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Union Leader Fraud & Corruption

Union Leader Fraud & Corruption
http://www.unionfacts.com/articles/crimeFraud.cfm

Union Leader Fraud & Corruption

  OLMS Enforcement Statistics Financial Integrity
  FY 2001  FY 2002  FY 2003  FY 2004  FY 2005  
Indictments  98 166 132 109 114
Convictions 102 90 152 111 97
Embezzlement, False Reports, Violence, And More …

Most people don't know just how many crimes are committed every year

through which union officials hurt their own members.

 The number of reputed and verified crimes is staggering. Nothing

illustrates this more clearly than the hundreds of indictments of union

officials for violations of the Labor Management and Reporting Disclosure

Act. According to the Office of Labor-Management Standards (OLMS),

those crimes include “embezzlement, filing false reports, keeping false

records, destruction of records, extortionate picketing and deprivation of

rights by violence.” The OLMS notes:

In fiscal year 2005, OLMS completed 325 criminal cases. Indictments

increased to 114, a 16 percent increase from FY 2001. The number of

convictions dropped to 97. In addition, in FY 2005 court-ordered restitution

amounted to $23,244,979.

That's $23 million in restitution ordered for victimizing union members and

others.

  Labor Racketeering Investigations
   FY 2001   FY 2002   FY 2003   FY 2004   FY 2005  
 Cases Opened 105  125  124  135  103  
 Cases Closed 109  130  144  115  107  
 Cases referred
 for prosecution  57  74  66  87  88  
 Indictments 161  218  181  260  322  
 Convictions 92  154  120  143  196  
 Fines, restitutions,
 forfeitures,  & civil
 monetary actions
$ 42.5 million
$ 105.9 million
$ 27.9 million  
$ 36.5 million
 $ 187.9 million  

Source: Department of Labor Office of Inspector General  

Labor
Racketeering
The Department of Labor's Office of Inspector General oversees, among

other things, cases of labor racketeering -- and it stays busy. Union

officials have continued to earn their reputation for greed, corruption, and

mismanagement of union dues.

In 2005, criminal charges and fines resulting from racketeering

investigations hit five-year highs. During that time, more than 1,100

indictments have been issued, and more than $400 million in fines and

restitution has been awarded. Many of these cases involve union officials

failing to protect their members from unethical pension scams, but the OIG

also reports that it saw a three-fold increase in the number of convictions

in internal union racketeering cases between 1998 and 2004.

According to a 2004 Zogby International poll, 71% of union members said

the government ought to do more to protect union members from corrupt

union officials, and that unions should be required to give detailed reporting

of union finances to discourage abuse.

According to the FBI, four of the last eight Teamsters presidents have

been criminally indicted.

   Nearly 50% of the U.S. Department of Labor Inspector General's labor

racketeering investigations involve pensions and employee welfare benefit

plans.

According to the U.S. Department of Labor Office of Inspector General,

"Schemes involving bribery, extortion, deprivation of union rights by

violence, and embezzlement used by early racketeers are still employed to

abuse the power of unions."
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