Hogan Passo Decision by IBT Independent Review board

For Background on Hogan, corruption in labor unions,
organized crime's influence in labor unions visit Illinois Police and Sheriff's news
http://www.ipsn.org and The Laborers Network

-------------------x

In re:

Dane Passo and :
William T. Hogan. Jr. :

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OPINION AND DECISION
OF THE INDEPENDENT
REVIEW BOARD

The Independent Review Board ("IRB") forwarded an investigative report
to the International Brotherhood of Teamsters ("IBT") General President James P. Hoffa
("Hoffa") on May 23, 2001. The report recommended that International Representatives
Dane Passo ("Passo") and William T. Hogan, Jr. ("Hogan") be charged with bringing
reproach upon the IBT. (IRB Ex. 1)¹ The charge was that Passo and Hogan colluded
with a labor broker to allow him to avoid the financial obligations under the governing
contract to the detriment of the members of Local 631 in violation of Article II, Section
2(a) and Article XIX, Section 7(b)(1) and (2) of the IBT Constitution. (IRB Ex. 1)² On

_______________________
1 "IRB Ex." refers to exhibits introduced by the IRB during the hearing; "Ex." refers to the Chief
Investigator's exhibits introduced during the hearing; "Tr." refers to the transcript of the hearing before the
IRB; "P. Ex." refers to exhibits Passo introduced at the hearing and "H. Ex." refers to exhibits Hogan
introduced at the hearing.

May 25, 2001, IBT General Secretary-Treasurer C. Thomas Keegel ("Keegel") filed
charges against Passo and Hogan. (IRB Ex. 2)³

By letter dated July 26, 2001, Keegel, on behalf of the IBT's Executive
Board, referred the charges against Passo and Hogan to the IRB for adjudication. (IRB
Ex. 4) On October 17 and 18, 2001, the IRB conducted an evidentiary hearing in Las
Vegas, Nevada.

Dane Passo was a member of Local 705 in Chicago. (Ex. 20 at 4) General
President Hoffa appointed Passo his Special Assistant and an International Representative
in March of 1999. (Ex. 11; Ex. 20 at 23-24) President Hoffa's Executive Assistant Carlos
Scalf ("Scalf") supervised Passo. (Ex. 12 at 47-48) Passo was Special Assistant until
October 1, 2000, when Hoffa removed his title. (Ex. 20 at 24-25; Ex. 11)⁴ After the IBT
filed the IRB-recommended charge against him, Passo took an unpaid leave of absence as
an International Representative. (IRB Ex. 3)

The only previous union position Passo held was for thirteen months as a
Local 705 business representative in Chicago. (Ex. 20 at 18-19) Passo had never
negotiated any collective bargaining agreements while employed at 705 or at the IBT.
(Ex. 21 at 290-91; Tr. 504-505)⁵

^{_________________________}
3    IBT General President Hoffa recused himself from this matter. (IRB Ex. 2)
4    Hoffa testified that Passo was removed as Special Assistant because some IBT Vice Presidents
told him that Passo "was very aggressive in putting forth his position. And they felt it would be better if he
didn't have that title." (Ex. 78 at 13-14) When asked why Passo was removed as Special Assistant, Scalf
testified, "[b]ecause of him pushing his weight around and telling people that he could get them fired and
being a little more outspoken than he should be and on the advice of counsel." (Ex. 12 at 197)
5    According to Passo, his only experience was when he observed negotiations Scalf conducted with
the New York, New York Casino in Las Vegas. (Ex. 21 at 290-91)

Passo had no experience in the convention industry. (Ex. 20 at 23; Tr.
455) The Local 631 collective bargaining agreement with the trade show contractors was
the first convention contract to which Passo had any exposure. (Tr. 471)

Mr. Hogan is President of Joint Council 25, Vice President of Local 179
and Organizing and Political Director for Local 714, all in Chicago. (Ex. 15 at 4)⁶ (1,
May 1, 2000, Hoffa appointed Hogan an International Representative. (Ex. 143) As
International Representative, Hogan was not assigned to a specific IBT department. He
reported to Mr. Scalf. (Ex. 12 at 47)

Mr. Hogan had substantial experience in the convention services industry
and is especially recognized as knowledgeable of Chicago trade shows and convention
center business. (Tr. 282-294)

Hogan had no International assignment in Las Vegas and no official
responsibilities with Local 631. (Ex. 12 at 60) Hogan took an unpaid leave of absence
from his position as an International Representative after the IBT filed the IRB-
recommended charge against him. (IRB Ex. 3 )

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6 In August 1996, based upon an IRB recommendation, the IBT placed Local 714 in Trusteeship.
The Local was placed in Trusteeship because of nepotism and conflicts of interest among Hogan and his
relatives who had ownership interests in companies that employed Teamster members. At that time, Hogan
was Secretary-Treasurer of Local 714 and President of Joint Council 25 in Chicago. (Ex. 162 at 4, 11)
After being removed as the Local 714 principal officer, Hogan continued as a Local 714 member until
approximately early 1997 when he retired. (Ex. 15 at 5) In early 1999, Hogan was appointed Vice
President of Local 714. (Ex. 15 at 10-11) On or about March 9, 2000, Hogan was appointed President of
Joint Council 25. (Ex. 15 at 4)

Ben Stein ("Stein") founded United Service Companies in Chicago
approximately forty years ago. (Ex. 27)⁷ Richard Simon ("Simon") is the current
Chairman of United. (Ex. 27; Ex. 171) Currently, there are at least three companies
under the United name: United Maintenance Company, Inc. ("United Maintenance"),
United National Maintenance, Inc. and United Temps of Nevada ("United Temps"). Exs.
19, 24 and 27)

United Maintenance was incorporated in Illinois on March 2, 1982 (Ex.
19), and United National Maintenance in Nevada in October 1984. (Ex. 19) Simon is the
President of United National Maintenance. (Ex. 19)⁸ Simon is a business friend of
Hogan's, of long standing. (Tr. 294-298)

United Temps of Nevada Inc. was incorporated in Nevada on March 1,
1999. (Ex. 24) The President is Simon and the Secretary is Carol D. Stein. (Ex. 24)⁹
According to its website, United Temps provides temporary labor for major events and

_________________________
7 Stein, who was convicted of bribing a union official in the 1960s, was reported to have ties to
organized crime figures including La Cosa Nostra member Dominic Senese ("Senese"), who was also a
local Teamster official. (Ex. 28) Simon also knew Senese well. (Ex. 30) The arrangement Passo, Hogan
and Simon proposed to Local 631 was similar to those Stein had reportedly been involved with in the past
where his employees were paid wages below a prevailing contract. (Ex. 28-31) In 1966, Stein was
convicted in federal court in Chicago for labor racketeering and bribery. (Ex. 28) Stein was sentenced to
eighteen months in federal prison and fined $2,000. (Ex. 28) In 1969, Stein's conviction was overturned on
the bribery counts. (Ex. 28) Stein subsequently pleaded guilty to bribing a film carriers union official and
was sentenced to one year in prison. (Ex. 28)

In the mid 1970s, Stein and Senese, an organized crime member and then the principal officer of
the IBT Local 703, obtained a loan of $5.25 million from the IBT Local 710 Pension Fund. (Ex. 28)
According to a news report, Stein and Senese used this money to invest in a building to provide a tax
shelter. (Ex. 28) Senese was subsequently barred from the IBT for being a member of organized crime.
(Ex. 29) Stein died in September 1996 (Ex. 28)

8 The Secretary-Treasurer of this company is Stein's daughter, Carol. (Ex. 19) According to the
United website, United National Maintenance "provides services to the trade show industry and major
stadiums on a national level. Currently in more than 25 major cities in 14 states." (Ex. 27)
9 On May 12, 2000, United Temps of Nevada was registered as a foreign corporation in Illinois.
(Ex. 24) Simon is the registered agent. (Ex. 24) In Illinois, United Temps of Nevada has the assumed
name United Temps. (Ex. 24)

institutions on local and national levels. (Ex. 27) It was incorporated shortly before
Simon and Michael Hogan approached Local 631 officers to permit United to supply
workers to the trade show contractor at rates below the existing Teamster' contract.¹⁰
United Temps is a labor broker. (Tr. 359, 463; Ex. 15 at 148; Ex. 32 at 26;
Ex. 26 at 49; Ex. 82 at 77) Passo knew that the United employees, who were not
members of any union, did not receive any health and welfare or pension benefits or
vacation time. (Tr. 508)

Michael P. Hogan, Sr. (" Michael Hogan"), a brother of William Hogan,
was Vice President of United. (Ex. 15 at 18-20; Ex. 18; Ex. 173 at 7, 19) ¹¹ In 1999,
Michael Hogan asked his brother William Hogan to introduce him and Simon to the
Local 631 officers. In 1996, Michael Hogan's son testified that his father worked for
United. (Ex. 173 at 19)

Michael Hogan was also the CEO of Show Biz USA ("Show Biz"), a trade
show contractor active at the Las Vegas Convention Center. (Exs. 11-23; Ex. 15 at 18)¹²
Show Biz was the general contractor for the Super Show that was held in Las Vegas in
January 2001. (Ex. 155 at 6-8, 19; Ex. 154; Ex. 147 at 20) During that show, Show Biz
attempted to use United employees to perform Teamster work. (Ex. 155 at 21, 25-26; Ex.

____________________
10 The United employees who performed Teamster bargaining unit work usually performed cleaning
work in the convention industry. (Ex. 6 at 68-75; Tr. 175)

11 Michael Hogan, Jr., a Local 714 member and son of Michael Hogan, explained that United
Maintenance handled empty crates at McCormick Place in Chicago. (Ex. 173 at 19) A "labor service,"
Readymen, Inc., provided workers to United Maintenance. (Ex. 173 at 22-23) William Hogan, head of
Joint Council 25, claimed that he did not know if the Chicago United employees who worked at
McCormick Place were members of any union and he acknowledged that he never tried to organize them.
(Ex. 15 at 30, 147)

12 Michael Hogan had been the Local 714 chief steward in the Chicago Local's trade show division
from the mid 1970s to 1978. (Ex. 174 at 10-11; Ex. 175 at 128; Ex. 176)

156 at 41-42; Ex. 154) Obviously, as a general contractor, any change in the governing
contract that allowed the use of cheaper labor, as Passo and William Hogan advocated,
would result in substantial financial benefit to Michael Hogan and Richard Simon.

Local 631 is in Las Vegas, Nevada. During the relevant time period it
had a collective bargaining agreement with trade show contractors there. This contract
was referred to as the "red book contract." (Ex. 4; Ex. 6 at 106) The major show
contractors were Greyhound Exposition Services ("GES") and Freeman Decorating
("Freeman"). (Ex. 6 at 108, 227-228) In Las Vegas the Teamsters had jurisdiction over
the majority of work in the trade show industry. (Tr. 182-83)

The agreement required the trade show contractors to contract the Local
631 dispatch office for workers. (Ex. 4 at 3) ¹³ The contract provided for an "A" dispatch
list and a Supplemental dispatch list, sometimes referred to as the "C" list. (Ex. 4 at 3-4)
Individuals who had not worked 1,000 hours in the convention industry comprised the
Supplemental "C" list. (Ex. 4 at 4) Every Thursday, individuals, including under the
contract non-union workers, would register at the dispatch office. (Ex. 2 at 102; Ex. 7 at
70-71) To be on the list, an individual had to complete registration forms, watch an
orientation video and pay either Local 631 dues or a monthly dispatch fee. (Ex. 7 at 70,

_______________________
13 Pursuant to Article 1, Section 3 of the red book contract,

87; Ex. 2 at 102) Thus, any dues paying Local 631 member could register for the
occasional convention work without paying any additional fee. (Ex. 6 at 77-78; Ex. 7 at
69, 87) Non-union workers paid a $40 per month dispatch fee. (Ex. 7 at 69-70, 80, 87;
Ex. 8 at 18)

The minimum hourly wage under the agreement was $12.49 for
Supplemental Workers with less than 150 hours work in the industry. (Ex. 4 at 11) After
more than 150 hours, the hourly rate, effective June 1, 2000, was $13.69. (Ex. 4 at 11) A
Supplemental Worker with more than 150 hours in the industry was sometimes referred
to as a "C Plus" worker. (Ex. 25 at 11; Ex. 4 at 11)

According to Article III, Section E of the contract, for work performed
between the hours of 10:00 p.m. and 6:00 a.m., all employees were paid one and one half
times the base rate of pay, except for Supplemental Workers who had not worked 150
hours. (Ex. 4 at 13) Effective June l, 2000, for every hour worked between 10:00 p.m.
and 6:00 a.m., a C Plus worker would have been paid $20.53 per hour. In addition, the
contractor also would have had benefit fund contributions on the worker's behalf. ¹⁴

Pursuant to the contract, the employer was required for each hour an
employee worked to make contributions of $3.75 to the Teamsters Local 631 Security Fund
for Southern Nevada ("Local 631 Security Fund") for health and welfare and dental and
vision coverage. (Ex. 4 at 26) Effective June 1, 2000, in addition, the employer was
required to make contributions for each employee totaling $4.15 per hour to the Western

________________
14 The base rate for a C Plus worker effective June 1, 2000 was $13.69. (Ex. 4 at 11)

Conference of Teamsters Pension Fund. (Ex. 4 at 26-27) Therefore, effective June l, 2000,
the minimum hourly cost to the employer for, wages and benefits for a worker dispatched
through Local 631 was $20.39. The minimum hourly cost for workers with over 150 hours
experience employed during the period from 10:00 p.m. and 6:00 a.m. was $28.43 per hour.
(Ex. 4 at 11, 13, 26-27)¹⁵

During large shows when one show was moving out and another show as
moving in, the dispatch office, from time to time, ran out of registered workers to send.
(Tr. 63, 189-190, 379, 386, 387; Ex. 6 at 89-90; Ex. 5 at 11-12; Ex. 7 at 84) These
"show" changes sometimes happened late at night or on weekends when the dispatch
office was closed. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25 at 33-34) Once workers finished
working on the existing show, they were then available to work on the incoming show.
In those circumstances, individuals would have been "rolled over" from one show to
another. (Tr. 189-90; Ex. 25 at 32; Ex. 6 at 71-72, 236-237; Ex. 5 at 11-12; Ex. 2 at 192-
193)

Prior to the Trusteeship being imposed on Local 631 in April 2000, if the
dispatch office's list of registrants was exhausted, the dispatcher contacted IBT Locals 14
and 995 in Las Vegas and then the Carpenters and Electricians unions to see if they had
out-of-work members who wanted to work. (Tr. 132, 381; Ex. 5 at 14-15)¹⁶ All workers,
including members of other unions, who were dispatched from Local 631 received a

_________________
15 The hourly wage for a C Plus worker was $16.39. (Ex. 4 at 11) Time and one half for the night
hours was $20.53. The benefit fund contributions were $7.90 per hour. (Ex. 4 at 16-27)

16 In an effort to increase the number of registrants in the dispatch office, the Local before the
Trusteeship also placed ads in the newspaper seeking people to sign up in the dispatch office. The Local
also would allow people to register in the hiring hall every day, instead of only the usual sign up on
Thursday. (Tr. 132).

written dispatch form from the Local. (Tr. 62; Ex. 170)¹⁷ Local 631 complied with the
contract, controlled the employees sent to work and ensured that workers sent to the
tradeshow contractors were paid wages and benefits pursuant to the contract. The Local
officers had an agreement with the Carpenters that any Carpenter members dispatched
through Local 631 ". . . would be the last ones on the show floor and the first ones to be
laid off. So it didn't affect any of my hiring hall people, were they . . members or
nonmembers." (Tr. 133, 405)

Local 631 may have contacted the other unions between six and eight
times a year for the large shows prior to the Trusteeship. (Tr. 132) ¹⁸ After the
Trusteeship was imposed, Passo insisted that the dispatchers no longer contact other
unions to fill the call when the dispatch office exhausted its list (Ex. 26 at 78; Ex. 20 at
146; Ex. 9 at 15)

This contract provision eliminated the economic incentive for contractors
to attempt to use lower paid employees such as those of a labor broker, like United, not
dispatched through Local 631. Despite these terms, Passo and Hogan argued for an
agreement with United to permit it to pay its employees to perform Teamster bargaining
unit work at significantly below the contract rates and to be dispatched directly through

________________________
17 The Local provided dispatch records showing that in late 1999 and early 2000, the Local 631
dispatch office referred members of the Carpenters Union to work in the convention industry. (Ex. 170)

18 Breyman estimated that the Local 631 dispatch list was exhausted on the major shows between six
and eight times a year. (Tr. 380)

United. Passo and Hogan's proposed arrangement with United would have provided
contractors an incentive to circumvent the red book contract requirements and hire the
cheaper United workers, as GES repeatedly attempted and Michael Hogan attempted to
do on the Super Show in Las Vegas in 2001.

Timothy Murphy ("Murphy") was elected Secretary-Treasurer in Local
6312s 1998 election (Ex. 25 at 5) and he rehired David Breyman ("Breyman") as
dispatcher. (Ex. 5 at 6)

Hogan's brother, Michael told Hogan that, ". . . Rich [Simon] has been
negotiating with the prior administration to do some things here for the labor problems
here in Las Vegas." (Ex. 15 at 24) The Local administration prior to Murphy's had
refused to enter into an agreement with United. (Ex. 15 at 24; Tr. 306, 307, 371)

Hogan agreed to introduce Michael to the newly elected Local 631
officials in order to again propose an arrangement between Local 631 and United. (Ex.
15 at 22-25) During a Western Delegates meeting in Las Vegas in June 1999, Hogan
introduced his brother to Breyman at Bally's hotel. (Tr. 384; Ex. 15 at 25-26; Ex. 5 at 22,

25) ¹⁹ Murphy attended the Western Region Delegates meeting during which he
introduced himself to Hoffa and Hogan. (Tr. 124; Ex. 25 at 15-17, 26, 41-43) Hogan
asked Murphy if he would be willing to meet with some people who were not identified.
(Tr. 135; Ex. 25 at 17-19; 25, 27-28) Murphy agreed. (Tr. 133-135; 308; Ex. 25 at 17)

In the summer or earl,,; fall of 1999, Murphy and Breyman met with
Michael Hogan and Simon at the Rio hotel in Las Vegas. (Tr. 135, 304, 305, 383) At
the time of this meeting, both Murphy and Breyman knew that Michael Hogan was
related to William Hogan. (Tr. 136, 392) Simon and Michael Hogan proposed that Local
631 enter into an agreement with United pursuant to which United would supply workers
to trade show companies after the Local 631 dispatch list was exhausted. (Tr. 387, 401-
402; Ex. 25 at 33-35) Breyman was concerned that United would take over the dispatch
function from Local 631. (Tr. 401-402; Ex. 5 at 30-39) Breyman would not surrender
Local 631's control of the dispatching. He believed control was necessary to ensure that
the workers were paid pursuant to the governing contract and to allow the union to
monitor workers' hours so that their pay would be increased at intervals pursuant to the
red book contract. (Tr. 402)

Under Michael Hogan and Simon's proposal, United would not have
entered into a collective bargaining agreement with the Local. (Tr. 387) Breyman
recalled:

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19 The Western Regional Delegates meeting was held on June 28 and 29, 1999. (Exs. 185 and 186)

(Tr. 387) Michael Hogan and Simon also proposed paying the United employees
directly rather than the employees paid by the trade show contractor for which the work
was performed as would have been done under the existing contract. (Tr. 388) ²⁰
Breyman testified, ". . . [b]oth Tim and myself had suggested that would be inappropriate
without them being under a contract, that we felt the people that were working for the
general contractors should be paid by the general contractors." (Tr. 288)

Michael Hogan and Simon proposed that United would pay a fee of $7 or
$8 for each person dispatched rather than the $40 dispatch fee non-members paid to
Local 631. (Tr. 137, Ex. 5 at 29-30; Ex. 25 at 28) There was no intention for United
employees to become Teamsters. Union members would have paid dues instead of any
dispatch fee.

Murphy refused to agree to United's proposal (Tr. 137-38, 306-307, 371;
Ex. 25 at 35; Ex. 5 at 29-32) and Breyman also would not support any changes to the
economic obligations due employees under the current contract. (Tr. 388-389; Ex. 5 at
30) Breyman told Michael Hogan and Simon that United would have to pay the wage
rates under the contract then in effect. (Tr. 401) Michael Hogan or Simon informed
William Hogan that no agreement was reached with Local 631. (Tr. 309)

On September 15, 1999, Local 631 President Christian chaired a general
membership meeting in Murphy's absence at which a no confidence vote against

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20 Workers dispatched from Local 63 I were paid by the trade show contractors at the red book
contract rate. (Ex. 5 at 32, 39)

Secretary-Treasurer Murphy was passed. (Ex. 196) On the date of this meeting, Passo
made three calls to Hogan; one for sixteen minutes. (Ex. 38) In a letter dated October 4,
1999, Christian informed General President Hoffa of this no confidence vote, noting that
Dudash made the motion and Locascio had seconded it. (Ex. 197)

Vito Locascio²¹ also became active in soliciting complaints from members
about Murphy. (Ex. 25 at 60) Passo brought the local 631 complaints to Hoffa's
attention. (Ex. 20 at 113-114; Ex. 21 at 256-60) Passo urged Hoffa to appoint him
Hoffa's Personal Representative to Local 631. (Ex. 20 at 113-114) On Friday,
November 5, 1999, Hoffa granted Passo's request. (Ex. 10)

Hoffa also appointed Santangelo and International Representatives Robert
Turner ("Turner") and John Kikes ("Kikes") to be Personal Representatives to the Local.
(Exs. 13-14; Ex. 32 at 16-17) Santangelo, Turner and Kikes conducted an investigation
into the complaints regarding Local 631. (Ex. 3)

In January 2000, IBT Vice President and Joint Council 42 President
Santangelo forwarded a report to General President Hoffa recommending the Local 631
be placed in Trusteeship based on the investigation that he and Personal Representatives
Kikes and Turner had conducted. (Ex. 3)

Passo and Hogan continued to keep in close contact throughout early
2000. From cellular telephone records, there were eleven calls between Passo and Hogan

_____________________
21 Vito Locascio was a former member of Hogan's local in Chicago and was a close confidant of
Passo. (Exs. 144 and 146) After Local 631 was placed in Trusteeship, Passo and Locascio talked every
day. (Ex. 147 at 33)

in January 2000, the month of Santangelo's report, twelve calls in February 2000 and 32
calls in March 2000. (Exs. 42-45, 54, 65-68 and 76)²²

On February 28, 2000, Hogan arrived in Las Vegas for a labor panel for
the Exhibitor Assisted Contractors Association that was then having a meeting in Las
Vegas. (Tr. 311; Ex. 15 at 83-84; Exs. 265-66) Passo arrived in Las Vegas the next day.
(Exs. 118-119) That day, the,,,. were five calls from Hogan's cellular telephone to
Passo's cellular telephone. (Ex:: . 68 and 76) The following day, on March 1, 2000,
Passo, Hogan, Santangelo and Turner went to Local 631 to confront Secretary-Treasurer
Murphy. (Tr. 141-142; Ex. 25 at 65-66; Ex. 20 at 116; Ex. 15 at 100; Ex. 32 at 13) At
the time Hogan went with Passo and Santangelo to Local 631, Hogan had no
International position. Nor did he have any assigned role with respect to Local 631. (Ex.
12 at 60)²³

On March 1, 2000, Passo dined with Hogan, Santangelo, Turner and
Christian, the Local 631 President whom Murphy had terminated as a business agent.
(Exs. 118-119) In addition, also on March 1, 2000, Passo and Hogan had a private
meeting to discuss Local 631. (Exs. 118-119)²⁴

Passo's March l, 2000 appearance at the Local was the first time Murphy
had seen Passo at Local 631. (Tr. 141; Ex. 25 at 22-24) During this meeting, Passo,
Hogan, Santangelo and Turner told Murphy that General President Hoffa recommended

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22     On February 17, 2000, Passo and Hogan dined together in New Orleans during the AFL-CIO
Convention. (Ex. 15 at 81-82; Ex. 20 at 120; Exs. 116 and 117)

23     Scalf, Hoffa's Executive Assistant who supervised Hogan as an International Representative,
confirmed he had given Hogan no assignment in Las Vegas. (Ex. 12 at 60)

24     This meal was at Piero's Italian Cuisine. (Exs. 118-119) When asked why he discussed Local
631 business with Hogan at this dinner, Passo claimed, "[t]o tell you the truth, I don't know how he got
involved in that." (Ex. 20 at 128)

that he do three things: rehire business agent Christian and office employee Pam
Peabody and terminate Leslie Johnson. (Tr. 143-144; Ex 20 at 116; Ex. 15 at 100; Ex.
32 at 13; Ex. 25 at 65-66; Ex. 193) Murphy was given until March 3 to respond. (Tr.
145) The next day, March 2, 2000, Passo, Hogan and others met to discuss Local 631.
(Exs. 118-19; Ex. 147 at 34, 133-134; Ex. 20 at 129-1,31) Santangelo and Turner,
Hoffa's personal representatives to the Local, were absent from this meeting.

On the morning of March 3, Passo called Murphy demanding his
response. (Tr. 145) Murphy said he would respond to Hoffa in writing. (Tr. 145) Later
on March 3, Murphy telefaxed Hoffa a letter explaining his reasons for not complying
with Hoffa's requests. (Ex. 193; Ex. 25 at 66; Tr. 145) On March 3, 2000. Hogan called
Passo and spoke for ten minutes. (Ex. 67)

Between the March 1, 2000 meeting at Local 631 and April 5, 2000, when
Local 631 was placed in Trusteeship, there were at least 32 calls between Hogan's and
Passo's cellular telephones. (Exs. 44, 45, 54, 67, 68, 76)

On April 5, 2000, President Hoffa placed Local 631 in Trusteeship^.25 (Ex.
14) Hoffa appointed James Wilkerson ("Wilkerson"), the former principal officer of
_______________________
25 According to Hoffa's Trusteeship notice, Local 631 was placed in Trusteeship for the following
reasons:

Local 14 in Las Vegas, as Trustee. ²⁶ (Ex. 198) In addition, Hoffa appointed Marty
Frates ("Frates"), a business agent from Local 70 in Oakland. California and a Hoffa
appointee to a United Parcel Service ("UPS") National Grievance Panel, as Assistant
Trustee. (Ex. 198, Ex. 82 at 508, 20, 64)²⁷

The Trusteeship notice described the appointment of Santangelo, Turner
and Kikes as the General President's Personal Representatives to Local 631 and their
activities in that capacity. (Ex. 14) Passo also had been appointed a Personal
Representative to Local 631 but his involvement was not described and his activities not
listed in the notice to members. (Ex. 14)

On April 5, 2000, Passo was one of the group that went to Local 631 to
effect the Trusteeship. (Ex. 21 at 264-65) Secretary-Treasurer Murphy and the Local's
other officers were terminated. (Tr. 147, 400; Ex. 26 at 14)

Several other Local employees, including dispatcher Breyman, were fired.
(Tr. 391; Ex. 5 at 55-56)

On the day the Local was placed in Trusteeship, Passo called Hogan five
times. (Exs. 45, 55, 76; Tr. 319-320) In addition, there were two calls from Hogan to

____________________________

(Ex.14)

26 Between March 1965 and April 1995, Wilkerson had been employed at Local 14 in Las Vegas.
(Ex. 16 at 5-Local 631) He was the principal officer of Local 14 for 28 years. (Ex. 26 at 5-Local 631 )
Wilkerson had also been a Trustee and the Recording Secretary for Joint Council 42. (Ex. 26 at 6)

27 Frates was a business agent with Local 70 for twenty-three years. (Ex. 82 at 6) Frates had been a
Local 70 Trustee for approximately seven years in the 1970s. (Ex. 82 at 6)

Passo. (Exs. 69, 76) Passo continued the practice of informing Hogan of all events
regarding Local 631.

Passo chose Local 631 member Roberta Whitfield ("Whitfield") to be one
of the business agents for the convention industry. (Tr. 480; Ex. 26 at 40-41; Ex. 6 at 5)
She had worked in the convention industry for twenty-three years and had been a steward
in the convention industry since the 1980s. (Ex. 6 at 11) Wilkerson had not previously
known Whitfield. (Tr. 70)

After the Local was placed in Trusteeship, Chuck Benboe ("Benboe") was
also hired as a business agent for the convention industry. (Ex. 26 at 40) Benboe had
been a business agent with Local 222 in Salt Lake City and Local 190 in Billings,
Montana. (Ex. 149 at 6) Whitfield worked in the field. Benboe was responsible for
handling grievances. (Ex. 26 at 41-42)

After Local 631 was placed in Trusteeship, Passo was in Las Vegas
regularly over a period of several months. Of the 229 days between April 4 and
November 19, 2000, Passo was in Las Vegas for 156 days. (Ex. 201)²⁸

Hogan was frequently in Las Vegas during the same period. For at least
27 days between April 16 and October 27, 2000 Hogan was in Las Vegas. At the IRB
hearing Hogan claimed to be concerned with the Local's jurisdiction being infringed, but
he never once met with the IBT Trustee to let his concern be known. (Tr. 375-376) In
the eleven months from the Trusteeship to his request to Hoffa in March 2001 to be
permitted to negotiate the Local 631 contract, Hogan never called Wilkerson or his

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28 The IBT paid approximately $18,501 in hotel bills; $11,522 in car rental bills, $8,653 in airfare
and $21,256 in meals and other expenses, including gasoline, for Passo's stays in Las Vegas. (Exs. 120-
135,201)

successor to express his views on the proposed agreement with United or problems at the
Convention Center. (Tr. 366-367, 375-376; Ex. 26 at 58; Ex. 15 at 92-93)

Hogan and Passo were both in Las Vegas at the same time on at least six
occasions in 2000. (Exs. 116-35, 166, 265-281)²⁹ (Exs. 118-119, 122, 123, 128, 129,
132, 133, 165)

After Local 631 was in Trusteeship, Hogan introduced Passo to Simon so
Passo would help Simon renew his effort to make a labor arrangement with Local 631.
(Tr. 306-307; Ex. 15 at 24-25) Hogan never introduced Simon to Trustee Wilkerson.
(Tr. 60) As a result of Hogan's introduction, Passo and Simon discussed an arrangement
for United with Local 631. (Tr. 444-447; Ex. 20 at 73-74)

During this time, Passo knew that trade show contractor GES was
"scabbing" by using United employees at rates substantially less than the Teamster
contract. (Tr. 464, 487-88) Passo discussed GES's "scabbing" with Hogan. (Tr. 487-88)
According to Passo, the United employees were paid $5.00 per hour. (Tr. 508) The
minimum hourly rate under the red book agreement was $12.40. In addition, under the
red book contract, United would have to pay an additional $7.90 per hour per employee
in benefit contributions. (Ex. 4 at 11, 26-27) Throughout this period, Passo knew that
the United employees had no health and welfare or pension benefits. (Tr. 508) Passo
took no action about the scabbing.
_______________________
29 Passo and Hogan were both in Las Vegas on the following dates: February 29-March 2, 2000;
May 7, May 19-21; August 13-17; September 19-24; October 23-27. (Exs. 118-120, 122-125, 128-133,
176, 265-267, 269, 271-273, 275-280)

Passo gave Simon a copy of the Local's contract with GES. (Ex. 20 at
70)³⁰ Simon told Passo that he, Simon, should have concessions from that agreement.
(Ex. 20 at 75-77) Passo then pressed concessions for Simon on Local 631. (Ex. 20 at 84-
85; Tr. 59; Ex. 20 at 75-77; Ex. 26 at 45)

Local 631 officials did not participate in any of the discussions over terms
between Passo and Simon. (Ex. 20 at 52, 162-64) Rather, Passo made an agreement with
Simon that he then pushed the Local's officials to approve. (Tr. 65-66, 96, 120, 180-189;
Ex. 6 at 93-111; Ex. 26 at 44-49; Ex. 82 at 53-56, 72-73; Ex. 20 at 162-163)³¹

After Local 631 officials refused to endorse the Passo-Simon agreement,
Passo falsely represented that high-ranking IBT officials supported it and would look
favorably on the Local 631 officials approving it. (Ex. 26 at 88; Tr. 65) When the Local
631 officials continued to refuse to enter into his agreement with Simon (Ex. 82 at 49-56;
Ex. 6 at 94-111; Ex. 26 at 44-46), Passo caused Assistant Trustee Frates to be terminated.
(Ex. 26 at 111-112; Ex. 78 at 62; Ex. 12 at 214) Passo later caused Trustee Wilkerson to
be fired. (Ex. 20 at 242-243; Ex. 12 at 84-85, 127, 130, 151-152; Ex. 78 at 57-59)

_____________________
30 In August 2000 Passo submitted to the IBT Legal Department an agreement he had negotiated
with Simon with the following description, "The language in the enclosed paperwork is the amended
language to the contract. Everything else will remain the same as in the GES Exposition contract." (Ex.
84) In contrast, during the IRB hearing Passo testified ". . . They [United] did not have anything to do with
the GES contract. They were totally away from it . . . ." (Tr. 508)

31 Passo did not have authority to sign an agreement with United. (Tr. 95) Trustee Wilkerson had
that authority. (Tr. 95)

In April or early May 2000, shortly after the Trusteeship, Passo told
business agent Whitfield that he and Simon were working on an agreement under which
Simon's company would provide employees in the convention industry. (Tr. 177, Ex. 6 at
89-93) Subsequently Passo told Whitfield that Simon would be in Las Vegas and asked
her to dinner with Simon. (Tr. 179)

Whitfield requested Assistant Trustee Frates to attend this dinner with
Passo and Simon. (Ex. 6 at 93-95 Ex. 82 at 40) (Tr. 185) In attempting to justify why
he wanted the inexperienced Whitfield alone at a meeting on Local business with him and
Simon, Passo bluffed, telling Whitfield that ". . . he knew more about doing a contract
than Marty did ...... (Tr. 185) In fact, Passo had no experience negotiating collective
bargaining agreements. (Ex. 21 at 190-291; Tr. 504-505) Nor did he have any
experience in the convention industry. (Tr. 455; Ex. 20 at 23, 79) Passo's false
statements about his own experience were consistent with his attempts to convince others
to approve his agreement with Simon by falsely claiming other IBT officials favored it.

Whitfield and Frates met Passo and Simon for dinner. (Ex. 6 at 96; Ex. 82 at 49;
Ex. 20 at 89-90) Passo and Simon presented an agreement under which the Local would
make substantial concessions from the red book contract to Simon. (Ex. 82 at 53-54, 72
73; Ex. 6 at 94-104, Tr. 180) Passo and Simon's wage scale was $8.00 per hour, the
same figure Passo quoted to Wilkerson in his discussion with him. (Tr. 58, 60, 180-181)
At that time, the lowest wage scale under the governing contract was $12.40 per hour.
(Tr. 180)

In addition, Passo had agreed that Simon would not make benefit fund
contributions from the first hour an employee worked as the red book agreement
required. (Tr. 181; Ex. 6 at 101-102; Ex. 4 at 24, 27)

Passo urged Frates and Whitfield to approve Simon's terms. (Tr. 275-76;
Ex. 82 at 72) Whitfield testified,

Both Whitfield and Frates refused to agree to Passo's concessions for
Simon. (Tr. 183-185; Ex. 82 at 54)³² Assistant Trustee Frates stated:

_____________________
32 During his sworn examination, Passo testified that he did not recall Frates' or Whitfield's opinion
regarding the agreement. (Ex. 20 at 92) The claimed lack of memory is not credible.

Part of the reason for Frates' strong opposition to Passo's proposal to give significant
economic concessions to Simon was because he believed they would trigger the most
favored nations clause in the red book contract to the disadvantage of Local 631's
members in the convention industry. (Ex. 82 at 54) Frates also opposed the proposed
agreement with United because contract negotiations with the trade show contractors
were coming up in 2001, ". . . it would have been asinine to go in and negotiate
something less right before negotiations." (Ex. 82 at 55)

Whitfield asked Passo why Simon did not sign a "me too agreement to
the red book contract. (Ex. 6 at 124) Passo responded that Simon "doesn't like that
contract." (Ex. 6 at 124)

After Frates and Whitfield unequivocally rejected their proposal, Passo
and Simon stated that they would continue to work on the agreement. (Tr. 185, Ex. 82 at
56) Passo did not involve anyone else from the Local in his alleged continuing
negotiations with Simon.

Again, after the Trusteeship was imposed, Passo solicited Trustee
Wilkerson to approve an arrangement pursuant to which Local 631 would contact
Simon's company for workers after the Local 631 dispatch lists were exhausted. (Tr. 58,
62; Ex. 26 at 44-45)³³ Wilkerson recognized that the agreement Passo advocated for
Simon was substandard. He would not approve it. (Tr. 58, Ex. 26 at 44-50) The Passo-

____________
33 Wilkerson testified that Passo's proposal provided that if the Local could not fill the call with
people from the dispatch office,

Simon proposal presented to Wilkerson was much the same as the proposal presented to
Whitfield and Frates. (Tr. 59, Ex. 26 at 45)

Wilkerson also recalled under Passo's proposal that Simon's employees
would not immediately become members of Local 631, but in an elongated process. As
Wilkerson recounted, ". . . in reading his notes and listening to him [Passo], I said,
`You're wasting your time with me. You are not going to get anywhere with that piece of
crap with me'." (Ex. 26 at 46) ³⁴

Passo requested that the Local's attorney, Joseph Kaplon ("Kaplon"),
persuade Wilkerson to approve the agreement. (Tr. 59, Ex. 26 at 46) Wilkerson testified,
". . . So I got a hold of Joe Kaplon, had him come in and explained to Joe what I thought
the contract existed [sic] of, and he was absolutely in agreement with me that it should
not be a signed document by the local union." (T r. 59; Ex. 26 at 46) Wilkerson told
Passo, "I can't be a party to that. Period. You're breaking down conditions here......
(Ex. 26 at 52)

Passo claimed that he was unaware of the "most favored nations" clause in
the agreement until Wilkerson and the Local's attorney told him about it. (Tr. 47-71; Ex.
20 at 158-59) Hogan, who was Passo's regular advisor concerning United, testified that

he had never even read the then current Las Vegas agreement with trade show contractors
and was also unaware of the "most favored nations" clause in it. (Tr. 338)

After Wilkerson refused to enter into the substandard agreement because
of its terms, Passo falsely claimed to Wilkerson that high-ranking International officials
in addition to Hogan favored the contract. (Tr. 65, 91; Ex. 26 at 88, 92) Passo lied to
Wilkerson that both Santangelo and Scalf wanted Wilkerson to enter into Passo's
arrangement with Simon's company. (Tr. 65, Ex. 26 a5 88, 92)³⁵According to
Wilkerson,

(Tr. 65)
Both Santangelo and Scalf denied approving Passo's proposed agreement
with Simon's company. (Ex. 32 at 41-43); Ex. 12 at 98-101) Wilkerson told Passo that if

____________________________
35    During his sworn examination, Passo testified as follows:
Q:    Did you ever tell anyone that Mr. Santangelo wanted 631 to enter into an agreement with Mr.
Simon's company?
A:    I don't remember if I did.
Q:    Did you ever tell anyone that Mr. Scalf wanted Local 631 to enter into the agreement with Mr.
Simon's company?
A:    I don't remember if I did. If I did, it was probably to pump up the members or something, this
way it looks like we are getting new members.
Q:    Did Mr. Scalf want an agreement entered into with Mr. Simon's company?
A    I don't know if he wanted an agreement, he wanted teamsters.

(Ex. 20 at 187) Passo claimed not to recall whether he told Wilkerson that Santangelo approved the
agreement with Simon's company. He denied telling Wilkerson that Scalf approved the agreement. (Ex.
20 at 181-83) That Passo named Scalf as a supporter of the contract is supported by the transcript of the
September 10, 2000 conversation in which Passo told Whitfield that "Scalf's got it and they all went
through it and everything. . . ." (Ex. 128 at 33) Moreover, Simon told Frates that Scalf and Santangelo had
approved the contract. (Ex. 82 at 63)

Scalf wanted the agreement with Simon's company entered into, Scalf should sign the
agreement himself. (Ex. 26 at 92)

Frates and Whitfield informed Wilkerson that Passo tried to convince
them to support the agreement with Simon's company too. (Tr. 66, 96; Tr. 186) The
Trustee, Assistant Trustee and trade show business agent. all of whom did not know each
other prior to the Trusteeship (Tr. 70), saw Passo's proposal as substandard. (Tr. 92-93)
Only Simon, GES, and Hogan's brother, who was both a trade show contractor and
United Vice President, would have benefited from allowing Simon to profit through
supplying labor to GES and other contractors at below then current Teamster contract
rates.

Throughout the Trusteeship, Passo frequently reported to Hogan on the
progress of the arrangement with United. (Ex. 20 at 79) Passo, although not disclosing
to Scalf, his superior, the details of his arrangements with Simon, admitted he needed to
keep Hogan informed. (Ex. 12 at 65, 97-98; 100, 107; Ex. 20 at 67068; 80-81) Scalf was
not aware that Hogan, who reported to him as an International Representative, was
aligned with Passo to benefit United at the expense of Local 631 (Ex. 12 at 107)

Although Hogan was without any responsibility for Local 631, Passo said
he informed Hogan "[t]o let him [Hogan] know about the contract, how it was going, to
get some advice from him. I wasn't you know - never in the convention industry." (Ex.
20 at 79) When asked what he discussed with Hogan about the contract, Passo
responded, "[t]he language, what I need, probably some information with him, what does
he think." (Ex. 20 at 81)

The dinner among Passo, Simon, Whitfield and Frates occurred in May or
June 2000. (Tr. 179) During that period, Passo and Hogan had regular and frequent
contact. (Exs. 46-48, 57, 69-71) In May 2000, there were at least twenty-eight cellular
telex hone calls between Passo and Hogan. (Exs. 47-48, 57, 71) Hogan admitted that
Passo kept him updated on his conversations with Simon. (Ex. 15 at 93) In addition to
Pass,,,, Hogan also discussed the agreement with Simon. (Tr. 323, 370. Ex. 15 at 46, 95-
96) 'cased upon his discussions with Passo and Simon, Hogan described the agreement
with United as a "contract for services." (Ex. 311 at 4) Hogan claimed he did not know
what the wages were in the contract. (Tr. 363)

After the steakhouse meeting, Passo repeatedly urged business agent
Whitfield to endorse his arrangement with Simon's company. (Ex. 6 at 125) Passo
brought in Hogan to meet Whitfield during one of Hogan's trips to Las Vegas. (Ex. 6 at
232) At that time, Hogan instructed Whitfield that she "should listen to Dane Passo."
(Ex. 6 at 234)

In May 2000, Hogan introduced Simon to Joint Council 42 President
Santangelo in Las Vegas. (Ex. 32 at 24-25) Passo, Hogan, Santangelo and Simon met
for dinner at the Rio Hotel. (Ex. 32 at 24-25)

In May 2000, Hogan met with Barry Rappaport ("Rappaport"), the head of
Freeman's operations in Las Vegas. (Tr. 327-333, 502-503, Ex. 15 at 52; Ex. 20 at 199-
201) Hogan asserted the meeting was at the request of the Freeman representatives who
had concerns about the Local 631 Trusteeship. (Ex. 15 at 52-53, 120; Tr. 327-328)
Hogan asked Passo to attend the breakfast meeting in Las Vegas with Rappaport. (Tr.
327-28; Ex. 15 at 52, 55-56) Hogan did not invite the Trustee or inform the Trustee of

the meeting. (Ex. 15 at 122-123) Nor did Passo. (Tr. 57-58) Neither Hogan nor Passo
told Scalf about the meeting. (Ex. 12 at 146-147)

Passo, Hogan and Rappaport discussed the proposed arrangement with
Local 631 for Simon's company. (Tr. 332-333; Ex. 20 at 199-204) According to Passo,
Rappaport, an employer, explained to Passo that the concessions on wages ³⁶ and other
benefits were a bad idea because the contract negotiations for a new agreement were
coming up in 2001 and Passo's proposed arrangement would undermine the Local's
bargaining position. (Tr. 502-503; Ex. 20 at 203-04; Ex. 21 at 273) Neither Passo nor
Hogan suggested that United employees would be paid the prevailing contract rate.

Hogan was unconcerned with any impact the arrangements for Simon
would have on IBT members or United employees. (Tr. 332-333; Ex. 15 at 51-55) He
did not contradict Freeman's analysis that Passo and Hogan were damaging the Local's
bargaining position.

Neither Hogan nor Passo ever told Scalf, to whom they both reported,
about their meeting with a representative of Local 631 employer Freeman in Las Vegas.
(Ex. 12 at 145-146; Tr. 427-428) Scalf had never heard of Freeman. (Ex. 12 at 145-46)
Nor did Passo or Hogan ever tell the Trustee of their meeting with a Local 631 employer.
(Ex. 15 at 122-123; Tr. 376)

In addition to this meeting with Rappaport, Passo also met with other
Freeman representatives concerning United. (Tr. 195-96) Business agent Whitfield
testified that in approximately May or June 2000, Freeman management representative

________________
36 Passo testified that he may have told the Freeman representative, ". . that there was going to be a wage difference." (Ex. 20 at 204)

Dick Jamison informed her that Passo had spoken to him about using employees of
Simon's company. (Tr. 195-96; Ex. 6 at 195-97) Whitfield recalled that Jamison told
her:

(Tr. 196) Passo never told the Trustee, Assistant Trustee or convention industry business
agents about these discussions. (Ex. 6 at 196-198; Tr. 57-58)

In late July 2000, Frates had a telephone conversation with Simon during
which Simon described an agreement he had reached with Passo. (Ex. 82 at 56-57; 68-

(Ex. 82 at 68) Frates refused to provide Simon with such a list. (Ex. 82 at 68-69) A
major show, the MAGIC show, was booked for Las Vegas in August and thus, there was
a substantial opportunity in view for United to place its cheaper workers with GES. The
agreement with Simon that Passo submitted to the IBT Legal Department specifically
referred to employees hired after August l, 2000. (Ex. 84)

Shortly, after his call to Frates, while Hoffa was in Chicago for AFL-CIO
meetings in late July or early August 2000, Hogan arranged for himself, Hoffa, Passo and
Simon to have lunch at Harry Cary's restaurant. (Ex. 20 at 165-66; Ex. 15 at 66-71; Ex.
78 at 25-29) According to Passo, Hogan picked up Hoffa and Passo at the Drake Hotel

where Hoffa was staying. (Ex. 20 at 165-67) At the hearing, Hogan suggested that
meeting Simon at the restaurant was a coincidence. (Tr. 335-36)

According to Hogan, he, Passo and Simon gave Hoffa "a general overview
... that we were trying to do something with Rick . . . ." (Tr. 336, Ex. 15 at 69) Passo
claimed that the agreement between Simon's company and Local 631 was not discuss°d
at this lunch with the General President. (Ex. 20 at 168) Hoffa acknowledged that the
agreement was discussed. (Ex. 78 at 28) Hoffa did not understand that Passo had an y
role in it.

Shortly have this lunch meeting with Simon and Hoffa, on August 3,
2000, Passo returned to Las Vegas. (Exs. 128-29) Hogan arrived in Las Vegas on
August 13 and left on August 17, 2000. (Ex. 278) During that time Passo and Hogan
had at least two meals together, one on August 13 and the other on August 15. (Ex. 129)
While Hogan was in Las Vegas, there were seven calls from his cellular telephone to
Passo and eight calls from Passo's cellular telephone to Hogan. (Exs. 49 and 73)

During the month of August 2000, there were eighteen calls from Hogan's
cellular telephone to Passo and thirteen calls from Passo's cellular telephone to Hogan.
(Exs. 49, 72-73)³⁷

_________________
37 At 9:00 a.m. on August 15, 2000, Hogan called Passo. (Ex. 73) Hogan then called Simon at 9:08
a.m. and spoke for five minutes. (Ex. 73) The next call from Hogan's cellular telephone was at 9:25 a.m.
to the offices of GES's parent company, VIAD, in Phoenix, Arizona. (Ex. 73) Hogan knew GES had a
relationship with Simon's companies. (Ex. 15 at 51-55) Hogan then called Passo and spoke for eight
minutes. (Ex. 73) Hogan acknowledged that he "probably" spoke to Passo and Simon about the agreement
with United during these calls on August 15, 2000. (Ex. 15 at 107-111)

Approximately two weeks after the Hoffa lunch with Simon in Chicago,
and the same day as Hogan and Passo had dinner together in Las Vegas, on August 15,
2000, Hogan made a series of telephone calls to Simon, Passo and GES, the contractor
wanting to use Simon's company in Las Vegas, concerning the arrangement between
Local 631 and United. (Exs. 73, 129) Both Hogan and Passo were in Las Vegas on
August 15, 2000. (Exs. 128-29; 275-77) The MAGIC show, a major GES show, was to
begin on August 24, 2000 (Ex. 151)

On the same day as the series of telephone calls with Simon, Simon
purchased a ticket to the James R. Hoffa Memorial Scholarship Fund ("Hoffa Scholarship
Fund") golf outing in Las Vegas. (Ex. 85) Hogan was on the committee for this golf
outing. (Ex. 15 at 191) By check dated September 8, 2000, Simon's company, United
Maintenance Company, Inc., made a donation of $5,100 to the Hoffa Scholarship Fund.
(Ex. 85) This donation represented $300 for Simon's ticket to attend as a non-golfer and
golf fees of $1,200 each for Hogan's son, James Hogan; Hogan's friend, Bill Marovitz,
the Joint Council 25 lobbyist, and two other individuals. (Ex. 85, Ex. 86 at 32-33; Ex. 15
at 98) That night, Hogan and Passo had dinner together. (Ex. 129)

The activity among Passo and Hogan with Simon and GES increased as
the MAGIC show, one of the large trade shows in Las Vegas, drew near its dates, August
24 through September 3, 2000. (Ex. 215) During the MAGIC show, GES, the show's
general contractor, used United employees to perform Teamster work. (Tr. 66, 128-129,
191-194; Ex. 82 at 74-80; Ex. 26 at 60- 63; Ex. 6 at 88-89, Ex. 156 at 27, 47, 93-94; Ex.
149 at 59-62; Ex. 25 at 93-94; Ex. 203 at 19-20; Ex. 300 at 25-26) As a result, Local 631
filed grievances against GES. (Exs. 151 and 251)

On August 23, 2000, one day before the MAGIC show began, Hogan
called Passo from Chicago and spoke to him for sixteen minutes at 7:03 p.m. (EST) (Ex.
73) That same day, a few minutes later, at 5:23 p.m. (PST), there was a call from Passo's
cellular telephone to Simon's cellular telephone. (Ex. 49 at 57)

The next day, Passo left Las Vegas and returned to Chicago. (Ex. 128-
129) While there in Chicago, Passo contacted Simon, (Ex. 49 at 62) On Sunday, August
27, 2000 at 8:32 p.m. there was a call from Passo's cellular telephone to Simon. (Ex. 49
at 62) Two days later, Passo sent the agreement Simon drafted to Nicole Pollard
("Pollard"), an attorney in the IBT's General Counsel's office.

On August 29, 2000, Passo sent IBT attorney Pollard the agreement he
had reached with Simon. (Ex. 84) In his cover letter, Passo wrote:

(Ex. 84 at 2) On the same day Passo sent his agreement with Simon to Pollard, there was
a fifteen-minute call from Hogan's cellular telephone to Passo.³⁸ (Ex. 73)

When the proposal was described to International Vice President
Santangelo, and Wilkerson told Santangelo that he refused to approve the agreement,
Santangelo acknowledged he said, "I don't blame you. I mean, we would be all dead.
This would be crazy, you'd kill this whole industry." Passo did not disclose to Pollard
that Local 631 officials and the Local's attorney had rejected his arrangement with

________________
38 Simon would tell Frates the next day, August 30, that he and Passo had agreed to the contract.
(Ex. 82 at 57)

United. (Ex. 297 at 36-39) In addition, Passo never told Pollard that United was a labor
broker or a labor leasing company. (Ex. 297 at 23)

The memorialization of his arrangement with United that Passo submitted
to the IBT provided that all workers hired after August 1, 2000 would become "D" list
workers, a new class of employees. (Ex. 84)³⁹ Passo's and Simon's contract also
provided that, "[t]he `D' list workers shall supersede the placement of Supplemental
Workers." (Ex. 84)

(Ex. 84) In addition, Passo agreed that the protection for the Local against general
contractors hiring labor at less than contract rates from subcontractors such as United set
forth in the subcontracting provision in the red book agreement be eliminated. (Ex. 84)⁴⁰

According to the August 29, 2000 Passo-Simon arrangement, "D1"
workers were those that had less than 250 hours in the industry. (Ex. 84) The "D2"
workers were those that worked between 250 and 1,000 hours in the industry. (Ex. 84)

______________________
39 As noted, the red book contract had A list workers and Supplemental workers, who were
sometimes referred to as C Plus and C workers. (Ex. 4). The terms now provided:

(Ex. 84)

40 The agreement provided that Section B on page 12 of the red book agreement "does not apply."
(Ex. 84) Article 11, Section B(5) of the red book agreement is the subcontracting provision described. (Ex.
4 at 12)

Simon's D 1 workers would be paid $10.00 per hour "for the first 250 hrs in the industry.
During this training/trial period there shall be no payments to H + W or Pension Fund."
(Ex. 84) In contrast to Passo's concessions to Simon, under the red book agreement
Supplemental Workers who worked less than 150 hours in the industry were paid $12.49
per hour with benefit fund contributions of $7.90 per hour paid from the first hour
worked. (Ex. 4 at 11, 26, 27) Under Local 631's contract, effective June l, 2000,
Supplemental Workers who worked more than 150 hours were paid $13.69 per hour with
benefit fund contributions of $7.90 per hour. (Ex. 4 at 11; 26-27)

Under the submitted contract, Simon, and not the Local 631 dispatch
office, would control which of his employees worked. The agreement contained no
provisions for their selection and, due to the temporary nature of "United Temps"
workforce, Simon could ensure that none of his employees worked more than 250 hours
in the industry, thereby avoiding making any benefit fund contributions for his
employees. By not paying benefit contributions for the first 250 hours, Simon would
have saved more than $1,900 per employee. (Ex. 207)

In addition, pursuant to the Passo-Simon agreement, the "D2" workers
would be paid $11.00 per hour with benefit fund contributions. (Ex. 84) This was an
hourly wage $2.69 less than the red book agreement required Supplemental Workers with
only more than 150 hours in the industry to be paid. (Ex. 4)

Under the GES red book agreement then in effect, Local 631 had dispatch
records of all individuals referred to work and the Local 631 Security Fund had records
of benefit fund contributions for every hour worked. (Ex. 4 at 3, 26-27, Ex. 92 at 47) In
contrast, under the United agreement, Simon would control the dispatch and the benefit

fund contributions would not be required. (Ex. 84) Accordingly, Passo's agreement
undercut the Local's ability to ensure that the United employees received the pay
increases and that United made the benefit fund contributions required.

For all the "D 1" and "D2" workers, the contract eliminated time and one-
half pay for work performed between the hours of 10:00 p.m. and 6:00 a.m. (Ex. 84)
This was especially significant since the United d employees performed Teamster work at
night. (Ex. 6 at 236-37; Ex. 90 at 36) Under the red book agreement, for work
performed during the hours of 10:00 p.m. and 6:00 a.m., a Supplemental Worker with
less than 150 hours in the industry would be paid $12.49 per hour unless he had worked
more than eight hours in a day or 40 hours in a week at which point he could be paid time
and one half. (Ex. 4 at 11-13) It also provided that a Supplemental Worker with more
than 150 hours would have to have been paid time and one half, or $20.53 per hour, for
work performed between 10:00 p.m. and 6:00 a.m. (Ex. 4 at 11-13) Accordingly, Passo's
concession allowed United to pay its employees who worked more than 150 hours in the
industry at least $9.53 per hour less than the red book agreement provided for work
performed between the hours of 10:00 p.m. and 6:00 a.m. (Ex. 207)

In his arrangement with United, Passo also eliminated protections for
employees injured on the job. (Ex. 84) Passo, Hogan, and Simon ensured that this
section would "not apply to `D' list workers," i.e., United's employees. (Ex. 84)

On August 23, Passo called Simon. Passo called him again on August 27.
(Ex. 49 at 57, 62) On August 29, the day the contract was submitted to Pollard, Passo
spoke to Hogan for 15 minutes. (Ex. 73) He also spoke to Hogan on August 30, the day

Simon informed Frates again that he and Passo had reached an agreement. (Ex. 49) At
9:30 a.m. Frates returned a call to Simon. The call lasted fourteen minutes. (Ex. 214)
During this call, Simon again informed Frates that he and Passo had reached an
agreement that Simon and Passo wanted Frates to recognize. (Ex. 82 at 56--57)

Frates described the circumstances under which he made this call and the
call to Simon as follows:

(Ex. 82 at 56-57) Having met Santangelo and Scalf through Passo and Hogan, Simon
falsely told Frates that Santangelo and Scalf also had approved the agreement with
United. (Ex. 82 at 57, 63 )⁴¹ Santangelo and Scalf both denied approving the agreement
with Simon's company. (Ex. 32 at 41-43; Ex. 12 at 97-98)

Frates also testified that during this conversation he raised the most
favored nations clause in the governing contract with Simon. (Ex. 82 at 70) Simon, ". . .
indicated he talked to the GES and it was not a problem, which I strongly disagreed with.
And, if I remember correctly, he indicated GES would sign a waiver on the favored
nations clause."⁴² (Ex. 82 at 70) In response to Simon's claim of an agreement, Frates

__________________________
41 This was the same misrepresentation that Passo told Wilkerson. (Tr. 65, Ex. 26 at 88)
42 Simon did not claim United was outside the language of the clause.

told Simon, "to go pound salt." (Ex. 82 at 57) After Frates's telephone conversation
with Simon on August 30. 2000, there was a call from Passo's cellular telephone to
Hogan. (Exs. 49, 73) Nine days later, Frates was terminated as Assistant Trustee after he
contested the improper use of United employees by GES.

During the MAGIC show, GES, the general contractor, used United
employees to perform Teamster work. (Ex. 82 at 74-80, Ex. 26 at 60-63; Ex. 6 at 88-89;
Ex. 156 at 27, 47, 93; Ex. 149 at 59-62; Ex. 25 at 93; Ex. 203 at 19, Ex. 300 at 25-26)
This was done despite workers available to be dispatched through Local 631 to perform
this work. (Tr. 193-194; Ex. 26 at 63; Ex. 82 at 76; Ex. 6 at 72-73; Ex. 149 at 59-60)

Because she anticipated problems with GES, business agent Whitfield
requested Wilkerson and Frates to come to the Las Vegas Convention Center during the
MAGIC show. (Tr. 192-93; Ex. 6 at 72-73) Whitfield had "turned around" members
who worked on the show immediately prior to the MAGIC show so that they would be
available to work on the MAGIC show. (Ex. 6 at 73; Tr. 192) Whitfield had also
arranged to have members of the Stagehands union dispatched from Local 631 if the
Local 631 dispatch list was exhausted. (Ex. 6 at 89; Tr. 191-195)

In violation of the red book contract, GES brought in United employees to
do Teamsters work and refused to use the people Local 631 dispatched. (Ex. 6 at 73-74;
Tr. 192-194) Local member Alina Hernandez ("Hernandez"), a Spanish speaker,
approached some United employees who were doing Teamster work on the MAGIC
show. (Ex. 83 at 20) Hernandez explained:

United employees were also brought to the convention site in a United
van. (Ex. 6 at 82) The United supervisors would not allow Whitfield or the Local 631
steward to speak to the United employees (Ex. 6 at 87).

Wilkerson and Frates also observed United employees performing
Teamster work. (Tr. 66-67; Ex. 82 at 74-75, 79; Ex. 26 at 60-63). According to
Wilkerson, ". . . we speculated that Dane Passo and Simon or whoever they talked with
at GES, they worked a deal." (Ex. 26 at 63) Wilkerson knew workers were available to
be dispatched through Local 631 to do the work the United employees were performing.
(Ex. 26 at 63) Wilkerson explained, "[t]hat's why we ended up filing all those
grievances. Two reasons, anybody who was left on the list; two, we wanted the insurance
paid and the pension paid and the wages paid properly." (Ex. 26 at 63)

Whitfield testified that she and Frates argued with GES management
representatives about the use of the United employees on the MAGIC show. (Ex. 6 at 79-
80) The GES representatives informed them "we don't care" and stated that the Local
should file a grievance. (Ex. 6 at 79-80) Frates testified as follows:

At around the time of the MAGIC show, there were two calls, one on
August 23 and the other on August 27, from Passo's cellular telephone to Simon. (Ex. 49
at 57, 62) In addition, there were two calls, one on August 29, for fifteen minutes and the
second on September 1, for eleven minutes, from Hogan's cellular telephone to Passo.
(Ex. 73) During the MAGIC show, there was a call, on August 30, from Passo's cellular
telephone to Hogan. (Ex. 49 at 67)

Passo, who was in Chicago, kept in close contact with people at Local 631
during the MAGIC show. (Exs. 128-29) For example, on August 30, 2000, between
8:19 p.m. and 11:57 p.m., there were eight calls from Passo's cellular telephone to Local
631. (Ex. 49 at 67-68) These were after Passo's August 30 call to Hogan. (Ex. 4 at 67)
Vito Locascio had an office at the Local. (Ex. 147 at 101-103; Ex. 220 at 38-39)

Trustee Wilkerson and Assistant Trustee Frates directed the trade show
business agents to file grievances against GES for using employees of Simon's company
to perform bargaining unit work on the MAGIC show. (Tr. 66-67; Ex. 26 at 63-69; Ex.
82 at 80) The Local members were in an uproar over the contract violations. Business

agent Benboe received approximately thirty telephone calls from members complaining
about the United employees performing Teamster work on the MAGIC show. (Ex. 149
at 61-62) ⁴³ In connection with the MAGIC show, Benboe testified as follows:

On September 5, 2000, Local 631 sent a grievance to GES regarding the
United Employees performing bargaining unit work. (Ex. 152)⁴⁴ Frates stated: "I did
talk to Mr. Benboe about the grievance and told him, in my opinion, it was very, very
important that grievance be processed and very vigorously, and he was in total
agreement." (Ex. 82 at 83)⁴⁵ After the charges in this matter were filed, in September

44 It also appears that at least two additional grievances were filed against GES for the use of the
United employees on the MAGIC show. (Ex. 151)

45 When asked about the issues involved in the grievances filed against GES concerning the use of
the United employees, business agent Benboe testified as follows:

2000, the Local settled the MAGIC show grievances against GES concerning the use of
the United employees. (Tr. 194-195, 270-273)

After observing the United employees working on the MAGIC show,
Wilkerson told Passo that the Local was going to go after United. (Ex. 26 at 65)
Wilkerson also told Passo a grievance had been filed against GES. (Ex. 26 at 68) Three
days after Passo returned to Las Vegas, on September 8, 2000, based on Passo's urging,
Hoffa terminated Frates as Assistant Trustee. (Ex. 82 at 8)

When Hoffa terminated Frates as Assistant Trustee on September 8, 2000,
Trustee Wilkerson was out of town. (Ex. 26 at 111-112; 82 at 8) Hoffa made the
decision to remove Frates on information Passo provided. (Ex. 78 at 61; Ex. 12 at 214)
No one investigated Passo's claims regarding Frates before the termination. (Ex. 12 at
148-151; Ex. 78 at 61) Passo's claims were: