Wednesday, September 16, 2015

Former Business Manager Charged with Theft from @LIUNA

A former business manager of the Local 657 of the Laborers International Union of North America (LIUNA) was charged with stealing from the organization.

Anthony Wendel Frederick Sr., 49, of Upper Marlboro, Maryland, the former Business Manager of Local 657 of LIUNA based in Washington, D.C., was charged by criminal complaint with one count of theft from a labor organization.

LIUNA is a labor organization that represents laborers in the construction industry. LIUNA’s Local 657 represents construction laborers in Washington, D.C. and five adjacent counties.  For approximately 10 years, until June 2014, Frederick served as the business manager for Local 657.

The criminal complaint alleges that, from May 2013 to June 2014, Frederick directed more than $1.7 million in Local 657 funds to STS Contracting of Greenbelt, Maryland, without the knowledge or authorization of the Local 657 Executive Board or officials in LIUNA International. Specifically, according to the criminal complaint, a routine audit of the local union by LIUNA in June 2014 revealed that Frederick had paid nearly $1.1 million to STS Contracting for minimal renovations at the Local 657 administrative building. In addition, the complaint alleges that, without authorization, Frederick directed over $580,000 in Local 657 funds to STS Contracting for expediting permits for the construction of a new training center for Local 657, which project was being handled by another construction firm. According to the criminal complaint, the LIUNA auditor also discovered that Frederick grossly overpaid STS Contracting for expediting various permits, including $20,000 to expedite a $143 excavation permit, and over $20,000 to renew existing permits, which could have been accomplished online for approximately $250 apiece.

The criminal complaint further alleges that STS Contracting paid a down payment of $225,000 on a home purchased by Frederick, and directed more than $600,000 to a corporation owned in part by Frederick’s wife. In addition, STS Contracting principals allegedly depleted a company bank account, which contained only stolen Local 657 funds, by withdrawing more than $500,000 in cash and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel.

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