| |
U. S.
Department of Justice
United States
Attorney |
| ____________________________________________________________________________ | |
| Scott R
Lassar United States Attorney |
Dirksen Federal
Building 219 South Dearborn Street, Fifth Floor Chicago, Illinois 60604 (312) 353-5300 |
|
FOR IMMEDIATE
RELEASE
|
PRESS CONTACTS: |
CONSENT
DECREE ALLOWS FEDERAL COURT TO SUPERVISE PURGE OF
ORGANIZED CRIME
FROM 19,000 (SIC 14,500)
MEMBER CHICAGO LABORERS' COUNCIL
CHICAGO -- A consent decree providing for federal court supervision of ongoing efforts to end the influence of organized crime in the affairs of the 19,000-mernber Chicago Laborer's District Council was filed today, settling a civil racketeering lawsuit against the CLDC, the Justice Department and the Laborers' International Union of North America (LIUNA) announced. The agreement represents an unprecedented cooperative effort between the government, one of the nation's largest labor unions and one of the union's largest local governing bodies in working together to preserve the progress that has already been made to purge organized crime influence from the union, said Scott R. Lassar, United States Attorney for the Northern District of Illinois. Delegates representing the 21 local affiliates of the CLDC voted overwhelmingly yesterday to approve the consent decree.
The case, in which the United States and LIUNA's General Executive Board Attorney are co-plaintiffs, is the first time here that court supervision is being obtained in the Justice Department's four-year-old effort to rid LIUNA of the influence of organized crime. Since 1995, the Justice Department has been overseeing internal efforts by LIUNA to rid itself of organized crime influence
and the government continues to hold in abeyance filing a signed consent decree that would have court-appointed officers responsible for reforming the international union. LIUNA has accomplished substantial progress, according to the consent decree, but the government and LIUNA agreed that La Cosa Nostra "influence of the CLDC presents special problems associated with endemic, longterm corruption that requires additional measures," which include the court appointment of officers with expanded powers to assure that the council and its $1.5 billion employee benefit funds are operated democratically and free of corruption.
According to the civil racketeering complaint filed yesterday and unseated today, the CLDC, which consists of 21 local unions affiliated with LIUNA and has approximately 19,000 members in northeast Illinois, "has been infiltrated by corrupt individuals and organized crime figures who have exploited their control and influence over the district council for personal gain." In February 1998, the CLDC, located at 6121 West Diversey Ave., Chicago, was placed into trusteeship by LIUNA as a result of the internal reform process.
LIUNA which claims over 800,000 members and over 600 locals, is one of the nation's 10 largest labor unions. Law enforcement efforts have been focused on Chicago because organized crime in Chicago has traditionally controlled the international leadership of the Laborers. Among the trades LIUNA represents are masons' helpers, general construction laborers, municipal workers, highway construction laborers, pipeline laborers, excavators, watchmen, asbestos removers, pavers and stone cutters.
"The trusteeship has made substantial progress in removing the influence of organized crime over the district council and the consent decree will ensure that organized crime is prevented from reasserting its influence in the future when an election is held to select officers by secret ballot in a 2
free, democratic process," Mr. Lassar said. "The CDC delegates deserve credit for choosing to join in the consent decree. Their action is unprecedented and shows their commitment to democratic practices," Mr. Lassar added.
Mr. Lassar announced the consent decree with Robert D. Luskin, LIUNA's General Executive Board Attorney, who is responsible for spearheading the union's internal reform; Robert Bloch, the CLDC trustee and a Chicago labor lawyer, Kathleen McChesney, Special Agent-in-Charge of the Chicago Field Division of the Federal Bureau of Investigation; and J.D. Nichols, Regional Inspector General for Investigations of the U.S. Department of Labor, Office of Inspector General.
The decree calls for the court appointment of three officers for at least two-year terms: a monitor, an adjudications officer, and a trustee/supervisor. The monitor will investigate and prosecute charges to remove organized crime members and associates from having any influence in the affairs of the CLDC and its affiliates. The adjudications officer will conduct hearings and decide the cases brought by the monitor as well as appeals from any elections issues that arise. The trustee/supervisor will administer daily operations of the CLDC, as well as conduct elections sometime between six and 12 months after the decree is approved by a federal judge. After the election, the trustee will have his title changed to supervisor and he will supervise the actions of the elected officials. The monitor and the adjudication officer have not yet been named, but Mr. Lassar and Mr. Luskin announced that they will petition the court to name Mr. Bloch the trustee/supervisor.
Since taking office, Mr. Bloch has removed all former CLDC officers, worked closely with the local union affiliates to institute reform policies, and, for the first time with the direct participation of all of the locals, negotiated a three-year labor contract for the 21 constituent locals. Under the consent decree, the monitor would possess subpoena power and be empowered to receive
3
confidential law enforcement information that is essential to accomplishing effective reform. In addition, the trusteeship is presumed valid for only 18 months, which has now passed, and "the pervasive nature of the corruption which had existed over the decades will take far longer to address," according to the complaint.
The trusteeship was imposed after a three-week hearing in 1997 in which the General Executive Board Attorney proved extensive involvement of local organized crime in the council's affairs. The complaint is based on much of the evidence that was presented in that hearing, The consent decree adopts LIUNA's ethical practices code and internal disciplinary procedure as the foundation for its basic framework. It contemplates that in many cases, LIUNA's GEB attorney and inspector general will investigate and prosecute cases under the decree.
4
The complaint describes the role of 21 Outfit members or associates in the affairs of LIUNA and the CLDC, including the four individuals who held CLDC offices at the time the trusteeship took effect: John "Pudgy" Matassa, Jr., vice president; Bruno Caruso, president; Joseph A. Lombardo, Jr., secretary-treasurer; and Leo Caruso, a cousin of Bruno Caruso who was sergeant-at-arms. The complaint alleges that rights of rank and file union members were subverted, democratic processes were ignored and charges or organized crime control were left uninvestigated as a result of the sustained pattern of organized crime influence and control over the governing body of LIUNA in the Chicago area.As a result of the union's internal reform program, the union has adopted an ethics and disciplinary code, has instituted reforms in the manner it assigns members to work, and has changed its contracting procedures. The union has placed entities in Chicago, Buffalo and New York City
5
6
Scanned by Laborers for JUSTICE as a public service to LIUNA members and the public
Laborers for
JUSTICE© 1997-2006 All Rights reserved. Not for republication on the
internet without permission.
Jim McGough, Director
6304 N Francisco Av.
Chicago, Il 60659
773-878-1002 (tel)
773-409-1503 (eFax number)
laborers@comcast.net