In a detailed ruling on the charges against Fosco, Peter Vaira,
the hearing officer, wrote that it "is disturbing that such
practices still exist."
Vaira, a former head of the government's organized crime task
force in Chicago, added it was "even more disturbing" that Fosco
holds such a high ranking position within the 450,000- member union.
Fosco is a member of the union's executive board.
Besides barring Fosco from the union that his Chicago-based
family led for years, Vaira ordered Fosco to pay $80,286 to several
union organizations that had kept him on their payrolls for several
years for no-show jobs.
In addition, Vaira said union officials should determine whether
Fosco is entitled to the pension credits he received for the no-show
positions.
As a regional director based in New Orleans, Fosco allegedly
required his staff to make monthly payments ranging from $25 to $50
in person to him -- and in cash -- for office parties.
But Vaira said there were no records of how Fosco spent the
money.
Fosco also regularly told union officials to give him expensive
Christmas gifts. Both Fosco and the union officials knew, Vaira
wrote, that gifts such as a $2,100, big-screen television were
"exorbitant."
Fosco's salary from the union as a regional manager and vice
president was $165,000 in 1997, Vaira noted.
The main thrust of Fosco's alleged scheme, Vaira wrote,
citing investigative reports and testimony from hearings held by
his office, was adding at least two more Laborers' pensions to one
he already received as a regional manager.
Fosco started out as a member of the union's Local 2 in Chicago
in 1966 and held a number of union jobs until his late father,
Angelo Fosco, named him to the New Orleans-based position in 1987.
At Fosco's request, he was listed as a consultant for the union's
District Councils in Kentucky and Louisiana and with Local 692 in
Baton Rouge, La., Vaira wrote.
He did no work for the jobs, but received more than $53,000 for
the positions between 1990 and 1994, Vaira said.
Angelo Fosco died in 1993 and was replaced at the union's helm by
Arthur Coia, who in 1994 ordered Fosco to stop taking any salary
from the organizations as a consultant.
Fosco found a new way, however, to continue receiving money from
one group, according to Vaira. He had the Kentucky District Council
name him as a part-time sergeant-at-arms and pay him $5,988 a year
for the previously unpaid position.
He had received $6,000 a year from the council as a consultant.
By lowering his salary to just below $6,000, the level required to
file salary reports with the union, Vaira said, Fosco hoped to avoid
union detection for the sergeant-at-arms job.
Neither Fosco nor his attorney in New Orleans could be reached.
Fosco has the right to appeal the decision within 10 days to a union
appellate officer. Vaira issued his ruling last Friday.
After several years of investigation, the U.S. Justice Department
in 1995 reached an agreement with the union to carry out its own
cleanup. But the government reserved the option to step in if the
reform effort failed.
The reform was supposed to end in 1998, but it has since been
extended to January.
Jim McGough,
the Chicago-based spokesperson for Laborers for Justice, a
small but growing dissident- reform group, said the allegations about Fosco "are
typical. They are not anything unusual. Hopefully, the union will
publicize it, and members will find out what's going on."