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Crime and Corruption (www.unionfacts.

com)
http://ec2-50-17-255-168.compute-1.amazonaws.com/crime-and-corruption Nearly fifty years after John F. Kennedy first condemned corrupt leadership in the American labor movement, it is still plagued by rampant corruption, embezzlement, racketeering and influence from numerous organized crime organizations. From pennyante theft to multi-million dollar embezzlement schemes, labor leaders continue to violate the trust of the members they claim to represent. The labor movement is nothing but the sum of its many partsmillions of working Americans whove entrusted union leaders to spend a portion of their hard earned salary for the benefit of the collective good. Financially speaking, the sum of the movements parts totals more than $10 billion dollars annually in mandatory dues and controls another $400 billion in financial assets in strike funds, pension plans, and health care benefits. In fact, in just the last five years, hundreds (maybe thousands) of labor leaders at all levels of the movement have been convicted of embezzlement, corruption, racketeering, or engaging in organized crime. The problem is rampant, getting worse, yet the unions seemingly refuse to address it. Key Findings:

The Labor-Management Reporting and Disclosure Acts (LMRDA) reliance on selfgovernment, public disclosure, and ultimately deterrence has failed; The Department of Labors (DOL) Office of Labor-Management Standards (OLMS) has investigated and prosecuted union leaders for embezzling more than $100 million in union dues since 2001; Investigations by the DOLs Office of Inspector General, which investigates labor racketeering and organized crimes influence within the labor movement, has resulted in more than $1 billion in fines, restitutions, and forfeitures, and; Fewer than 5 percent of unions audited by the DOL received unqualified passes.

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Past Corruption, Reforms, and Failures Union Members Bill of Rights Disclosure and Deterrence Death by 23,000 Cuts and the Failure of Self-Governance Defiance, not Deterrence Qualified Opinions: Compliance Audits Examples of Compliance Audit Closing Letter Notices On the Waterfront: Union Leaders and Labor Racketeering

Labor Racketeering Enforcement Actions


Cases opened Cases closed Cases referred for prosecution Indictments Convictions 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 105 125 124 135 103 130 93 112 96 117 109 130 144 115 107 122 111 92 117 130 57 161 92 74 218 154 66 181 120 87 260 143 88 322 196 105 271 241 80 198 183 74 195 214 81 111 146 105 139 112

Fines, restitutions, forfeitures, and civil $42.5 $105.9 $27.9 $36.5 $187.9 $69.2 $27.1 $24.2 $76.2 $72.9 monetary actions ($ in millions)

OLMS Enforcement Statistics Financial Integrity


Indictments Convictions 2001 2002 2003 2004 2005 2006 2007 2008 2009 98 166 132 109 114 118 99 NA 123 102 90 152 111 97 129 118 NA 121

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