March 2, 2004 --
The former vice president of a powerful elevator workers
union is going down, after a federal jury yesterday
found him guilty of lining his pockets through an
elaborate labor-racketeering scheme.
Charles Novak, 67, faces up to 20 years in prison for
racketeering, money laundering and conspiracy to take
unlawful labor payments. Jurors could decide as soon as
today whether he must also fork over $1.5 million.
His longtime pal Anthony DeGennaro, a former
representative for Local 1 of the International Union of
Elevator Constructors, cut a deal with the feds and
fingered Novak for orchestrating a massive phantom-job
scheme that prosecutors say raked in over $5 million in
12 years.
Contractors at several construction projects -
including a Marriott hotel, Memorial Sloan-Kettering
Cancer Center facilities and the MetLife building - were
regularly billed for hours that laborers never worked.
Portions of the padded paychecks went toward lining
the pockets of Novak and other union officials and
supplied contractors with kickbacks.
Meanwhile, idle elevator operators were known to
perform free home-improvement work and chauffeur service
for Novak when they should have been at job sites.
DeGennaro testified that each Christmas, he delivered
holiday cards stuffed with thousands of dollars to Novak
and former union president John Green.
Jurors rejected an argument by defense lawyer Joseph
Corozzo that Novak was "a very proud union man" wrongly
pursued by prosecutors because "the government doesn't
like unions."
Since February 2002, more than 30 officials and
members in Local 1 have been indicted for no-show job
schemes at more than 20 construction sites around the
city - including a multimillion-dollar swindle at the
MTA's new headquarters at 2 Broadway.
Green has not been charged.
The Local's suspected Mafia ties have also been the subject
of a federal probe.