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A federal grand jury has charged 7 current and former high level officers of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmith, Forgers and Helpers (Boilermakers Union) in a $20 million embezzlement scheme.
According to court documents, the individuals are charged with conspiracy to commit offenses under the Racketeer Influenced and Corrupt Officials Act (RICO) for taking part in an alleged 15 year scheme that included embezzlement, health care fraud, wire fraud and theft in connection with health care and retirement plans.
Seven Boilermakers union bosses were just indicted for embezzling $20 million of workers’ dues.
Why should workers ever be forced to pay union dues if it means funding this kind of corruption?https://t.co/GutQw5hsnj pic.twitter.com/1hBl91kvyD
— National Right to Work Committee (@Right2Work) August 25, 2024
Two of the defendants include the former secretary-treasurer William Creeden and current secretary-treasurer Kathy Stapp, both from the Kansas City, Missouri area. Four other defendants are from Chapel Hill, South Carolina and one is from Rocky River, Ohio.
The men are accused of embezzling funds from the Boilermakers Union and spending them on $5 million in unnecessary luxury international travel, more than $2 million in salary and benefits for two workers with no-show jobs, including a two-year salary for one person who wasn’t living in the U.S. at the time.
Other expenditures included hundreds of thousands of dollars in tuition, rent and relocation expenses for family members and millions of dollars in fraudulently claimed vacation time and hundreds of fraudulent restaurant charges.
They are also accused of taking out $7 million in loans from the Boilermakers MORE Fund and using funds to engage in email surveillance of Union employees.
Creeden and another associate are also charged with wire fraud for accepting more than $3.4 million in salary and benefits from the Bank of Labor for a no-show job.
The defendants could face up to 20 years in prison on the RICO conspiracy charge if convicted.
The federal charges raise serious questions about the right to work and whether workers should be forced to pay union dues and fund this type of corruption by their union leaders.
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