PDF version of Interview

REPORT OF INTERVIEW

         

Person Interviewed:   Date of Interview:  Place of Interview:       Interviewed By:

Daniel F. Kearney Address [with Zip Code] and Telephone Number(s): April 1, 2003 and April 2, 2003 New York, NY International Auditor John R. Billi /  Inspector Thomas Limberg

Interview Topic:          Local 79 Misapplication of Funds:
_____________________________________________________________
Daniel Keeney has been a member of LIUNA on and off since 1974 and on a continuous basis since 1990. He is assigned membership number 3146768. Kearney became a member of Local 79 in 1996 when the Local was formed. Kearney was appointed Secretary/Treasurer of the Local 1996 holding this position until be resigned on March 31, 2003. Kearney stated his duties included insuring the per capita tax was paid, paying bills, and overseeing the administrative aspects of the office and day-to-day operations.

Kearney was advised that the International was investigating the possible misuse of Local 79 funds by him and others. Kearney admitted using Local 79 funds for personal purchases for him, family and friends. Kearney could not explain the motivation for his actions. Kearney agreed to review the questionable transactions and to comment

Kearney was shown the Amex card summary prepared by Panetieri, the Local's accountant (See Attachment C-4).

2002

1-800 Flowers - Kearney purchased flowers for his wedding In Las Vegas. Altitunes – purchased CD's for the office and some for personal use.

Arison Florist - personal flowers for wife and her parents and Long Bach city officials.

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A&T Garden, Island Park - Kearney would purchase pottery and other items for personal use.

Azeez Khan is a manager with PC Richard. Son and was in charge of the Local's account. Kearney paid his travel expenses to various places because of the service be provided to the Local. The Executive Board did not approve payment of any of Khan's expenses and the Executive Board did not know the Local was paying for such expenses. Kearney took it upon himself to pay for Khan's expenses.

Bally's Hotel - Kearney reserved a room for Louie LNU, a pharmacist for Surf Side Chemist, from which Kearney obtains his prescriptions using the Local's credit card Kearney led Louie to believe that he (Kearney) could get the room comp. The Local has done business with Bally's and Kearney felt he could possibly get it comp but be was unsuccessful

Bed Bath and Beyond - Kearney made personal purchases for himself and for the house.

Bertone at the Vene - Kearney purchased clothing at the store in Las Vegas for either himself or his wife.

Best Buy — Kearney made a personal purchase: however, he could not recall the item purchased

Best Western Hotel, Cobleskill, NY - Kearney stayed a this hotel while visiting in-laws who reside in the area.

Blockbuster Video, Howard Beach - Kearney purchased videos for home use.

Broward Limousines - Kearney would use this service for personal travel This was the same service the Local uses for business travel

Cafe Fratelli — Kearney would take his wife and friends to the restaurant for lunch and dinner, which were personal in nature.

Cashmans's Photographic Studio, Las Vegas - Kearney believes he purchased a camera but be could not recall exactly.

CD Travel Planners — Kearney used CD for personal travel and would charge the expenses to the union credit card

Cohen Fashion Optical — Kearney purchased prescription glasses for himself even though he has a prescription plan with the union.

CVS Drug Store - Kearney would buy items for the office, candy and other supplies and he would make personarl purchases of shaving cream, blades and toiletries,

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Disney Hilton - Kearney charged personal items to the room.

Duane Reade Drug Store - Kearney does not recall the purchase.

Eckard Drugs - Kearney made a personal purchase and could not recall it specifically but he did not make previous purchases at the store for union business. ?? XX is this right?

Excalibur, Las Vegas - Kearney traveled to Las Vegas on a personal trip,

FM Orourke Hardware Store - Kearney purchased a water pump for his home.

Flights Fantastic - Kearney probably purchased items for children of the Executive Board.

For Your Entertainment, a music store - Kearney would buy CDs for playing at union functions subsequently taking them to the office and then home. Kearney did not have Board approval.

Golden Nugget - Kearney purchased food and beverage for himself and others.

Harrah's - Kearney could not recall the purchase.

Harrow's - Kearney would purchase Christmas lights for the house. Hawaiian Isles - Kearney purchased coffee for personal use. Hilton Hotels Hawaii - Kearney does not recall the expense.

Hudson News - Kearney would purchase books, DVDs or CDs for personal use on the airplane.

lanellis Restaurant - a restaurant near his relatives where he dined with family..

IL. Fonaio - Kearney travel to Las Vegas on personal business and dined at the restaurant.

John Henry's Restaurant - Kearney dined there while on personal business.

K- Mart Hawaii - Kearney purchased bracelets for the girls in the office without Executive Board approval

Kohl's Department - Kearney purchased clothing and other items for himself and his family.

Lady Jane Craft Center - Kearney's wife makes different types of crafts and he would purchase her supplies from this store.

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Las Vegas Harley Davidson Men's and Women's Clothing — Kearney purchased clothing for his wife.

Lido Beach - Kearney purchased gifts, however, he could not remember the exact items.

Luxor Hotel — Kearney paid for the hotel rooms for the guest who attended his wedding in Las Vegas, NV.

Macy's Herald Square, Hawaii — Kearney does not recall the items purchased.

Macy's Herald Square - Bridge Diamond - Kearny went to Macy's to purchase gift certificates for the office and staff. The Bridge Diamond is a ring for wife, which was to be charged to his personal credit card.

Marshall's - Kearney would purchase clothing and personal items for himself and his family.

Michaels - Kearney would purchase craft supplies for his wife.

Mirage Hotel tickets — Kearney purchased tickets for a show while in Las Vegas for his wedding.

Monte Carlo tickets — Kearney purchased tickets for a show while in Las Vegas for his wedding.

News & Gifts - Kearney does not recall the items purchased

NU Clear Cleaners - Kearney had his puma& clothing dry-cleaned.

Oceanside Tuxedo - Kearney purchased a Tuxedo for union events. He did not obtain Executive Board approval.

Palmer's Steak House - Kearney would take Executive Board members there for lunch. He could not recall if he led them to believe he personally paid the bill.

Party City - Kearney purchased decorations for his home.

Perfume Island - Kearney purchased perfume for his wife.

Prudent Enterprises — Kearney would take his wife and friends to the restaurant.

Resort Apparel and Gift - Kearney could not recall the purchase.

San Diego Zoo - Kearney and a couple of other people went to the zoo.

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W.H. Smith — Kearney does not remember.

Whaler's General Store — Kearney does not recall.

Zany Brainy — This is a children's store and Kearney does not recall.

2001

Biddison L Tickets — Lee Biddison is an employee for the City of Long Beach, manager at City Hall and also involved with the Democratic Party. They were going to Las Vegas to attend the Convention as guests of LocaL The Load did not approve this travel and Kearney took it on his own to purchase Biddison's tickets with Local funds.

Biddison S Tickets — This should have been Steve Poker, who is Lee Biddison's boyfriend. Kearney wanted to take them to the LIUNA convention in an attempt to obtain union work in Long Beach Biddison would keep Kearney apprised of upcoming projects.

Feiler M Tickets - Maryann Feiler is Office Manger for the City of Long Beach City Hall. Kearney wanted to take them to the LIUNA convention in an attempt to obtain union work in Long Beach. Feller would keep Kearney apprised of upcoming projects.

Feiler J Tickets - John Feiler is Maryann's husband.

Kearney stated Biddison, Polcer and the Feilers did not attend the convention due to September 11, 2001.

Khan, A - Kearney was taking the PC Richard & Son salesman to the LIUNA convention because of the service he was extending to the Local.

A T Garden — Kearney would make personal purchases for the house.

Beach Cafe Kearney had lunch there on one occasion.

Beach Street Photos - Kearney believes this is personal because he did not purchase items for the Local

Burlington Coat - Kearney purchased 3 coats for himself

Cafe Fratelli — Kearney was running for election to City Council and other Local 79 Business Agents and other union members assisted hat in the election campaign. Kearney took them to lunch. Kearney took the Business Managers and BA's after he won the election.

Coconuts — Kearney purchased videos and CD's and gave them away to various

individuals.

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Carrol M - Mike Carroll is a labor attorney attempting to open doors with various politicians.

Camerota E – Eugene Camerota is the Democratic Party leader for Long Beach and again attempting to open political doors for union.

Kahn - Kearney purchased tickets fox the PC Richard & Son salesman for the retiree functions.

For Your Entertainment   — Kearney believes the purchases were for CD's and DVD's for personal use.

Golden Gram - Kenney don not recall this purchase.

Harriman's Motor Inn - Kearney took a personal trip

Harrow's — Kearney purchased decorations for his home.

Home Depot - Kearney would make personal purchases for the home.

International Shoppe - Kearney does not recall.

Kohl's Department Store — Kearney purchased clothing for himself and his family.

Long Beach Craft - Kearney purchased crafts supplies for wife.

Long Beach Surgical — Kearney purchased a breathing machine for himself because he has Emphysema

Marisa's Jewelry — Kerry purchased a watch and bracelet as going away gift-

Marshall's - Kearney purchased clothing items for himself.

Monie's Steakhouse - Kearney took his wife and some friends to dinner.

Nemo's Army Navy Store - Kerrey purchased clothing from this store.

NU Clear Cleaners - Kearney paid for dry cleaning of his clothes.

Outback — Kearney took wife out to dinner.

Palmer's Steakhouse - Kearney took wife and friends out to dinner.

Perfume Island – Kearney purchased perfume for his wife.

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Pergament — Kenney would make both personal and union business purchases with the union credit card.

Quint's — Kay does not recall

Radio Shack - Kearney would make personal purchases using the credit card.

Sea Breeze Jewelers — This is both a jewelry and novelty store. Kearney would buy decorative signs for the house.

Shades of Vision - Kearney purchased prescription glasses for himself.

Stardust Logo Shop - Kearney does not recall

Target —Kearney purchased housewares for the home.

The Saloon — Kearney took some friends for lunch.

The Whales Take — Kearney took friends for lunch.

TKOPS - Kearney took city of Long Beach employees and City council members

Today's Man Kearney purchased clothing for himself

USPS — Kearney purchased commemorative stamps.

WM Supercenter in Cobleskill - Kearney purchased houseware items for his trailer.

Zany Brainy — Kearney purchased a gift for someone.

2000

A & T Garden Center- Kearney would purchase plants and supplies for his home.

Blockbuster Video - Kearney purchased videos for his home.

Burlington Coats -- Kearney purchased a coat for himself

Coconuts - Kearney purchased DVD's & CD's.

Dress Barn — Kearney purchased a dress for his wife.

Foto Sound — Kearney believed the purchase might have been a CD player.

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Gap - Kearney purchased clothing for himself.

Genovese Drugs — Kearney cannot recall what he purchased.

Holiday Inn -- Kearney was going to attend Mike Pagano. Jr.'s wedding and stopped for lunch.

Home Depot — Kearney purchase personal items

House of Beads - Kearney purchased T-shirts.

International Electronic Center — Kearney could not recall.

Jones Beach State Park - Kearney purchased beach passes for his wife and himself.

K- Mart - Kearney does not recall what he purchased. He did not make purchases for the union-

Kohl's Department Store - Kearney bought clothing for him and wife.

Landau Costume Jewelry - Kearney purchased gifts for his wife.

Long Beach Crafts — Kearney purchased craft supplies for his wife.

Marshall's - Kearney purchased clothing and housewares for himself and wife.

Matt Greetings - Kearney purchased Christmas cards.

Melody Records — Kearney does not recall

Minnesota's — Kearney took friends for lunch.

Odd Job Trading - Kearney purchased closed out items.

Old Navy — Kearney purchased clothing for himself.

Pergament — Kearney made personal purchases as well as union purchases. He, however, did not maintain the receipts and the purchases were charged against him.

Prudente's Restaurant — Kearney took friends and family. Kearney's brother died and he took relatives and friends to dinner.

Radio Shack - Kearney made personal purchases.

S & R Perfume - Kearney purchased perfume for his wife.

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Sam Goody - Kearney purchased CD's.

Sea Breeze Jewelers -Kearney purchased gifts for his wife.

Supercenter – Kearney purchased various items.

The Dee's Florist - Kearney stated this is a garden center and purchased items for the house.

The Whale's Tale - Kearney bought himself lunch.

Ticket Master - Kearney bought tickets for friends and family to a Christmas show.

Today's Man - Kearney purchased clothing for himself.

USPS — Kearney purchased commemorative items such as stamps.
Supercenter - Kearney purchased home items.

Kearney advised all credit card purchases discussed for 2000 thru 2002 were made without the knowledge or approval of the Executive Board.

Kearney stated he was the only one who had an American Express. If an item needed to he purchased in the office, Lorraine Perry or Keira Cohen would use his credit card number to make the purchase. Some of these purchases would be airline tickets, hotel reservations for union travel, cell phone etc. Both Lorraine and Keira would obtain permission from him to use the American Express.

Kearney stated he, Joe Speziale, Frank Noviello, Keith Loscalzo, Anthony Cefalo. Lorraine Petty. and Kenneth Brancaccio had HSBC credit cards. Perry and Cohen also had access to his audit and

PC RICHARD AND SONS

Kearney stated when the Local was formed the office needed to be equipped and purchased some items from PC Richard and Son because they were near the Local and accessible. It was at this point that he met Azeez Khan, a salesman for the store, and they developed a relationship. Khan treated him very well and was responsive to the Local's needs. Kearney did not receive any money or gifts from either Khan or PC Richard and Sons.

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Kearney stated when the misappropriation of Local 79 funds came to light. Kearney sat down with the accountants from Panetieri's office in an attempt to correlate the purchases with a union event. He took responsibility for items they could not correlate with a function.

Kearney stated he purchased TVs for Frank Noviello, Nick Albanese - Auditor with the Local, Kenny Brancaccio, Richard Weiss, Anthony Silveri, and Richard Ello. Kearney stated be gave these individuals the TV's as gifts from him. Normally he would have a conversation with someone and the topic of TV's would come up. Individuals wanted to see if Kearney could get them a deal in that they were aware that Kearney had a contact at PC Richard and Son. Kearney stated he would go out and buy the TV's for these individuals and not seek payment giving them the impre^ssion that he was personally paying for the TV's. Kearney could not explain why he did this These individuals offered to pay but be declined.

Kearney stated he bought the Biddison's a TV as a gift. Lee Biddison had just completed remodeling her home and she had helped him on his campaign for Long Beach councilman

Kearney stated all the computers he purchased were for the office. Kearney stated someone would come up to him and state that they needed computer and he would purchase a computer. Kearney stated he held the same position with District Council and he would purchase laptops for District Council purchased with Local 79 credit cards. Kearney stated he recalled giving Noviello a computer for business use but he does not recall the manufacturer. Kearney does not recall giving Victor Rizzo a computer. Kearney recalls Rizzo's computer being seized by the police in connection with an investigation.

Kearney gave out video game players, such as X box and Nintendo, to various individuals: Kenny Brancaccio, Richard Ello, Anthony Silver, Richard Weiss, George Gonzales, Nick Albanese, and Bobby Bonnaza. These individuals were under the impression that the gifts were from him personally. Again. in most cases, be would be approached by individuals asking for him to get a price for these items and he would purchase and give it to them.

The union started to become involved with Make a Wish Foundation sponsoring fundraisers by donating TV's to be raffled. Kearney could not recall raffling video games. The Local donated TVs, Stereos, mini stereo systems, walkmans and other items to Make a Wish. This was dons with Executive Board knowledge but Kearney does not know if this was formally approved.

Kearney would buy electronics for the membership Christmas Parties and Retiree^'s Parties with Executive Board approvaL Kearney stated it was left to his discretion as what to buy for the parties. Kenney would tell the Board the approximate cost and he would tell the

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Board he would like to spend a few thousand dollars more because of the response at previous parties and they would agreed.

2002 (See Attachment D)

#1 Kearney stated he purchased video games and gave them to children of Executive Board members, Kenny Brancaccio, Anthony Silveri, Richard Ello Richard Weiss, Bobby Bonnazza, St Varten's church staff and clerical employees, and George Gonzales, the office porter. This occurred over the years and none of the games were for his personal use.

#2 Kearney took responsibility for this purchase because it could not be correlated to an event.

#5/#6 Kearney gave out video games to various individuals.

#10 Kearney bought this TV for Frank Noviello who believed it was personally paid for by Kearney.

#15 Kearney purchased this TV for Richard Ello. Ello asked Kearney to get a price for the TV and VCR and Kearney bought the items for him. Kearney was told that Ello denied receiving the TV and VCR. Kearney advised that he paid for the TV giving the store Ello's name end address. Kearney even recalls Ello wanting to pay for the TV. There is a delivery charge on the bill

#16 Kearney stated he was talking with Lee Biddison who stated she was looking for a TV providing Kearney with the size of the of TV. When she received the TV, she offered to pay him for the TV but be told her it was a present

#Z2 Kenney stated he bought video games to give away.

#27 Kearney was approached by Ello to obtain a price on a gas grill and Kenney went out and purchased the grill for Ello. The grill was delivered because there is a service charge. Ello offered to pay for the grill but Kearney told Ello it was on him. It is noted Ello's phone number is on the invoice.

#33 Kearney recalled purchasing a RAC system for himself using the union credit card.

#34 Kearney recalled purchasing 2 DVD players for each TV.

#37 Kearney recalled purchasing the MP3 player and he gave it to someone at the office.

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#40 Kearney initially contested the microwave oven because he purchased a microwave oven for the local, and the cordless phones were his, which is why the accountant lumped in the oven.

#49 Kenney purchased a digital camera for his own use.

#51 Kearney purchased video games giving them out to the children of members of the Local. Kearney stated the car stereo and speakers was for Nick Albanese.

#53 Kearney purchased these as gifts for friends.

#54 Kearney does not recall the purchase

#55 Kearney purchased a TV for Anthony Silveri on 12/15/2002. Silveri believed Kearney personally paid for the TV.

#56 Kearney purchased video games on 12/15/2002. Kearney had two separate receipts
because one of the items was for Silveri.

#57 Kearney does not recall who got the items.
#58 Kearney gave out the games to the children of members.

#59 $21,1000

Silveri was remodeling his home and it was approaching summer time of 2002. Kearney was asked to get some prices far the appliances, which he did. Silveri asked Kearney to place the order and Kearney did so without providing a down payment When Kearney approached Khan, he told Khan that the appliances were for Silveri. The appliances were ordered and delivered to Silveri's home.

After the appliances were delivered, Kahn called Kearney and asked when be was going to get paid. Kearney called Silveri asking him when he was going to pay Khan. Silveri said he would take care of it but was waiting on the bill. The Local received the bill and was going to give it to Silveri. Khan was calling again saying the bill was $21,000. Khan stated be had to make certain that PC Richard and Son was going to get paid. Kearney told Khan not to worry. Kearney called Silveri a couple of times and Silveri stated he would take care of it.

Silveri also approached Kearney about purchasing a truck that was coming off lease from the training center. Franklin Ford had the lease and Silveri wanted Kearney to make arrangements to have the dealership hold the truck until February.

At this point, the dealership was asking when Silveri was going to get the truck and Khan was calling him regarding the appliances. With everyone calling him, Kearney made the

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assumption that Silveri had gotten jammed up. Kearney decided to pay the PC Richard and Son bill because if Silveri did not pay in a timely manner, it would jeopardize Khan's position. Kearney explained Khan had told him he could lose his job. Kearney told Khan to give him a document listing electronic items to cover the $21,100 amount and the union would pay the bill and get the money from Silveri (See Attachment B).

Kearney stated 4 or 5 days after be cut the check to PC Richard (December 23, 2002), he contacted Silveri stating the union paid for the appliances and Silveri stated he would have paid the bill directly to PC Richard and Son. Kearney told Silveri to pay the Local Kearney did not ask Silveri for the check right away because it was around Christmas and be lost track of the time. Kearney did not know how he was going to reflect the repayment for the appliances in the union books

Kearney went to Angela Harris and gave her the document listing various items totaling $21,100 and asked her to cut the check. Kearney would normally go to Lorraine to have the check cut but she was on vacation. Harris cut the check and be signed the check as well as signing Noviello's name.

Kearney was shown a copy of Local 79 check #22197 dated 12/23/2002 payable to PC Richard & Son for $21,I00. Kearney stated both his signature and that of Noviello were written by him. (See attachment H). Kearney stated Noviello was not aware of this check nor was any other member of the Executive Board.

Kearney stated he would sign Noviello's name to check, when Noviello was not available. Kearney would call Noviello's and ask if he could sign Noviello's name and Noviello would ask what the expense was which Kearney would tell him. Noviello then would give Kearney permission to sign his name.

Kearney stated it was common knowledge among Executive Board members that Kearney would sign Noviello's name to some of the checks. Cefalo and Brancaccio were present on occasions when he signed Noviello's name. This has been occurring for a couple of years.

Kearney approached John Smisek, at Franklin Square to hold the truck-coming off lease from the Training fund for Silveri. Smisek started to question Kearney as to when Silveri was going to pick up the truck and he told Smisek to call Silveri. Kearney does not recall giving Smisek the impression that the Local was going to buy the truck nor were any union funds used in the purchase of the truck.

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2001
(Attachment E)
#3 Kearney stated the video game and discman were for personal use.

#6 Kearney purchased the cordless phone as a Christmas present for someone, name unrecalled.

#9 Kearney purchased these items to give out as presents.
#12 Kearney purchased two game players and video games to give out; however, he believes the palm pilots were for office use because be did not give this type of item out as a gift.

#16 Kearney purchased 2-way radios to be given out.

#19 Kearney purchased video games to be given out Kearney purchased radar detectors for George Gonzolas and Joe Speilize.

#28 Kearney purchased game players to be given out.

#34 Kearney purchased the game player and games to be given out.

#41 Kearney purchased the game player and video games to be given out

#47 Kearney purchased the video games and video players to be given out.

#48 Kearney purchased a CD portable unit for his own use.

#49 Kearney purchased game players and video games to be given out

#50 Kearney purchased game players and video games to be given out.

Kearney was advised that receipts #49 and #50 revealed a total purchase of approximately $5,000 worth of video games and video players over a two-day period of time. Kearney stated people would come to him and ask about buying many of these items through PC Richard and Son believing that be could get them a good price. Kearney would buy the items with union money and gave the items to the individuals as presents.

2000
(See Attachment F)

#9 Kearney purchased the DVD players to be given out as gifts.

#10 Kearney purchased the DVD player to be given out as a gift.

#I 1 Kearney purchased the headphones and discman for himself

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#14 Kearney purchased the cordless phone for a gift.
018 Kearney purchased a cordless phone for himself to take to his trailer. Kearney knows this because this is the time be went on vacation.
031 Keeney purchased the CD portable for a present.

Kearney never received cash for any items he gave out. Kearney would ask the salesman at the store what the hot or desirable games or game player were.

Kearney stated all the computers purchased from PC Richard and Son from 2000 to 2002 went to Local 79 staff or affiliates, District Council and possibly LECET. Kearney does not know why 15 computers purchased cannot be located.

Kearney was questioned regarding the Gateway computer given to Victor Rizzo in March 2000. Kearney stated he has no knowledge of Rizzo being given a computer.

GRATUITIES (See Attachment H)

Keeney stared when the Local was having a function he would have a check cut for gratuities that he cashed. Although Kearney received over $35,000 in cash gratuities, the money was spent and he did not keep any for himself

Kearney would pay various individuals to cater at membership functions Kearney explained that at some retiree parties where there was a buffet, the waiters and waitress would bring the food to the retirees who were unable to get the food themselves.

Kearney would give gratuities to individuals who cleaned up after events at which members were excessively careless with trash.

Kearney would tip the individuals at St. Varten's Church where the Local held membership meetings. The church would cancel scheduled events to accommodate the LocaL

Kearney did not maintain records indicating the time or place of gratuities. However, at the accountant's office, Kearney attempted to reconstruct the gratuities and he prepared new vouchers. Kearney denied keeping any of the money for his personal use.

DONATIONS (See Attachment L)

Kearney stated many of the donations made in 2002 were made without formal approval Kearney explained to expedite the donation process, he would make donations to the organizations to which the Local had donated in the past.

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Kearney was advised the Local made donations to various Long Beach, NY organizations without approval and that no prior donations had been made to these organizations. Kearney stated he made the donations to make himself look better in the community. Kearny was asked if he believed the Executive Board would approved the donations to Long Beach and Kearney stated be did not know. Kearney was asked why he did not go through the PAC Fund for the $5,000 donation to the Long Beach Democratic Chairman's Club. Kearney stated by going through the Local, it expedited the process. Also, Kearney enhanced his position within the Long Beach Democratic Party.

Kearney was asked about the $2,000 donation to Patrica Cefalo, wife of Andy Cefalo. Kearney believed he received a letter for the donation and he just cut the check

Kearney advised the Local received letters for all donations and he believed some were mentioned at the Executive Board. However, some of the letters came in near the due date so he just cut a check.

Kearney was asked if the Long Beach Democratic Chairman's Club was involved in his campaign and Kearny stated yes. The Club runs the campaign of Democratic members including his. Kearney admitted the money given to the Club would be used to assist his campaign: however, he stated he did not realize his campaign would have benefited by the entire $5,000 donation.

FLOWERS (See Attachment K )

Liere Cohen received flowers because she assisted in the office and lived in Long Beach James Hennessy assisted Kearney in his campaign for councilman.

Thomas Sorfield assisted Kearney is his campaign for councilman
Deborah Fournier assisted Kearney in his campaign for councilman

Kearney stated all the individuals on t h e list from Hennessy to Leonard Remo assisted Kearney in his campaign except for Catherine Harris

Dr. Todd Bragin is Kearney's eye doctor.
Paul Goodman is in charge of Long Beach housing authority.

Frank, Bob, Chicky and staff are car service individuals who picked them up at the airport Gladys Dejeuse is a neighbor whose son was killed in a car accident.

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Connolly's Audit Report
(see Attachment M)

Kearney recalled Connolly's report and the Findings, Kearney stated he read the finding to the Executive Board and did not gloss over the findings. Kearney was asked if he read all the findings to the Executive Board, why didn't anyone ask him who was not turning in their American Express receipts especially in light of the fact that Kearney was known to insure that employees were required to turn in their receipts.
Kearney was also asked who had American Express Cards and Kearney said only he had a card. Kearney was than asked if he was the only one who had an American Express Card, why didn't the Board know that it was him who was not turning in receipts and why didn't the Board ask him about it. Keeney stated he does not know.

Kearney was advised that it would seem logical that he would conceal this finding from the Board because it directly pertained to him and may have exposed his unauthorized purchases at which time Kearney reiterated that he read all the findings to the Board.

Kearney stated it became a habit when be signed the President's name to Local 79 checks.

Kearney was asked why he used the credit card for personal use. Kearney stated he does not know in that he did not have cash problems or financial problems. Kearney just got stupid in purchasing items at department stores like Kohl's, Marshall's, the Gap, and jewelry stores for his personal use. Kearney stated it was partly ego, him being a big shot giving out gifts to different individuals. Kearney also liked people outside the union to believe he was an influential person within a major labor organization.

Kearney stated be does not have a drug or gambling addiction nor does he have a girlfriend on the side. Kearney reiterated he did not sell the items purchased and that he just gave them away. Kearney stated no one else was aware he was making personal purchases with the union card credit .

Kearney stated Lorraine Perry, Assistant to the Secretary/Treasurer, saw Connolly's report and she would ask him for receipts. Kearney would tell her that he would get them for her and Perry would hound him for the receipts.

Kearney stated initially Petty would cut all the checks; however, he started using others in the office to cut checks because the office grew. Kearney was asked if Petty reviewed the American Express statements indicating purchases at department stores and Kearney said she had. Kearney stated Perry asked him about the purchases and he told her he would take care of it.

Kearney was questioned regarding the overtime given to Perry and he stated she would work hard, long hours and take work home. Perry would come up to him and tell him that some of the staff worked overtime and he would tell her on occasion to give herself the same amount of hours. Perry did not provide any documentation regarding the

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overtime and the hours he gave her were arbitrary in nature. Kearney never threatened her job if she went to the Executive Board

Kearney gave Perry, Kiera Cohen and Kathy Harris a 3% raise without Board approval because he had been bypassing the Board on many issues. However, someone found out about the raises. Loscalzo also found out about the raises and took them back

Keith started to look at the issue of overtime and Keith wanted to reduce the overtime. The reason they wanted to reduce overtime was because the check off dues were falling and they wanted to control payroll. Kearney was asked if the donations or giveaways, computers, purchases, etc. also were reduced and Kearney stated no.

Kearney advised that the local's accountant stated he used $149,330.12 of Local 79 funds for personal purchases. Kearney stated he has refinanced his home and had repaid Local 79 the money (See Attachment C).

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