Guest guest Posted November 10, 2007 Report Share Posted November 10, 2007 Can We Stop The Demobrocrats WASHINGTON—Organized labor is enormously influential in the Democratic primary, as the campaigns of 2008 presidential candidates seek endorsements from the major labor federations and member unions. In the next week three labor (LIUNA, SEIU, Change to WIn) presidential forums—two in Chicago—will feature presidential candidates. There's a lot of schedule jockeying on Monday. Before heading to Washington, Obama has an economics speech in New York City in the morning and Clinton delivers her plan to deliver universal health care coverage in Iowa. *On Monday and Tuesday, LIUNA-the Laborers' International Union of North America hosts a Leadership Conference at the Chicago Sheraton Hotel and Towers. Hillary Clinton, John Edwards and Joe Biden speak on Monday. Bill Richardson on Tuesday. Barack Obama is not scheduled to attend " above from http://blogs.suntimes.com/sweet/2007/09/sweet_blog_special_dem_presid e.html In the Matter of Alan D. Wasserman Laborers' International Union of North America Independent Hearing Officer Docket No. 97-57D Decided October 7, 1998 Order and Memorandum This Order and Memorandum supercedes the Order and Memorandum of August 28, 1998 ( " August 28 Order " ). This Order and Memorandum addresses objections to the August 28 Order filed by Attorney Arnold J. Gold on behalf of the Respondent. The procedural history of this matter is discussed below in detail. This matter comes before the Laborers' International Union of North America ( " LIUNA " ) Independent Hearing Officer ( " IHO " ) pursuant to the LIUNA Constitution and Ethics and Disciplinary Procedure ( " EDP " ). On December 29, 1997, the LIUNA General Executive Board Attorney ( " GEB Attorney " ) filed Disciplinary Charges against Alan D. Wasserman ( " Wasserman " ), alleging violations of federal law and the EDP. Specifically, Wasserman is charged with knowingly associating with a La Cosa Nostra ( " LCN " ) organized crime family, racketeering, demanding labor payoffs from contractors, offering to allow employers to pay LIUNA members less than union-scale wages and benefits, and obstructing the GEB Attorney and the Inspector General ( " IG " ). A hearing was held in Newark, New Jersey on May 27, 1998. Wasserman did not appear at the hearing, but was represented by counsel, Arnold Jay Gold ( " Gold " ). At the hearing, Attorney Gold stated that his client was depressed and unable to assist him in his defense. In support, Gold presented a letter of a medical doctor who stated that Wasserman suffered from a " Major Depressive Disorder, " resulting in anger and depression. IHO Exhibit 1. The letter gave no opinion that such a disorder rendered him unable to assist in his defense but merely indicated that Wasserman's ability to testify was impaired. Id. No evidence was offered to show Wasserman could not aid in his defense. I decided to proceed with the hearing but told Gold that if he desired an additional session to present new evidence based on the cooperation of his client, he should inform me and a hearing would be arranged. At the conclusion of the hearing, I instructed both parties to inform me by June 15, 1998, whether they wished the record to remain open pending the submission of additional evidence. The parties were also instructed to submit post-hearing briefs three weeks following June 15, 1998. I stated " You have until June 15th to let me know what other plans you have, whether to close or keep the record open. " Hearing Transcript of May 27, 1998 ( " Tr. " ) 220. On June 12, 1998, the GEB Attorney requested that the matter remain open until July 13, 1998. The request was granted. On July 13, 1998, the GEB Attorney filed a motion to admit testimony regarding a confidential witness. On July 14, 1998, the GEB Attorney filed the original and one copy of all exhibits presented at the May 27, 1998 hearing. Wasserman filed no response to the motion to admit the confidential witness testimony. From the date of the hearing on May 27, 1998, Wasserman made no communication with my office. Attorney Gold made no effort to contact my office regarding his client's mental status or his intention to offer any additional evidence. I filed the August 28 Order which dealt with the merits of the case. On September 2, 1998, Attorney Gold by letter to my office complained of not having had an opportunity to present a defense or file a post-hearing brief. Gold's letter was Wasserman's first contact with my office in over three months. I issued an Order placing the August 28 Order in suspense and treating the August 28 Order as a proposed Order. See IHO Order September 4, 1998. I permitted both parties to file written objections and conclusions to the proposed order with arguments to support their conclusions. I clearly stated that objections and arguments were to be filed by September 28, 1998. Despite the September 4, 1998 Order, Attorney Gold sent my office a letter indicating he wished to discuss a timetable for the completion of evidence after October 1, 1998, including the possibility of having his client testify. I denied Gold's request to hold the record open until after October 1, 1998, but gave Attorney Gold until October 2, 1998, to file objections to the August 28 Order. I also requested Attorney Gold to include an affidavit outlining the proposed testimony of Wasserman. Gold filed timely objections. In his objections, Gold asserted that Wasserman was able to appear and testify; however, he did not submit any proposed testimony by Wasserman as requested. I find that there is no credible evidence that Wasserman ever intended to appear. Qualification Of Expert Witnesses The GEB Attorney called Jack Elko ( " Elko " ) and Jeffrey Schaffler ( " Schaffler " ) as expert witnesses. Jack Elko Elko was a police officer for 25 years. Tr. 104. During the last 14 of those years, Elko specialized in organized crime investigations for the Division of Criminal Justice of the Office of the Attorney General of New Jersey. Id. Prior to his employment with the Division of Criminal Justice, Elko was employed as an investigator with Morris County in Morristown, New Jersey. He attended numerous service schools, including the New Jersey State Police Academy, courses offered by the Division of Criminal Justice, Seton Hall Law School and the Federal Bureau of Investigation ( " FBI " ) on organized crime and the illegal activity usually perpetrated by organized crime. Tr. 105. Elko testified in this proceeding as an expert in the make-up and structure of organized crime, specifically in the Newark area. This technique has been accepted in similar union disciplinary matters. See e.g., United States v. IBT (Senese & Talerico) 745 F. Supp. 908, 914-15 (S.D.N.Y. 1990), aff'd United States v. IBT (Senese & Talerico), 941 F.2d 1292 (2d Cir. 1991). Elko used tested and accepted investigative techniques to verify the credibility of the individuals whose information he related at the hearing. Elko testified as to information and hearsay statements of five named witnesses. Tr. 109-158. In similar circumstances, the court in United States v. IBT (Cimino), 964 F.2d 1308 (2d Cir. 1992), at 1312; aff'g 777 F. Supp. 1130 (S.D.N.Y. 1991), gave evidentiary weight to hearsay declarations of three LCN members that were related by an FBI agent. The court used a number of factors to evaluate the reliability of the statements. The court noted that the statements corroborated each other in crucial respects, the reports painted a consistent picture of the relationship of the individuals and the statements matched the FBI agent's declaration in the subject matter. Id. The court held that these declarations constituted relevant evidence that a reasonable mind might accept on the subject of association with organized crime. Id. I find that Elko is a qualified witness, expert in organized crime matters, and his testimony, in conformance with accepted investigative techniques, is reliable. Elko related information given to him by five named individuals described below, three of whom have cooperated with federal authorities and two of whom are law enforcement officers. Rocco Cagno Rocco Cagno ( " Cagno " ) is a made member of the Colombo organized crime family and a former member of LIUNA Local Union 342 ( " Local 342 " ). Tr. 109. Cagno became a made member in 1987; thereafter, he was incarcerated. The record does not reflect the reason for his incarceration. He was released from prison in 1990 and his movements were monitored by an electronic bracelet. As a condition of his release, Cagno was required to gain employment. He became employed by Local 342 through the influence of Colombo family members and Anthony Proto, who was then the Business Manager of Local 342. Tr. 114. Cagno is currently in the Federal Witness Protection Program. Elko had the opportunity to speak with Cagno in October 1997 concerning the various organized crime affiliations within Local 342. Tr. 109. Thomas Ricciardi and Anthony Tumac Accetturo Thomas Ricciardi ( " Ricciardi " ) and Anthony Accetturo ( " Accetturo " ) are both made members of the Lucchese organized crime family and are also in the Federal Witness Protection Program. Tr. 117. Accetturo had been the acting boss of the New Jersey faction of the Lucchese family. Id. Steve Montgomery and Lt. Dennis Masucci Elko also based his opinion on information supplied to him by two law enforcement officers, Lieutenant Dennis Masucci ( " Masucci " ) and Steve Montgomery ( " Montgomery " ). Masucci is a law enforcement officer from the Essex County Prosecutor's Office in New Jersey. Tr. 126-27. The information provided by Masucci is based upon confidential informant sources proven reliable in the past, who gave Masucci information which resulted in the arrest of organized crime members, including Gambino organized crime family members in Essex County. Tr. 128. Montgomery is an FBI Special Agent in Newark, New Jersey and had been assigned to the Gambino family organized crime unit. Tr. 127. Montgomery's information is also based on his personal investigation and confidential sources. The testimony of Cagno, Ricciardi and Accetturo are corroborated by each other and by the information supplied by Masucci and Montgomery. Jeffrey Schaffler Schaffler was a federal agent for approximately 30 years. Tr. 160. He spent his last years as a special agent with the Office of Labor Racketeering, United States Department of Labor ( " DOL " ). Id. Schaffer has been a supervisory special agent for DOL, and thereafter, an assistant special agent in charge of a DOL investigation office. Id. Schaffler is currently under contract to the Office of the Inspector General of the Port Authority of New York and New Jersey. His duties involve investigation of contractors who do business with the Port Authority, the operation of construction projects, the manner in which construction bids are made, contract fraud and wage and hour issues. Tr. 159-60. Schaffler testified in this proceeding in the capacity of an expert in the labor field. I find that Schaffler is a qualified expert witness in the labor field. Findings of Fact Structure of Organized Crime 1. The LCN is a tightly structured criminal organization which operates in various cities throughout the United States. It is in the business of crime for a profit.[1] 2. The LCN is comprised of groups of individuals organized into entities called families. Tr. 105. 3. A typical LCN family structure consists of the head (the " boss " ), his assistant (the " underboss " ), and an advisor (the " consigliere " ). The boss, underboss, and consigliere oversee the activities of LCN members and their associates. LCN members within a family operate in small groups called " crews " which are headed by men called " capos " or " crew bosses. " Tr. 106. 4. A " made member " is an individual within an LCN family who has undergone an initiation process and sworn allegiance to that family putting the family above everything else. Tr. 106. See also United States v. Tortona, 922 F.2d 880, 885 (1st Cir. 1990). 5. An " associate " is an individual who works under a capo and assists made members, but who has not been formally initiated into the family. Tr. 106. An associate may either earn his living by performing illegal acts on behalf of an LCN family or he may have an ostensibly legitimate job while at the same time assisting a particular LCN family in the acquisition of profits and monies. Tr. 129-30. 6. Both members and associates engage in activities which bring money to an organized crime family. Tr. 106. Traditionally, an associate could only become a made member by participating in the murder of an individual. In more recent times, an associate may become a made member based upon the benefits he is able to produce for that family, such as earning large sums of money or exercising influence in business or politics. Tr. 106-07. 7. A number of LCN families are located in the New York/New Jersey area, including the Gambino, Lucchese, and Colombo families. The LCN's History Of Control Over Local 342 8. The evidence presented during the hearing establishes by a preponderance of the evidence that Local 342 in Newark, New Jersey has been subject to LCN control for many years. 9. From at least the 1970's, the Gambino and Colombo organized crime families have shared control of Local 342. Tr. 110. The two families shared illegal profits from contractors within their jurisdiction by soliciting money for labor peace and outright extortion. Tr. 110, 114, 131. Members and associates of both families were placed on the labor payroll with various contractors through Local 342. Tr. 110, 114. The relationship between the two families later shifted to an arrangement where the Colombo family received preferential treatment for placement of workers at particular contract sites, but no longer shared in racketeering labor profits. Tr. 111-12. 10. The New Jersey Organized Crime Task Force ( " Task Force " ) was created by the State of New Jersey in 1986. Tr. 132. From that time to the present, the Task Force and other law enforcement entities have documented the Gambino family infiltration of Local 342. Id. 11. Paul Castellano ( " Castellano " ) was the boss of the Gambino family in New York. After Castellano's murder in December 1985, he was succeeded by John Gotti ( " Gotti " ) in January 1986. Id. 12. Michael Mandaglia ( " Mandaglia " ) had been the Business Manager of Local 342 for several years prior to the Task Force's creation in 1986. Id. According to Elko, court authorized electronic surveillance revealed that Mandaglia had given Castellano $5,000 a year from the New Jersey faction of the Gambino family. Id. Mandaglia gave Robert Bisaccia ( " Bisaccia " ), the former Vice President of Local 342, $2,000 a year. Id. Bisaccia was a Gambino family member later incarcerated for racketeering. Tr. 138. 13. In 1986, Mandaglia retired from Local 342 and was succeeded as Business Manager by Anthony Proto ( " Proto " ). Tr. 133. Proto was a made member of the Gambino family. Tr. 117, 133. 14. In August 1991, Alfred " Al " Andrade ( " Andrade " ) assaulted a coffee truck vendor in downtown Newark, New Jersey. Tr. 133-34. The assault was a result of the vendor's failure to pay Andrade $500 a month for permission to park the vendor's vehicle on a particular street corner in Newark. Tr. 134. The vendor's vehicle was smashed with a sledgehammer. Id. The police responded and, after a period of time, Andrade was arrested. Id. Months later, with the victim's approval, the charges were downgraded to simple assault, not pursued, and the vendor immediately left New Jersey and moved to South Carolina. Id. 15. At the time of the assault, Andrade was a shop steward of Local 342. Tr. 134. Cagno was present at the scene. Cagno stated that Andrade's accomplice for the assault was Wasserman, who at the time was an employee of Local 342. Id. 16. In 1987, the Task Force launched an investigation into organized crime influence in New Jersey. The investigation employed court authorized electronic surveillance and other investigative techniques. The investigation resulted in the indictment of numerous Gambino family members for labor racketeering in New Jersey, one of whom was Proto, the former Business Manager for Local 342. Tr. 133. Proto was convicted and incarcerated for labor racketeering in 1993. Tr. 110. Proto was later permanently expelled from LIUNA in a separate disciplinary action. See In the Matter of Anthony Proto, IHO Order and Memorandum, 97-09D (March 26, 1998). 17. After Proto's incarceration in 1993, he unofficially appointed his son, James Proto, as the Business Manager of Local 342. Tr. 133. Andrade became a Business Agent of Local 342 at that time, assisting James Proto with his duties. Tr. 134. 18. While Andrade was Business Agent and James Proto was Business Manager, Wasserman was appointed as a shop steward for Local 342. Tr. 147. 19. James Vallaro ( " Vallaro " ) was an associate of the Gambino family in Staten Island, New York. Vallaro's father was a made member of the Gambino family and a high volume bookmaker. Tr. 135. Following the 1993 convictions of other Gambino family members, Vallaro moved to New Jersey and became a member of Local 342. Id. 20. At the time of his move, Vallaro was unknown to law enforcement in New Jersey. Tr. 136. Elko became aware of Vallaro's presence and involvement in the LCN through electronic surveillance which he supervised for the Organized Crime Bureau. Tr. 135. The information about Vallero which Elko obtained from the surveillance was verified by Cagno. Tr. 136. 21. Vincent " Juicy " DiModica ( " Juicy DiModica " ) was a member of Local 342. Juicy DiModica was also made member of the Gambino family and responsible for the New Jersey area, including all the Gambino family members and associates within Local 342. Tr. 109, 113. 22. As a result of the 1993 incarcerations of Proto and Robert Bisaccia, former Vice President of Local 342, Juicy DiModica was elevated to acting capo of the Gambino family. Tr. 115-116. Elko testified that he learned this fact from intelligence sources, discussions with Cagno and interviews with other organized crime members, including Ricciardi and Accetturo. Tr. 117-19. 23. After Proto's incarceration, Cagno became concerned about the distribution of money and work for the Colombo family members within Local 342. Tr. 116. Cagno related his concerns to members of the New York City Colombo family. Id. Cagno was approached within the next week by Andrade at a Local 342 membership meeting. Id. Andrade requested that Cagno attend a meeting with Juicy DiModica at the Kenilworth Inn on the Garden State Parkway. Id. 24. Cagno and Juicy DiModica, as representatives of their respective families, attended certain meetings at the Kenilworth Inn. Tr. 114-15. At the meetings, Juicy DiModica told Cagno that his son James DiModica, Wasserman, and Andrade were acting on behalf of Juicy DiModica and the Gambino family. Tr. 114. 25. Vallaro assisted Juicy DiModica in the day-to-day operations of Local 342 for the Gambino family. Tr. 135. The now public electronic surveillance revealed that Vallaro met on a daily basis with Andrade to discuss labor issues within Local 342. Tr. 138. During a 30-day period, 30 telephone calls were intercepted, both incoming and outgoing, from Vallaro's and Andrade's homes regarding labor issues and Local 342. Id. 26. Conversations over prison telephones of Proto, Casarro, and Bisaccia were intercepted and monitored. Id. 27. In April 1994, a conversation was intercepted between Joseph Vallaro and Cassarro who was in state prison. Tr. 140. Joseph Vallaro told Cassarro that he and Juicy DiModica had met with the consigliere of the Gambino family in New York. Id. Joseph Vallaro told Cassarro that James Proto, the Business Manager of Local 342, was not making any money for them and that they would be broke in two months. Elko testified that he understood this conversation to mean that James Proto was not being forceful enough in extracting money from contractors for Local 342. Id. 28. Elko testified that after the Vallaro/Cassarro telephone conversation, James Proto remained Business Manager of Local 342 for approximately one year. Id. James Proto was replaced by Wasserman. Id. VHR Construction Charge I: In or around December 1995, Alan D. Wasserman, while a member and representative of LIUNA Local 342, committed " barred conduct " in violation of the LIUNA Ethics and Disciplinary Procedure by committing an act of racketeering, in that Wasserman did request and demand money or a thing of value from VHR Construction, an employer engaged in an industry affecting interstate commerce, when Wasserman asked for a payoff in form of a " Christmas gift " while being a Union member and representative (29 U.S.C. §186(b)(1)). Charge II: From 1994 to 1995, Alan D. Wasserman, demanded labor payoffs from an employer while being a Union member and representative, in violation of the " Business and Financial Activities of Union Officials " Chapter, Introductory Paragraph, Section 2 and Section 4, of the LIUNA Ethical Practices Code. 29. In 1995, the LIUNA IG's Office in Washington received information from New Jersey Regional Vice President, Ray Pocino, that a contractor who desired confidentiality had alleged that Wasserman had demanded $25,000 from a contractor in New Jersey, possibly at the Newark International Airport, and had caused the contractor's equipment to be damaged. The contractor stated specifically that one piece of equipment was filled with concrete and another piece was pushed off a floor of a building. Tr. 20. Although this statement is pure hearsay, the specificity of the description of the damage is corroborated later in interviews with a company official. 30. The IG sent investigators to Newark to verify the allegations. Id. 31. VHR Construction was a general contractor at the Newark Airport and signatory to a collective bargaining agreement with Local 342. Tr. 21, 23. 32. Victor Wortman ( " Wortman " ) is the president and owner of VHR Construction. Tr. 21. 33. In March 1996, IG Inspectors met with Wortman at his office in Englewood, New Jersey. Tr. 21-23. Wortman told the IG Inspectors his company was not the victim of the equipment damage, but he had heard about the incident. Tr. 22. 34. Wortman said he knew Wasserman was working as the shop steward at Wortman's job site at the Newark Airport. Tr. 22-24. 35. Wortman said that he and his staff had threatened to dock Wasserman's pay because Wasserman frequently left the job site for two or three hours at a time. Tr. 24. As a result, Wasserman came to Wortman's office to discuss the issue during the weeks before Christmas of 1995. Id. 36. Wasserman was accompanied to the meeting by James DiModica who was also a member but not an officer or even a steward of Local 342. Tr. 28-29. 37. During Wortman and Wasserman's conversation about Wasserman's hours, James DiModica suddenly asked Wortman for a Christmas gift. Tr. 29. Wortman refused. Tr. 37. Wasserman made no attempt to dissuade James DiModica from his request. Attorney Gold contends the record is silent as to Wasserman's participation in the request. Under the circumstances, I find that Wasserman brought James DiModica to the meeting to make the request and fully approved of the demand. 38. At the hearing in the instant matter, Schaffler testified that, in his expert opinion of the construction industry, labor payoffs are usually made at Christmastime or at the beginning of the summer or late spring. Tr. 167. 39. It was also Schaffler's expert opinion, based on his experience, James DiModica's request for a Christmas gift was the solicitation of a bribe. Tr. 165. I find that under the circumstances all parties understood that the meaning of the request was not for a nominal or token gift. Attorney Gold objects to the hearsay testimony of Wortman. In the Discussion, infra, I concluded that Wortman's testimony was corroborated by other testimony, and is reliable. 40. Attorney Gold argues that Wasserman visited Wortman to discuss the matter of his pay being docked for continually leaving the job. Gold argues that Wortman is obviously biased against Wasserman because of Wasserman's legitimate demand for his pay. The argument has little weight since Wasserman and Wortman entered into an agreement settling the matter. B.J. McGlone & Co. Inc. Charge III: From 1994 to 1995, Alan D. Wasserman, while a member and representative of LIUNA Local 342, committed " barred conduct " in violation of the LIUNA Ethics and Disciplinary Procedure by committing an act of racketeering, in that Wasserman did request and demand money or a thing of value from B.J. McGlone & Co., Inc., an employer engaged in an industry affecting interstate commerce, when he demanded labor payoffs from an employer while being a Union member and representative (29 U.S.C. §186(b)(1)). Charge IV: From 1994 to 1995, Alan D. Wasserman, demanded labor payoffs from an employer and offered to allow that employer to use non-Union labor or to pay LIUNA members less than Union-scale wages and benefits, and in so doing violated his obligation as a member of the Union to refrain from interfering with the proper conduct of Union business, in violation of Article III, Section 3(d) of LIUNA's Uniform Local Union Constitution and the " Business and Financial Activities of Union Officials " Chapter, Introductory Paragraph, Section 2 and Section 4, of the LIUNA Ethical Practices Code 41. B.J. McGlone ( " McGlone " ) is a company located in New Jersey which provides fireproof material and services. Tr. 47. McGlone performed and worked at the Newark Airport job site in 1994. 42. In August 1997, IG Inspectors spoke with an officer at McGlone who was involved in managing one of the job sites at the Newark Airport. Id. 47. The officer spoke with them on condition that his name would not be repeated to anyone outside of the interview. Although he requested anonymity, the record is clear that he was an officer of McGlone, that he was involved in the operation of the site, and that he dealt with Wasserman. The probative value of this testimony will be discussed below. 43. The officer knew Wasserman was an officer of Local 342 and the shop steward at the McGlone job site at the Newark Airport. Tr. 47, 55. 44. At the beginning of 1994, the officer and Wasserman had a conversation about placing safety equipment on the job site. The officer told Wasserman the equipment was not necessary. Tr. 52. The company did not install the equipment and the job commenced. Id. 45. Two pieces of equipment were subsequently damaged at the job site. Id. One spray machine was filled with concrete and another was pushed off an elevated floor and fell to the ground. Tr. 53. The resulting damage to the equipment was between $8,000 and $15,000. Tr. 170. This description corroborates the description of the damage in the anonymous report made to the IG. 46. Schaffler testified that it is common practice when a company does not comply with demands for payoffs from LCN controlled unions, the union may resort to intimidation methods to frighten the company officials. Id. A common method is to damage equipment. Id. 47. The officer subsequently had a conversation with Wasserman in which the officer told Wasserman the equipment was damaged and said " this is not the way for you to put your people to work. " Tr. 53. Wasserman made no reply to this accusation and requested a meeting. Tr. 54 48. Wasserman, James DiModica, and the officer met at a restaurant in New Jersey. Tr. 54. Wasserman told the officer that in exchange for $10,000 to $20,000, McGlone would be free to run the job site without interference and the company need only pay the workers enough to " buy a ham sandwich. " Tr. 54-55. The officer responded that it was not his decision to pay the money and that he would have to refer them to his boss. Tr. 55. The evidence does not indicate whether the money was paid. 49. Schaffler testified that he was familiar with the terms " give them enough for a sandwich " or " give them enough for a hat. " It was Schaffler's opinion that the statement made by Wasserman, " pay the workers enough for them to buy a ham sandwich, " under the circumstances, meant the workers could be paid a moderate amount for work completed, but the company would not have to adhere to all terms of the collective bargaining agreement, including paying fringe benefits such as overtime and adhering to all safety standards. Tr. 168. In Shaffler's opinion, in return for the payment, Wasserman and James DiModica would take responsibility for handling any complaints from the workers. Id. 50. Attorney Gold argues that the testimony of the McGlone official is not credible. Gold states that the official is biased against Wasserman because Wasserman came to the meeting to discuss legitimate safety issues at McGlone, and the official was upset at being confronted with safety violations. This argument has little weight because substantial damage had been done to McGlone's equipment. It would be more cost effective for McGlone to address legitimate safety issues than to damage its own equipment and blame Wasserman. I find the official's representation of the events to be credible, and corroborated by other evidence. See the Discussion, infra. E & S Construction Charge V: In or around July 1996, Alan D. Wasserman, while a member and representative of LIUNA Local 342, committed " barred conduct " in violation of the LIUNA Ethics and Disciplinary Procedure by committing an act of racketeering in that Wasserman did request and demand money or a thing of value from E & S Construction, an employer engaged in an industry affecting interstate commerce, when he demanded labor payoffs from an employer while being a Union member and representative (29 U.S.C. §186(b)(1)). Charge VI: In or around July 1996, Alan D. Wasserman, demanded labor payoffs from an employer and offered to allow that employer to use non-Union labor or to pay LIUNA members less than Union-scale wages and benefits, and in so doing violated his obligation as a member of the Union to refrain from interfering with the proper conduct of Union business, in violation of Article III, Section 3(d) of LIUNA's Uniform Local Union Constitution and the " Business and Financial Activities of Union Officials " Chapter, Introductory Paragraph, Section 2 and Section 4, of the LIUNA Ethical Practices Code. 51. In August 1996, Ed Taylor ( " Taylor " ) from E & S Construction contacted the LIUNA New Jersey regional office concerning an allegation against Wasserman. Tr. 56. IG Inspectors met with Taylor shortly thereafter. Id. 52. Taylor is a former member of LIUNA Local 472 located in Newark, New Jersey. Tr. 57. After Taylor suffered an injury and could not work as a laborer, he formed his own construction company. Id. 53. In July 1996, Taylor maintained a job site along Routes 1 and 9 in New Jersey. Id. 54. In the same month, Taylor received a call from Wasserman who identified himself as a representative from Local 342 and requested a meeting. Id. Taylor agreed to the meeting. Id. 55. The following day, Wasserman arrived at Taylor's job site accompanied with an individual Taylor later identified as James DiModica. Id. 56. At the start of the meeting, James DiModica stated that he had just gotten out of jail. Tr. 60. 57. Wasserman told Taylor he knew Taylor had an upcoming contract at the Newark Airport with the Brown Matthews Company, and he requested that Taylor use Local 342 workers on that job site. Tr. 58. 58. Taylor replied that at the time he had three full-time workers with his company and the workload was just enough for those three workers. Taylor said if his workload increased he would definitely call the Local 342 hiring hall for laborers. Id. 59. Wasserman replied by pointing to the Taylor's three Hispanic workers, calling them an " eyesore, " and telling Taylor he could not use them because he had to use Local 342 members. Id. 60. Wasserman then made a motion with one of his hands indicating five fingers. Id. When Wasserman's fingers were waved at him, Taylor, who was familiar with labor union relationships in New Jersey, asked if Wasserman was requesting $500 to insure that he would have no problems with the union. Tr. 59. Wasserman replied not $500 but $5,000. Id. 61. Taylor told Wasserman he didn't " have that kind of money. " Id. Wasserman replied that in exchange, Taylor would not have to pay the workers any benefits. Id. Taylor understood this to mean that the various fringe benefits, pension annuity, and medical benefits required by the collective bargaining agreement would not have to be paid if Taylor complied with the demand. Tr. 59-60. 62. Wasserman told Taylor that if Taylor did make the payment, Wasserman would make him put up a bond for the benefits at his job site. Tr. 59. 63. Towards the end of the meeting, James DiModica made a statement to Taylor that " we have connections, we'll get you paid faster. " Tr. 60. 64. Subsequently, Taylor positively identified James DiModica from photographs shown to him by IG Inspectors. Id. 65. I find that there was no reason for James DiModica, who had no official union position, to accompany Wasserman to Wasserman's meetings with Taylor or VHR Construction. The Wasserman/James DiModica visits to the contractors appears, under these circumstances, to be a joint venture in extortion. 66. The statements of Taylor as to what the demands meant and the expert opinion of Schaffler as to the nature of the modus operandi of extortionate practices are credible and well founded. 67. Attorney Gold contends that the appearance of James DiModica with Wasserman where money was solicited from employers was not in itself improper. Gold argues that DiModica might have been a shop steward on at least one of the jobs, and his appearance on any of the jobs was not prohibited. As discussed below, James DiModica was an associate of organized crime. On one occasion he suddenly requested a Christmas gift from the employer and on another he began the conversation by informing the employer that he had just been released from jail. James DiModica's appearance with Wasserman was intended to serve the purpose of intimidating the contractor. 68. Attorney Gold also contends that since none of the complaining persons ever alleged that as a result of denying payoffs they suffered any reprisals. He argues that the LCN would not permit a refusal to go unpunished. There is no evidence to indicate whether or not the payments were made. The record is silent on that matter; however, there is evidence that equipment at McGlone was heavily damaged after McGlone refused to install the requested safety apparatus. Knowing Association With The LCN Charge VII: From in or around 1994 through 1997, Alan D. Wasserman, while a member and representative of LIUNA Local 342, committed " barred conduct " in violation of the LIUNA Ethics and Disciplinary Procedure by knowingly associating with La Cosa Nostra crime family members or associates, including Vincent " Juicy " DiModica, a convicted member of the Gambino crime family and James DiModica, an associate of the Gambino crime family. 69. Wasserman has been a member of LIUNA Local 342 in Newark, New Jersey for approximately ten years. 70. At the time of the hearing in this matter, Wasserman was the Business Manager of Local 342. He was appointed by the Executive Board to succeed James Proto. Wasserman has also served in the positions of field representative and a shop steward of Local 342. 71. The GEB Attorney offered the history of Local 342 described above in paragraphs 8 through 28 and the following testimony of Elko as evidence of Wasserman's associations with the Gambino family. 72. Based upon his years of investigation, including the aforementioned information in paragraphs 8 through 28, and corroborating interviews with Cagno, Accetturo, and Ricciardi, Elko concluded that Juicy DiModica is a made member of organized crime and in charge of a Gambino family crew in New Jersey. Tr. 119. 73. Based upon his information, including direct information from Cagno, Lieutenant Masucci and Special Agent Montgomery and eleven years of surveillance, Elko concluded that James DiModica is an associate of the Gambino family. Tr. 120-21, 129. Id. 74. Based upon direct information from Cagno, information from Masucci and Montgomery, and eleven years of surveillance, Elko concluded that Wasserman is an associate of the Gambino family. Tr. 123, 129. Discussion The IHO must base his decisions on reliable evidence through a review of what is probative and reliable. Attorney Gold objects to the use of hearsay evidence in this proceeding. Contrary to his assertion, however, reliable hearsay evidence is admissible in labor arbitrations. Associated Cleaning Consultants and International Brotherhood of Printing and Allied Trades Local 327, 94 LA 1246 (1990); In the Matter of Joseph P. Crincoli, IHO Order and Memorandum, 97-04D (Oct. 27, 1997); In Re: Trusteeship Proceedings Chicago District Council, IHO Order and Memorandum, 97-30T (Feb. 7, 1998); Elkouri and Elkouri, How Arbitration Works (4th ed. 1994). Hearsay evidence has been admitted regularly in union disciplinary proceedings arising under the Teamsters Consent Decree. United States v. IBT (Cimino), 964 F.2d 1308 (2d Cir. 1992), at 1312, aff'g United States v. IBT(Cimino), 777 F.Supp. 1130 (S.D.N.Y. 1991); United States v. IBT (Senese & Talerico), 941 F.2d 1292 (2d Cir. 1991), at 1297, aff'g United States v. IBT (Senese & Talerico), 745 F. Supp. 908 (S.D.N.Y. 1990). The test is whether the evidence is reliable. Senese & Talerico, 941 F.2d at 1298 (citing Richardson v. Perales, 402 U.S. 389, 402 (1971)). The testimony of the IG Inspectors regarding statements of contractors describing the incidents at VHR Construction, B.J. McGlone Co., and E & S Construction are hearsay; however, they demonstrate a similar pattern, and similar demands were related by three individuals who have neither bias nor reason to falsify. The individuals knew their statements would eventually be known when they spoke to the investigating officials, yet they still exposed themselves to the risk of voluntary cooperation. One of the individuals initiated contact with officials. I recognize that one of the individuals has remained unnamed and, standing alone, his statements would not be probative. Nonetheless, I give evidentiary weight to his information due to the striking similarity between the three incidents. The hearsay statements of the unnamed individual match the hearsay statements of the named individuals. The statements describe the same modus operandi, the same labor extortion goals during roughly the same time period, and involve the same two perpetrators. I find that the hearsay statements of the contractors corroborate each other and I find the evidence to be reliable especially given the very similar pattern. See Senese & Talerico, 745 F. Supp. At 915 (court found hearsay evidence reliable based upon FBI Agent's information being culled from various sources and the various sources' corroboration of one another). See also Cimino, 964 F.2d at 1312 (court used a number of factors to evaluate reliability giving evidentiary weight to hearsay declarations of three LCN members related by FBI agent; factors included corroborating statements in crucial respects, a consistent picture of the relationship of the individuals and the statements matched the FBI agent's declaration in the subject matter). The EDP prohibits members from engaging in barred conduct. Barred conduct includes, among others, committing any act of racketeering. See EDP § 1. The EDP also incorporates the Ethical Practices Code ( " EPC " ). The EPC defines barred conduct to include in pertinent part: " committing any act of racketeering, as defined in Title 18 of the United States Code, section 1961(1) … " See EPC, Barred Conduct. Title 29 U.S.C. § 186 is included as a racketeering violation in 18 U.S.C. § 1961(a). Title 29 U.S.C. § 186, makes it illegal for a labor leader to request and or to receive anything of value from a contractor with whom he has a collective bargaining agreement: It shall be unlawful for any person to request, demand, receive, or accept, or agree to receive or accept, any payment, loan, or delivery of any money or other thing of value prohibited by subsection (a) of this section. 29 U.S.C. § 186 (b)(1) (emphasis added). Section 186 (a)(1) prohibits " giving any money or other thing of value to any labor organization, or any officer or employee thereof, which represents, seeks to represent, or would admit to membership, any of the employees of such employer who are employed in an industry affecting commerce. " Respondent argues that the IG Inspector never asked Wortman if he believed the request for a gift was an " extortion or a demand. " The argument has no merit; any form of request is prohibited. Barred conduct also includes " knowingly associating " with members of an organized crime family such as the LCN, and knowingly allowing an LCN member or associate to influence a LIUNA officer. See EDP § 1. Under the EDP, the term " knowingly associate " means that: (1) the union member knew the person with whom he or she was associating was a member or associate of the LCN; (2) the association related directly or indirectly to the affairs of the union; and (3) the association was more than fleeting or casual. Id. In Senese & Talerico, the Court upheld the IBT Independent Administrator's determination that " `knowing association' can be inferred from the duration and quality of the association. " 745 F.Supp at 918. There is no doubt Wasserman knew the persons with whom he was associating were members of organized crime. The individuals with whom Wasserman dealt were identified as well known members of organized crime families by three former organized crime members. The association was not fleeting or casual. Wasserman attended meetings with contractors accompanied by James DiModica, a known associate of organized crime, whose presence was not related to the ordinary course of union business. Wasserman took James DiModica along for his intimidation factor. Wasserman had to have known James DiModica was associated with organized crime; there was no other reason for DiModica to accompany him. A similar conclusion was reached by the Independent Administrator in Cimino where the Independent Administrator found that Cimino had to have known of Nicodemo Scarfo's Philadelphia organized crime ties during their association because " the very purpose of that relationship " was allowing Scarfo to use Cimino and the local union to " further his La Cosa Nostra interests. " Investigations Officer v. Joseph Cimino, Jr., Decision of the Independent Administrator, IBT Trusteeship (May 28, 1991) at 9); (Cimino), 777 F.Supp. 1130 (S.D.N.Y. 1991), aff'd., 964 F.2d 1308 (2nd Cir. 1992). The relationship between Wasserman and James DiModica was obviously an illegal joint venture to extort union contractors with the approval of the Gambino family. The GEB Attorney offered evidence to demonstrate that Wasserman was a part time no-show shop steward and argued that being a no-show shop steward is evidence of being associated with organized crime. I do not find this evidence to be probative of Wasserman's organized crime association. Obstruction Charge IX: On or about June 27, 1996, Alan D. Wasserman, on being interviewed by investigators of LIUNA's Inspector General's Office, committed " barred conduct " in violation of the LIUNA Ethics and Disciplinary Procedure and the LIUNA Ethical Practices Code by refusing to answer questions, terminating the interview, and thereby obstructing and interfering with an investigation being conducted by the LIUNA Inspector General's Office. Findings of Fact 75. In May 1996, IG Inspectors interviewed Wasserman at his residence in Union, New Jersey. Tr. 61, 64. 76. In June 1996, IG Inspectors attempted to interview Wasserman a second time at the VHR job site at the Newark Airport to obtain the additional information about James DiModica. Tr. 64. 77. They met Wasserman as he came out of the security area. The IG Inspectors offered to speak with him in the coffee shop. Tr. 65. Wasserman stated he preferred to speak at the VHR trailer outside the parking lot area and the IG Inspectors agreed. Id. 78. The IG Inspectors told Wasserman they needed more information on the identity of James DiModica. Id. Wasserman refused to speak with them and stated he was very concerned that someone had broken into his house three days after the May 1996 interview with the IG Inspectors. Tr. 66. 79. Wasserman refused to reply to questions about James DiModica and began to leave the area. Id. The IG Inspector told Wasserman he should remain and speak with them. Tr. 66. Wasserman refused and left the building. Id. 80. Outside the building, IG Inspectors again requested that Wasserman speak to them. Tr. 66. Wasserman again refused. Tr. 66- 67. 81. I find that Wasserman purposefully refused to submit to an IG interview, and thereby obstructed the IG investigation. CHARGE X On or about July 8, 1997, Alan D. Wasserman at his deposition committed " barred conduct " in violation of the LIUNA Ethics and Disciplinary Procedure and the LIUNA Ethical Practices Code by falsely testifying that he had been elected by the general membership to be the Business Agent for Local 342 despite knowing that the general membership did not elect him and that he instead was appointed to the position. 82. I find the fact that Wasserman's statements that he was elected rather than having been appointed, was not a material fact and was not in violation of the EPC. CHARGES XI-IV 83. Disciplinary Charges XI-XIII allege that Wasserman falsely testified at his deposition, that he never demanded a Christmas gift from a contractor, that he never demanded things of value from a contractor in exchange for labor peace, that he never attempted to extort Victor Wortmann or VHR Construction, and that he never met with or approached contractors with James DiModica. The preponderance of the evidence proves that Wasserman did perform all of these acts and when he was asked about them under oath he denied his participation. 84. Disciplinary Charge XIV alleges Wasserman committed barred conduct in violation of the EDP and EPC by falsely testifying at his July 8, 1997 deposition that he never knowingly associated with members or associates of organized crime. See GEB Ex. 1. The preponderance of the evidence shows he gave false testimony when he was asked about his connections with organized crime and he denied them. Conclusions 1. During the period of time alleged in the charges, Local 342 was dominated by members or associates of the Gambino crime family. 2. There is a preponderance of the evidence that Wasserman committed barred conduct by requesting money from VHR Construction in violation of 29 U.S.C. § 186 (b)(1) and the EPC. 3. There is a preponderance of the evidence that Wasserman committed barred conduct by demanding money from B.J. McGlone & Co., Inc., in violation of 29 U.S.C. § 186 (b)(1) and the EPC. 4. There is a preponderance of the evidence that Wasserman committed barred conduct by offering to allow B.J. McGlone & Co., Inc. to use non-union labor or to pay LIUNA members less than union- scale wages and benefits in violation of 29 U.S.C. ' 186 (b)(1) and the EPC. 5. There is a preponderance of the evidence that Wasserman committed barred conduct by demanding money in exchange for labor peace from E & S Construction, in violation of 29 U.S.C. ' 186 (b) (1) and the EPC. 6. There is a preponderance of the evidence that Wasserman committed barred conduct by offering to allow E & S Construction to pay LIUNA members less than union-scale wages and benefits in violation of 186 ' (b)(1) and the EPC. 7. There is a preponderance of the evidence that Vincent " Juicy " DiModica is a member of the Gambino family and James DiModica is an associate of the Gambino family. 8. There is a preponderance of the evidence that Wasserman knowingly associated with members of organized crime, thereby committing barred conduct under the EDP. 9. The evidence clearly demonstrates that Wasserman's associations with organized crime directly affected the affairs of the union. Wasserman took a known LCN associate on his visits to contractors and demanded payments in exchange for labor peace and permission to use either non-union labor or non-union scale wages and benefits. The Wasserman/James DiModica venture was an on-going scheme to extort contractors. 10. There is preponderance of the evidence that Wasserman committed barred conduct by giving false testimony at his deposition when questioned about his association with organized crime and his dealings with VHR Construction, B.J. McGlone & Co., Inc., and E & S Construction. 11. Wasserman's statement that he was elected to be a Business Agent of Local 342, rather than appointed was not a material misstatement and did not obstruct the GEB Attorney. Decision Charges I-IX and Charges XI-XIV have been proved by a preponderance of the evidence. Charge X has not been proved by a preponderance of the evidence. Penalty Wasserman's membership in LIUNA is permanently revoked. Wasserman is permanently barred from holding an office in or being employed by Local 342 or from being an officer or being employed by any LIUNA affiliated entity or fund. Wasserman has a right to appeal this Order to the LIUNA Appellate Officer by filing a Notice of Appeal with the Appellate Officer within 10 days of the date this Order. Peter F. Vaira INDEPENDENT HEARING OFFICER --- ----------- [1]See previous IHO findings pertaining to LCN history in the United States, In the Matter of Fallacara, IHO Order and Memorandum, 96-65D (Sep. 25, 1997) at 2-3. See also In Re Trusteeship Proceedings Chicago District Council, IHO Order and Memorandum, 97-30T (Feb 7,1998); In re Bifulco, IHO Order and Memorandum, 95-48D(1-28) (March 17, 1998). The Albanian Connection; As Italians Move Up, a New Group Does the Pizza and Pasta source: THE NEW YORK TIMES More information. April 3, 2001, Tuesday By DEXTER FILKINS (NYT); Metropolitan Desk Late Edition - Final, Section B, Page 1, Column 2, DISPLAYING ABSTRACT - Americans becoming owners of Italian-American restaurants and pizza parlors in New York City and surrounding area; various reasons cited " Hillary Clinton has long masqueraded as a champion of women's rights, yet the Balkan Wars perpetrated by her husband Bill Clinton , far from helping the rights of women, actually harmed women. " Sex Slaves: Trafficking in human beings from Moldova to Italy …the West has helped to create the demand, by stationing tens of thousands of troops in the Balkans. Not all of these sex slaves' clients are soldiers and international workers, but their presence has greatly fuelled the demand for brothels in the Balkans. Certainly, the volume of trafficking, which picked up in the spring of 1999 as soon as Nato troops arrived in Macedonia in anticipation of military strikes against Yugoslavia [1], has greatly increased since the Kosovo war. Finally, the West has helped to create the link between the supply and the demand by supporting, in the Kosovo war, the very Albanian Mafia which now controls this market. The fact that there is so much reporting now on the matter of sex slaves may be an indication that the powers that be in the West are beginning to ditch those whom they portrayed during the spring of 1999 as passive and innocent victims…. It is clear that the Albanian Mafia controls prostitution in Italy, and that a very large number of prostitutes there are effectively slaves. Although not all the girls in Italy are from Moldova – many come from Nigeria and Albania – it has been affirmed by one of the leading authorities on prostitution that they are kept in captivity. " All the women currently on the streets (of Italy) are slaves. The proof is that the Nigerians, the Albanians, the Romanians and the women from Eastern European countries all have their passports taken away by their pimps. There is not one metre of street in which prostitution is not controlled by criminals, " according to Don Oreste Benzi, a priest in Verona who has founded a charity which works with prostitutes. Benzi goes on, " The Albanians operate in family clans, in `joint ventures' with the Mafia in Eastern Europe and Italy. No new pimp can start operating in Italy without paying a percentage to the person who already controls the territory. Any mistakes are punished by death. For the Albanians, vendetta is second nature: the concept of forgiveness does not exist. " [7] According to Benzi's charity, the Association of the Community of Pope John XXIII, 48% of the prostitutes in Italy are from Eastern Europe; 35%-40% are minors (from 12 to 18 years old); and 26% have been kidnapped and taken from their countries of origin by force.[8] source: http://www.bhhrg.org/CountryReport.asp?ReportID=160 & CountryID=16 Hillary Clinton has also masqueraded as someone concerned about Children's Rights. Once again, the Balkan Wars perpetrated by her husband Bill Clinton actually harmed children too. " Sexual exploitation of children An especially appalling aspect of the trade in human beings is the sexual exploitation of children. BHHRG representatives interviewed Mariana Petersel, the Director of Save the Children in Moldova, whose organisation has started to house and rehabilitate young women and girls who have been forced into sex slavery. The youngest victim with which they have dealt was nine years old. 260 victims of sex slavery have been housed and helped by Save the Children during 2000. They had been in various Balkans countries: Kosovo, Albania, Macedonia, Italy, and Greece. References for further reading: Trafficking in Migrants, http://www.iom.int/iom/Publications/trafficking_in_migrants.htm Pino Arlacchi, Schiavi, Il nuovo traffico di esseri umani, Rizzoli, Milan, May 1999 Don Oreste Benzi, Una nuovà schiavtù: la prostituzione coata, Paoline Editoriale Libri, 1999 Sandro Provvisionato, UKC: l'armata dell'ombra: l'esercito di liberazione del Kosovo. Una guerra tra mafia, politica e terrorismo, Gamberetti Editrice, Rome, 2000. [1] Giuseppe Rolli, Le schiave dei soldati di pace, Il Manifesto, 18th April 2000 [2] The Current Situation on Trafficking in Women in the Republic of Moldova, unpublished report by Ala Mîndîcanu, Member of the Moldovan Parliament. [3] Marion van Renterghem, Filles esclaves venues de l'Est, Le Monde, 1st December 2000 [4] Eastern Europe's Impoverished Girls Fall Prey to Sex Trade, Albanian Daily News, 5th October 2000 [5] Tino Oldani, Tirana? Come una Colombia sotto casa, Panorama, 1st July 1999 [6] Ibid. [7] Don Oreste Benzi, Le prostitute sono schiave: ecco la prova, http://www.mess-s- antonio.it/msahome/ita/riviste/rivnaz/a2000/Ott/Art/53%20Prost\ itute.htm [8] Presidente Ciampi, Ecco come fare per sconfiggere il racket della prostituzione, http://www.exodus.it/ASSOCIAZIONI/AP23/sempre/00ott/00ott03.html. [9] The Italian Finance Minister, Ottavanio del Turco, has also recently attacked the Mafia activities of the Montengrin president, Milo Djukanovi & #263;. See La Repubblica, 12th January 2001 source: http://www.bhhrg.org/CountryReport.asp?ReportID=160 & CountryID=16 Wednesday, 2 August, 2000, 12:58 GMT 13:58 UK Italy's sexual slave trade Many prostitutes in Italy come from Albania In the first of two special reports, the BBC's Brian Barron investigates Italy's clandestine trade in sexual slaves and the Albanian criminals behind the business. It is estimated that there could be more than 40,000 foreign prostitutes on the streets of Italy - and the numbers are increasing. The streetwalkers venture out every night after 10, on the edge of big cities like Rome. Each trip was awful but that was my choice. If I returned to Albania I was dead. Prostitute In the Eor district, they are Albanian or from other former communist countries. Most are controlled by Albanian mafia gangsters. A handful have travelled to Italy through their own efforts. One streetwalker whose identity must be kept secret recalls her particular journey. " I came by boat, " she says. " I was smuggled in. I had tried four times. It was a horrible trip. " " It was winter, cold and raining. It was a terrible risk. I saw dead people with my own eyes. " " Each trip was awful but that was my choice. If I returned to Albania I was dead. " " Dead or alive - this was my only choice. " Tarantelli: Women are held in slavery The former Italian MP, Carol Bebbe Tarantelli, says that the women are slaves. " They are brought here, " she says. " Their passports are destroyed often, usually as a matter of fact they are tortured to break their wills. " " They're moved around from place to place so they don't know where they are. They don't speak the language. " " They're terrified and they can't escape. They're held in slavery. " Poverty For many of the girls, the journey began in their Albanian homeland. In Durres, most people are out of work, surviving on remittances from relatives abroad, like the girls on the streets of Italy. In its poverty and human desperation it is typical of countless Albanian communities. Once Albania was an all-powerful communist police state. It is now a country beyond the rule of law. The police chief of Durres, Colonel Albert Pilo, is having a difficult time stamping out the smuggling of young girls. Durres: Lawlessness and poverty prevail " We have had some success against traffickers in prostitutes, " he says. " We've arrested at least three. But a big problem is what to do with the girls caught up in the system, especially if they come from outside Albania. " " The fact is we do not have any organisation for helping them. " " At times we've had to keep the girls in prison because there's nowhere for them to go. " Dramatic pictures, taken two years ago, show one of the speedboats of the Albanian mafia being intercepted by Italian security forces. An Albanian mafia speedboat with its human cargo heads for Italy It was trying to land a batch of illegal immigrants on Italy's Adriatic coast. Boxes of drugs were thrown overboard as the gangsters, travelling at 60 miles an hour, evaded the helicopters and ships trying to encircle them. On the coast at Lecce, the Italian Justice Ministry, working with a Catholic charity, has launched another kind of assault on the Albanian mafia. In one camp for illegal immigrants, Father Cesari helps run a witness protection programme for former prostitutes from Albania and Eastern Europe. Hope for some of the women in the witness protection programme " The choice of denouncing their pimps is an act of responsibility, " he says. " It's not an easy decision to make. So these girls must have the courage to do it. " To cut all ties with the past. By pointing the finger at those who abuse them there is the chance that some of the guilty will be brought to justice. " Eighty girls have collaborated. They have been rewarded with the right to remain in Italy and, when necessary, new identities. However, 500 declined because they were afraid of the godfathers. source: http://news.bbc.co.uk/1/hi/world/europe/862942.stm The notorious Mafioso Johnny Dio is described here. Actor Frank Pellegrino played Johnny DioGuardi in Martin Scorcese's 1990 film GOODFELLAS. Was Johnny DioGuardi a relative of Joe DioGuardi? We would like to know. If you know please post your materials and sources for them. Joseph J. DioGuardi was born in the Bronx, New York, on September 20th, 1940. Johnny DioGuardi was born in East Harlem on April 28th, 1914. Johnny Dio, a.k.a. Johnny DioGuardi was not Jewish by any stretch of the imagination. DioGuardi specialized, among other things, in victimizing Jews. DioGuardi victimized some Jews directly and victimized other Jews less directly, as they became unwitting customers. The article below notes that " A salesman for the company testified in 1969 that often the meat they delivered to retailers was " sometimes light green and sweaty and often was an atrocity to perpetrate on our customers. " " On November 14th, 1964, two NYPD detectives sat in a basement in Queens, New York, listening to a tape recording of the conversations coming out of a bug—a tiny wireless microphone and radio transmitter hidden in the office of Norman LoKietz, president of the Merkel Meat Company. They were listening to evidence that illustrated with chilling clarity that the Mafia controlled an industry that robbed the public of more than just its money. It was also stealing its health and safety. In the taped conversations, the name " Johnny Dio " kept cropping up. The cops knew who he was. Dio's photograph, with a cigarette dangling from one corner of a viscous snarl as he slugged a United Press photographer outside a Senate committee hearing room, appeared on front pages of newspapers all over the country, because it so perfectly matched the average person's preconception of what a Mafia thug should look like. As the police developed their investigation into the Merkel Meat Company and the links with Dio, aka Johnny Dioguardi, it became increasingly obvious that the Lucchese crime family was earning big money from its involvement in the movement of substandard and, at times actually rotten meat, that was being sold into the retail marketplace. Dioguardi was a master fixer and controller of locals and unions and, through this influence, was able to manipulate opportunities for himself and the Lucchese family in a wide range of areas. The Nassau DA William Cahn illustrated Dioguardi's association with one particular company that showed his ability to corrupt and control. In 1963, he joined Consumer Kosher Productions as a salesman on a salary of $250 a week. By 1966, he was earning $5000 per week, and in addition had taken over control of the business. He used this company as a vehicle to gain control of the low price kosher meat business. Essentially his method was to take over an organization, buy in supplies and create an extended line of credit, never pay his debtors, and when the business went bust, move on to the next one.A salesman for the company testified in 1969 that often the meat they delivered to retailers was " sometimes light green and sweaty and often was an atrocity to perpetrate on our customers. " Consumer Kosher Productions eventually went bankrupt, and Dioguardi shifted what remaining assets there were to another company called Tel Aviv. That company also went belly-up in due course and he then set up a firm called First National Kosher Provisions. And so it went on. Eventually the law caught up with him and he was indicted, and in 1967 was sentenced to five years in prison and fined $10,000. By this time, Dioguardi had been connected to the Lucchese family for over thirty years. Johnny Dio under arrest(AP) Johnny Dio was born in East Harlem on April 28th, 1914. He grew up on Forsythe Street in Little Italy where his father Dominick owned a bicycle shop there. By 1930, he was already at age fifteen an apprentice young hood. After a year and a half at Stuyvesant High School, he left to begin work. Through the influence of his uncle, James " Jimmy Doyle " Plumeri, a prize fighter, racketeer and upcoming soldier in the Gagliano family, he became a leg-breaker and budding extortionist working the Garment Center. He was also, as legend has it, one of the gangsters involved in the so called " Murder Inc. " group that worked out of Brownsville, East New York, in the 1930's carrying out murders….Darkly handsome—so dark that he was called " Blackie " as a young street punk—wearing $250 silk suits and a pleasant smile, well dressed, well barbered and well manicured, he was always careful to give the appearance of an urbane and successful businessman.In 1935, Thomas Dewey, the crusading New York DA, listed Dioguardi as among the most dangerous hoods in the city. And all this before he was twenty-one years old! In 1937 he got a three-to-five year sentence at Sing-Sing after being convicted with his uncle and several other mobsters for extortion and assault. They had been extracting $5000 from every trucker in the garment district, plus demanding a premium on every suit and coat made in the area.In 1944, he was indicted for operating an illegal still, but the charge was dismissed.In 1954, he was tried and convicted for failure to pay state income tax in connection with his continued shakedown of operators in the garment district. For that, he got sixty days.In November 1957, he went on trial with some Teamster officials for shaking down owners of stationery stores. After a four week trial, he was convicted and sentenced to two years in jail.By the time he was forty, he was a " made man " in the Gagliano family which was now referred to as the Lucchese family, operating as a capo, or crew chief, and he was a multi-millionaire. He was highly regarded in the family as a " ferocious earner " the highest accolade that can be bestowed on a member of organized crime, generating in excess of $100,000 each week. He was so rich, his standard Christmas present to his wife was a shoe box stuffed with $50,000 and a sweet little note such as " buy yourself some nice clothes, honey. " He lived in great style, wining and dining at the best hotels and restaurants in town, but always reserved Sundays to meet with family and friends, and prepare lunch or dinner. Like so many mobsters of Italian-American extraction, he was an excellent cook, and loved to entertain at his beautiful and lavish home in Freeport Avenue, Point Lookout, Long Island, which he had purchased for $75,000 in the early 1960's. His legitimate business fronts which contributed to his significant tax returns each year, included many highly profitable clothing factories, and also Jard Products at 260 Fifth Avenue, Manhattan, which sold promotional items to commercial establishments. One of their major customers was the retail chain Waldbaums.His skill as a union manipulator was legendary in the Mob, and on one occasion, Thomas Lucchese arranged for him to travel to Los Angeles to help out an old friend, Jack Dragna, the boss of the L.A. Mafia family. The ILGWU was trying to drive out non-union, cheap Mexican labour from Dragna's factories, but Dioguardi's expertise secured waivers on every important stipulation set up and foiled the union's attempt.In the 1950's, Senate investigations named Dioguardi as one of the masterminds that manipulated the unions operating out of Idlewild, the vast 5,000 acre international airport that would one day be called Kennedy.When Jimmy Hoffa was making his play to become president of the giant Teamsters Union in 1957, he turned to an old friend, Johnny Dio for help. It wasn't clear whether or not the majority of the New York area locals supported Hoffa, and this was necessary to swing enough voters to support his control of the mid western region, secured through the Chicago Mob's help. The solution was to create more locals: enough to establish a majority. This was done by setting up " paper " locals—locals with few if any members—that could swing the balance in the New York voting.Dioguardi engineered the creation of seven new Teamster unions. The extra supply of delegates from these guaranteed Hoffa control of the New York delegation of the Teamsters convention. These seven locals were basically sham fronts, composed not of working people, but friends and relatives of Johnny Dio. Hoffa won the nomination.With hindsight it was probably the start of Hoffa's imbroglio with the Justice Department, resulting in his war with Robert Kennedy, his indictment, trial and imprisonment in 1967, release in 1971 and the events that led up to the fateful rendezvous on July 30th, 1975, at the Manchus Red Fox Restaurant in Detroit. He went there to meet up with three men. It was a rendezvous from which he never returned, vanishing off the face of the earth; murdered probably by Salvatore Briguglio, a man connected to the Genovese crime family. Hoffa became a ghostly testator who haunts the Teamsters trust to this day.John Dioguardi was undoubtedly one of the most powerful members of the Lucchese crime family. His influence was felt in many areas, particularly those relating to labor. He is remembered however, more than anything, for one especially terrible act.In the early hours of Thursday April 5th, 1956, a nationally known newspaper columnist and commentator on labor affairs called Victor Riesel made a radio broadcast in New York. The 41-year-old Riesel was a crusading journalist, specializing in investigating union corruption and Mob-influenced officials. Writing for the Daily Mirror, his column was syndicated in 193 newspapers. This night, he interviewed two workers from Local 138 of the International Operating Engineers Union out of Long Island. Run by father and son both called William DeKoning, they and their local were involved in shaking down contractors and were under investigation by Manhattan US attorneys.After the broadcast, Reisel and his secretary, Betty Nevins, went to Lindy's restaurant at Broadway and 51st Street for a late supper. At 3 a.m. as they were walking to Nevins' car, a man approached them and threw sulphuric acid into Riesel's face. Rushed to St. Clare's Hospital, surgeons were unable to save his eyesight. Victor Reisel A federal investigation established the attacker was a twenty-two- year-old hood and longshoreman called Abraham Tevi. He had been hired by one Joe Carlino and paid $1,175 to do the job. The money had apparently been put up by Dioguardi. As publicity mounted, Tevi became convinced that he had been grossly underpaid to carry out a piece of work on such an important person and demanded $50,000. What he got instead was two bullets in the head, and his body was found on July 28th, lying on Mulberry Street, in Manhattan's Little Italy district. Although some people were tried and convicted of the attack on Reisel, the two prime witnesses against Dioguardi, Gondolfo Miranti and Domenico Bondo, backed off, and all charges against Johnny Dio were dropped in May, 1957. The assault on Victor Reisel brought a lot of pressure down on Johnny Dio. The very action that was aimed at removing a source of irritation, resulted in far more damage to his activities that could possibly have occurred had the assault not taken place.Despite all the other criminal acts that he was involved in or convicted of, Dioguardi is still best known as " the man who blinded Victor Reisel. " That reputation more than anything else guaranteed that the police, FBI and the media would never stop hounding him, and as a result, he would eventually spend the rest of his prime years in prison for other crimes he committed.Dioguardi always on the lookout for new rackets, discovered the boom in fly-by-night stock promotions in the late 1960's. Stock would be acquired from a failing company for little or no money; the market would be rigged in the stock through a brokerage firm he operated called J.M. Kelsey & Co. then the shares would be sold at vastly inflated prices—leaving the investors to hold the bag when the fraud was eventually exposed. However fate and the law finally caught up with Johnny Dio and, in 1970, he, along with his immediate boss in the Lucchese crime family Carmine Tramunti, were indicted on fraud charges concerning stocks in two firms, Belmont Franchising Corp. and At-Your-Service-Leasing Co.He was tried and convicted in December 1973, and sentenced to a further prison sentence, concurrent to the one he was already serving at Danbury Prison in connection with one of his kosher meat company scams. Due for parole in August 1979, he died in a prison hospital the same year. Johnny Dio going to prison one last time Johnny Dioguardi was a good example of the consummate mafioso. He started young at fifteen and had a perfect introduction into the world of crime through the guidance and help of his uncle. He combined thuggery, cunning, guile and polish in an enviable mixture. He made the right kind of connections from an early age. Jimmy Hoffa for instance, was a boyhood friend, and Dioguardi used these contacts throughout his career as a means of levering his scams and extortion's into huge, money-spinning ventures for himself and his crime family. Like many criminals, he obviously had the brains and ability to have succeeded in legitimate business, had he been that way inclined. The highest earners in the Mob work longer hours than any Fortune Top 50 C.E.O.s. Even the lowest soldiers will routinely put in eighty hour weeks, seven days to keep on top of their scheming and scamming. When he died in a Pennsylvania prison hospital, his passing attracted no newspaper attention. All his wealth and power and almost fifty years of criminal depravity seemed to count for nothing at all. It was as though he had never existed. " source: http://www.crimelibrary.com/gangsters_outlaws/family_epics/lucchese2/ 2.html " February 2001In The Money: Congressman James Traficant And His Campaign ContributorsBy James Ridgway de Szigethy Convicted associates of the Pittsburgh Mafia Family, Mafia- corrupted labor Unions and Middle Eastern political operatives are among those who have contributed to the past two re-election campaigns of Congressman James Traficant, an analysis of Federal Election Commission records reveals. These records, which are required filings under Federal Election law, reveal 219 donations by individuals and 212 donations by Unions and Political Action Committees. 47 of the personal contributions came from outside the State of Ohio, with 35 of those from the State of Virginia. 38 are from individuals that indicate a Middle Eastern background of the contributor. Among the contributors whose names would probably be recognized by most Youngstown residents are Ed Flask, Mark Colucci, David Sugar, Anthony Saadey, Russell Saadey, Jr., Sam Traficanti, and fireworks businessmen Bruce Zoldan and Gerald Bostocky. Among the contributors whose names would probably NOT be recognized by most Youngstown residents are Virginia residents Ali Asghar Abbaszadeh, Reza Bulochi, Massud Mirmohammaoi, Ramesh Sepehrrad, and Javad Vaziri, Samir Mohammad, Ammar Shafai, and Homayoun Nasser Sharif, Georgia resident Hossein Shamsai, Massachusetts residents Mahaz Nasseri and Hessein Sadeghpour, Kansas City's Sajadi Sacid, Maryland's Cyrus Samet and Mahmoud Tabassi, and San Diego's Mohammad Bigdeli. Russell Saadey Jr., a former investigator for the District Attorney's office in Youngstown, was indicted last December on charges he bribed Judges to fix Court cases. Ed Flask accepted a plea bargain last year in which he pleaded guilty to felony charges in regards to his rip-off of nearly $2 million while running the public water utility in Youngstown. Flask first received notoriety during the 1983 Federal bribery trial of then-Sheriff James Traficant, when it was revealed that Cleveland Mafia associate Charlie " The Crab " Carabbia had secretly tape recorded Traficant bragging about how he laundered through Flask's law office part of the $163,000 in bribe money he accepted from the Mafia. Those same tapes revealed that Carabbia was blackmailing Flask with " compromising photographs of Flask which would ensure his silence! " Just days later, Carabbia was abducted and murdered. B & T Express employee Sam Traficanti was present during some of the secret tape -recorded meetings between the Carabbia brothers and Sheriff-elect Traficant, but was not charged. Two of Traficanti's fellow employees at B & T Express also donated to Traficant's campaign records show. Traficanti is not related to Congressman Traficant. Last September, the Congressman's employee Anthony Traficanti was subpoenaed by the Federal Grand Jury in Cleveland. Congressman Traficant has also received campaign contributions from Youngstown resident Walter Terlecki. In recent months, Congressman Traficant has entered into the Congressional Record sworn affidavits by Michael " Beef " Terlecky, a former Mahoning County Deputy Sheriff who was convicted of taking bribes from the Mafia. Terlecky now claims that he was set up by some of the same authorities that are now involved in the investigation of Congressman Traficant, including two public figures who attended an anti-Mafia summit meeting recently in Palermo, Sicily. The Congressman has denied a request by the chairman of the Mahoning County Board of Elections who is seeking information the Congressman claims to have regarding Mafia bribes to the campaigns of elected officials in Youngstown. Terlecky also claims that it was he who found the infamous Carabbia tapes months before the FBI during an illegal search and seizure regarding an investigation into the murder of yet another Youngstown Mafia figure, Joe DeRose. However, conversations on the Carabbia tapes that include remarks made by Sam Traficanti clearly indicate that the tapes were recorded months later than Terlecky's claims, when Traficant had just been elected Sheriff. Congressman Traficant is also now claiming that an FBI agent in Youngstown was taking bribes from the Mafia 38 years ago in 1962. During the 1999 Federal bribery trial of Youngstown Sheriff Philip Chance fireworks distributor Bruce Zoldan testified that Chance shook him down for `tribute money' to Pittsburgh Mafia figure Lenny Strollo. Zoldan's first run- in with Chance was in 1983, when Sheriff Traficant and his Deputy Chance raided Zoldan's fireworks business two days before their busiest moneymaking period, the Fourth of July. Zoldan would also testify that the Gambino Family led by John Gotti extorted a huge sum of money from him in order to do business in New York. The murder of Mafia figure Joey Naples, who was among those who contributed to the $163,000 bribe to Traficant, is believed to be a result of the fight for control of the fireworks business. David Sugar pleaded guilty last year to Obstruction of Justice charges in regards to his attempts to conceal evidence from the Grand Jury in Cleveland investigating financial dealings between Sugar, his construction company, and Congressman Traficant. Sugar is expected to testify against Traficant at any future criminal proceedings, as is Traficant's former employee on his horse farm, Clarence Broad. In November of last year, Broad pleaded guilty to charges he tried to hire a hitman to murder a woman who was expected to give damaging testimony against Traficant before the Grand Jury in Cleveland. Criminal attorney Mark Colucci, who also is among those who have given money to Traficant's campaign, responded by alleging in Federal Court that Prosecutor Craig Morford had used coercion to force Broad to plead guilty. Judge Donald Nugent was not impressed with Colucci's unsubstantiated claims and threatened to cite Colucci for Contempt of Court. In 1998 and 2000 Traficant accepted donations from controversial activist James Zogby, President of the Arab American Institute. Zogby was recently in the news last October, when his appointment as an Advisor to the Al Gore campaign sparked outrage worldwide among supporters of Israel. The Jerusalem Post quoted terrorism expert Steven Emerson: " Zogby has not only made comments that are incendiary but he has also made comments that are anti-Semitic! " " (Zogby has) openly supported the Hizbullah! " Emerson is renown for his investigation of the terrorist bombing of Pan Am Flight 103, which exploded over Lockerbie, Scotland in December, 1988, killing 270 people, including 35 Syracuse University students. On June 29, 1993, Senator John McCain entered into the Congressional Record a public challenge to the FBI and the Justice Department to share information on the People's Mujahidin Organization of Iran, a suspected terrorist organization that was involved in a clandestine effort to influence public policy through an organized campaign of directing contributions to the campaigns of selected members of Congress. Said the Senator: " Given the charges made in a previous FBI report that the PMOI has a history of terrorism, an anti-Western ideology, and ties to the regime of Saddam Hussein, this should be a matter of concern to all Members. " In 1997 The Iran Report, a publication of the Middle East Data Project, identified four members of Congress as recipients of campaign donations from alleged associates of the PMOI. Those four were Robert Torricelli of New Jersey, Gary Ackerman of New York, Dan Burton of Indiana and James Traficant of Ohio. To date, none of these individuals have been charged with making illegal campaign contributions. However, Senator Torricelli is currently in the news defending himself against a Chinese fundraiser named David Chang, who has pleaded guilty to illegally contributing $53,000 to Torricelli's 1996 campaign. Numerous recent Media reports show that the Feds are now nearing the conclusion of an investigation that began with reports of impropriety regarding contributions to Torricelli's 1996 campaign. Congressman Traficant has developed a huge following in the Arab and Muslim countries in the Middle East because of his passionate public support for accused terrorists Abdel Basset Ali Mohmed Al-Megrahi and Al Amin Khalifa Fhimah, indicted for the bombing of Pan Am Flight 103, and former auto worker John Demjanjuk, who was placed on trial in Israel on charges he was " Ivan the Terrible, " a Nazi concentration camp guard responsible for the murders of thousands of Jews during World War II. Demjanjuk was convicted and sentenced to death, although the Israeli Supreme Court later reversed his conviction. Congressman Traficant then flew to Israel to personally escort the accused murderer back to the United States. In the case of the terrorist bombing of Pan Am Flight 103, Traficant first went public in this matter at a press conference in 1989, at which he claimed that the bombing was the result of a joint Syrian/CIA operation. ABC News London correspondent Pierre Salinger then picked up the story, utilizing Traficant, government informant Lester Coleman, and private investigator Juval Aviv as his sources. Coleman later pleaded guilty to Perjury charges and admitted his Pan Am/CIA story was a hoax. Juval Aviv was placed on trial in 1996 in Manhattan on Federal fraud charges unrelated to the Pan Am case. He was acquitted. Upon Aviv's indictment Congressman Traficant found a replacement in Boris de Korczak as his lead researcher in his quest to prove his Pan Am 103 theory. Boris is best known for the lawsuit he filed in 1996 against the CIA in which he claimed he had been recruited by the CIA as a double agent against the KGB, that his `cover' had been blown by a drunken U. S. official which resulted in a shoot-out with the KGB during a car chase through the streets of Copenhagen, and that his CIA case Officer extorted from him a bribe of Russian Medieval icons worth $300,000 in exchange for the promise of help in obtaining the pension he claimed was owed him. Boris claims he turned over the bribe, only to be shot in the kidney 4 months later by an unknown assailant armed with a pellet gun. The CIA denied Boris' claims he was owed monetary compensation and also denied any of its employees shot Boris with a pellet gun. Boris' lawsuit was dismissed and the decision was upheld on Appeal. Despite the efforts of Traficant and his associates to prove their conspiracy theory, Abdel Basset Ali Mohmed Al-Megrahi was recently convicted as the terrorist who planted the bomb that destroyed Pan Am Flight 103. Al Amin Khalifa Fhimah was acquitted. In addition to receiving campaign money from convicted Mafia figures and Middle Eastern political operatives, FEC documents also detail contributions made to Traficant's campaign from Unions that have been involved in corruption scandals in recent years. Those Unions include the American Federation of State, County, & Municipal Employees, the Communications Workers of America, the Transport Workers Union, and the UFCW. Traficant has also received donations from the Italian-American Democratic Leadership Council, the Al Gore for President campaign, and the National Education Association Fund for Children and Public Education. Ironic is the $12,000 donated to Traficant by the Association of Trial Lawyers, as Traficant is one of the few people without a law degree to have ever beaten a Federal racketeering trial by acting as his own attorney. When Sheriff Traficant was arrested by the FBI in 1982, he signed a confession after agents played for him excerpts from the Carabbia tapes. Traficant then hired one of the best attorneys in the business, Carmen Policy, Ed Flask's partner, who is today the President of the Cleveland Browns professional football team. However, after Traficant went public with charges that just about every public official in Youngstown was involved with the Mafia, Policy dumped Traficant as his client. Traficant then made a bold – and some would say insane – decision to renounce his confession and stand trial, acting as his own attorney. Traficant explained to the jury that he only accepted the Mafia bribe money so he would know whom to arrest for corruption once elected Sheriff. After four days of deliberations, the jury returned a verdict that stunned the Prosecutors and journalists that covered the trial; Not Guilty. Traficant then turned the publicity over his acquittal to his advantage and was elected to Congress in 1984. However, three years later he was again in Court, facing civil charges that he owed taxes on the $163,000 in Mafia bribes. Representing him was attorney George Alexander, who has since been convicted of racketeering with the Mafia. As in the O. J. Simpson case, Traficant was convicted in his civil trial and ordered to pay back taxes, fines, and interest. For many months now, Traficant has been predicting during public appearances that he expects to be indicted - again - by the Federal authorities in Cleveland who have to date convicted over 70 public officials, many of whom are associates of the Pittsburgh Mafia Family. James Ridgway de Szigethy can be reached at JAMESDE. source: http://www.americanmafia.com/Feature_Articles_121.html above material appeared in Politics and Bedfellows An Age Old Story Told Once Again just Google that title to read the rest of the material material below is from: http://www.thelaborers.net/documents/rico_trusteeships_jacobs.htm The RICO Trusteeships after Twenty Years: A Progress Report United States v. Local 30, United Slate Tile and Composition Roofers, No. 87– 7718 (E.D. Pa. 1987); United States v. Dist. Council of NYC and Vicinity of the United Bhd. of Carpenters and Joiners of Am., No. 90 Civ. 5722 (S.D.N.Y. 1990). Racketeering has been documented in other unions, such as the Union of Painters and Allied Trades, International. See, e.g., Riga v. American Painting Co., Inc., 1986 WL 9248 (E.D. Pa Aug. 25, 1986); see also Local 46 Laundry Workers (Chicago, IL), Local 110 Motion Picture Operators Union (Chicago, IL), Local 136 Machinery Movers (Chicago, IL), Local 18 Operating Engineers (Cleveland, OH), Ironworkers Local 17 (Cleveland, OH). See also PETER F. VAIRA & DOUGLAS P. ROLLER, ORGANIZED CRIME AND THE LABOR UNIONS (1978). 19. See infra Table II. 20. Local 30, United Slate Tile and Composition Roofers, No. 87–7718; United States v. Edward T. Hanley, No. 90–5017 (D.N.J. 1990); Constr. & Gen. Laborers' Dist. Council, 99 C 5229; United States v. LIUNA Local 210, No. 99 CV0915A (W.D.N.Y. 1999). http://bnabooks.com/ababna/laborlawyer/19.3.pdf material below appeared at http://www.fhwa.dot.gov/policy/hl95mar.htm Fuel Tax Evasion Highlights, March 1995 Volume 4, Number 1 March 1995 --- ----------- IN THE NEWS Lawrence Iorizzo, key figure in the NY bootleg gasoline market in the 1980's who turned government informant and was subsequently booted out of the witness protection program and is now wanted by Texas officials, is interviewed. The New Yorker, Talk of the Town, 11/14/94 Marat Balagula pled guilty to conspiring to evade $85 million in federal gasoline taxes on nearly one billion gallons of fuel sold in the NY area between 1983-88. The surprise plea came Oct. 18, a month before he and 7 others were to begin trial. Balagula is already serving a 10-year sentence for similar bootlegging. On Oct. 27, Joseph A. Macchia and his sons Lawrence, George and Joseph L. pled guilty to their role in the scheme. On Nov. 4, John Barberio was the last to plead guilty. Michael Varzar had pled guilty earlier. An eighth defendant, Viktor Batuner, is a fugitive. Newsday, 10/24/94, 11/2/94; Dept. of Justice Press Release, 11/4/94 Eugene Slusker pled guilty in U.S. District Court in Columbus, Ohio to a diesel conspiracy that resulted in a federal tax loss of over $88,000 and a loss of over $117,000 to Ohio during 6 months in 1990. Slusker, using the alias Semyan Altman and doing business as Accurate Tank Testing, Inc., used a false Form 637 to purchase over 587,00 gallons of untaxed diesel fuel which was then sold to numerous truck stops throughout Ohio, tax included. Co-defendant, Roman Kalika pleaded not guilty to federal tax evasion charges. The IRS Criminal Investigation Div. and the Ohio Dept. of Taxation investigated the case. Justice Dept. Press Release 9/30/94; Dayton Daily News 10/3/94; Columbus Dispatch, 12/24/94 The worldwide activities of Russian organized crime and its ability to bilk companies, governments and individuals out of billions of dollars through sophisticated fraud and theft schemes is described in two recent articles. Wall Street Journal, 12/22/94; Atlantic Monthly, 6/94 The Wisconsin Dept. of Justice has charged Patrick S. Gedig and Paul C. Kramer with misappropriating nearly $1 million in motor fuel taxes during 1990. At the time, Gedig was president of United Petroleum, Milwaukee, and Kramer ran Ohio Fuel and Supply, Big Bend. Wisconsin State Journal, 11/1/94 The work of Charles Hurchalla in helping to expose a massive fuel tax scam masterminded by the Russian mob and involving the La Cosa Nostra is described in a recent article. Philadelphia Magazine, 10/94 Court documents filed by federal authorities in NJ name John Gotti as an unindicted co-conspirator in organized crime efforts to dominate the bootleg motor fuel industry in the NY metropolitan area. The disclosure came on the eve of the trial of Anthony (Fat Tony) Morelli, allegedly a capo in the Gambino crime family, and Gregory Federico, owner of Capitol Fuel Service of Cranford and Igor (Little Igor) Roizman, a Russian emigre. To date, 20 persons have been prosecuted on charges growing out of the Operation Red Daisy investigation conducted jointly by the FBI, IRS, DOT Office of Inspector General, NJ Div. of Taxation and PA Dept. of Revenue. Newark Star Ledger, 12/5 and 12/16/94 Jerry Radney owner of Cody's, a fuel distribution service, and Valdosta Truck Stop, in Lowndes County, GA, his wife Cheryl Radney, and Earl Renner, Julius Meyer, and Jacqueline Denniston, officials of Southern States Oil and Gas, Inc., of Atlanta, were indicted of conspiring to defraud the U.S. by failing to pay fuel excise taxes from 1989-1991. According to the indictment, Renner, Meyer and Denniston set up a phony Greek Shipping company called Halcoussis Shipping Lines. It is alleged that Renner, Meyer and Denniston then caused Southern States to purchase truckloads and bargeloads of tax- free diesel fuel and used transformer oil from suppliers and utility companies using false documents showing the fuel was destined for Halcoussis. Allegedly Southern States then delivered the blended fuel to Cody's which in turn sold it to retailers throughout the Southeast at a tax included price. Justice Dept. News Release, 5/25/94; Oil Week, 5/30/94; Norma Latham of Porter, TX, and James Gardner of Humble, TX, were convicted in a motor fuel scheme which defrauded the State of Texas in excess of $475,000. Press Release, Travis County D.A. The State of Maryland filed tax assessments of over $300,000 against two trucking companies and a fuel oil distribution firm for using home heating oil in trucks. Six other companies are expected to receive assessments. The assessments stem from a joint investigation by the MD Comptroller's Office and the EPA. The EPA notice of violation listed Johnny Joe Brice, JJB Oil; Clement Miller II, Canton Oil; Reginald F. Hedgeman, Reggie's Fuel, Ronald A. Tyner, Tyner Trucking, David Rice Jr., Rice Trucking, Solomon Shelby, S & S Trucking -- all of Baltimore and E. King, King's Trucking, of Laurel. The IRS is also expected to investigate the companies. Baltimore Sun 6/10/94; U.S. Oil Week, 6/20/94; Washington Times, 6/10/94 Jerry Dabrusky, Lincoln, NE was sentenced to 90 days in jail after pleading no contest to using untaxed fuel in highway vehicles. Lincoln Star, 1/14/95 Bootleg gasoline sales may be costing Jacksonville, FL, millions of dollars annually in local option fuel taxes. Jacksonville Times- Union Gary Lazar and Divine Grace Lazar, Anaheim Hills, CA, pled no contest to 54 criminal counts, including failing to pay more than $24 million in CA taxes, illegally disposing of hazardous waste, and selling substandard gas in connection with their 200 gas stations. Under a plea agreement they are to be sentenced to no less than 5 nor more than 8 years in State prison. The amount of restitution could be as much as $800 million. The Lazars operated California Target Enterprises, Alameda Management Co., Inc., Pronto Marketing Co., P & M Service Stations, and Challenge Marketing. The firms are pending trial, as are attorney Douglas T. Richardson and accountants Neil Balzar and Mario Rene Solares. The investigation was conducted by the L.A. District Attorney's Environmental Crimes/OSHA Div., the CA Board of Equalization, the Dept. of Special Taxes and Operations, the Dept. of Food and Agriculture Div.of Measurement Standards, the CA EPA and the CA Air Resources Board. News Release, L.A. District Attorney, 9/26/94; L.A. Times, 9/27/94 Joseph Yosi Ezra and Leah Isaac of Beverly Hills pleaded guilty U.S. District Court to felony tax evasion in a diesel fuel scheme. Ezra pleaded guilty to evading $1.4 million and Isaac pleaded guilty to evading $570,000 between March and June, 1992. Operating as " Eurika Distribution, Inc., they purchased over 10 million gallons of fuel tax-free using fraudulent documents. They have agreed to pay nearly $2 million in restitution. Maximum sentences are 5 years in prison and a $250,000 fine. Justice Dept. News Release, 10/18/94 FUEL FRAUD HOTLINE ESTABLISHED IN TENNESSEE Revenue Department special agents who are trained in investigating fuel tax fraud cases staff the Hotline. 1-800-372-8389 (1-800 FRAUD TX) DYED DIESEL ENFORCEMENT Truckers are warned not to run on red diesel and urged to do visual checks when refueling. Transport Topics, 10/24/94 The Mississippi Depts. of Transportation, Agriculture and Commerce, and the State Tax Commission joined with the IRS in " Operation Red Rover " on Nov. 7-9 to check for untaxed diesel. IRS News Release, 11/7/94 On Nov. 23, 1994, NBC Nightly News aired a segment on fuel tax fraud and showing on-road dyed diesel enforcement in North Carolina. WANT TO KNOW MORE? For more information or updates to the mailing list, call Linda Morris, (202)366-0570, FHWA (HPTS), 400 7th Street, SW, Washington, DC 20590. FAX back address corrections or additions to: 202-366-7696 Quote Link to comment Share on other sites More sharing options...
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