Monday, January 18, 2010

Union leaders rips off members. Media yawns

Maybe this falls under the "tell me something new" department.......

LIUNA Local 147 is an elite underground construction unit known as the “Sandhogs.” With roots going back well over 100 years, the heavily Irish-ethnic 1,000-member union represents the workers who dig New York City’s subway, sewer and water tunnels, often at hundreds of feet beneath the ground. It was the sandhogs who did the excavation work for such engineering marvels as the Lincoln, Holland, Queens-Midtown and Brooklyn-Battery Tunnels. Their massive ongoing main project, the Third Water Tunnel, when completed in 2020 at a projected cost of roughly $6 billion, will carry 1.3 billion gallons of water per day for 9 million area residents and ensure that water keeps running should either of the first two tunnels fails. It’s grueling and dangerous work. And the workers are paid well. They also expect to collect their full retirement benefits. But thanks to the alleged actions of Melissa King, there’s a distinct possibility they won’t.

King, 58, a resident of Irvington, N.Y., through her home-based company, King Care LLC, handled all administrative functions for Sandhog benefit funds since 1980, and at an annual official compensation that eventually reached $540,000. That’s pretty lavish even for an international union president. Apparently, it wasn’t lavish enough. Starting in 2002, prosecutors charge, King illegally transferred about $42 million from three union accounts covering pensions, vacation pay and other benefits to accounts she personally controlled. A large portion of it, to put it lightly, was unrelated to union business. Of the alleged thefts, $7.2 million went to pay off American Express bills, more than $3 million to equestrian businesses (apparently she was grooming her daughter for an equestrian career), and $713,500 to a jewelry business. The criminal complaint states she also transferred $500,000 to an E*Trade Securities account without union authorization.



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