Gene Moriarty, Local 966 Trustee FROM

PRIVILEGED AND CONFIDENTIAL
TO:
Gene Moriarty, Local 966 Trustee
FROM:
Members of the Independent Review Board
DATE:
June 3, 1994
RE:
Proposed Charges Against Former Local 966 President
Vincent Sombrotto, Secretary Treasurer Edwin Gonzalez,
Vice President John Tierney, Trustee James Giblin and
Former Director of Organizing Alfred Faicco
I.
RECOMMENDATION
It is recommended that the Trustee of Local 966 file
charges against former Local 966 President Vincent Sombrotto,
Secretary-Treasurer Edwin Gonzalez, Vice President John Tierney
and Trustee James Giblin and the former Local 966 Director of
Organizing Alfred Faicco.
It is recommended that Vincent Sombrotto ("V.
Sombrotto") be charged with bringing reproach upon the IBT,
breaching his oath of allegiance to the IBT, interfering with the
IBT's legal obligations and engaging in dual unionism by using
Local funds to aid several non-IBT unions and organizing for
these non-IBT Locals which were competitors of the IBT and were
organizing AFL-CIO and Teamster shops.
It is also recommended
that V. Sombrotto be charged with bringing reproach upon the IBT,
breaching his fiduciary duties and embezzling Local 966 funds by
traveling to Chicago at Local 966 expense in order to assist
employer representative Randy McCarthy in business unrelated to
the Local, by sending the principal officer of a non-IBT Local to
the September 1992 Teamster Leadership Academy at Local 966
NYMAIN Doc:59643.11.
expense and by expending Local 966 funds to organize for non-IBT
Locals.
It is further recommended that V. Sombrotto be charged
with bringing reproach upon the IBT, breaching his fiduciary
duties and violating the Local 966 Bylaws by signing blank Local
966 checks in violation of the IBT Secretary-Treasurer's Manual
and the Local's Bylaws.
It is recommended that Edwin Gonzalez ("Gonzalez"),
John Tierney ("Tierney") and James Giblin ("Giblin") each be
charged with bringing reproach upon the IBT, breaching their
fiduciary duties and embezzling Local 966 funds by increasing the
former President's salary by $275 a week during the time, as they
knew, the President was working reduced hours.
In addition, it is recommended that Secretary-Treasurer
Gonzalez, who regularly signed blank Local 966 checks, be charged
with bringing reproach upon the IBT, breaching his fiduciary
duties, failing to keep a bookkeeping system as required by the
IBT Secretary Treasurer's Manual and violating the Local 966
Bylaws.
It is further recommended that Alfred Faicco ("A.
Faicco"), the former Local 966 Director of Organizing, be charged
with bringing reproach upon the IBT, breaching his oath of
allegiance to the IBT and engaging in dual unionism by
simultaneously serving as the Local 966 Director of Organizing
and an officer of Local 2066 of the International Brotherhood of
Electrical Workers ("IBEW").
NYMAIN Doc: 39643.1
2.
II.
BACKGROUND OF LOCAL 966
An investigation of IBT Local 966 located in New York,
New York has been conducted.
On April 27, 1994, as a result of
an IRB recommendation, the IBT General President placed Local 966
in Trusteeship.
The officers of Local 966 prior to the
imposition of a Trusteeship were V. Sombrotto, President and
principal officer; Gonzalez, Secretary-Treasurer; Tierney, Vice
President; Velma Gipson, Recording Secretary; and Trustees Leon
Burke, James Giblin and Patricia Phillips.*
Local 966 is a
member of Joint Council 73 located in New Jersey.
Local 966's attorney is Bryan McCarthy of the law firm
McCarthy, McCarthy and DeMartin.
Bryan McCarthy also represents
IBEW Locals 2066 and 1922, Laborers Local 958, and Independent
Locals 912, 1019 and 911. (Ex. 1 at 20, 59, 68, 73, 87, 106)
As
detailed below, Local 966 has had a suspicious relationship with
each of these Locals.
Bryan McCarthy's father, the late John ("Jack")
McCarthy, was a convicted labor racketeer. (Ex. 4)
Jack McCarthy
was an officer of National Consultants Associated Ltd, an entity
representing management in labor matters. (Ex. 5)
According to a
1967 report of the Permanent Subcommittee on Investigations of
the United States Senate Committee on Government Operations
("Permanent Subcommittee on Investigations") entitled "Labor
For a period of twenty months from March 1992, when Joseph
Faicco resigned as the Local's Vice President, to December 1993,
when Patricia Phillips was appointed a Trustee, it appears that
there was a vacancy on the Local 966 Executive Board.
NYMAIN Doc: 59643.1
3.
Racketeering Activities of Jack McCarthy and National Consultants
Associated, Ltd.",
[t]he financial success of Jack McCarthy's labor
consulting firm, National Consultants Associated
Ltd, largely stemmed from McCarthy's domination
and control of seven local unions which
negotiated collective bargaining agreements with
employers who engaged National Consultants
Associated Ltd. During the period from 1961 to
the time of the subcommittee's hearings, National
Consultants Associated, Ltd., had 122 clients.
Approximately 43 percent of the firm's business
concerned these seven local unions. The principal
union official in four of the seven unions is
Daniel Kapilow, a longtime business associate of
McCarthy. The relationship of the two men
resulted in collusive arrangements, conflicts of
interest, 'sweetheart' contracts, and other abuses
in labor management activities. The labor unions
and National Consultants Associated Ltd., were
vehicles for the improprieties.
(Ex. 5 at 32-33)
The Permanent Subcommittee on Investigations found that Jack
McCarthy controlled IBEW Locals 1922, 2066 and 1430 and reported
that "Jack McCarthy has used his relatives to maintain control of
certain local labor unions." (Ex. 5 at 7, 10, 33)^
During 1966
hearings, Jack McCarthy refused to testify before the Senate,
invoking his Fifth Amendment privilege against selfincrimination. (Ex. 5 at 28)
In or about 1969, Jack McCarthy was convicted of
failing to tell the Department of Labor that he received $33,000
from a company while he was an official of IBEW Local 1430. (Ex.
4)
In 1981, Jack McCarthy was indicted with, among others, Local
966 Trustee Frank D'Ambrosio for racketeering and extortion. (Ex.
^ Currently, IBEW Locals 1922 and 2066 are represented by Jack
McCarthy's son, Bryan. (Ex. 1 at 68, 87)
NYMAIN Doc: 59643.1
4.
6)3
in 1982 Jack McCarthy was convicted of labor racketeering
and sentenced to federal prison.
Beginning in at least 1975, Daniel Kapilow ("Kapilow")
was the Local 966 principal officer. (Ex. 8)
As the Permanent
Subcommittee on Investigations found, Kapilow and McCarthy were
close "business associates". (Ex. 5 at 7)
During the 1966
hearings before the Permanent Subcommittee on Investigations
concerning Jack McCarthy, Kapilow invoked his Fifth Amendment
privilege and refused to testify. (Ex. 5 at 15)
The Permanent
Subcommittee on Investigations found that Kapilow, who was an
officer of IBEW Locals 1430 and 1922 at the time of the hearings,
in furtherance of his conflict of interest
position with Jack McCarthy, recommended to
employers that they hire McCarthy as a labor
consultant to negotiate collective bargaining
agreements with unions in which Kapilow was an
official.
(Ex. 5 at 33)
In or about January 1981, while he was the full-time
Local 966 President, Kapilow moved to Palm Beach Gardens,
Florida. (Ex. 9)
The minutes of the December 9, 1980 Local 966
Executive Board meeting reflected the following statement
concerning the Local's financial condition:
(Ex. 9)
The Board noted the financial status of the Union
as 1980 draws to a close. In spite of the dues
increase effective August 1980, very little surplus
was estimated for 1981 and the Board decided to be
very selective in all but necessary expenditures.
Nevertheless, at this same Executive Board meeting, the following
resolution was passed:
3
In March 1982 D'Ambrosio left Local 966. (Ex. 7)
NYMAIN Doc: 59643.1
5.
Effective January 1981, Local Union 966 will maintain
for the Local's and the President's use the premises
known as 400 West 43rd Street, New York, N.Y.,
Apartment 38-M and shall pay the rent for said
apartment furnished but shall not own the
furniture and fixtures, which have been bought and
paid for by the President, and Local Union 966
shall provide coach air-transportation for President
Kapilow to commute between his home in Florida and
Local Union 966 as needed for him to care for his
Local Union responsibilities.
(Ex. 9)
It appears that between approximately January 1981 and
June 1986, when Kapilow retired, Local 966 paid the airfare for
Kapilow's commute between Florida and New York as well as the
rent for a New York apartment for Kapilow's use.
As of March
1982, the Local paid a monthly rent of approximately $862.00 for
this apartment. (Ex. 7)*
In June 1986, Kapilow retired from
Local 966 and was given a Local-owned car. (Ex. 11)*
Another son of Jack McCarthy, Glenn McCarthy, also had
ties to Local 966.
Beginning in at least 1976, Glenn McCarthy,
was a Local 966 Trustee and business agent. (Ex. 12)
In
approximately 1984, Glenn McCarthy replaced John Agathos as the
Secretary-Treasurer. (Ex. 13)
For a brief period in 1986 and
1987, Glenn McCarthy was the Local 966 President and principal
officer. (Ex. 14)
* Assuming that the rent remained at this same rate until June
1986, between March 1982 and June 1986 the Local expended
approximately $43,962 for Kapilow's New York apartment. (Ex. 10)
The 966 Executive Board minutes reflected that the rent for this
apartment was increased; however the amount of the increase was
not specified. As a result, the actual amount expended by Local
966 was greater than $43,962.
* Gonzalez was the only current Executive Board member on the
Board during the time that Local 966 funded Kapilow's trips to
Florida and his apartment in New York.
NYMAIN Doc: 59643.1
6.
In May 1987, Glenn McCarthy resigned as the Local's
President, reportedly for "personal reasons." (Ex. 14)
In April
1987, Local 966 purchased a new car for Glenn McCarthy's use.
(Ex. 15)
The Local paid $21,619 for this car. (Ex. 15)
When
Glenn McCarthy left the Local the next month, this new car was
given to him. (Ex. 14)
Glenn McCarthy was also paid twenty-eight
weeks of unused vacation when he left the Local. (Ex. 14)*
When Kapilow retired in 1986, Joseph Faicco, who had
been a Local 966 business agent in 1981, returned to Local 966
from his position as business manager of IBEW Local 1922 to
become the Local 966 Vice President and a business agent. (Exs.
16, 17 and 18)? When Glenn McCarthy left Local 966 in 1987, J.
Faicco replaced him as the Local's President and principal
officer. (Ex. 14)
J. Faicco's brother, A. Faicco, was the Local
966 Director of Organizing from at least 1987 until he resigned
in October 1993, shortly after members of the Chief
Investigator's staff began conducting a books-and-records
examination at Local 966. (Exs. 19, 20 and 21; See infra at 3943)*
* According to V. Sombrotto's secretary's message pad, Glenn
McCarthy left thirty-five messages for V. Sombrotto between
October 29, 1992 and April 21, 1994. (Ex. 131)
^ As the Permanent Subcommittee on Investigations found, IBEW
Local 1922 was a Local that had been controlled in the 1960s by
Jack McCarthy. (Ex. 5 at 7, 8)
A brother of Joseph and Alfred Faicco, Dennis Faicco, was
employed by Local 966 in the late 1970s. (Ex. 27) More recently,
Dennis Faicco was an officer of Local 359 of the United Seafood,
Smoked Fish and Cannery Workers Union, a union representing
employees at the Fulton Fish Market in New York City. (Ex. 28)
In a November 17, 1989 newspaper article Dennis Faicco was
(continued...)
NYMAIN Doc: 59643.1
7.
In addition, former Local 966 Secretary Treasurer,
John Agathos ("Agathos") had ties to organized crime.
From
approximately 1976 until April 1984, Agathos was the Local 966
Secretary-Treasurer. (Ex. 22)
During the time that Agathos was a
Local 966 officer he was also an officer of Local 69 of the Hotel
Employees and Restaurant Employees Union ("HERE") located in
Secaucus, New Jersey. (Ex. 13, 23)
In 1984, Agathos left Local
966 and became the Director of Organizing for IBT Local 97,
located in Newark, New Jersey. (Exs. 22 and 24)
On July 24, 1992, the Investigations Officer charged
Agathos with knowingly associating with LCN members Giuseppe
"Pepe" Sabato and Vincent "Fish" Cafaro and LCN associates Thomas
Cafaro and James Cashin. (Ex. 25)^
These individuals were
considered by the Federal Bureau of Investigation to have ties to
the Genovese La Cosa Nostra Family. (Ex. 26)
On April 23, 1993,
Agathos signed an affidavit and agreement agreeing to permanently
resign from the IBT. (Ex. 29)
Bryan McCarthy recommended the Local's current
President, V.
7)
Sombrotto, to be hired at Local 966. (Ex. 30 at 6-
Bryan McCarthy met V. Sombrotto at a football game on Long
Island.
Bryan McCarthy introduced V. Sombrotto to his brother
Glenn McCarthy. (Ex. 30 at 8)
At this time, Glenn McCarthy was
no longer employed at Local 966. (Ex. 30 at 8)
Glenn McCarthy
S(...continued)
reported to have ties to the Genovese La Cosa Nostra family. (Ex.
28)
^ Agathos was also charged with dual-unionism based upon his
simultaneous positions with HERE Local 69 and IBT Local 97. (Ex.
25)
NYMAIN Doc: 59643.1
8.
then introduced V. Sombrotto to J. Faicco who hired him. (Ex. 30
at 7-9)
Prior to being hired by Local 966, V. Sombrotto had no
experience as an officer or employee of a union. (Ex. 30 at 5)*°
V. Sombrotto was hired in 1988 as a business agent. (Ex. 30
at 4)
Beginning in or about June 1990, V. Sombrotto was named
the Assistant to the President, Joseph Faicco. (Ex. 31)"
V.
Sombrotto was appointed Vice President in January 1991. (Ex. 34)
V. Sombrotto ran unopposed in a 1991 election and became the
Local's principal officer in January 1992. (Ex. 35)^
Currently, several employers of Local 966 members are
represented by Randy McCarthy, a son of Jack McCarthy and brother
of Bryan and Glenn. (Ex. 1 at 16)
Randy McCarthy, an attorney,
works at National Consultants Associates. (Ex. 1 at 16)^
As a
result, Bryan McCarthy represented Local 966 while his brother,
Randy McCarthy, represented employers of Local 966 members."
^
V. Sombrotto is a professional lacrosse player with the New
York Saints. (Ex. 30 at 12-13)
** At this time, the Local 966 President, J. Faicco, who had been
in an automobile accident in April 1989, was not working full
time at the Local. (Exs. 2, 32 and 33; See infra at 48-51)
^
It appears that V. Sombrotto allowed Bryan McCarthy to be a
Local 966 member in order to obtain health benefits through the
Local's Health Fund. (Ex. 30 at 22) The Local 966 Employer Roster
listed Bryan McCarthy's law firm, McCarthy, McCarthy & DeMartin,
as an employer. (Ex. 36) The Local 966 dues print out for Bryan
McCarthy reflected that his dues were paid through March 1993.
(Ex. 37) However, there was no collective bargaining agreement
between Local 966 and the law firm McCarthy, McCarthy and
DeMartin.
Former Local 966 officer, Andy Gallin, also works for
National Consultants Associates. (Ex. 1 at 16; Ex. 3)
**
V. Sombrotto maintained that Bryan McCarthy did not have any
role in negotiating contracts in situations where his brother,
Randy, represented employers. (Ex. 30 at 68-69)
NYMAIN Doc: 59643.1
9.
III. INVESTIGATIVE FINDINGS REGARDING LOCAL 966'S DETERIORATING
FINANCIAL CONDITION AND THE LOSS OF MEMBERSHIP
According to the Local 966 1989 LM-2 report, at the end
of that year the Local had $386,819 in net assets. (Ex. 3)
In
contrast, as of December 1993, the Local's net assets totalled
$65,467.52, a drop of $321,351.48 in four years. (Ex. 38)
Furthermore, the Local 966 Trustee Report for December 1993
indicated that the Local's total cash received for that month was
$73,708.24 while the total cash paid out was $90,349.18. (Ex. 38)
The Local 966 LM-2 reports for 1990 and 1991 reflected
that the Local sold its investments during those years. (Ex. 3)
According to the Local 966 Executive Board minutes dated June 11,
1991 and November 6, 1991, the sale of the Local's investments
were necessary in order to pay bills and payroll expenses. (Ex.
39)
An "Initiations and Average Membership" report prepared
by IBT auditors indicated that the Local 966 membership for the
first quarter of 1986 was 4,176. (Ex. 40)
By the second quarter
of 1993, the Local's membership was 2,547, a loss of 1,629
members. (Ex. 40)
This almost forty percent decline in
membership appears to have taken place while V. Sombrotto
assigned Local 966 officers and business agents to organize for
non-Teamster unions.
IV.
INVESTIGATIVE FINDINGS REGARDING V. SOMBROTTO'S BREACH OF
ALLEGIANCE TO THE IBT, DUAL UNIONISM, AND INTERFERENCE WITH
THE IBT'S LEGAL OBLIGATIONS
A.
Introduction
NYMAJN Doc: 59643.1
10.
The jurisdiction of the IBT is virtually unlimited.
Article II, Section 1(a) of the IBT Constitution describes the
jurisdiction of the IBT as follows:
[t]his organization has jurisdiction over all workers
including, without limitation, teamsters, chauffeurs,
warehousemen and helpers; all who are employed
on or around horses, harness, carriages, automobiles
trucks, trailers, aircraft and all other vehicles
hauling, carrying, or conveying freight, merchandise,
or materials; automotive sales, service and
maintenance employees; garage workers and service
station employees; warehousemen of all kinds employed
in warehouse work, stockmen, shipping room employees
and loaders, that is, persons engaged in loading or
unloading freight, merchandise, or other materials on,
to, or from any type of vehicle; all classes of dairy
employees, inside and outside, including salesmen,
brewery and soft drink workers; workers employed in ice
cream plants; all other workers employed in the
manufacture, processing, sale and distribution of
food, milk, dairy and other products; all truck
terminal employees; cannery workers; all craft or
classes of airline employees; office, technical and
professional employees; health care employees;
agricultural employees; public employees and industrial
employees.
V. Sombrotto testified that Local 966 is authorized to
organize the unorganized with the exception of security guards.
(Ex. 30 at 52)** According to V. Sombrotto, Local 966 does not
have any geographic limits on its jurisdiction. (Ex. 30 at 52)
B.
Summary
Despite Local 966's precarious financial condition, its
loss of membership and the practically unlimited jurisdiction of
^ Indeed, Local 966 represents employees at the following
diverse companies: Executive Hairstylists, Inc. located in New
York City; Food Circus Supermarkets, Inc. located in Middletown,
New Jersey; Aark Construction Corp. located in Spring Valley, New
York; Best Western Seaport Inn, located in New York, New York;
Greenwood Cemetery located in Brooklyn, New York; Sparta Dairy
located in Sparta, New Jersey and Midas Muffler shops located on
Long Island. (Ex. 36)
NYMAIN Doc: 39643.1
11.
the IBT, V. Sombrotto brought reproach upon the IBT, breached his
allegiance to the IBT, engaged in dual unionism and interfered
with the IBT's legal obligations by organizing for several nonIBT Locals.
These non-IBT Locals each had connections to V.
Sombrotto's brother or relatives of Bryan McCarthy.
V. Sombrotto exercised his authority as the Local's
principal officer to assist various non-IBT Locals in ways that
were contrary to the interests of the IBT.
As the Local 966
principal officer, pursuant to Section 8(A) of the Local's
Bylaws, V. Sombrotto was responsible for supervising the Local's
business agents.
V. Sombrotto directed Local 966 employees to
organize for Laborers Local 958.
Laborers Local 958, run by
Bryan's brother, Gregg McCarthy, has infringed upon the
jurisdiction of IBT Locals 27 and 813.
It appears that two Local
966 employees, Secretary Treasurer Gonzalez and business agent
Stephen Zaccherio ("Zaccherio"), were assigned by V. Sombrotto to
organize for Laborers Local 958 at Nekoboh, a shop where Laborers
Local 958 was taking members from IBT Local 813.
V. Sombrotto also directed Local 966 employees to
organize for non-AFL-CIO affiliated unions, Independent Locals
1019 and 912.
Bryan McCarthy represents both of these unions.
Independent Local 1019 was run by S. Sombrotto, V. Sombrotto's
brother.
912.
S. Sombrotto was also an officer of Independent Local
In 1991, Bryan McCarthy's brother, Gregg McCarthy, was an
Independent Local 912 officer.
V. Sombrotto organized for
Independent Local 912 and, in one instance, aided that local to
raid a shop where an AFL-CIO affiliated union represented
NYMAIN Doc: 39643.1
12.
employees.
As a result of V. Sombrotto's conduct, the IBT was
found to have violated Article XX of the AFL-CIO Constitution.^
V. Sombrotto also fostered Local 966's entanglements with non-IBT
Locals by allowing individuals to simultaneously be on the
payroll of both Local 966 and one or more non-IBT Locals.
C.
v. Hamhrotto Assisted Laborers Local 958
1.
Background of Laborers Local 958
The President of Laborers Local 958 is Gregg McCarthy,
a brother of Bryan McCarthy. (Ex. 43)^
Bryan McCarthy, Local
966's attorney, is also the attorney for Laborers Local 958. (Ex.
In or about 1987 the IBT reaffiliated with the AFL-CIO.
Article XX, Sections 1 and 2 of the AFL-CIO Constitution provides
that:
Section 1. The principles set forth in this
Article shall be applicable to all affiliates of
this federation, and to their local unions and
other subordinate bodies.
Section 2. Each affiliate shall respect the
established collective bargaining relationship of every
other affiliate. No affiliate shall organize or
attempt to represent employees as to whom an
established collective bargaining relationship exists
with any other affiliate. For purposes of this
Article, the term, "established collective bargaining
relationship" means any situation in which an
affiliate, or any local or other subordinate body
thereof, has either (a) been recognized by the employer
(including any governmental agency) as the collective
bargaining representative for the employees involved
for a period of one year or more, or (b) been certified
by the National Labor Relations Board or other federal
or state agency as the collective bargaining
representative for the employees.
Laborers Local 958 is located at 225 Lafayette Street in New
York, New York. (Ex. 43) In 1986, the President's Commission on
Organized Crime identified the Laborers International as one of
four International unions dominated by organized crime. (Ex. 116)
NYMAIN Doc: 39643.1
13.
1 at 73)
This Local represents employees in the waste material
and recycling industries.**
It appears that Local 966 and Laborers Local 958 had at
least two employees, James Slattery ("Slattery") and Cesar
Alarcon ("Alarcon"), in common within the past few years.
Beginning in or about 1991, Slattery was an auditor in the Local
966 Health Fund. (Ex. 1 at 84)'* Slattery apparently left his
position with the Local 966 Health Fund shortly after the Chief
Investigator began a books and records examination at Local 966.
(Ex. 44)
Slattery was employed by Laborers Local 958 at the same
time he was on the Local 966 Health Fund payroll. (Ex. 43)^
According to the Local 966 September 29, 1992 Executive
Board meeting minutes, V. Sombrotto hired Alarcon to work parttime for Local 966 effective June 29, 1992. (Ex. 47)
However,
prior to being employed by Local 966, between approximately
January 1992 and June 1992, Local 966, with V. Sombrotto's
approval, paid expenses directly to Alarcon totalling
approximately $3,700. (Ex. 48)
During this time, Alarcon was not
on the Local 966 payroll. (Ex. 49; Ex. 1 at 92-93)
Apparently
between January and June 1992, Alarcon was employed part-time by
Between October 29, 1992 and April 21, 1994, Gregg McCarthy
left twenty-seven telephone messages for V. Sombrotto. (Ex. 131)
^ It also appears that Slattery worked for independent Local 912
and IBEW Local 2066 while he was employed by the Local 966 Health
Fund. (Exs. 45 and 46)
On or about August 16, 1993, "Gregg" left the following
telephone message for V. Sombrotto: "re: Jimmy Slattery's salary
change." (Ex. 132)
NYMAIN Doc: 39643.1
14.
Gregg McCarthy at Laborers Local 958 and was paid a salary and
expenses by Local 958. (Ex. 1 at 88)
A review of the Local 966 expense voucher forms
completed by Alarcon between January 1992 and June 1992 revealed
that some of the expenses were identified as involving Laborers
Local 958. (Ex. 48)
For example, the Local 966 expense voucher
form submitted by Alarcon for the week ending January 26, 1992
showed that on four days Alarcon sought reimbursement for parking
at Laborers Local 958. (Ex. 50)
Local 966, with V. Sombrotto's
approval, paid these expenses. (Ex. 50)
V. Sombrotto, the Local 966 principal officer
responsible for supervising Alarcon, did not keep records of the
dates that Alarcon worked for Local 966. (Ex. 1 at 94)
Moreover,
the Local 966 expense voucher forms submitted by Alarcon often
did not reflect what, if any, work Alarcon did for Local 966.
(Ex. 48)
For example, Alarcon's Local 966 expense voucher for
the week ending April 24, 1992 did not identify what work Alarcon
did for 966. (Ex. 51)
Nevertheless, Local 966, with V.
Sombrotto's approval, paid Alarcon $60 a day for five days that
week for "organizing expenses." (Ex. 51)
In or about July 1992, Alarcon was put on the Local 966
payroll and was paid $75 a week. (Ex. 49)
According to V.
Sombrotto's secretary's telephone message log, on or about March
22, 1993, V. Sombrotto received a telephone message from "Gregg"
NYMAJN Doc: 59643.1
15.
which stated "Cesar's salary $250." (Ex. 120)^
The next week,
Alarcon's salary was increased to $250 per week. (Ex. 49)
In or about June 1992, V. Sombrotto apparently agreed
on behalf of Local 966 to retroactively pay Laborers Local 958
$2,675.54, representing a portion of the expenses and salary paid
to Alarcon between December 1991 and June 1992. (Ex. 52)
In
calculating the amount Local 966 should reimburse to Laborers
Local 958, apparently the payments made by Local 966 directly to
Alarcon were taken into account. (Ex. 52)
As a result, it
appears that Local 966 and Laborers Local 958 each paid one half
of the total expenses and salary paid to Alarcon from December
1991 through June 1992. (Ex. 52)^
V. Sombrotto claimed that this arrangement was made
because Alarcon performed Local 966 work while he was being paid
by Laborers Local 958. (Ex. 1 at 97-100)
However, since V.
Sombrotto did not keep records of the time spent by Alarcon doing
Local 966 work, there are no records supporting his decision to
retroactively reimburse Laborers Local 958 for one half of
Alarcon's salary and expenses.
In approximately August 1993, Alarcon left Local 966
employment as a result of an Article XX complaint filed against
the IBT based upon his conduct while apparently assisting
^ At the time of this message, Gregg McCarthy was the President
of Laborers Local 958.
^ As a result of this agreement, beginning in November 1992 and
continuing through February 1993 Local 966 paid Laborers Local
958 $200 each week in retroactive payment for Alarcon's expenses
and salary. (Ex. 52; Ex. 1 at 98)
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16.
Independent Local 1019 to raid an AFL-CIO affiliated union at
M.W. Warehouse. (Ex. 30 at 75-76; Ex. 119; See infra at 31-32)
2.
Laborers Local 958's Infringement on the
Jurisdiction of IBT Local 813
IBT Local 813 located in New York, New York represents
drivers, helpers, yardmen and mechanics in the sanitation,
demolition and construction industries in New York. (Ex. 53 at 4)
On September 7, 1993 Local 813 was placed into Trusteeship.^
The Trustee of IBT Local 813 is Joseph Foy.
According to Robert Hunt ("Hunt"), who has been a Local
813 business agent for the past ten years, Laborers Local 958
infringed upon the jurisdiction of IBT Local 813 at several
locations. (Ex. 53 at 4-5)
According to Local 813 Membership
meeting minutes dated June 20, 1990,
Secretary-Treasurer Adelstein alerted the
membership to the fact that there are some other Locals
like Local 445, a laborers local, Local 970 and Local
958, who in the past and currently are actively
trying to sign up workers in Local 813's jurisdiction.
In almost every case, these Locals negotiate sweetheart
contracts with poor working conditions, low wages, and
relatively no benefits and are brought in by the
Employers as a means to keep Local 813, [sic] out.
(Ex. 54)
^ The former president of Local 813, Bernard Adelstein, was
removed from the IBT by the Independent Administrator based upon
his knowing association with a member of organized crime.
Bernard Adelstein's two sons, Martin and Alan, were suspended
from the IBT for five years based upon the finding that they
failed to investigate the organized crime ties of their father.
NYMAJN Doc: 59643.1
17.
In approximately September 1993, the Local 813 Trustee brought
Laborers Local 958's raiding activities to the attention of the
IBT legal department. (Ex. 55)
Business agent Hunt testified that there was an NLRB
supervised election between IBT Local 813 and Laborers Local 958
at a shop called Nekoboh. (Ex. 53 at 8-13)^ According to Hunt,
Nekoboh was an alter-ego of Barretti Carting, a company under
contract with Local 813. (Ex. 53 at 10)
Hunt testified that IBT
Local 813 represented the following types of employees at
Barretti Carting: truck drivers, mechanics, helpers on the
trucks, welders, truck washers and tire repairmen. (Ex. 53 at 9)
With respect to Barretti Carting and Nekoboh, business
agent Hunt testified that,
(Ex. 53 at 8)
there were men working around the yard which
were pickers and doing different things around
Barretti's yard, and they wanted to be part
of our union also. So we allowed them to sign
an application to join our union. And upon
them signing the application, we found out
that some of these workers were in a union
that they said they didn't know anything
about.
Hunt identified Local 958 as the union these employees were
members of, yet "didn't know anything about." (Ex. 53 at 8-9)
On
December 4, 1990, an NLRB supervised election was held between
IBT Local 813 and Laborers Local 958 at Nekoboh. (Ex. 1 at 78)
The Laborers Local won the election. (Ex. 53 at 9)
Local 966 Secretary-Treasurer and business agent
Gonzalez and Local 966 business agent Zaccherio each testified
^
Nekoboh is Hoboken spelled backwards.
NYMAJN Doc: 59643.1
18.
that V. Sombrotto assigned them to assist Gregg McCarthy at Local
958. (Ex. 56 at 7; Ex. 57 at 9-12)
Gonzalez testified that he
translated for Gregg McCarthy at a company called "Hoboken
spelled backwards," that is Nekoboh. (Ex. 56 at 62-63)^
Local
966 business agent Zaccherio assisted Gregg McCarthy to organize
at Barretti Carting and knew that there was an election between
IBT Local 813 and Laborers Local 958 at that location. (Ex. 57 at
9-12)
Accordingly, V. Sombrotto assigned Local 966 employees to
assist Laborers Local 958 to organize at a company where Laborers
Local 958 was competing against IBT Local 813.^
Hunt testified that at other employers Local 958
members were doing work that was within the jurisdiction of Local
813. (Ex. 53 at 5)
These employers included V. Ponte and Sons,
Inc. and Jem Sanitation. (Ex. 53 at 5, 17-18, 20-21)
Hunt
testified that, as a result of a complaint he made to management
at V. Ponte and Sons, four members of Laborers Local 958 who were
doing Local 813 work were transferred into IBT Local 813. (Ex. 53
at 13-16, 25-26)^
An NLRB supervised representation election
^
Hunt testified that on the day of the NLRB supervised
election at Nekoboh, a Spanish speaking man translated for
Laborers Local 958. (Ex. 53 at 10-11)
^ The NLRB supervised election between IBT Local 813 and
Laborers Local 958 was held in December 1990. (Ex. 1 at 78)
Beginning in at least June 1990, V. Sombrotto was Assistant to
Local 966 President, Joseph Faicco, who was not working full
time. (Ex. 31) At the time of the IBT Local 813-Laborers Local
958 election at Nekoboh, J. Faicco was apparently only working
approximately eight hours a week. (Exs. 32 and 59)
^ Similarly, as a result of discussions between Hunt and Local
813 employer Jem Sanitation, an employee who was a member of
Laborers Local 958 was transferred to IBT Local 813. (Ex. 53 at
17-18)
NYMAJN Doc: 59643.1
19.
between IBT Local 813 and Laborers Local 958 will be held shortly
at V. Ponte and Sons. (Ex. 117)
3.
Laborers Local 958's Infringement on the
Jurisdiction of IBT Local 27
IBT Local 27, located in New York, New York, represents
employees in the paper products industry.
The members of Local
27 include drivers in the paper recycling industry. (Ex. 60 at 6)
In approximately April 1992, Local 27 was placed in Trusteeship
based upon the pervasive organized crime influence in that Local.
The Local 27 Trustee is Timothy O'Connor.
Two of the current
Local 27 business agents are Charles Ibach ("Ibach") and Richard
Ruggiero ("Ruggiero"). (Ex. 60 at 4; Ex. 61 at 4)
According to Local 27 business agent Ibach, Laborers
Local 958 infringed upon Local 27's jurisdiction by representing
drivers who should be members of Local 27. (Ex. 60 at 6-7)
According to Ibach, employers of Local 27 members have placed
employees who should be Local 27 members into Laborers Local 958.
(Ex. 60 at 19)
According to Ibach and Ruggiero, during their
visits to various shops, employees who were reportedly Laborers
Local 958 members, advised them that they never met any Laborers
Local 958 officer or business agent. (Ex. 60 at 21; Ex. 61 at 1213)^
Ibach stated that Laborers Local 958,
[gives] no benefits and they are a lot cheaper and
they are not supporting the men and it's simple. It's
^ Ibach testified that on several occasions he tried to contact
Laborers Local 958 officers, however none of his phone calls were
returned. (Ex. 60 at 14)
NYMAIN Doc: 39643.1
20.
like a local that collects dues and don't do nothing
[sic] for you. That's only my personal opinion, what I
am observing in the last six, seven months, what I hear
from drivers as well.
(Ex. 60 at 15)
According to Ibach, a Local 27 employer, Tocci Brothers
("Tocci"), took employees who fell within job classifications
covered by Local 27, and placed those individuals in Laborers
Local 958. (Ex. 60 at 8)
Ibach testified that in approximately
the summer of 1993, he went to the Tocci job site and asked
employees for their union books. (Ex. 60 at 7)
At that time,
Ibach spoke to at least four individuals, Ernesto Velez, Tommy
Alfano, Craig Caedle and Paul Issenger, who were Tocci truck
drivers.
According to Ibach, these drivers, who should have been
Local 27 members, were members of Local 958. (Ex. 60 at 7-11)^
According to Ibach, Velez and Issenger were put into
Laborers Local 958 by the employer. (Ex. 60 at 8, 11)^
Ibach
also testified that he was informed by Randy McCarthy, the
attorney for Tocci, that Caedle and Alfano were Local 958
members. (Ex. 60 at 9, 16, 25)
As discussed supra at 9, Randy
McCarthy is a brother of Local 958's President Gregg McCarthy and
Bryan McCarthy, the attorney for both Laborers Local 958 and
Local 966.
^ Local 27 business agent Ruggiero confirmed that Laborers Local
958 infringed upon the jurisdiction of Local 27. (Ex. 61 at 6-8)
Ibach testified that Velez signed a Local 27 membership
application form. (Ex. 60 at 8) According to Ibach, after Velez
signed the Local 27 membership application form, the employer put
Velez into Laborers Local 958. (Ex. 60 at 7)
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21.
Tocci is apparently a member of the Greater New York
Waste Paper Association Inc., an employer association. (Ex. 60 at
17, 19)
Frank Giovinco ("Giovinco"), is an association
representative for the Greater New York Waste Paper Association
Inc.. (Ex. 60 at 19-20; Ex. 62)
According to the 1990 LM-2 for
Laborers Local 958, Frank Giovinco was a business agent for
Laborers Local 958 during that year. (Ex. 43)
In addition, the
address for the Greater New York Waste Paper Association was the
same as the address for Laborers Local 958. (Ex. 63)^
A comparison of the collective bargaining agreement
between Laborers Local 958 and the Greater New York Waste Paper
Association and the contract between Local 27 and Tocci revealed
that the Laborers contract appears to be inferior to the IBT
Local 27 contract in several respects. (Exs. 63 and 64)
For
example, under the Local 27 collective bargaining agreement
effective from December 1, 1990 through November 30, 1993,
between December 1, 1990 and November 30, 1991, Tocci was
required to make a Welfare Fund contribution on behalf of each
employee in the amount of $54 a week. (Ex. 64)
In contrast, the
collective bargaining agreement between Local 958 and the Greater
New York Waste Paper Association effective March 1, 1991 through
February 28, 1994 required employers to make weekly Welfare Fund
contributions of $20 for each employee for the duration of the
contract. (Ex. 63)
The Local 27 contract required Tocci to make
weekly Pension Fund contributions for each employee in the amount
It appears that the Greater New York Waste Paper Association
moved to a new address in New York, 511 Canal Street. (Ex. 61 at
9; Ex. 62)
NYMAIN Doc: 39643.1
22.
of $60 from December 1, 1990 through November 30, 1993. (Ex.
64)^
The Laborers Local 958 contract with the Greater New York
Waste Paper Association required weekly employer Pension Fund
contributions in the amount of $13 effective March 1, 1991; $14
effective March 1, 1992 and $15 effective March 1, 1993. (Ex. 63)
Ibach spoke to Giovinco about the problems between IBT
Local 27 and Laborers Local 958 and Giovinco stated that he would
look into the problem of Laborers Local 958 taking members who
should be members of IBT Local 27. (Ex. 60 at 17-18)
However,
according to Ibach, Giovinco did nothing to rectify the problem.
(Ex. 60 at 24)
As a result, IBT Local 27 requested mediation
from the New York State Mediation Board.
(Ex. 61 at 9-11; Ex.
65)
Ibach also testified that Laborers Local 958 has
members who should be members of IBT Local 27 at three other
employers, C. Filiberto and Sons Inc., Alpine Paper Recycling
Inc. and Giove, Inc.. (Ex. 60 at 13-14, 18, 22-24)
IBT Local 27
requested intervention by the New York State Employment Relations
Board concerning the jurisdictional problems at C. Filiberto and
Sons Inc. and Alpine Paper Recycling Inc.. (Ex. 66)
4.
V. Sombrotto Assigned Local 966 Business Agents To
Assist Local 958
^ in July 1993, Local 27 and Tocci agreed that between July 1,
1993 and November 30, 1993, the employer would contribute $124.50
each week for each employee to the Welfare Fund and no Pension
Fund contributions would be made by the employer during this
period. (Ex. 64)
NYMAIN Doc: 39643.1
23.
Gonzalez was a full-time Local 966 business agent and
the Local's Secretary-Treasurer.
At V. Sombrotto's direction,
Gonzalez assisted Laborers Local 958 President Gregg McCarthy by
translating McCarthy's statements into Spanish while he organized
for Laborers Local 958.
Gonzalez testified that he only assisted
Gregg McCarthy when directed to do so by V. Sombrotto. (Ex. 56 at
7-9)
Gonzalez assisted Gregg McCarthy at four or five different
locations. (Ex. 56 at 5-6)
Approximately a year and a half to two years before his
March 1994 sworn examination, at V. Sombrotto's instruction,
Gonzalez translated for Local 958 President Gregg McCarthy at
Mamaronek Truck Repair. (Ex. 56 at 12, 14)
As detailed supra at
18, Gonzalez translated for Local 958 President Gregg McCarthy at
Nekoboh.
Local 966 business agent Zaccherio also campaigned with
Gregg McCarthy for Laborers Local 958 at Barretti Carting, the
parent company of Nekoboh. (Ex. 57 at 9-12)
Gonzalez and Zaccherio were not paid by Laborers Local
958 for their services. (Ex. 56 at 14; Ex. 57 at 11)
In
addition, both Gonzalez and Zaccherio testified that they were
not aware of Laborers Local 958 reimbursing IBT Local 966 for
their time. (Ex. 56 at 56; Ex. 57 at 11)
The Local 966 Cash
Receipts Journal from January 1990 through August 1993 did not
reflect any payment by Laborers Local 958 to IBT Local 966 for
Gonzalez's and Zaccherio's services. (Ex. 67)
As a result, it
appears that V. Sombrotto provided free assistance to Laborers
Local 958, a Local with a history of ongoing jurisdictional
disputes with IBT Locals 813 and 27.
NYMAIN Doc: 39643.1
V. Sombrotto, as the record
24.
reveals, expended Local 966 funds to assist the McCarthys and not
the members he was bound to represent.
D.
V. Sombrotto Assisted Independent Local 912
1. Background of Independent Local 912
In or about May 1991, Gregg McCarthy, President of
Laborers Local 958, was also the President of Independent Local
912. (Ex. 68 at 38)
At that time, S. Sombrotto was the Recording
Secretary and Randy Tucker ("Tucker") was a Local 912 Trustee.
(Ex. 68 at 38)^
^he attorney for Local 912 was Bryan McCarthy.
(Ex. 68; Ex. 1 at 20)**
As of approximately July 1993, the officers of
Independent Local 912 were Tucker, President; S. Sombrotto,
Secretary Treasurer, Frank Tashman, Recording Secretary; and
Trustees John Detomasso, Esau Campaigne and Roberto Cooper. (Ex.
69)^
Sombrotto knew Tucker from playing football on Long
Island and John Detomasso was V. Sombrotto's friend. (Ex. 1 at
19, 21)
Between October 29, 1992 and April 21, 1994, Tucker left
fifty-eight telephone messages for V. Sombrotto. (Ex. 131)
33 Although Tucker was described as a Local 912 officer in May
1991, during a July 1993 interview with representatives of the
Department of Labor, Tucker stated that independent Local 912
came into existence in approximately November 1991. (Ex. 69)
3* According to V. Sombrotto's secretary's message pad, on March
22, 1993, Bryan McCarthy left a telephone message for V.
Sombrotto asking V. Sombrotto to inform "people at 912" of a
meeting concerning the Department of Labor. (Ex. 120)
3s Between October 29, 1992 and April 21, 1994, Frank Tashman
left twelve telephone messages for V. Sombrotto. (Ex. 131) On
September 10, 1993, Frank Tashman left the following message for
V. Sombrotto "needs more posters." (Ex. 134)
NYMAJN Doc: 59643.1
25.
As of July 1993, Independent Local 912, which had no
office, had approximately 480 members. (Ex. 69)
Apparently, the
Local 912 books and records were maintained at Tucker's home.
(Ex. 69)
IBT Local 966 and Local 912 both represented building
maintenance employees. (Ex. 1 at 20)
for office staff. (Ex. 69)
Local 912 had no payroll
Apparently, while employed by the
Local 966 Health Fund, James Slattery was the Local 912 Vice
President. (Ex. 1 at 86; Ex. 70)
As discussed supra at 13-14, in
1992, Slattery also had a position with Laborers Local 958 and
IBEW Local 2066.
In approximately May 1993, S. Sombrotto was arrested on
a felony charge of coercion in the first degree while he was
organizing for Independent Local 912. (Ex. 30 at 16-17; Ex. 71)
Local 966 organizer Ike Padilla ("Padilla") was indicted along
with S. Sombrotto for two counts of coercion in the first degree.
(Ex. 77)
At the time of the conduct charged in the indictment,
Padilla was a full time Local 966 organizer being paid a weekly
salary of $525. (Ex. 118)
2. V. Sombrotto Organized for Independent Local 912
V. Sombrotto assisted Independent Local 912 in ways
that were detrimental to the interests of the IBT.
For example,
V. Sombrotto and Local 966 business agents campaigned for Local
912 during that Local's raid of an AFL-CIO affiliated shop.
Based upon this conduct, the IBT was found to have violated
Article XX of the AFL-CIO Constitution.
In addition, V.
Sombrotto expended Local 966's scarce resources to send the Local
NYMAIN Doc: 39643.1
26.
912 President to the September 1992 Teamster Leadership Academy
in Washington, D.C.. (See infra at 47-48)
In 1991, V. Sombrotto assisted Independent Local 912 to
raid an AFL-CIO affiliated union, SEIU Local 32B-32J.
This raid
involved employees of Riverside Maintenance Corporation/Ferlin
Industries ("Riverside"), including employees employed at 3333
Broadway in New York City.
SEIU Local 32B-32J, which is
affiliated with the AFL-CIO, represented the employees at 3333
Broadway.3<*
On January 29, 1991, a decertification petition was
filed with the National Labor Relations Board ("NLRB") by
Riverside employee, Esau Campaigne, seeking to end Local 32B32J's representation of certain employees of Riverside. (Ex.
72)3?
May 3, 1991, a hearing was held before the NLRB on this
decertification petition. (Ex. 68)
Bryan McCarthy represented
Independent Local 912, the intervener, at this proceeding.
(Ex. 68)
By an order dated August 8, 1991, the NLRB directed
that an election be held between Locals 32B-32J and 912 for the
representation of certain employees of Riverside. (Ex. 73)
election was held on October 17, 1991. (Ex. 74)
This
According to V.
Sombrotto, because of challenged ballots, the election was not
determinative.
In March 1994, V. Sombrotto testified that he was
3*s Local 966 had a contract to represent certain employees of
Riverside at 1990 Lexington Avenue. (Ex. 1 at 23) It did not
appear that these members were involved in the dispute between
independent Local 912 and SEIU Local 32B-32J.
37 As of July 1993, Esau Campaigne was an officer of independent
Local 912. (Ex. 69)
NYMAIN Doc: 39643.1
27.
recently advised by Tucker that a new election will be held
shortly. (Ex. 1 at 33)
Independent Local 912 had no salaried employees. (Ex.
69)
During the Riverside election campaign, Local 966 officers
and agents actively campaigned for Local 912.
V. Sombrotto knew
that Local 966 itself could not organize the Riverside employees
because such conduct would violate the AFL-CIO Constitution. (Ex.
1 at 24)
Nevertheless, Gonzalez testified that, at V.
Sombrotto's request, he went to 3333 Broadway with Local 912
President Tucker to encourage employees to join Local 912. (Ex.
56 at 34-35)
In addition, V. Sombrotto and Local 966 business
agent Ike Padilla each handed out Local 912 leaflets at 3333
Broadway. (Ex. 1 at 28-30)
On or about September 5, 1991, at Grant's Tomb in
Manhattan, V. Sombrotto, Zaccherio and other Local 966 employees
met with employees from 3333 Broadway. (Ex. 1 at 25-27)
According to Local 32B-32J employee Kyle Bragg, who was present
at this meeting, V. Sombrotto introduced himself as an employee
of Teamsters Local 966 and stated that he was filling in for the
Independent Local 912 officers who were busy. (Ex. 75)
V.
Sombrotto testified that no Local 912 officers were present at
this meeting. (Ex. 1 at 27)
According to Kyle Bragg, when
employees at this meeting had questions about benefits, V.
Sombrotto described Local 966 benefits and when questioned by
NYMAIN Doc: 39643.1
28.
employees, V. Sombrotto stated, in effect, that the Local 912
benefits were the same as the Local 966 benefits. (Ex. 75)^
Independent Local 912 campaign materials during this
1991 campaign were signed by Local 912 President Gregg McCarthy.
(Ex. 74)
In this campaign material, Gregg McCarthy told the
employees voting between 32B-32J and Local 912 to talk to the
Local 966 members employed by Riverside to compare their benefits
to the Local 32B-32J benefits. (Ex. 74)
V. Sombrotto admitted
handing out leaflets for Local 912. (Ex. 1 at 28-29)
Local 912
did not pay Local 966 for the organizing efforts of the Local 966
employees. (Ex. 1 at 31-32)
Based upon Local 966's conduct, on or about September
19, 1991, International SEIU President, John Sweeney, filed a
charge against the IBT with the AFL-CIO alleging that the IBT
violated Section 2 of Article XX of the AFL-CIO Constitution.
(Ex. 76; Ex. 1 at 35)
In this charge, the SEIU alleged that
Independent Local 912 was an alter-ego of IBT Local 966. (Ex. 76)
On November 6, 1991 a hearing was held before an
impartial umpire on the charges against the IBT.
According to a
letter written by Paula Caira, the attorney who represented the
IBT at this hearing, during the hearing, an SEIU employee
testified that V. Sombrotto was observed handing out Independent
Local 912 literature. (Ex. 78)
In addition, photographs were
shown to the impartial umpire showing V. Sombrotto and Local 966
An employee of Local 32B-32J, Tony Mills, informed Bragg that
the four men from Local 966 who attended the September 5, 1991
meeting at Grant's Tomb had been handing out leaflets at 3333
Broadway the day before. (Ex. 75)
NYMAIN Doc: 39643.1
29.
business agent Ike Padilla at a Local 912 organizing meeting.
(Ex. 78)
In a decision dated November 11, 1991, the impartial
umpire found that based upon Local 966's conduct, the IBT
violated Article XX, Section 2 of the AFL-CIO Constitution. (Ex.
79)
V. Sombrotto also organized with Tucker for Independent
Local 912 at a building called Upper Fifth Avenue located at
110th Street and Fifth Avenue. (Ex. 1 at 38, 41)^
At V.
Sombrotto's request, Gonzalez assisted Tucker to organize at Star
Recycling, located in either Brooklyn or Queens.*"
Gonzalez also
assisted Tucker to organize at two other recycling companies.
(Ex. 56 at 31-32)"
E.
V. Sombrotto Supported Independent Local 1019
^ v . Sombrotto claimed that the employees, who were members of
SEIU Local 32B-32J, told him that they were dissatisfied with
their Local. Sombrotto then referred them to Randy Tucker at
independent Local 912. (Ex. 1 at 38-41)
On or about August 25, 1993, Tucker left the following
telephone message for V. Sombrotto: "wants to know if Eddie
[Gonzalez] can go with him today to DRI? Meet him at 958 at
4:00." (Ex. 133)
Beginning in approximately the summer of 1993, Local 912
members were permitted to participate in the Local 966 Health
Fund ("Fund"). (Ex. 1 at 43-44) Gonzalez and Zaccherio were the
union Trustees on the Health Fund. (Ex. 80 at 10) Members of
independent Local 1019 were also allowed to participate in the
Local 966 Health Fund. (Ex. 80 at 69) V. Sombrotto was in favor
of allowing members of these independent unions to participate in
Local 966's Health Fund. (Ex. 30 at 71)
After the Chief Investigator's office conducted a books and
records examination at Local 966, it appears the Local 966
Executive Board directed the union Trustees on the Fund to end
the participation of independent Local 912 and Local 1019 members
in the Fund. (Ex. 81) According to V. Sombrotto, this matter is
currently the subject of arbitration. (Ex. 1 at 44)
NYMAIN Doc: 39643.1
30.
1.
Background of Independent Local 1019
In addition to his position with Independent Local 912,
V. Sombrotto's brother, S. Sombrotto, was also the President of
Independent Local 1019. (Ex. 82 at 20)^
According to S.
Sombrotto's July 28, 1993 testimony before the NLRB, Local 1019
was created in approximately November 1992. (Ex. 82 at 21) Bryan
McCarthy was the attorney for Independent Local 1019. (Ex. 30 at
59)
As of July 1993, the other officers of Local 1019 were
Michael Scotto, Vice President; Philip Zifarrelli, SecretaryTreasurer; Patrick McCabe, Recording Secretary, and three
Trustees, Dominick Maccia, Randy Tucker and Mitchell Brin. (Ex.
82 at 35-36)
As of July 1993, Local 1019 had no paid employees.
(Ex. 82 at 38)
Several Independent Local 1019 officers held positions
with other unions.
According to the most recent LM-2 report
filed by IBEW Local 2066, Michael Scotto was an officer of IBEW
2066. (Ex. 46)
Patrick McCabe and S. Sombrotto were employed by
IBEW Local 1922. (Ex. 1 at 64, 67)**
In 1992, Dominick Maccia
was the business manager and financial secretary of IBEW Local
1430. (Ex. 83)
As discussed, Tucker was the principal officer of
Independent Local 912.
During a July 28, 1993 hearing before the NLRB, S.
Sombrotto testified that Independent Local 1019, which he
^ According to V. Sombrotto, his brother resigned his positions
with independent Locals 912 and 1019 in approximately October or
November 1993. (Ex. 30 at 16)
^ S. Sombrotto testified that, after he started independent
Local 1019 in November 1992, he became a member of IBEW Local
1922. (Ex. 82 at 37-38)
NYMAIN Doc: 39643.1
31.
testified was created in approximately November 1992, had not yet
held any general membership meetings. (Ex. 82 at 43)
S.
Sombrotto also testified that Local 1019, which had no office,
had only three collective bargaining agreements. (Ex. 82 at 22)
2.
V. Sombrotto Directed Local 966 Employees To
Organize for Independent Local 1019
S. Sombrotto testified that in approximately May 1993
he began to organize employees at M.W. Warehouse located in
Secaucus, New Jersey. (Ex. 82 at 21)** According to the
International Ladies Garment Worker's Union ("ILGWU"), M.W.
Warehouse was under ILGWU contract for approximately twenty
years. (Ex. 85)
Independent Local 1019 filed a petition with the
NLRB to represent the M.W. Warehouse employees. (Ex. 85)
V. Sombrotto assigned Local 966 officer and business
agent Gonzalez to assist S. Sombrotto to organize at M.W.
Warehouse on behalf of Independent Local 1019. (Ex. 1 at 16-21)
As a result, Gonzalez attended two meetings of M.W. Warehouse
employees at the Holiday Inn in North Bergen, New Jersey where he
translated for S. Sombrotto. (Ex. 56 at 16-21)
Alarcon, then a
part-time Local 966 business agent, also translated S.
Sombrotto's statements into Spanish for employees at M.W.
Warehouse. (Ex. 56 at 44)
As a result of Local 966's actions, on or about August
12, 1993, the ILGWU sent a complaint letter to IBT President Ron
Carey. (Ex. 84)
^
In this complaint letter, the ILGWU President
M.W. Warehouse was part of Biderman Industries Incorporated.
NYMAIN Doc: 59643.1
32 .
stated that V. Sombrotto had created an alter-ego union,
Independent Local 1019, headed by S. Sombrotto. (Ex. 84)
The
ILGWU President alleged that Local 1019 was created in order to
prevent a raiding complaint being filed against the IBT. (Ex. 84)
The ILGWU President also stated that Alarcon, who carried an IBT
Local 966 business card, spoke to the workers at M.W. Warehouse
and advised them that if they joined Independent Local 1019, they
would be represented by the Teamsters and covered by the Local
966 Health Fund. (Ex. 84)
On August 25, 1993, the ILGWU President filed an
Article XX complaint against the IBT based upon Local 966's
actions.*" (Ex. 85)
On September 21, 1993 IBT President Ron
Carey sent a letter to V. Sombrotto advising him that he should
take "whatever steps are necessary to achieve withdrawal of Local
1019's petition." (Ex. 86)
V. Sombrotto testified that Judith
Scott also contacted him about this Article XX complaint.
As a
result, V. Sombrotto asked his brother to withdraw Local 1019's
petition. (Ex. 1 at 65-66)
On September 22, 1993, S. Sombrotto
withdrew Independent Local 1019's NLRB petition concerning the
employees of M.W. Warehouse. (Ex. 87)
In addition to assisting Independent Local 1019 at M.W.
Warehouse, at V. Sombrotto's request, Gonzalez assisted S.
Sombrotto to organize at a private sanitation company in Newark.
(Ex. 56 at 17)
According to Gonzalez, the employees at that
company were mechanics, drivers, and individuals who worked the
compressors. (Ex. 56 at 17)
^
IBT Local 945 located in Wayne, New
Alarcon left Local 966 at about this time. (Ex. 30 at 73-76)
NYMAIN Doc: 59643.1
33.
Jersey has jurisdiction over private sanitation companies in New
Jersey.
Gonzalez was not paid by Independent Local 1019 for his
services. (Ex. 56 at 15)
Moreover, the Local 966 Cash Receipts
Journal from January 1990 through August 1993 did not reflect any
payment to Local 966 from Local 1019 as payment for Gonzalez's
services. (Ex. 67)
In 1993, Independent Local 1019 apparently attempted to
raid the Amalgamated Clothing and Textile Workers Union ("ACTWU")
at Arrow Linen Supply in Brooklyn.
According to the ACTWU
President, Local 1019 filed a representation petition with the
NLRB to represent the employees at Arrow Linen Supply. (Ex. 88)
In a letter dated October 18, 1993, the ACTWU President wrote to
the AFL-CIO President stating,
(Ex. 88)
in accordance with the AFL-CIO constitution, the
Amalgamated Clothing and Textile Worker's Union,
AFL-CIO, CLC, (ACTWU) hereby invokes the procedures
of Article XX to protect its established collective
bargaining relationship at Arrow Linen Supply Co. Inc.,
from an ongoing raid by an affiliate of the
International Brotherhood of Teamsters.
In this letter, the ACTWU alleged that Local 1019 was an alterego of Local 966. (Ex. 88)
On October 22, 1993 IBT General President Carey sent a
facsimile to V. Sombrotto stating,
as you know, this is the second Article XX complaint
that has been filed against the IBT because of Local
1019's activities. The first complaint involved M.W.
Warehouse and was filed by the ILGWU. The ILGWU's
complaint detailed the alleged connections between
Local 1019 and Local 966. ACTWU's complaint is
similar. In light of the previous complaint and the
facts developed therein, I must advise that I expect
you to take whatever steps are necessary to achieve
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34.
withdrawal of the petition filed at Arrow Linen. It is
further recommended that you advise Local 1019 that its
continuing raiding activity against AFL-CIO unions is
not in the best interest of organized labor and suggest
that it direct its resources toward organizing the
unorganized.
(Ex. 89)
Subsequent to this letter, Independent Local 1019 withdrew its
petition at the NLRB and the Article XX complaint filed by the
ACTWU with the AFL-CIO was also withdrawn. (Ex. 90)
G.
V. Sombrotto's Assistance to Other Non-IBT Locals
1.
IBEW Local 1922
According to the Permanent Subcommittee on
Investigations, IBEW Local 1922 was a local controlled by labor
racketeer Jack McCarthy. (Ex. 5)
Currently, Bryan McCarthy is
the attorney for IBEW Local 1922. (Ex. 1 at 68)
Joseph Faicco
was the business manager of IBEW Local 1922 immediately prior to
becoming the Local 966 Vice President when Kapilow left Local
966. (Exs. 17 and 18)*"* In May 1987, J. Faicco replaced Glenn
McCarthy as the Local 966 President. (Ex. 14)*?
^ The 1984 through 1986 IBEW Local 1922 LM-2 reports listed J.
Faicco as the business manager. (Ex. 18) Prior to going to work
for IBEW Local 1922, J. Faicco had been a Local 966 business
agent in 1981 and 1982. (Ex. 16)
^
Phil Faicco, a relative of A. Faicco and J. Faicco, was an
IBEW Local 1922 business agent in 1984 and 1985. (Ex. 18) In the
years 1986 through 1992 the IBEW Local 1922 LM-2 reports
indicated that Phil Faicco was a member of the Executive Board.
(Ex. 18)
Beginning in at least October 2, 1981 Phil Faicco was
employed by Local 966. (Ex. 102) Phil Faicco's Local 966
employment was terminated on or about August 27, 1982. (Ex. 102)
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35.
During his November 17, 1993 sworn examination, Local
966 business agent Zaccherio testified that, "maybe from time to
time we might help them [IBEW Local 1922] out on an organizing
campaign and maybe they might help us on an organizing campaign."
Zaccherio testified that he had contact with IBEW Local 1922
employees S. Sombrotto, Pat McCabe** and Frank Gauck concerning
organizing issues. (Ex. 42 at 24-25)*" V. Sombrotto acknowledged
that he assisted Local 1922 to organize. (Ex. 1 at 108)
Between August and November 1992 Cesar Alarcon, while
on the Local 966 payroll, apparently worked for IBEW Local 1922.
(Ex. 49)
During this period, Local 966 reimbursed IBEW Local
1922 for a portion of Alarcon's expenses.
Initially, for August
and September 1992 Local 966 reimbursed IBEW Local 1922 for 15%
of Alarcon's expenses. (Ex. 121)
For October and November 1992,
Local 966 reimbursed IBEW Local 1922 for 25% of Alarcon's
expenses. (Ex. 122)
Between August and November 1992, Local 966
reimbursed IBEW Local 1922 approximately $722.00 for Alarcon's
expenses including expenses for gas, parking, tolls, organizing,
auto payments and auto insurance. (Ex. 123)
2.
IBEW Local 1430
In the 1960s, Jack McCarthy was the business manager of
IBEW Local 1430. (Ex. 5)
In the early 1980s, IBEW Local 1430
^ Pat McCabe was a lacrosse player on V. Sombrotto's team. (Ex.
1 at 67) He was also an officer of independent Local 911 run by
Bryan McCarthy's brother in law. (Ex. 1 at 67, 104)
^ As mentioned, IBEW Local 1922 participates in the Joint Unions
Pension Trust with Local 966 and IBEW Locals 2066 and 1430.
NYMAIN Doc: 39643.1
36.
shared an office with Local 966. (Ex. 56 at 27)
Currently, John
Tierney, the Local 966 Vice-President and administrator of the
Local 966 Health and Pension Funds, works one day each week for
the IBEW Local 1430 funds. (Ex. 80 at 16)*
3.
Local 911
Gonzalez testified that, at the request of V.
Sombrotto, he helped Local 911 President, Bob Mitchell
("Mitchell"), organize security guards at a location in the Bronx
approximately one year ago. (Ex. 56 at 54-55)^
V.
Sombrotto
admitted that Gonzalez translated for Local 911. (Ex. 1 at 107)
According to V. Sombrotto, Local 911 was an Independent Local.
(Ex. 1 at 104)
V. Sombrotto assisted Local 911 to organize
security guards at a location called Upper Fifth Avenue in New
York City approximately one year and a half to two years ago.
(Ex. 1 at 104-107)"
Local 911 President Mitchell is Brian McCarthy's
brother-in-law. (Ex. 1 at 104)
V. Sombrotto testified that
Mitchell may be the current Local 911 principal officer. (Ex. 1
at 104)
Brian McCarthy is the attorney for Local 911. (Ex. 1 at
*
It appears that former Local 966 business agent Ike Padilla
may have been simultaneously employed by Local 966 and IBEW Local
1430. The invoice attached to Teamsters Local 966 check number
17091 dated March 25, 1993 appears to be for the rental of an car
driven by Ike Padilla. This invoice contained the notation "Ike
Padilla-L.966 is to be reimbursed from L.1430 IBEW". (Ex. 103)
^ Teamster Local 803, located in Woodhaven, New York, represents
security guards and watchmen in the New York City metropolitan
area.
" Between October 29, 1992 and April 21, 1994, Bob Mitchell left
fourteen telephone messages for V. Sombrotto. (Ex. 131)
NYMAIN Doc: 39643.1
37.
106)
Pat McCabe, whom V. Sombrotto knew from playing lacrosse,
was an officer of Local 911. (Ex. 1 at 67)
McCabe is now a Local
1922 employee. (Ex. 1 at 67)
4.
Local 500A
Gonzalez testified that approximately one year and a
half ago, V. Sombrotto asked him to assist Local 500A officers
Steve Lollo and Joe Bocci.^
Gonzalez translated for the Local
500A officers at a contract ratification meeting. (Ex. 56 at 6567; Ex. 1 at 83)
Local 500A represents employees at commercial
laundries. (Ex. 1 at 81)
H.
Conclusion
Based upon V. Sombrotto's support of non-IBT unions
with ties to his brother and to relatives of Local 966 attorney
Bryan McCarthy, particularly in circumstances when such support
was detrimental to the IBT, it appears that V. Sombrotto breached
his allegiance to the IBT, brought reproach upon the IBT, engaged
in dual unionism and interfered with the IBT's legal obligations
under the AFL-CIO Constitution.
Moreover, Sombrotto's spending
Local 966 money to assist McCarthy locals to organize workers at
lower wages than IBT locals and to raid AFL-CIO shops establishes
that his loyalties lie to the McCarthys and not to the Local 966
" The Laborers Local 958 LM2s for 1988 through 1991 reflected
that, during those years, Lollo was the Local 958 President. (Ex.
43) For a brief period in 1980, Lollo was a Local 966 business
agent. (Ex. 104) Gonzalez testified that Local 500A officer Joe
Bocci had worked for Laborers Local 958. (Ex. 56 at 66)
NYMAIN Doc: 39643.1
38.
members.**
By using Local 966 funds in this way, V. Sombrotto
appears to have brought reproach upon the IBT, breached his
fiduciary duties and embezzled Local 966 funds in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1) and (3)
of the IBT Constitution.
V.
INVESTIGATIVE FINDINGS REGARDING ALFRED FAICCO'S
DUAL UNIONISM
A.
Background of IBEW Local 2066
IBEW Local 2066 was one of the Locals described by the
Permanent Subcommittee on Investigations in its 1967 report as
controlled by labor racketeer Jack McCarthy. (Ex. 5 at 7)
Currently, Local 966 and IBEW Local 2066 share an office in Union
City, New J e r s e y . ^
Recently, several individuals were
** V. Sombrotto may argue that he relied upon attorney Bryan
McCarthy's advice that it was permissible for Local 966 to
organize for other unions. Bryan McCarthy's statements on this
issue were provided in a November 27, 1992 memorandum to V.
Sombrotto. (Ex. 129) However, Sombrotto's organizing for non-IBT
Locals began before McCarthy's November 27, 1992 memorandum. For
example, the campaign on behalf of Independent Local 912 for
representation of the Riverside employees took place in 1991.
Moreover, V. Sombrotto could not have reasonably relied upon
Bryan McCarthy's statements regarding Local 966 employees
organizing for other unions because V. Sombrotto knew that Bryan
McCarthy represented those non-IBT unions. (Ex. 1 at 20, 68, 73,
106, 129-131; Ex. 30 at 59; Ex. 120) In Investigations Officer
v. Anthony Calaona et al. the Independent Administrator held that
the Local 295 Executive Board could not rely upon the statements
of Anthony Calagna's personal attorney regarding the propriety of
paying Calagna's legal fees. Investigations Officer v. Anthony
Calaona et al. Decision of the Independent Administrator (June
14, 1991) at 30-34, aff'd. United States v. IBT Application
XLII1. 88 Civ. 4486, slip op. (November 8, 1991, S.D.N.Y.).
^ Local 966's main office is located at 321 West 44th Street,
New York, New York.
NYMAIN Doc: 39643.1
39.
simultaneously on the Local 966 and IBEW Local 2066 payrolls.
For example, A. Faicco, while the Local 966 Director of
Organizing, was the principal officer of IBEW Local 2066.^
Furthermore, the evidence suggests that A. Faicco, who reportedly
worked out of the shared Local 966-IBEW 2066 New Jersey office,
may not have done Local 966 work for some time.
Bryan McCarthy
is the IBEW Local 2066 attorney. (Ex. 1 at 87)^
IBEW Local 2066 and Local 966 share an office in a
building owned by Teamster Local 560. (Ex. 30 at 10)
Local 966
pays a portion of the rent for this office directly to IBT Local
560. (Ex. 91 at 16)
Local 966 also pays a portion of the New
Jersey office manager's salary. (Ex. 91 at 6)
V. Sombrotto testified that Local 966 has a New Jersey
office in order to service its New Jersey members. (Ex. 30 at 10)
However, no general membership meetings have been held in the New
Jersey office. (Ex. 30 at 10)
Moreover, Magaly Diaz ("Diaz"),
the New Jersey office manager since March 1985, testified that
she saw V. Sombrotto in the New Jersey office only once or twice
in the eight years that she worked there. (Ex. 91 at 4, 25)**
B.
A. Faicco's Dual Unionism and Breach of Allegiance to
the IBT
^ The prior IBEW Local 2066 principal officer, William Donovan,
was also on the Local 966 payroll. (See infra at 42)
^ IBEW Local 2066 participates with Local 966 in the Joint
Unions Pension Trust. IBEW Locals 1922 and 1430 also participate
in this Trust.
s* In contrast, V. Sombrotto testified that he went to the New
Jersey office once a month. (Ex. 30 at 9)
NYMAIN Doc: 39643.1
40.
A. Faicco became a Local 966 business representative in
approximately September 1983. (Ex. 92)
Since at least December
1987, A. Faicco was the Local 966 Director of Organizing. (Ex. 30
at 55)
The annual LM-2 reports filed by IBEW Local 2066
reflected that A. Faicco was an officer of IBEW Local 2066 since
at least 1984. (Ex. 46)
In 1992, A. Faicco became the President
and principal officer of IBEW Local 2066. (Ex. 46)
A. Faicco is
currently the IBEW Local 2066 principal officer.
V. Sombrotto claimed that A. Faicco was a full-time
employee of Local 966 who worked between forty and seventy hours
a week for Local 966. (Ex. 30 at 55-56)
In 1992, Local 966 paid
A. Faicco an annual salary of $44,200, a salary comparable to
that of the other full-time business agents. (Ex. 3)^
In
contrast to V. Sombrotto's description of the allocation of A.
Faicco's time, Diaz, the office manager of the shared New Jersey
office, testified that A. Faicco spent one-half his time doing
Local 966 work and the other half on IBEW Local 2066 business.
(Ex. 91 at 30)
Diaz also testified that A. Faicco worked in the
shared office three or four days a week. (Ex. 91 at 31)
Local
966 paid one-half of A. Faicco's car lease and one-half of his
car phone bill. (Ex. 91 at 41)
V. Sombrotto testified that he did not know whether A.
Faicco's position with IBEW Local 2066 was a full-time position.
He acknowledged that he never asked A. Faicco whether his
position with IBEW Local 2066 was a full-time position or what
^ The IBEW Local 2066 LM-2 for 1992 reflected that A. Faicco's
salary that year was $24,900. (Ex. 46)
NYMAIN Doc: 39643.1
41.
his duties were for IBEW Local 2066. (Ex. 30 at 56)
This is
consistent with Sombrotto running Local 966 for the McCarthys and
not the Local 966 membership.^
Shortly after the Chief Investigator sent Local 966 a
notice of a books-and-records examination, A. Faicco submitted
his letter of resignation to Local 966.
On September 24, 1993
the Chief Investigator sent a notice of a books-and-records
examination by overnight mail to Local 966. (Ex. 93)
This notice
stated that the examination would commence on September 30, 1993.
(Ex. 93)
By letter dated October 1, 1993, A. Faicco resigned his
position with Local 966 effective October 15, 1993. (Ex. 94)"
A. Faicco continues to work for IBEW Local 2066 in the shared
Local 966-IBEW Local 2066 New Jersey office. (Ex. 91 at 19)^
Between October 15, 1993, the effective date of A. Faicco's
resignation from Local 966, and April 21, 1994, A. Faicco left
thirty-seven phone messages for V. Sombrotto. (Ex. 131)
The evidence suggested that A. Faicco may not have done
Local 966 work for some time, if, indeed, he ever did.
Although
A. Faicco was the Local 966 Director of Organizing since at least
December 1987, from January 1991 through December 1993 no
organizing expenses were paid to A. Faicco. (Ex. 96)
M
Moreover,
Bryan McCarthy represented IBEW Local 2066 (Ex. 1 at 87)
"
This letter was stamped received by Local 966 on October 27,
1993. (Ex. 94)
^ Although the December 7, 1993 Executive Board minutes
reflected that the Executive Board did not approve any payment of
unused vacation to A. Faicco, the Local's payroll records showed
that he was paid two weeks unused vacation after the effective
date of his resignation. (Ex. 95)
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42.
according to Diaz, since she began working in the shared New
Jersey office in March 1985, no Local 966 organizing files were
in the New Jersey office. (Ex. 91 at 4, 43)"
In March 1994, Local 966 Trustee and business agent
Giblin testified that A. Faicco stopped attending Local 966 staff
meetings approximately four or five years ago and stopped working
for Local 966 "maybe a couple of years ago . ..." (Ex. 41 at 30,
33)^
At his November 17, 1993 sworn examination, business agent
Zaccherio testified that he did not know that A. Faicco, the
Local 966 Director of Organizing, left the Local one month
before. (Ex. 42 at 17)
Leon Burke, a Local 966 Trustee since
approximately 1978, testified that he never met A. Faicco. (Ex.
Ill at 6-7, 17)
In addition, Velma Gipson, who served as a Local
966 officer since 1988, testified that A. Faicco did not attend
any Executive Board or General Membership meetings. (Ex. 112 at
13-14)
Moreover, although A. Faicco left Local 966 in October
1993, as of March 24, 1994, five months later, V. Sombrotto had
not assigned anyone to replace him in the New Jersey office. (Ex.
1 at 7)
Yet, he continued to pay a portion of the rent and a
portion of the office manager's salary, cutting down on IBEW
Local 2066's expenses with no benefit to Local 966. (Ex. 124)
" In addition, Diaz could only recall dealing with two Local 966
contracts during the time that she worked in the shared office.
(Exhibit 91 at 11)
** During his March 1994 sworn examination, Giblin also testified
that, based upon health problems, A. Faicco reduced his duties
four or five years ago. (Ex. 41 at 34)
NYMAIN Doc: 39643.1
43.
In addition to A. Faicco, within the last few years,
several other individuals were on both the Local 966 and IBEW
Local 2066 payrolls.
James Slattery, who was an auditor in the
Local 966 Health Fund from approximately 1991 to October 1993,"
was listed as a business agent on the IBEW Local 2066 1992 LM-2
report. (Ex. 1 at 84; Exs. 46, 97)
Between 1989 and 1991,
William Donovan ("Donovan") was the IBEW Local 2066 President and
principal officer. (Ex. 46)
The 1989 and 1990 LM-2 reports for
Local 966 listed Donovan as a Local 966 business agent paid
$22,230 in 1989 and $21,060 in 1990. (Ex. 3)<*
In the years 1989 and 1990, the LM-2 reports for IBEW
Local 2066 listed Michael Scotto ("Scotto") as the Vice
President. (Ex. 46)
In 1990 and 1991 Scotto was listed as the
IBEW Local 2066 Secretary-Treasurer. (Ex. 46)
Since at least
December 1987, Scotto was mentioned in the Local 966 Executive
Board meeting minutes as a Local 966 business agent. (Ex. 99)
January 1989, Local 966 paid Scotto $150 a week. (Ex. 100)
In
The
Local 966 payroll records indicated that Scotto's last payroll
check from Local 966 was dated July 7, 1991. (Ex. 100)^
Not only have several individuals been simultaneously on the
" A statement and invoice attached to Teamster Local 966 check
number 17778, dated November 18, 1993 stated in part, "This
automobile was used by James Slattery on the Health Fund who
terminated his employment in October of 1993". (Ex. 97)
^ The Local 966 payroll records showed that Donovan received his
last Local 966 payroll check on March 1, 1991 and was paid four
weeks vacation pay thereafter. (Ex. 98)
^ As discussed supra at 30, during a July 28, 1993 NLRB hearing,
S. Sombrotto, President of independent Local 1019, testified that
Scotto was a Local 1019 officer. (Ex. 82 at 35)
NYMAIN Doc: 39643.1
44.
IBEW Local 2066 and Local 966 payrolls, but the two Locals appear
to have overlapping jurisdictions.
This is particularly
troubling since the Local 966 Director of Organizing was
simultaneously the principal officer of IBEW Local 2066. (Ex. 30
at 59; Ex. 46)
V. Sombrotto acknowledged that IBEW Local 2066
and IBT Local 966 have jurisdiction to organize the same shops.
(Ex. 30 at 10)
According to the IBEW Local 2066 Bylaws, Local
2066 represented electrical manufacturing, warehousing and
maintenance workers in various areas of New Jersey, including
Elizabeth, Newark, Trenton, Fairfield, Dover and Union City. (Ex.
101)
Local 966 also represented employees in these areas of New
Jersey. (Ex. 36)
Based upon A. Faicco's simultaneous positions as the
Local 966 Director of Organizing and an officer of IBEW Local
2066, it appears that A. Faicco brought reproach upon the IBT,
violated his allegiance to the IBT, and engaged in dual unionism.
VI.
INVESTIGATIVE FINDINGS REGARDING THE EMBEZZLEMENT OF UNION
FUNDS AND THE FAILURE TO COMPLY WITH THE IBT SECRETARYTREASURERS MANUAL
A.
V. Sombrotto's Embezzlement of Union Funds
1.
V. Sombrotto's Chicago Trip
In approximately April 1992, V. Sombrotto traveled to
Chicago at Local 966 expense to meet Ed Hanley ("Hanley"),
International President of the Hotel Employees and Restaurant
Employees Union ("HERE"). (Ex. 1 at 53)
V. Sombrotto approved
the Local's payment of his airfare to travel to Chicago to meet
NYMAIN Doc: 39643.1
45.
with Hanley. (Ex. 1 at 71)
V. Sombrotto testified that he went
to Chicago to meet Hanley because Randy McCarthy, an employer
representative, was having difficulty negotiating with HERE Local
100 located in New York, New York."* (Ex. 1 at 53-54) Randy
McCarthy represented the employers in the negotiations with HERE
Local 100. (Ex. 1 at 53-54)<*
The President's Commission on Organized Crime ("PCOC")
described Hanley as having ties to organized crime. (Ex. 125)
During April 1983 hearings before the Permanent Subcommittee on
Investigations, Joseph Hauser, who was convicted of defrauding
union benefit funds, testified that then Chicago LCN boss Tony
Accardo selected Hanley as the International HERE President and
that Chicago organized crime figures continued to have influence
over Hanley. (Ex. 125)
During hearings before the Permanent
Subcommittee on Investigations, Hanley invoked his Fifth
Amendment privilege and refused to testify. (Ex. 125)
In a March 1986 report, the PCOC described HERE Local
100 as controlled by organized crime stating,
HEREIU Locals 6 and 100 were used to dictate the
way in which restaurants could do business in New
York. In return for payoffs, restaurant owners could
pay reduced wages and pension and welfare fund
contributions, or buy a lease on a restaurant shut down
because it owed money to the union, or hire and fire
^ Like the Laborers, with which Sombrotto has fully entangled
Local 966, the Hotel Employees and Restaurant Employees
International Union was one of the International Unions
identified by the President's Commission on Organized Crime as
dominated by organized crime. (Ex. 125)
^ V. Sombrotto testified that he first met Randy McCarthy in
1977 when Randy was a high school wrestling champion. (Ex. 1 at
15)
NYMAIN Doc: 39643.1
46.
without regard to grievance procedures, or operate
without regard to union work rules. (Ex. 125 at 83-84)
In or about late 1991, the HERE International
apparently became aware of a federal investigation of HERE Local
100 located in New York. (Ex. 126)
In or about January 1992,
HERE International President Hanley, reportedly in response to
the federal investigation of HERE Local 100, appointed a Trustee
to take charge of HERE Local 100. (Ex. 127)
Apparently after the
appointment of the International Trustee, employer representative
Randy McCarthy told V. Sombrotto that he was having trouble
negotiating with HERE Local 1 0 0 . ^
As a result, in April 1992,
V. Sombrotto traveled to Chicago to meet with H a n l e y . T h e
McCarthys' interest was at stake so Sombrotto marshalled Local
966's resources on their behalf.
V. Sombrotto's trip to Chicago, which cost Local 966 at
least $452, was of no benefit to Local 966 or the IBT.^
Sombrotto claimed that he "wasn't so much looking out for Randy
McCarthy's situation" and further maintained that he met with
Hanley because he was concerned that the HERE Local 100 members
would lose their jobs. (Ex. 1 at 53-54)
was totally without support.
This self-serving claim
There was no evidence that HERE
v . Sombrotto acknowledged that at the time he met with
Hanley, there was a Trustee in HERE Local 100. (Ex. 1 at 54)
In or about October 1992, the federal government filed a civil
RICO suit alleging that HERE Local 100 was controlled by
organized crime. This suit was settled by a consent decree filed
the same day the complaint was filed. (Ex. 126)
^ There was no evidence that Local 966 was reimbursed for the
cost of this trip. (Ex. 1 at 71)
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47.
Local 100 requested Sombrotto's intervention and Sombrotto
himself acknowledged that he went to see Hanley based upon a
discussion with employer representative Randy McCarthy. (Ex. 1 at
53-54)
As a union officer, V. Sombrotto was a fiduciary
required to ensure that all union funds were used solely for the
benefit of the membership. See. 29 U.S.C. §501(a); United States
v. Local 560. 581 F. Supp. 279, 335 (D.N.J. 1984) (union officers
hold "positions of trust" and accordingly must administer the
union's funds and property with "highest standards of
responsibility and ethical conduct . . ..") aff'd. 780 F. 2d 267
(3rd Cir. 1985) cert, denied. 475 U.S. 1140 (1986);
Investigations Officer v. Morris. IA Decision at 26 (May 22,
1991) ("The Local's assets belong to the Local's members.
The
Local's officers are mere trustees of those assets.") aff'd.
United States v. IBT. 777 F. Supp. 1123 (S.D.N.Y. 1991), aff'd.
Docket Nos. 92-6056, 92-6058 and 92-6089, slip op. (2d Cir. Sept.
15, 1992).
In order to establish a charge of embezzlement, it must
be proven that the respondent acted with fraudulent intent to
deprive the Local of its funds. Investigations Officer v. Ross.
IA Decision at 19-20 (March 1, 1993) aff'd. United States v. IBT.
826 F. Supp. 749 (S.D.N.Y. 1993) aff'd. Docket No. 93-6206, slip
op. (2d Cir. March 15, 1994).
"Authorization from and benefit to
the union are the controlling lodestars to determine whether a
defendant acted with the fraudulent intent to deprive the union
NYMAIN Doc: 39643.1
48.
Cir. 1992).
Here, V. Sombrotto's trip to Chicago to assist an
employer representative was of no benefit to the Local 966
membership.
As a result, it appears that V. Sombrotto had the
fraudulent intent to embezzle Local 966 funds when he traveled to
Chicago at Local 966 expense.
2.
V. Sombrotto Sent Independent Local 912 President
to the Teamster Leadership Academy
In September 1992, V. Sombrotto sent Independent Local
912 President Tucker to the Teamster Leadership Academy ("TLA")
in Washington, D.C. at Local 966 expense. (Ex. 1 at 21-22)
Although Tucker was never a Local 966 business agent (Ex. 1 at
21), he was described as a business agent in Local 966 records.
(Ex. 1 1 3 ) ^
The IBT records for the September 1992 Teamster
Leadership Academy also described Tucker as a Local 966 business
agent. (Ex. 113)
Local 966 spent at least $150 to send the non-IBT Local
912 President to the TLA, held on September 20 through 25, 1992.
(Ex. 113)
This expenditure was of no benefit to the Local 966
membership or the Teamsters.^
In addition to sending Tucker to
" It appears that Tucker was described as a Local 966 employee
in order to conceal that a non-IBT official attended the TLA at
Local 966 expense.
^ V. Sombrotto testified that Tucker had asked V. Sombrotto to
hire him to work for Local 966. (Ex. 1 at 22) V. Sombrotto
claimed that he told Tucker that if he really wanted to work for
Local 966, he should go to the TLA to see if he liked it. V.
Sombrotto then claimed that after Tucker returned from the TLA,
he told V. Sombrotto that he preferred to work for an independent
Local and did not want to work for the IBT. (Ex. 1 at 22)
NYMAIN Doc: 39643.1
49.
the TLA at Local 966 expense, V. Sombrotto allowed Tucker to use
the Local 966 office telephones. (Ex. 1 at 19-20)^
Given the
lack of benefit to the Local 966 membership, it appears that V.
Sombrotto had the fraudulent intent to embezzle Local 966 funds
when he sent Tucker to the TLA at Local 966 expense.
Based upon V. Sombrotto's use of Local 966 funds to
finance Tucker's attendance at the TLA in September 1992 and V.
Sombrotto's trip to Chicago in order to assist employer
representative Randy McCarthy, it appears that V. Sombrotto
brought reproach upon the IBT, breached his fiduciary duties and
embezzled Local 966 funds in violation of Article II, Section
2(a) and Article XIX, Section 7(b)(1) and (3) of the IBT
Constitution.
B.
Embezzlement in the Form of a Pay Raise
to Joseph Faicco
On or about April 4, 1989, then Local 966 President
Joseph Faicco was in an automobile accident.
As a result of this
accident, J. Faicco did not work full-time at the Local for
several months. (Ex. 32, 59, 105)
Local 966 did not keep records
of the days J. Faicco did not work. (Ex. 30 at 37; Ex. 80 at 26)
Based upon injuries he suffered in the car accident, J.
Faicco submitted a workers compensation claim.
Local 966, as J.
Faicco's employer, was required to complete forms for the Workers
Compensation Board ("WCB") listing the dates that J. Faicco
^ Local 966 employees testified that they observed Tucker in the
Local 966 offices with V. Sombrotto. (Ex. 41 at 43-45; Ex. 114 at
9; Ex. 42 at 23-24)
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50.
worked.
Gonzalez and Tierney each submitted documents to the WCB
reporting the dates J. Faicco did not work for Local 966.
However, the information provided on each of these documents was
different.
For example, for the week ending May 12, 1989, the
document submitted by Gonzalez to the WCB in July 1991 indicated
that J. Faicco worked one day that week. (Exs. 130 and 80 at 43,
51)
However, the document submitted by Tierney to the WCB in
March 1990 reflected that, for this same week, J. Faicco worked
three days. (Ex. 130)^
On July 11, 1989, Local 966 submitted a form to the WCB
stating that J. Faicco was working four hours two days a week.
(Ex. 32)
On July 11, 1989, a special Executive Board meeting was
called for the purpose of approving paying J. Faicco his full
salary while he worked part-time. (Ex. 2)
At that time, J.
Faicco's weekly salary was $1,525. (Ex. 106)
On August 23, 1989, while J. Faicco was working four
hours two days a week, J. Faicco asked the Executive Board for a
weekly salary increase of $275. (Ex. 107)
Local 966 officers,
including Gonzalez, Giblin and Tierney, agreed to increase J.
Faicco's weekly salary by $275. (Ex. 107)
At this time, J.
Faicco was working reduced hours. (Ex. 41 at 40; Ex. 32, 105 and
109)
No other Local 966 officer received a raise at this time.
(Ex. 41 at 40)
76 Tierney testified that the information reported on the
document he submitted to the WCB was obtained from J. Faicco.
(Ex. 80 at 45) Although the document submitted by Tierney to the
WCB in March 1990 had the heading "JOSEPH FAICCO - Record of
exact dates out due to injury of April 4, 1989", J. Faicco told
Tierney that the dates listed on the form were the dates that he
worked out of his home. (Ex. 80 at 56-57)
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51.
This raise while J. Faicco was working reduced hours
was of no benefit to the Local 966 members.
The Local paid J.
Faicco this increased salary from August 1989 until he left the
Local in March 1992.^
As a result of this pay raise, Local 966
paid J. Faicco an extra $38,775. (Ex. 108)
In addition to increasing J. Faicco's salary while he
was working reduced hours, Gonzalez, Giblin and Tierney took
other steps which also financially benefited J. Faicco at Local
966 expense.
For example, Local 966, as J. Faicco's employer,
paid J. Faicco his full salary while he was entitled to workers
compensation benefits.
Accordingly, pursuant to Article 25,
Section 4(a) of the New York State Workers Compensation Law,
Local 966 was entitled to obtain reimbursement from J. Faicco's
workers compensation awards.
Nevertheless, Gonzalez, Tierney and
Giblin waived the Local's right to receive reimbursement from J.
Faicco's workers compensation awards. (Ex. 109; Ex. 110 at 22-26;
Ex. 41 at 40-41; Ex. 80 at 35-39)
Other members of the Executive
Board, Trustees Burke and Gipson, were not informed of this
waiver. (Ex. 110 at 36; Ex. Ill at 8-10; Ex. 112 at 11-12)
There
was no union benefit to any such waiver.
As a result, during the time that J. Faicco was working
reduced hours, he received his full salary plus the $275 a week
raise and all workers compensation monies awarded to him.
It
appears that J. Faicco received approximately $21,038 in workers
compensation awards between February 1990 and December 1993. (Ex.
^ J. Faicco reportedly returned to work full-time in or about
January 1991. (Ex. 33)
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52.
128)
Local 966 could have received some, if not all, of this sum
as reimbursement for paying J. Faicco his full salary during the
time that he was entitled to workers compensation benefits.
Moreover, the issue of whether the Local should waive
its right to reimbursement from J. Faicco's workers compensation
awards was never discussed at any Executive Board meeting. (Ex.
80 at 38; Ex. Ill at 8-10; Ex. 112 at 12)
According to Section
14(A)(1) of the Local 966 Bylaws, the Local 966 Executive Board
is empowered to: (1) Fix the salary and all other
terms and conditions of employment for PresidentPrincipal Executive Officer and to provide the
allowances, the direct and indirect disbursements,
expenses and reimbursement of expenses for such
officer fringe benefits including but not limited
to paid vacations, holidays, sick leave, personal
leave and sickness, health and pension benefits and
may from time to time provide changes therein as
well as additional compensation and allowances;
(Ex. 115)
Executive Board member Burke testified that he was not even aware
that the Local waived its right to be reimbursed. (Ex. Ill at 10)
Since the Local's waiver of reimbursement indirectly
increased J. Faicco's salary at the Local's expense, Gonzalez,
Tierney and Giblin appear to have violated the Local's Bylaws
when they waived the Local's right to reimbursement without
Executive Board approval.
This willingness to ignore the Local's
Bylaws and the interests of the members in order to benefit J.
Faicco was also evidence of Gonzalez, Tierney and Giblin's intent
to embezzle Local funds by increasing J. Faicco's salary while he
was working reduced hours.
Prior to August 1989, Gonzalez voted to approve other
actions which personally benefitted other Local 966 officers.
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53.
This evidence constituted similar act evidence which goes to
Gonzalez's intent to embezzle when he approved the salary
increase for J. Faicco.
For example, in May 1986, Gonzalez
seconded a motion to increase former Local 966 President
Kapilow's salary by $300 a week immediately before he retired.
(Ex. 11)
It appears that this was done in order to increase the
unused vacation payments made to Kapilow after he retired. (Ex.
11)
There was no benefit to the members.
At this same meeting,
Gonzalez made a motion to give Kapilow a union car upon his
retirement. (Ex. 11)
Gonzalez also approved the Local's payment
for Kapilow's New York apartment and his commuting costs between
New York and Florida (Ex. 9), all of which were in violation of
his fiduciary duties to the members. See, e.g. Morrissev v.
Curran, 650 F.2d 1267 (2d Cir. 1981); Investigations Officer v.
Nunes, Decision of the Independent Administrator (September 6,
1991), aff'd. United States v. IBT. 88 Civ. 4486, slip op.
(S.D.N.Y. November 8, 1991), aff'd. United States v. IBT, Docket
No. 91-6300, slip op. (2d Cir. March 27, 1992).
Giving J. Faicco a pay raise when he was only working
reduced hours was of no benefit to the Local 966 membership.
Allowing Faicco to claim the workers compensation money that
should have gone to the Local was to give away Local property
without any benefit.
Moreover, the evidence demonstrated that
Gonzalez, Tierney and Giblin were willing to ignore the Local's
Bylaws in order to benefit J. Faicco.
As a result, it appears
that Gonzalez, Tierney and Giblin had the fraudulent intent to
NYMAIN Doc: 39643.1
54.
embezzle Local 966 funds when they voted to increase J. Faicco's
salary in August 1989.
C.
Gonzalez and V. Sombrotto Signed Blank
Local Union Checks
Gonzalez, the Local 966 Secretary-Treasurer since 1985
began signing blank Local 966 checks two or three years after
becoming Secretary-Treasurer. (Ex. 56 at 45-46)
It was
Gonzalez's regular practice to sign blank checks. (Ex. 56 at 4546)
V. Sombrotto knew that Gonzalez signed blank Local 966
checks.
V. Sombrotto also signed Local 966 blank checks. (Ex. 1
at 10-12)
Pursuant to Section 8(C) of the Local 966 Bylaws,
Gonzalez and Sombrotto, as the Local 966 Secretary-Treasurer and
principal officer, were authorized to disburse the Local's funds
only for the purpose of paying bills "properly incurred". (Ex.
115)
Since Gonzalez and V. Sombrotto signed checks without
knowing the amount of the check or even to whom the checks were
payable, they each failed to perform their duties as union
officers.
In addition, pursuant to Article XXIII, Section 4 of
the IBT Constitution, "Local Union Secretary-Treasurers shall
maintain a bookkeeping system as prescribed by the General
Secretary-Treasurer and approved by the General Executive Board.
The bookkeeping system to be followed by Local union SecretaryTreasurers is set forth in the IBT Manual for Local Union
Secretary-Treasurers ("Manual") prepared by the IBT General
NYMAIN Doc: 59643.1
55.
Secretary-Treasurer.By signing blank Local 966 checks,
Gonzalez demonstrated that he abdicated his duties as Secretary
Treasurer and failed to keep a bookkeeping system as required by
the IBT Constitution.
VII. PROPOSED CHARGES
A.
summary
Based upon investigation, it is recommended that
charges be filed against former Local 966 officers Vincent
Sombrotto, Edwin Gonzalez, John Tierney and James Giblin and the
former Local 966 Director of Organizing Alfred Faicco.
1. Charges Against Vincent Sombrotto
The investigation revealed that, despite Local 966's
declining financial condition and its loss of membership, V.
Sombrotto organized and instructed other Local 966 officers and
employees to organize for non-IBT locals controlled by relatives
of V. Sombrotto and Local 966 attorney, Bryan McCarthy.
In
several circumstances, V. Sombrotto's actions were contrary to
the interests of the International as well as other IBT Locals.
For example, V. Sombrotto directed Local 966 employees to
organize for Laborers Local 958, for which Gregg McCarthy, Bryan
McCarthy's brother, was the principal officer.
Laborers Local
According to the "Protective Procedures" section of the
Manual, Gonzalez was required to ensure that Local Union checks
were made payable to a specific person or company. The Manual
also required Gonzalez to "[c]heck all invoices to determine if
they are legitimate and that proper prices have been charged" and
to "[ijnsist that all vouchers are fully supported in detail
before approval." Gonzalez's conduct in signing blank Local
Union checks violated the requirements of the Manual.
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56.
958 has had a history of jurisdictional conflicts with IBT Locals
813 and 27. (Exs. 53-57 and Exs. 60-66)
Local 966 business
agents assisted Laborers Local 958 to organize at a company,
Nekoboh, where Laborers Local 958 was competing with Teamster
Local 813 for the representation of employees. (Ex. 53 at 8-13)
Recently, two Laborers Local 958 employees, James
Slattery and Cesar Alarcon, were simultaneously on the payroll of
Local 966 or the Local 966 Funds. (Ex. 1 at 84, 88; Exs. 44 and
49)
Given the ongoing conflict between IBT Locals and Laborers
Local 958, V. Sombrotto's assistance to Laborers Local 958
appears to have been contrary to the interests of the IBT.
In addition, V. Sombrotto organized for Locals 1019 and
912, two Independent Locals with ties to his brother, Stephen
Sombrotto.
S. Sombrotto was the President of Local 1019 and the
Recording Secretary of Local 912. (Ex. 68 at 38; Ex. 82 at 20)
V. Sombrotto also directed Local 966 employees to organize for
these Independent Locals. (Ex. 56 at 16-21, 34-35; Ex 57 at 26)
V. Sombrotto appears to have assisted these Independent Locals to
raid AFL-CIO affiliated Locals, thereby interfering with the
IBT's legal obligations under the AFL-CIO Constitution. (Exs. 7280, 88-90)^
pop example, V. Sombrotto and other Local 966
officers and business agents helped Independent Local 912 to raid
a shop represented by an AFL-CIO affiliated local, Local 32B-32J
of the Service Employees International Union ("SEIU"). (Exs. 68,
V. Sombrotto testified that his understanding of Article XX
of the AFL-CIO Constitution was "that any AFL-CIO affiliate is
given protection under that [sic] Article 20 that another AFL-CIO
cannot raid that union, go after its members." (Ex. 1 at 18)
NYMAW Doc: 59643.!
57.
72-76, 78)
As a result of V. Sombrotto's actions, after a
hearing, the IBT was found to have violated Article XX of the
AFL-CIO Constitution. (Ex. 79)
By this conduct, V. Sombrotto
appears to have interfered with the IBT's legal obligation to
comply with the provisions of the AFL-CIO Constitution.
In another instance, V. Sombrotto assigned Local 966
business agents to organize for Independent Local 1019, while
Local 1019 apparently raided M.W. Warehouse, an AFL-CIO
affiliated shop. (Ex. 1 at 16-21; Ex. 56 at 44, Ex. 88)
Based
upon an Article XX complaint filed by the AFL-CIO affiliated
union, the IBT General President intervened and ordered V.
Sombrotto to direct his brother to cease Local 1019's raiding
activities. (Ex. 86)^
Moreover, V. Sombrotto assisted other non-IBT Locals
with ties to Bryan McCarthy, the Local 966 attorney.
For
example, Local 966 business agents organized for Independent
Local 911, run by Bryan McCarthy's brother-in-law, Bob Mitchell.
This Local's jurisdiction overlapped with that of IBT Locals.
Moreover, Local 966 shared employees with International
Brotherhood of Electrical Workers ("IBEW") Locals 2066 and 1922
and Laborers Local 958.
All three of these locals were
represented by Bryan McCarthy.
jurisdiction as IBT Locals.
The IBEW Locals had the same
For example, V. Sombrotto permitted
Members of Independent Locals 1019 and 912 were also allowed
to participate in the Local 966 Health Fund.
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58.
A. Faicco, the principal officer of IBEW Local 2066, to
simultaneously be the Local 966 Director of Organizing.**
Given the broad jurisdiction of the IBT and Local 966,
by organizing for non-Teamster Locals, V. Sombrotto appears to
have brought reproach upon the IBT, breached his allegiance to
the IBT, engaged in dual unionism, and interfered with the IBT's
legal obligations under the AFL-CIO Constitution in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1), (2)
and (5) of the IBT Constitution and Section 20(E)(4) of the Local
966 Bylaws.M
It also appears that V. Sombrotto breached his
fiduciary duties to the members, brought reproach upon the IBT
** A. Faicco, a brother of former Local 966 President Joseph
Faicco, resigned from Local 966 immediately after the Chief
Investigator's staff began a books and records examination at the
Local.
M
Pursuant to Article XIX, Section 7(b) of the IBT
Constitution, a basis for charges against IBT members and
officers is
(1)
Violation of any specific provision of the
Constitution, Local Union Bylaws or rules
of order, or failure to perform any of the duties
specified thereunder.
(2)
Violation of oath of office or of the oath of
loyalty to the Local Union and the International
Union.
(5)
Conduct which is disruptive of, interferes with,
or induces others to disrupt or interfere with,
the performance of any union's legal or contractual
obligation.
Pursuant to Section 20 (E)(4) of the Local 966 Bylaws, dual
unionism is prohibited. Moreover, the IBT membership oath
requires all IBT officials "at all times to bear true and
faithful allegiance to the International Brotherhood of Teamsters
and his Local Union."
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59.
and embezzled Local 966 funds by sending the President of
Independent Local 912, Randy Tucker, to the September 1992
Teamster Leadership Academy ("TLA") at Local 966 expense.
was not a Teamster.
Tucker
This fact was not disclosed to the IBT and
he was treated as an employee of Local 966 at the TLA. (Ex. 113)
Moreover, in April 1992, in order to assist employer
representative Randy McCarthy, V. Sombrotto flew to Chicago at
Local 966 expense to meet with the International President of the
Hotel Employees and Restaurant Employees Union ("HERE").
In
addition, V. Sombrotto used Local 966 funds to organize for nonIBT unions.
No Local 966 interests were served by sending the
Independent Local 912 President to the TLA, V. Sombrotto's
meeting with the HERE President to assist employer representative
Randy McCarthy, or by V. Sombrotto's use of Local 966 resources
to organize for non-IBT Locals.
By this conduct, V. Sombrotto
appears to have brought reproach upon the IBT, violated his
fiduciary duties, and embezzled Local 966 funds in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1), (2)
and (3) of the IBT Constitution.
V. Sombrotto acknowledged signing blank Local 966
checks.
This practice violated the IBT Secretary-Treasurers
Manual.
By this conduct, V. Sombrotto brought reproach upon the
IBT, violated his membership oath and breached his fiduciary
duties to the members in violation of Article II, Section 2(a)
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60.
and Article XIX, Section 7(b)(1) and (2) of the IBT Constitution
and Section 8(c) of the Local 966 Bylaws.^
2.
Charge Against Alfred Faicco
From approximately 1987 to October 1993, Alfred Faicco
was the Local 966 Director of Organizing.
During this same time,
A. Faicco was an officer and, in 1992, became the principal
officer of International Brotherhood of Electrical Workers
("IBEW") Local 2066.^
Local 2066 overlap.
The jurisdiction of Local 966 and IBEW
In addition, the evidence suggests that A.
Faicco may not have been performing Local 966 work for some time.
Shortly after members of the Chief Investigator's staff
began to examine the Local 966 books and records, A. Faicco
resigned his Local 966 position.
On November 8, 1993 Local 966
issued A. Faicco a withdrawal card.
Pursuant to Article XIX,
Section 1(g) of the IBT Constitution, "[c]harges may be preferred
against a suspended member or an inactive member who has been
issued a withdrawal card."
By acting as the Local 966 Director of Organizing while
simultaneously serving as the principal officer of IBEW Local
Section 8(C) of the Local 966 Bylaws provides that,
the principal executive officer in conjunction
with the Secretary-Treasurer shall have the authority
to disburse or order the disbursement of all monies
necessary to pay the bills, obligations and
indebtedness of the Local Union, which have been
properly incurred as provided herein.
(Ex. 115)
^ IBT Local 966 shares a New Jersey office with IBEW Local 2066.
(See infra at 38-43)
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61.
2066, it appears that A. Faicco brought reproach upon the IBT,
breached his allegiance to the IBT and engaged in dual unionism
in violation of Article II, Section 2(a) and Article XIX, Section
7(b)(1) and (2) of the IBT Constitution and Section 20(E)(4) of
the Local 966 Bylaws.
3.
Charges Against Edwin Gonzalez, John Tierney and
James Giblin
In August 1989, Gonzalez, Tierney and Giblin appear to
have embezzled Local 966 funds by voting a $275 per week pay
raise for then President Joseph Faicco ("J. Faicco") when he was
only working four hours a day, two days a week.
was of no benefit to Local 966 and its members.^
This pay raise
As a result of
this salary increase, Local 966 paid J. Faicco an additional
$38,775 between August 1989 and March 1992 when J. Faicco
retired.
Accordingly, it appears that Gonzalez, Tierney and
Giblin brought reproach upon the IBT, breached their fiduciary
duties to the members and embezzled approximately $38,000 in
Local 966 funds by improperly voting this pay raise for Joseph
Faicco thereby violating Article II, Section 2(a) and Article
XIX, Section 7(b)(1), (2) and (3) of the IBT Constitution.
Secretary Treasurer Gonzalez appears to have brought
reproach upon the IBT, breached his fiduciary duties to the
members, violated the IBT Secretary Treasurer's Manual and the
^ In July 1989, Gonzalez, Tierney and Giblin approved paying J.
Faicco his full salary while he was working reduced hours as a
result of injuries sustained during an auto accident.
^
At that time J. Faicco's annual gross salary was $96,425.00.
(Exhibit 3)
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62.
Local 966 Bylaws by signing blank Local union checks.
By signing
blank union checks and failing to keep a bookkeeping system as
prescribed by the IBT General Secretary Treasurer, it appears
that Gonzalez violated Article II, Section 2(a), Article XXIII,
Section 4 and Article XIX, Section 7(b)(1) and (2) of the IBT
Constitution and Section 8(C) of the Local 966
B.
Bylaws.*?
Vincent Sombrotto
1. Charge One
While Assistant to the Local 966 President or an
officer of IBT Local 966, you organized and directed others to
organize for non-IBT unions, thereby breaching your allegiance to
the IBT, bringing reproach upon the IBT, engaging in dual
unionism and interfering with the IBT's legal obligations under
the AFL-CIO Constitution in violation of Article II, Section 2(a)
and Article XIX, Section 7(b)(1), (2) and (5) of the IBT
Constitution and Section 20(E)(4) of the Local 966 Bylaws to wit:
While Assistant to the Local 966 President or the Local
966 President, you organized for non-IBT Locals and directed
Local 966 employees to organize for non-IBT Locals, including
Laborers Local 958, Independent Local 912, Independent Local
1019, IBEW Local 1922 and Independent Local 911.
For example, in
1991 you organized and directed others to organize for
Article XXIII, Section 4 of the IBT Constitution provides that
Local Union Secretary Treasurers shall maintain a
bookkeeping system as prescribed by the General
Secretary-Treasurer and approved by the General
Executive Board.
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63.
Independent Local 912 while that union was raiding an AFL-CIO
affiliated union.
As a result of your conduct, the IBT was found
to have violated Article XX of the AFL-CIO Constitution.
You
also assigned Local 966 employees to organize for Laborers Local
958, a union with a history of conflicts with IBT Locals 27 and
813.
During the time that you were organizing for non-IBT
Locals, the membership of Local 966 decreased.
In addition, you permitted individuals to be on the
Local 966 payroll while simultaneously working for non-IBT
unions.
For example, you allowed Alfred Faicco to be the Local
966 Director or Organizing while he was an officer and, since
1992, the principal officer of IBEW Local 2066.
2.
Charge Two
While an officer of IBT Local 966 you brought reproach
upon the IBT, breached your fiduciary duties and embezzled Local
966 funds in violation of Article II, Section 2(a) and Article
XIX, Section 7(b)(1), (2) and (3) of the IBT Constitution, to
wit:
In April 1992 you traveled to Chicago at Local 966
expense to meet Ed Hanley, the International President of the
Hotel Employees and Restaurant Employees Union.
You took this
Chicago trip based upon discussions with employer representative
Randy McCarthy who was having difficulty negotiating with HERE
Local 100 located in New York, New York.
This Chicago trip,
which cost Local 966 at least $452, was of no benefit to Local
966.
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64.
In September 1992 you sent Independent Local 912
President Randy Tucker to the Teamster Leadership Academy in
Washington, D.C. at Local 966 expense.
Randy Tucker's attendance
at the Teamster Leadership Academy was of no benefit to Local
966.
While the Local 966 Assistant to the President and the
Local 966 President, you organized and directed others to
organize for non-IBT Locals.
As a result, you expended Local 966
resources in a manner which did not benefit Local 966 or the
Teamsters.
Moreover, you assigned Local 966 employees to
organize for non-IBT Locals which were in conflict with IBT
Locals or AFL-CIO affiliated Locals.
3.
Charge Three
While an IBT officer you brought reproach upon the IBT,
violated your membership oath and breached your fiduciary duties
to the members by signing blank Local 966 checks in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1) and (2)
of the IBT Constitution and Section 8(c) of the Local 966 Bylaws
to wit:
While an officer of Local 966 you signed blank Local
966 checks.
This practice was prohibited by the Secretary-
Treasurers Manual.
C.
Alfred Faicco
1.
NYMAM Doc: 59643.1
Charge One
65.
While a Local 966 business agent and the Local 966
Director of Organizing you brought reproach upon the IBT,
breached your allegiance to the IBT and engaged in dual unionism
by simultaneously serving as an officer and principal officer of
IBEW Local 2066 in violation of Article II, Section 2(a) and
Article XIX, Section 7(b)(1) and (2) of the IBT Constitution and
Section 20(E)(4) of the Local 966 Bylaws, to wit:
While a business agent and Director of Organizing for
IBT Local 966, you were employed as an officer of International
Brotherhood of Electrical Workers Local 2066.
In or about 1992,
you became the principal officer of IBEW local 2066.
The
jurisdiction of IBEW Local 2066 overlapped with the jurisdiction
of Local 966.
D.
Edwin Gonzalez
1.
Charge One
While an officer of Local 966, you violated your
membership oath, breached your fiduciary duties to the members
and embezzled approximately $38,000 in Local 966 funds by
improperly voting a pay raise for Joseph Faicco in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1), (2)
and (3) of the IBT Constitution, to wit:
In or about August 1989, while Local 966 President
Joseph Faicco was working reduced hours and collecting his full
salary, he requested that the Local 966 Executive Board increase
his salary by $275 a week.
NYMAIN Doc: 39643.1
You voted to approve this salary
66.
increase despite the fact that such increase was of no benefit to
the Local 966 membership.
2.
Charge Two
While the Local 966 Secretary-Treasurer, you breached
your fiduciary duties to the members, violated the IBT SecretaryTreasurer's Manual and failed to keep a bookkeeping system
prescribed by the IBT General Secretary-Treasurer by signing
blank Local union checks in violation of Article II, Section
2(a), Article XIX, Section 7(b)(1) and (2) and Article XXIII,
Section 4 of the IBT Constitution, to wit:
While the Local 966 Secretary-Treasurer, you signed
blank Local union checks.
This practice was prohibited by the
IBT Secretary-Treasurers Manual which sets forth the bookkeeping
system mandated by the IBT General Secretary Treasurer.
E.
James Giblin
1.
Charge One
While an officer of Local 966, you violated your
membership oath, breached your fiduciary duties to the members
and embezzled approximately $38,000 in Local 966 funds by
improperly voting a pay raise for Joseph Faicco in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1), (2)
and (3) of the IBT Constitution, to wit:
In or about August 1989, while Local 966 President
Joseph Faicco was working reduced hours and collecting his full
salary, he requested that the Local 966 Executive Board increase
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67.
his salary by $275 a week.
You voted to approve this salary
increase despite the fact that such increase was of no benefit to
the Local 966 membership.
F.
John Tierney
1.
Charge One
While an officer of Local 966, you violated your
membership oath, breached your fiduciary duties to the members
and embezzled approximately $38,000 in Local 966 funds by
improperly voting a pay raise for Joseph Faicco in violation of
Article II, Section 2(a) and Article XIX, Section 7(b)(1), (2)
and (3) of the IBT Constitution, to wit:
In or about August 1989, while Local 966 President
Joseph Faicco was working reduced hours and collecting his full
salary, he requested that the Local 966 Executive Board increase
his salary by $275 a week.
You voted to approve this salary
increase despite the fact that such increase was of no benefit to
the Local 966 membership.
NYMAIN Doc: 39643.1
68.
INDEPENDENT REVIEW BOARD
Meeting Minutes
July 12, 1995
yj^-V^
The Independent Review Board met at their Washington, D.C.
office on Wednesday, July 12, 1995. Attending were Mr. Crandall,
Judge Lacey, Judge Webster, Mr. Carberry and Mr. Cronin.
l.
Review and Approval of June Meeting Minutes.
The Board reviewed, corrected and approved the June Meeting
Minutes.
REVIEW OF OPEN INVESTIGATIVE MATTERS
2.
Status of Decision on Local 282. (Cammarano, Jr.)
The decision on this case is being drafted by Judge Webster.
3.
Status of Simpson Decision and Agreement on Cars re Local 743.
The Board reviewed and discussed the Simpson Decision and
related penalties. Judge Lacey will draft the Decision section and
submit it for final approval to the Board members.
Concerning the Agreement on cars, the Board discussed Judge
Edelstein's concerns as relayed by his law clerk, Mr. Mogelson.
The Board discussed Judge Lacey's letter to Judge Edelstein dated
July 6, 1995.
Judge Lacey will supplement the letter with an
additional letter to be drafted by Mr. Carberry.
4.
Status of Reports on Local 138.
(Trusteeship; Winstead and SXeries)
The Trustee is setting up a panel to hear this case.
Crandall will follow up on the status of this with the IBT.
5.
Mr.
Status of IBT Decision on Local 966. (Sombrotto et al)
The Board reviewed Mr. Carey's July 6, 1995 decision letter in
which he accepted the recommendations made by the Board on June 22,
1995. The Board now considers the case closed.
,
6.
Status of IBT Decisions on Local 813. (Sottile, Capone)
The Board reviewed the July 6, 1995 decision of Mr. Carey
providing a lifetime ban for Mr. Sottile. The Board considered the
action satisfactory and the case is now closed.
! N T E R N A T i O N AL
B R O T H E R H O O D OF T E A M S T E R S
AFL-CIO
OFFICE OF
RON CAREY
G E N E R A L PRESIDENT
July 6, 1995
BY UPS. NEXT DAY DELIVERY
Mr. John Tiemey
26 Bronxville Glen Drive
Building 4 Unit 12
Bronxville, New York 10708
Mr. Stephen Zaccherio
55 Highfield Avenue
Port Washington, New York 11050
Mr. James Giblin
25-26 78th Street
Jackson Heights, New York 11372
Re:
Local Union 966
Article XIX charges v. Vincent Sombrotto, Edwin Gonzalez,
Alfred Faicco. John Tiemey. Stephen Zaccherio. and James Giblin
Dear Brothers Tiemey, Zaccherio and Giblin:
This will clarify that the penalties imposed in my May 16, 1995 decision include the
following:
During the terms of their suspensions:
- John Tiemey, Stephen Zaccherio and James Giblin are prohibited from drawing
any money or compensation from Local 966 or any IBT affiliate or source;
-- No contributions from the IBT or any IBT-affiliated entity may be made on
Tierney's, Zaccherio's or Giblin's behalf to any IBT-affiliated pension plan;
- No contributions may be made to any IBT-affiliated welfare plan by Local 966 or any
other IBT entity or affiliate on Tierney's, Zaccherio's or Giblin's behalf;
25
L 0 U ! S ) A N A A V E N U E , N.W. " W A S H t N G T O N , D.C. 20001 "(202) 624-68
Brothers Tiemey, Zaccherio and Giblin
July 6, 1995
Page 2
- No severance payments, if any, due Tiemey, Zaccherio or Giblin may be made, and
- Accrued vacation pay, if any, owed to Tiemey, Zaccherio or Faicco shall be set off
against monies they owe to Local 966 as a result of their wrongdoing.
Fraternally,
Ron Carey
General Preside
RC/mcj
cc:
Gene Moriarty, Trustee, Local 966
Tom Gilmartin, Panel Chair
Lou Partenza, Panel Member
Chris McLoughlin, Panel Member
Charles Carberry, IRB Chief Investigator
John J. Cronin, IRB Administrator
Vincent Sombrotto
Edwin Gonzalez
Alfred Faicco
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:
Grant Crandall, Esq.
Crandall, Pyles & Haviland
1021 Quarrier Street
Charleston, WV 25301
Frederick B. Lacey, Esq.
LeBoeuf, Lamb, Greene & MacRae
One Riverfront Plaza
Newark, NJ 07102-5490
William H. Webster, Esq.
Milbank, Tweed, Hadley & McCloy
1825 Eye Street, NW, Suite 1100
Washington, DC 20006
Charles M. Carberry, Esq.
17 Battery Place, Suite 331
New York, NY 10004
Administrator:
John J. Cronin, Jr.
June 22, 1995
Ron Carey
IBT General President
25 Louisiana Avenue, NW
Washington, DC 20001
RE:
Charges Against Local 966 Officers
Dear Mr. Carey:
Pursuant to the Rules and Procedures of the Independent
Review Board ("Rules"), the Independent Review Board ("IRB") has
reviewed your May 16, 1995 Decision concerning Local 966 officers
Vincent Sombrotto, Edwin Gonzalez, Alfred Faicco, John Tierney and
James Giblin. Pursuant to Paragraph I, Section 7 of the Rules,
with respect to Tierney and Giblin, the IRB considers the sanctions
imposed to be inadequate because the prohibitions upon the expelled
union officers were not also imposed upon Tierney and Giblin during
their suspension periods.
As a result, the IRB suggests that the penalties imposed
upon the expelled officers be imposed upon Tierney and Giblin while
they are suspended. The sanctions which should be imposed during
the suspension period include prohibiting Tierney and Giblin from
receiving any money or compensation from Local 966 or any IBT
affiliate; prohibiting any IBT entity from making any pension or
health and welfare contributions on behalf of Tierney and Giblin;
prohibiting Tierney and Giblin from receiving any severance
payments and requiring that any accrued vacation pay, if any, owed
to Tierney and Giblin be set off to the extent appropriate against
monies owed to the Local as a result of their financial
malpractice.
Pursuant to the Consent Order of the United States District Court, S.D.N.Y.
United States -v- International Brotherhood of Teamsters 88 CIV 4486 (DNE)
Pursuant to Paragraph I, Section 8 of the Rules, within
ten days of receipt of this notice you must file an affidavit with
the IRB setting forth any and all additional actions that have been
taken to correct the deficiencies described in this notice.
Very truly yours,
Members of the
Independent Review Board
!NTERNAT!ONAL
B R O T H E R H O O D OF T E A M S T E R S
AFL-CIO
OFFICE OF
RON CAREY
GENERAL PRESIDENT
May 16, 1995
By Telecopier and First Class Mail
Mr. Gene Moriarty, Temporary Trustee
Teamsters Local Union No. 966
321 West 44th Street, 10th Floor
New York, New York 10036
Re:
Local Union 966
Article XIX charges v. Vincent Sombrotto, Edwin Gonzalez,
Alfred Faicco. John Tiemev. Stephen Zaccherio. and James Giblin
Dear Sir and Brother:
Having reviewed and duly considered the hearing record, the parties' briefs and the
Findings and Recommendations of the Article XIX hearing panel, I issue the following decision
on the charges against Vincent Sombrotto, Edwin Gonzalez, Alfred Faicco, John Tiemey,
Stephen Zaccherio, and James Giblin.
I concur with the findings set forth in the hearing panel's report and recommendations
and adopt them in their entirety. A copy of the hearing panel's report and recommendation is
enclosed with this letter. With respect to the appropriate penalty, I concur with the unanimous
recommendations of the hearing panel. Accordingly, I impose the following penalties:
Vincent Sombrotto is hereby permanently expelled from membership in the International
Brotherhood of Teamsters ("IBT") and barred for life from accepting or seeking any
employment, including consulting work, with the IBT or any Teamster affiliate.
Edwin Gonzalez is hereby permanently expelled from membership in the IBT and barred
for life from accepting or seeking any employment, including consulting work, with the IBT or
any Teamster affiliate.
Alfred Faicco is hereby permanently expelled from membership in the IBT and barred
for life from accepting or seeking any employment, including consulting work, with the IBT or
any Teamster affiliate.
25 LOUtStANA A V E N U E , N.W. - W A S H i N G T O N , D.C. 20001 - (202) 624-6800
Mr. Gene Moriarty, Temporary Trustee
May 16, 1995
Page 2
John Tiemey is hereby suspended from IBT membership for five (5) years.
Stephen Zaccherio is hereby suspended from IBT membership for three (3) years.
James Giblin is hereby suspended from IBT membership for three (3) years.
In addition, with respect to Vincent Sombrotto, Edwin Gonzalez and Alfred Faicco, I
impose the following additional penalties:
1. Vincent Sombrotto, Edwin Gonzalez and Alfred Faicco are prohibited from drawing
any money or compensation from Local 966 or any IBT affiliate or source;
2. No future contribution from the IBT or any IBT-affiliated entity may be made on
Sombrotto's, Gonzalez' or Faicco's behalf to any IBT-affiliated pension plan;
3. No future contributions may be made to any IBT-affiliated welfare plan by Local 966
or any other IBT entity or affiliate on Sombrotto's, Gonzalez' or Faicco's behalf;
4. No severance payments, if any, due Sombrotto, Gonzalez or Faicco may be made;
and
5. Accrued vacation pay, if any, owed to Sombrotto, Gonzalez or Faicco shall be set
off against monies they owe to Local 966 as a result of their financial malpractice.
RC/mcj
cc:
Tom Gilmartin
Lou Partenza
Chris McLoughlin