Laborers for JUSTICE and Illinois Police and Sheriff's News © 2000. Not for republication on the internet.
| INVESTIGATIONS OFFICER | ) |
|
Claimant, |
) |
|
v. |
) DECISION OF THE MONITOR |
| JOHN F. DUFF, III | ) |
| a/ka JOHN F. DUFF, JR. | ) |
| a/k/a JACK DUFF | ) |
|
Respondent. |
____________________________________
This decision emanates from the voluntary settlement in the action filed by the plaintiff, United States of America (the “Government”), under the Civil Racketeer Influenced and Corrupt Organizations provisions of the Organized Crime Control Act of 1970, Title 18 U.S.C., §§ 1961, et seq., (“RICO”), against defendants, Hotel Employees and Restaurant Employees International Union (“HEREIU”), and the HEREIU General Executive Board (“GEB”) embodied in the voluntary consent order entered September 5, 1995 (the “Consent Decree”).
As part of the Consent Decree, the defendants acknowledge that, historically, the HEREIU and certain of its constituent entities have suffered from an externally induced corruption problem. The Government and the defendants agreed that within the HEREIU: (1) any vestiges of an externally induced corruption problem should be eliminated; (2) union democracy should be promoted and protected; (3) integrity in every aspect of the HEREIU’s operations and its constituent entities should be fostered; and (4) the entire membership should be fairly represented.
The Consent Decree’s remedial objective is that the HEREIU and its constituent entities be free from the direct or indirect influence of any organized crime group (“OCG”) or threat of such influence now and in the future.
The Government and the HEREIU agreed to the appointment of a Court-Appointed Monitor (the “Monitor”) and conferred broad power upon the Monitor to achieve the Consent Decree’s remedial objectives. The Consent Decree grants the Monitor, inter alia, the right and power to remove, suspend, expel, fine, or forfeit the benefits (with the exception of vested employee retirement benefits subject to Title I of the Employee Retirement Income Security Act -- Title 29 U.S.C., § 1001, et seq.) of any officer, representative, agent, employee, person holding a position of trust or member in the HEREIU and its constituent entities when such person engages or has engaged in actions or inactions which: (i) violate the injunctive prohibitions of the Consent Decree; (ii) violate any criminal law involving the operation of a labor organization or employee benefit plan; or (iii) further the direct or indirect influence of any OCG or the threat of such influence now or in the future.
In order to discharge his disciplinary duties, the Consent Decree grants the Monitor the same rights and authority as the HEREIU General President, the HEREIU GEB, and any other HERE representative, as well as full authority derived from any and all provisions of law.
When exercising his disciplinary authority, the Consent Decree requires that the Monitor provide the respondent(s) with written notice of the charges and an opportunity to be heard. In this instance, the charge was served on John F. Duff, III, a/k/a John F. Duff, Jr., a/k/a Jack Duff (“J. F. Duff, Jr.”) via certified mail on or about October 19, 1997.
My October 16, 1997, letter to J. F. Duff, Jr., accompanying the charge informed him that he had twenty (20) days to file an answer and request a hearing on the charge. IX1A.
Mr. Duff failed to file an answer and did not request a hearing on the charge. On November 14, 1997, Mr. Duff’s attorney, James R. Streciker, wrote the Investigations Officer and indicated that Mr. Duff did not intend to respond to the charges. IX1B.
I have deferred issuing a decision on the charges against J. F. Duff, Jr., until now in order to complete investigations and proceedings relating to other HERE Local 1 employees and/or International Organizers (“IO”) assigned to HERE Local 1.
I. THE CHARGES AGAINST THE RESPONDENT
The Investigations Officer, for his charges, alleged that Respondent J. F. Duff, Jr.: (1) knowingly associated with members and/or associates of organized crime from at least 1986 until the present; (2) embezzled HEREIU monies by causing the payment of salary to himself as a full-time employee of the HEREIU during the period from at least January 1, 1992, until December 15, 1996, when, in truth and fact, he performed no meaningful services for the HEREIU; (3) caused false statements and entries to be made in his organizer weekly reports (“OWR”), namely, that he was visiting HERE Local 1 in Chicago, Illinois attending staff meetings with regard to current projects in Chicago, or working in the HERE Local 1 office with regard to current projects when, in truth and fact, he performed no meaningful services for HERE Local 1 or the HEREIU and only occasionally visited HERE Local 1's offices in Chicago; and (4) obstructed the Office of the Monitor’s efforts to effectuate the terms of the Consent Decree by refusing to be interviewed or deposed concerning his alleged association with OCG members and associates and his employment as a HEREIU IO.
II. FINDINGS OF FACT
A. Introduction
1. At all times relevant to these charges, Respondent J. F. Duff, Jr., held the following positions:
(a) From August 1, 1989, until December 15, 1996, J. F. Duff, Jr., was employed full-time by the HEREIU as an IO. As an IO, J. F. Duff, Jr., received a salary of approximately $35,125 in 1996. From approximately July 1, 1990, until his resignation, J. F. Duff, Jr., was assigned to work at HERE Local 1, 55 W. Van Buren Street, Chicago, Illinois.
(b) From at least January 1, 1989, until the present, J. F. Duff, Jr., was also ostensibly employed full-time as the Secretary-Treasurer of the Liquor & Wine Sales Representatives, Warehousemen, Clerical, Distillery, Rectifying, Tire, Plastic and Allied Workers Union Distillery Workers Local 3, an independent union as of July 19, 1995, and/or its predecessor, Distillery, Wine & Allied Workers International Union, AFL-CIO Distillery Workers Local 3 (hereinafter collectively referred to as “Distillery Workers Distillery Workers Local 3"), 1640 W. Van Buren Street, Chicago, Illinois 60612. As Secretary-Treasurer of Distillery Workers Distillery Workers Local 3, J. F. Duff, Jr., received a salary of approximately $88,333 in 1996. IX2, Declaration of Special Agent Robert Burton, U.S. Department of Labor, Office of Inspector General (“Burton Declaration”), ¶¶ 5-6.
(c) From January 1, 1996, until March 31, 1996, J. F. Duff, Jr., was also ostensibly employed by American Management and Consulting, Inc., 178 N. Halstead, Chicago, Illinois, and received wages of approximately $6,000. IX2, Burton Declaration, ¶ 7.
(d) From January 1, 1996, until December 31, 1996, J. F. Duff, Jr., was also ostensibly employed by Remedial Environmental Manpower, Inc., 178 N. Halstead, Chicago, Illinois, and received wages of approximately $72,610. IX2, Burton Declaration, ¶ 7.
B. J. F. Duff, Jr.’s, Family Businesses
2. At all times relevant to these charges, J. F. Duff, Jr.’s, father and mother, John F. Duff, Sr., and Patricia Green Duff (“P.G. Duff”), and his brothers, Patrick Duff and James M. Duff, operated a number of corporations engaged in the business of temporary labor, maintenance and waste disposal out of offices located at 174-178 N. Halstead Street, Chicago, Illinois. These corporations include the following:
|
NAME OF COMPANY |
DATE OF INCORPORATION |
PRESIDENT
|
|
Windy
City Labor Service, Inc. |
June 15, 1982 |
P.G. Duff |
|
Windy
City Maintenance, Inc. |
May 11, 1989 |
P.G. Duff |
|
American Management
& Consulting, Inc. |
January 11, 1996 |
James M. Duff |
IX2, Burton Declaration, ¶¶ 9-10.
3. At all times relevant to these charges, Respondent J. F. Duff, Jr.’s brothers, Patrick and James Duff, were President and Vice-President, respectively, of Distillery Workers Distillery Workers Local 3, an independent union with is principal offices located at 1640 West Van Buren Street, Chicago, Illinois. Prior to July 19, 1995, Distillery Workers Distillery Workers Local 3 was affiliated with and chartered by the Distillery, Wine & Allied Workers International Union, AFL-CIO. Distillery Workers Distillery Workers Local 3 had 1,451 members as of December 31, 1995. IX2, Burton Declaration, ¶¶ 5 and 8.
4. Former General President E.T. Hanley and J. F. Duff, Jr.’s father, John Duff, Sr., have been long standing friends for many years. IX3 at pp. 204-205. Their families each have vacation homes in the Land O’Lakes, Wisconsin area. J. F. Duff, Jr., and his brothers, Patrick and James Duff, are also close personal friends of Thomas W. Hanley, (“T. W. Hanley”), former General President E.T. Hanley’s son, the HEREIU’s Director of Organization and President of HERE Local 1 until his suspension from those positions on August 31, 1998. IX5, Deposition of T. W. Hanley (“T. W. Hanley Deposition”), pp. 226-227.
C. J. F. Duff, Jr.’s, 1989-1991 Employment
With the HEREIU
5. The HEREIU is a labor organization which represents approximately 240,000 members employed by various businesses engaged in industries affecting interstate and foreign commerce, particularly those employed in the culinary and hotel industries. The HEREIU has Executive Offices located at 1219 28th Street, N.W., Washington, D.C., and regional offices located at 55 West Van Buren Street, Suite 400, Chicago, Illinois 60605; 493 North Palm Canyon Drive, Palm Springs, California 92262; and 1140 de Maisonneueve Boulevard West, Suite 1150, Montreal Quebec, Canada H3A 1M8. The HEREIU is comprised of various constituent entities, including HEREIU Districts, District Councils and approximately 130 local unions located throughout the United States, Canada and the Virgin Islands. All constituent entities are under the jurisdiction of the HEREIU and the GEB.
6. During the period from September 1989 until January 1991, J. F. Duff, Jr., received a salary of $26,000, plus a per diem allowance of $25.00 per day from the HEREIU. In January 1991, J. F. Duff, Jr.’s, per diem allowance was discontinued and his salary was increased to $35,125. J. F. Duff, Jr.’s, salary as a HEREIU IO remained at $35,125 annually from January 1991 until his December 15, 1996, resignation.
7. By former General President E.T. Hanley’s directive, IO’s were required to prepare an OWR by each Saturday for the previous week's activities and to submit such OWR to the HEREIU Director of Organization. Such OWRs required the IO to list the cities visited for each day of the week, the activities undertaken, and a breakdown by type of activity of the percentage of time spent on direct organizational work, local union servicing, grievances and arbitration, and other activities. The OWR also requires the IO to list current organizational campaigns by name of company, the company’s location, the number of employees and certain additional information. The OWR also contains a space for an address where acknowledgment of the report will reach the IOs. It is the HEREIU's policy not to pay IOs their salary if they are delinquent in filing such reports. IX2, Burton Declaration, ¶ 16.
1989-1990 Assignments in Baltimore, Maryland and Miami, Florida
8. Former General President E.T. Hanley testified that he hired J. F. Duff, Jr., to work on the 1991 campaign to organize the food and beverage employees of the Alton Belle Casino in Alton, Illinois, the first riverboat casino licensed to operate in Illinois. According to J. F. Duff, Jr.’s, OWRs, however, he was assigned to HERE Local 7 in Baltimore, Maryland during the period from August 1, 1989, until approximately June 1, 1990, with the exception of two weeks in February 1990 when he was in Miami, Florida allegedly at the direction of former General President E.T. Hanley. Former General President E.T. Hanley testified that he had no recollection of J. F. Duff, Jr.’s, work in Baltimore, Maryland and/or Miami, Florida prior to the Alton Belle I campaign. IX3 at pp. 215-216.
July 1990 Assignment to HERE Local 1 in Chicago, Illinois and the Alton Belle I
9. According to a July 26, 1990, memo from former General President E.T. Hanley to Vincent J. Sirabella, then, the Director of Organization and J. F. Duff, Jr.’s, immediate supervisor, J. F. Duff, Jr., was transferred from HERE Local 7 in Baltimore, Maryland to HERE Local 1 in Chicago, Illinois effective July 1, 1990. IX4, at pp. 215-216. J. F. Duff, Jr.’s, OWRs indicate that he was assigned to HERE Local 1 in Chicago from June 1990 until his resignation on December 15, 1996.
10. During the periods from approximately March 1991 until approximately September 1991, and from September 1994 until December 1994, the HEREIU and the Seafarers International Union (“Seafarers”) engaged in competing campaigns to organize the Alton Belle Casino’s food and beverage employees (hereinafter “Alton Belle I” & “Alton Belle II”, respectively). In approximately September 1991, the Alton Belle Casino recognized the Seafarers as the collective bargaining representative for its employees. In July 1994, the National Labor Relations Board (“NLRB”) found that the Alton Belle Casino’s recognition of the Seafarers was premature and ordered an election. From September 1994 until December 1994, the HEREIU and the Seafarers competed against one another in a second campaign, Alton Belle II, to organize the Alton Belle Casino employees. At the December 1994 NLRB election, the Seafarers won. IX26A, Interview of Allen Kearney, p. 3; IX45, Interview of Tim Luebbert, p. 2.
11. According to J. F. Duff, Jr.’s, OWR, he engaged in organizing activities in Alton, Illinois on August 27 and 28, 1991. His OWR for October 31, 1991, reflects that he engaged in staff meetings and working on current projects at HERE Local 1. It also contains his last reference to the Alton Belle I campaign, namely, “Alton-River Boat Gambling”. In addition, several HERE Local 1 employees, including T. W. Hanley, Terrence P. Maloney and James Davern, testified that J. F. Duff, Jr., worked on the Alton Belle I campaign. In view of this evidence that J. F. Duff, Jr., did perform services for the HEREIU on the Alton Belle I campaign in 1991, and despite the fact that he was ostensibly employed full-time as Secretary-Treasurer of Distillery Workers Distillery Workers Local 3, I find that the Investigations Officer has failed to prove J. F. Duff, Jr., was a “no show” HEREIU employee during 1989-1991.
D. J. F. Duff, Jr.’s, Association With OCG
Members and Associates
12. There has existed for many years a nationwide OCG in the United States known as LaCosa Nostra (LCN) or the "Mafia" among other names. The LCN is a secret society of individuals who are associated for the purposes of engaging in criminal conduct. This organization operates throughout the United States through OCG’s known as "Families". There are LCN Families headquartered in a number of large American cities, including New York; Chicago, Illinois; Cleveland, Ohio; and Milwaukee, Wisconsin. IX7, 1990 Chicago Crime Commission Report, “Organized Crime In Chicago”, pp. 2-3.
13. Since well before the early 1970's, the Chicago LCN or “Outfit” has been engaged in a wide variety of on-going income producing criminal activities. These criminal activities include illegal gambling, loan sharking, extortion, labor racketeering, armed robberies, sports bookmaking, and collection of a "street tax". IX7, 1990 Chicago Crime Commission Report, pp. 3-5. IX8, 1997 Chicago Crime Commission Report, “The New Faces of Organized Crime”, pp. 8-11.
14. The Chicago Outfit operates through groups called "Crews", which engage in LCN-related illegal activities within loosely-defined geographical areas in the Chicago, Illinois region. Crews consist of soldiers, as well as associates connected to the Chicago Outfit, and are under the immediate direction of a Street Boss or "Capo". In terms of hierarchy structure, the Chicago Outfit includes (in descending order) the Boss, the Underbosses, the Advisors (who advises the Boss), the Street Bosses, and the Lieutenant. IX7, 1990 Chicago Crime Commission Report, p. 12; IX8, 1997 Chicago Crime Commission Report, pp. 8-11.
15. At all times relevant to these charges, the reputed boss of the Chicago Outfit was John DiFronzo. The reputed Underbosses were Anthony Centracchio, John Monteleone and Joseph Andriacchi. IX8, 1997 Chicago Crime Commission Report, p. 11.
16. According to the Chicago Crime Commission, a number of different "Street Crews" operated in the Chicago area during times relevant to these charges, including: (1) the Marco D’Amico, a/k/a Elmwood Park Crew; (2) the John Matassa, formerly Vince Solano, North Side Crew; (3) the James LaPietra, a/k/a 26th Street/Chinatown Crew; (4) the Rocco Infelise a/k/a Cicero Crew; (5) the Dominic Cortina, a/k/a West Side Crew; and (6) the Vincent J. Cozzo, a/k/a Grand Avenue Crew. IX7, 1990 Chicago Crime Commission Report, p. 12. These Crews, as part of their illegal activities, have influenced the affairs of labor unions such as the Laborer's International Union of North America ("LIUNA") and the HEREIU. IX8, 1997 Chicago Crime Commission Report, pp. 24-33.
(a) At all times relevant to these charges, the Infelise Street Crew was one of the “Crews” of the Chicago Outfit. IX7, pp. 7-8 and 12. The Infelise Street Crew provided income to its members through: (1) the operation of various illegal gambling businesses such as sports bookmaking, parlay cards, and casino games; (2) the collection of “juice” or interest on usurious loans made by the Crew; (3) the collection of “street tax” or money from individuals engaged in illegal or quasi-illegal businesses; and (4) the use of these proceeds in the criminal enterprise and other business ventures. To conceal their actions, the Infelise Street Crew also provided monetary payments to Crew members who refused to testify against the Crew, instructed potential grand jury witnesses to lie, and attempted to and bribed various police officers, judges, and other political officials. See United States v. Infelise, 835 F. Supp. 1466, 1472 (N. D. Ill. 1993); IX7, 1990 Chicago Crime Commission Report, p. 8.
(b) On or about February 7, 1990, a grand jury in the United States District Court for the Northern District of Illinois returned a 105-page indictment, United States v. Infelise, et al., 90 CR 87-1-20, against Infelise and 19 other members of the Infelise Street Crew, alleging various counts of racketeering, gambling, extortion, tax violations, murder, and bribery. IX9A-9E. Infelise and several other defendants were denied bail while awaiting trial. IX9D-F. The indictment was the subject of widespread publicity. The then Attorney General of the United States, Richard Thornburgh, traveled to Chicago to hold a press conference regarding its return. IX9A and 9B.
(c) On or about March 10, 1992, Infelise was found guilty after a jury trial of various racketeering, gambling and tax offenses. On August 19, 1993, Infelise, then 71 years old, was sentenced to 63 years imprisonment -- the maximum sentence that could be imposed. IX9BB. See also United States v. Infelise, 835 F. Supp. 1466 (N.D. Ill. 1993).
(d) During the period from 1986 until 1993, Infelise and the activities of the Infelise/Ferriola/Cicero Street Crew were the subject of approximately 40 articles that appeared in the Chicago area newspapers. IX8A-K; IX9A-9BB. A number of these articles recounted testimony from government witnesses about murders, beatings and payoffs to public officials, allegedly by members of the Infelise Street Crew. IX9E, 9H-9BB.
J. F. Duff, Jr.’s, Knowing Association With Chicago Outfit Members and/or Associates
17. In approximately February 1992, J. F. Duff, Jr., was called by the government as a witness pursuant to a grant of use immunity under Title 18 U.S.C., §§ 6001 et. seq. in the trial of U.S. v. Infelise, 90 CR 87-1-20. J. F. Duff, Jr., admitted that he had gambled on sporting events, including football, basketball and baseball, with approximately 10 different bookmakers during the period 1975-1989. In one week during the spring of 1986, J. F. Duff, Jr., lost approximately $6,000 gambling on sporting events with Robert Cavone, an Infelise Street Crew bookmaker. After stalling on repaying approximately $4,000 of the $6,000 debt, J. F. Duff, Jr., was visited on two occasions by Infelise and Scott Stevenson, a family friend. J. F. Duff, Jr., testified that Infelise said he, Infelise, had paid J. F. Duff, Jr.’s, debt as a favor to J. F. Duff, Jr.’s, father. 1/ At the second meeting, J. F. Duff, Jr., agreed to repay Infelise at the rate of $350 per month. J. F. Duff, Jr., testified he did repay the debt over a period of approximately 18 months. IX10.
18. On or about November 4, 1993, J. F. Duff, Jr., was arrested at approximately 1:15 a.m. in Miami Beach, Florida for resisting arrest without violence and for corruption by threats against a public servant. At the time of the arrest, the driver of a 1993 Cadillac and J. F. Duff, Jr., a passenger, were attempting to pick up a prostitute and, as a result, were blocking traffic. While in the process of being handcuffed, J. F. Duff, Jr., “calmly and coolly” told the arresting officer, Miami Beach Police Department Officer Guillermo Berrier, that if he did not remove the handcuffs immediately and let him go, he, J. F. Duff, Jr., would find the officer and his family and kill them one by one while the officer watched. J. F. Duff, Jr., told the officer that he had better listen because he, J. F. Duff, Jr., had “connections with organized crime in Chicago”. IX11.
J. F. Duff, Jr.’s, Participation in Hollywood, Florida Bookmaking Operation and Knowing Association With Florida-Based OCG Members and Associates During 1992 Through 1996
19. Richard Lugano testified during a deposition that he managed a Hollywood, Florida area sports bookmaking business for various periods during 1981 through 1994.
(a) From approximately 1981 until approximately 1985, Mr. Lugano ran a bookmaking business out of four rooms in the Diplomat Hotel in Hollywood, Florida. Mr. Lugano was paid a salary by Luther James 2/, a Louisville, Kentucky bookmaker, while Anthony Accetturo, a reputed Lucchese LCN family member, was responsible for collections and police protection. Deposition of Richard Lugano (hereinafter “Lugano Deposition”). IX12, at pp. 7-12. According to Mr. Lugano, except for occasional visits to Chicago, J. F. Duff, Jr., also resided at the Diplomat Hotel and handled payments and collections relating to the bookmaking business’ Chicago area bettors. Deposition of Richard Lugano, IX12, at pp.14-17.
(b) After living in California for approximately 5 years, Mr. Lugano moved back to Hollywood, Florida in approximately May 1990. From May 1990 until approximately April 1991, Mr. Lugano again ran Mr. James’ bookmaking business, first, from an apartment building at 301 Roosevelt Avenue and, later, from a four-bedroom house on 19th Avenue. By this time, a man named Augie Corrao and his associate, Vic Lapi, both reputed members of the Gambino LCN crime family, were responsible for collections instead of Accetturo. 3/ Two additional individuals, Joseph and Thomas DeMarco, worked as collectors for Mr. Lapi. According to Mr. Lugano, J. F. Duff, Jr., continued to handle payments and collections for Chicago area bettors during May 1990 through April 1991. IX12, at pp. 19-27.
(c) From approximately April 1991 until approximately May 1993, Mr. Lugano again lived in California. At the request of Mr. James, Mr. Lugano moved back to Hollywood, Florida to supervise the bookmaking operation in May 1993. According to Mr. Lugano, the bookmaking operation was then being run out of a number of apartments at the Sea Air Towers (“SAT”), 3725 South Ocean Drive in Hollywood, Florida. From May 1993 until approximately August 1994, Mr. Lugano, J. F. Duff, Jr., J. F. Duff, Jr.’s, father and mother, J. F. Duff, Sr., and Patricia Green Duff, Mr. Corrao and Mr. Lapi all lived at the SAT. J. F. Duff, Jr., spent 80 percent of his time at the SAT, while the remaining 20 percent was spent in Chicago, Illinois and elsewhere. 4/ IX12 at pp. 30-34.
20. From approximately December 1993 until approximately September 1994, the FBI conducted an investigation of the sports bookmaking operation being run out of the SAT. As part of this investigation, an undercover FBI agent placed bets with the SAT bookmaking operation, pen register devices were placed on pertinent telephone lines and approximately 50 conversations were recorded. The pen registers and recorded conversations corroborate Lugano’s testimony that he, J. F. Duff, Jr., and others were involved in a sports bookmaking operation using the telephone lines in question. J. F. Duff, Jr., was overheard in approximately fifteen (15) conversations during the February through September 1994 period, mostly discussing betting lines. IX13, Declaration of Eugene Flynn (“Flynn Declaration”), ¶ 3.
21. Eugene Flynn, an investigator for the Office of the Monitor and former FBI Special Agent, examined certain SAT records and interviewed eleven (11) present or former SAT employees and/or residents in an attempt to ascertain whether the SAT was J. F. Duff, Jr.’s, principal residence during 1992 through 1996.
(a) On or about August 9, 1991, J. F. Duff, Sr., and P.G. Duff leased Apartment 801, a furnished apartment, at the SAT for approximately $1,350 per month. J. F. Duff, Sr., and P.G. Duff continued to occupy Apartment 801 until approximately February 1996.
(b) On or about August 9, 1991, J. F. Duff, Sr., and P.G. Duff also leased Apartment L10 at the SAT for $700 per month. J. F. Duff, Sr., and P.G. Duff continued to lease apartment L10 until August 31, 1996.
(c) On or about September 13, 1993, Windy City Maintenance, Inc. (“WCMI”), leased Apartment 802 at the SAT for $1285 per month. The lease was signed on behalf of WCMI by P.G. Duff. WCMI continued to lease Apartment 802 until approximately November 1995, when J. F. Duff, Sr., and P.G. Duff signed a contract to purchase Apartment 802 for approximately $173,400. IX13, Flynn Declaration, ¶ 6.
22. The eleven (11) present or former SAT employees and/or residents interviewed indicated that J. F. Duff, Jr., and his parents, J. F. Duff, Sr., and P.G. Duff, lived at the SAT, except for periodic visits to Chicago. 5/ A number of these individuals said that prior to moving into the SAT in approximately 1991, J. F. Duff, Jr., and his parents lived at the Diplomat Hotel. IX13, Flynn Declaration, ¶¶ 5-13.
23. I find that the documentation Mr. Flynn reviewed and the information received from the eleven (11) present or former SAT employees and/or residents corroborates Mr. Lugano’s testimony, and that the SAT was J. F. Duff, Jr.’s, principal residence from at least January 1, 1992, until his resignation from the HEREIU on December 15, 1996. I find also that sports bookmaking was J. F. Duff, Jr.’s, principal occupation during this period based upon Mr. Lugano’s testimony and the six (6) month investigation conducted by the FBI in 1994.
E. J. F. Duff, Jr., Was a No-Show HEREIU
Employee During 1992-1996
J. F. Duff, Jr.’s, Colleagues Are Unaware of Any Services He Performed at HERE
24. A number of the HERE Local 1 employees and IOs assigned to HERE Local 1 who were deposed and/or interviewed knew J. F. Duff, Jr., and knew that he was T. W. Hanley’s friend. Three HERE Local 1 Executive Board members, including the Treasurer, were unaware of any affiliation between J. F. Duff, Jr., and the HEREIU, much less of any J. F. Duff, Jr., work for HERE Local 1. IX14, Deposition of James Dyson, pp. 100-101; IX15, Deposition of Demetrious Tsenekos, p. 28; IX16, Deposition of Chester Wilkins, pp. 57-59. According to Judy McDonald, HERE Local 1's Office Manager, J. F. Duff, Jr., did not have office space in HERE Local 1, she didn’t know where he was assigned and she doesn’t know him personally. IX17, February 18, 1997 Interview of Judith McDonald. Similarly, several HERE Local 1 employees and/or IOs working out of HERE Local 1 who knew J. F. Duff, Jr., were unaware of any affiliation between J. F. Duff, Jr., and the HEREIU. IX18, Deposition of Sam P. Louis, pp. 22-24; IX19, January 8, 1997 Interview of Robert J. Babowice; IX20, January 8, 1997 Interview of Michael J. Romanelli; IX21, July 22, 1997 Interview of Willard Sheldon; IX22, February 19, 1992 Interview of Theresa Scimeca, p. 5. Others were unaware of any services performed by J. F. Duff, Jr., at HERE Local 1 since the Alton Belle I campaign and the 1992 Empress Casino Riverboat Campaign. 6/ IX23, Deposition of Terrence P. Maloney at pp. 178-183; IX24, Deposition of James Davern at pp. 12-14. About all that can be said of Duff and HERE Local 1 is that he was seen at HERE Local 1's office approximately six times a year. IX17, February 18, 1997 Interview of Judith McDonald.
J. F. Duff, Jr.’s Colleagues Are Unaware of Any Services He Performed on the Chicago
25. When he was in Chicago, J. F. Duff, Jr., spent considerable time playing Blackjack at Chicago metropolitan area riverboat casinos, including the Empress I and II in Joliet, Illinois, the Hollywood Casino in Aurora, Illinois and the Empress III in Hammond, Indiana. IX2, Burton Declaration, ¶ 11-12. During the Monday through Friday workweek from December 6, 1993, until December 10, 1993, for example, J. F. Duff, Jr.’s, gambling activity included the following:
|
DATE |
CASINO
|
CASH USED TO PURCHASECHIPS |
GAMBLING START TIME
|
GAMBLING STOP TIME
|
CHIPS REDEEMEDFOR CASH |
|
12/7/93 |
Empress Joliet, Illinois |
$19,500 |
10:09 am |
5:31 pm |
$29,000 |
|
12/8/93 |
Empress Joliet, Illinois |
$16,400 |
4:38 pm |
Unknown |
Unknown |
|
12/9/93 |
Hollywood Aurora, Illinois |
$10,400 |
3:00 pm |
8:00 pm |
-0- |
|
12/10/93 |
Hollywood Aurora, Illinois |
$
2,000 |
4:03 pm |
6:40 pm |
-0- |
The drive from HERE Local 1 (and/or Distillery Workers Distillery Workers Local 3) in Chicago to the Empress I and II in Joliet, Illinois and the Hollywood in Aurora, Illinois takes approximately 45 minutes to 90 minutes and 40 minutes to 90 minutes, respectively, depending upon the traffic. 7/ IX2, Burton Declaration, ¶ 11.
26. During 1994 through 1996, J. F. Duff, Jr., continued to spend a considerable number of days playing Blackjack at Chicago area riverboat casinos.
YEAR |
EMPRESSJoliet, Illinois |
HOLLYWOODAurora, Illinois |
EMPRESS III*Hammond, Indiana |
TOTAL |
|
1994 |
7 |
15 |
****** |
22 |
|
1995 |
22 |
2 |
****** |
24 |
|
1996 |
0 |
13 |
17 |
30 |
There is no pattern as to the time of day J. F. Duff, Jr., gambled. J. F. Duff, Jr., played Blackjack at all hours of the day and night. His average bet was anywhere from $25 to $1,500, and he generally played for at least 2 hours. He won and lost as much as approximately $13,000 in a single day -- tidy sums for a $35,125 a year HEREIU IO. IX2, Burton Declaration, ¶ 12.
27. In its efforts to organize employees of riverboat casinos, the HEREIU has only claimed jurisdiction over food and beverage workers. It has not attempted to organize dealers, engineers, deckhands or others that have typically been outside its jurisdiction. IX3, E.T. Hanley Deposition at pp. 219-222. HERE Local 1 entered into a collective bargaining agreement (“CBA”) covering the food and beverage employees of the Empress I and II Riverboats in Joliet, Illinois in approximately February 1993. Thus, J. F. Duff, Jr.’s, forty (40) or so visits to the Empress I and II Riverboats in Joliet, Illinois during 1993-1995 occurred after those employees had been organized. T. W. Hanley, then, the Director of Organization and President of HERE Local 1, testified that J. F. Duff, Jr., was responsible for direct organizational work as opposed to servicing CBA’s. IX5 at pp. 234-235. In an interview, Teresa Shannon, the HEREIU IO and HERE Local 1 Business Agent responsible for servicing the CBA covering the Empress Riverboats in Joliet, Illinois indicated that she had never met or heard of J. F. Duff, Jr., IX6A and IX6B, Interviews of Teresa Shannon, p. 4 and p. 4.
28. After the Hollywood Casino Riverboats I and II in Aurora, Illinois opened in June 1993, the HEREIU made periodic attempts to organize its food and beverage employees without success. None of the HEREIU IOs who worked on the Hollywood organizing campaign and, later, on the Empress III campaign in Hammond, Indiana, were aware of any participation by J. F. Duff, Jr. 8/ IX6, at p. 4 (Shannon Interview); IX25, Interview of Theodora Geanekoplis, p. 4; IX26A and IX26B, Interview of Alan Kearney, p. 6 and p. 3; IX27, Interview of Jesse Case, p. 3; IX20, Interview of Carmen Dickinson, p. 3; IX29, Interview of Karen Kent, p. 3; IX30, Interview of Sandy Gorecki, p. 4; IX31A and IX31B, Interview of Angela Chavez, p. 7 and p. 5; IX56, Interview of Tim Luebbert, p. 5. Indeed, most of these IOs had never heard of J. F. Duff, Jr. IX25, at p. 4; IX30, at p. 4; IX20, at p. 3; IX27, at p. 3; IX26A at p. 6; IX31 at p. 5; IX56 at p. 5.
29. Based on the foregoing, I find that J. F. Duff, Jr.’s, eighty (80) odd Blackjack playing visits to the Empress I, II and III and Hollywood Casino during 1993 through 1996 were for recreational purposes and that he was not engaged in official HEREIU business during such visits. According to Sam Louis, a former HERE Local 1 Business Agent and HEREIU IO, J. F. Duff, Jr., is a degenerate gambler who never came into HERE Local 1 and never performed any work. IX32, November 26, 1996, and January 7, 1997, Interviews of Sam P. Louis at p. 9. Former General President E.T. Hanley acknowledged he had heard “some rumors” that J. F. Duff, Jr., was a “heavy gambler”. IX3, E.T. Hanley Deposition at pp. 279-280.
J. F. Duff, Jr., International Travel
30. During the period from October 27, 1992, until his resignation on December 15, 1996, J. F. Duff, Jr., made a number of trips to the Bahamas and certain other international destinations.
(a) At approximately 6:53 p.m. on Tuesday, October 27, 1992, J. F. Duff, Jr., passed through U.S. Customs Service (“USCS”) at the Chicago O’Hare Airport after arriving on an international flight. IX2, Burton Declaration, ¶ 14.
(b) At approximately 1:48 a.m. on Saturday, June 26, 1993, J. F. Duff, Jr., passed through USCS pre-clearance station in Nassau, Bahamas en route to the United States via airline. IX2, Burton Declaration, ¶ 14.
(c) At approximately 12:39 a.m. on Tuesday, August 3, 1993, J. F. Duff, Jr., passed through the USCS pre-clearance station in Freeport, Bahamas en route to the United States via airline. IX2, Burton Declaration, ¶ 14.
(d) At approximately 6:00 p.m. on Sunday, August 29, 1993, J. F. Duff, Jr., passed through the Nassau, Bahamas USCS pre-clearance station en route to the United States via airline. Two days earlier, on Friday, August 27, 1993, J. F. Duff, Jr., established a line of credit at the Crystal Palace Casino in the Bahamas. IX2, Burton Declaration, ¶ 14.
(e) At approximately 6:30 p.m. on Tuesday, April 19, 1994, J. F. Duff, Jr., flew via Laker Airways Ltd., to Freeport, Bahamas from Ft. Lauderdale, Florida and returned from Freeport to Ft. Lauderdale at 12:45 a.m. on Wednesday, April 20, 1994. IX2, Burton Declaration, ¶ 14.
(f) At approximately 9:00 a.m. on Wednesday, June 22, 1994, J. F. Duff, Jr., flew via Laker Airways, Ltd., to Freeport, Bahamas from Ft. Lauderdale, Florida and returned to Ft. Lauderdale from Freeport at 5:15 p.m. on the same day. At approximately 4:57 p.m. on Wednesday, June 22, 1994, J. F. Duff, Jr., passed through the USCS pre-clearance station in Freeport, Bahamas en route to the United States via airline. IX2, Burton Declaration, ¶ 14.
(g) At approximately 6:30 p.m. on Tuesday, January 17, 1995, J. F. Duff, Jr., flew via Laker Airways, Ltd., from Ft. Lauderdale, Florida to Freeport, Bahamas, and returned from Freeport to Ft. Lauderdale at 12:45 a.m. on Wednesday, January 18, 1995. IX2, Burton Declaration, ¶ 14. At approximately 12:26 a.m. on Wednesday, January 18, 1995, J. F. Duff, Jr., passed through the USCS pre-clearance station in Freeport, Bahamas en route to the United States via airlines. IX2, Burton Declaration, ¶ 14.
(h) At approximately 1:50 p.m. on Friday, November 3, 1995, J. F. Duff, Jr., and his father, J. F. Duff, Sr., passed through the USCS pre-clearance station in Winnipeg, Canada en route to the United States via airline. IX2, Burton Declaration, ¶ 14.
(i) There is no HERE local union in the Bahamas, and there is no record of any expenses, including air travel, being paid by the HEREIU in connection with any of the above trips. IX33, Declaration of Thomas Drewry, ¶ 6.
J. F. Duff, Jr.’s, Failure to File Expense Reports During His HEREIU Employment
31. In a letter dated August 9, 1989, confirming J. F. Duff, Jr.’s, appointment as an IO, former General President E.T. Hanley wrote:
Please note that all requests for reimbursement must be accompanied by appropriate receipts and each receipt must indicate the nature of your assignment and specific purpose of each expenditure. The receipts must accompany your monthly expense sheet. . . .Your monthly expense reports should be received by Brother Sirabella [J. F. Duff, Jr.’s, immediate supervisor] no later than the 5th day of the following month. Expense checks are mailed with your salary for the pay period ending the 15th day of each month.
IX34.
32. Despite the fact that he was on the HEREIU payroll for seven (7) years, the HEREIU was unable to produce any monthly expense reports submitted by J. F. Duff, Jr. There is no record at the HEREIU that J. F. Duff, Jr., ever submitted a request for reimbursement of expenses incurred as an IO. IX33, Declaration of Thomas Drewry, ¶ 6.
HEREIU Staff Communicated With J. F. Duff, Jr., Through Distillery Workers Distillery
33. Interestingly, although J. F. Duff, Jr., was ostensibly in HERE Local 1 in Chicago, Illinois every day, the HEREIU staff in Washington, D.C. were under instructions to direct all correspondence and checks to him in care of: Distillery Workers Distillery Workers Local 3, Attn: Lynn, 1640 W. Van Buren, Chicago, Illinois.
(a) On February 6, 1990, Vincent J. Sirabella, then, the Director of Organization, distributed a memo to the HEREIU Office Staff stating that all checks and correspondence were to be sent to J. F. Duff, Jr., c/o Distillery Workers Local 3, Attn: Lynn, until further notice. 9/ IX35.
(b) On July 26, 1990, Herman Leavitt, then, the General Secretary-Treasurer, sent J. F. Duff, Jr., an IRS Notice of Levy of Wages, Salary and Other Income for the tax period ending July 1, 1985, at Distillery Workers Local 3, Attn: Lynn. IX36.
(c) On December 4, 1990, Mr. Leavitt wrote J. F. Duff, Jr., at Distillery Workers Local 3, Attn: Lynn, that his annual $9,125.00 per diem would be discontinued and that his salary would be increased from $26,000 to $35,125. IX37.
(d) On September 26, 1995, J. F. Duff, Jr., wrote Jeanne Gardner on letterhead with Distillery Workers Local 3's address requesting that his payroll check be sent in care of Distillery Workers Local 3, instead of wiring it to the LaSalle Bank. Ms. Gardner was directed to call Lynn at the Distillery Workers Local 3 telephone number, if she had questions. On or about October 2, 1995, Ms. Gardner wrote a memo to the HEREIU payroll department implementing J. F. Duff, Jr.’s, instructions. IX38.
(e) On October 1, 1996, John Wilhelm, then, the General Secretary-Treasurer, wrote to J. F. Duff, Jr., c/o Distillery Workers Local 3, concerning the suspension of J. F. Duff, Jr.’s, driver’s license. The letter, a copy of which was sent to T. W. Hanley, HEREIU’s Director of Organization, directed J. F. Duff, Jr., to cease driving pursuant to the HEREIU’s auto insurance policy. IX39.
(f) On October 2, 1996, J. F. Duff, Jr., wrote Mr. Wilhelm on Distillery Workers Local 3 letterhead with an address that his drivers license had been reinstated. IX40.
F. J. F. Duff, Jr.’s. False OWRs
J. F. Duff, Jr.’s, June-August 1994 OWRs Relating to the HERE Local 355 Trusteeship
in Miami, Florida
34. During the period from January 1, 1992, until June 20, 1993, J. F. Duff, Jr.'s, OWR indicate that:
(a) He was visiting HERE Local 1 in Chicago;
(b) Acknowledgment of the report would reach him at HERE Local 1 in Chicago;
(c) His activities for each week day included:
“Staff meetings with regards to current projects;
Work in office with regards to current projects”
(d) Eighty (80) percent of his time was spent on direct organizational work and 20
percent of his time was spent on Local union servicing.
IX2, Burton Declaration, ¶ 16.
35. Beginning with the OWR for the week ending June 26, 1993, J. F. Duff, Jr.’s, OWRs continue to reflect that his daily activities included: “Staff meetings with regards to current projects”. From the OWR for the week ending June 26, 1993, until his December 15, 1996 resignation, such OWRs also reflect that his daily activities included: “Office calls with regards to current projects,” instead of “Work in office with regards to current projects.” From January 1, 1992, until his December 15, 1996 resignation, all of J. F. Duff, Jr.’s, OWRs indicate he is working in the Chicago area with two exceptions. IX2, Burton Declaration, ¶ 17.
(a) J. F. Duff, Jr.’s, OWRs for the period from June 14, 1994, through June 29, 1994, reflect that his daily activities include “Miami-Local 355”. 10/ IX2, Burton Declaration, ¶ 17. In addition, his OWRs for June 14 and 15 bear the entries: “Miami-Local 355, Sheraton Bel Harbour.” T. W. Hanley’s Sheraton Bal Harbor hotel bill includes room service and restaurant charges for T. W. Hanley and “J. Duff” on June 14, 15 and 16, 1994. IX41. T. W. Hanley’s HEREIU American Express credit card charge slips for June 14 and 15, 1994 include food and beverage expenses for T. W. Hanley, “J. Duff” and George Papageorge, the Trustee for HERE Local 355, relating to the HERE Local 355 trusteeship. 11/ IX43A-B. The HEREIU American Airlines Air Travel Card statement, dated August 10, 1994, indicates that airline tickets were purchased on June 14, 1994, for “J. Duff” to fly from the Chicago O’Hare to Miami, Florida to Midway for $1,031. IX44A.
(b) J. F. Duff, Jr.’s, OWRs for the period from August 4, 1994, until August 14, 1994, reflect only that he is visiting “Miami” and contain no other entries. IX2, Burton Declaration, ¶ 17. The HEREIU American Airlines Air Travel Card statement dated September 22, 1994, indicates that airline tickets were purchased for “J. Duff” on August 2, 1994, to fly from Chicago O’Hare to Miami, Florida to Ft. Lauderdale, Florida to Chicago O’Hare for $750. IX44B.
36. George Papageorge stated that he was introduced to J. F. Duff, Jr., by T. W. Hanley after being appointed trustee for HERE Local 355 in approximately mid-May 1994. Interview of George Papageorge, IX45. According to Mr. Papageorge, J. F. Duff, Jr., worked for him in connection with the HERE Local 355 trusteeship for a short period between May and August 1994. Mr. Papageorge’s per diem and reimbursed expense report (“PDER”) for June 1994 indicates that he traveled from New York to Miami on June 13, 1994, for a June 14, 1994, HERE Local 355 trusteeship hearing, and returned to New York on June 17, 1994. IX46A-D. Additionally, Mr. Papageorge’s American Express charge slip for June 16, 1994, included food and beverage expenses at a Miami restaurant for J. F. Duff, Jr. IX46E and F.
37. Based upon Mr. Papageorge’s interview and the supporting documentation, I find that J. F. Duff, Jr., was engaged in HEREIU business in Miami, Florida during the period from June 14-16, 1994. While the evidence is less clear, I find that the Investigations Officer has failed to establish that J. F. Duff, Jr.’s, OWRs for the August 4-14, 1994, period are false, as well.
J. F. Duff, Jr.’s, Remaining OWRs For the January 1, 1992 Through December 15, 1996
38. With the exception of the July 7-9, 1992; June 14-29, 1994; and August 4-14, 1994 periods, J. F. Duff, Jr.’s, OWRs represent that he was in staff meetings at HERE Local 1 in Chicago every day during the period from January 1, 1992, until his December 15, 1996, resignation. For the reasons set forth below, I find that these OWRs are false. Among other things, T. W. Hanley, then HERE Local 1's President, testified he didn’t have staff meetings every day. IX5, T. W. Hanley Deposition, pp. 248-249.
(a) On November 4, 1993, J. F. Duff, Jr., was arrested by Officer Berrier and other Miami Beach Police Department officers at approximately 1:00 a.m. IX11. After being arrested, J. F. Duff, Jr., was booked, fingerprinted and photographed at the Miami Beach Police Department holding facility. He was released on a $6,000 surety bond at 10:45 a.m. on November 4, 1993. At the time of his arrest, J. F. Duff, Jr., used the name “James Duff” and refused to disclose his address, occupation, date of birth, and other personal information. IX11; IX13, Flynn Declaration, ¶ 17. His OWR for that day falsely represents that he was in staff meetings at HERE Local