Re: To: From: Members of Local 282 Executive Board

To:
Members of Local 282 Executive Board
From:
Members of the Independent Review Board
Re:
Proposed Charges Against Local 282 Member
Anthony Sainato
Date:
May 24, 2001
I.
RECOMMENDATION
The Independent Review Board
("IRB") refers the below
report to the Local 282 Executive Board and recommends the filing
charges against Local 282 member Anthony Sainato ("Sainato") for
failing to cooperate with the IRB by refusing to answer at least
sixty
guestions
during
his sworn
examination
on May
8,
2001
concerning his association with individuals publicly identified as
either members or associates of the Columbo La Cosa Nostra ("LCN")
Family.
By his actions, it appears that, while an IBT member,
Sainato violated Article II, Section 2(a) and Article XIX, Section
7(b)(1) and
(2) and Section
14 (i) of the IBT Constitution by
obstructing, interfering and unreasonably failing to cooperate with
the duties of the IRB as set forth in Paragraph G of the March 14,
1989 Consent Decree in United States v. International Brotherhood
of Teamsters, 88 Civ. 4486 (S.D.N.Y.) ("Consent Decree").
II. JURISDICTION
Pursuant to Article XIX, Section 14(c) of the IBT
Constitution, this disciplinary matter is within the jurisdiction
of the Local 282 Executive Board.
Paragraph G(e) of the March 14,
1989 Consent Decree in "niter!-Stgj^g. v-^Lnternational Brotherhood
of Teamsters,
88
Civ.
4486
(S.D.N.Y.)
and Paragraph
1(6)
of the
Rules and Procedures for Operation of the Independent Review Board
("the IRB Rules") require that within 90 days of the IRB's referral
of a matter to an IBT entity, that IBT entity must file with the
IRB written findings setting forth the specific action taken and
the reasons for that action.
Pursuant to Paragraph 1(9) of the IRB
Rules, not meeting this deadline may be considered a failure to
cooperate with the IRB.
III. BACKGROUND
A.
Anthony Sainato
Sainato (born October 13, 1943) was a Local 282 member
who last paid his union dues in November 2000. (Ex. 1; Ex. 2 at 5)
Local 282 records listed Sainato as a member employed at Max Tec
Construction Corporation, 1 Wilson Lane, Bayville, New York. (Ex.
3)
As of May 8, 2001, Sainato had neither requested nor received
a withdrawal card from Local 282. (Ex. 2 at 5)
Sainato became an IBT member in March 1961 when he joined
Local 816.
In the late 1980's Local 816 merged with Local 868.
(Ex. 4 at 3-4)
5 at 3)
In June 1998, Local 868 merged into Local 917. (Ex.
In 1999 Sainato transferred from Local 917 to Local 282.
(Ex. 1)
B.
Sainato's Criminal History
On December 9, 1999, Sainato and his brother, Vincent
Sainato, were indicted in the United States Federal Court in the
Eastern District of New York on charges of Conspiracy to Impede the
IRS in the Collection of Tax Revenue, Corporate Income Tax Evasion,
Aiding the Filing of a False Corporate Tax Return and Filing a
False Corporate Tax Return.
The indictment detailed Anthony and
Vincent Sainato's ownership and operation of approximately eleven
companies
in the
construction
and
trucking
industry
including
Suffolk Alpa, dba Suffolk Distributing, and tax frauds committed by
the Sainatos in connection with these companies. (Ex. 6)
On April
27, 2000, a jury returned a verdict of guilty on five of the six
counts against Sainato.
Court
Judge
imprisonment.
Arthur
On March 2, 2001, United States District
Spatt
sentenced
Sainato
to
six
years
Sainato was scheduled to surrender for the service
of his sentence on May 15, 2001. (Ex. 7)
On April 25, 2001 the United States Attorney's Office,
Eastern District of New York, released an indictment that charged
Sainato, Joseph Anemone, Ronald Califano, Frank Campanella, John J.
Deross ("Deross"), Dominick Dionisio, Michael T. Donato, Ralph Jude
Guiccone, Enrico Locasio, Enrico Monteperto, Christopher Mormando,
Alphonse E. Persico
Rizzuto,
Vito
("Persico"), Joseph Anthony Petillo, Paolu
Salerno
and
Silvio
Salome
embezzlement, mail fraud and extortion.
with
racketeering,
(Ex. 9) The indictment
identified Persico at various times as a captain and acting boss of
the Columbo LCN Family. (Ex. 9 at 4) The Permanent Subcommittee on
Investigations in their report, Organized Crime: 25 Years After
Valachi identified Persico as a Columbo LCN family member. (Ex. 8)
The indictment identified Deross as an underboss in the Columbo
Family.
(Ex. 9 at 4-5) Anemone, Califano, Campanella, Dionisio,
Donato, Guccione, Locasio, Monteperto, Mormando, Petillo, Rizzuto
and Salome were named as Columbo Family associates. (Ex. 9 at 4)
The indictment named Sainato and Campanella as Columbo associates
who jointly operated and managed a trucking company, Suffolk Alpa.
(Ex. 9 at 6-7)
The indictment charged among other things that
Sainato and Campanella conspired to embezzle and defraud funds from
non-Teamster
Local
4 00 by
employees who worked
identified
lying
about
at the company.
the
correct
number
The
indictment
of
further
Campanella as a member of the crew of Columbo LCN
captain William Cutolo ("Cutolo").
Cutolo who disappeared on May
26, 1999 (Ex. 9 at 5) was a former Local 861 member and principal
officer.
In
permanently
a
1990
decision,
the
Independent
Administrator
barred Cutolo from the IBT for being a member of
organized crime. (Ex. 10 at 32-35)
C.
Local 282*s Organized Crime History
Local 282 represents building material Teamsters in New
York,
New
organized
York.
crime.
IBT
Local
(Ex.
11)
282 was
Its
historically
past
officials
dominated
were
by
closely
associated with or controlled by members of La Cosa Nostra for
decades. For example, John O'Rourke, President of Local 282 from
1931-1965 was closely associated with Luchese Family member John
"Johnny Dio" Dioguardi and Anthony "Tony Ducks" Corallo. From 19761984, Local 282's President was John Cody, a close associate of the
Gambino Crime Family.
(Ex. 11) Cody was convicted of operating
Local 282 as a racketeering enterprise through extortion, kickbacks
and bribery. (Ex. 12)
In 1991, Salvatore Gravano ("Gravano"), an admitted member and
the Underboss of the Gambino LCN Family, detailed the organized
crime control over Local 282. (Ex. 11) Gravano acknowledged that
John Gotti, then the boss of the Gambino Family, appointed him to
control Local 282 for the Gambino Family. (Ex. 11) Gravano informed
the government about an illegal payoff scheme involving Local 282
and the Gambino Family.
Under the scheme, Local 282 officials were
directed by Gravano to demand illegal payoffs from contractors who
employed Local 282 members. Contractors were forced to pay to
ensure union cooperation and to gain special favors from the union
such as having no foreman on a job to enforce work rules. (Ex. 11)
LCN member Gravano reported that he had a close relationship with
Local 282 officers including former Local 282 President Robert
Sasso
("Sasso") and
former Secretary-Treasurer
Michael
Carbone
("Carbone"). According to Gravano, Sasso and Carbone were Gambino
Crime Family associates. Gravano further advised that when employer
payoffs were generated in Local 282, he would receive money from
either Sasso or Carbone. If a Local 282 officer or business agent
other than Carbone received a payoff, that individual ordinarily
shared it with Sasso. (Ex. 11) According to evidence presented at
John Gotti's 1992 trial, Gotti personally received more than $1
million a year in racketeering proceeds from Local 282. (Ex. 13)
In December
Sasso
and
organized
1991, the Investigations Officer
Carbone with
crime
and
knowingly
failing
to
associating
investigate
charged
with
members
of
former
Local
282
President Cody's ties to organized crime.1 In August 1992, Sasso
and Carbone signed agreements with the Investigation's Officer
permanently resigning from the IBT and all of their IBT positions.
(Exs. 14 and 15) In July 1993, the current and former Local 282
officials
Sasso,
Carbone,
Probeyahn
("Probeyahn")
Michael
and
Bourgal
Joseph
("Bourgal"),
Matarazzo
John
("Matarazzo"),
a
former Local 282 business agent, were indicted by a federal grand
jury empaneled
in the Eastern District of New York for
labor
racketeering in violation of Title 18 U.S.C. Section 1962 (d). (Ex.
16) Bourgal replaced Sasso in 1992 as Local 282 President following
Sasso*s resignation while Probeyahn replaced Carbone as SecretaryTreasurer.
charges.
All
In
four men
199 6,
entered
Probeyahn
guilty
and
pleas
Bourgal
to
both
racketeering
entered
into
agreements with the IRB permanently resigning from the IBT to
resolve the September 13, 1995 IRB recommended charges that both
men
engaged
in
labor racketeering
and
committed
perjury
when
testifying before the Investigations Officer. (Ex. 17; Ex. 18)
Since
1991,
24
Local
282
members
have
been
either
permanently barred by the IRB or permanently resigned from the
Local pursuant to an agreement with the IRB.
members were barred
for knowingly
Thirteen of these
associating with members of
organized crime; five members were barred for knowingly associating
with a barred member; four members were barred for failing to
cooperate with the IRB and two members were barred for extorting
In 1982, Cody was convicted of racketeering and sentenced
to 17 years imprisonment. (Ex. 12)
payments to keep labor peace. (Exs 14,15) (Ex.s 17,18,19) (Ex. 28
through 41)
In 1995, Local 282 was placed in government trusteeship
as a result of a civil RICO complaint filed against the Local. (Ex.
20) This complaint detailed the Gambino LCN Family's influence over
Local 282's Executive Board and their receipt, either through Local
282 officers and members or directly from employers and companies
in the industry doing business with Local 282, of proceeds from
racketeering
acts
involving
Local
282 officers,
employees
and
members.
IV.
INVESTIGATIVE FINDINGS
A.
Sainato's November 4, 1996 IRB Sworn Examination
At a November 4, 1996 sworn examination, Sainato testified
that he worked with Campanella at Suffolk Distributors ("Suffolk").
(Ex. 4 at 34-35) Sainato claimed that he was a truck dispatcher.
(Ex. 2 at 7) Sainato denied that he owned or operated the company
and claimed his mother owned the company. Sainato testified that
Campanella was previously employed at Marietta Trucking, which
Sainato's mother owned and was located in Long Island City on 48th
Street
in the
same trailer
as
Suffolk
Distributors.
Marietta
Trucking was part of the tax evasion scheme for which Sainato was
convicted. Campanella was a Local 4 00 steward at Marietta. (Ex. 4
at 34-37; Exs. 6 and 7)) According to a 1997 Local 400 LM-3, Cutolo
was a Vice President for non-IBT Local 400. (Ex 21) Cutolo who
disappeared on May 26, 1999 was a former Local 861 member and
principal officer. (Ex. 9 at 5) In a 1990 decision, the Independent
Administrator permanently barred Cutolo from the IBT for being a
member of organized crime. (Ex. 10 at 32-33,36) Sainato testified
that he occasionally met with Cutolo because of Cutolo's position
in Local 400. Sainato, the then dispatcher at Suffolk, claimed that
Cutolo met with him in order to gain more work for Local 400
drivers. (Ex. 4 at 53-56)
B.
Sainato's May 8, 2 001 IRB Sworn Examination
On May 8, 2001, Sainato appeared for his sworn examination.
(Exs. 2 and 22) During this examination, Sainato asserted his Fifth
Amendment privilege against self-incrimination (Exs. 3 and 23) and
refused to answer at least sixty guestions. (Ex. 2 at 7-20) Sainato
asserted
his
Fifth Amendment
privilege
and
refused
to
answer
whether he knew or had met Cutolo or had any discussions with
Cutolo
in the past five years.
refused
to
answer
guestions
(Ex. 2 at 19) Sainato further
regarding
Suffolk
Alpa,
Marietta
Trucking, his place of employment or his membership in Teamster
Local's 917 and Local 282. (Ex. 2 at 7-20) Finally, when asked to
review a 45 page list of names and identify any individuals on the
list with whom he had associated,
Sainato asserted his
Fifth
Amendment privilege and refused to answer whether he had associated
with any individuals on the list. (Ex. 24) (Ex. 2 at 16-17)
Pursuant to Paragraph G (a) of the March 14, 1989 Consent
Order in United States v. International Brotherhood of Teamsters,
88
Civ.
4486
(S.D.N.Y.),
allegations
of,
organized
crime
associations
and
corruption
are specifically
within the
IRB's
investigative authority. After being informed that his refusal to
answer questions at his sworn examination could result in internal
union disciplinary charges being filed against him for failing to
cooperate with the IRB, Sainato in the presence of his attorney,
Roger Adler, Esq., persisted in his refusal to answer questions
posed by the Chief Investigator including his association with
individuals identified as Colombo LCN Family members and associates
and allegations of his involvement in labor racketeering. (Ex. 2 at
7-8, 14-15)
V.
ANALYSIS
Article XIX, Section
14
(i) of the IBT Constitution
provides:
All
officers,
members,
employees,
and
representatives of the International Union and
its affiliated bodies shall cooperate fully
with the Independent Review Board in the
course of any investigation or proceeding
undertaken by it.
Unreasonable failure to
cooperate with the Review Board shall be
deemed to be conduct which brings reproach
upon the Union, and which is thereby within
the
Review
Board's
investigatory
and
decisional authority.
In prior cases under the Consent Decree, charges have
been
upheld
against
union
members
who
asserted
their
Fifth
Amendment privilege and refused to answer questions during their
sworn examinations. United States v. IBT [Calagna], 1991 U.S. Dist.
LEXIS 11256 (August 14, 1991); Joint Council 16 Decision regarding
Vincent Feola dated November 17, 1998; see, United States v. IBT
[Hickey], 945 F. Supp. 96 (S.D.N.Y. 1996).2
In its November 17,
1998 decision permanently barring Local 813 member Vincent Feola
for
failing
to
answer
two
guestions
posed
in
an
IRB
sworn
examination, the Joint Council 16 wrote:
It is then axiomatic that an unreasonable
failure to answer guestions at an IRB
conducted examination [deposition] violates,
inter alia. Article XIX, Section 14 (i) of the
IBT Constitution.
Moreover, a refusal to answer guestions at an IRB sworn
examination through an assertion of the Fifth Amendment privilege
does not shield the member from discipline. The IRB and its Chief
Investigator are not state actors. United States v. IBT [Simpson],
931 F. Supp. 1074 (S.D.N.Y. 1996) aff'df
1997).
120 F.3d 341 (2d Cir.
In rejecting an IBT member's application for a stay of a
sworn examination on Fifth Amendment grounds, District Judge David
N. Edelstein stated,
[b]ecause the actions of the IRB and its
Investigations Officer do not constitute state
action, the Fifth Amendment privilege against
self-incrimination is inapplicable to Hickey
as a defense against appearing before the
Investigations Officer.
Moreover, should
Hickey elect to invoke the Fifth Amendment
during his sworn examination before the
Investigations Officer, this invocation will
expose him to charges of bringing reproach
upon the union for obstructing the IRB 1 s and
the Investigations Officer's investigation and
endanger his status as a member of the IBT.
United States v. IBT [Hickey]f 945 F. Supp. at 99.
By refusing to answer the above-described guestions, it
These decisions are attached as Exhibits 25 through 27.
10
appears that while an IBT member, Sainato violated Article II,
Section 2(a) and Article XIX, Section 7(b) (1) and (2) and Section
14(i) of the IBT Constitution
by obstructing,
interfering and
unreasonably failing to cooperate with the duties of the IRB as set
forth in Paragraph G of the March 14, 1989 Consent Decree.
VI.
PROPOSED CHARGES
Based upon the foregoing, it is recommended that Local
282 member Anthony Sainato be charged as follows:
While a member of IBT Local 282 and the IBT, you brought
reproach upon the IBT in violation of Article II, Section 2(a) and
Article XIX, Section 7(b)(1) and (2) and Section 14(i) of the IBT
Constitution and obstructed, interfered and unreasonably failed to
cooperate with the duties of the Independent Review Board as set
forth in Paragraph G of the March 14, 1989 Consent Decree in United
States v. International Brotherhood of Teamsters, 88 Civ. 4486
(S.D.N.Y.), to wit:
On May 8, 2001, you willfully and without justification
refused to answer questions during your sworn in-person examination
conducted pursuant to Paragraph H.3(c) of the Rules and Procedures
for Operation of the Independent Review Board, including questions
concerning your interactions with and knowledge of alleged members
and associates of organized crime.
EXHIBITS TO REPORT REGARDING Anthony Sainato
Dues Record of Anthony Sainato
Sworn Examination of Anthony Sainato, May 8, 2001,
Local
282's
Employee
list
for
Max-Tec
Constriction
Sworn Examination of Anthony Sainato, November 4, 1996
List of Trusteeships and Mergers
U.S.D.C.E.D. of NY. Indictment #98-397. Tax Case re:
Anthony Sainato
U.S.D.C.E.D. of NY Sentencing of Anthony Sainato
Organized Crime Hearings, Alphonse Persico
U.S.D.C.E.D. of NY, Indictment re: Anthony Sainato and
Frank Campanella
Opinion of the Independent Administrator
Cutolo
re: William
Declaration re: Local 282
U.S. V John Cody
News Articles
Agreement: Robert Sasso
Agreement: Michael Carbone
U.S.D.C.E.D. of N.Y. Indictment
Bourgal, Probeyahn and Matarazzo
re:
Sasso,
Carbone,
Agreement: John Probeyahn
Agreement: Michael Bourgal
Decision: R. Ferreri, D.
Guidice and P. Ventimiglia
Caracciolo,
R.
Forino,
Local 282 Government Trusteeship
LM-3 Local 400 for 1997, William Cutolo
Notice of Sworn Examination of Anthony Sainato
12
D.
Fifth Amendment Privilege used by Anthony Sainato
May 8, 2001
List of names shown to Anthony Sainato at the May
2001 sworn examination
U.S. V IBT (Calagna)
Joint Council 16 re: Feola
U.S. V IBT (Hickey)
Agreement: Salvatore Barbato
Agreement: Michael DiLeonardo
Agreement: Frank Fappiano
Agreement: Camillo Lombardozzi
Agreement: Joseph Cammarano, Sr.
Agreement: Aniello Madonna
Decision: Perry Baron
Decision: John Bilotti and Robert Calcagno
Decision: Glenn Boggia
Decision: Joseph Cammarano, Jr.
Decision: Theodore Furstman
Decision: Charles Lanza
Decision: Michael Malena
Decision: Peter Menechino
13
INDEPENDENT REVIEW BOARD
444 North Capitol St., NW, Suite 528
Washington, DC 20001
(202) 434-8080
Facsimile (202) 434-8084
Corruption Hotline (800) CALL IRB
Chief Investigator:
Board Members:
Charles M. Carberry, Esq.
17 Battery Place, Suite 331
New York, NY 10004
Benjamin R. Civiletti, Esq.
Venable, Baetjer, Howard & Civiletti
1201 New York Avenue, NW, Suite 1000
Washington, D.C. 20005
Administrator:
Joseph E. diGenova, Esq.
diGenova & Toensing
901 15th Street, NW, Suite 430
Washington, D.C. 20005
John J . Cronin, J r .
September 18, 2001
William H. Webster, Esq.
Milbank, Tweed, Hadley & McCloy
1825 Eye Street, NW, Suite 1100
Washington, DC 20006
Mr. Thomas Gesualdi
Secretary-Treasurer, Local 282
2500 Marcus Avenue
Lake Success, New York 11042
Re:
Decision on Charges Against
Local 282 Member Anthony Sainato
Dear Mr. Gesualdi:
The Independent Review Board has reviewed the Local 282
Executive Board's decision of August 21, 2 001, in the abovecaptioned matter, and finds the decision to be not inadequate.
Very truly yours
Members of the
By:
cc: James P. Hoffa, General President
Patrick J. Szymanski, General Counsel
Roger A. Adler, Esq.
Mr. Anthony Sainato
bcc: Susan Davis, Esq.
Pursuant to the Consent Order of the United States District Court, S.D.N.Y.
United States -v- International Brotherhood of Teamsters 88 CIV 4 4 8 6 (DNE)
few*
,/.
Building Material Teamsters
Local 2 8 2
GARY LA BARBERA
THOMAS GESUALDI
President
Secretary-Treasurer
August 21, 2001
Independent Review Board
444 North Capitol St. NW - Suite 5 2 8
Washington, DC 20001
Enclosed please find copies of the Local 282 Executive Board decision and a
copy of the minutes of the August 2, 2001 panel hearing on Brother Anthony
Sainato. If you have any questions please do not hesitate to call me.
Fraternally,
Thomas Gesualdi
Secretary Treasurer
TG/ag
ends.
2500 Marcus Avenue, Lake Success, New York 11042 « (516) 488-2822 a (718) 343-3322 ® Fax (516) 488-4895
Building Material Teamsters
Local 2 8 2
GARY LA BARBERA
President
THOMAS GESUALDI
Secretary-Treasurer
Re: Charges against Local 282 member Anthony Sainato
The Local 282 Executive Board met on August 2, 2001 at 4:00 PM to hear
charges brought against Brother Anthony Sainato by President and Brother Gary
LaBarbera. Before the start of the hearing, Secretary Treasurer Thomas Gesualdi
informed the Board that he received a fax at 3:21 PM from the office of O'Conner &
Mangan, the attorneys representing Anthony Sainato, asking for a postponement of
the Executive Board proceedings. Brother LaBarbera suggested to the Board that we
move forward with the charges against Brother Sainato. The basis of his request was
that Brother Sainato and council had more that ample notice of today's hearing and
believed that the request for a postponement was of an untimely nature. Brother
Gesualdi and the entire Executive Board agreed with Brother LaBarbera's request,
and the proceedings began. The Executive Board reviewed all documents and
exhibits presented by Brother LaBarbera and rendered the following decision. The
Local 282 Executive Board concludes that while a member of the I.B.T, Local 282
Brother Sainato brought reproach upon the I.B.T. in violation of Article II, Section 2
(a) and Article XIX, Section 7 (b) (1) and (2) and Section 14 (i) of the I.B.T.
Constitution and obstructed, interfered and unreasonably failed to cooperate with the
duties of the Independent Review Board as set forth in Paragraph G, of the March
14, 1989 Consent Decree in United States v. International Brotherhood of
Teamsters. The conduct at issue is Mr. Sainato's willful refusal, on May 8, 2001 to
answer questions at his sworn in person examination pursuant to Paragraph H. 39
(c) of the rules and procedures for operation of the Independent Review Board. The
Local 282 Executive Board will sustain the charges brought forth by Brother
LaBarbera and impose the following penalty:
(1) Immediately expel Brother Sainato from membership in Local 282, the
International and any affiliate of the International, and forever bar him from holding
membership or office in or employment with Local 282, the International, any
affiliate of the International, or any affiliated employee benefit fund, and (2) forever
bar Brother Sainato from seeking or accepting money or other compensation for any
goods or services from Local 282, the International, any affiliate of the International,
or any affiliated employee benefit plan, other than the receipt of vested benefits to
which he may be lawfully entitled by reason of prior participation in any employee
benefit plan.
2500 Marcus Avenue, Lake Success, New York 11042 • (516) 488-2822 e (718) 343-3322 » Fax (516) 488-4895