• Production Workers Union Local 148’s president, Stephen P. Arena, was sentenced to six months in prison, two years of supervised release, a $5,000 fine, and a restitution payment of $110,000 to the union for conspiring with the secretary-treasurer/recording secretary, David J. Caivano, to steal union funds. Arena and Caivano were arrested in 2010 and charged with conspiracy and embezzlement of $375,000. Prosecutors alleged that the two men granted themselves salary increases and bonuses, altered meeting minutes to conceal increases, and appointed uninvolved board members to avoid detection. Arena’s defense was that his salary was reasonable and he was authorized by the union’s by-laws to set his own salary.
  • Grace Rathke, the former office manager for Local 32 of the Laborers’ International Union of North America in Rockford, Illinois, was sentenced to 17 months imprisonment, three years supervised release, and restitution payments of $34,836 to the union and $170,000 to its bonding company for embezzling union funds. Rathke pled guilty after she was accused of stealing cash paid by members, failing to credit them for payment of their dues, and falsifying records to conceal her theft.
  • A federal court in California sentenced Robert L. Carr and Theresa Ann Carr for misappropriating funds from the United Association of Plumbers and Pipe Fitters Local 228. Robert L. Carr was the union’s secretary-treasurer and business manager, while Theresa Ann Carr was an employee of the union. The Carrs pled guilty to one felony count of conspiring to misappropriate labor union funds and two felony counts of misappropriating labor union funds. Robert L. Carr received 30 months imprisonment; Theresa Ann Carr received three months imprisonment; and both are responsible for paying $120,000 in restitution to the union.