Protest Decisions

IN RE: CERTAIN CAMPAIGN CONTRIBUTIONS BY OFFICERS AND EMPLOYEES OF LOCAL UNION 853
Protest Decision: 2006 ESD 350
Issued: September 15, 2006

Pursuant to authority granted under Article I, Article XI, Section 2(b)(2), and Article XIII, Section 4, the Election Supervisor conducted an investigation of certain campaign contributions made by officers and employees of Local Union 853.

In Certain Campaign Contributions by Officers and Employees of Local Union 853, 2006 ESD 341 (August 22, 2006), we found Rules violations in the following particulars: 1) funds that were not raised under the Rules were nonetheless contributed to candidates for International office in the current election cycle; 2) such funds were pooled into a single account but insufficient records were maintained to identify the amounts the members contributed and the dates the funds were contributed; 3) the pooled account as the source of contributions made to various candidates for International office was improperly concealed through a process of disbursing funds in the pooled campaign account to members who, in turn, tendered personal checks in the same amounts they received from the pooled account, which were then contributed to candidates for International office; 4) personnel and facilities of the local union were improperly used to track the officers and employees who contributed vacation pay to the pooled account; 5) the vacation schedule for full-time officers and full-time business agents of the local union was improperly increased in November 2004 for the purpose of funding campaign contributions to candidates for International office; and 6) contributions of vacation cash-outs by full-time officers and full-time business agents to the pooled account was improperly made a requirement of continued employment.

We ordered a comprehensive remedy that included disgorgement of the improper contributions, a ban on further campaign contributions by specific named individuals, rescission of the increase in vacation benefits, and posting and mailing of a notice. We did not refer Aloise to the Independent Review Board, citing his cooperation with our investigation.

Local Union 853 and Rome Aloise, in his personal and official capacities, appealed only the aspects of our decision finding (a) that contributions to the Campaign '98 account "were required by Aloise, not merely requested" and (b) that "the increased vacation allotment the local union executive board approved in November 2004 on Aloise's motion was undertaken to fund the donation of vacation cash-outs in 2005" and to fund contributions to various candidates in the election. In discussions that preceded the oral hearing on the appeal, Aloise, through his counsel, requested that we refer this matter to the Independent Review Board for appropriate action on the two issues that the appeal raised. We have agreed.

Accordingly, we order the following remedy for the violations we found. This remedy replaces the remedy ordered in 2006 ESD 341. However, no aspect of the decision issued in 2006 ESD 341 is modified or varied except as expressly indicated here. Aloise and Local Union 853 have withdrawn their appeal of the decision in 2006 ESD 341, and, for that reason, we deem this matter RESOLVED.

We order the following relief:

1. Based on Aloise's proposal, we refer this matter to the Independent Review Board for whatever action, if any, it deems appropriate, including further investigation, concerning issues that are documented in or arise from this matter, including in particular an investigation into whether the increase in vacation entitlement adopted by the Local Union 853 executive board in November 2004 and subsequent contribution of vacation pay to the Campaign '98 account violate the Consent Order.

2. We order all recipients of campaign contributions identified in this decision to refund to the Campaign '98 account the funds they received, which we identify as follows:

As these contributions were improperly made, we require that they be disgorged.

3. Upon receipt by the Campaign '98 account of the disgorged campaign contributions identified in paragraph 2 of this remedy, we order Aloise to refund to Local Union 853 the sum of $15,720.00. We further order Local Union 853 to hold the sum of $15,720.00 in escrow until such time as the Independent Review Board completes any proceedings it may undertake arising from or relating to this matter.

4. We order Local Union 853 to post the notice attached to this decision on all union bulletin boards under the local union's jurisdiction through November 14, 2006. The purpose of the notice is to advise the local union membership of the Rules violations found here.

5. We further order Local Union 853 to revert to and, for the period the Rules remain in effect, adhere to the vacation schedule for full-time officers and full-time business agents of the local union that was in effect on November 7, 2004, the day before the local union executive board last voted to amend the schedule.

6. For the balance of the period the Rules remain in effect, we prohibit Aloise, Becker, Casqueiro, Christian, Easton, Harrington, Helfer, Morgan, Strelo, Tarantino, and Zucker from making any campaign contribution or legal and accounting contribution to any candidate for International office. This is a strictly remedial measure that is necessary to protect the integrity of the electoral process.

7. We order that no contributions may be made from the Campaign '98 account to any candidate for International office. This is a strictly remedial measure that is necessary to protect the integrity of the electoral process.

8. We further order that none of the proceeds from Tarantino's raffle winnings may be removed from the Campaign '98 account or otherwise spent, until further order of the Election Supervisor.

9. While we order the International officer candidates who received the improper contributions from the Campaign '98 account to disgorge those contributions, we recognize that simple disgorgement does not provide a complete remedy. The Hoffa-Mack campaign, in particular, received nearly $6,000 from the Campaign '98 account, most of which came early in the election cycle and provided money the Hoffa-Mack campaign used to hold fund-raising events that produced substantial campaign contributions. The Hoffa-Mack campaign was able to reap a significant harvest using the improper contributions as seed. We are conducting additional investigations of funding mechanisms in place at other local unions that produced campaign contributions for the Hoffa-Mack campaign. We reserve any additional remedy for the Hoffa-Mack campaign and other International officer candidates to the date those investigations are complete.

10. All remedies imposed by this decision that require persons to take affirmative steps must be completed within 3 working days of receipt of this decision. Affidavits of compliance must be forwarded to our office in Washington, D.C. within 2 working days of compliance.

Except for Local Union 853 and Aloise, who have waived their appellate rights under the Rules on this matter, any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within two (2) working days of receipt of this decision. The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Supervisor in any such appeal. Requests for a hearing shall be made in writing, shall specify the basis for the appeal and shall be served upon:

Kenneth Conboy
Election Appeals Master
Latham & Watkins
885 Third Avenue, Suite 1000
New York, New York 10022
Fax: (212) 751-4864

Copies of the request for hearing must be served upon the parties, as well as upon the Election Supervisor for the International Brotherhood of Teamsters, 1725 K Street, N.W., Suite 1400, Washington, D.C. 20007-5135, all within the time prescribed above. A copy of the protest must accompany the request for hearing.

Richard W. Mark
Election Supervisor
cc: Kenneth Conboy
2006 ESD 350

NOTICE TO ALL MEMBERS OF LOCAL UNION 853
FROM IBT ELECTION SUPERVISOR RICHARD W. MARK

The Rules for the 2005-2006 IBT International Union Delegate and International Officer Election ("Rules") permit members to make campaign contributions to any candidate for International office. However, the Rules require that "only contributions which are properly solicited, made, accepted and reported under the Rules may be expended or used by candidates, slates or independent committees" for the 2005-2006 International Union election.

The Election Supervisor has found that certain officers and employees of Local Union 853 made campaign contributions to candidates for International office and that the contributions were reimbursed to the contributors from an account consisting of money pooled together from different individuals' contributions made over many years. Campaign contributions were also made from the pooled account and attributed to specific individuals. The use of the pooled account concealed the true source of the reported contributions; in addition, the pooled account included funds raised before the Rules became effective.

The Election Supervisor will not tolerate such improper contributions.

Accordingly, the Election Supervisor has ordered the improper contributions be disgorged by the candidates that received the contributions.

The Election Supervisor has also ordered this notice posted on all union bulletin boards under the local union's jurisdiction for a period through November 14, 2006.

Richard W. Mark
Election Supervisor

Dated: September 15, 2006

This is an official notice prepared and approved by Richard W. Mark, Election Supervisor for the International Brotherhood of Teamsters. It must remain posted until November 14, 2006 and must not be defaced or covered up.

DISTRIBUTION LIST (BY EMAIL UNLESS OTHERWISE SPECIFIED):

Bradley T. Raymond, General Counsel
International Brotherhood of Teamsters
25 Louisiana Avenue, NW
Washington, DC 20001-2198
braymond@teamster.org

David J. Hoffa
Hoffa 2006
30300 Northwestern Highway, Suite 324
Farmington Hills, MI 48834
David@hoffapllc.com

Barbara Harvey
645 Griswold Street
Suite 3060
Detroit, MI 48226
blmharvey@sbcglobal.net

Ken Paff
Teamsters for a Democratic Union
P.O. Box 10128
Detroit, MI 48210
ken@tdu.org

Daniel E. Clifton
Lewis, Clifton & Nikolaidis, P.C.
275 Seventh Avenue, Suite 2300
New York, NY 10001
dclifton@lcnlaw.com

Stephen Ostrach
1863 Pioneer Parkway East, #217
Springfield, OR 97477-3907
saostrach@gmail.com

Rome Aloise
2100 Merced Street, Suite B
San Leandro, CA 94577

Duane Beeson
Beeson, Tayer & Bodine
1404 Franklin Street, 5th floor
Oakland, CA 94612
dbeeson@beesontayer.com

Patrick J. Szymanski
1900 L Street, N.W.
Washington, D.C. 20036
szymanskip@msn.com

Hoffa 2006
28580 Orchard Lake Road, #250
Farmington Hills, MI 48334
lankford@kcktcpa.com

Hoffa-Johnson 2006
2932 Oak Ridge Drive
Herst, TX 76054
Knbryant745@sbcglobal.net

Fred Gegare
2166 Cathedral Forset Drive
Green Bay, WI 54313
nnnzuel@yahoo.com

John Murphy
20 Piedmont Street
Arlington, MA 02476
jmdomicile@rcn.com

Hoffa-Hobart 2006
P.O. Box 58004
Tukwila, WA 98138
teamsterdoug@comcast.net

Ferline Buie
10503 Vista Gardens Drive
Bowie, MD 20720
Hoffabuie2006@aol.com

Cipriani 2006
145 Mashie Drive
Summerfield, NC 27358
Scombs07@hotmail.com

Henry Perry, Jr.
4068 Delsa Circle
Memphis, TN 38116
wpilot@bellsouth.net

Christine Mrak
2357 Hobart Avenue, SW
Seattle, WA 98116
cmm@wmblaw.net

Maureen Geraghty
The Geraghty Law Firm
426 Old Salem Road
Winston-Salem, NC 27101
mg@geraghtylawfirm.com

Bruce Dubinsky
Klausner Dubinsky & Associates
4520 East West Hwy, Suite 640
Bethesda, MD 20814
bdubinsky@kd-cpa.com

Keith Neus
Klausner Dubinsky & Associates
4520 East West Hwy, Suite 640
Bethesda, MD 20814
kneus@kd-cpa.com

Jocelyn Yee
1725 K Street, NW Suite 1400
Washington, DC 20005
jyee@ibtvote.org

Jeffrey Ellison
510 Highland Avenue, #325
Milford, MI 48381
EllisonEsq@aol.com