Sunday, May 5, 2013


VP Cavanaugh engaged in cover-up.
Updated: 5/6/13

An informed source says Review Officer (RO) Dennis Walsh is "reserving judgment" on whether to charge Vice President Michael Cavanaugh for his role and participation in the illegal allocation of a wage increase into the Welfare Fund.

On Monday April 29, 2013 Carpenter boss Michael Bilello was booted from his post by the court appointed RO for violating several union rules — including directing a July 1, 2012 wage increase for Hod Hoist carpenters into the Welfare Fund without proper authorization and concealing it from the membership and delegate body.

Back in March, local157blogspot broke the story that Bilello "illegally diverted millions of dollars of a contractual raise into the welfare fund and now may face a possible veto by the Review Officer.

Bilello concealed the wage allocation to the welfare fund from the membership and delegate body and it now appears that his highly paid assistant Michael Cavanaugh participated in the scheme and engaged in the cover-up by also withholding this vital information from the membership and delegate body.

According to the "Notice of Veto," we learned that on June 28, 2012 Bilello and Cavanaugh signed a document titled “Rate Increase Allocation” (see picture left) in which the amount of $2.59 an hour was directed to the Welfare Fund for each hour worked by members covered under the Hoisting & Scaffolding Trade Association, Inc. (“HASTA”) CBA, in violation of Section 21 of the District Council bylaws which gives the Delegate Body the sole power to decide all allocations to the various benefit funds.

Cavanaugh wasn’t charged in the case — which followed a lengthy investigation by Jack N. Mitchell, the Chief Investigator for the RO, — but when asked whether the vice president should have been, several members and delegates told local157blogspot, “In a way, yes.”

“In my opinion, he knew what was going on, he signed off on the illegal wage allocation, he had a duty to report it, he concealed it and he should be held responsible," members told us.

The Rate Increase Allocation document was put in place by the UBC during the emergency supervision, the document requires a counter signature as a check and balance and is used to create a schedule of wages and benefits that is sent to contractors so that the contractors pay the appropriate wages and benefits.

Since July 1, 2012  Hod Hoist carpenters working under the HASTA CBA are being discriminated against and forced to pay a higher rate for their welfare coverage. The majority of the membership pays $11.25 per hour for health coverage, while Hoist carpenters now pay $13.84 per hour, an increase of $2.59 for the same health coverage.

Private sector unionized employees can get health and other benefits through a Taft-Hartley Mufti-Employer Health and Welfare Plan.

Taft Hartley trust funds and the assets of the funds are managed by a board of trustees. Management and labor are equally represented on the board. The trustees have several responsibilities including, among other things, balancing the interests of the fund and its members, fiduciary responsibilities for the assets of the fund and financial management of the plan's income, expenses, and reserves.

Rank and fliers told local157blogspot they plan on contacting the Inspector Generals office challenging the legality of members paying higher rates for health coverage and demanding a full investigation and have charges filed against Cavanaugh and any others involved.



  2. The Council Delegates need to conduct a roll call vote and send this issue, per NYCDCC By-law Sec. 12(F) which states: "The Executive Committee shall make recommendations upon specific findings to the Council Delegate Body regarding the hiring, firing or discipline of Council managers, representatives, agents and organizers." for the fiuling of charges against Cavanaugh under the UBCJA Constitution, with the INspector Generals Office and through the Review Officer for a Notice of Possible Action (NPA).

    Given the severity of the criminal racketeering, the willful & wanton violation of By-law Section 21, the CDB should copy the USAO & Judge Berman.

  3. DEMAND A FORENSIC ACCOUNTING of all monies illegally reallocated from Hod Hoist members pay-checks, to the corrupt WELFARE FUND (the same assholes who brought you the BLUE CARD VACATION WAGE EXTORTION SCAM)Use your powers here Delegates, re: Proper Motion, Second & demand a Roll Call Vote by name, Local Union number.

    (A) The Trustees shall supervise all funds and property of the Council subject to such oversight and instructions from the Executive Committee, the Council Delegate Body, and the Audit Committee, as they may receive from time to time. The title to all property of the Council shall be held in the name of the Trustees of the Council and/or their successors in office. The Trustees shall audit all books and accounts of the Executive Secretary-Treasurer (including as enumerated herein in Sections 10(B) – 10(G) and as may be otherwise maintained) at least monthly and report their findings to the Council Delegate Body and perform such other duties as the Council may require. The Trustees shall, with the assistance of the Chief Accountant, audit all receipts and accounts of any other person authorized to collect funds. The Council shall engage a certified or registered public accountant for periodic audits, but not less than once a year, and such audits shall be examined by the Trustees for comparison with the Trustees' audit who shall report their conclusions in writing to the Council Delegate Body. The Trustees of the District Council and their representatives shall have access to all records of the District Council necessary to perform their duties in a complete and satisfactory manner.

    All trustees shall be required to satisfactorily complete a training program provided for by the United Brotherhood. The District Council shall develop and implement policies and procedures for the Trustees which shall state the scope and methods of performing all required duties and be subject to the approval of the United States Attorney and the Review Officer and set forth in a separate document incorporated herein by reference. If the District Council does not submit such policies and procedures to the Review Officer for approval by March 15, 2012, the Review Officer may draft such policies and procedures for approval by the United States Attorney. The Trustees must conduct their duties in accordance with those policies and procedures, and may not modify them without the prior approval of the United States Attorney’s Office for the Southern District of New York and, during the Review Officer’s tenure, the Review Officer.

    (B) The District Council has established and shall effectively maintain an Accounting Department, headed by a Chief Accountant. The Accounting Department shall assist the Trustees, Officers and Delegates in implementing financial controls and reporting procedures, and managing the financial operations of the District Council. The District Council shall develop policies and procedures for the Chief Accountant, which shall be subject to the approval of the United States Attorney and the Review Officer, and set forth in a separate document incorporated herein by reference. If the District Council does not submit such policies and procedures to the Review Officer for approval by March 15, 2012, the Review Officer may draft such policies and procedures for approval by the United States Attorney. The Chief Accountant must conduct his duties in accordance with those policies and procedures, and may not modify them without the prior approval of the United States Attorney and, during the Review Officer’s tenure, the Review Officer.

  4. NYCDCC Bylaws Sec. 13 - continued:

    (C) The Council Delegate Body shall appoint an individual to fill any vacancies in the positions of Chief Accountant. During the period that the Consent Decree is in effect, no proposed appointment of an individual to the position of Chief Accountant may be finalized without the consent of the United States Attorney. Additionally, during the tenure of the Review Officer, no proposed appointment of an individual to the position of Chief Accountant may be finalized without the consent of the Review Officer.

    Looks like Judy Montreil & crew will be working some O.T.

    note: Due to the criminal racketeering apsect of this illegal reallocation, the 100-member CDB needs to have an independent outside firm do the Foresnic Analysis as the nature of this action necessarily requires that no internal fudging of figures and/or built in bias are incorprayed to the Final Report.

    It's a simple matter of Trust now & the DC's Chief Accountant has at least as much responsiblity to read, comprehend and know the By-laws as did the former EST. Accordingly, her services should also be summarily vetoed, notwithstanding her reporting duty with the IRS.

    Where there is Smoke, there's Fire & the D.C. is burning again (the members that is...what else is new?)

    The claims of member Apathy have thus proven to be false. The real apathy lies with the DC, it's Attorney's, and the DOJ's U.S. Attorney's Office.

    Where are the indictments? When will they be unsealed? When will arrest warrants issue?

  5. "incorporated"

    John, we need an edit feature here so we can correct typo's....I can't get those new eyeglasses I need brother, so help me out here

  6. Cavanaugh participated in the scheme to illegally allocate wages in violation of the ByLaws which Bilello was vetoed for. Cavanaugh must resign and charges filed.

    m. Access to Information. The Investigations and Review Officer

    shall have access to information as follows:


    The District Council shall give the Investigations and ReviewOfficer a written agenda for every formal meeting of theExecutive Board, and the Investigations and Review Officershall have the right to attend every such meeting.


    The Investigations and Review Officer shall have complete and

    unfettered access to, and the right to make copies of, all books,documents, accounts, correspondence, files, data compilationsand other records of the District Council, its constituent localunions, and the union-related books, documents, accounts,correspondence, files, data compilations and other records oftheir officers, representatives and agents, subject to any

    evidentiary privileges recognized at law.


    The Investigations and Review Officer shall have the right totake and require the sworn statement or sworn oral deposition ofany officer, employee, or member of the District Council, orany of its constituent local unions, concerning any matter withinthe Investigations and Review Officer's authority under thisConsent Decree, provided that the person to be examinedreceives reasonable advance written notice of the deposition, and

    may be represented by an attorney of his or her own choice, or

    by a member of the District Council, at any such deposition.


    The Investigations and Review Officer shall also have the

    power, upon application to the Court, to issue subpoenas for

    testimony and/or documents from any person or entity.


    If Preet Bashara and Benjamin Torrance of the United Stes Attorneys Office fail to act to preserve the evidence and to secure indictments, then, by applicaion of Sec. 4(m) of the Consent Decree, the Review Officer Dennis Walsh needs to file the Motion with Judge Berman to subpoena the records and to depose every actor in the racketeering scam.

    If there is an issue relative to the 4th Interim Report, then the R.O. may have to recuse himself and the Court may be required to appoint an Independent third party, such as Walter Mack or Jim Zazalli to conduct said investigation and to pricure the required information needed to secure indictments against the offending delegates (veto time), offending Officers, Fiduciary's/Trustees (Union & Employer side), the DC's Chief Accountant and the DC's in house counsel Murphy along with Welfare Fund attorney McGuire.

    Painting the theft of member wages and the illegal reallocation of a sum which if left unchecked would amount to greater than $200 Million dollars over the 4.33 year life of the contract(s) (CBA's) as a simple political issue via a directive to willfully & wantonly violate the terms & conditions of the Consent Decree and Stip & Order over said mandatory requirements to eliminate rampant racketeering activity within the DC simply does not pass muster.

    The rank & file are not brain-dead, much to the chagrin of the UBC International, L & P's Conboy or DC & S's Quinn, Lebo, Bilello, Cavanaugh, the Executive Committee or Unity Team holdovers currently employed at the D.C. doing the bidding of Doug McCarron.

    The direction in the 4th Interim Report to former EST Bilello to violate the Consent Decree, irrespective of how slyly worded said direction was - warrant immediate recusal of the R.O. from further investigation as he was by all accounts a direct participant.

    You can pput lipstick on a pig and try spinning this in a court of law, but in the end, it's still a pig and recusal must attach.

  8. Billello, Cavanaugh and Lebo should be indicted for labor racketeering.

  9. Executive Committee Meeting Minutes
    February 27, 2013

    The regular monthly meeting of the New York City and Vicinity District Council of Carpenters Executive Committee was held on Wednesday, February 27, 2013, at 3:00p.m., at 395 Hudson Street, President Mcinnis presiding and Vice-President Cavanaugh being present. EST Bilello was absent due to attendance at the UBC EST Meeting in Florida. Also in attendance were Executive Committee members John Daly, Raymond Harvey, Joseph Sabatino, Paul Tyznar, Robert Villalta, Daniel Walcott, and Christopher Wallace. Local Union 1556 had no representative, due to the resignation of Brother Hughes; position remains vacant. Also present was Inspector General Scott C. Danielson and Director of Operations Matthew Walker. The minutes of the last meeting were not approved; will be approved at March 13, 2013 meeting.


    President Mcinnis asked if there was any Old Business; Brother Harvey asked about the status of the Wall & Ceiling contract. VP Cavanaugh responded stating that Judge Berman will accept feedback from members up until March 12th; afterwards a decision will be made. Discussion continued amongst Executive Committee members regarding the timeframe for the implementation of wage increases. VP Cavanaugh also made the announcement that beginning with July 1, 2013 assessments will be paid directly through i-Remit; weekly deductions from members. Discussion continued regarding the dues check off process and the $2.13 that will go directly into the Welfare Fund.

  10. Cavanaugh..Save yourself and hand over the real guilty party.James Murphy. You know who told both you and Biello to sign the allocation. Ignorance is not an excuse but a pattern of malicious intent surely is. How many more of you will have to be vetoed before you chase the real rat out of the wood pile.. For the sake all members tell the truth


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