THE COURT: Nice to see everybody. I have two issues
that I'd
like to talk about, just feel free. The principal one, as you
know, relates to the funds. Way back, I think in January of
this year, I don't know what prompted it. I think I saw a
report about the funds and not unlike other people had some
really dismal results, financial results. I asked around. I
think we've had the same funds manager, as it were, Gallagher,
for a long time. I don't know them one way or another, but I
do know that in other industries and in other fields, they're
continuously looking at their performance and results and if
they see a dip, they talk to three other people and see who
maybe could do better, or maybe not. And I thought here,
particularly since there's so much money involved, several
billion dollars, and since these are funds really of employees,
actually I thought I had a duty to raise the issue. I did
raise it. I got an immediate response, I think, from
Mr. McGuire was very positive, said we'll get on it right away.
And then I was a little disappointed not long after that to get
a letter which suggested that he wasn't getting on it so fast.
Anyway, there's been back and forth, and now it's November and
I'm a little surprised that we're at November and nobody is
eager as I am to do something. That's the origin. I'm happy
to you from you, Boyd, and also from you, Glen, but I'd be more happy to hear from the trustees, who have been pointed to as
why nothing has happened.
Saturday, November 25, 2017
U.S. v. D.C. Transcript of 11/2/16 Court Conference
Sunday, April 9, 2017
Fourth Independent Monitor Interim Report With Exhibits
Pursuant to Paragraph 5.l.iii of the Stipulation and Order filed in this matter on April 18, 2016 (the “2016 Stipulation and Order”), I respectfully submit this Fourth Interim Report as the Independent Monitor (“IM”) of the District Council of New York City and Vicinity of the United Brotherhood of Carpenters and Joiners of America (the “District Council” or “Union”), and its affiliated Taft-Hartley fringe benefit funds (the “Benefit Funds” or the “Funds”).
Sunday, October 23, 2016
U.S. v. D.C. Transcript of 10/17/16 Court Conference
THE COURT: Don't go down that path, Mr. McGuire.
This issue has been pending since January 2016. I could more easily have gotten the president of the United States to come up with a meeting, and I don't feel that I have any particular inside track. What is it, ten months or so? We could have gotten, I don't know, you name it, Donald Trump. We could have had him here in that period of time. These are busy people.
So that's an unfortunate -- that is going to be an
unsuccessful path for you to go down.
Friday, October 21, 2016
Third Independent Monitor Interim Report With Exhibits
As the Court is well aware, there has been significant discussion over the last six months regarding the Court’s interest in the Trustees’ solicitation of outside auditors to evaluate whether its current financial advisors’ methodologies are consistent with, if not surpassing, typical market practices. After much back-and-forth between the Court and counsel for the Funds, I am genuinely confident that the Trustees will devise an outside review that will satisfy the Court, and that the Funds can engage in such an inquiry without fear that whatever recommendations are made will be binding on them. I expect in the coming weeks that the Co-Chairs of the Trustees, Funds counsel, and I will meet with the Court to further discuss this project.
Third Independent Monitor Interim Report With Exhibits
As the Court is well aware, there has been significant discussion over the last six months regarding the Court’s interest in the Trustees’ solicitation of outside auditors to evaluate whether its current financial advisors’ methodologies are consistent with, if not surpassing, typical market practices. After much back-and-forth between the Court and counsel for the Funds, I am genuinely confident that the Trustees will devise an outside review that will satisfy the Court, and that the Funds can engage in such an inquiry without fear that whatever recommendations are made will be binding on them. I expect in the coming weeks that the Co-Chairs of the Trustees, Funds counsel, and I will meet with the Court to further discuss this project.
Saturday, May 14, 2016
U.S. v. D.C. Transcript of 4/18/16 Court Conference
THE COURT: Well, who cares, to be perfectly honest with you. Necessary, appropriate, and prudent, I, without knowing more, I would disagree. It seems to me -- and I've been in business myself in the private sector for a long period of my career. This kind of thing is done all the time. It's called an audit. And it's an audit by an outside independent to see if in fact they're right. It's not uncommon for people who have a vested interest in the performance, in saying things are hunky dory and healthy, doing well, don't think it's necessary, etc., etc., it's very common to have that reaction. But from my point of view it's not very comforting.
MR. McGUIRE: I could revisit it with the trustees, your Honor, but I'm fairly confident they will again make the same decision.
THE COURT: And why? Why do they think that it's unnecessary? Yes. You tell me an audit is too expensive to do, costs a hundred thousand dollars and a waste of money. So I don't know if it's too expensive or, you know, we're doing so well, or why.
MR. McGUIRE: Well, this kind of audit, by another firm, of your investment advisor, in fact is highly uncommon in that part of the world.
THE COURT: Oh, that's nonsense. I don't mean to be rude. But all the time, financial performance is monitored, and all the time are outside persons called in to -- it's not necessarily an evaluation to see if there's wrongdoing. It's just an evaluation to see if this money could be better invested. It's not a big deal.
THE COURT: So to your knowledge, Mr. McGuire, has the Department of Labor done a recent audit of the benefit funds?
MS. O'LEARY: There was a pension fund audit, your Honor, done last year that ended with no action, and the Department of Labor has just commenced a welfare fund audit.
THE COURT: What did they say about the issues I'm raising?
MS. O'LEARY: They just asked for a number of documents and then they just said -- they don't tell you specifically what their focus is.
THE COURT: That's not really what I have in mind.
MR. McGUIRE: Your Honor, DOL ordinarily does not evaluate your performance returns.
THE COURT: That's my point. That is exactly my point.
MR. McGUIRE: But the law has entrusted that responsibility to an equal number of union trustees and management trustees. The only guidance provided in the law is that you have to ensure that you secure expert advice, which we've done, and you have to have widely diversified investments, because --
THE COURT: And they don't care what return on investment you get.
MR. McGUIRE: They don't.
THE COURT: They don't.
MR. McGUIRE: No.
THE COURT: Really. That's astonishing.
Saturday, January 16, 2016
Sunday, September 13, 2015
Sunday, March 29, 2015
Meet the Independent Monitor–– GLEN MCGORTY
 |
| Glen G McCorty |
It is a great honor to be appointed as your Independent Monitor. First and foremost, I am committed to approaching this position with diligence and respect. The District Council and its Benefit Funds have a tumultuous past, but the core mission runs deep. Every interaction I have had with its Brothers and Sisters has shown me that you are here to support each other, and that you will hold the District Council and its Benefit Funds accountable to that purpose. I will aid you in this endeavor, drawing on my experience of nearly fifteen years as a federal prosecutor, during which I prosecuted organized crime, fraud, and corruption of every sort.
I come to the Council at a time when the most visible forms of corruption have been abolished. However, this success required the decisive action of both the District Court and United States Attorney’s Office for the Southern District of New York and its appointed Monitors. Great progress has been made in adopting policies that guard against corruption, and I firmly believe that it is now time for the District Council and the Benefit Funds to assume a greater role in holding itself up to the admirable standards set forth in the UBC Constitution.
I will work with the leadership of the Council and the Funds to ensure that all improvements to its operations going forward benefit members in a fair, effective, and compliant way. And while my approach to this job will be one of teamwork and cooperation, make no mistake that I am here for a single purpose: to ensure this union remains free of the problems which have plagued its past. As a result, I will not tolerate corruption at any level of this organization and I intend to use the powers given to me by the District Court to prioritize this goal above all others.
I do not believe my time here, however, is indefinite. On the contrary, during my tenure I hope to oversee the strengthening of the governing framework to the point where a monitor is no longer necessary. Self-governance cannot be achieved without your involvement. This Council’s democratic system of governance depends on it, and corruption can rebound all too easily amid disinterest.
I urge you to stay educated about the issues facing the District Council and its Benefit Funds and to use your voice and your vote in an informed and reasoned way. I also urge you to use both the Independent Monitor Hotline (877-712-4896) and internal lines of reporting, if you have any concerns about corrupt practices. This union has a bright future, and I look forward to assisting in any way I can to get it there.
Respectfully, Glen G. McGorty
