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UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION
UNITED STATES OF AMERICA, and  LABORERS' INTERNATIONAL UNION  OF NORTH AMERICA by and through ROBERT LUSKIN, in his official capacity as General Executive Board Attorney, Plaintiffs, V. CONSTRUCTION & GENERAL LABORERS' DISTRICT COUNCIL OF CHICAGO AND VICINITY, an affiliated entity of  the Laborers' International Union of North America, Defendant.	) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )	MAGISTRATE JUDGE GUZMAN 99 Ct RECEIVED AUG 11, 1999 MICHAEL W.DUBBINS CLERK, U.S. DISTRICT COURT,

COMPLAINT

INDEX

	PAGE
I	INTRODUCTION
	¶¶ 1-5
II.	JURISDICTION	4
	¶ 6
III	VENUE	4
	¶¶ 7-8
IV.	LA COSA NOSTRA	4
	Introduction ¶ 9	5
	a. The LCN Commission ¶ 9 a.	5
	b. LCN Families  ¶ 9 b.	6
	c. Judicial Authority for the Existence of the LCN ¶ 9 C.	6
V.	THE PARTIES
	The Plaintiffs. ¶ 10	7
	Defendant Chicago Laborers District Council  ¶ 11	8
	a. Composition of Membership ¶ 11 a.	9
	b. Purpose and Operation of a District Council ¶ 11 b.	9
	c. Potential for Abuse ¶ 11 C.¶	10
	d. Composition of the CLDC ¶ 11 d.	10
	e. Officers of the CLDC ¶ 11 e	11
	f . Operations of the CLDC  ¶  11 f	11
	g. Funds Affiliated with the CLDC   ¶ 11 g.	12
VI.	THE TRUSTEESHIP ACTION	13
	Introduction.  ¶12	13
	LIUNA's Internal Reform Program	13
	a. Democratic Practices  ¶ 13 a.	14
	b. Financial Practices   ¶ 13 b.	14
	c. Health, Welfare and Retirement Funds  ¶ 13 c.	14
	d. Business and Financial Activities of Union Officials  ¶ 13 d	15
	e. Barred Conduct ¶ 13 e.	15
	The Trusteeship Complaint  ¶ 14	16
	CLDC Officers and the Outfit ¶ 15	18
	The Trusteeship Hearing  ¶ 16	20
	The Trusteeship Decision ¶ 17	21
	Implementation of the Trusteeship ¶ 18	24
	Actions of the Trustee ¶ 19	24
	Other Reform Actions  ¶  20
VII.	CO-CONSPIRATORS NOT NAMED AS DEFENDANTS   ¶ 21	27
VIII.	CORRUPTION OF THE CHICAGO LABORERS DISTRICT COUNCIL  ¶ 22-23
IX.	THE DOMINATION AND CONTROL OF THE CHICAGO LABORERS' DISTRICT COUNCIL BY THE LA COSA NOSTRA    ¶ 24	54
	a. Selection of officers to Control LIUNA  ¶ 24 a.	55
	(1) Outfit Selection of International Union Officials ¶  24 a.(1)	55
	(2) Selection of Chicago District Council and Local Officials ¶ 24 a.(2)	59
	b. Cronyism and Nepotism in the CLDC ¶  24 b.	63
	c. Appointment and Retention of Corrupt Individuals to control the CLDC  ¶ 24 c.	69
	d. Lack of Democratic Practices ¶ 24 d.	72
X.	FIRST CLAIM FOR RELIEF: CONSPIRACY TO VIOLATE 18 U.S.C. S 1962(b)	82
	Conspiracy to Acquire and Maintain Control of CLDC  ¶¶ 25-26	83
	The Chicago Laborers' District Council Enterprise ¶ 27
	Manner and Means ¶ 28-36
	Overt Acts ¶ 37
XI.	SECOND CLAIM FOR RELIEF: CONSPIRACY TO VIOLATE 18 U.S.C. S 1962(c)	92
	Conspiracy to Conduct the Affairs of the Enterprise Through a Pattern of Racketeering Activity    ¶ 38-39	92
	The Chicago District Council/La Cosa  Nostra Enterprise ¶ 40	93
	Manner and Means ¶ 41-46	95
	Overt Acts ¶ 47	96
XII.	THE FAILURE OF LIUNA OFFICIALS TO SATISFY OBLIGATIONS IMPOSED BY LAW
	Legal and Ethical Obligations of CLDC Officials    ¶ 48
	Notice of Corruption within LIUNA and the CLDC ¶  49	104
XIII.	PRESENT STATUS Of THE CHICAGO LABORERS DISTRICT COUNCIL ¶50-53	105
XIV	DEMAND FOR RELIEF  ¶  54	106

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

UNITED STATES OF AMERICA and	)
LABORERS' INTERNATIONAL UNION	)
OF NORTH AMERICA by and through	)
ROBERT LUSKIN, in his official	)
capacity as General Executive	)
Board Attorney,	)
Plaintiffs,	)
V.	)	No.
CONSTRUCTION & GENERAL LABORERS'	)
DISTRICT COUNCIL OF CHICAGO AND	)
VICINITY, an affiliated entity of	)
the Laborers' International Union	)
of North America,	)
Defendant.

COMPLAINT

    The United States of America, by and through Scott R. Lassar, United States Attorney for the Northern District of Illinois, and the Laborers' International Union of North America (hereafter "LIUNA"), by and through Robert Luskin in his official capacity as General Executive Board Attorney of LIUNA (hereafter "GEB Attorney"), for their complaint, allege as follows:

I

INTRODUCTION

    1 . This action is brought against the Construction & General Laborers' District Council of Chicago and vicinity (hereafter "Chicago Laborers District Council," or the "CLDC") to rid the district council of domination and influence by members and associates of organized crime. The CLDC is a group of 21 local unions affiliated with LIUNA. The Chicago Laborers District Council has been infiltrated by corrupt individuals and organized crime figures who have exploited their control and influence over the district council for personal gain and to the detriment of the CLDC.

    2.     As a result of the strong, pervasive ties to organized crime, officers and employees of the CLDC and its constituent locals and affiliated funds have been chosen and controlled by various members and associates of organized crime. Consequently, the rights of the members of the union to control the affairs of the union have been systematically abused. Those union members who might have opposed this corrupt state of affairs have been intimidated into silence by economic coercion and by the well-known ties between corrupt union officials and organized crime.

    3. In 1995, LIUNA, acting through its General Executive Board (hereafter "GEB") , which has authority and control over all of the executive and judicial powers of the union, entered into an oversight agreement with the United States Department of Justice, As part of that agreement, LIUNA has adopted an Ethical Practices Code ("EPC") designed to root out corruption from LIUNA and its affiliated entities and an Ethics and Disciplinary Procedure, which created an independent structure consisting of the GEB Attorney and the LIUNA Inspector General to investigate and prosecute potential violations of the EPC and an Independent Hearing and an Appellate officers to adjudicate these charges. In February 1998, the

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Chicago Laborers District Council was placed into trusteeship by LIUNA as a result of that internal reform program.

    4    The United States and LIUNA, by and through Robert Luskin its GEB Attorney, bring this suit so the United States can obtain equitable relief and for injunctive relief pursuant to the Racketeer Influenced and Corrupt Organizations statute, Title 18, United States Code, Sections 1961 through 1968, (hereafter "RICO") , to support and advance the actions taken pursuant to the internal reform program in order to put an end to systemic and long-standing corruption and the involvement of organized crime in the affairs of the CLDC and to restore control of its affairs to the delegates and officers of the CLDC and the rank and file members of its constituent local unions.

    5 . The United States and LIUNA, by and through Robert Luskin its GEB Attorney, allege that there has been a conspiracy to acquire and maintain control of the CLDC as well as a conspiracy to conduct the affairs of the CLDC through a pattern of racketeering activity. This pattern of racketeering activity has consisted of multiple acts indictable under Title 18, United States Code, Section 1951 involving Hobbs Act extortion, in that the CLDC, through its officers, 'members, agents and representative, together with various members and associates of organized crime have extorted and attempted and conspired to extort the rights of union members to, among other things, select officers, vote without intimidation, and be loyally and faithfully represented by union officers and benefit plan trustees.

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II

JURISDICTION

    6 . Jurisdiction in this action is predicated upon Title 18 United States Code, Section 1964(b); and Title 28, United states Code, Sections 1331, 1345, and 2201.

III

VENUE

7. Venue for this action is predicated upon Title 18, United States Code, Section 1965(a) ; and Title 28, United States Code, Section 13 91 (b) .

8. The United States and LIUNA invoke the expanded service of process provisions of Title 18, United States Code, Section 1965(b).

IV

LA COSA NOSTRA

9. Introduction: La Cosa Nostra (hereafter referred to alternatively as "the LCN," "the mafia," "the mob," or the "outfit"), which name is based on a phrase which translates into English from the Italian language as "this thing of ours" or "our thing," is a nationwide criminal organization which operates in various cities throughout the United States. The LCN is composed of groups of men of Italian descent who are organized into units which are referred to as a "family," or, in the Italian language, "il borgata." A person becomes a member of an LCN family through

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a ceremony which is conducted in a manner designed to keep it, and the existence of the family, secret from persons who are not members of the LCN. Each family of La Cosa Nostra is headed by a boss" who is assisted by an "Underboss" and a "consigliere," or counselor. The family conducts its criminal activities through entities known as "crews." A crew is headed and supervised by a person referred to variously as a "street boss," a "Crew boss," a "caporegima," a "capodecina," a "capo" or some other such name. Each crew consists of formally inducted members of the family who are commonly referred to as "soldiers" or "made members" and persons who are not members, but who knowingly participate and cooperate in the activities of the family, who are referred to as "associates." Persons who have been formally inducted into membership in an LCN family are often referred to as having been "made," "straightened out," or as being a "made member."

a. The LCN Commission: The affairs of the LCN are governed by a "commission" (hereafter "the Commission") which is composed of the bosses of the most significant families. The boss of the LCN family in Chicago has served as a member of the Commission. The Commission serves as the national ruling council of the LCN families. Among other matters, the Commission has regulated, facilitated and controlled relationships and settled disputes between and among the LCN families. The Commission also has approved the admission of new members to the various LCN families and the selection of the bosses of the families. To

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frustrate law enforcement scrutiny, the Commission meets infrequently.

b. LCN Families: Each family of La Cosa Nostra is identified by the name of its boss, the name of a former boss, or by the city in which it is located. The Chicago family is headquartered and operates in the area of Chicago, Illinois, in the Eastern Division of the Northern District of Illinois, in other areas of Illinois, and in various locations in Florida and the western part of the United States. The Chicago family is commonly referred to as "The outfit." Historically, the Chicago Laborers District council has had strong ties to the Chicago Outfit, in particular, the North Side/Rush Street Crew, the 26th street/ Chinatown Crew, the Chicago Heights Crew and the Grand Avenue Crew.

C. Judicial Authority for the Existence of the LCN: The existence of the LCN has been proved in a number of cases including, among others: United States v. _Infelise, et al. 90 CR 87, in the United States District Court for the Northern District of Illinois, affirmed in United States v. DiDomenico, 78 F. 3d 294 (7th Cir.) , cert. denied, 117 S. Ct. 507 (1996) ; United States v. Carlisi, 92 CR 1064 in the United States District Court for the Northern District of Illinois, affirmed in United States v. Zizzo, 120 F.3d 1338 (7th Cir. 1997) ; United States v. Salerno, et al., No. SSS85 Cr. 139 (RO) , in the United States District Court for

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the Southern District of New York, affirmed in 868 F. 2d 524, 534-538 (2d Cir.), cert. denied, 493 U.S. 811 (1989) (hereafter "Salerno I" or "the Commission case") ; United States v. Salerno, et al., No. 86 Cr. 245, in the United States District Court for the Southern District of New York (hereafter "Salerno III' or the "Genovese family case") ; United States v. Angiulo, et al., No. Cr. 83-235, in the United States District Court for the District of Massachusetts, affirmed in United States v. Angiulo, 897 F.2d 1169 (1st Cir.), cert. denied, 498 U.S. 845 (1990); United States v. Scarfo, et al., No. 88-00003-1-19, in the United States District Court for the Eastern District of Pennsylvania, affirmed in United States v. Pungitore, 910 F. 2d 1084, 1148-1149 (3d Cir. 1990) , cert. denied, 500 U.S. 915 (1991).

V

THE PARTIES

10. The Plaintiffs:

a. The United States of America, plaintiff herein, is a sovereign and body politic. The Attorney General of the United States, pursuant to Title 18, United States Code, Section 1964(b), has authority to seek equitable and injunctive relief under RICO.

b. Plaintiff LIUNA is a "labor organization", as that term is defined in Title 29, United States Code, Section 402(I),

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that is, a labor organization engaged in an industry affecting commerce which exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours and other terms and conditions of employment. Robert Luskin is the General Executive Board Attorney for LIUNA. As part of the Ethics and Disciplinary Procedure adopted by LIUNA in January 1995, all of the investigative and disciplinary powers described in the LIUNA Constitution, the Uniform District council Constitution and the Uniform Local Union Constitution were delegated to Robert Luskin, as the GEB Attorney, for the purpose of fulfilling the mandate of the GEB and the General President to rid LIUNA of all corrupting influences. Pursuant to Title 18, United States Code, Section 1964 (c) , LIUNA, as an entity "injured in its business or property by reason of a [RICO] violation" has authority to sue and "recover threefold the damages it sustains and the cost of the suit, including a reasonable attorney's fee."

11. Defendant Chicago Laborers District Council: The defendant Chicago Laborers District Council consists of and oversees the operation of 21 constituent local unions (hereafter, the "Locals") in the Chicago metropolitan area affiliated with LIUNA. The CLDC is organized under and operates pursuant to LIUNA's International Union Constitution, the Uniform District Council Constitution and the Uniform Local Union Constitution. The CLDC therefore is a

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"labor organization," as that term is defined in Title 29, United States Code, Section 402 (1) , that is, a labor organization engaged in an industry affecting commerce which exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours and other terms and conditions of employment - The Chicago Laborers District Council is also an employee organization representing employees engaged in commerce and in an industry and activity affecting commerce within the meaning of Title I of the Employee Retirement Income Security Act of 1974 ( ( ( "ERISA" ).

a. Composition of Membership: LIUNA represents a variety of general laborers, including masons' helpers, general construction laborers, municipal workers, highway construction laborers, pipeline laborers, excavators, watchmen, asbestos removers, pavers, and stone cutters.

b. Purpose and Operation of a District Council: Under LIUNA's Uniform District Council Constitution, the members of the Chicago Laborers District Council consist of delegates from the locals affiliated with the district council. Under Article XIX of the International union Constitution, I affiliated local unions may be combined into an area district council. District councils may be created either at the discretion of LIUNA's General Executive Board or the General President and General Secretary-Treasurer or upon application by a group of local unions. They are formed in order to combine economic power, effort and

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strength into a unit which would tend to enhance, promote and conserve the welfare and interest of themselves and their members. " Article I, Section 1 of the Uniform District Council Constitution. District councils have broad powers to negotiate collective bargaining agreements with employers and to determine and levy a per capita tax, initiation fee, readmission fee, or other lawful fee or assessment on its affiliated Locals to defray council expenses. In effect, the district councils supervise all of the activities of their constituent local unions.

c. Potential for Abuse: While district councils can serve a worthwhile purpose, they can also be used by corrupt elements as tools of control in that domination of the district council entails control of the constituent locals. The rank and file members of the union do not directly participate in the actions of the district council. The members of the district councils are the elected delegates from the constituent local unions. Uniform District Council Constitution Article IV, Section 1.

d. Composition of the CLDC: The Chicago Laborers District Council is headquartered at 6121 West Diversey Avenue in Chicago, Illinois. The 21 constituent Locals represent approximately 19,000 members in the greater Chicago metropolitan area. The 21 constituent Locals comprising the CLDC are: Locals 1, 2, 4, 5, 6, 25, 75, 76, 96, 118, 149, 152, 225, 269, 288, 582, 681, 1001, 1006, 1035 and

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1092. Each Local has jurisdiction over a particular geographical area within Cook, Lake, DuPage, Will, McHenry, Kane and Grundy Counties. The members of the CLDC consist of approximately 70 delegates, with each affiliated local sending two to five delegates (the "Delegates") based on the size of its membership. These delegates, in turn, elect the CLDC officers, including the seven members of the District Council Executive Board (the "Executive Board"). 

e. Officers of the CLDC: Pursuant to Article V, Section 1(a) of the Uniform District Council Constitution, the officers of the CLDC consist of the President, vice President, Secretary-Treasurer, Business Manager, Sergeant at-Arms and three auditors. The CLDC is governed by an Executive Board that consists of the CLDC President, Vice President, Secretary -Treasurer, Business Manager, and three additional delegates from the Locals.