Laborers for JUSTICE © 1999 All Rights Reserved. Not for rebroadcast, retransmission, or republishing on the internet without express, written approval of Jim McGough. Intended solely for private use by LIUNA members and concerned citizens.

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
 EASTERN DIVISION

UNITED STATES OF AMERICA, and 
LABORERS' INTERNATIONAL UNION 
OF NORTH AMERICA by and through
ROBERT LUSKIN, in his official
capacity as General Executive
 Board Attorney,

Plaintiffs,

V.

CONSTRUCTION & GENERAL LABORERS'
DISTRICT COUNCIL OF CHICAGO AND
VICINITY, an affiliated entity of 
the Laborers' International Union
 of North America,

Defendant.

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MAGISTRATE JUDGE GUZMAN

99 Ct

RECEIVED
AUG 11, 1999

 

MICHAEL W.DUBBINS
CLERK, U.S. DISTRICT COURT,

COMPLAINT
INDEX

 

PAGE

 

I

INTRODUCTION

 

 

¶¶ 1-5

 

II.

JURISDICTION

4

 

¶ 6

 

III

VENUE 

4

 

¶¶ 7-8

 

IV.

LA COSA NOSTRA

4

 

Introduction
 ¶ 9

5

 

a. The LCN Commission
 ¶ 9 a.

5

 

b. LCN Families 
 ¶ 9 b.

6

 

c. Judicial Authority for the
Existence of the LCN
¶ 9 C.

6

V.

THE PARTIES

 

 

The Plaintiffs.
¶ 10

7

 

Defendant Chicago Laborers
District Council 
¶ 11

8

 

a. Composition of Membership
 ¶ 11 a.

9

 

b. Purpose and Operation of a
District Council
 ¶ 11 b.

9

 

c. Potential for Abuse
¶ 11 C.

10

 

d. Composition of the CLDC
 ¶ 11 d.

10

 

e. Officers of the CLDC
  11 e

11

 

f . Operations of the CLDC 
 ¶  11 f 

11

 

g. Funds Affiliated with
the CLDC 
  ¶ 11 g.

12

VI. 

THE TRUSTEESHIP ACTION

13

 

Introduction.
  ¶12

13

 

LIUNA's Internal Reform Program 

13

 

a. Democratic Practices 
 ¶ 13 a.

14

 

b. Financial Practices  
 ¶ 13 b.

14

 

c. Health, Welfare and
Retirement Funds 
 ¶ 13 c.

14

 

d. Business and Financial
Activities of Union Officials 
 ¶ 13 d

15

 

e. Barred Conduct
 ¶ 13 e.

15

 

The Trusteeship Complaint 
 ¶ 14

16

 

CLDC Officers and the Outfit
 ¶ 15

18

 

The Trusteeship Hearing
 ¶ 16 

20

 

The Trusteeship Decision
  ¶ 17

 21

 

Implementation of the Trusteeship
 ¶ 18

24

 

Actions of the Trustee
 ¶ 19

24

 

Other Reform Actions  
 ¶  20

 

VII.

CO-CONSPIRATORS NOT NAMED AS DEFENDANTS
   ¶ 21

27

VIII.

CORRUPTION OF THE CHICAGO LABORERS
DISTRICT COUNCIL 
   ¶ 22-23

 

IX.

THE DOMINATION AND CONTROL OF THE
CHICAGO LABORERS' DISTRICT COUNCIL
BY THE LA COSA NOSTRA
    ¶ 24

54

 

a. Selection of officers to
Control LIUNA 
 ¶ 24 a.

55

 

(1) Outfit Selection of International
Union Officials
 ¶  24 a.(1)

55

 

(2) Selection of Chicago District
Council and Local Officials
  24 a.(2)

59

 

b. Cronyism and Nepotism in the CLDC
 ¶  24 b.

63

 

c. Appointment and Retention of Corrupt
Individuals to control the CLDC
  ¶ 24 c.

69

 

d. Lack of Democratic Practices
    24 d.

72

X.

FIRST CLAIM FOR RELIEF: CONSPIRACY
TO VIOLATE 18 U.S.C. S 1962(b)

82

 

Conspiracy to Acquire and Maintain Control of CLDC 
 ¶¶ 25-26

 83

 

The Chicago Laborers' District Council Enterprise
  ¶ 27

 

 

Manner and Means
  ¶ 28-36

 

 

Overt Acts
  ¶ 37

 

XI.

SECOND CLAIM FOR RELIEF: CONSPIRACY
 TO VIOLATE 18 U.S.C. S 1962(c)

92

 

Conspiracy to Conduct the Affairs of the
Enterprise Through a Pattern of Racketeering
Activity 
   ¶ 38-39

92

 

The Chicago District Council/La Cosa 
Nostra Enterprise
  ¶ 40

93

 

Manner and Means
  ¶ 41-46

95

 

Overt Acts
  ¶ 47

96

XII.

THE FAILURE OF LIUNA OFFICIALS TO SATISFY
 OBLIGATIONS IMPOSED BY LAW

 

 

Legal and Ethical Obligations of CLDC Officials 
   ¶ 48

 

 

Notice of Corruption within LIUNA
and the CLDC
   49

104

XIII.

PRESENT STATUS Of THE CHICAGO LABORERS
DISTRICT COUNCIL
   50-53

105

XIV

DEMAND FOR RELIEF 
   54

 106

 

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
 EASTERN DIVISION

 

UNITED STATES OF AMERICA and

)

 

LABORERS' INTERNATIONAL UNION

)

 

OF NORTH AMERICA by and through 

)

 

ROBERT LUSKIN, in his official

)

 

capacity as General Executive

)

 

Board Attorney,

)

 

Plaintiffs,

)

 

V.

)

No.

CONSTRUCTION & GENERAL LABORERS'

)

 

DISTRICT COUNCIL OF CHICAGO AND

)

 

VICINITY, an affiliated entity of

)

 

the Laborers' International Union

)

 

of North America,

)

 

Defendant.

 

 

COMPLAINT

    The United States of America, by and through Scott R. Lassar, United States Attorney for the Northern District of Illinois, and the Laborers' International Union of North America (hereafter "LIUNA"), by and through Robert Luskin in his official capacity as General Executive Board Attorney of LIUNA (hereafter "GEB Attorney"), for their complaint, allege as follows:

I

INTRODUCTION

    1 .       This action is brought against the Construction & General Laborers' District Council of Chicago and vicinity (hereafter "Chicago Laborers District Council," or the "CLDC") to rid the district council of domination and influence by members and associates of organized crime. The CLDC is a group of 21 local unions affiliated with LIUNA. The Chicago Laborers District Council has been infiltrated by corrupt individuals and organized crime figures who have exploited their control and influence over the district council for personal gain and to the detriment of the CLDC.

    2.     As a result of the strong, pervasive ties to organized crime, officers and employees of the CLDC and its constituent locals and affiliated funds have been chosen and controlled by various members and associates of organized crime. Consequently, the rights of the members of the union to control the affairs of the union have been systematically abused. Those union members who might have opposed this corrupt state of affairs have been intimidated into silence by economic coercion and by the well-known ties between corrupt union officials and organized crime.

    3.     In 1995, LIUNA, acting through its General Executive Board (hereafter "GEB") , which has authority and control over all of the executive and judicial powers of the union, entered into an oversight agreement with the United States Department of Justice, As part of that agreement, LIUNA has adopted an Ethical Practices Code ("EPC") designed to root out corruption from LIUNA and its affiliated entities and an Ethics and Disciplinary Procedure, which created an independent structure consisting of the GEB Attorney and the LIUNA Inspector General to investigate and prosecute potential violations of the EPC and an Independent Hearing and an Appellate officers to adjudicate these charges. In February 1998, the

2

Chicago Laborers District Council was placed into trusteeship by LIUNA as a result of that internal reform program.

 

    4    The United States and LIUNA, by and through Robert Luskin its GEB Attorney, bring this suit so the United States can obtain equitable relief and for injunctive relief pursuant to the Racketeer Influenced and Corrupt Organizations statute, Title 18, United States Code, Sections 1961 through 1968, (hereafter "RICO") , to support and advance the actions taken pursuant to the internal reform program in order to put an end to systemic and long-standing corruption and the involvement of organized crime in the affairs of the CLDC and to restore control of its affairs to the delegates and officers of the CLDC and the rank and file members of its constituent local unions.

    5      . The United States and LIUNA, by and through Robert Luskin its GEB Attorney, allege that there has been a conspiracy to acquire and maintain control of the CLDC as well as a conspiracy to conduct the affairs of the CLDC through a pattern of racketeering activity. This pattern of racketeering activity has consisted of multiple acts indictable under Title 18, United States Code, Section 1951 involving Hobbs Act extortion, in that the CLDC, through its officers, 'members, agents and representative, together with various members and associates of organized crime have extorted and attempted and conspired to extort the rights of union members to, among other things, select officers, vote without intimidation, and be loyally and faithfully represented by union officers and benefit plan trustees.

3

II

JURISDICTION

 

    6      . Jurisdiction in this action is predicated upon Title 18 United States Code, Section 1964(b); and Title 28, United states Code, Sections 1331, 1345, and 2201.

III

VENUE

7.   Venue for this action is predicated upon Title 18, United States Code, Section 1965(a) ; and Title 28, United States Code, Section 13 91 (b) .

8.   The United States and LIUNA invoke the expanded service of process provisions of Title 18, United States Code, Section 1965(b).

IV


LA COSA NOSTRA