embezzlement 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.

Date	Description
October 8th, 2009	On October 8, 2009, in the United States District Court for the Western District of Kentucky, Daniel Reynolds, former president of PACE Local 05-1737 (located in Louisville, Ky.), was sentenced to 24 months probation on one count of embezzling union funds and 24 months probation on one count of destruction of union records, to be served concurrently. He was also ordered to pay restitution in the amount of $13,130 and a fine of $125. The sentencing follows an investigation by the OLMS Cincinnati District Office.
March 31st, 2008	On March 31, 2008 in the United States District Court for the Northern District of Ohio, Kurt E. Swanstrom, former Financial Secretary and Treasurer of PACE/USW Local 5-1560, pled guilty to embezzling union funds in the amount of $12,328, falsification of union records, and filing a false financial report with the Secretary. On January 8, 2008, Swanstrom was indicted on one count of embezzling union funds in the same amount, one count of falsification of union records, and one count of filing a false labor organization report. The plea follows an investigation by the OLMS Cleveland District Office.
January 8th, 2008	On January 8, 2008, in the United States District Court for the Northern District of Ohio, Kurt Swanstrom, former Financial Secretary and Treasurer of PACE/USW Local 5-1560, was indicted on one count of embezzling union funds in the amount of $12,327, one count of falsification of union records, and one count of filing a false labor organization report. The indictment follows an investigation by the OLMS Cleveland District Office.
October 27th, 2006	On October 27, 2006, in the United States District Court for the Southern District of Ohio, Chiquita Durr, former Vice President of PACE Local 5-832, was convicted on one count of embezzling union funds and sentenced to six months home detention and three years probation. Durr was also ordered to make restitution in the amount of $1,744.39 and to pay court costs of $100. On July 3, 2006, Durr pled guilty to one count of embezzling union funds in the amount of $2,244. The conviction and sentencing follow an investigation by the OLMS Cincinnati District Office.
August 4th, 2006	On August 4, 2006, in the United States District Court for the Northern District of Ohio, Peggy Sue Carnes, former Financial Secretary-Treasurer for PACE Local 5-621, was sentenced to two years probation, three months home confinement, and ordered to pay restitution to the local in the amount of $8,019.73. On May 12, 2006, Carnes pled guilty to embezzling union funds in the amount of $8,019.73 and making false entries in union records. The sentencing follows an investigation by the OLMS Cleveland District Office.
July 28th, 2006	On July 28, 2006, in the United States District Court for the Northern District of Ohio, Mark A. Carroll, former Treasurer for PACE Local 5-962, was sentenced to three years probation, eight months home confinement with electronic monitoring, and ordered to pay restitution to the local in the amount of $3,555.05. On March 24, 2006, Carroll pled guilty to embezzling union funds in the amount of $7,380.45. The sentencing follows an investigation by the OLMS Cleveland District Office.
July 20th, 2006	On July 20, 2006, and on July 17, 2006, in the United States District Court for the Northern District of Ohio, James Bates and Jean Paul Grennay, former Vice President and President, respectively, of PACE Local 5-712, were each sentenced to two years probation. On May 25, 2006, Bates pled guilty to embezzling $4,412 in union funds. On April 11, 2006, Grennay pled guilty to embezzling $4,412 in union funds. The sentencing follows an investigation by the OLMS Cleveland District Office.
March 1st, 2006	On March 1, 2006, in the United States District Court for the Northern District of Ohio, Jean Paul Grennay and James Bates, former President and Vice President, respectively, of PACE Local 5-712, were indicted on one count of embezzling union funds in the amount of $4,411. The indictment follows an investigation by the OLMS Cleveland District Office.
March 1st, 2006	On March 1, 2006, in the United States District Court for the Northern District of Ohio, an information was filed against Mark A. Carroll, former Secretary-Treasurer for PACE Local 5-962, charging him with one count of embezzling union funds in the amount of $7,380.45. The information follows an investigation by the OLMS Cleveland District Office.
February 28th, 2006	On February 28, 2006, in the United States District Court for the Northern District of Ohio, Peggy Carnes, former Financial Secretary-Treasurer for PACE Local 5-621, was indicted on one count of embezzling union funds in the amount of $8,019.73, and one count of falsification of union records. The indictment follows an investigation by the OLMS Cleveland District Office.
December 1st, 2004	On December 1, 2004, in the United States District Court for the Northern District of Ohio, Allan L. Spates, former president of Local 5-1250, Paper, Allied-Industrial, Chemical and Energy Workers (PACE), was sentenced for embezzlement. The sentence consists of 27 months imprisonment; 3 years supervised probation; and submission to random drug testing. Spates was ordered to make full restitution in the amount of $20,655.21. On May 28, 2004, Spates pled guilty to embezzling union funds following an investigation by the OLMS Cleveland District Office.
May 28th, 2004	On May 28, 2004, in the United States District Court for the Eastern District of Ohio, Allan Spates, former president of PACE Local 05-1250, pled guilty to three counts of embezzling $20,655.21 in union funds and one count of false statements. The guilty pleas follow an investigation by the OLMS Cleveland District Office.
December 22nd, 2003	On December 22, 2003, in the United States District Court for the Northern District of Ohio, Alan L. Spates, former president of PACE Local 5-1250, was charged with embezzling $29,746.28 in union funds and filing a false LM report. The charges follow an investigation by the OLMS Cleveland District Office.
July 25th, 2003	On July 25, 2003, in the United States District Court for the Eastern District of Missouri, Steve Floyd, former secretary-treasurer of Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) Local 05-152, was sentenced to three years probation. Conditions of probation included serving the first six months in home confinement and paying restitution in the amount of $27,882.00. On March 13, 2003, Floyd pled guilty to three counts of embezzling union funds following an investigation by the OLMS St. Louis District Office.
May 7th, 2003	On May 7, 2003, in the United States District Court for the Eastern District of Missouri, Steve Floyd, former secretary-treasurer of Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) Local 05-152, pled guilty to one count of embezzling union funds. Floyd, who was indicted on March 13, 2003, admitted to embezzling approximately $27,000 in union funds by writing checks to both himself and others that were not authorized and were for his personal benefit. The charges were brought following an investigation by the OLMS St. Louis District Office.
March 13th, 2003	On March 13, 2003, in the United States District Court for the Eastern District of Missouri, Steve Floyd, former secretary-treasurer of Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) Local 05-152, was indicted on three counts of embezzling a total of $27,882 in union funds and one count of falsifying union records. The charges were brought following an investigation by the OLMS St. Louis District Office.
December 2nd, 2002	On December 2, 2002, in the United States District Court for the Northern District of Ohio, Barbara A. Ryan, former financial secretary of PACE Local 5-626, was sentenced to fifteen months in prison followed by two years of supervised probation. Ryan pled guilty on August 5, 2002, to embezzling $117,734.18 from her union and entering into a scheme to defraud her employer, BP Chemicals, of $33,578.59 for work she did not perform. The charges were brought following an investigation by the OLMS Cleveland District Office and the FBI.
September 23rd, 2002	On September 23, 2002, in the United States District Court for the Middle District of Tennessee, Mike Bruce, former secretary-treasurer of the Paper, Allied-Industrial, Chemical & Energy Workers (PACE), Local 5-80, was sentenced to one month of home detention followed by three years of supervised probation and ordered to pay $6,923 in restitution to the union. He previously pled guilty to making false entries in required union records to conceal his embezzlement of $6,923 in union funds after he was charged in a two-count indictment following an investigation by the OLMS Nashville District Office.
August 5th, 2002	On August 5, 2002, in the United States District Court for the Northern District of Ohio, Barbara A. Ryan, former financial secretary of Local 5-626 of the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE), was indicted for embezzling $117,734.18 in union funds and entering into a scheme to defraud her employer, BP Chemicals, of $33,578.59 for work she did not perform. The charges were brought following an investigation by the OLMS Cleveland District Office and the FBI.
April 9th, 2002	On April 9, 2002, in the United States District Court for the Middle District of Tennessee, Robert Michael Bruce, former financial secretary of Local 5-0080 of the Paper, Allied-Industrial, Chemical and Energy Workers (PACE), was indicted on one count of embezzling $5,546 in union funds and one count of making false entries in union records. The charges were brought following an investigation by the OLMS Nashville District Office.