Chicago Tribune
LABORERS UNION WORKS WITH FEDS TO SHED MOB TIES
By Matt O'Connor
8-13-99
A civil racketeering lawsuit unsealed by federal authorities
Thursday alleges the Laborers Union's Chicago District Council has been dominated for
three decades by the Chicago Outfit and lists a veritable who's who of mobsters--Tony Accardo, Joey Aiuppa and Joey Lombardo Sr. among them--who corrupted the union.
The filing lays out in unusual detail the roles played by nearly two dozen organized crime members, their associates and close relatives who served as officers of the district council or who supervised some of the union's $1.5 billion in pension and benefit funds. The council is an umbrella group of 21 Chicago-area laborers locals, with members ranging from construction workers to stonecutters to asbestos
Among the revelations was an allegation that Fred Roti, a former
Chicago alderman who was convicted of racketeering and extortion in 1993, is a
full-fledged member of the mob.
On the same day the lawsuit was publicly unveiled, union and
government officials disclosed they have agreed to settle it under a consent decree that
calls for the appointment of a court-approved monitor with expanded powers to continue the
effort to rid the organization of mob influence. A federal judge must still approve the
arrangement.
U.S. Atty. Scott Lassar called the agreement an unprecedented
cooperative effort between the government and one of the nation's largest unions.
Delegates representing the 21 locals and 19,000 members in the
Chicago district council voted by a 3-to-1 ratio Wednesday to approve the consent decree,
joining the Laborers' International Union of North America and the Justice Department in
the mob-busting efforts, Lassar said.
Robert Bloch, trustee of the district council and a Chicago labor
lawyer, applauded the vote and said it showed the district council's "commitment to
democratic practices."
The announcement came in a conference room in the Dirksen Federal
Courthouse in the midst of an electrical power shutdown. As a result of the union's
long-term, endemic mob influence, officials said the rights of rank-and-file union members
were subverted, democratic practices were ignored and charges of organized crime control
went uninvestigated.
Since 1995, the Justice Department has been overseeing internal
efforts by the international union to ferret out mob power. A year and a half ago, as part
of that effort, the international took over control of the district council. But under
federal law, that trusteeship could have faced a legal challenge. To avoid a possible
legal morass, government and union officials agreed to the consent decree to extend the
trusteeship under court authority.
The cleanup of the laborers union has dragged on longer than
expected, but officials said it is important to make sure mob influence is eradicated from
the union's leadership. "When we started this process five years ago, we probably
hoped that we were going to be fighting the Persian Gulf War, and instead we're fighting
World War I," said Robert Luskin, a Washington attorney who is overseeing reform
efforts within the laborers union. "Progress is slow." "The people who have
controlled elements of this union for a long time have not given up and walked away
without a fight," Luskin told reporters. But "the object here is to guarantee
long-term change."
The civil racketeering lawsuit alleges that reform efforts largely
have removed mob influence from the district council but that the Outfit still controls
key positions in several of the union's locals. Under the consent decree, the
court-appointed monitor would be given expanded powers to investigate mob influence and
corruption in the union, including authority to subpoena records and compel testimony from
witnesses. In addition, the FBI would be free to share confidential information about
mobsters and suspected criminal activities with the monitor. Currently, grand jury secrecy
rules and privacy prohibitions bar the FBI from releasing such sensitive details,
officials said.
At hearings held by the laborers union in 1997, evidence clearly
established that for at least 30 years leaders of the Chicago district council had
"strong, pervasive ties" to mob bosses, according to the lawsuit. The district
council "was proven to be a `safe haven' for the employment of organized crime
figures, associates and their relatives," the lawsuit said.
Since the mid-1970s, not a single contested election of officers
has been held, authorities said, and all principal officers of the district council have
been members or associates of the Chicago Outfit or their relatives. The lawsuit describes
in detail the roles of 21 Outfit members or associates over the years in the affairs of
the international union and the district council. It refers to them as
"co-conspirators," and none was charged in the suit with criminal activity.
Among them, the lawsuit states, are four alleged mobsters who held
district council offices when the trusteeship took effect last year: vice president John
Matassa Jr., reputed boss of the Outfit's North Side Crew; president Bruno Caruso, son of
the late Frank Caruso, boss of the mob's 26th Street crew; secretary-treasurer Joseph A.
Lombardo Jr., son of Joseph "The Clown" Lombardo Sr., a former mob street crew
boss; and sergeant-at-arms Leo Caruso, an alleged mob associate and Bruno Caruso's cousin.
Also listed as influential in the union were Accardo and Aiuppa, both longtime bosses of
the Chicago Outfit, and Lombardo Sr.
In Roti's 1993 trial, prosecutors had alleged the 1st Ward
alderman worked closely with Pat Marcy, a mob powerbroker who died before he could be
brought to trial. But no one accused Roti of being a "made" member of the
mob--until this week in the lawsuit. Roti was sentenced to 4 years in prison. He was
released from prison in 1997.
According to the lawsuit, Roti was a key patronage boss and a
"fixer" for the Chicago Outfit. Roti could not be reached Thursday. It also
alleged that John Serpico, a former powerful figure in the laborers union who was indicted
last week in federal court on racketeering and fraud charges, was a longtime organized
crime associate.
Near the end of his union duties, Thursday's suit alleged,
Serpico, president of Local 8 in Chicago, "transferred" 85 percent of the
local's membership to Central States Joint Board, which authorities described as
organized-crime influenced.
Since taking over as trustee of the Chicago district council in
February 1998, Bloch has removed all of the council's former officers, worked closely with
locals to institute reform policies and, for the first time with the direct participation
of all the locals, negotiated a three-year labor contract for the 21 locals, authorities
said.
The union has adopted an ethics and disciplinary code, instituted
reforms in how it assigns members to work and changed its contracting procedures. The
union also has placed locals in Chicago, Buffalo and New York City under trusteeship, and
a number of local and international union officers have been hit with internal misconduct
charges. "We feel the international has made great strides in reforming itself,"
Lassar said. But the lawyers brought in to help carry out the reforms emphasized that the
key to success is winning the cooperation of the union leadership in the effort to rid it
of mob influence.
The consent decree is a key step in that direction, they said.
"In the end you can prosecute as many people as you want but that does not change the
culture of an organization," Bloch said.
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