2023 U.S. DOL Criminal Enforcement Actions
On December 7, 2023, in the United States District Court for the Eastern District of Pennsylvania, John Dougherty, former Business Manager of International Brotherhood of Electrical Workers (IBEW) Local 98 (located in Philadelphia, Pa.), was found guilty following a four-week trial of one count of conspiracy to embezzle from a labor union and employee benefits plan, 33 counts of embezzlement of union funds, 22 counts of wire fraud theft from the union, two counts of wire fraud theft from political action committee, two counts of filing a false LM report, two counts of falsifying union records, and four counts of filing false federal income tax returns in violation of 18 U.S.C. 371, 29 U.S.C. 501(c), 18 U.S.C. 1343, 29 U.S.C. 439(b) 29 U.S.C. 439(c), and 26 U.S.C. 7206(1). The guilty verdict follows an investigation by the OLMS Philadelphia-Pittsburgh District Office, the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office.
On December 7, 2023, in the United States District Court for the Eastern District of Pennsylvania, Brian Burrows, former President of International Brotherhood of Electrical Workers (IBEW) Local 98 (located in Philadelphia, Pa.), was found guilty following a four-week trial of one count of conspiracy to embezzle from a labor union and employee benefits plan, 13 counts of embezzlement of union funds, two counts of filing a false LM report, two counts of falsifying union records, and three counts of filing false federal income tax returns in violation of 18 U.S.C. 371, 29 U.S.C. 501(c), 29 U.S.C. 439(b), 29 U.S.C. 439(c), and 26 U.S.C. 7206(1) respectively. The guilty verdict follows an investigation by the OLMS Philadelphia-Pittsburgh District Office, the U.S. Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office.
On December 5, 2023, in the United States District Court for the District of Puerto Rico, Carlos C. Sanchez-Ortiz, former President of International Longshoremen’s Association (ILA) Local 1740 (located in San Juan, P.R.), and former Vice President of the ILA International, was sentenced to three years of probation. He was also ordered to pay $10,000 in restitution. On September 25, 2023, Sanchez-Ortiz pleaded guilty to one count of labor racketeering conspiracy (RICO Act), in violation of 18 U.S.C. 1962(d). In his plea agreement, Sanchez-Ortiz admitted that he participated in a scheme to collect unlawful payments from shipping companies (employers) at the piers, and that those unlawful payments were concealed in part through a company called “JCPY.” The sentencing follows an investigation by the OLMS New York District Office, the Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for the District of Puerto Rico.
On December 5, 2023, in the United States District Court for the District of Puerto Rico, Jorge I. Batista-Maldonado, Supervisor of the Puerto Rico Port Authority (located in San Juan, P.R.), was sentenced to two years of probation. He was also ordered to pay $50,000 in restitution. On September 25, 2023, Batista-Maldonado pleaded guilty to one count of labor racketeering conspiracy (RICO Act), in violation of 18 U.S.C. 1962(d). The sentencing follows an investigation by the OLMS New York District Office, the Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for the District of Puerto Rico.
On December 5, 2023, in the United States District Court for the District of Puerto Rico, Carlos A. Hernandez-Laguer, a member of International Longshoremen’s Association (ILA) Local 1740 (located in San Juan, P.R.), was sentenced to serve one year of probation. He was also ordered to pay $3,567 in restitution. On September 25, 2023, Hernandez-Laguer pleaded guilty to conspiracy to convert funds and falsify the records of an ILA Local 1740 benefit fund, in violation of 18 U.S.C. 371. The sentencing follows a joint investigation by the OLMS New York District Office, the Department of Labor’s Employee Benefits Security Administration, the Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for the District of Puerto Rico.
On December 5, 2023, in the United States District Court for the Southern District of West Virginia, Gary F. Fridley II, former Financial Secretary of United Steelworkers (USW) Local 8621 (located in Nitro, W.Va.), was sentenced to three years of probation. Fridley was also ordered to pay $19,732 in restitution and a $100 assessment. On May 10, 2023, Fridley pleaded guilty to one count of embezzlement from a labor organization, in violation of 29 U.S.C. 501(c). The sentencing follows an investigation by the OLMS Philadelphia-Pittsburgh District Office.