Monday, August 10, 2009

District Council Of Carpenters Delegates To Meet


The agenda for the gathering has yet to be set, according to a union source, but it's safe to assume that Forde and his future with the embattled organization "will be a topic of discussion."

Forde remains on the job - "he's still here as of 10:30 this morning," the source said - but following the indictment, the question of whether he would keep his post was "under review," according to the union's attorney, Gary Rothman.

The politically powerful district council is made up of 11 constituent locals, each of whom is represented on the executive committee (Forde is also a member). The delegate body is made up of 88 members who are elected by the unions based a proportional system (similar to the House).

The head of the union isn't elected by the delegates, but through an election in which all the roughly 25,000 members are able to cast a vote. Forde was re-elected last year.

It's unclear (to me, anyway, and my source wasn't immediately certain) whether the delegates would be able to remove Forde, or even call for a vote of "no confidence."

"It's not something we have discussed internally," the source said. "The fact that there is any kind of vote I don't even know if it's possible. What anyone's intentions are, I also don't know. But if anyone is telling you anything is certain, they're either making it up or I’m out of the loop."


UPDATE: The source did some research and adds: "Contrary to what you may have heard, there is no bylaw provision for the removal of an officer by the delegate body."

"Bylaw provision" refers to the union's own internal rules, which govern the election of officers.

This isn't the first time Forde has faced bribery charges.

He was indicted on state charges in 2000 following an investigation by the Manhattan DA's office and tried twice. He never gave up his leadership post, even after he was convicted in the first trial - a decision that was later overturned - and acquitted in the second.

I Warned You!



Mail Out

Sunday, August 9, 2009

Local 157 Business Agent Named as Unindicted Co-Conspirator

According to the 29-count bribery and racketeering indictment a Local 157 business agent accepted cash payments from Contractor No. 1 who sources say is contractor James Murray owner of On-Par.

Murray went on the lam in Ireland after he was indicted on federal fraud and embezzlement charges in 2006.

Sources said he has returned and is believed to be helping the feds prosecute Carpenters boss Michael Forde.

Court records show he was freed on $8 million bond in November and began plea bargain negotiations with Assistant Manhattan U.S. Attorney Lisa Zornberg, who is prosecuting Forde.

Prosecutors refused to say if Murray is cooperating.

Prosecutors also would not confirm that On Par is one of six unnamed companies that paid bribes to Forde and his cohorts.

It appears Murray may be Contractor No. 1, the unindicted co-conspirator with the deepest involvement in the bribery scheme.

Contractor No. 1 is identified in the indictment as a major drywall company, as was On Par.

Among the numerous accusations linked to Contractor No. 1 is skulduggery at 63 Wall St., where On Par was a key player and Carpenters Local 157 had jurisdiction.

According to page 45 of the 29-count bribery and racketeering indictment, in or about 2003 Contractor No. 1 made cash payments to a unindicted co-conspirator who was a business agent at Local 157.

Sources believe the unindicted co-conspirator business agent maybe cooperating with the feds in prosecuting Forde.

Culture of Corruption, How Forde and His Unity Team Sold-Out The Carpenters

Cash in an envelope. In return, a promise that a development project will speed along, unhindered by the union's CBAs. A nod and wink to seal the deal.

It is the most clichĂ©d, unimaginative form of corruption — and its persistent hold on New York City Carpenter's elected leaders seems unrivaled in the UBC. Over the last few years alone, hundreds of working carpenters and shop stewards have been charged with corruption and expelled from the union.

Members have been arrested and charged with leaping at the chance to engage in this lowest-common-denominator crime, at times for laughably small sums of money.

On Wednesday August 5, 2009, federal authorities in a predawn roundup arrested Forde and his team of Cheats, Crooks and Cronies as they made their way to work.

The 29-count indictment which was unsealed in Federal District Court in Manhattan hours after the arrest charged New York carpenters union leader Michael J. Forde, seven other union officials, a contractor, and contractor’s representative with 29 counts of corruption, including racketeering, fraud, bribery, and perjury. According to the charges, bribes were paid out to union leaders to allow contractors around the city to pay cash to workers at below union-rate wages and therefore avoid paying benefits.

Here we go again, "nobody knows what the hell is going on," griped a veteran carpenter, the city's carpenters union is again embroiled in a corruption scandal.

Why is New York City's largest trade union so unshakably corrupt?

That answer, it turns out, has as many nuances as corruption itself. Interviews with law enforcement officials, prosecutors and, perhaps the best authority on the subject — those arrested in previous sweeps, reveal a culture of corruption so ingrained that it has become impossible to resist when the envelope appears.

A decade-long building boom has flooded New York with millions of development dollars, but sources say the latest round of corruption can be traced back to the signing of the 2001 collective bargaining agreement where Forde and his "Unity Team” sold-out the carpenters by "bargaining away" the job referral rules giving the contractors what they wanted—The unfettered right to "request" anyone they want from the out-of-work list!

Forde and his Unity Team negotiated this shocking contract change without notifying or seeking the approval of the 15-member negotiating team, the 88-member elected delegate body, the rank-and-file who were expressly opposed to the contractor request and the federal government who has oversight supervision.

Forde and his Unity Team had absolutely no constitutional authority to bargaining away the job referral rules. They have abused their authority, violated their oath of office, violated the 1994 Consent Decree and more importantly violated the trust of the membership they claim to represent.

“Rather than doing what they were elected to do — safeguarding wages and benefits for union members — they took cash and other bribes to turn a blind eye on contractors’ schemes to cheat the rank and file,” Joseph M. Demarest Jr., the head of the New York F.B.I. office said.

They turned the out-of-work list into an absurd paperwork dance, where "non requested" carpenters languish on a phony out-of-work-list and job site corruption is encouraged by "cash" contractors said several rank-and-file members who expressed dismay.

"It doesn't seem like it's ever going to change," said a carpenter who had supported Forde.

History Lesson 101, How the Carpenters were sold-out:

December of 1999, as our council emerged from International supervision, The Unity Team, among other things, campaigns against the "contractor request" promising to eliminated if elected!

September 7, 2000 The Manhattan district attorney charged 38 union officials including Michael Forde , contractors and reputed mobsters yesterday with bribery, bid-rigging or other racketeering schemes that he said siphoned millions of dollars from construction projects in the last two years.

May of 2001, John Greaney, Local 608’s President/business manager mailed questionnaires to the Local’s membership to ascertain its views on issues relevant to the collective bargaining. Greaney learned through compiling data from completed questionnaires that the members wanted to “eliminate the contractor request”, Greaney then presented his membership’s “collective sentiment” to The Unity Team, but the change was not made.

June 2001, The Unity Team "bargained away" the job referral rules in the 2001 contract negotiations without notifying or seeking the approval of the 15-member negotiating team, the 88-member elected delegate body, the rank-and-file and the federal government who has oversight supervision.

November 5, 2004, former Independent Investigator, Walter Mack filed a report on the 50/50 Rule and Request System. Mack concluded that the “current request system reduces the out-of-work-list into a paperwork dance with little value to anyone but the contractors who can select the Carpenters they want to work for them.” (read Independent Investigator Walter Macks November 5, 2004 report about the 50/50 rule and the request system.)

April 12, 2005, we learn for the VERY FIRST TIME, the disastrous 2001 contract change made by The Unity Team. Unity Team President Peter Thomassen, testifying before judge Haight (click to read testimony) about the 2001 contract negotiations said "we enhanced the request system for the contractors of the association". We gave them what they wanted—the unfettered "right to request" anyone they want from the out-of-work list.

July 2005, After learning the truth about the 2001 contract negotiations, a member of the 2001 negotiating committee commented "no one ever informed me about the change in the job referral rules, I was shocked to find out about it."

September 15, 2005, Federal prosecutors ask judge Haight to hold The Unity Team in contempt for changing the union's job referral system without government approval, arguing that the changes will encourage more corruption.

December 2005, As The Unity Team campaigns for re-election and as the truth about the 2001 contract becomes more know to the membership, The Unity Team promises to fix the job referral rules and address the "contractor request" issue.

February 20, 2007, after years of costly ligation, The Unity Team was found GUILTY OF CONTEMPT by the United States Court Of Appeals for violating provisions of the Consent Decree when they eviscerated the job referral rules with the 2001 contract change, which has encouraged job site corruption by "cash" contractors!

August 11, 2008, citing continued corruption, Judge Charles S. Haight Jr. of Federal District Court in Manhattan wrote, The Unity Team "has not demonstrated they can combat corruption and adequately police themselves without further government involvement and court supervision."

October 24, 2008,
Federal District Judge Charles S. Haight has scheduled a hearing. The Court will hear oral arguments on the issue of remedy for the contempt charge against The Unity Team. Click for transcript of hearing

December 2008, As The Unity Team again campaigns for re-election they deny any wrong doing and deny bargaining away the job referral rules in the 2001 contract.

May 26, 2009, after years and costly litigation, Federal District Judge Charles S. Haight issued his final order and judgment of contempt and remedy to the 2001 collective bargaining agreement.

August 5, 2009, Forde and nine others - including two mob associates - were charged with taking $1 million in bribes to let contractors cheat workers of wages and benefits.

This is why you cannot trust anything The Unity Team says!

Saturday, August 8, 2009

Carpenter's make FBI’s Top Ten News Stories for the Week Ending August 7, 2009


1. Washington Field Office: Former Congressman William J. Jefferson Found Guilty

After hearing evidence for more than one month in a federal court in Alexandria, Va., a jury found Jefferson guilty on 11 charged counts, including solicitation of bribes, honest services wire fraud, money laundering, racketeering and conspiracy. Jefferson was acquitted on three counts of honest services wire fraud, an obstruction of justice charge and of violating the Foreign Corrupt Practices Act. Full Story

2. Los Angeles: Three Sentenced to Federal Prison for Illegally Exporting Highly Sensitive U.S. Technology to China

In two separate cases, three men have been sentenced to federal prison for attempting to transport sensitive and advanced U.S. technology to the People's Republic of China (PRC). The defendants in the two cases were charged under the International Emergency Economic Powers Act (IEEPA) and Export Administration Regulations (EAR) for procuring and illegal exporting sensitive technology in violation of United States export laws. Full Story

3. Chicago: Chicago Man Arrested for Interfering with Operation of CTA Trains and Busses

Marcel Carter, age 20, was arrested by officers of the Chicago Police Department (CPD) and subsequently turned over to members of the Chicago FBI’s Joint Terrorism Task Force (JTTF). The JTTF conducted additional investigation resulting in the filing of a criminal complaint charging Carter with Interfering with the Operation of a Mass Transit Vehicle, which is a felony offense. Full Story

4. New York: Ten Charged in Carpenters Union Corruption Case

An indictment was unsealed Aug. 5, 2009, charging the head of the Carpenters Union District Council in New York City and seven other Carpenters Union officials, one construction contractor, and a contractors’ representative, with a series of offenses stemming principally from a scheme by which Carpenters Union officials, in return for bribes, allowed construction contractors to avoid full payment of union wages and benefits at various job sites in New York City. Full Story

5. Las Vegas: USA Capital President Pleads Guilty to Wire Fraud

Joseph D. Milanowski, the owner of a Nevada investment company, who misappropriated over $50 million of client monies to fund loans for his own pet projects, pled guilty on Aug. 4th, 2009, to wire fraud. Full Story

6. Los Angeles: New York Rabbi Pleads Guilty to Scheme to Defraud I.R.S.

Grand Rabbi Naftali Tzi Weisz, the Grand Rabbi of Spinka, a religious group within Orthodox Judaism, pled guilty this morning to a criminal conspiracy charge, admitting that he worked with others to obstruct the Internal Revenue Service by soliciting charitable donations with secret promises to refund donors the vast majority of the money they “donated.” Full Story

7. Newark: FBI Arrests Two in Foreclosure Scheme

Garth Celestine and Phil A. Simon – better known collectively as “Home Savers Consulting Corporation” – were arrested and charged with attempt and conspiracy to commit wire fraud in connection with a home foreclosure scheme. Celestine and Simon caused lenders to fund more than $10 million worth of fraudulent loans and stole $1.5 million worth of equity from the properties. Full Story

8. Washington Field Office: Husband of Former Army Officer Pleads Guilty to Laundering Money Stolen From Iraq

William Driver, a New Jersey accountant, pled guilty to laundering portions of more than $300,000 stolen from the Coalition Provisional Authority (CPA) in the Republic of Iraq and brought back to the United States by his wife, a former U.S. Army lieutenant colonel. Full Story

9. Albany: Three Charged in Wire Fraud Involving Kickback Scheme

A federal grand jury returned a 29- count indictment charging defendants Joseph Queri, Jr., Benjamin Viloski, and Gary Gosson relating to a conspiracy and scheme from 1998 through 2005 to receive and conceal kickback payments in connection with the development of new Dick’s Sporting Goods, Inc. stores. The indictment alleges that there were approximately $2 million in kickbacks paid. Full Story

10. Atlanta: Former Polk County Jail Sergeant Pleads Guilty to Federal Civil Rights Charges

Joshua David Lowe, a former sergeant at the Polk County Jail, pled guilty in federal court to a civil rights charge of using excessive force against an inmate in his custody. Lowe admitted during the guilty plea hearing that he abused his authority as a law enforcement officer when he unnecessarily and repeatedly struck an inmate in his head and face while the inmate was strapped in a restraint chair. Full Story

On Par files $100 Million Dollar Lawsuit Against NYCDC

Here it is for your reading pleasure; members have been emailing me requesting that I re-post the On Par lawsuit (read below) which was original posted on 7/31/2008.

Contractor owner of On Par Contracting James Murray went on the lam in Ireland after he was indicted on federal fraud and embezzlement charges in 2006.

Sources said he has returned and is believed to be helping the feds prosecute Michael Forde, head of the politically powerful District Council of Carpenters.

Court records show he was freed on $8 million bond in November and began plea bargain negotiations with Assistant Manhattan U.S. Attorney Lisa Zornberg, who is prosecuting Forde.

On April 2, 2008, On-Par Contracting filed a $100 million dollar lawsuit against the NYC District Council of Carpenters alleging among other things that the District Council has allowed its officers to utilize a corrupt scheme whereby preferential treatment was given to certain companies in exchange for secret payoffs and knowingly permitted its officers to participate in a conspiracy to manipulate and corrupt the job referral system.

On-Par1-08-cv-03329-CSH_0011(2)

4 comments:

Anonymous said...

Let me be the first person to raise his disgust and point to the simple fact enough is enough.

The two suits pending will shed light all over the DC's territory but pay close attention to the interior Anti Corruption efforts as sanctioning, fostering, dare I say supporting the $$ making schemes. Yes basically there's no other explanation. We've all said it to each other on the job and for 130+ years there's simply been no other means to an end quite as obvious as where we are at today in defining the standards of corrupt union power in 2008.

Where else would a corrupt contractor under indictment while a fugitive have the balls to sue the organized crime faction with whom he's voluntarily signed on with.

Moving onto Lcl 157, I've never been assigned to On Par on the east sidehow active were they there.

Hey O'D & B, I'm putting you on notice.
You'll be facing more than these two suits because of this 157 thing. This Mr. Rothman is why Spence isn't answering questions and the DC ran around the DOL Laws.
You guys are are so caught ( Up in you own %@*^ )

Anonymous said...

Overpaid Scott Danielson should be brought up on charges and kicked out of the union for letting this sham go on.

Anonymous said...

Wow.

Mike Forde has already been fined for doing the manipulation that they say - removing skills, adding skills, etc. Talk to Ed Maudsley about lab furniture.

It was only a matter of time before someone did this.

Fugitive Contractor Returns From Hiding to Testify Against Carpenter Boss Michael Forde

by Brian Kates

Michael Forde may not be so pleased when he finds out that James Murray may be coming back to testify in a case involving him.

Contractor James Murray went on the lam in Ireland after he was indicted on federal fraud and embezzlement charges in 2006.

Sources said he has returned and is believed to be helping the feds prosecute Michael Forde, head of the politically powerful District Council of Carpenters.

Murray, owner of On Par Contracting, slipped into the country late last year and turned himself in.

Court records show he was freed on $8 million bond in November and began plea bargain negotiations with Assistant Manhattan U.S. Attorney Lisa Zornberg, who is prosecuting Forde.

Indicted with Forde in the 29-count bribery and racketeering indictment is contractor Finbar O'Neill, a reputed Luchese crime family associate; Joseph Olivieri, a reputed Genovese crime family associate, and Carpenters Local 608 chief John Greaney.

Also indicted were shop stewards Michael Brennan, Brian Carson, Joseph Ruocco, John Stamberger and Michael Vivenzio.

Prosecutors refused to say if Murray is cooperating; his lawyer did not return calls for comment.

Prosecutors also would not confirm that On Par is one of six unnamed companies that paid bribes to Forde and his cohorts.

It appears Murray may be Contractor No. 1, the unindicted co-conspirator with the deepest involvement in the bribery scheme.

Contractor No. 1 is identified in the indictment as a major drywall company, as was On Par.

Among the numerous accusations linked to Contractor No. 1 is skulduggery at 63 Wall St., where On Par was a key player, and 3536 Cambridge Ave., a Bronx building in which Murray reportedly was a major investor.

Olivieri, the reputed Genovese mob soldier, is charged with perjury for lying about illicit finagling to get his excavation company a $1 million job at the Cambridge Ave. building and other Bronx job sites.

Contractor No. 1 was so enmeshed in the scheme that when he began to worry that Greaney might rat them out, Brennan, the indicted shop steward, assured him that would never happen.

Then, he added menacingly, if it did, "We'd f---in' have to kill him," the indictment said.

Brennan turned himself in to prosecutors Thursday.

Murray skipped to Ireland after he was indicted on charges similar to those leveled against Forde.

Prosecutors say he pocketed $10 million by paying workers off the books, hiring nonunion workers and claiming them as union members and misrepresenting the number of union workers on his work sites.

Culture of Corruption: Forde and His Team of Cheats, Crooks, and Cronies

Wednesday August 5, 2009, federal authorities charged New York carpenters union leader Michael J. Forde, seven other union officials, a contractor, and contractor’s representative with 29 counts of corruption, including racketeering, fraud, bribery, and perjury. According to the charges, bribes were paid out to union leaders to allow contractors around the city to pay cash to workers at below union-rate wages and therefore avoid paying benefits.

The New York District Council of Carpenters and Joiners of America has been here before. In 1990, the union had been infiltrated by organized crime and the federal government came in, cleaned out union leadership, and established monitoring. Yet, here we are again.

Union leader Forde was hailed as a reformer in 2000, after his predecessor was indicted on corruption charges, but his tenure has been plagued by no fewer than two bribery charges-—one ending in an overturned conviction and the other in acquittal. This apparently didn’t set off any alarms for court-appointed and union-paid monitor, William Callahan, who was almost removed in 2007 for a lack of evidence he was actually doing his job—but a federal judge refused to remove him. Fast forward two years.

Last week's slew of charges is the activity the court-appointed corruption monitor is in place to prevent. Clearly the current system of corruption monitoring isn’t working.

Forde and His Team of Cheats, Crooks and Cronies are specifically charged with the following offenses:

Ct Charge Defendant(s) Maximum Penalty
1 Racketeering
Conspiracy
FORDE, GREANEY,
HAYES, O'NEILL,
BRENNAN
20 years in prison;
fine of the greater of
$250,000 or twice the
gross gain or loss from
the offense
2 Racketeering FORDE, GREANEY, HAYES, BRENNAN 20 years in prison; fine of the greater of $250,000 or twice the gross gain or loss from the offense
3 Conspiracy (as to Contractor #1) FORDE, GREANEY, O'NEILL, BRENNAN, OLIVIERI, CARSON, RUOCCO, STAMBERGER, VIVENZIO 5 years in prison; fine of the greater of $250,000 or twice the gross gain or loss from the offense
4 Conspiracy (as to Contractor #2) FORDE, GREANEY, HAYES 5 years in prison; fine of the greater of $250,000 or twice the gross gain or loss from the offense
5 Conspiracy (as to Contractor #3) GREANEY, HAYES 5 years in prison; fine of the greater of $250,000 or twice the gross gain or loss from the offense
6 Conspiracy (as to Contractor #4) GREANEY, HAYES 5 years in prison; fine of the greater of $250,000 or twice the gross gain or loss from the offense
7 Wire Fraud and Deprivation of Honest Services (as to Contractor #1) FORDE, GREANEY, BRENNAN, O'NEILL, CARSON, RUOCCO, STAMBERGER, VIVENZIO 20 years in prison; fine of the greater of $1 million or twice the gross gain or loss from the offense
8 Wire Fraud and Deprivation of Honest Services (as to Contractor #2) FORDE, GREANEY, HAYES 20 years in prison; fine of the greater of $1 million or twice the gross gain or loss from the offense
9 Wire Fraud and Deprivation of Honest Services (as to Contractor #3) GREANEY, HAYES 20 years in prison; fine of the greater of $1 million or twice the gross gain or loss from the offense
10 Wire Fraud and Deprivation of Honest Services (as to Contractor #4) GREANEY, HAYES 20 years in prison; fine of $1 million or twice the gross gain or loss from the offense
11 Unlawful Acceptance of Payment by Labor Representative FORDE, O'NEILL 5 years in prison; fine of $15,000
12 Unlawful Acceptance of Payment by Labor Representative GREANEY 5 years in prison; fine of $15,000
13 Unlawful Acceptance of Payment by Labor Representative GREANEY, HAYES 5 years in prison; fine of $15,000
14 Unlawful Payments to Labor Representatives OLIVIERI 5 years in prison; fine of $15,000
15 Unlawful Acceptance of Payments to Labor Representative HAYES 5 years in prison; fine of $15,000
16 Unlawful Acceptance of Payment by Labor Representative BRENNAN 5 years in prison; fine of $15,000
17 Unlawful Acceptance of Payment by Labor Representative VIVENZIO 5 years in prison; fine of $15,000
18 Unlawful Acceptance of Payment by Labor Representative CARSON 5 years in prison; fine of $15,000
19 Unlawful Acceptance of Payment by Labor Representative STAMBERGER 5 years in prison; fine of $15,000
20 Unlawful Acceptance of Payment by Labor Representative RUOCCO 5 years in prison; fine of $15,000
21 Acceptance of Loan to Influence Operations of Employee Benefit Plan OLIVIERI 3 years in prison; fine of the greater of $250,000 or twice the gross gain or loss from the offense
22 Perjury OLIVIERI 5 years in prison; fine of $250,000
23 Perjury FORDE 5 years in prison; fine of $250,000
24 Perjury GREANEY 5 years in prison; fine of $250,000
25 Perjury HAYES 5 years in prison; fine of $250,000
26 Perjury BRENNAN 5 years in prison; fine of $250,000
27 Perjury CARSON 5 years in prison; fine of $250,000
28 False Statements RUOCCO 5 years in prison; fine of $250,000
29 Obstruction of Justice BRENNAN 10 years in prison; fine of $250,000 or twice the gross gain or loss from the offense

GREANEY, 49, of Yonkers, New York; HAYES, 38, of New York, New York; OLIVIERI, 54, of Yonkers, New York; CARSON, 49, of the Bronx, New York; RUOCCO, 49, of East Stroudsburg, Pennsylvania; STAMBERGER, 52, of Brick, New Jersey; and VIVENZIO, 61, of Mahwah, New Jersey, were arrested this morning. FORDE, 54, of Woodside, New York, is expected to surrender to federal authorities later today. O'NEILL, 44, of Paramus, New Jersey, and BRENNAN, 53, of Bushkill, Pennsylvania; remain at large.

Friday, August 7, 2009

Forde Associate Indicted

The Record

Finbar O’Neill, a developer connected with the Soldier Hill tract in Paramus, has been indicted in New York on charges of racketeering conspiracy, wire fraud and unlawful acceptance of a payment.

O’Neill pleaded guilty to felonies in two New York cases in 2004, including one in which he admitted falsifying business records in a scheme that resulted in a guilty plea by New York state Sen. Guy Velella, R-Bronx, on one count of bribery.

The latest indictment, which was unsealed Thursday by the U.S. Attorney’s Office in New York’s Southern District, also names nine carpenters union officials and a contractor’s representative. O’Neill is a contractor and developer based in Hackensack and the South Bronx. He is named in four of the indictment’s 29 counts, including conspiracy, racketeering conspiracy, wire fraud and unlawful acceptance of payment by a labor representative.

If found guilty on all counts, O’Neill, who remained at large Friday afternoon, could face up to 50 years in prison.

O’Neill did not return a request for comment. Louis Kaufman, a spokesman for O’Neill and the Soldier Hill project manager, declined to comment.

The fate of the Soldier Hill tract has been a source of controversy and legal dispute since developers first proposed building on it six years ago. The 35-acre tract is easily the largest undeveloped piece of land in Paramus.

The Paramus Borough Council opposes the plan, and council members say that O’Neill's past is also a concern. Councilwoman Maureen O’Brien described the most recent indictment as “frightening.”

“This is someone who is not trustworthy, so you have to wonder how trustworthy the development is,” she said.

O’Neill also may be connected with the Northern Park development in Rochelle Park. The development company, Northern Park LLC, is based at the same Hackensack address as several of O’Neill’s business interests, including Shamrock Creek LLC, the O’Neill Group, the Gabriel Group and Dutchess Landing LLC. Shamrock Creek is the company involved in developing the Soldier Hill property in Paramus. According to Kaufman, the O’Neill Group is an umbrella organization for the other businesses at that address.

Rochelle Park Administrator Michael Mariniello said the township has sued Northern Park LLC to halt development in an area prone to flooding and that building permits for the project are pending Zoning Board approval.

One concerned resident, Heather Lum, questioned how permits were obtained from the state Department of Environmental Protection.

“We always felt these permits should never have been issued,” she said.

The indictment unsealed on Thursday charges that O’Neill was involved in a scheme in which carpenters union officials accepted bribes in exchange for allowing contractors to pay lower-than-scale wages and benefits at various job sites in New York City.

O’Neill is accused of delivering bribes to Michael Forde, the head of the Carpenters Union District Council in New York City.

Forde is charged with accepting payments from contractors that defrauded the union by employing non-union labor and paying union members below-union rates.

Tainted Carpenters Union Boss Michael Forde still fave with Pols


Six weeks ago, carpenters union head Michael Forde gave Mayor Bloomberg a warm embrace - and his powerful group's support for mayor's reelection bid.

Michael Forde, the indicted boss of the city's carpenters, is a tough-talking union chief with Teflon skin and friends in high places - and low.

The beefy, $273,000-a-year union chief, born in the Bronx and raised in Queens, was elected head of the 25,000-member District Council of Carpenters in 1999 on the promise he'd clean house after his predecessor was convicted of stealing union money.

He's been in prosecutors' sights ever since.

All the while, politicians have gripped and grinned and kissed Forde's ring in pursuit of his endorsement - and his council's campaign cash.

Six weeks ago, a smiling Mayor Bloomberg embraced Forde, 54, at a rally where he received the group's endorsement.

"I don't know whether any of the charges...are true or not," Bloomberg stammered Wednesday after learning the Manhattan U.S. Attorney indicted Forde on 29 counts of racketeering and bribery.

"I'll leave that to the courts," Bloomberg said.

Among Forde's co-defendants are two mob associates, a mob-linked contractor, and seven union officials.

Nevertheless, the mayor said he was "thrilled" to have the endorsement of the council, which the feds have monitored since 1994 under a decree in another racketeering case.

Hillary Clinton happily accepted the carpenters' endorsement of her Senate run in 2000, four months before the Manhattan DA indicted Forde for taking bribes from mobsters. His conviction was tossed after some jurors admitted reading news accounts of the case. He was acquitted last year in a retrial.

When Clinton left the Senate, the carpenters pushed Caroline Kennedy as her replacement. Kennedy later dropped out.

As probes of Forde rolled forward, politicians continued to hold out their hands - and not just for handshakes.

The group has given out $3 million to politicians since Forde took over. It swelled Gov. Paterson's campaign chest by $40,000. His potential rival, state Attorney General Andrew Cuomo, has taken $61,500, including $10,000 in June. Neither has received a formal endorsement.

The council's largesse is bipartisan. The group endorsed Republican Gov. George Pataki for reelection in 2002 and Democrat Eliot Spitzer in 2006.

In the last 10 years, it has lavished $232,250 on the state Senate Republican campaign committee and $216,000 on the Assembly Democratic committee.

Councilman Bill de Blasio, running for public advocate, has taken $11,200 from the carpenters and Councilwoman Melinda Katz received $4,950.

Former Assemblyman and union leader Brian McLaughlin, got $10,600 in carpenter loot before he was sentenced to 10 years for stealing millions from Little Leaguers, contractors and union members.

And why not? Forde's philosophy is basic: "We are going to work with the people who will work with us," he often said.

The $273,000-a-year union boss, released on $75,000 bond, reported for work yesterday as usual, his lawyer said.

Position Is Uncertain for Indicted Leader of Carpenters’ Union

By WILLIAM K. RASHBAUM

On Thursday, a day after his indictment on federal racketeering and bribery charges, Michael J. Forde, the head of the carpenters’ union in New York City, went to work.

Mr. Forde, who was indicted on state bribery charges in 2000 and tried twice, has never relinquished his position in the union. (The first trial ended in a conviction that was later overturned, and the second in a mistrial.)

Now a lawyer for the union, the New York City District Council of Carpenters and Joiners, which represents 20,000 carpenters, said it was weighing what to do about Mr. Forde’s continued stewardship.

“The matter is under review,” said the lawyer, Gary P. Rothman of O’Dwyer & Bernstein. “Right now he’s not out.”

Mr. Rothman could not say when the union would make a decision on whether Mr. Forde should be suspended, take a leave of absence or remain in his position.Mr. Forde’s lawyer, Andrew M. Lankler, declined to comment.

The union represents one of the largest construction trades in the city, a work force that has long struggled with leadership that prosecutors say has been tainted by mob influence and corruption.

Mr. Forde, who was at a union conference in Nova Scotia on Wednesday when a 29-count indictment was unsealed, flew back to New York to surrender to agents of the F.B.I. and the Department of Labor Inspector General’s Office of Labor Racketeering and Fraud Investigations.

Mr. Forde was charged with, among other crimes, taking bribes and helping contractors avoid paying fees to the union’s various funds, which finance pensions, health care, vacations and other benefits for union members.

At his arraignment on Wednesday afternoon in United States District Court in Manhattan, Mr. Forde, along with nine other defendants, pleaded not guilty.

The assistant United States attorney prosecuting the case, Lisa Zornberg, said that Mr. Forde, 54, tested positive for cocaine and marijuana use. (Of the nine other defendants, seven either tested positive for drugs or admitted using them; two refused the tests, she said.)

The lawyer for the union, Mr. Rothman, said, “I’m sure that Mr. Forde still enjoys a broad base of support from his membership and that people have empathy and sympathy for someone who might have a personal problem.”

The District Council, an umbrella organization comprising 11 carpenter unions in the New York City area, will consult with its parent union, the United Brotherhood of Carpenters and Joiners of America, about how to proceed with Mr. Forde, Mr. Rothman said. “We shouldn’t rush into something without careful consideration,” he added.

The United Brotherhood of Carpenters has a storied place in the history of organized labor. But the New York City District Council has for several decades been tainted by corruption and mob influence, with leaders who routinely sold out their work force for their own gain.

Pocono Residents Named in NYC Union Corruption Indictment

NEW YORK – Two men who reside in the Poconos are named in an a federal indictment charging the head of the Carpenters Union District Council, seven union officials and two others with corruption.

Michael Brennan, 53, of Bushkill and Joseph Ruocco, 49, of East Stroudsburg, are shop stewards of Local 608. Brennan was among several arrested Wednesday. Ruocco remains at large.

They and the others are accused of unlawfully receiving money, loans, or other things of value from contractors, in a total amount of approximately one million dollars. In exchange for the bribes, the defendants allowed and helped certain contractors to defraud the union and its benefit funds out of millions of dollars by permitting the contractors to, among other things, pay union members cash at below-union rates, without benefits; employ illegal aliens and non-union workers on their job sites; and avoid payment to the union benefit funds in violation of applicable CBAs.

Not all of the defendants are named in all of the charges, but Brennan and Ruocco both face 20 years in prison if convicted of some of the crimes they are accused of committing.

Thursday, August 6, 2009

Carpenter Bigs Nailed for Bribes

The city's top carpenters union official and nine others - including two mob associates - were charged Wednesday with taking $1 million in bribes to let contractors cheat workers of wages and benefits.

Michael Forde, head of the District Council of Carpenters and a major Democratic Party fund-raiser, took bribes for nearly 15 years to let contractors hire undocumented workers and pay some of them below the union rate, prosecutors said. He faces 20 years behind bars, if convicted.

The charges came just six weeks after Mayor Bloomberg hugged Forde at a rally where the 21,000-member district council endorsed him for a third term.

Bloomberg said the indictment was a "surprise" to him.

"It's sad and I don't know whether it's true, but you know, it's the men and women of the carpenters union that have endorsed me, and I'm thrilled to have it. We'll see what the courts say," he said.

Forde delivered the district council's endorsement to Hillary Clinton in her 2000 Senate run, four months before he was indicted for taking bribes from mobsters. He was acquitted in a retrial last year after his earlier conviction was tossed.

Also indicted was Finbar O'Neill, 44, of Paramus, N.J, is accused of delivering the cash payments to Forde, 54, of Queens. O'Neill, a reputed Luchese crime family associate who was sentenced to probation in a money-laundering scheme that led to the conviction of ex-state Sen. Guy Velella (R-Bronx) in 2004.

Joseph Olivieri, director of the Association of Wall-Ceiling and Carpentry Industries, also was charged. Olivieri reputedly has ties to the Genovese crime family.

Also charged were John Greaney, president of Carpenters Local 608; Brian Hayes, Local 608 business agent, and shop stewards Michael Brennan, Brian Carson, Joseph Ruocco, John Stamberger and Michael Vivenzio.

Forde was released on $750,000 bond and ordered to undergo drug testing after testing positive for cocaine and marijuana. Eight other defendants arraigned yesterday were released on bond.

Acting Manhattan U.S. Attorney Lev Dassin said the indictment shows "continuing corrupting at the highest ranks of the union's leadership."

The scheme involved five unnamed crooked contractors. The corrupt union officials let contractors pay carpenters in cash and off the books at below union rates, prosecutors said. The schemers were not above threats of violence. When a contractor worried Greaney might rat them out, prosecutors said, Brennan told him that wouldn't happen.

If it did, Brennan said, "We'd ... have to kill him," according to the indictment.

Wednesday, August 5, 2009

Carpenters’ Union Chief and 9 Others Indicted in Corruption Inquiry

By William K. Rashbaum

Nearly two decades after the federal authorities moved against New York City’s carpenters’ union to loosen the mob’s grip and end a culture of contractor bribery, they have leveled corruption charges against the union’s leader and nine other union officials and contractors. The charges, announced on Wednesday, include racketeering, bribery, fraud and perjury.

The men were named in a 90-page indictment [pdf] that alleges crimes similar to some set out in a civil racketeering lawsuit that Manhattan prosecutors brought against the union, the New York District Council of Carpenters and Joiners of America, in 1990. That case led to a 1994 consent decree and, years later, a court-appointed corruption monitor; both are still in place, and the charges seem to raise questions about the effectiveness of the current monitor.


The 29-count indictment was unsealed in Federal District Court in Manhattan hours after a predawn roundup in which many of the officials were arrested on their way to work. It charges that in exchange for bribes valued at about $1 million, they helped corrupt contractors steal millions of dollars more from the union and its benefit funds by allowing contractors to pay members cash wages below union scale without benefits, hire illegal aliens and nonunion workers and skip contributions to the union’s benefit funds.

The 21,000-member district council, which oversees 11 locals unions around New York City, has remained not only a major player in the city’s labor movement but also a major force in its politics, despite a history of mob influence, labor racketeering and bribery.

Indeed, just six weeks ago, Mayor Michael R. Bloomberg’s re-election campaign put out a news release announcing that the union had endorsed his bid for a third term.

The release included a video clip showing Michael J. Forde, the district council’s executive secretary-treasurer, who is now indicted, giving the mayor a rousing introduction at a union event and sealing his support for Mr. Bloomberg with a hug.

The federal charges unsealed on Wednesday, a result of a lengthy investigation by Manhattan prosecutors, the F.B.I. and the Department of Labor Inspector General’s Office of Labor Racketeering and Fraud Investigations, were not Mr. Forde’s first brush with such accusations. He and another district council official went to trial on bribery charges involving the union in state court in Manhattan twice in recent years, with the first case ending in a conviction that was later overturned, and the second in acquittal.

Lev. L. Dassin, the acting United States attorney, who announced the charges in a news release, said that the union’s leaders had failed to protect the rank-and-file members they were sworn to represent.

“Instead of protecting the financial interests of union members and their families, corrupt union officials and the contractors who bribed them are charged with betraying the carpenters’ union and its benefit funds to enrich themselves,” he said.

Among the others charged in the new indictment with Mr. Forde and the other union officials was Joseph Olivieri, a benefit funds trustee and executive director of the Association of Wall, Ceiling and Carpentry Industries of New York. F.B.I. reports and law enforcement officials say Mr. Olivieri has a long history of ties to the Genovese crime family, the powerful Mafia clan that for generations has held sway over the union.

But while the indictment makes only passing mention of another Genovese family figure, it does not charge that organized crime wielded any influence over the district council. But several law enforcement officials said the investigation was continuing.

Seven of the 10 defendants were arrested on Wednesday morning, and two remain at large, officials said. Mr. Forde, who several people briefed on the case said was attending a conference in Canada, was said to be returning and was expected to surrender to the federal authorities Wednesday.

“Rather than doing what they were elected to do — safeguarding wages and benefits for union members — they took cash and other bribes to turn a blind eye on contractors’ schemes to cheat the rank and file,” Joseph M. Demarest Jr., the head of the New York F.B.I. office, said in the news release.

Gary Rothman, a lawyer for the District Council, said he was reviewing the indictment. “We understand that the charges are serious, but we also believe in the presumption of innocence and we will have a further statement as the situation becomes clearer,” he said in a brief statement.

The conduct charged in the indictment seems to give credence to criticism expressed by federal prosecutors in recent yeas about the effectiveness of the current court-appointed corruption monitor, known as the independent investigator, who is paid by the union.

Indeed, the Manhattan United States attorney’s office sought to oust the monitor, William P. Callahan, in 2007, saying he investigated fewer corruption cases than his predecessor and calling his work “superficial and incomplete.” But the federal judge overseeing the consent decree, Charles S. Haight Jr., ordered him kept him in place.

In contrast, the work of his predecessor, Walter Mack, a former federal prosecutor who specialized in organized crime cases and later headed the New York Police Department’s Internal Affairs Bureau, won widespread praise for his aggressive approach. Several enforcement officials acknowledge that his work led to some of the charges in Wednesday’s indictment.

But the union, exeercising its option under the consent decree, fired Mr. Mack in 2005, after his two-year term ran out, a decision that was upheld by Judge Haight.

Among other things, the consent decree, which was signed in 1994, barred union officials from associating with organized crime figures and imposed job referral rules, Mr. Mack was appointed under the consent decree in 2002 to investigate wrongdoing in the union, including bribery and off-the-books payment of wages.

In addition to Mr. Forde and Mr. Olivieri, also charged were: John Greaney, the business manager and president of Local 608, the largest local in the district council, and a benefits funds trustee; Brian Hayes, a business agent and officer of Local 608; and Michael Brennan, Brian Carson, Joseph Ruocco, John Stamberger, and Michael Vivenzio, union shop stewards.

Also charged was a contractor, Finbar O’Neill, who is accused of helping to deliver illegal cash payments to Mr. Forde.

Mr. Forde, Mr. Greaney, Mr. Hayes and Mr. Brennan were all charged with racketeering and racketeering conspiracy and other crimes. Mr. O’Neill was charged with racketeering conspiracy, wire fraud and other charges.

Lawyers for the men could not immediately be reached for comment.


Related:
Press release issued by United States Attorney's Office.

Thursday, July 30, 2009

Carpenters Turn Up the Volume Atlantic Yards

The public hearing Wednesday afternoon on the proposed revisions to the Atlantic Yards project plan was prefaced with a protest staged by Develop Don’t Destroy Brooklyn outside the Klitgord Auditorium at New York City College of Technology on Jay Street. It turned into a pep rally filled with boos and cheers inside once the hearing began.

The gathering was noteworthy for the number of politicians and political hopefuls who turned out to speak against Atlantic Yards. The anti-AY bandwagon seems to be getting more crowded.

“I think the safe political position in these neighborhoods is to be opposed to it,” said DDDB’s Daniel Goldstein, who was later removed by security for heckling pro-Yards Assemblyman Alan Maisel. “It’s a mix of people who are trying to get that crowd, and people who are from that crowd,” he said, but no candidates running in the surrounding districts support the project.

About 75 people attended the hearing at the New York City College of Technology on Jay Street, the second of two days of hearings held by the Empire State Development Commission, which is to vote in September on proposed changes to the original plan.

“I’m not sure exactly what the project will bring, but I am hoping that it will bring jobs to the community for people like me,” said Shiler Gelin, 41, a resident of Canarsie who has been unemployed for two years.

Proposed modifications to the 22-acre, $4.9 billion project include dividing it into phases and extending the time line for construction and for developer Forest City Ratner to pay for the land. The project, if completed as planned, would bring an 18,000-seat sports arena and more than 6,000 units of housing to Brooklyn.

Several union carpenters spoke, including Derrick Taylor, 41, of Carpenters Local 926, who compared the debate over the plans to crabs in a bucket.

“If you have 20 crabs in a bucket, none of them will ever get out because they will naturally pull each other down. This is the crab with buckets, and Ratner is a crab — let him out.” Mr. Taylor said that Ratner is offering the community an opportunity to flourish.

Though outnumbered, those against the Atlantic Yards project also stated their case.

“I think that the plans are filled with delusions of grandeur,” said Bleu Liverpool, 26, a resident of Fort Greene who went on to say that she doesn’t think it will help the community as much as people think.

Here are some highlights from the hearing, held under the auspices of the Empire State Development Corporation, Atlantic Yards’ state sponsor. The hearings continue on Thursday.

In The Opposition Corner

Mayoral Candidates Tony Avella and Rev. Billy Talen; City Council candidates Brad Lander (39th), Evan Thies (33rd), David Pechefsky(39th), Ken Diamondstone (33rd), Ken Baer (33rd), Bob Zuckerman (39th), Josh Skaller (39th) and Doug Biviano (33rd); Norman Siegel, running for Public Advocate; SEIU local 371; Municipal Arts Society; Councilwoman Letitia James; Assemblyman Jim Brennan; State Senator Velmanette Montgomery; activist and sometime-candidate Kevin Powell.

* Assemblyman Brennan testified that the city and state would “never get the money back” that they put into this, citing the arena’s 40-year tax break and up to $300 million in bonded funds for infrastructure costs. “It’s not even a credible proposal,” he said. “The arena isn’t even an economic proposal — it’s a financial loss for the city and the state,” he said. “It’s ridiculous.” The project could be complete by now, he said, “if the state had agreed to undertake a rational project.”

* Councilwoman James declared the near-death of the project. “It’s time to put Atlantic Yards out of its misery,” she said. “The end is near.” She predicted that the ultimate fate of the project would be “the arena, and the arena only, and it will be a fraction of the affordable housing — that’s what [Bruce Ratner] will get away with.”

* Michael Rogers, a writer and journalist from Fort Greene, likened the battle to a terrible “scene” in a dark comedy about the abuse of public money. (He noted he would have set it in China or the Soviet Union.) “We’ve been told fantasy after fantasy,” he said, adding that Forest City Ratner needs, “to describe what’s really going to be built — no fantasies.”

* Rev. Billy Talen (mayoral candidate), called the development “anti-neighborhood” and decried any large development that removed public spaces where people congregate, like “On the stoop. At the bodega. Walking down the street.” He capped his speech with “Changelujah, we will win!”

* Activist and writer Kevin Powell noted the affordability promises were for higher-than-average families, not families headed by single moms, like the one he grew up in. “If you’re making less than $150,000, this is not affordable housing,” he said.

In the Pro-Yards Corner

Assemblyman Alan Maisel; State Senator Marty Golden; Borough Presdient Marty Markowitz; Congressman Edolphus Townes; City Council hopeful Anthony Herbert (41st); Ironworkers Local 580; Carpenters Local 79; Junior’s Restaurant; Downtown Brooklyn Alliance; BUILD; ACORN; New York Building Trades Council; Long Island University; Brooklyn Academy of Music.

* Long Island University’s Annette Fuentes said the arena would be valuable to LIU’s students and, specifically, the school’s sports management program. Echoing a point made by BAM, she said, “The presence of the Atlantic Yards will increase the visiblity of Downtown Brooklyn, which will clearly benefit LIU and the other academic institutions.”

* Junior’s Restaurant’s third-generation owner Alan Rosen noted that his longtime eatery may benefit from the surge of interest in the downtown area. “It will re-establish Downtown Brooklyn as a hub for economic activity large and small.”

* Sal Zarzana of Carpenter’s Local 79 noted that it would provide a good portion of his membership, of which he estimated 2,500 live in Brooklyn, with local construction jobs.

* New York State Assemblyman Alan Maisel called the project “vital for our future” and said those who spoke against it were a small group. “Most of the people that do the complaining are people who are not doing any developing.” Update | 5:58 a.m. DDDB leader Daniel Goldstein took issue with Mr. Maisel’s contention that the opposition was small, calling out that it was the supporters who were in the minority. For this, he was escorted from the premises.

* State Senator Marty Golden thanked Bertha Lewis of ACORN for her advocacy, and said the project promised economic development in what he called an otherwise fallow area. He added that Brooklyn needed the sports team.

* City Council hopeful Tony Herbert advocated for the project to proceed so it could keep local business thriving. He called the arena, “Brooklyn’s very own Madison Square Garden” and urged Brooklynites to “keep our money in Brooklyn and not go spend it in Manhattan. Let’s do it here, let’s keep it here, let’s move it forward.”

* Brownsville high school junior Troynel Andrews, 16, said she looked forward to using the space in the arena for community recreational activities and wanted to see her unemployed family members get work there. “They couldn’t pay me to talk about the arena,” she stated in her testimony, in which she detailed the plight of her aunt on welfare. Later she told The Local she is presently working a paid summer internship for BUILD, the community group leading the hiring efforts with Ratner. She hopes to work for them full time when she’s finished with school.

The hearing continued with an evening session. There will be two more sessions today, from 2 p.m. to 5 p.m. and from 6 p.m. to 8 p.m., at Klitgord Auditorium, 285 Jay Street.

Tuesday, July 28, 2009

Union Pensions in the Red

Labor chiefs are doing better than the workers.

We’ve all read about underfunded corporate pensions, but here’s an unreported story: Union pensions are even more in the red, and it’s one reason union chiefs are so eager to rig organizing rules to gain more dues-paying members.

Only last week, the country’s largest union local re-opened the contract for its 145,000 members two years early and gave up raises and reduced retirement benefits for future hires. The SEIU’s United Healthcare Workers East struck this unusual deal so employers could instead plug a gaping pension hole.

In April, the SEIU National Industry Pension Fund—which covers some 101,000 rank-and-file members—announced that its pension has been put into what the feds call “critical status,” or “red zone.” In other words, it lacks the cash to pay promised benefits and may have to cut them. As of 2007, the last year for which it reported results to the government, the fund had 74.4% of the assets needed to pay its benefits.

Thirteen of the bigger plans operated for the Teamsters have, together, a mere 59.3% of reserves necessary to cover obligations. Or consider that 26 pension funds at the food workers union, the UFCW, are at 58.7%. Seven locals at the United Brotherhood of Carpenters fare better at 67%. As a rule of thumb the government considers a fund to be “endangered” at below 80%, and in “critical” status at below 65%, and requires them to come up with a plan to get off probation within a decade.

You don’t hear labor leaders touting this kind of performance in their organizing riffs, and not many workers are patient enough to review the Form 5500 filings submitted to the IRS and Department of Labor that track these retirement savings. But the data show a steady decline in recent years that can’t be explained merely by the stock market.

For example, Unite HERE’s National Retirement Fund stood at 115% in 1998 and dropped to 83.4% by 2007, well before the crash. The SEIU fund that was put into a “red zone” in April was at 103.4% as recently as 1998. On average, the asset to liability ration at so-called multi-employer plans, which union funds make up the bulk of, stood at 66% in 2006, according to the Pension Benefit Guaranty Corporation. By contrast, single employer plans, basically most company-provided pensions, were funded at 96%.

Poor management probably deserves a lot of the blame for the union decline, but the exact causes are a mystery. An even bigger mystery is that the unions do a far better job with funds created for their officers and employees than for mere workers. The SEIU Affiliates, Officers and Employees Pension Plan—which covers the staff and bosses at its locals—was funded as of 2007 at 102.2%. The plan for the folks at SEIU international headquarters was funded at 84.8%.

Union officer benefits are also far more generous than anything dues-paying workers enjoy. Consider again the SEIU, probably the country’s most powerful union. Their officers and employees get a yearly 3% cost of living increase, but SEIU members get none; officers qualify for an early pension at 50 or after more than 30 years of service, but workers can’t retire early with a pension; officers qualify for disability retirement after a year’s service, but workers need 10 years. In the land of union retirement, some workers are more equal than others.

We suspect most current union members would be surprised to learn how their leaders are handling their hard-earned retirement money. The 93% of the private workforce that doesn’t belong to a union, but that might have little choice if Big Labor’s agenda becomes law, would be even more interested.