I.   RECOMMENDATION
 

The Independent Review Board recommends to the IBT General President that IBT Local 714 located in Chicago, Illinois be placed in trusteeship because the Local is not being run for the benefit of its members. As detailed below, the Local is being run for the benefit of its principal officer William Hogan, Jr., President James M. Hogan, Recording Secretary Robert Hogan and their family and friends.
 

Nepotism and favoritism are prominent factors influencing entry into and work assignments in the Local's trade show/movie division which refers members to the Local's best jobs. Local members in positions of authority in that division and their relatives own businesses which are dependent for profits on Local 714 employers. These business interests with employers were not disclosed to members.
 

Moreover, the Local has also entered into several apparently sham collective bargaining agreements which allowed management members to become Teamsters and, in one instance, allowed a company a Hogan relative owned, from the beginning of the contract until two years later to avoid its contractual obligations to make health fund contributions.
 

Accordingly, pursuant to Article VI, Section 5(a) of the
 

IBT Constitution, a trusteeship is warranted.

II.   SUMMARY
 

The IRB conducted a thorough investigation of Local 714. In December 1995, the Local's books and records were examined. Between January and May 1996, the sworn examinations of 126 Local 714 members and 11 Local officers and business agents were conducted..^l
 

Since at least 1961, Local 714 has not held any contested elections for union office and each member of the current Executive Board was initially appointed to office. (Ex. 1 at 4-5, 9-10) Nepotism was an improper influence in appointments to union positions, obtaining Local employment and in the administration of   the Local's 258-member trade show/movie division. Three relatives of former principal officer William Hogan, Sr. are Local Executive Board members originally appointed to fill vacancies: his two sons, Secretary-Treasurer William Hogan, Jr. and President James M. Hogan, and his grandson, Recording Secretary Robert Hogan. A fourth relative, his son-in-law Michael Vendafreddo, is a Local business agent. (Appendix A) Hogan relatives also have the contract to clean the Local's offices and have been Local clerical employees.
 

With respect to the Local's trade show/movie division, as detailed infra at 23-31, there are no written procedures governing
 

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¹ Of the members whose sworn examinations were conducted, 114 were members in the Local's trade show/movie division.
 

2
 

how individuals may become part of the division or how the members are referred to work. Secretary-Treasurer William Hogan, Jr., his appointed chief steward and his son, trade show/movie division business agent Robert Hogan, control which individuals will be allowed to join the division. Family and social relations control who is permitted to join the division. This is evident in that half of the individuals permitted to join the Local's trade show/movie division since January 1993 had ties to the Hogan family or one of the appointed chief stewards, Michael Hardy or Nick Boscarino. (Ex. 2)² Michael Hardy, the trade show/movie division chief steward, whom the Local's principal officer appointed and may remove, controls who in the division is referred to work.
 

Moreover, relatives and friends of the Hogan family dominate the authority positions within the Local's trade show/movie division. Seventy-two percent of the members who have held positions of authority in the movie industry began working in the industry through ties to the Hogan family (Ex. 3); over half of the members who have held authority positions in the trade show industry have ties to the Hogan family. (Ex. 4) In addition, as detailed infra at 32, at a minimum, twenty percent of the members in the trade show/movie division have ties to the Hogan family. (Ex. 5)³ As discussed infra at 62-63, the manner in which members
 

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² Boscarino is the chief steward for Local 714 employer Rosemont Exposition Services.
 

³   As detailed infra at 32, this figure is based upon information known about 136 of the 258 members in the trade show/movie division. (Ex. 5)   As a result, the twenty percent figure is the minimum percentage of members in that division who have ties to the Hogan family.

4

Local 714 members do business with his companies.

In addition to the nepotism, favoritism and conflicted positions in the trade show/movie division, the Local appears to have allowed ineligible individuals to become members and entered into sham contracts. For example, Local 714 was unable to provide a signed collective bargaining agreement for S & J Scrap where two Local members, Brian and Sheldon Weinberg, were allegedly employed. As detailed infra at 96-100, the address given for Brian and Sheldon Weinberg's purported employer was a used car lot. After IRB inquiries to the Local regarding them, the Weinbergs were issued withdrawal cards and the Local's Metal Industry Health Fund filed a complaint against the Weinbergs seeking to recover health benefits paid on their behalf.⁵
 

Furthermore, without disclosure of the family relationship to the Local's Executive Board or to the members employed at the company, Local 714 entered into a collective bargaining agreement with a company William Hogan, Jr.'s nephew owned, Convention Cartage Systems, and failed to collect health benefit premiums from the company for approximately two years. Maxwell's uncle and cousin, President Hogan and Recording Secretary Hogan, signed the contract on behalf of the Local. Trade show/movie division steward Robert Hogan also was the business
 

agent for his cousin's company. Since the signing of this agreement in May 1994, Convention Cartage Systems failed to make the contractually required contributions for its employees to the Local 714 Health Fund. Subsequent to the IRB's inquiries regarding this company, the Local 714 Health Fund filed a complaint seeking at least $50,000 in back contributions to the Fund.
 

In addition, the Local entered into a collective bargaining agreement with a company, Consolidated Film Delivery, which contained an unusual provision. The agreement provided in the section dealing with health benefits that "[t]he Company may include their own office help or any one they choose providing the law will allow them." (Ex. 128 at 5) An officer of this company is apparently a member of Local 714 and the steward.
 

Furthermore, as detailed infra at 100-102, 105, the Local permitted at least four non-bargaining unit employees to join the Local apparently for health benefits. As discussed infra at 102-105, the Local also permitted an individual to join the Local's trade show/movie division while his criminal appeal was pending and remain a Local member while he was incarcerated.
 

The Local has undertaken after the IRB investigation some claimed remedial actions which appear to lack substance. None of these claimed reforms address the historic discrimination that has made membership in the movie and trade show division open to only a connected few.
 

The Local has a history of making cosmetic changes in the face of adverse attention. As discussed infra at 118-120, in the
 

1970s after negative publicity in Chicago papers regarding organized crime figures employed at McCormick Place, the Local addressed the problem by planning to temporarily transfer the identified organized crime figures to less high profile jobs within the Local until media attention died down.
 

The Local's lack of commitment to reform itself was also recently demonstrated after an IBT auditor raised with Secretary-Treasurer Hogan and his brother, President Hogan, that Local 714 has not held the number of Executive Board and membership meetings the IBT Constitution required. Compliance was promised. Even after that, the Local did not comply with the IBT Constitutional requirements.
 

Accordingly, for all the above reasons as detailed below,    it appears Local 714 should be placed in trusteeship.
 

III.   INVESTIGATIVE FINDINGS
 

A. Background
 

Local 714 has approximately 10,700 members employed at various Chicago area employers including the Cook County Sheriff's office, the Cook County Department of Corrections and various manufacturing companies. (Exs. 131 and 132) Local 714 has approximately 258 members employed in the trade show and movie industries. (Ex. 133) The current Local 714 officers are: Secretary-Treasurer and principal officer William Hogan, Jr., President James M. Hogan, Recording Secretary Robert Hogan, Vice President Marshall Arrington, and Trustees Robert Riley, Virginia
 

Lee and Michael Hardy. (Ex. 131) Of the five Executive Board members who are Local employees, three are related.
 

William Hogan, Jr., who has been employed at Local 714 since 1961, was appointed Secretary-Treasurer in October 1990 upon the retirement of his father,-William Hogan, Sr.. (Ex. 1 at 4-5, ₇₎6 Hogan's current annual salary from Local 714 is approximately $124,000. (Ex. 1 at 10-11) In addition, as President of Joint Council 25 he is paid an additional $59,000 a year. (Ex. 1 at 11) His total annual income from IBT entities is approximately $183,000. (Ex. 1 at 10-12)
 

James M. Hogan, William Hogan, Jr.'s brother, was appointed President in 1990 to fill the vacancy created when his father retired and his brother moved from President to Secretary-Treasurer. (Ex. 135 at 8-9) He has worked at Local 714 since 1969. (Ex. 135 at 6-7) He has been a Trustee on the Local 714 Health and Welfare Fund since 1990 and a Trustee on the Local 714 Prepaid Legal Fund from its start in 1979. (Ex. 135 at 12-13) His current annual salary from Local 714 is approximately $176,000. (Ex. 135 at 12)
 

Recording Secretary Robert Hogan is the son of the Secretary-Treasurer and the nephew of the President. (Ex. 57 at 3-4, 7) His grandfather hired him as a business agent in January
 

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⁶ As detailed infra at 31-35, at least twenty-two of William Hogan, Jr.'s relatives are Local 714 members. (Ex. 134 and Appendix A) Three of these relatives are Local employees. In addition, at a minimum, twenty percent of the members in the Local's trade show/movie division began working in that division as a result of connections to the Hogan family. (Ex. 5)
 

1990. (Ex. 136 at 5-6) In late 1990, he was appointed Recording Secretary. (Ex. 136 at 6) His current annual salary from Local 714 is approximately $59,000. (Ex. 136 at 6)
 

Vice President Marshall Arrington ("Arrington") began as a business agent in September 1975. (Ex. 137 at 3-4) Prior to being hired at Local 714, Arrington had been employed as an organizer at IBT Local 743 since March 1970. (Ex. 137 at 3-4) William Hogan, Sr. hired Arrington to work at Local 714. Arrington has been the Vice President and business agent since approximately 1991. (Ex. 137 at 11)⁷ Prior to becoming Vice President, Arrington was a Trustee for three years. (Ex. 137 at 11) Arrington is also a Trustee on the Local 714 Metal Industry Health Fund. (Ex. 137 at 13) Arrington's current salary from Local 714 is approximately $80,000. (Ex. 137 at 11-12)
 

Trustee Robert Riley ("Riley") has been employed at Local 714 since approximately 1982. (Ex. 138 at 7)⁸ At that time, then Secretary-Treasurer William Hogan, Sr. hired Riley as a business agent after a company Riley co-owned with William Hogan, Jr., James M. Hogan, their brother Michael Hogan, Sr. and others went out of
 

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⁷ At least two of Arrington's relatives are Local 714 members. His son, Terrance Arrington, who works as an extra in the trade show division (Ex. 137 at 36), also works for Local 714 employer Overdale. (Ex. 137 at 7-8) Another son, Marshall Arrington, Jr., is currently employed at Cozzi Iron and Metal. (Ex. 137 at 8-10) Arrington is the business agent for Overdale and Cozzi Iron and recommended to both employers that his sons be hired. (Ex. 137 at 7-11)
 

⁸ For two or three years beginning in 1959, Riley was a Local 714 member at Fullerton Metals Company, a Local 714 employer. He then became the national sales manager for Fullerton Metals, a non-union position. (Ex. 138 at 3-4, 11-12)
 

business. (Ex. 138 at 7-11)⁹ In approximately 1990, Riley was appointed a Trustee on the Local's Executive Board. (Ex. 138 at 13) Riley has been a Trustee on the Local 714 Metal Industry Health Fund for approximately six years. (Ex. 138 at 18)¹⁰ Riley's Local 714 annual salary is approximately $75,000. (Ex. 138 at 14)¹¹
 

Trustee Michael Hardy ("Hardy") has been a member in the Local 714 trade show/movie division since 1976. (Ex. 49 at 3)¹² In approximately 1979, Hardy was appointed a Local 714 Trustee. (Ex. 131)¹³   Also in approximately 1979, then Secretary-Treasurer
 

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⁹ The company Riley owned along with members of the Hogan family was Algonquin Stamping, a metal stamping company which Riley
 purchased in approximately 1978. (Ex. 138 at 8)   Algonquin Stamping was a non-union company. (Ex. 138 at 9-10) In approximately 1980, it filed for bankruptcy and Riley continued with the company until it closed in 1982. (Ex. 138 at 10)
 

10 Trustee Riley's brother and son are both Local 714 members. Riley's brother, Edward, has been a member of Local 714 since October 1966 when he joined the Local by contacting his neighbor and friend then Local 714 Secretary-Treasurer William Hogan, Sr.. (Ex. 100 at 3-4) Edward Riley began working in the Local's trade show/movie division in the early 1970s. (Ex. 100 at 6-7)
 

Trustee Robert Riley's son, Paul, has been a Local 714 member employed at Jorgensen Steel for the past eight years. Robert Riley is the business agent for this company. In addition, another son, Sean, was a Local 714 member employed at Jorgensen Steel for approximately two years before leaving in 1994. (Ex. 138 at 5-7)
 

11 Included in this salary is a $1,100 monthly organizing bonus. According to Riley each business agent received $1 per member per month for each member the business agent organized. The business agent continues to receive this amount for each member as long as the member remains in the Local. (Ex. 138 at 14-15)
 

12 Hardy testified that two of his brothers, John and Steve, are also Local 714 members in the trade show/movie division. (Ex. 49 at 6-7)
 

13 For serving as a Trustee, Hardy is paid a quarterly stipend from the Local. (Ex. 49 at 7)
 

William Hogan, Sr. appointed Hardy as the chief steward in the trade show division. (Ex. 49 at 11) In 1995, Hardy was paid approximately $100,000 as the chief steward. (Ex. 49 at 19)¹⁴
 

Trustee Virginia Lee ("Lee") has been a Local 714 member for approximately 25 years. (Ex. 139 at 3) She is currently employed full-time at Parkview Metals and, in 1992, was appointed a Trustee. (Ex. 139 at 4, 6-8)

Local 714 has four business agents who are not Executive Board members. One of these, Michael Vendafreddo, is the current Secretary-Treasurer's and President's brother-in-law and the Recording Secretary's uncle. (Ex. 140 at 4, 7-8)¹⁵ In or about October 1985, then Secretary-Treasurer William Hogan, Sr., hired his son-in-law Vendafreddo to be a Local 714 business agent. (Ex. 140 at 3-4)¹⁶ He had no prior experience as a union employee. Local 714 pays Vendafreddo approximately $62,000 each year. (Ex. 140 at 11)
 

In 1972, then Secretary-Treasurer William Hogan, Sr. hired current business agent Joseph L. Martucci ("Martucci") as an organizer. (Ex. 141 at 3, 11)¹⁷ After approximately two years as
 

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14 Local 714 does not pay Hardy; the trade show contractors at McCormick Place pay him. (Ex. 50 at 28)
 

15 Prior to working for Local 714, Vendafreddo worked periodically in the Local's trade show/movie division as an extra. (Ex. 140 at 5)
 

16 Vendafreddo's son, Michael Vendafreddo, Jr., is a member of the Local's trade show/movie division. (Ex. 116 at 3-4)
 

17 Prior to being hired at Local 714, Martucci was a business agent with the Chicago Joint Board which was affiliated with an international that represented industrial workers in the novelty
 

an organizer, Martucci became a business agent/organizer. (Ex. 141 at 11-12) In approximately 1989, William Hogan, Sr. appointed Martucci a Trustee on the Local 714 Health and Welfare Fund. (Ex. 141 at 16-17) Martucci's annual salary from Local 714 is approximately $60,000. (Ex. 142)¹⁸
 

Business agent Genaro Rodriquez was hired as a business agent in 1988. (Ex. 143 at 3-4) Prior to 1988, Rodriguez was employed as a workers compensation claim investigator for the City of Chicago. (Ex. 143 at 5) Rodriguez testified that he heard of the position at Local 714 through Alderman George Hopian, business agent Martucci's father-in-law. (Ex. 143 at 6-7, 11-12) According to Rodriguez, William Hogan, Sr., then the Local's principal officer, hired him as a business agent. (Ex. 143 at 4) Local 714 pays Rodriguez approximately $52,000 a year. (Ex. 143 at 15)
 

Business agent Lizette Alonso was hired as a business agent in January 1994. (Ex. 144 at 3-4) Business agent Rodriguez, whom Alonso knew from political activities, recommended her for the position. (Ex. 144 at 3-4) Alonso, who was working as a personal banker before the Local hired her, testified that she had no prior union experience. (Ex. 144 at 4-5) Alonso's current salary is approximately $27,000. (Ex. 144 at 6)

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business. (Ex. 141 at 5)   Martucci testified that he was also a vice president for Industrial Local 8. (Ex. 141 at 5) Martucci testified that he met William Hogan, Sr. at political and labor functions. (Ex. 141 at 11)

 

¹⁸ Martucci's two sons, Joseph F. Martucci and Robert Martucci, are members of the Local 714 trade show/movie division. (Ex. 76 at 4, 6) Martucci testified that he arranged for his two sons to join the Local. (Ex. 141 at 13)
 

B.   Local 714 is Run for the Benefit of the Hogan Family and Friends
 

Local 714 was chartered in approximately 1934. (Ex. 145) William Hogan, Sr., who became a Local 714 employee in May 1939, was the Local's principal officer from 1940 until 1990 when he retired. (Ex. 146 at 2-3; Ex. 147) For at least the past thirty-five years, Local 714 has not had any contested elections for union office. (Ex. 1 at 4-5, 9-10) Every member of the current Executive Board first became a member of the Board when appointed by the Board to fill a vacancy.
 

In or about July 1961, William Hogan, Sr. appointed his son William Hogan, Jr., then approximately twenty-one years old, to a Local 714 office clerical position. (Ex. 1 at 4-5, 8) Within one year William Hogan, Jr. was appointed a business agent. (Ex. 1 at 5, 6)¹⁹ In 1968, his father appointed him Vice President. (Ex. 1 at 6-7) After approximately one year as Vice President, he was appointed President. (Ex. 1 at 7) As discussed, William Hogan, Jr. was appointed principal officer after his father retired in 1990. (Ex. 1 at 7)
 

19 William Hogan, Jr. became a Local 714 member the day after he was hired to work at Local 714. (Exs. 148-149) During his sworn examination, William Hogan, Jr. testified that immediately prior to his Local 714 employment, he worked as a non-union glue
 

factory worker. (Ex. 1 at 5-6) William Hogan, Jr.'s only experience working for a company with a collective bargaining agreement with the Local was his work in the stockroom at Elkay Manufacturing when he was in high school. (Ex. 1 at 10)
 

Hogan, Sr. hired his son, current President James M. Hogan, in April 1969 as a business agent. (Ex. 135 at 3, 7) James Hogan testified that he was never employed by an employer having a collective bargaining agreement with Local 714. (Ex. 135 at 5) He had no prior experience representing employees. (Ex. 135 at 4-5) In approximately 1975, James Hogan was appointed a Trustee on the Local's Executive Board. (Ex. 131) In or about 1977, he was appointed Recording Secretary and in 1990, he was appointed President. (Ex. 135 at 8-9; Ex. 131)²⁰
 

In January 1990, then Secretary-Treasurer William Hogan, Sr. hired his grandson Robert Hogan as a business agent. (Ex. 136 at 5-6) Robert Hogan joined the Local 714 trade show/movie division in July 1983 when he was approximately 19 years old. (Ex. 136 at 3-4) He is currently the Local's Recording Secretary, the third Hogan family board member, and a business agent for the trade show/movie industry. (Ex. 136 at 6)
 

In or about 1985, William Hogan, Sr., hired his son-in-law, Vendafreddo, to be a Local 714 business agent. (Ex. 140 at 3-4)²¹ Vendafreddo had no prior experience representing employees.
 

²⁰ President Hogan's son, Brian Hogan, became a Local 714 member in approximately September 1994 employed at Convention Cartage. (Ex. 150 at 4) As discussed infra at 106-111, Ronald Maxwell, Jr., a nephew of both President and Secretary-Treasurer Hogan, owns Convention Cartage Systems, which has a collective bargaining agreement with Local 714. (Ex. 135 at 52-54)
 

21 According to President Hogan, approximately ten years ago, Elizabeth Vendafreddo, his sister and Vendafreddo's wife, worked in the Local's offices. (Ex. 135 at 20)
 

(Ex. 140 at 5-6, 9-10)²²
 

Between approximately 1973 and 1990, the Local employed Delores Voss, a cousin of William Hogan, Jr., in the Local's office. (Ex. 118 at 4, 6; Ex. 151; Appendix B)²³ When Voss retired in 1990, she was the Local's office manager. (Ex. 151; Ex. 118 at 6)²⁴ Voss's employee wage and expense records reflected that Local 714 paid her $33,052 in 1990. (Ex. 151) In addition, President Hogan testified that his cousin, Eileen Nallon, worked as a Local secretary for approximately ten years. (Ex. 135 at 114) According to Local records, Nallon was last employed at Local 714 in October 1989. (Ex. 152)
 

William Hogan, Jr.'s sister, Winifred Torii, and her husband, Local 714 trade show/movie division member Dale Torii, own Exhibition Maintenance, which Local 714 pays $1,050 each month to provide cleaning services to the Local. (Ex. 115 at 10; Ex. 153)²⁵
 

22 Prior to being hired to work at Local 714, Vendafreddo had a business, Winella Enterprises, Inc., which sold a coffee extending product. (Ex. 140 at 4)
 

23 Delores Voss's mother, Margaret Levin, whose maiden name was Nallon, was the sister of William Hogan, Sr.'s wife, Winifred Hogan, whose maiden name was also Nallon. (Ex. 118 at 4-5; Appendix B)
 

24 Delores Voss's husband, George Voss, and their son, Robert Voss, worked in the Local's trade show/movie division. (Ex. 118 at 6-7) George Voss retired; Robert Voss is currently a trade show/movie division member. (Ex. 118 at 6-7)
 

25 Local 714 trade show/movie division member Joe Polizzi testified that while he was working as an extra in the Local's trade show/movie division in 1994 and 1995, he worked for Dale Torii's company cleaning the union hall. (Ex. 97 at 16-17) Polizzi testified that he worked cleaning the union hall three or four times a week for an average of two hours each day. (Ex. 97 at 17) Polizzi testified that at that time he was the only person cleaning
 

In addition, Local 714 paid Brian and Brad Hogan, the President's sons, to do clean-up work at the Local after the renovation of the Local's offices. (Ex. 150 at 8)
 

1.   Introduction
 

Local 714 has jurisdiction to represent employees in the trade show and movie industries in the Chicago area.²⁶ The trade shows are held at several locations including McCormick Place, the Rosemont Exposition Center, Navy Pier and several hotels. (Ex. 50 at 47, 87)²⁷ There are approximately 258 Local 714 members in the Local's trade show/movie division. (Ex. 133)²⁸
 

The jobs in the trade show/movie division, as discussed in Appendix C, are among the highest paid jobs in the Local. For example, as detailed in Appendix C, the forklift operators in the trade show division were paid the highest hourly rate of any forklift operators in the Local. (Exs. 161 and 162) The forklift
 

at the union hall and he was paid a flat rate of $500 a month for such work. (Ex. 97 at 18) Polizzi testified that he stopped cleaning the union hall when he became a Local member. (Ex. 97 at 18)
 

26 Local members also work on concert productions in the Chicago area. (Ex. 50 at 47)
 

27 In news accounts, McCormick Place has been described as the largest national convention center. (Ex. 154)
 

28 This is the number of men on the January 1996 trade show/movie division membership list. (Ex. 133) These members do not pay dues via check-off because they are not regularly employed by any particular employer. Rather, these members self pay dues to the Local on a quarterly basis. There appear to be no women on the trade show/movie division list. (Ex. 133)
 

drivers covered under the trade show collective bargaining agreements were paid between $4.50 and $10.75 per hour more than the other Local 714 members employed as forklift drivers. (Exs. 159, 161 and 162.)
 

The highly paid positions in the trade show/movie division appear to be given to relatives and friends of the Hogan family and the two chief stewards. These positions do not appear to be open to longstanding Local members working in other areas.
 

As detailed infra at 18-20, the Local has the authority
 

refer individuals to work in the trade show and movie industries. The Local does not have any written procedures regarding either work referrals or who will be permitted to become a member of the Local's trade show/movie division. Relatives and friends of the Hogan family and the two chief stewards in the trade show/movie division dominated the positions of authority in this division.²⁹ Seventy-two percent of the twenty-two members who have held positions of authority in the movie industry were relatives or pre-union friends of the Hogan family. (Ex. 3)
 

Only six of the 136 members in the Local's trade show/movie division for whom information was gathered were members of the Local prior to working in the Local's trade show/movie
 

division. (Ex. 5)³⁰ Moreover, of the thirty-four individuals who joined the Local's trade show/movie division since January 1993, fifty percent were relatives or friends of the Hogan family or the two chief stewards. (Ex. 2)
 

As the comparison among Local 714 contracts found in Appendix C shows, the trade show/movie division jobs are substantially better paid and have better benefits than other comparable jobs covered under Local agreements. Given this, the disproportionate presence of Local officers' and stewards' relatives and friends in the trade show/movie division jobs shows the officers and stewards run the Local for themselves and not the members.
 

2.   The Local's Authority Regarding Work Referrals in the Trade Show and Movie Industries
 

a. Trade Shows
 

Local 714 has current collective bargaining agreements with approximately five trade show contractors who do business in the Chicago area including Freeman Decorating Services ("Freeman"), Greyhound Exposition Services ("GES"), J & J Exhibitor Service ("J&J"), Rosemont Exposition Services ("RES") and Champion
 

30 Information regarding 136 members who self pay their dues and work for various trade show contractors and movie production companies was gathered during the sworn examinations of 114 members in the trade show/movie division and the Local's officers and employees. Of the 136 individuals for which information was obtained, only six members were Local 714 members prior to working in the Local's trade show/movie division. (Ex. 5) Four men who were Local 714 members prior to working in the Local's trade show/movie division, John A. Smith, Aubrey Smith, Dennis Smith and Darnell Jones, previously worked for Local 714 employer Stainless Processing. (Ex. 108 at 3-4; Ex. 60 at 3; Ex. 110 at 3-4; Ex. 107 at 8)
 

Exposition Services. (Exs. 132, 155-58 and 305) Pursuant to Article II, Section 2(a) of the collective bargaining agreements with these six companies, Local 714 has the authority to refer individuals to work for the trade show contractors at the different trade shows in the Chicago area. (Exs. 155-58 and 305; Ex. 136 at 53)
 

When the Local 714 chief steward, whom the Local's principal officer appointed, received a call from trade show contractors requesting members for a trade show, he then referred individual members to work for the contractors. (Ex. 50 at 27-28; Ex. 52 at 15-16; Ex. 1 at 110) In addition to referring Local 714 members to work, the chief steward also referred extras, who are not Local members, to work for the trade show contractors. (Ex. 50 at 20, 25)³¹ Extras are referred to work if all the members in the trade show/movie division are working. (Ex. 50 at 35-36) Work covered under the Local 714 collective bargaining agreements with trade show contractors can only be done by someone the chief steward referred. (Ex. 50 at 20-21; Ex. 136 at 52)³²
 

b. Movies
 

According to Secretary-Treasurer Hogan, for each movie
 

31 The extras the chief steward assigned to work were paid the same hourly rate as the Local members and employer contributions to benefit funds were paid according to the collective bargaining agreement on behalf of the extras. (Ex. 50 at 51-52) However, an extra may not qualify for certain benefits because, for example, a certain number of hours per quarter was necessary in order to obtain health benefits. (Ex. 50 at 50-51)
 

32 The only exception was the trade show contractors were free to hire if the chief steward could not fill the call. (Ex. 50 at 53)
 

production, the movie production company and Local 714 enter into a letter of agreement which sets forth wages and benefits. (Ex. 1 at 34-35) Secretary-Treasurer Hogan, chief steward Hardy and business agent Robert Hogan were responsible for deciding which members and extras would work on movie productions. (Ex. 1 at 110; Ex. 50 at 58-59)
 

3.   The Chief Steward Position
 

Secretary-Treasurer Hogan testified that he had the authority to appoint and remove Local 714 stewards. (Ex. 1 at 28-29) Section 12 of the Local 714 Bylaws provided,
 

[b]y determination of, and in the sole discretion of the Secretary-Treasurer, stewards shall be appointed by the Secretary-Treasurer, or may be elected by the members of each particular division, craft or place of employment.
 

(Ex. 163) In addition to having a chief steward for the Local's entire trade show and movie division with an office located at McCormick Place, the Local also has a chief steward based at the Rosemont Exposition Center. (Ex. 13 at 22-23) Beginning in 1978, the appointed chief steward at the Rosemont Exposition Center was Nick Boscarino ("Boscarino"). (Ex. 13 at 18, 22-23) As discussed infra at 74-77, on the date of his second IRB sworn examination, Boscarino resigned his position as Rosemont chief steward and his IBT membership effective immediately, apparently to avoid testifying. (Exs. 124-26) Boscarino's position at the Rosemont Exposition Center is discussed infra at 51-53.
 

Beginning in at least the late 1960s, the chief steward
 

in the Local's trade show division was David Kaye ("Kaye^").³³ In or about the mid 1970s, Kaye was convicted of violating 18 U.S.C. §1962(c) and 29 U.S.C. §186(b)(1) in connection with taking money from trade show contractors for work he did not perform. He was sentenced to two years incarceration and a consecutive sentence of three years probation. Kaye's conviction was affirmed on May 16, 1977. United States v. Kaye, 556 F.2d 855 (7th Cir. 1977).^m
 

After Kaye went to prison, Michael Hogan, Sr., a third son of William Hogan, Sr., was appointed the Local's chief steward. (Ex. 1 at 87; Ex. 50 at 5) According to Local 714 records, he had become a Local 714 member in or about October 1968. (Ex. 164) In or about 1979, he resigned as the Local 714 chief steward. (Ex. 49
 

at 11) 35
 

33 In or about 1971, David Kaminsky, David Kaye's nephew, joined Local 714 and began to work in the receiving room at McCormick Place. (Ex. 303 at 3-5) Kaminsky testified that in approximately 1980 he was convicted of felony assault with a weapon and was sentenced to probation. (Ex. 303 at 6-7)
 

34 It appears that while Kaye was appealing his conviction, he was permitted to continue as the Local's chief steward at McCormick Place. On May 16, 1977, the Court of Appeals for the Seventh Circuit affirmed Kaye's conviction. United States v. Kaye, 556 F. 2d 855 (7th Cir. 1977) During a deposition taken on June 21, 1977, William Hogan, Sr., then the Local 714 principal officer, testified that Kaye was continuing to work at McCormick Place. (Ex. 146 at 12) As discussed infra at 102, fn. 201, the Local has continued its tradition of embracing convicted felons to the detriment of its other members.
 

35 As discussed infra at 77-80, it appears that Michael Hogan, Sr. left his position as chief steward to form Rosemont Exposition Services, the trade show contractor at the Rosemont Exposition Center. (Ex. 135 at 98-99) Rosemont Exposition Services currently has a collective bargaining agreement with Local 714. (Ex. 156) As discussed infra at 79-80, it is unclear whether Michael Hogan, Sr. has a continuing interest in Rosemont Exposition Services. However, during the time that he had an ownership interest in that
 

Upon his son's resignation as chief steward, in or about 1979, William Hogan, Sr. appointed Michael Hardy ("Hardy") to be the chief steward in the trade show division. (Ex. 49 at 11) In approximately 1976, Hardy had first become a Local 714 member in the Local's trade show/movie division. (Ex. 132)³⁶ As discussed supra at 10-11, in 1979 Hardy was appointed a Trustee on the Local's Executive Board. (Ex. 131) Hardy, who has an office at McCormick Place, testified that in 1995 he was paid approximately $100,000 as the Local's chief steward. (Ex. 49 at 12, 18-19)³⁷ Hardy testified that whichever trade show contractor handled the trade show at McCormick Place paid his salary. (Ex. 49 at 18)
 

During his May 29, 1996 sworn examination, Secretary-Treasurer Hogan testified that Hardy intended to resign as chief steward. (Ex. 1 at 77, 80) Hogan testified that Hardy's resignation was prompted by questions about Hardy's credibility. (Ex. 1 at 77) As of the date of his sworn examination, Hogan had not selected a replacement for Hardy. (Ex. 1 at 80)
 

4.      Lack of Objective Procedures for Selecting Members and
Extras to Work in Trade Show/Movie Industries
 

Local 714 has no written procedures for how Local 714
 

company, Local 714 had a collective bargaining agreement with Rosemont Exposition Services. (Ex. 135 at 98)
 

36 Prior to joining Local 714, Hardy was the zamboni driver for the Chicago Blackhawks at the International Amphitheater where Teamsters also worked on trade shows. (Ex. 50 at 3) As a result, Hardy met Michael Hogan, Sr. and became a Local member through him and other Teamsters. (Ex. 49 at 4-5)
 

³⁷ Hardy testified that in 1994 he was paid approximately $120,000 as the chief steward. (Ex. 49 at 18-19)
 

members and extras are referred to work for trade show contractors or for movie production companies. (Ex. 1 at 112; Ex. 165) Moreover, the Local does not have any seniority lists of the Local 714 members or the extras employed in the trade show or movie industries. (Ex. 49 at 13; Ex. 136 at 41, 43; Ex. 165) The documents the chief steward claimed he used to refer members and extras to work for trade shows and movies were two alphabetical lists, one of members in the Local's trade show/movie division and the other of extras in that division. (Ex. 50 at 25-26, 31-32; Exs. 166-67)³⁸ The April 1996 alphabetical list of members contained 246 names and the April 1996 alphabetical list of extras listed 108 individuals. (Exs. 166-67)³⁹ Hardy acknowledged that he kept no documents that reflected who was available to work on any given day. (Ex. 50 at 32) Hardy testified,
 

there are no documents. All that information is within my knowledge. I deal with this every day. I know who's available, who's not available, and every particular nuance or quirk of every member in that division. That's my job.
 

(Ex. 50 at 32)
 

There was no indication on either of the two alphabetical lists of the date each person began working in the Local's trade
 

38 These lists include each listed person's telephone number or beeper number. (Exs. 166-67)
 

39 Other than the alphabetical list of extras, Hardy did not keep any other documents regarding the extras who were available to work. (Ex. 50 at 27)
 

show/movie division. (Ex. 50 at 32)⁴° When questioned regarding whether he kept track of how often each member worked, Hardy testified, "No, . . my responsibility is filling the calls. Where they worked a month ago, off the top of my head I couldn't begin to tell you. I wouldn't have that information." (Ex. 50 at 34)
 

In addition to not maintaining any record of when an individual began working in the trade show/movie industry or how often each person worked, Hardy testified that he did not maintain any documents reflecting the members' and extras' qualifications. (Ex. 50 at 26, 39-41) Rather, Hardy testified that he knew the qualifications of each of the 246 members and 108 extras. (Ex. 50 at 26, 39-41)
 

According to chief steward Hardy, in order to operate various equipment in movie productions, an individual must possess a special drivers license. (Ex. 50 at 39) However, Hardy did not maintain any documents which indicated the types of licenses extras and members possessed. (Ex. 50 at 26, 39-41) In addition, at least some of the transportation equipment the movie production companies used did not require a driver with a specific license. For example, at least twelve Local 714 members testified that they operated equipment on movies and did not possess commercial drivers licenses. (Ex. 75 at 18-24; Ex. 71 at 16-18; Ex. 35 at 11, 13-18; Ex. 80 at 21-31; Ex. 43 at 15-20; Ex. 37 at 16-24; Ex. 108 at 22-
 

⁴⁰ In addition, Hardy testified that he did not maintain any records indicating when an individual began working as an -extra. (Ex. 50 at 84)
 

30; Ex. 7 at 13-15; Ex. 21 at 13-20; Ex. 28 at 17-20; Ex. 69 at 18-21 and Ex. 97 at 10-11)
 

Business agent Robert Hogan, who also was involved in assigning members to work on movie productions, testified that on movie productions individuals who did not have particular licenses or skills were "kind of rotated into the positions that are available." (Ex. 136 at 46) He admitted there were no lists used to determine who would be rotated into a job on a movie. (Ex. 136 at 46-47) In addition, when asked how this rotation system worked, he testified,
 

[w]ell, we just try to keep -- I mean there's nothing written on how we do it, it's just -- you know, there's only so many people that can do it, or so many positions for them. And the majority of the people have that type of driver's license, so [sic] try to rotate them in there.
 

During their sworn examinations, Hardy and William Hogan, Jr. each testified that a seniority system could not be used to refer individuals because there were too many variables involved in the selection of individuals to refer to work. (Ex. 50 at 85-88; Ex. 1 at 111) Hardy listed these variables as including that assignments were at different locations in the Chicago area, certain individuals had strong preferences regarding their work assignments and, in the movie industry, certain licenses were required to drive particular equipment. (Ex. 50 at 85-88)
 

These claims appear pretextual and do not explain the constant flow of Hogan relatives and friends into these jobs. The Local did not maintain any documents which reflected the
 

qualifications, such as particular classes of drivers license or work preferences, of the 354 members and extras in the Local's trade show division. (Ex. 49 at 29 and Ex. 50 at 26)⁴¹ Instead, Hardy testified that all this information for the 354 members and extras was within his personal knowledge. (Ex. 50 at 32)⁴² Indeed, Robert Hogan, the business agent for the trade show/movie division acknowledged the obvious, an individual does not have to have any particular skills in order to work in the Local's trade show division. (Ex. 136 at 41)
 

Even if neutral factors other than seniority did need to be considered in the referral process, the Local did not have any objective guidelines governing how individuals were selected for work referrals. Given the Local's complete discretion in the selection of individuals to work the most lucrative jobs, the nepotism and favoritism rampant in the membership of the Local's
 

trade show/movie division evidences that impermissible considerations and not special skills were used in making referrals.
 

As discussed infra at 114-117, in an apparent reaction to IRB inquiries regarding the trade show/movie division, the Local has claimed that it is currently making changes in this division. For example, according to William Hogan, Jr., the Local is in the
 

41 For example, there was no list of members who preferred to work on trade shows or a list of members who preferred to work on movies. (Ex. 136 at 43-44)
 

42 William Hogan, Jr. testified, "[a] lot of this is in Mike Hardy's head." (Ex. 1 at 112)
 

process of developing lists of individuals with particular qualifications. (Ex. 1 at 112)⁴³ Hardy testified that he was recently asked to document some of what you have in your head, particularly on the movies . . .." (Ex. 50 at 39) This will not remedy that the members in the trade show/movie division, who have the best jobs in the Local, have been selected for decades because of family or social connections."
 

43 Hardy testified that he created a list of members with different licenses and gave it to Robert Hogan three or four months prior to his May 21, 1996 sworn examination. (Ex. 50 at 40) Prior to Hardy creating the list at that time, Hardy testified that there were no such documents. (Ex. 50 at 41)
 

44 These recent Local actions were recommended as a result of a report of Gerry Miller, Esq., whom, as discussed infra at 114-117, the Local retained to conduct an investigation of the trade show/movie division. (Ex. 129) As discussed infra at 114-117, the investigation behind the Miller report began in approximately August 1994 and the report was not issued until May 27, 1996. (Ex. 129; Ex. 304) Miller recommended that,
 

[b]ecause Local 714 may significantly influence the employment and earnings opportunities of members in the referral group, it is important that favoritism, as well as appearance of favoritism, be minimized if not eliminated altogether.
 

*   *   *
 

[t]o the extent possible, referrals should be made based on objective, known, and relevant criteria that are put in writing and posted.
 

(Ex. 129 at 34-35) In addition, Miller recommended that the Local conduct a survey to gather information regarding the job preferences, schedules and qualifications of the trade show/movie division members. (Ex. 129 at 35) In making this recommendation, Miller stated, "[c]hief Steward Mike Hardy appears to be able to keep all this information in his head, but lesser mortals may have to rely on an information database." (Ex. 129 at 35) The depth of the favoritism was not analyzed and how the current unjust membership in the trade show/movie division could be broadened to include members denied opportunities for decades was not addressed.
 

5. The Lack of Objective Procedures for Allowing Individuals to Become Members of the Local's Trade Show/Movie Division
 

In addition to the failure to have any objective procedures for referring members to work, the Local does not have any objective rules governing which individuals will be allowed to become members of the trade show/movie division. William Hogan, Jr. makes the ultimate decision regarding who will be permitted to join the Local's trade show/movie division. (Ex. 1 at 108-09) His son, Robert Hogan, and chief steward Hardy are also involved in such decisions. (Ex. 49 at 17; Ex. 50 at 44-45)
 

In general, according to Hardy and Robert Hogan, in order to become a member of the Local's trade show/movie division, an individual must work as an extra in the division. (Ex. 50 at 43-44; Ex. 136 at 41) There is no set number of hours or a time period an individual must work as an extra before being permitted to become a member. (Ex. 136 at 49-50; Ex. 50 at 43) The only exception to the requirement that an individual must work as an extra before becoming a member in the trade show/movie division appears to be members who had been employed outside the trade show/movie industry and who transferred into the trade show/movie division. According to Hardy, only approximately 10-15% of the Local 714 members in the trade show/movie division became division members after working for a Local 714 employer outside the trade show/movie division. (Ex. 50 at 22) Even that low percentage appears to be inflated. As noted supra at 18, fn. 30, only six of the 136 trade show/movie division members for which information was obtained were members of the
 

Local before beginning to work in the trade show/movie division. (Ex. 5)
 

According to Hardy, the Local limited the number of members permitted to join the Local's trade show/movie division to the approximate number of individuals who are able to support themselves through that work. (Ex. 50 at 46-47) Periodically, William Hogan, Jr., with input from Hardy and Robert Hogan, selected additional persons to join the division. No announcement was made that the Local will be accepting new members in the trade show/movie division. (Ex. 136 at 51)
 

In response to the question how an individual becomes a member of the Local's trade show/movie division, Robert Hogan testified that, "[a]fter working as an extra, they have to ask." (Ex. 136 at 47) This, of course, did not answer the question as to how the determination was made for making the extra a member.
 

Indeed, Local members in the trade show/movie division testified that they were unaware of what criteria was used to determine who would be selected to become members after working as extras. For example, when asked whether he had to meet any specific criteria in order to join the division, Local 714 trade show/movie division member Raymond Cassatta responded, "[n]ot that I know of." (Ex. 23 at 7) Local 714 member Michael Deal, who was a high school friend of Robert Hogan, testified that he became a member in 1986 stating, "I was called down to the office. There was some guys retiring. William, Senior was letting some people in the union and I was one of them." (Ex. 35 at 3-4) When asked how
 

29.
 

an individual is permitted to join Local 714, Local member Joe Polizzi testified, "I don't have any idea how it works." (Ex. 97 at 5)
 

In addition, Local 714 member Dean Polachek ("Polachek") testified that he became a Local 714 member after working as an extra for approximately sixteen years. (Ex. 96 at 3) When asked how he became a Local 714 member, Polachek testified that he wrote a letter to Local 714 President James M. Hogan, which included a statement that he was loyal. (Ex. 96 at 6-7)⁴⁵ When asked why he wrote this letter, Polachek testified, ". you have to ask to get somewhere." (Ex. 96 at 7)⁴⁶ When asked if there were rules governing who was allowed to join the Local 714 trade show/movie division, Polachek testified, "[n]ot that I know of. I'm not privy
 

to that . .." (Ex. 96 at 13) Polachek's experience was distinctly different from that of Hogan family members who became part of the division shortly after high school.
 

When asked about any requirements an individual must meet in order to become a member of the trade show/movie division,
 

45 Polachek testified that he did not retain a copy of this letter. (Ex. 96 at 12) Local 714 President James Hogan testified that he did not recall receiving such a letter from Polachek. (Ex.
 

135 at 64)   In addition, the Local did not have a copy of any
 

letter Polachek wrote. (Ex. 165) However, William Hogan, Jr. testified that he recalled that Polachek told him that he wanted to be considered for membership when Hogan allowed men to join the Local. (Ex. 1 at 109-110)
 

46 Polachek testified that Local 714 member Thomas Kulak "sort of was like my sponsor" and helped Polachek write the letter seeking to join Local 714. (Ex. 96 at 7) Polachek testified that Thomas Kulak suggested that he write the letter to the Local, "[b]ecause I was around so long and I never asked for anything, so this way they know that I wanted a card." (Ex. 96 at 10)
 

Robert Hogan testified, "Well, I mean they have to have had a good record while they were there as an extra, they have to be punctual, be on time, be willing to work the crazy hours, be willing to put up with the different locations at different times and days." (Ex. 136 at 49) Although Hogan claimed these factors were important, no records were maintained documenting these qualities. (Ex. 165) Hardy testified that the factors he considered when participating in the decision to allow individuals to join the trade show/movie division were his personal assessment of "punctuality" and the vague factors of "dependability" and "work ethic". (Ex. 50 at 44) However, Hardy did not keep any record of which individuals possessed any of these qualities. (Ex. 165) It is evident that no guidelines or any objective criteria govern who will be permitted to become a member of the trade show/movie division. (Ex. 1 at 109; Ex. 165)
 

6. Nepotism and Favoritism In the Trade Show/Movie Division
 

a. Background
 

As detailed infra at 51, relatives of William Hogan, Jr. and friends of the Hogan family dominate the authority positions in the Local's trade show/movie division. For example, as detailed infra at 39-43, fifty-six percent of the members who have held authority positions in the trade show industry were relatives or friends of the Hogan family. (Ex. 4) In addition, in the movie industry, approximately seventy-two percent of the members who have held authority positions were relatives or friends of the Hogan
 

31