The Manhattan District Attorney announced the arrest and indictment earlier today of Michael Batalias, Elisavet Batalias, Vassiliki Stergiou and EMB Contracting Corporation for defrauding employees in the neighborhood of $1 million dollars. The defendants are charged with Grand Larceny in the First Degree and Scheme to Defraud in the First Degree. Moreover, Elisavet Batalias was charged with eleven counts of Offering a False Instrument for Filing in the First Degree.
According to the Manhattan District Attorney's Office:
EMB Contracting Corp is a "general contractor providing labor in the rehabilitation/construction of 30 public schools throughout New York City. As provided by the New York State Labor Law, and under the terms of these contracts, EMB was required to pay all of the employees engaged in working on these contracts the prevailing wage and supplemental benefit rate. The Office of the Inspector General for the SCA began investigating EMB after receiving a number of complaints that the firm was not paying employees the required prevailing wage rate, but rather roughly a third to a half of the rate, and was not making appropriate contributions to the union pension fund."
Prosecutors allege the the contractors were not merely "cooking" the books, but also created a new set of "dummy" records as well. All of this, according to the Manhattan DA, was to hide underpayments. Additionally, EMB falsified payroll reports and completely omitted workers from records while adding those who did not actually work. In fact, when it came time to submit the payment applications, it is alleged that Elisavet Batalia provided sworn affidavits that the prevailing was was paid to employees when it had not. Vicky Stergiou also is alleged to have given cash "off the books" to employees by cashing EMB checks made payable to other people. The alleged fraud perpetrated by the defendants took another step towards criminality when Michael Batalias allegedly staged a accident at a different location after an employee was hurt elsewhere.
While I am certainly not privy to the facts of the case beyond the press release, the defendant's certainly have a difficult road ahead. The police executed a search warrant in 2008 and likely have subpoenaed bank and payroll records. Moreover, it appears that there are numerous employees, ie, witnesses, who could testify as to how they were paid, hours worked and conduct of the EMB. That being said, although it is not an affirmative defense as it is in the context of Falsifying Business Records, did any of the defendants offer the false instrument at the behest of a supervisor and without any personal benefit? Did each individual indicted by the Grand Jury have the intent to perpetrate these crimes? Are there documents supporting each of the defendants' involvements or is the indictment based on the general roles of the defendants at EMB? Whatever the defense may be, the defendants should implement it immediately.
Grand Larceny in the First Degree is a class B felony punishable by up to 8⅓ to 25 years in prison. Offering a False Instrument for Filing in the First Degree and Scheme to Defraud in the First Degree are class E felonies punishable by up to 1⅓ to 4 years in prison.
Crotty Saland, LLP is a white collar criminal defense firm located in New York City. Founded by two former Manhattan prosecutors, Crotty Saland, LLP has successfully represented clients in white collar criminal matters ranging from multiple million dollar Criminal Tax Fraud cases to crimes involving Forged Instruments, Identity Theft and Grand Larceny in the tens of thousands of dollars.
Thursday, November 12, 2009
Manhattan DA Demolishes $1 Million Construction Scheme: Contracting Company Caught Allegedly Defrauding Employees Pay
EMB CONTRACTING CORP. (EMB)
DISTRICT ATTORNEY - NEW YORK COUNTY | |
| NEWS RELEASE November 12, 2009 | Contact: Alicia Maxey Greene 212-335-9400 |
Manhattan District Attorney Robert M. Morgenthau announced today the indictment of a Queens-based general contracting firm, EMB CONTRACTING CORP., and its principals for defrauding employees out of more than $1 million in unpaid wages and benefits. The defendants, EMB CONTRACTING CORP. (EMB), and its former and current de facto president MICHAEL BATALIAS, 65, were indicted on charges of grand larceny and scheme to defraud. Also named in today’s indictment are EMB’s President ELISAVET BATALIAS, 35, who was indicted on charges of scheme to defraud and offering a false instrument for filing, and VASILIKI (a/k/a VICKY) STERGIOU, 44, the office manager, who was indicted on charges of scheme to defraud. The crimes charged in the indictment occurred between April 1, 2007 and December 28, 2008. The investigation leading to today’s indictment revealed that EMB is a general contracting firm that specializes in large public works contracts. The criminal conduct outlined in this indictment involves contracts entered into with the New York City School Construction Authority (SCA) whereby EMB was the general contractor providing labor in the rehabilitation/construction of 30 public schools throughout New York City. As provided by the New York State Labor Law, and under the terms of these contracts, EMB was required to pay all of the employees engaged in working on these contracts the prevailing wage and supplemental benefit rate. The Office of the Inspector General for the SCA began investigating EMB after receiving a number of complaints that the firm was not paying employees the required prevailing wage rate, but rather roughly a third to a half of the rate, and was not making appropriate contributions to the union pension fund. The initial investigation provided the District Attorney's Office with probable cause to obtain and execute a search warrant at EMB’s offices in December of 2008. The defendants took a number of criminal steps to hide these underpayments from the SCA. These included creating falsified payroll reports which had no bearing on the real hours worked by the workers. Sometimes workers who worked were totally omitted, and sometimes workers who did not work were included. In fact, EMB paid workers by eight hour segments. Thus if a worker worked 48 hours he got 6 times his daily pay, which ranged from $130 to $240, paid in cash and check combinations. These amounts were well below the prevailing wage, which during the period charge ranged from about $384 to $408 for 8 hours. Additionally no overtime was paid. Nonetheless, the payment applications included sworn affidavits by ELISAVET BATALIAS attesting that EMB was paying the required prevailing wages and benefits. STERGIOU administered the cash payroll system and generated cash to give workers “off the books” by cashing EMB checks made out to third persons. Further investigation revealed that on December 17, 2006, MICHAEL BATALIAS and EMB, in order to avoid detection of the underpayment, removed a worker who was injured on a school project in Fresh Meadows, Queens to EMB’s warehouse in Astoria, Queens and staged the scene so that it would appear as if the accident occurred at the warehouse. Defendants, EMB CONTRACTING INC., and MICHAEL BATALIAS have been indicted on one count each of Grand Larceny in the First Degree and Scheme to Defraud in the First Degree. ELISAVET BATALIAS and VICKY STERGIOU have been indicted on one count each of Scheme to Defraud in the First Degree. ELISAVET BATALIAS was additionally indicted on 11 counts of Offering a False Instrument for Filing in the First Degree. MICHAEL BATALIAS AND EMB are charged in the same indictment with a second count of Scheme to Defraud in the First Degree for that conduct. Grand Larceny in the First Degree is a class B felony punishable by up to 8⅓ to 25 years in prison. Offering a False Instrument for Filing in the First Degree and Scheme to Defraud in the First Degree are class E felonies punishable by up to 1⅓ to 4 years in prison. The defendants were arrested this morning and are scheduled to be arraigned this afternoon in State Supreme Court, Part 1. Mr. Morgenthau thanked Barbara DiTata, Inspector General of the SCA, for the assistance of her investigative staff, including Gerard McEnroe, Investigative Counsel, and Investigators James O’Brien, Leroy Callier, and Nick Scicutella. Mr. Morgenthau also thanked the New York State Insurance Fund Acting Director Francine James and the Division of Confidential Investigation Director Laurence LaPointe. Assistant District Attorneys Thomas Mooney and Elizabeth Lederer, Senior Investigative Counsel in the Labor Racketeering Unit, are handling the prosecution under the supervision of Assistant District Attorney Michael Scotto, Chief of the Labor Racketeering Unit. Rackets Investigators Stuart Prakin and Robert Tarwacki assisted with the investigation under the supervision of Senior Rackets Investigator Terry Quinn and Chief Investigator Joseph Pennisi. Deputy Chief Financial Investigator Michael Kelly also participated in the investigation. MICHAEL BATALIAS, 4/25/1944 80 Stone Hill Drive East Manhasset, New York ELISAVET BATALIAS, 12/28/1973 80 Stone Hill Drive East Manhasset, New York VASSILIKI STERGIOU (a/k/a VICKY STERGIOU), 11/7/1964 1701 Tower Drive Edgewater, New York EMB CONTRACTING CORP. 24-59 47th Street Astoria, New York | |
Wednesday, November 11, 2009
Building Delusions at the Carpenters
By Richard Dorrough
Carpenters President Douglas McCarron is delusional indeed. He’s dismissed the AFL-CIO’s newly chartered carpenters organizing committee and placed faith in his “corporate unionism” approach and a repressive, self-serving regime that destroys the democratic rights of rank and file members.
The 500,000-member Carpenters (UBC) left the AFL-CIO earlier this decade even before other Change to Win unions did, saying its per capita dues were going to waste. It joined CTW in 2005, but now, with CTW falling apart, the UBC quietly announced that it has pulled out of that federation, too.
At its September convention, the AFL-CIO passed Resolution 70 unanimously, which announces that if the UBC doesn’t return to the AFL-CIO and stop raiding other building trades unions, an AFL-chartered organizing committee will start bringing carpenters into the federation.
Perhaps McCarron is counting on leaders in the AFL-CIO trades to stick to their promises made from the convention floor, where they declared that the newly chartered locals will not organize those already affiliated with another union.
But if the UBC loses members to an AFL-CIO threat that turns out to be real, it is directly due to the policies and rules instituted by McCarron and his cronies.
DAILY RAIDS
The UBC attempts to raid the work of our fellow brother and sister union trades people on a daily basis. Their livelihood and paychecks are under constant attack. Yet McCarron claims that there is no problem and that all the trades are working together.McCarron’s idea of working together is “wall to wall” contracts the Carpenters are trying to negotiate in which all trades are under their control. Other trades have spent millions of their membership’s hard-earned wages to fight off the UBC attacks on their work. Under McCarron’s cut-throat unionism his own Carpenters have been reduced, by his command, to piecework and severely reduced wages. His membership languishes on out-of-work lists for months at a time. Is this “all trades working together”?
UBC members suffer under McCarron's repressive regime, too. He consolidated power at regional councils, out of control of local union members. He supports the destruction of working locals by allowing regional councils to raid their funds and seize control of all aspects of their existence, so that a duly elected local president can be locked out of his own union hall. Locals that fight to retain their autonomy are crushed. Council officials have been repeatedly indicted for bribery, drugs, and fraud, including in New York City and Michigan.
The Carpenters promised reduced costs and better service for members by forcing the merger of local funds into regional funds. But local welfare, annuity, and pension funds have been devastated and members’ costs have doubled and tripled. We have full-time working Carpenters who cannot get health benefits for themselves or their families due to the mismanagement of these regional councils.
MARKET SHARE?
McCarron’s assessment of the Carpenters’ market share and ranks is another delusion. His corporate unionism policies have decimated rank-and-file membership numbers. In our own upstate New York local we have lost 440 members over a five-year period.The UBC organizing motto seems to be “organize or lie.” The drop-out rate of new members is astronomical.
While members’ families suffer without benefits, and carpenters are out of work for months at a time, officials continue to reward themselves. They take ridiculous salaries: Patrick Morin (a trustee on funds that lost millions to the Bernie Madoff scheme) is taking home $321,000 in compensation and $175,000 in his pension each year after his recent $10,000 raise at the Empire State Regional Council, which covers suburban New York regions and central New York state. Local 370 President William Weir announced a 600-hour increase per year for the rank and file to qualify for health benefits and then took a $20,000 raise for himself.
McCarron apparently sees Resolution 70 as no threat. Does he believe he can stop an exodus of the UBC membership to newly chartered AFL-CIO carpenters organizations?
Perhaps he, like many others, sees Resolution 70 as blowing smoke in an attempt to bring Carpenters’ per-capita money back into the AFL-CIO coffers.
I do not advocate separation from the Carpenters. Instead the UBC needs to divest itself of corruption and restore democratic unionism by cleaning out and dissolving the regional councils.
But let’s be clear: The Carpenters are going down not because of evil non-union contractors or disgruntled “Commies and deranged loners” in the UBC, as McCarron likes to call them. The blame rests squarely on the shoulders of the present leadership.
Richard Dorrough is a member of Carpenters Local 370 in Albany, New York. See the full version of his response to Resolution 70 at his site.
Monday, November 9, 2009
Union Dues It's Your Money Isn't It?
Transparency measures undertaken by former Labor Secretary Elaine Chao, updated the financial reporting forms that unions are required to file with the Labor Department and IRS.
Under Chao, the DOL required unions among other things, to itemize their expenditures and report how much they paid union employees.
Because of these reforms, rank-and-file members can see how their union dues are spent.
Financial transparency protects union members from corrupt officers.
Unfortunately, the leadership at New York District Council of Carpenters would rather keep us blindfolded and deny our fundamental right to information or voting on our contracts.
Union members clearly deserve to know how their dues are spent.
Less transparency in union finances has facilitated union corruption.
Clearly, Unity Team union officers, motivated by greed, conducted the affairs of the council like a self-serving out of control criminal enterprise, that was both detrimental to the welfare and best interest of the district council and its members.
With the arrest of Mike Forde and revelations at the UBC Hearings of:
- Corruption
- Drug use
- Prostitution (see page 505)
- Hiding illegal weapons and drugs on our property
- Employees removing hair from their bodies in order to avoid detection of drug use
- Financial Mismanagement
- Cash Flow Mismanagement, costing $300 to $500 thousand per year in lost interest (see page 5)
- Trustees not adequately performing their duties
- Losing control over the management of employee spending
- Employees with serious driving offense are provided union cars and expense reimbursements
- Flawed systems of accountability in place (see page 93)
Since becoming Supervisor, Frank Spencer has undertaken "several measures" in an attempt to correct the problems plaguing the district council. While we applaud Mr. Spencer's initiatives, observers say they fall short of the mark.
The biggest obstacle to reform, is these "measures" are being implemented by the same people who have failed us and led us to where we are today.
It not assuring that Spencer named former "Unity Team" partner, Pete Thomassen, as "assistant" nor the fact that most of Forde's enablers are still in positions of power and trustees to our benefit funds. This is a major source of mistrust and anger among the rank and file.
The illusion that Spencer has cleaned house is just that; an illusion.
Why did Spencer name Thomassen, assistant supervisor?
Why would Spencer do this?
Is union politics trumping what is in the best interest of the membership?
Unfortunately, these questions remain unanswered, since Spencer has refused to answer written questions, or provide a forum to answer questions directly.
In an effort to better educate our members on union finances and provide much needed transparency, Local157.blogspot.com is providing you with one click, free access to the latest IRS form 990, Department of Labor form LM-2 and 5500 Reports filed by the New York District Council of Carpenters. Under the law you have a right to this information.
What is a IRS Form 990?
Form 990 is an annual reporting return that certain federally tax-exempt organizations must file with the IRS. It provides information on the filing organization's mission, programs, and finances.
How to read IRS Form 990.
Form 990 Information
What is a Form 5500?
Annual Report Form 5500. This report is required to be submitted annually by many ERISA-covered plans. It contains various schedules with information on the financial condition and operation of the plan.
How to read Form 5500
Form 5500 Information
What is a Form LM-2?
Unions covered by the Labor Management Reporting and Disclosure Act are required to submit annual financial statements to the US Department of Labor. The LM-2 Form will tell you how many members the union has, the salaries of officers and staff, and other useful information.
Form LM-2 Information
Look up LM-2
990 Reports filed for the District Council, click to view each year.
| Date Received | Filing Type | Fiscal Year Ending | Trust Name | Plan Number | Total Liabilities | Total Receipts | |
|---|---|---|---|---|---|---|---|
| Feb 09, 2009 | 990 | 2009 | Labor Management | 56-2410898 | |||
| Feb 09, 2009 | 990 | 2008 | Labor Management | 56-2410898 | |||
| Jan 11, 2008 | 990 | 2007 | Labor Management | 56-2410898 | |||
| Feb 19, 2010 | 990 | 2009 | District Council | 13-5569960 | |||
| Sep 24, 2008 | 990 | 2008 | District Council | 13-5569960 | |||
| Feb 4, 2008 | 990 | 2007 | District Council | 13-5569960 | |||
| Sep 27, 2008 | 990 | 2008 | Carpenters Charity Fund | 56-2389393 | |||
| Feb 22, 2008 | 990 | 2007 | Carpenters Charity Fund | 56-2389393 | |||
| Apr 22, 2009 | 990 | 2008 | Carpenters Relief & Charity Fund | 13-3490897 | |||
| Apr 17, 2008 | 990 | 2007 | Carpenters Relief & Charity Fund | 13-3490897 | |||
| Apr 17, 2008 | 990 | 2007 | Carpenters Vacation Fund | 13-6227443 | |||
| Apr 10, 2007 | 990 | 2006 | Carpenters Vacation Fund | 13-6227443 | |||
| Apr 17, 2007 | 990 | 2006 | NYCDCC Apprenticeship, Journeyman | 13-2583087 | |||
| May 10, 2008 | 990 | 2007 | NYCDCC Apprenticeship, Journeyman | 13-2583087 | |||
| May 10, 2009 | 900 | 2008 | NYCDCC Apprenticeship, Journeyman | 13-2583087 | |||
| Apr 3, 2007 | 990 | 2006 | Carpenter Welfare Fund | 13-5615576 | |||
| Apr 7, 2008 | 990 | 2007 | Carpenter Welfare Fund | 13-5615576 | |||
| Apr 9, 2009 | 990 | 2008 | Carpenter Welfare Fund | 13-5615576 | |||
| Oct 13, 2008 | 990 | 2008 | Union Security Trust | 13-5553175 | |||
| Oct 10, 2007 | 990 | 2007 | Union Security Trust | 13-5553175 |
5500 Reports filed for the District Council, click to view each year.
| Date Received | Filing Type | Fiscal Year Ending | Trust Name | Plan Number | Total Liabilities | Total Receipts | |
|---|---|---|---|---|---|---|---|
| Apr 10, 2008 | 5500 | 2007 | Carpenter Pension Fund | 51-0174276 | |||
| Apr 10, 2007 | 5500 | 2006 | Carpenter Pension Fund | 51-0174276 | |||
| Apr 10, 2007 | 5500 | 2006 | Carpenters Welfare Fund | 13-5615576 | |||
| Apr 10, 2008 | 5500 | 2007 | Carpenters Welfare Fund | 13-5615576 | |||
| Apr 13, 2007 | 5500 | 2006 | Retirement & Pension Plan NYCDCC Employees | 51-0167964 | |||
| Apr 11, 2008 | 5500 | 2007 | Retirement & Pension Plan NYCDCC Employees | 51-0167964 | |||
| Oct 3, 2007 | 5500 | 2006 | Union Security Trust Fund | 13-5553175 | |||
| Oct 13, 2008 | 5500 | 2007 | Union Security Trust Fund | 13-5553175 | |||
| Oct 3, 2007 | 5500 | 2006 | Retirement Plan of Trustees | 13-1930084 | |||
| Oct 13, 2008 | 5500 | 2007 | Retirement Plan of Trustees | 13-1930084 | |||
| Apr 10, 2007 | 5500 | 2006 | Carpenter Annuity Fund | 51-0174279 | |||
| Apr 10, 2008 | 5500 | 2007 | Carpenter Annuity Fund | 51-0174279 | |||
| Apr 10, 2007 | 5500 | 2006 | Carpenter Vacation Fund | 13-6227443 | |||
| Apr 10, 2008 | 5500 | 2007 | Carpenter Vacation Fund | 13-6227443 |
Below is all LM-2 Reports filed for the District Council, click to view each year. (032-922)
| Date Received | Filing Type | Fiscal Year | Total Assets | Total Liabilities | Total Receipts | Total Disbursements | Total Membership | ||
|---|---|---|---|---|---|---|---|---|---|
| Sep 29, 2014 | LM-2 | 2014 Report | $64,088,251 | $1,427,947 | $32,860,222 | $42,222,038 | 19,140 | ||
| Sep 26, 2013 | LM-2 | 2013 Report | $73,698,954 | $74,437 | $31,148,625 | $32,056,897 | 18,860 | ||
| Mar 19, 2012 | LM-2 | 2012 Report | $72,729,977 | $7,108 | $34,660,705 | $13,567,408 | 21,131 | ||
| Nov 22, 2011 | LM-2 | 2011 Report | $68,269,387 | $6,782 | $31,244,836 | $31,178,250 | 21,798 | ||
| Sep 29, 2010 | LM-2 | 2010 Report | $62,443,926 | $1,432,096 | $32,276,584 | $59,300,211 | 23,501 | ||
| Oct 06, 2009 | LM-2 | 2009 Report | $58,193,112 | $1,700,013 | $53,049,510 | $41,665,341 | 24,816 | ||
| Sep 24, 2008 | LM-2 | 2008 Report | $47,586,471 | $2,178,591 | $58,028,935 | $39,049,178 | 25,515 | ||
| Sep 27, 2007 | LM-2 | 2007 Report | $32,679,947 | $1,713,102 | $45,518,392 | $43,247,257 | 24,857 | ||
| Oct 05, 2006 | LM-2 | 2006 Report | $23,028,874 | $1,664,918 | $44,130,236 | $44,094,876 | 24,015 | ||
| Sep 30, 2005 | LM-2 | 2005 Report | $23,138,518 | $3,953,753 | $39,691,330 | $38,817,299 | 22,107 | ||
| Oct 04, 2004 | LM-2 | 2004 Report | $22,887,757 | $1,435,067 | $37,928,272 | $38,408,615 | 22,855 | ||
| Sep 29, 2003 | LM-2 | 2003 Report | $22,122,672 | $1,210,280 | $32,328,877 | $30,633,503 | 23,127 | ||
| Oct 10, 2002 | LM-2 | 2002 Report | $22,985,856 | $1,070,616 | $32,961,853 | $32,991,436 | 24,058 | ||
| Oct 09, 2001 | LM-2 | 2001 Report | $20,877,299 | $1,144,920 | $34,880,406 | $34,613,324 | 24,027 | ||
| Oct 03, 2000 | LM-2 | 2000 Report | $14,746,914 | $810,534 | $17,671,440 | $17,739,233 | 23,992 |
Sunday, November 8, 2009
Rally Cry?
By Joel Cook
Some questions for the anonymous poster calling for the, Nov. 10th 4:00PM, protest at 395 Hudson St.
Who are you and why do you prefer to be anonymous?
What is the purpose of this rally?
Clearly there are reasons to be angry and there are changes to be made.
What are your long and short term goals?
How would you decide if this rally is a success or failure?
What are your tactics, do you plan to just stand there and yell, are you planning civil disobedience?
What are the possible consequences of such an action?
Would members risk arrest, physical violence, or possible charges from the DC?
I ask because I am of the opinion that resources should not be wasted and risk should not be taken unless these and other questions have been answered. You should think again if you are planning to march a bunch of members, probably good, involved ones, into a situation that could cause them harm and from which no good could come.
Don't get me wrong, I am all for direct action and civil disobedience, and I have no problem risking all the possible outcomes but without clear goals, a plan, and precaution I cannot see being involved in some rally "organized" by an anonymous poster on a few internet forums. For all anyone knows you could be working with the DC just to bait good dedicated members into trouble they aren't bargaining for.
I can understand the desire to remain anonymous, but you are asking for a lot of trust by asking members to show up for this. The problem is that you aren't giving any good reasons to give that trust.
(John's note, my sources say the rally has been canceled.)
Thursday, November 5, 2009
Page Six
We hear...THAT Douglas McCarron, the UBC general president is in town for a meeting with the Department Of Labor. While in town McCarron was spotted dining with Gov. Jon Corzine and Supervisor Frank Spencer in New Jersey.
Monday, November 2, 2009
Exclusive: UBC Hearing Testimony
Clearly, Unity Team union officers, motivated by greed, conducted the affairs of the council like a self-serving out of control criminal enterprise, that was both detrimental to the welfare and best interest of the district council and its members.
With the arrest of Mike Forde and revelations at the UBC Hearings of:
- Corruption
- Drug use
- Prostitution (see page 505)
- Hiding illegal weapons and drugs on our property
- Employees removing hair from their bodies in order to avoid detection of drug use
- Financial Mismanagement
- Cash Flow Mismanagement, costing $300 to $500 thousand per year in lost interest (see page 5)
- Trustees not adequately performing their duties
- Losing control over the management of employee spending
- Employees with serious driving offense are provided union cars and expense reimbursements
- Flawed systems of accountability in place (see page 93)
Since becoming Supervisor, Frank Spencer has undertaken "several measures" in an attempt to correct the problems plaguing the district council. While we applaud Mr. Spencer's initiatives, observers say they fall short of the mark.
The biggest obstacle to reform, is these "measures" are being implemented by the same people who have failed us and led us to where we are today.
It not assuring that Spencer named former "Unity Team" partner, Pete Thomassen, as "assistant" nor the fact that most of Forde's enablers are still in positions of power and trustees to our benefit funds. This is a major source of mistrust and anger among the rank and file.
The illusion that Spencer has cleaned house is just that; an illusion.
Why did Spencer name Thomassen, assistant supervisor?
Why would Spencer do this?
Is union politics trumping what is in the best interest of the membership?
Unfortunately, these questions remain unanswered, since Spencer has refused to answer written questions, or provide a forum to answer questions directly.
Below are links to the full transcripts for the UBC Hearings on October 15,16, 2009 held at the Javits Center in New York City.
| Date Received | Testimony | Notes |
|---|---|---|
| October 15, 2009 | Transcript pages 1 to 200 | |
| October 15, 2009 | Transcript Pages 201 to 412 | |
| October 16, 2009 | Transcript Pages 413 to 613 | |
| October 15, 2009 | Supervisor, Frank Spencer with Exhibits | |
| October 15, 2009 | Terrence R Mooney, Certified Public Account with Exhibits | |
| October 15, 2009 | Phil Newkirk, Assistant to General President Douglas McCarron with Exhibits | |
| October 15, 2009 | John Musumeci, UBC member with Exhibits | |
| March 11, 2010 | Final Hearing Committee Report |
Sunday, November 1, 2009
The distance between "us" and "them"
By Joel Cook
With regard to foreign powers, Thomas Jefferson and George Washington warned against the perils of "entangled alliances." They did so for good reason and we can see throughout the 20th century and into the 21st where our alliances have gotten us. Wars all over the globe at one time or another, foreign investors with their financial claws deep in our economy rendering even diplomatic confrontation nearly impossible.
We can see it with multinational corporations headquartered in the US while their labor is in some third world country and their bank accounts are "offshore."
These entanglements lead to a great deal of ambiguity, they muddy the water, and make it difficult and in some cases impossible to understand the consequences of certain negotiating tactics or actions. These men, along with Thomas Paine foresaw the consequences of getting too involved with their neighbors/competitors.
"The great rule of conduct for us, in regard to foreign nations, is in extending our commercial relations, to have with them as little political connection as possible. Europe has a set of primary interests, which to us have none, or a very remote relation. Hence she must be engaged in frequent controversies the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves, by artificial ties, in the ordinary vicissitudes of her politics, or the ordinary combinations and collisions of her friendships or enmities." --George Washington
"Peace, commerce, and honest friendship with all nations, entangling alliances with none."--Thomas Jefferson
The NYCDCC has committed the sin of entangling alliances with the wrong people. It has acted in a self serving manner, and in doing so has further damaged our credibility. By engaging in the alleged offenses the NYCDCC has rendered itself impotent when dealing with contractor negotiations.
How can the NYCDCC demand anything when it has played golf with, taken bribes from, and used illegal narcotics with their opponent? The optics are bad, and an ineffectual negotiating team will never accomplish the goals of, and meet the needs of the membership.
NYC residents voted in 1993 to impose a two-term limit and voted again in 1996 to maintain the earlier decision. In our name, Mike Forde endorsed Mike Bloomberg for a third term as mayor. Mr. Bloomberg has completely disregarded the will of NYC voters and NYCDCC has endorsed him. By supporting this illegitimate candidate the NYCDCC appears antidemocratic. This act clearly demonstrates their ability and willingness to ignore the will of voters be they NYC residents or members of the carpenters union. We must ask ourselves what was given up in this political horse-trading. Did this endorsement dull the historically sharp instrument that is organized labors greatest weapon, direct action?
During the Stella Doro BCGTM50 strike, support committee leaders attempted to get city officials to divest city employee pension funds from the union busting owners of Stella. The owner, Brynwood partners is an investment firm attempting to route the union from Stella in order to lower labor costs so they could sell it for a huge profit. Raising the question in my mind; why would union pensions be invested in companies that work to bust unions or just don't use union labor. At present it appears the workers have lost, the factory sold to Lance, the workers all laid off and the plant moving out of state. Had the support committee succeeded would things have turned out different?
The carpenters union, like many others is guilty in the same way. We invest our pension funds in companies that do not operate in the best interests of the American people, let alone the best interests of union members. Toll Brothers is a prime example, we have invested a large unconfirmed sum, and since Toll operates south of the Mason Dixon it is clearly not using union labor because there is almost no residential union labor in southern states.
By participating in these political campaigns and investing in corporations such as Toll we are accepting and validating what has become the status quo. Our involvement with the political system has at times yielded small victories but at what cost, and for the most part we have lost market share and membership rates partly because we rely on politicians to legislate for us.
We are the ones suffering due to fraud and mismanagement on the part of our so-called leadership and apathy and cynicism on the part of the membership. The distance between "us," and "them" has grown too far. It appears that those in the council who came from the field have lost touch with what it means to work with their tools. Many never even came from the field at all and got their position through connections and nepotism. They are so far from us that our faces have blurred into an inhuman mass to be taken from and used like a consumable resource. If this weren't true, if they saw the hardship we face and had to look us in the eyes every day chances are this corruption would be less likely.
It is our organizations corruption and corporatism that are part of a trend or a common thread if you will, a thread in a needle, firmly torqued in the sewing machine of cynicism and apathy, government subsidized capitalism and corporate greed, tirelessly stitching the burial suit of labor.
Many of us are in tough shape, having worked very little over the last 18 months. We read news stories and wait with baited breath as congress debates the next unemployment extension in hopes that it will pass before our benefits run out. We did not create this economic mess, we did not cause credit to stop flowing, we did not force lenders to lower standards for loans, we did not create the complex, and fraudulent mechanisms by which a very few individuals have gotten rich while seriously damaging the economy. Yet when the shit hits the fan, lending stops, and building abates, we are the ones who are first to get pink slips. While forced into desperate situations we get to hear accusations about our jobs being given away to non union and undocumented workers, our money being stolen, officials taking bribes, and getting paid way too much.
Here is a quote by Edmund Burke, "The only thing necessary for the triumph of evil is for good men to do nothing." Normally I find statements like this to be ambiguous and subjective. Words like "good, evil, and triumph" are left to individual interpretation. Yet in this instance our common goal is clear, as are the meanings of "good, evil, and triumph" we, the membership are all standing on common ground and we need to take our future into our own hands!
Thursday, October 29, 2009
Bound By Duty
This is in response to the post "Never Reveal By Word Or Deed"
By Richard Dorrough--Carpenters Local 370, Albany NY
Usually when the pro closet Union members talk about the oath, they leave out the "Unless legally authorized to do so." They stay away from that part because it shoots their attempt to silence members in the ass.
Lets discuss what the Law says your are “Legally Authorized” to do.
The UBC, in its usual pompous arrogance, had the audacity to write such a restriction because in their feeble little minds they see themselves above the US Constitution and free speech. Thanks to Fat Cat elitist International Union Officers, attempting to silence free speech in their ranks, we have court precedent already in place that holds such tripe as the UBC Oath in the same esteem as say dogs%*t!
Thank god we have judges who have laughed in the face of pompous arrogant wind bags who write such tripe. We do have the occasional local judge who is either paid for by the Unions or ran unopposed for office and went from box boy to judge who try to pander to these Union Carpetbaggers.
That is why we have the Supreme Court. They see to it that no individual little despot such as McCarron is allowed to impose regulations on any citizens that deny their rights under the US Constitution. So as a rule of thumb, as long as your speech does not compromise a specific action, you can talk about what ever the hell you want. For instance you cannot divulge the specifics of a contract in the middle of a negotiation, that would compromise that negotiation.
That’s it. End of story.
Disservice to the members. Now that’s a good one. Would you not agree that people like Forde who has been indicted, tested positive for drugs and who was in collusion with the rest of the council done a disservice to the Union.
Would you not say Mr. Spencer who has allowed this to happen as Eastern District Rep. has done a disservice to the members?
Would you not say people like Patrick Morin and his Empire Council cronies who have lost at least $33 million to Madoff and then taken substantial raises have done a disservice to the members?
New Jersey Carpenters BA Shawn Clark justified his use of a union charge card at strip clubs as business expenses. Is that a disservice to members?
Would you not say that Walter Ralph Mabry, who was the Executive Secretary-Treasurer of the Michigan Regional Council of Carpenters and the Chairman of the Board of Trustees of the Carpenters Pension Trust Fund accepting kickbacks was a disservice to the members?
On and on and on we could go. Many UBC members are suffering under McCarron's repressive regime and self serving rules and policies. McCarron and his cronies only interest is to line their pockets with the funds of hard working rank and file members and the quest for power.
McCarron and his cronies, like Regional Director Frank Spencer, conspire to destroy the democratic rights of rank and file members and support Council puppet regimes who have again been indicted for bribery, fraud and now drugs such as Forde.
They support the destruction of working Locals by allowing Regional Councils to raid their funds and seize control of all aspects of their existence so that a duly elected Local President can be locked out of his own Union Hall at the whim of some Council crackpot and McCarron cronies.
Locals that fight to retain their autonomy are crushed as they did with Carpenters Local 229 in Glens Falls NY in 2003.
McCarron and his council puppets destroyed the local, ruined its Pension Fund and robbed its Welfare fund. They tossed members into the street to send a message to all those that opposed his council appointed cronies.
This is how the UBC and McCarron “serves the needs of its rank and file members.”
Douglas McCarron is not only blight on Unionism but an arrogant and deceitful would be dictator who has destroyed the future and prosperity of the rank and file UBC member for the sake of power and money.
HIS Power and money for HIS cronies which they bleed from the hard work and sweat of the UBC membership. Is this a disservice to the members?? If you’re so worried about the UBCs laundry perhaps it should not be so dirty.
These so called Union Brothers have gotten away with these actions for so many years and the corruption is so deep because the rank and file has failed to do its DUTY to act in the best interest of the membership.
We each have a duty to expose this corruption. We each have a duty to expose theses rats to the thing they fear the most. Publicity.
By playing the three monkeys who never hear, see or say anything the membership has failed itself. These common criminals have entrenched themselves deep in the pockets of the membership.
Our internal system has failed to police itself, as is evident by an International who has supported these criminals, refused to answer to the membership, have acted in a pompous arrogant manner towards the rank and file rights and have fleeced the paycheck of the rank and file to line their own pockets.
Is this the system you would depend on to police itself?
It has already proven itself to be such a blatant dismal failure that one can only assume it is part of the corruption.
We have a demand called “Exhaust all internal remedies.”
When thousands of members letters go unanswered, when demands for clarification on the UBC Constitution and members rights are ignored, as they were in the 157 fiasco by Spencer and the International legal beagle. When blatant attempts to steal from the membership, such as the “Blue Card” scam, are ignored by the leeches who suck per capita tax out of each and every local and when the UBC Elected Officers ignore the demands of the rank and file who they work for than we have exhausted enough.
By providing a public forum that details this corruption, John and members like him serve the membership.
This public forum provides the membership access to financial records denied them by the UBC corrupt elements even though access to the documents is a legal right.
Here in this public forum, we see the lavish lifestyle the rank and file provides to these McCarron hand picked carpetbaggers.
We see outrageous salaries and pension contributions.
We see weeks in Hollywood Florida with golf sessions and $500 a night rooms.
All this while thousands of good Union members are out of work and many more have no health care.
In this public forum, we see the nepotism that has allowed the wives, cousin’s brothers, sisters and girlfriends of these corrupt individuals in the door of the UBC to get their cut of the rank and file dollar.
We see lavish gifts and payments made to connected lawyers and accountants who bleed millions from the rank and file pay checks.
Tell me, If it were not for these so called radical members utilizing this tool called the internet WHERE would they get access to the records needed to expose this corruption?
Can they expect to follow procedure and get the information from the likes of Frank Spencer and the UBC International who has repeatedly refused to comply?
You would rather support and work to perpetuate this corruption rather than let the non Union sector have a field day with the TRUTH.
You would have the rape of membership continue rather than have the non Union sector have a field day with the TRUTH.
You however would be the first to put a blow up rat outside of a job site if a contractor defies attempts to force them and their employees to become a part of this corruption by extortion actions.
We have misguided cretins making wanted posters of non Union contractors who refuse to pay kickbacks to the Carpenters Union when the actions of Forde, McCarron and Spencer makes them look like boy scouts.
We have organizers whose new motto is “Organize or Lie” because if they had to tell the TRUTH of the realities of UBC membership they would get laughed out of the game.
It is sad that as a rank and file members there are those that would rather allow corruption to remain in power rather than be embarrassed by the truth.
We have elected officers who work diligently to hide the truth and run interference for common UBC criminals rather than be embarrassed by the truth.
Members have a duty to act in the best interest of the membership and expose by any means possible the corruption that is the UBC.
The message that this and other sites like it sends to the non Union sector is that we the rank and File do NOT support the corrupt elements in the UBC and are working to expose and rid ourselves of the rat bastards.
In the middle of the negative publicity that McCarrons would be dictatorship, Spencers complicity, Fordes indictment, Mabry’s kickbacks and Patrirck Morins ignorance has generated, the non Union sector and public in general can see that the working men and woman of the UBC are standing up to this corruption.
They can see that the Union rank and file are a victim of and not part of this corruption.
They can see that the rank and file is as disgusted and embarrassed by this corruption as everyone else.
That message must be sent. The world needs to look in and see for itself that the rank and file which is the true essence of Unionism is being victimized by the same criminal element in the UBC that the public has found reprehensible.
To say nothing to avoid the embarrassing TRUTH makes us a willing part of the corruption.
The oath was written as a symbol of loyalty to a brotherhood and as a symbol of allegiance to that ideal which Unionism is meant to represent.
Since that oath has been commandeered by some California pimp like Douglas McCarron who systematically has reduced the UBC to his delusional version of Unionism we are no longer bound by that oath.
Since that oath has been commandeered by arrogant pompous wind bags such as Frank Spencer who has the audacity and delusion to insist that we work for him and are here to serve at his pleasure we are no longer bound by that oath.
Since that oath has been commandeered by the likes of Patrick Morin who has destroyed the future of rank and file Pensions, Annuities and Health funds while taking raises and bonuses for himself and his fellow cub scouts we are no longer bound by that oath.
Since common criminals such as Forde and the others indicted with him, Mabry, Clark and other examples of the UBCs brightest have commandeered that oath to try to silence those that would expose them we are no longer bound by that oath.
What we are bound by is duty. That duty is not to would be dictators such as McCarron. That duty is not to pompous arrogant windbags such as Spencer. That duty is not to common criminals such as Forde and the rest. That duty is to each other. That duty is to support the rank and file. By exposing these carpetbaggers and providing a source for all members to access information, John is fulfilling that duty. Perhaps instead of chastising him you might ask how you can help.
Wednesday, October 28, 2009
Never Reveal By Word Or Deed
I received this email from a UBC brother, I am posting his comment here so we can discuss the issue the brother brings up.
Please give your opinion on whether you agree or disagree with the brothers comments about using the internet to "put the Brotherhood's laundry out in public view."
It's the Obligation you made when you joined the UBC. "I do, of my own free will and accord, solemnly and sincerely promise - on my sacred honor - that I will never reveal by word or deed - any of the business of this United Brotherhood - unless legally authorized to do so."
You have put the Brotherhood's laundry out in public view on the WWW and done a disservice to all of us. I bet the open-shop organizations print that stuff out and chat about it.
Sunday, October 25, 2009
Wednesday, October 21, 2009
Page Six
We hear...THAT Douglas McCarron, the UBC general president is summoning key council leadership to Washington for a meeting on Thursday, October 22.
Sources say McCarron is not happy and wants to personally speak with Pete Thomassen, Dennis Sheil, Mo Leary, Ed Mc Williams and Scott Danielson. It seems for the last ten years, these overpaid clueless council clowns have been running the council where the left hand doesn't know what the right hand is doing!
In a report to the Hearing Committee criticizing the councils flawed supervisory model, Phil Newkirk, an assistant to McCarron wrote, "the councils supervisory model is fraught with problems to both effective supervision and potential for corruption."
He also wrote among other things, "had the anti-corruption committee's investigations been more thorough and aggressive, particularly to the governments allegations pertaining to high level of corruption within the council, if true, may have been discovered."
Read more Page Six stories...
Have a story SEND TIPS! E-mail jmusumeci157@gmail.com
Sunday, October 18, 2009
"Because That’s Where The Money Is"
Carpenters often ask, "What do they spend my dues and assessment money on?"
Listed below is the New York City District Council Of Carpenters, LM2 reports, covering the Forde years, from 2000 - 2009.
The reports show total membership has increased from 23,992 members in 2000, to 24,816 members in 2009, an increase of 894 members.
During the same period total receipts (that’s the money they take from you) has increase from $17,671,440 to $53,049,510, an increase of $35,378,070.
Also during the same period total disbursements (that’s the money they spent) has increase from $17,739,233 to $41,665,341 an increase of $23,926,108.
Can someone explain, how has this increase of almost $24 million in spending benefited the rank and file?
Has this fleecing of membership money improved our District Council?
What aspects of our lives have improved due to an outrageously expensive District Council under the “Unity Team” administration?
In other words, what have we gained from this appalling increase in spending, other than ridiculously high council salaries? (see ALL STARS, below)
With carpenters struggling everyday, and the current state of our district council, you would have to conclude the members are hardly getting the best bang for their hard earned bucks from these council "ALL STARS."
Let us know what you think, comment below!
Reports filed for the District Council, click to view each year. (032-922)
| Date Received | Filing Type | Fiscal Year | Trust Name | Total Assets | Total Liabilities | Total Receipts | Total Disbursements | Total Membership |
|---|---|---|---|---|---|---|---|---|
| Oct 06, 2009 | LM-2 | 2009 Report | $58,193,112 | $1,700,013 | $53,049,510 | $41,665,341 | 24,816 | |
| Sep 24, 2008 | LM-2 | 2008 Report | $47,586,471 | $2,178,591 | $58,028,935 | $39,049,178 | 25,515 | |
| Sep 27, 2007 | LM-2 | 2007 Report | $32,679,947 | $1,713,102 | $45,518,392 | $43,247,257 | 24,857 | |
| Oct 05, 2006 | LM-2 | 2006 Report | $23,028,874 | $1,664,918 | $44,130,236 | $44,094,876 | 24,015 | |
| Sep 30, 2005 | LM-2 | 2005 Report | $23,138,518 | $3,953,753 | $39,691,330 | $38,817,299 | 22,107 | |
| Oct 04, 2004 | LM-2 | 2004 Report | $22,887,757 | $1,435,067 | $37,928,272 | $38,408,615 | 22,855 | |
| Sep 29, 2003 | LM-2 | 2003 Report | $22,122,672 | $1,210,280 | $32,328,877 | $30,633,503 | 23,127 | |
| Oct 10, 2002 | LM-2 | 2002 Report | $22,985,856 | $1,070,616 | $32,961,853 | $32,991,436 | 24,058 | |
| Oct 09, 2001 | LM-2 | 2001 Report | $20,877,299 | $1,144,920 | $34,880,406 | $34,613,324 | 24,027 | |
| Oct 03, 2000 | LM-2 | 2000 Report | $14,746,914 | $810,534 | $17,671,440 | $17,739,233 | 23,992 |
Indicted former carpenter boss Mike Forde was at the top of the heap pulling down a yearly salary and disbursements of $702,568, followed by Pete Thomassen at $268,827 and Dennis Sheil at $253,500, these figures do not include compensation for pensions, annuity's, car allowances and other union-related expenses, which brings the total even higher.
The top earning council "ALL STARS" for 2009:
- Martin Devereaut $506,824
- Scott Danielson $214,224
- Maurice Leary $204,345
- Charles Harkin $195,014
- John Greaney $184,307
- Samuel Baley $183,452
- Edward McWilliams $179,792
- John Early $178,578
- Jeff Passante $178,210
- Richard Tuccillo $176,472
- Michael Koballa $176,337
- John Harkin $172,850
- Mike Zemski $171,760
- Robert Seeger $171,682
- Maryann June $169,572
- Joe Ventura $169,340
- Gary Shelton $166,538
- Paul Tyznar $164,270
- Sal Antonucci $161,908
- Ron Rawald $161,123
