NORTH COUNTRY GAZETTENEW YORK—A former shop steward and executive delegate of Local 157 of the United Brotherhood of Carpenters and Joiners has pleaded guilty in federal court to one count of aiding and abetting the embezzlement of monies from employee benefit plans.
Prosecutors said that from February through June 2006, Frank Proscia conspired with co-defendant Michael Annucci, also a former shop steward, and others to defraud the District Council of New York City and Vicinity, the administrative body that oversees the New York City local chapters of the Carpenters Union, and the union benefit funds.
Among other things, the defendants submitted false shop steward reports that underreported the number of carpenters and the hours worked by carpenters for a construction contractor at a jobsite located in New York City. L&D Installers, Inc. was a furniture installation and construction contractor that operated in New York City and the vicinity. L&D was a party to a collective bargaining agreement with the District Council. Pursuant to the agreement, L&D was obligated to pay all of its workers at an hourly rate specified in that agreement and to make contributions for each hour worked to the District Council Benefit Funds.
The District Council Benefit Funds, which are covered by the laws governing Employee Retirement Income Security Act plans, provide life insurance, hospitalization, medical care, pension and vacation benefits to union members.
That charge carries a maximum sentence of five years’ imprisonment; a maximum fine of the greatest of $250,000, twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to persons other than the defendant resulting from the offense; a term of supervised release of three years and a mandatory $100 special assessment. Annucci is awaiting trial, currently scheduled for January 2008.