Amalgamated Transit Union Local 1181 - EXTORTION AND TAFT-HARTLEY VIOLATIONS

Sometimes it's just too easy!

FBI Press Release: June 3rd, 2009

Two Former Board Members of Bus Drivers' Union Arrested For Extortion And Unlawful Labor Payments

My favorite union, Amalgamated Transit Union, made the news again today when the FBI announced they had arrested Nick and Paul Maddalone, former EB members and assistant trustees of ATU Local 1181. The pair were arrested on charges of extortion and violations of the Taft-Hartley Act.

Way to go boys, you made the big time - the family that preys together stays together (perhaps in a federal pen?).

Admittedly, they were "former"members (is a boss ever truly a former member?) but one still has to question ATU International President Warren George's oversight of ATU Locals. Could it be that as long as a local is current in it's "tribute" to the International, he's willing to turn a blind eye to corruption at the local level? Extortion and Taft-Hartley violations? "I zee nothing, I hear nothing, I know nothing" didn't work well  at Nürnberg but perhaps it's a better defense in the new millennium.

For those who don't know, I was an ATU Local 1001 (Westminster, CO) member for two years, 2007 -2009. I have questions regarding the way the members money was spent (2008 $120K political donation to left wing Protect Colorado's Future, for example) and for months the local has ignored me. I have contacted the International on more than one occasion and all I get are replies that never address my issues. In my case, however, "circle the wagons and hope he'll go away" is not a workable defense. 

"Hi, boys - I'm still here and watching you! A big howdy to Holman, Howard, Julio & Rudy. Remember, I'm allowed to file suit under LMRDA at the end of July. A special hello to my friend lawyer Jones"

Perhaps Warren George is just jealous of the press that Andy Stern and Jimmy Hoffa have been getting and figures ATU can beat them at their own game. Any press is good press!

Where there's smoke there's fire?

To be fair, this is not my first post about Local 1181 and it's true that President George finally installed trustee's but why did it take so long after members sought help from the International and were the Maddalone boys two of George's trustees? Germane but unanswered questions.

Local 1181 had elections in March, 2009 and members claim that the union is mob free for the first time in years; we hope so. ATU International  has removed the trusties and elected officers run the union.

Some might ask why the trustees spent almost $1,000,000 more that the local received in 2008. Take a look at the 2008 LM-2.

And Here's the Rest Of The Story

Federal Charges Brought Against Twelve Members of Operating Engineers Local 17 

or

"I was robbed!" cried the crooks 

It's a year old and it doesn't look like DOL was involved - The FBI got em'all. Charged with conspiracy to commit racketeering, 7 counts of extortion,  conspiracy to commit extortion and attempted extortion. Looks like the boys from Local 17 are out of action. Charged were:

GERALD H. FRANZ, JR., Business Representative, age 45

JEFFREY A. PETERSON, Business Representative, age 45

GERALD E. BOVE, retired, past Business Representative, age 62

MICHAEL J. CAGGIANO, member, age 38

JEFFREY C. LENNON, member, age 53

KENNETH EDBAUER, member, age 63

GEORGE DEWALD, member, age 50

MICHAEL J. EDDY, member, age 39

THOMAS FREEDENBERG, Business Representative, age 51

And here's the rest of the story:

It gets even funnier (ironic not ha-ha) if you look at the 2008 Local 17 LM-2. A couple of the International boys are running the local and here's one of the LM-2 Remarks:

General Information: In December 2008 allegations of fraud were made against one of the investment managers employed by Beacon Associates LLC II, in which Local 17 invested. Such allegations suggest that the value of the underlying assets managed by the investment manager was overstated and that such overstatement dates back to prior years. As of the preparation date of this filing, the exact loss to Beacon has not been determined, however management of Beacon estimates the maximum loss to Local 17 to be approximately $ 775,000. The market value of Beacon shown in  Schedule 5 of this LM-2 filing reflects the estimated market value of the Local's investment in Beacon as of December 31, 2008. 

What is the world coming to? Crooks stealing from crooks!

Local 17 may be going for a record - 12 crooks in the union itself and they invested with another crook - poetic!

If you're looking for the Operating Engineers in the DOL disclosure room, you'll need to find IUOE-ENGINEERS, OPERATING, AFL-CIO in the dropdown box.