WHEREAS, plaintiffs United States of America and Alexis M. Herman, Secretary, United States Department of Labor (the "Government") commenced this action on September 8, 1994, by filing a complaint pursuant to the civil remedies provisions of the Racketeer Influenced and Corrupt Practices Act, in U.S.C. S 1961   seq. ("RICO"), and the Employee Retirement Income Security Act of 1974, 29 U.S.C. SS 1001 et seq. ("ERISA"), seeking equitable relief against, alia„ defendants the Mason Tenders District Council of Greater New York (the "District Council"), and the District council's Executive Board; and
 

WHEREAS, the Government's September 8, 1994 Complaint also sought equitable relief against employee benefit funds affiliated with the District Council, including the mason Tenders District Council Pension Fund, the Mason Tenders District Council Welfare Fund, The Mason Tenders District Council Annuity Fund, the Mason Tenders District Council Asbestos Training Fund (now the Mason
 

WHEREAS, on December 27, 1994, this court entered a consent decree resolving the Government's action against the District Council, its Executive Board and the Mason Tenders Trust Funds, which decree was modified by a Stipulation and order dated May 15, 1995 (collectively, the "original Consent Decree"); and
 

WHEREAS, the provisions of the Original Consent Decree continue in full force and effect; and
 

WHEREAS, on January 17, 1995, pursuant to the Original Consent Decree, the Court appointed Lawrence B. Pedowitz as Monitor the "Monitor") and Michael Chertoff as Investigations Officer (the "Investigations Officer"), each for a term of 48 (forty-eight) months with the powers as set forth in the Original Consent Decree; and
 

WHEREAS, under the Original Consent Decree the Monitor and the Investigations Officer may apply to the Court to extend the terms of their appointment upon a showing of good cause and upon reasonable notice to the Government and the lawful, representatives of the District
 

2

 

WHEREAS, the purpose or the Original Consent Decree were to eliminate corruption and the involvement of organized crime, directly and indirectly, in the affairs of the District Council, its constituent local unions, and the Mason Tenders Trust Funds and to ensure that those entities were run democratically, prudently, with integrity, in accordance with law, solely for the benefit of their members, participants and beneficiaries, and without unlawful outside influence; and
 

WHEREAS, in the opinion of the Monitor, the District council and its constituent local unions have made excellent progress towards achieving the purposes of the Original Consent Decree; and
 

WHEREAS, the terms of the Monitor and Investigations Officer under the Original Consent Decree will not be extended and, accordingly, will expire on
 

3

 

WHEREAS, in the experience of the Government, organized crime often attempts to reassert its influence into enterprises from which it has been removed; and
 

WHEREAS, in January 1995, the Laborers International Union of North America ("LIUNA"), amended its Constitution to adopt an Ethical Practices Code ("EPC") and an Ethics and Disciplinary Procedure ("EDP") designed to rid LIUNA of the influence of organized crime; and
 

WHEREAS, the EDP and EPC apply to the District Council, its constituent local unions and all officers, members, employees and agents of the District Council and its constituent local unions; and
 

WHEREAS, the District Council and the Mason Tenders Trust Funds desire to ensure the continued lawful operation of, and to protect against the infiltration of corruption and organized crime influences at, the District Council, the Mason Tenders Trust Funds, the District Council's present and future constituent or affiliated local unions, which currently consist of LIUNA Locals 66, 780 790 279 and 1261, and any employee benefit funds or plans affiliated with, or sponsored or administered by the

 

WHEREAS  in order to further the purposes of the Original Consent Decree and to protect against the infiltration Of corruption and organized crime influences, the District Council and the Board of Trustees of the Mason Tenders Trust Funds have requested the ability to consult with a court-appointed officer in the future about the operations of the MTDC; and
 

WHEREAS, the District council, its Executive Board and the Mason Tenders Trust Funds enter into this Supplemental consent Decree as the representative of their respective memberships and/ox participants, beneficiaries, employees, trustees and agents; and
 

WHEREAS, the Board of Trustees of the Mason Tenders Trust Funds consents to the relief sought herein; and
 

WHEREAS, the Business Manager of the District Council is empowered under the District Council constitution to consent to the relief contained herein on behalf of the District Council and its constituent local unions;
 

IT IS HEREBY ORDERED AND DECREED AS FOLLOWS
 

1.   Jurisdiction. The District Council, the District Council Executive Board, and the Mason Tenders Trust Funds acknowledge that this Court has jurisdiction over the subject matter of this action and that this
 

Supplemental consent Decree is a proper exercise of the Court's jurisdiction.
 

2.   Permanent Injunctions. The, terms and scope of the permanent injunction set forth in paragraph 3 of the original consent Decree, which provides:
 

3. Court upon entry of this Supplemental Consent Decree, the Court shall appoint Lawrence B. Pedowitz as Review Monitor to review certain operations of the MTDC as described herein.
 

4. Review Monitor. The Review Monitor Shall have the following powers, rights, and responsibilities:
 

a. Access to Information. The Review monitor shall have the power;
 

and, therefore, shall not constitute a waiver of the fund's attorney-client privilege); and
 

iii, to receive communications regarding any facts and circumstances tending to demonstrate a violation of the purposes of the Original Consent Decree or the permanent injunctive provisions or the original Consent Degree, as described in paragraph 2, above, from: (a) any officer or delegate of the 'District council; (b) the Funds' Director, Trustees or legal counsel (whose communications shall not be considered a waiver of privilege for the reasons stated above) of the Mason Tenders Trust Funds; (c) any officer of the District Council's present or future constituent local unions; (d) any administrator, trustee or legal counsel (whose communications shall not be considered a waiver 01 privilege for the reasons stated - above) of any employee benefit fund or plan affiliated with, or sponsored or administered by, a past, present or future constituent local union; or (e) any member, participant, beneficiary, agent or representative of the MTDC,
 

constituent local union of the District Council. The Review Monitor shall have the authority to require the District Council to present to him within forty'-five (45) days thereafter (i) a financial and/or legal analysis of the proposed impact of any such proposed dissolution, addition, merger or consolidation, and/or (ii) a legal and financial audit of the proposed added, merged or consolidated local union performed by counsel and attorneys determined by the Review Monitor, in his sole and unreviewable discretion, to be competent. The Review Monitor may seek an order from this court authorizing the Review Monitor to veto any such proposed dissolution, addition, merger or consolidation that; (i) ,constitutes or furthers an act of racketeering as defined in la U.S.C. S 1961; (ii) furthers or contributes to the association, directly or indirectly, of any member, employee, or agent of the MTDC with any element of organized crime; (iii) is contrary to or violates applicable laws or regulations; or (iv) is inconsistent with the purposes of the Original Consent Decree.
 

c.

Review of Certain Transactions Involving The Mason tenders Trust Funds
 

The Mason Tenders Trust Funds and/or any officer of the District Council's constituent local unions who serve as trustees of any employee benefit fund affiliated with, or sponsored or administered by a present or future constituent or affiliated local union of the District council shall advise the Review monitor at
 

consolidation or transfer of assets involving any Mason Tenders Trust Fund that: (i) constitutes or furthers an act of racketeering as defined in 18 U.S.C. § 1961; or (ii) furthers or contributes to the association, directly or indirectly, of any member, employee, or agent of the-MTDC with any element of organized crime; (iii) is contrary to or violates any applicable law or regulation; (iv) is inconsistent with the purposes of the Original Consent Decree; or (v) would have a material, adverse impact on the affected fund or plan. To the extent that the Review Monitor has similar concerns outlined in subparts (i) through (v) in the preceding sentence regarding any proposed establishment, termination or dissolution of any employee benefit fund affiliated with, or sponsored or administered by, a present or future constituent or affiliated local union of the District Council, the Review Monitor may discuss those concerns with the United States Attorneys' Office for the Southern District of New York, the Federal Bureau of Investigation and/or the United States Department of Labor.
 

d. Review of Appointments. The District Council, the Mason Tenders Trust Funds and/or any officers of the District Council's constituent local unions who serve as trustees of any employee benefit fund affiliated with, or sponsored or administered by, a present or future constituent or affiliated local union of the District

Council shall advise the Review Monitor at least thirty (30) days in advance (unless exigent circumstances necessitate a shorter notice period) of any proposed appointment of a trustee, Funds' Director or Fund Service Provider to the Mason Tenders Trust Funds or any employee benefit fund affiliated with, or sponsored or administered by a present or future constituent or affiliated local union of the District Council. The Review Monitor may seek an order from this Court authorizing the Review Monitor to veto any such proposed appointment at any Mason Tenders Trust Fund that: (i) constitutes or furthers an act of racketeering as defined in 18 U.S.C. § 1961; (ii) furthers or contributes to the association, directly or indirectly, of any member, employee, or agent of the MTDC with any element of organized crime; (Iii) is contrary to or Violates any applicable law or regulation; or (iv) is inconsistent with the purposes of the Original Consent Decree. To the extent that the Review Monitor has similar concerns outlined in subparts (i) through (iv) in the preceding sentence regarding any such proposed appointment at any employee benefit fund affiliated with, or sponsored or administered by, a present or future constituent or affiliated local union of the District Council, the Review Monitor may discuss those concerns with the United states Attorneys, Office. for the Southern District of New York, the Federal Bureau of Investigation and/or the United States Department of Labor.