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Union Facts

Elevator Constructors, Local 1

criminal charges

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
July 17th, 2006On July 17, 2006, and on July 6, 2006, in the United States District Court for the Eastern District of New York, Timothy Grimm and Thomas Harrington, members of Elevator Constructors, Local 1, were each sentenced for their parts in an operator no-show job scheme involving the local. On July 17, 2006, Grimm, who previously pled guilty to conspiracy, making false ERISA statements, money laundering, and unlawful labor payments, was sentenced to three years probation, ordered to make restitution to defrauded contractors affiliated with the project in the amount of $44,694.97, pay an order of forfeiture to benefit plans affiliated with the local in the amount of $26,829, pay a $200 assessment, and provide 200 hours of community service. On July 6, 2006, Thomas Harrington, who previously pled guilty to an information charging him with conspiracy to extort, was sentenced to three years probation and ordered to make restitution to defrauded contractors in the amount of $50,000. The sentencings follow a joint investigation by the OLMS New York District Office, the Employee Benefits Security Administration, the FBI, and the IRS.
February 5th, 2002On February 5, 2002, in the United States District Court for the Eastern District of New York, 27 representatives and/or members of Elevator Constructors Local 1 were charged in a 137-count indictment with conspiracy, money laundering, extortion, witness tampering, mail fraud, tax evasion, and other racketeering crimes. The crimes were committed at more than 20 construction sites throughout New York City from 1989 through early 2001. During that time, contractors paid more than $3,000,000 in the names of no-show elevator operators and, with the addition of withholding taxes and contributions to benefit plans, the charged racketeering enterprise stole more than $6,000,000 from construction projects. The charges were brought following a joint investigation by the OLMS New York District Office, the Department of Labor's Pension and Welfare Benefits Administration, the FBI, and the IRS.
October 30th, 2001On October 30, 2001, in the United States District Court for the Eastern District of New York, Matthew Downey, lead operator for Elevator Constructors Local 1, was indicted for witness tampering and obstruction of justice. The charges were brought as part of a joint investigation by the OLMS New York District Office, the FBI, and the Department of Labor's Pension and Welfare Benefits Administration.