BNA Daily Labor Report: Jury Convicts Ex-Chicago Officials of Stolen Elections
May 5, 2009: A federal jury May 1 in Chicago handed down guilty verdicts against the former president of International Brotherhood of Teamsters Local 743 and two former officers charged with labor fraud and theft in connection with a union election rigging scheme (United States v. Lopez, N.D. Ill., No. 07-580, jury verdict 5/1/09).
The trial began April 6 and the jury deliberated for three days before convicting Richard Lopez and Thaddeus Bania on criminal charges of conspiracy to commit mail fraud, multiple counts of mail fraud, and theft of union property.
David Rodriguez was convicted of mail fraud and theft of union property and acquitted of the conspiracy charges. Judge Charles Kocoras of the U.S. District Court for the Northern District of Illinois is scheduled to sentence the men Aug. 27.
Charges Stemmed From Election-Rigging Scheme
Rodriguez's attorney, Robert A. Habib of Chicago, told BNA May 4 that he was pleased that Rodriguez was acquitted of six of the 11 counts he was charged with and said he plans to appeal the guilty verdict.
“Quite frankly, it seems to us that if [Rodriguez] was not guilty on the first count of conspiracy, then it gives us good grounds to challenge the verdict on the other counts,” Habib said. He said it is uncertain what sentence Rodriguez will receive because the sentencing guidelines give the judge wide discretion.
According to the Justice Department, each count of mail fraud carries a penalty of up to 20 years in prison, the theft and conspiracy counts each carry a penalty of up to five years in prison, and all charges carry a maximum fine of $250,000 on each count.
The charges stemmed from attempts to rig elections of union officers in 2004 in favor of the incumbents.
Hundreds of Mail Ballot Packages Diverted to Cohorts
The Justice Department said in a statement that the three men diverted to family and friends hundreds of official mail ballot packages intended for delivery to Local 743 members and then had the ballots cast in favor of the incumbent slate of officers.
The scheme involved misdirecting official ballot packages by mail; theft of undeliverable ballots; obtaining false replacement ballots; using counterfeit envelopes; and supplying false addresses to the election officer, according to the government's indictment.
The conspiracy allowed the “Unity Slate” of officers to defeat the “743 New Leadership” slate of candidates, who were aligned with Teamsters for a Democratic Union.
Richard Berg, who led the challenger's slate, demanded a Labor Department investigation which culminated in the agency filing a lawsuit to void the election.
Berg and the “743 New Leadership” officers took control of the local after the court ordered a second rerun election to be administered in October 2007 by the Labor Department (Chao v. Local 743, N.D. Ill., No. 05-4642, 7/17/2007).
Former Local President Testified for Government
The government filed its initial indictment in the criminal case in September 2007 alleging the defendants conspired to maximize the likelihood that all of the incumbent Unity Slate officers would win the election regardless of how many votes they received (174 DLR A-13, 9/10/07).
It filed a superseding indictment in March 2008 charging additional defendants, including former local president Robert Walston and Mark Jones (46 DLR A-14, 3/10/08).
Walston, president of Local 743 from 2001 until he retired in 2007, and Jones, a union business agent from 2003 to 2006, both pleaded guilty and testified as government witnesses in the criminal case according to a Justice Department statement.
One of Largest Teamsters Locals
Lopez served briefly as the president of Local 743 in 2007 and held other offices with the local from 1995 to 2007. Bania was the union's comptroller from 2001 to 2007 and Rodriguez was an organizer for the local from 2003 to 2007.
The union represents more than 12,000 members who work in warehouse, office, medical, service, and other industries in Chicago and is one of the largest Teamsters locals in the country, according to a Justice Department statement.
“Fair and honest officer elections are the cornerstone of our democratic union movement. [This] verdict demonstrates the Department of Labor's commitment to enforce the right of union members to open and fair elections,” Andrew Auerbach, deputy director of the Office of Labor-Management Standards said in a statement May 1.
Lopez and Bania's attorneys were not available for comment, and BNA was unable to reach Local 743 representatives for comment May 4.
The government was represented by David Buvinger, Nathalina Hudson, and Vincent J. Falvo Jr. of the Justice Department.
Rodriguez was represented by Robert A. Habib of Chicago. Lopez was represented by Keith A. Spielfogel of Chicago. Bania was represented by Donald V. Young of Donald V. Young & Associates and George E. Becker, both of Chicago.
Jury Finds Ex-Officials Guilty of Stealing Elections
May 1, 2009: A Chicago jury has found former Local 743 President Richard Lopez and two other ex-officials guilty of a scheme to steal Local 743 elections.
Lopez was found guilty of conspiracy, mail fraud, and stealing union property.
Lopez and former union reps Thaddeus Bania and David Rodriguez will face sentencing in August. They could go to jail for many years.
“We are elated that the workers ended up on the victorious side of this verdict,” said the new Local 743 President Richard Berg, a reformer who won office in 2007.
“The U.S. Department of Labor had the evidence needed to convict them. Now we are anxiously waiting for the financial reparation of the $2.2 million that was taken from the hard working members of this union.”
The jury heard outrageous stories of how Local 743’s ex-officials treated the union like their private business, and schemed to steal the election when they were challenged by working members:
Officials secretly changed the addresses of members, and diverted ballots to friends, relatives, employers—and even one union rep’s wedding guest list.
Investigators found Rodriguez’s fingerprints on sealed ballots from the 2004 local union election. Rodriguez couldn’t explain how they got there.
Rodriguez operated a private cleaning firm that cleaned the local union hall and the home of ex-president Robert Walston. One of his cleaning employees testified that Rodriguez told her ballots for the election would arrive at her house.
Their scheme didn’t work. With the help of Teamsters for a Democratic Union, members of Local 743 exposed the plot to steal their election. And in October 2007, Richard Berg and the New Leadership Slate swept the criminals out of office for good.
Are you concerned about getting an honest election in your local? Click here to contact TDU for advice on how to protect your right to vote.
Click here to read more about the guilty verdict in the Chi-Town Daily News.
Click here to read the press statement from Local 743.
Chitown Daily News: Chicago Officials Used Wedding Invites for Fraud
April 17, 2009: Teamster Mark Jones gave his wedding list to his boss thinking it would be used for fundraising in a local union election.
But the folks on that list, who would usually get Christmas cards and invitations to Halloween parties and summer barbecues from Jones and his wife, started getting union election ballots sent to their homes.
Jones, who has pleaded guilty in a wide-ranging scheme that included efforts to steal two Teamsters Local 743 elections in 2004, testified yesterday that he had no idea the former union president, Robert Walston, who has also pleaded guilty, would use those addresses to later file ballots on behalf of his slate.
Jones, Walston and Cassandra Mosley, a former business agent, agreed to cooperate with prosecutors in a trial of three of their former associates.
The federal trial of Richard Lopez, former recording-secretary, David Rodriguez, former organizer, and Thaddeus Bania, the local’s former comptroller, concluded its second week Thursday.
Prosecutors continued calling witnesses who said they received ballots at their homes and offices that at least one of the accused men would later retrieve. Prosecutors have argued that some of those ballots were cast in December of 2004, tipping the balance in favor of the incumbent Unity Slate.
Another man, Elias Nevarez, of Berkeley, testified that he was asked by Lopez in 2004 for his address after which multiple envelopes containing secret ballots arrived at his home. He lied about the mail during an initial visit by investigators from the Department of Labor, but testified that he ultimately confessed Lopez had approached him at a Melrose Park pool hall, asking him to retrieve the envelopes.
On Wednesday, prosecutors also questioned others who were unknowingly part of the scheme as changes of address in the master database allegedly permitted sending multiple ballots to a few locations and allowing slate members to collect and later mark them as validly cast votes.
Jose Diego Najeda Herrera Cabrales, a retired machine operator and member of Local 743, was asked by Asst. U.S. attorney Nathalina Hudson if he had ever seen the envelopes mailed to others at his address.
"No," he responded.
Had he ever requested ballots be sent to his address in those names, Hudson asked.
"No," he responded.
Had he ever voted in the 2004 election?
Cabrales said he didn't know there ever was an election.
Prosecutors have introduced dozens of envelopes as evidence in the trial of Lopez, Bania, and Rodriguez. Lopez was among the candidates who secured victory back in December 2004 after allegedly misdirecting ballots.
Hudson showed Cabrales and at least three other Hispanic workers envelopes that were addressed to their homes. All testified that they knew nothing about them.
Several, including two women who say they worked as janitors at a cleaning service operated by Rodriguez, said he told them mail would arrive at their homes. One of the women said through an interpreter that she cleaned the houses of former president Walston as well as the headquarters of the local.
The trial is scheduled to resume Monday and could end as early as next week.
Information Is Power! Local 804 Members Turn Out For Education Conference
April 10, 2009: More than 50 Local 804 members turned out for a day-long educational seminar sponsored by 804 Members United.
The conference focused on the problems UPSers are facing at work and what members and our union can do about them.
“This is exactly the kind of thing our local should be doing,” said feeder driver Neil O’Brien. “Sharing information, building unity and making plans to build union power. That’s what it’s all about.”
Local 804 represents over 7,000 UPS Teamsters in New York City, Westchester County, and Long Island. Drivers packed a workshop on Working Safe and Working Smart.
“Management is cracking down on drivers, riding guys. We talked about what drivers can do to protect themselves,” said shop steward Chris Sabatino.
In another workshop, inside employees talked about the epidemic of supervisors working and strategies that other Teamster locals are using to stop the violations and make UPS pay.
Another hot topic was the elimination of the full-time combo jobs—across the country and in Local 804. Members made plans to participate in a national petition drive to make UPS create all 20,000 full-time jobs that the membership is owed under the contract.
Building a Movement For Change
This year is an election year in Local 804. Teamsters at the Education Conference made it clear that the membership is ready for change.
Shop steward Tim Sylvester told the crowd, “804 Members United will be putting forward a leadership team that can lead this local, strengthen representation and unite members to defend our contracts and benefits.
“The slate will answer to a reform platform and will work hand in-hand with a rank-and-file network of members from every building and classification in the local,” Sylvester said.
That network has been building since the members voted down the last contract.
Upholding a Proud Tradition
Local 804 has a proud history of being one of the strongest locals in our union, and the home of Ron Carey, the first democratically-elected Teamster president.
Carey’s son, Dan Carey, addressed the Education Conference and congratulated members on keeping his father’s fighting spirit alive in the local.
Local 804 Members United brought members together to vote down a concessionary UPS contract and save 25-and-out pensions for new employees.
“804 Members United is about more than a slate. We are about building a rank-and-file movement for a stronger union. And we want every member to be a part of it,” said Jim Reynolds.
Doug Corbett, a package steward from 43rd Street, was one of dozens of members who filled out volunteer forms at the Education Conference. “If you want change, you’ve got to get involved,” Corbett said.
For more information visit www.804MembersUnited.org
Chicago Officials Stand Trial for Stolen Elections
April 10, 2009: On April 6, former Local 743 President Richard Lopez went on trial for his part in a scheme to steal Local 743 elections and defraud the members of their right to vote.
Former union reps Thaddeus Bania and David Rodriguez also stood trial.
Testifying against them is former Teamster official Robert Walston, who pleaded guilty to his part in the scheme. Walston also pleaded guilty to drug trafficking, which was his side-job while he was president of Local 743.
With help from Teamsters for a Democratic Union (TDU), Local 743 working Teamsters exposed Walston’s plot. And in October 2007, Richard Berg and the New Leadership Slate swept the criminals out of office for good.
Instruction Manual
Walston’s 35-page plea agreement reads like an instruction manual on how to try to steal a Teamster election (and get caught). Their actions included: u Examining past election voter records to determine which members were unlikely to vote, as targets for ballot-diversion.
Secretly changing the addresses of members, and utilizing the TITAN database terminal at the local union to divert ballots to friends, relatives, and employers.
Collecting said ballots and then marking them while wearing latex gloves and using multiple pens, then mailing them at various mailboxes and on different days.
Fraudulently obtaining a key to the postal box for undeliverable ballots, and illegally making a copy of the key to steal those ballots and vote them.
Using the pretense of an election protest to stop the ballot count and invalidate the election, while Richard Berg was ahead of Walston in the count.
Calling the election supervisor to give members’ names and social security numbers, but the addresses of cronies, to illegally obtain additional ballots. Despite all those stolen ballots (as detailed in his plea agreement), they could barely beat the rank-and-file challengers in the 2004 election, in which they had to run twice. Working with committed members, TDU has the know-how to defeat election fraud.
Their actions were ratified by Chicago Joint Council 25 and the International, which refused to investigate or overturn the bogus election. Walston, Lopez and his gang were key Hoffa supporters.
According to the guilty plea agreement, Walston will serve about 5 years in prison, and make restitution to Local 743 in an amount determined by the judge. He also agreed to testify against his co-defendants if they choose to go to trial.
The Justice Department contends that the officials embezzled $2.2 million from Local 743, in the form of their illegally-obtained salaries and perks.
Walston’s cocaine trafficking plea implicates another conspirator, Victor Matos, the cousin of one of Walston’s business agents. He was caught in Texas with $135,000 in cash, which Walston intended to use to buy cocaine and transport it back to Chicago.
“For years, members weren’t paying attention, and our officials were getting away with stealing our elections, stealing our dues, and more,” said Gail Isenberg, a working Teamster in Local 743.
“We changed that. We gave members information and got them to pay attention. That’s how we got these crooks out of office.”
Chicago Election Rigged, Jury Told
April 8, 2009: Two former union officers and an organizer for Teamsters Local 743 rigged a union election in 2004 by diverting secret ballots to family members and friends who weren't authorized to vote, a federal prosecutor told a jury today as their trial began.
Click here to read more at Chicago Breaking News Center.
Chicago Teamster Will Do Time for Stolen Elections
March 25, 2009: Former Teamster official Robert Walston is headed to jail for conspiring with other Teamster officials to steal Local 743 elections and defraud the members of their right to vote.
Walston also pleaded guilty to drug trafficking, which was his side-job while he was president of Local 743.
With help from Teamsters for a Democratic Union (TDU), Local 743 working Teamsters exposed Walston’s plot. And in October 2007, Richard Berg and the New Leadership Slate swept the criminals out of office for good.
The 35-page plea agreement reads like an instruction manual on how to try to steal a Teamster election (and get caught).
Actions taken by Walston, and his co-conspirators Richard Lopez, Cassandra Moseley, David Rodriguez and Thaddeus Bania, to steal local elections included:
- Examining past election voter records to determine which members were unlikely to vote, as targets for ballot-diversion.
- Secretly changing the addresses of members, and utilizing the TITAN database terminal at the local union to divert ballots to friends, relatives, and employers.
- Collecting said ballots and then marking them while wearing latex gloves and using multiple pens, then mailing them at various mailboxes and on different days
- Fraudulently obtaining a key to the postal box for undeliverable ballots, and illegally making a copy of the key to steal those ballots and vote them.
- Using the pretense of an election protest to stop the ballot count and invalidate the election, while Richard Berg was ahead of Walston in the count.
- Calling the election supervisor to give members’ names and social security numbers, but the address of cronies, to illegally obtain additional ballots.
Click here to read Walston’s plea.
Despite all those stolen ballots (as detailed in his plea agreement), they could barely beat the rank-and-file challengers in the 2004 election, in which they had to run twice. Working with committed members, TDU has the know-how to defeat election fraud.
Their actions were ratified by Chicago Joint Council 25 and the International Union, which refused to investigate or overturn the bogus election. Walston, Lopez and his gang were key Hoffa supporters.
According to the guilty plea agreement, Walston will serve about 5 years in prison, and make restitution to Local 743 in an amount determined by the judge. He also agreed to testify against his co-defendants if they choose to go to trial.
The Justice Department contends that the officials embezzled $2.2 million from Local 743, in the form of their illegally-obtained salaries and perks.
The members of Local 743 deserve to get that money returned to their treasury from these traitors to the labor movement.
Walston’s cocaine trafficking plea implicates another conspirator, Victor Matos, the cousin of one of Walston’s business agents. He was caught in Texas with $135,000 in cash, which Walston intended to use to buy cocaine and transport it back to Chicago.
“For years, members weren’t paying attention, and our officials were getting away with stealing our elections, stealing our dues, and more,” said Gail Isenberg, a working Teamster in Local 743. “We changed that. We gave members information and got them to pay attention. That’s how we got these crooks out of office.”
What do you think? Click here to send your comments to Teamsters for a Democratic Union.
Teamster Movers Petition for a Strong Contract
March 11, 2009: More than 80 members packed the house at New York Local 814 on Monday. They were there to discuss proposed changes that would help New York movers win a strong contract.
At the meeting, members turned in petition signatures from 150 members who are proposing changes to the local union bylaws that would give members a stronger voice in contract bargaining.
Specifically, the proposed changes would:
- Give members the right to elect the rank-and-file members of the bargaining committee;
- Give members the right to information about what is happening in contract bargaining;
- Require Local 814 to mobilize the membership and support from the Teamsters and the public to win a strong contract;
- Give members time to review all changes to the contract in writing before we vote on it.
Members of the Local 814 Executive Board spoke out against these reforms despite the overwhelming display of support for the changes. The proposals will be read again at the next membership meeting and then voted on at the general membership meeting in September.
Local 814 movers work for some of the deepest pockets in the city: Fortune 500 companies, Wall Street banks and the U.N. But you’d never know it by their recent contracts. Givebacks have gutted members’ pay and benefits and divided the membership into tiers that are pitted against each other.
“Our contract negotiations next year are make or break for us. If we’re going to put an end to the concessions and return our union to sound footing, we’ve got to do things differently,” said Local 814 Teamster Walter Taylor.
Last year, Local 814 members put these principles into place in a successful, year-long rank-and-file contract campaign at Sotheby’s Auction House. As a result, they put an end to concessions and won their best contract in more than a decade.
Click here to see how they did it.
Are you happy with the way your local union negotiates contracts? Click here to send your comment or to get advice from Teamsters for a Democratic Union.
Teamster Movers Start Campaign for Strong Contract
March 2, 2009: Teamster movers in New York Local 814 work for some of the deepest pockets in the city: Fortune 500 companies, Wall Street banks and the U.N. But you’d never know it by their recent contracts.
Read more about how “Local 814 Members Stopped a Decade of Givebacks and Won a Strong Contract." Local 814 members have launched their own rank-and-file website. Check out www.voiceof814.com. |
Givebacks have gutted members’ pay and benefits and divided the membership into tiers that are pitted against each other.
“Our contract negotiations next year are make or break for us. If we’re going to put an end to the concessions and return our union to sound footing, we’ve got to do things differently,” said Local 814 Teamster Walter Taylor.
That’s why Local 814 members have launched a campaign to win the right to elect their bargaining committee and institute other reforms that would change the way Local 814 negotiates contracts.
The new bylaws would:
- Give members the right to elect the rank-and-file members of the bargaining committee;
- Give members the right to information about what is happening in contract bargaining;
- Require Local 814 to mobilize the membership and support from the Teamsters and the public to win a strong contract;
- Give members time to review all changes to the contract in writing before we vote on it.
Last year, Local 814 members put these principles into place in a successful, year-long rank-and-file contract campaign at Sotheby’s Auction House. As a result, they put an end to concessions and won their best contract in more than a decade.
“The members at Sotheby’s have shown that it’s possible to reverse givebacks and win a strong contract when members prepare early and get organized,” Taylor said. “It’s time for us to do the same thing in moving and storage. This campaign to change the local union bylaws is a first step.”
Petitions supporting the changes will be submitted at the March membership meeting. A vote will be held at the fall meeting.
Make or Break
“Our contract negotiations next year are make or break for us. If we’re going to put an end to the concessions and return our union to sound footing, we’ve got to do things differently.”
Walter Taylor, Local 814
New York
Teamsters Protest Hospital Layoffs
March 2, 2009: Local 743 Teamsters are standing together to fight layoffs at the University of Chicago Medical Center.
Teamster Local 743 represents much of the non-nursing staff at the University of Chicago Medical Center. Management recently announced a major layoff of over 450 employees.
“I have no job, six kids and a $1,500 dollar rent payment,” said Sherri Taylor Kennedy, a Local 743 member. Until the layoff, she was a secretary serving two pediatric surgeons at the UC Medical Center.
Local 743 mobilized members with a picket and rally to protest the layoffs. They reached out to the community and University of Chicago students for support.
Members across the hospital emphasized the importance of patient care. “You can’t deliver the quality of service to all aspects of the hospital, to the labs, administrative, cleanliness of the facility with less people,” commented Leonard Charley, a Local 743 steward. “You can’t do the same quality job at the hospital with a much lower level of staffing.”
Melanie Cloghessy, a clerical employee at the University of Chicago continued, “The University hasn’t suffered losses, they’re projecting losses. Even so, they’re planning more research and more construction. They can do the same for the 450 people they just laid off. It’s not rocket science. They can all be returned to work if management applies good long-term planning and shows ordinary respect for the people who work here.”
Cloghessy concluded, “The University is the largest employer on the south side of Chicago. They don’t have a right to impoverish the community just to change their bottom line.”