Teamsters' Internal
Fighting A Battle For The Union's Soul
By Robert A. Jordan, Globe Columnist
Sept. 14, 1997
Perhaps the most interesting document these days regarding organized labor is the Quindel Report, named after the federal election officer who nullified the 1996 reelection
of Ron Carey as president of the Teamsters union, and ordered a new election.
The report, written by Barbara Zack Quindel,
involves allegations of a money-laundering scheme in the Carey campaign, which eventually
resulted in the call for the new voting.
But there is also a local angle.
Much of the report involves people and companies in Massachusetts that
were key in Quindel's decision. And now the call for a second election, which is under
review, may lead to more woes for Carey.
Quindel has asked that a hearing on her ruling,
scheduled for tomorrow morning, be postponed in light of new information that may
determine whether Carey should be allowed to run at all.
If Carey is barred from running
again, that may not be the end of his problems, either. A grand jury investigation in
Washington is ongoing.
A group of people and a Somerville
telemarketing company called Share Group have already been stung by the Quindel report
because of their alleged involvement in the financial schemes that resulted in Quindel's
voiding the election.
Quindel writes in her report,
''As the facts show, there were several schemes involved in the Carey campaign's
fund-raising.'' She wrote that one involved ''contributions by spouses of Share Group
executives.'' The contributions included $1,250 from Barbara Arnold, the wife of Michael
Ansara, a former chief executive officer of Share Group. Ansara, who has
since stepped down, has already pleaded guilty to money-laundering charges and said he
would cooperate with the investigation.
In addition, Wendy Grossman, the wife of Evan
Grossman, then-president of Share Group, contributed $1,000. And Susan Centofoni, wife of
George Bachrach, then-vice president of Share Group and later acting CEO, contributed
$250. These and other such contributions ''were prohibited because they
were the direct result of employer solicitations.''
Although Ansara used the name
Share Consulting, Quindel said that was'' just a name for his personal outside consulting
work.'' Despite efforts by some in the Share Group to separate Ansara's Share Consulting
from Share Group in the investigation, Quindel lumped them together in her ruling
The report said that Ansara, ''a
key planner of the various schemes to funnel prohibited contributions into the Carey
campaign,'' had used his companies to pay fraudulent invoices and transfer funds.
''Accordingly,'' her report
continues, ''Mr. Ansara individually and his companies, Share Group and Share Consulting,
are hereby barred from any further participation of any kind in the 1996 IBT
[International Brotherhood of Teamsters] International officer election. '' Further, they
are barred ''from any further work on behalf of the IBT or any IBT affiliate.''
These bars, the report goes on, apply not only to
Ansara, Share Group, and Share Consulting ''but to any corporation, partnership, other
entity or person in which Mr. Ansara has or will have any ownership interest or which will
make any payment of any kind, directly or indirectly, to Mr. Ansara, Share Group or Share
Consulting for any IBT-related work.'' The ruling also said that their
right to conduct any IBT business in the future will be restored only after six years
''for good cause shown.''
''Finally,'' the report said, ''a substantial fine
is necessary to remedy the misconduct of Mr. Ansara.
While he eventually cooperated with the election officer and the US attorney in the
investigation, his central role in the original scheme justifies further action.''
With that, Quindel jointly ordered Ansara, Share
Group, and Share Consulting ''to pay a fine of $126,425 to an escrow
account established by the election officer for this purpose to help defray the costs of
are run election.''
Since the federal monitoring of
the Teamsters election cost as much as $22 million, some observers estimate the next
election would cost that, if not more.
Reports are circulating that if Carey is barred
from running again, a state Teamsters official and Carey supporter, George Cashman, who is
president of Teamsters Local 25 in Charlestown, may run against James Hoffa Jr
Even as the investigation into the 1996 campaign
continues, the Teamsters under Carey called for a Massachusetts local to be placed under
IBT trusteeship for alleged mismanagement. Allegations were circulating
that a majority of the local supported Hoffa in the 1996 election, suggesting this was the
reason for Carey's move against the local.
While the presidency of the Teamsters is at stake,
the ongoing investigation suggests that the future of the Teamsters union itself maybe on
the line. The Teamsters' future may be determined by the outcome of the intensifying internal political battle for its very soul.
Copyright 1997 Globe
Newspaper Company.