Unions "like Enron"?

Brian O. Sheppard x349393 bsheppard at bari.iww.org
Mon Aug 26 20:14:45 PDT 2002


I found this interesting:

Thomas Havey, an auditor of more than 700 union-bargained benefit plans, plead guilty on Aug 22 "to helping leaders of the iron workers international union hide dlrs 1.5 million in entertainment and dining expenses on annual disclosure reports to the Labor Department."

Sue Hensley of the Labor Dept said, "In the age of Enron, this is evidence that loose accounting practices extend beyond corporate America." It was noted that "The investigation also coincides with the recent string of corporate accounting scandals that many unions have decried."

The article by AP labor reporter Leigh Strope mentions what was done with some of the embezzled 1.5 million dollars:

1. "[G]olf, food, alcohol and other entertainment at restaurants and country clubs" were underreported " as educational and publicity costs or office and administrative expenses."

2. "Union officers and others spent nearly a half million dollars at the Prime Rib restaurant in Washington from 1992 through 1998." (prosecutors allege)

This primarily concerns the 140,00 strong International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers - or simply the Iron Workers.

So far two accountants with Thomas Havey LLP and 5 union officials or employees have plead guilty.

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020822/ap_wo_en_po/us_union_corruption_1

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