Anthony Frederick, the former business manager of a LIUNA local in Washington, D.C., pled guilty in federal court to stealing $1.7 million from the union’s treasury. Frederick signed checks for unauthorized expenditures to private contractors, and used stolen funds to make a down payment on a home, add a garage to the property, and funnel more than half a million dollars to a company partly owned by his wife.
A court-appointed investigator alleged that IBT Secretary-Treasurer Ken Hall, the union’s second in command, intentionally obstructed an investigation by withholding emails and other documents. Both sides have filed for court intervention. The specific investigation, which began in the midst of the IBT executive election, concerns allegations of employer gifts to union officers. The court-appointed investigator also alleged the William C. Smith, executive assistant to Teamsters President, James P. Hoffa, violated ethics rules by accepting Super Bowl party tickets from an employer. Hoffa must decide whether to issue formal charges based on the investigator’s recommendations.
Assane Faye, the founder and president of the United Security and Police Officers of America, was convicted of two counts of embezzlement and seven counts of mail fraud. Faye was found guilty of embezzling hundreds of thousands of dollars from the labor organization by putting a woman, with whom he’d had a romantic relationship, on the union’s payroll, and withdrawing nearly $200,000 of her pay for personal use. Faye was sentenced to more than three years in prison, and ordered to pay restitution of $350,000.