www.thelaborers.net

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. ) 99 C 5229

) Judge Gettleman

CONSTRUCTION & GENERAL LABORERS’ )

DISTRICT COUNCIL OF CHICAGO AND )

VICINITY, an affiliated entity of the Laborers’a )

International Union of North America, )

)

Defendant, )

MONITOR’S SECOND QUARTERLY REPORT TO THE COURT

Pursuant to Section 18 of the Consent Decree, the Monitor is required to file a Quarterly Report describing the actions he has taken toward achieving the objectives and purposes of the Consent Decree. This First Quarterly Report describes the Monitor’s actions from the period August 29, 1999 to November 29, 1999. The Second Quarterly Report describes the Monitor’s actions from December 1, 1999 to February 16, 2000.

Election Certification

§ 17 of the Consent Decree requires the Monitor to “rule on the eligibility [of candidates] to run for and hold office in the CLDC”. § 22 of the Consent Decree requires the Monitor to consult with the Trustee, GEB Attorney, LIUNA Inspector General and United States Attorney in rendering any disqualification decision.

On January 3 and 4, 2000, nominations for the election of Chicago District Council officers were received by the Trustee. The following slate and individual nominations were submitted to the Trustee:

Slate Nomination

Frank Riley

Liberato Naimoli

James P. Connolly

Jeff M. Ziemann

John Michael Lazzaretto

Scott Pavlis

Randy L. Dalton

Tod Masters

Dennis R. Johnson

Joseph Coconato

Joseph A. Mann

Individual Nomination

Charles V. LoVerde Jr.

Following receipt of the nominations, the background, prior union activities and other available pertinent information for each nominee was reviewed by the Monitor. The United States Attorney, GEB Attorney, Trustee and LIUNA Inspector General were then solicited for their views regarding each candidate's eligibility for office. Following this process, each candidate was certified by the Monitor as eligible for election.[1]

Document Review and Analysis

During the second quarterly period, voluminous documentary materials were received from Locals 1, 1001, 1006 and the Training Fund, in response to subpoenas issued in the first quarterly period. In addition, during the second quarterly period, the files of the GEB Attorney and the LIUNA Inspector General were examined in Washington D.C. by the Monitor, for the purpose of identifying evidence relevant to enforcement of the Consent Decree. These materials consist of detailed financial records of various locals and fiduciary funds, interviews, investigative reports, minutes, LM-2 Forms, Form 5500’s, and hearing transcripts (including trials, depositions and internal disciplinary and trusteeship hearings).

Upon completion of document review, depositions will commence.

Charges

The Monitor anticipates filing the first disciplinary charge within the next sixty days.

Other Investigative Activities

Interviews continue of persons with possible knowledge of Consent Decree violations.

Respectfully Submitted,

Steven Miller

Monitor

The Monitor has conducted interviews of other individuals with possible knowledge of conduct constituting violations as set forth in _____.

Organizational Activities

Because of the potentially vast scope of the Monitor’s jurisdiction, the limited time frame and budget available to accomplish the assignment, prudent choices must be made as to the focus of the investigative efforts. Additionally, in light of the investigations, disciplinary and trusteeship proceedings previously conducted by the LIUNA GEB Attorney and the rulings of Independent Hearing Officer Peter Vaira in those matters, it has been necessary to carefully review their work in order to identify relevant evidence and avoid duplication of efforts.

Toward this end, I and/or my designees have met and conferred with the following people[2]:

1. Robert Luskin, GEB Attorney

2. Dwight Bostwick, Office of GEB Attorney

3. Matthew Paul, Office of GEB Attorney

4. Peter Vaira, Independent Hearing Officer

5. Seymour Simon, Independent Hearing Officer

6. Douglas Gow, LIUNA Inspector General

7. William Rice, LIUNA Deputy Inspector General

8. Quest International Consulting (private investigative firm retained by the LIUNA Inspector General: Robert Scigalski, Joseph Griffin, Jack O’Rourke, Leone Flosi)

9. Vincent Connelly, Counsel to Bruno Caruso

10. Ed Hogan, Counsel to Local 1

11. George Leighton, Counsel to Local 1001

12. John Mallul, FBI

13. Dave Buvinger, United States Attorneys Office

14. Craig Oswald, United States Attorneys Office

15. Robert Bloch, CLDC Trustee

16. Peter Dowd, Counsel to various Taft-Hartley funds administered by the CLDC

17. Various former delegates to the CLDC

18. Manny Ramirez, United States Department of Labor

19. Tom Moriarty, Criminal Investigation Division, Internal Revenue Service

20. Thomas M. Bourgeois, FBI

21. Ernest Luera, FBI

Document Review

Document review of the evidentiary and litigation materials possessed by the LIUNA Inspector General and GEB Attorney has been conducted in Washington D.C. In addition, selective transcripts from the CLDC trusteeship hearings and disciplinary hearings of members of CLDC – affiliated LIUNA locals and various rulings of Hearing Officer Peter Vaira have been reviewed.

Investigative Plan

An investigative plan has been formulated which identifies the individuals and entities that will be the focus of the investigation. The list is subject to revision based on a variety of factors, including new leads and development of evidence as our work progresses. Because of the confidential nature of the investigative plan, it is not disclosed in this Report. Upon request, a copy will be provided to the Court in camera.

Subpoenas

The Monitor has issued eleven subpoenas to date. The subpoenas have been directed both to LIUNA - affiliated entities and to third parties. The entities to which subpoenas have been directed are not disclosed herein because public dissemination at this time will not advance the objectives of the Consent Decree, may compromise the Monitor’s investigation or prematurely subject certain people or entities to unfair criticism simply by virtue of subpoenas having been issued. The subpoenas are available for the Court’s in camera review.

In lieu of a subpoena, a comprehensive letter request for documents from the CLDC has been served upon its Trustee.

Witness Interviews

Interviews of individuals with possible knowledge of actions constituting violations under the Consent Decree have commenced. Because disclosure of the interviewees at this time will not advance the objectives of the Consent Decree and may pose security issues, the names are omitted from this Report, but will be disclosed to the Court in camera upon request.

The Monitor reserves the right to disclose items treated confidentially in this Report at a later date, when in his Judgment, it will advance the objectives of the Consent Decree.

DATED: February 26, 2000

Respectfully Submitted,

_________________________________

Steven A. Miller

Monitor

Steven A. Miller

SACHNOFF & WEAVER, LTD.

30 South Wacker Drive

Suite 2900

Chicago, IL 60606

(312) 207-1000

288100

Email Illinois Police and Sheriff's News
Email Jim McGough

[1] The Monitor’s Certification is made without prejudice to his future ability to bring disciplinary actions if and when warranted.

[2] Certain names have been omitted from this list because public disclosure at this time would, in the Monitor’s judgment, not promote the objectives of the Consent Decree, pose possible safety risks or otherwise compromise the investigation.