Message from the Inspector General

On December 21, 2010, Judge Richard Berman upheld Review Officer Dennis Walsh’s decision to “veto” the following individuals from their union positions: Paul Willoughby of Local Union 157, John Holt of Local Union 926 and John Daly, from the former Local Union 608.

The Decision & Order resolves the three applications that challenge the determinations of court-appointed Review Officer Dennis M. Walsh to “veto” [remove] these three individuals from their union positions. The three applications include: (1) an order to show cause application filed on September 27, 2010 by Paul Willoughby, Conductor of Local Union 157 and also shop steward, which seeks to vacate the Notice of Veto issued by the RO on August 27, 2010; (2) an order to show cause application filed on October 4, 2010 by John Holt, a business representative of the District Council, which seeks to vacate the Notice of Veto issued by Walsh on September 3, 2010 and (3) an “appeal” filed on October 14, 2010 by John Daly, President of Local Union 608 and a business representative of the District Council, which seeks to vacate the Notice of Veto issued by Walsh on September 7, 2010.

Paul Willoughby was vetoed for “suspected violations of the Consent Decree” and specifically, that in or about 2001, Willoughby “aided and abetted and participated in a scheme” with two employees of the District Council Benefit Funds to convey bribe money from a construction contractor to one of the employees in order to “defraud said Benefit Funds of contributions which should have been paid by [the] contractor,” in violation of various provisions of New York Penal Law.

John Holt was vetoed as a result of , among other things, Holt’s “knowing violat[ion]” of the District Council’s Job Referral Rules when Holt “dispatch[ed] a member of a constituent local union to a job in the jurisdiction of the District Council” in September 2009.

John Daly was vetoed as a result of, among other things: (1) Daly’s violation of the District Council’s Job Referral Rules on January 19, 2009 and March 30, 2009 “by dispatching [three members] of a constituent local union to a job” without a Union referral and (2) Daly’s “false answer to questions posed by the [RO] staff regarding [these events],…which were material to an investigation of suspected violations of the Job Referral Rules.”

The Court finds that RO Walsh acted within the scope of his authority; that he afforded Willoughby, Holt and Daly ample process; and that his determinations were based upon substantial evidence and were not arbitrary or capricious. For the reasons outlined in the attached Decision & Order, the respective orders to show case brought by Willoughby and Holt and appeal brought by Daly are denied.

The Inspector General’s Office remains focused on achieving total compliance with the Out of Work List and New York City District Council of Carpenters rules and regulations including regulations laid forth in the Consent Decree. Violations will not be tolerated. Our goal is to operate a list that works efficiently and fairly for all members.

Judge Richard Berman’s Decision and Order (pdf)

Ig Message 1.6.11