investigation by the OLMS Detroit District Office.
November 25th, 2008	On November 25, 2008, in the United States District Court for the Eastern District of Wisconsin, Mary Schaeuble, Chair of the Insurance Committee of Steelworkers Local 20 (located in Kaukauna, Wis.), pled guilty to two counts of embezzling union funds in the amount of $730.94. On May 20, 2008, Schaeuble had been indicted on 13 counts of embezzling union funds in the amount of $3,379.30. The plea follows an investigation by the OLMS Milwaukee District Office.
March 21st, 2006	On March 21, 2006, in the United States District Court for the Eastern District of Wisconsin, Debra M. Timko and Danny L. Iverson, former Presidents of Service Employees, Local 150, were charged in a 33-count indictment with mail and wire fraud and failure to maintain union records as part of a scheme to defraud the union of over $90,000. The indictment details an alleged scheme where Iverson and Timko eliminated any audit or review of the expense vouchers they submitted for reimbursement and used their positions to authorize fraudulent payments to themselves for unused vacation time and personal or otherwise non-reimbursable expenses. The indictment also alleges that upon Iverson's resignation as president, Timko became president, and in exchange, authorized payments to Iverson totaling $50,000. The indictment follows an investigation by the OLMS Milwaukee District Office.
September 29th, 2005	On September 29, 2005, in the United States District Court for the Western District of Pennsylvania, Marilyn Constable, former trustee of ABC Local 12 Employer and Employee Life Benefit Fund, a benefit fund of the Bakery & Tobacco Workers AFL-CIO, Local 12-A, Pittsburgh, PA, was charged in a 15 count indictment with embezzling $7,591.01 in benefit funds. The charges follow an investigation by the OLMS Pittsburgh District Office and EBSA Philadelphia Regional Office.
July 15th, 2005	On July 15, 2005, in the United States District Court for the Central District of California, William Harry Good, Jr., former financial secretary-treasurer of Local Lodge 821, Machinists, was indicted for embezzling $11,800 in union funds. According to the 8-count indictment, Good made union checks payable to himself, without authorization or approval by the union's executive board, and deposited them into his personal bank account. The indictment superceded a criminal complaint and an arrest warrant on June 30, 2005. The indictment follows a joint investigation by the OLMS Los Angeles District Office and the Department of Labor's Office of the Inspector General.
November 23rd, 2004	On November 23, 2004, in the United States District Court for the District of Massachusetts, George Beck Jr., former secretary-treasurer of Local 1-366, Paper, Allied-Industrial, Chemical and Energy Workers (PACE), was indicted on 26 counts of embezzling $10,232.96 in union funds. In addition, the indictment sought forfeiture of proceeds traceable to the commission of the alleged embezzlement, including, but not limited to, $26,835.05 and a BOSE Acoustic Wave Music System. The indictment follows an investigation by the OLMS Boston District Office.
November 23rd, 2004	On November 23, 2004, in the United States District Court for the District of Oregon, Beverly Jackson, former executive vice president of Local 7901, Communications Workers, was indicted on three counts of embezzlement totaling $33,457.65. The indictment alleges that Jackson was "double paid" by both the union and her employer, Qwest Corporation, for time she spent performing union activities. The indictment follows an investigation by the OLMS Seattle District Office. [Related documents: HTML | PDF]
November 19th, 2004	On November 19, 2004, in the United States District Court for the Northern District of Illinois, Derrick Thomas, former secretary-treasurer of the Glass Molders Plastics Union, pled guilty to embezzling $10,297 in union funds. An indictment filed August 18, 2004, alleged that Thomas negotiated unauthorized checks from the union's checking account by forging the president's co signature and making them payable to himself. The guilty plea follows an investigation by the OLMS Chicago District Office.
August 18th, 2004	On August 18, 2004, in the United States District Court for the Northern District of Illinois, Derrick Thomas, former secretary-treasurer of Glass, Molders, & Plastics Union Local 138, was indicted on one count of embezzlement of $10, 297.72 in union funds. The charge alleges that he negotiated unauthorized checks by forging the president's co-signature and making them payable to himself from the union's checking account. The charge follows an investigation by the OLMS Chicago District Office. [Related documents: HTML |PDF]
August 10th, 2004	On August 10, 2004, in the United States District Court for the Southern District of Mississippi, James E. Pearson, former secretary-treasurer of Communications Workers of America Local 3550, was indicted for embezzling $28,686 in union funds. The charge alleged that he negotiated unauthorized checks payable to cash from the union's checking account. The indictment follows an investigation by the OLMS New Orleans District Office.
April 9th, 2003	On April 9, 2003, in the United States District Court for the District of Montana, Frank Darvis, former treasurer of United Transportation Union Local 891, pled guilty to embezzlement and falsifying signatures on more than 60 union checks which he made payable to himself. Darvis was indicted for embezzling $29,865 in union funds on January 8, 2003. The charges were brought following an investigation by the OLMS Denver District Office.
January 14th, 2003	On January 14, 2003, in the United States District Court for the Southern District of Iowa, Clyde Starkey, former member of Laborers Local 177 in Des Moines, pled guilty to conspiracy to embezzle union funds. Starkey was indicted on November 19, 2002, for cashing $28,905 in union checks payable to the fictitious Starkey Construction Company and then splitting the proceeds with the Local 177 business manager. The investigation was conducted by the OLMS St. Louis District Office.
	On October 23 and 24, 2008, in the United States District Court for the Eastern District of Pennsylvania, Lawrence Marable and Deborah Powell, former President and Treasurer, respectively, of AFGE Local1793, representing employees at the VA Medical Center in (Philadelphia, Pa.) both were sentenced on a seven count indictment that included one count of conspiracy, five counts of theft of property in a special territorial jurisdiction of the United States and one count of making false statements. Marable was sentenced to eighteen months incarceration followed by three years of supervised probation, ordered to pay restitution in the amount of $184,129.85, a special assessment of $700.00 and a fine of $3,000.00. Powell was sentenced to twelve months and one day incarceration followed by two years of supervised probation, ordered to pay restitution in the amount of $184,129.85 and a special assessment of $700.00. Marable and Powell conspired to convert dues checkoff checks and issue Local 1793 checks for their personal use totaling $184,129.85. Marable and Powell were held separately liable in the payment of restitution. The sentencings follow a joint investigation by the OLMS Philadelphia District Office and the Department of Veterans Affairs Office of Inspector General.

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