In
the Matter of Local 1058
Laborers’ International Union of North America
Independent
Hearing Officer
Docket No. 00-08T
Decided
March 9, 2001
Order and Memorandum
PROCEDURAL HISTORY
This Order and
Memorandum addresses the Complaint for Trusteeship filed by the General
Executive Board Attorney (GEB Attorney) on March 21, 2000, against Laborers’
International Union of North America (LIUNA) Local Union 1058 (Local 1058) in
Pittsburgh, Pennsylvania. The Independent
Hearing Officer (IHO) granted the GEB Attorney’s request to hold the hearing on
July 10-13, 2000, and July 24-27, 2000.
Prior to the hearing,
Local 1058 filed a Motion for Full Disclosure, a Motion for Full Disclosure of
Documents, and a Motion for Witness List.
The IHO granted the motions in part and denied them in part. See
IHO Order of May 31, 2000. Thereafter,
Local 1058 filed a Motion for Preliminary Injunction in the United States
District Court for the Western District of Pennsylvania to prohibit the GEB
Attorney from proceeding with the hearing.
The Court denied the motion. See Construction,
Gen. Laborers and Material Handlers, Local Union 1058 v. Laborers Int’l Union
North America, No. 00-934 (W.D. Pa. filed June 9, 2000).
The GEB Attorney’s
Complaint for Trusteeship sets forth, in 21 numbered paragraphs, the factual
allegations surrounding the charges. In
the Complaint, the GEB Attorney sets out the alleged structure of the
Pittsburgh La Cosa Nostra family and Local 1058’s association with that
organization. The factual allegations
assert that most current and former officers of Local 1058 knowingly associate
or associated with members of organized crime.
The GEB Attorney’s Complaint names the following as current Local 1058
officers: Joseph LaQuatra,[1]
Louis Dennis Martire, Gerald Pecora Jr., John LaRocca Jr., Joseph
Frydrych, Philip Ameris, and Michael LaQuatra.
The Complaint alleges that a trusteeship is necessary to eradicate Local
1058’s ties to organized crime and to restore democratic practices within the
union. The Complaint also alleges that
the Local 1058 officers’ failure to investigate the alleged organized crime
ties of its officers warrants a trusteeship.
TRUSTEESHIP REQUIREMENTS
The Labor Management
Reporting and Disclosure Act (LMRDA) gives a governing body, in this case
LIUNA, discretion in placing its member organizations in trusteeship to correct
certain problems. See 29 U.S.C. §§ 461-466; LIUNA International Union Constitution
(International Constitution), Article IX, Section 7. Courts will only override this discretion if the union brings its
complaint in bad faith or for an improper purpose. See 29 U.S.C. §
464(c). Permissible purposes for
establishing a trusteeship include, inter
alia, “correcting corruption or financial malpractice, . . . [and] restoring
democratic procedures . . . .” 29
U.S.C. § 462. In addition, the
International Constitution and the Ethics and Disciplinary Procedure (EDP)
permit LIUNA to impose a trusteeship over a subordinate body to correct
mismanagement and corruption caused by the officers’ knowingly associating with
organized crime.
A governing body seeking to
impose a trusteeship upon its subsidiary must give the targeted entity a full
and fair hearing. See 29 U.S.C. § 464(c).
Under 29 U.S.C. § 462, the minimum requirements for a fair hearing
are: notice of the charges; presentation of evidence and witnesses; and an opportunity for cross-examination. See
Int’l Bhd. of Boilermakers v. Local Lodge
D461, Cement, Lime, Gypsum and Allied Workers Div. of Int’l Bhd. of Boilermakers,
663 F. Supp. 1031, 1034 (M.D. Ga. 1987), aff’d,
667 F. Supp. 835 F.2d 1439 (11th Cir. 1987).
In this matter, Local 1058 received proper notice of the hearing. The hearing consisted of ten days of
testimony. At the hearing, the GEB
Attorney presented five witnesses and 123 exhibits. The attorneys for Local 1058, a former United States Attorney and
a former Assistant United States Attorney, engaged in extensive
cross-examination. Following the GEB
Attorney’s presentation there was a recess of one week, after which Local 1058
presented its defense. The union
attorneys called 21 witnesses and entered eight exhibits into the record. Each party filed extensive post-hearing
briefs.
EVIDENTIARY
CONSIDERATIONS
Burden of Proof
The GEB Attorney must establish the
grounds for a trusteeship by a preponderance of the evidence. See In
the Matter of Local 225, IHO Order and Memorandum, 97-54T (March 17, 1998),
citing, In the Matter of Construction
& Laborers’ District Council of Chicago and Vicinity (Chicago District
Council), IHO Order and Memorandum, 97-30T (February 7, 1998). In this case, the GEB Attorney avers that, inter alia, the current and former Local
1058 Executive Board members’ knowing association with organized crime figures
warrants the imposition of a trusteeship.
Under the EDP, the term “knowingly associate” means that: (a) an individual knew that the person with
whom he or she was associating was a member or associate of the La Cosa Nostra
(LCN); (b) the association related
directly or indirectly to the affairs of the union; and, (c) the association
was more than fleeting or casual. EDP
Section 1.
The requirement that the
knowing association be “directly or indirectly related to the affairs of the
union” is liberally construed to effect the purpose of the EDP. In the
Matter of Rocco J. Napoli and Thomas J. Fallacara (Fallacara), IHO Order
and Memorandum, 96-65D (September 25, 1997).
The major goal of the LUINA reform process is to rid the union of the
influence of organized crime.[2] Id. The phrase “directly or indirectly
related to the affairs of the union” encompasses any reasonable relationship to
the affairs of the union, its members, or its officers. Id. The relationship to the affairs of the union
need only reflect that the “knowing association” permits undesirable
individuals to have easy access to the union officers. Id.
Under the EDP, the GEB
Attorney must demonstrate that the charged parties’ association was “more than
fleeting or casual.” EDP Section 1; Cf., United
States v. Int’l Bhd. of Teamsters,
Chauffeurs, Warehousemen and Helpers of America (Int’l Bhd. of Teamsters),
824 F. Supp. 410, 414 (S.D.N.Y. 1993); United
Sates v. Int’l Bhd. of Teamsters, 745 F. Supp. 908, 909 (S.D.N.Y.
1990)(contact that was “knowing, purposeful and not fleeting” constituted
“knowing association”) aff’d, 941
F.2d 1292 (2d Cir. 1991), cert. denied,
502 U.S. 1091 (1992).[3] In order to establish knowing association,
the GEB Attorney must first prove that the charged party knew that the person
with whom they were associating was a member or an associate of the LCN. EDP Section 1. “Knowledge” can be established in three ways: (1) the individual had actual knowledge that
the person with whom they were associating was and LCN member; (2) the individual reasonably should have
known that the person with whom they were associating was an LCN member; and, (3) the individual deliberately
remained ignorant of facts that would demonstrate that the person with whom
they were associating was an LCN member.
See Fallacara, 96-65D.
Actual knowledge may be
established by drawing rational inferences from the facts and circumstances
surrounding the case which support that the charged party knew that their
conduct was unauthorized or illegal. See, e.g., Liparota v. United States,
471 U.S. 419, 434 (1985); United States v. Int’l Bhd. of Teamsters,
764 F. Supp. 797, 801-02 (S.D.N.Y. 1991), aff’d
without opinion, 956 F.2d 1161 (2d Cir. 1992). In the absence of direct evidence of knowledge of a person’s
organized crime ties, knowledge may be inferred from the duration and quality
of the association. See, e.g., Investigations Officer v. Senese, Decision of Independent
Administrator (July 12, 1990), aff’d,
United States v. International Bhd. of Teamsters (Senese and Talerico), aff’d, 941 F.2d 1292 (2d Cir. 1991), cert. denied, 502 U.S. 1091 (1992). Facts establishing constructive knowledge
sufficiently prove violations of the EDP.
See Fallacara, 96-65D. Finally,
intentional ignorance is the legal equivalent of knowledge. See,
e.g., United States v. Antzoulatos, 962 F.2d 720, 724 (7th Cir.), cert. denied, 506 U.S. 919 (1992); United States v. Jewell, 532 F.2d 697,
700 (9th Cir.), cert. denied, 426
U.S. 951 (1976). Intentional ignorance
exists where a person “recognizing the likelihood of wrongdoing, nonetheless
consciously refuses to take basic investigatory steps.” United
States v. Saint Michael’s Credit Union, 880 F.2d 579, 585 (1st Cir.
1989).
Hearsay Evidence
GEB
trusteeship proceedings are similar to administrative proceedings in which the
“rules governing the admission of evidence . . . are considerably more
relaxed.” United States v. International Bhd. of Teamsters (Wilson, Dickens &
Weber), 978 F.2d 68, 72 (2d Cir. 1992); Rocker
v. Celebrezze, 358 F.2d 119, 122 (2d Cir. 1966) (footnote omitted). Accordingly, reliable hearsay evidence is
admissible in labor arbitration. See, e.g., Associated Cleaning Consultants and International Bhd. of Printing and
Allied Trades Local 327, 94 LA 1246 (1990); In the Matter of Joseph P. Crincoli (Crincoli), IHO Order and
Memorandum, 97-04D (Oct. 27, 1997); Chicago
District Council, 97-30T; Elkouri and Elkouri, How Arbitration Works (4th ed. 1994). The hearing officer in union disciplinary
proceedings arising under the Teamsters Consent Decree regularly admits hearsay
evidence. See United States v.
International Bhd. of Teamsters (Cimino), 964 F.2d 1308, 1312 (2d Cir.
1992) aff’g, 777 F. Supp. 1130
(S.D.N.Y. 1991); Senese & Talerico,
941 F.2d at 1297. As is the practice
and custom of labor arbitrators, the IHO bases hearsay evidence decisions on a
thorough review of what is probative and reliable. See Chicago District Council, 97-30T; see also Senese & Talerico, 941 F.2d at 1298, citing, Richardson v. Perales,
402 U.S. 389, 402 (1971).
In the past, the IHO
accepted informant information under strict qualifications. Those restrictions are repeated here. Informant information will only be accepted
if it serves as the basis of a qualified law enforcement person’s expert
opinion. Further, the informant must
have provided the information to a professional law enforcement agency. That law enforcement agency must have a
formal system of evaluating and qualifying informant information. Acceptance of informant information is not
automatic; the IHO evaluates each law enforcement agency on a case by case
basis. See In the Matter of John Matassa Jr. (Matassa Jr.), IHO Order and Memorandum, 98-43D (May 12, 1999); In the Matter of Bruno Caruso, Frank Caruso,
Leo Caruso (Caruso), IHO Order and Memorandum, 99-12D (January 10,
2001). The IHO’s evaluation method is
similar to the procedure employed by the Independent Administrator of the
teamsters union.[4] See
Senese and Talerico, 745 F. Supp. 908
(S.D.N.Y. 1990).
At the hearing,
Federal Bureau of Investigation (FBI) Special Agent Greenbank explained how the
FBI develops a confidential informant.
Initially, the FBI opens a “suitability inquiry” file, assigning the
individual a number and a code name.
Hearing Transcript (Tr.) 65. In
the first three months, the handling agent and the agent’s immediate supervisor
evaluate information received from the source.
Tr. 65-66. During that time, any indication that the informant is providing false information
prevents the FBI from converting the individual to “full informant”
status. Id. Following a successful
“suitability inquiry,” which can extend up to six months, the FBI deems an
informant reliable and operates the informant on a continuing basis. Id. Special Agent Greenback added that, in the
1980s, the United States Attorney General issued specific guidelines for all
federal agencies handling informants. Id.
Federal agents give these guidelines to each informant and specifically
explain every guideline. Id.
WITNESSES
GEB Expert Witnesses
Special Agent Greenbank
Special Agent
Greenbank (Agent Greenbank) began his FBI employment in 1975. Tr. 31.
He was first assigned to the Philadelphia office for two years, and then
assigned to the FBI’s Pittsburgh office in 1979. Id. Agent Greenbank primarily investigates
organized crime and narcotics in the Pittsburgh area. Id. Agent Greenbank is fully knowledgeable about
the various organized crime investigative techniques employed by the FBI. During his 26 years of investigating
organized crime, Agent Greenbank has been the case agent on numerous
investigations. Tr. 31-33. He has executed search warrants, contributed
to affidavits for search warrants and electronic surveillance, and testified numerous
times in criminal prosecutions.[5] Id.
Agent Greenbank’s
knowledge of the Pittsburgh LCN prior to 1979 stems from working with other
agents assigned to the office, reviewing FBI intelligence files, and talking to
other state and local law enforcement agencies. Tr. 35. He has also
interviewed cooperating witnesses with first hand knowledge of Pittsburgh’s
organized crime activities. Tr.
36. Agent Greenbank offered his opinion
as an expert on organized crime; the IHO accepted Agent
Greenbank as an expert in this area.
Agent Greenback based
his expert opinion, in part, on two informants set out below as Confidential
Sources 12 and 13.
Agent Greenbank
identified Confidential Source 12 (Source 12) as an employee of the Allegheny
Car Wash (Car Wash) from 1974 until 1977.
Tr. 64. The Car Wash was owned
by Pittsburgh LCN boss, John LaRocca Sr. (LaRocca Sr.). Tr. 36, 63.
Source 12’s Car Wash employment began before Source 12 become an FBI
informant. Tr. 67. At the time Source 12 began cooperating with
the FBI, this informant had a criminal record.
Tr. 76. Source 12 received some
payments from the FBI for providing information. Tr. 78.
Source 12 knew the Car Wash
owner’s identity and many of the Car Wash visitors. Id. Source 12 reported information several
times a month to FBI handling agents.[6] Tr. 64.
The information Source 12 reported included: all the license plate numbers of every car entering the Car Wash
property, particularly any cars that entered for the sole purpose of seeing
LaRocca Sr.,[7]
and the subject matter of meetings that occurred between LaRocca Sr., various
LCN members, associates, and Local 1058 officers. Tr. 67-124. Agent
Greenbank reviewed Source 12’s file, which was replete with the handling agents’
verifications deeming Source 12 accurate and reliable. Id.
During
the 1970s and 1980s, the FBI penetrated the Pittsburgh LCN family with a
confidential informant known as Confidential Source 13 (Source 13). Tr. 125.
Source 13 was closely associated with the LaRocca LCN family since the
1950s. Id. Source 13 was a member
of Local 1058 and held an executive position with the union at some point. Id. The FBI designated Source 13 as a top
echelon informant. Id. Independent FBI
surveillance corroborated Source 13’s information; Source 13 was often observed
with LCN members. Id. Agent Greenbank never
met this informant; he based his knowledge on information garnered by various
agents that handled the individual.
Tr. 124-125.
Professor
Clyde Summers
Professor Clyde Summers
(Professor Summers), a Professor of Labor and Employment Law at the University
of Pennsylvania Law School for the past 25 years, participated in drafting the
LMRDA, and has authored numerous articles on the rights of union members. Tr. 496-503. Professor Summers testified generally about organized crime’s
impact on union democratic practices. Id.
In preparation for this
hearing, Professor Summers reviewed all of the depositions taken by the GEB
Attorney in the case, as well as a collection of minutes from the Executive
Board and general membership meetings.
Tr. 506. The minutes Professor
Summers reviewed pertained specifically to the selection, nomination, and
election of officers. Id.
The IHO accepted Professor Summers as an expert witness in the field of
democratic rights of union members and union democracy. Tr. 505.
Professor Summers previously testified before the IHO in a similar
capacity. Tr. 494.
Other GEB Witnesses
Ronald Fino
Ronald
Fino (Fino) was a member of LIUNA Local 210 Buffalo, New York (Local 210) from
1965 through 1988, and was Business Manager from 1973 until early 1988. See
In the Matter of Bifulco, IHO Order
and Memorandum, 96-48D (March 17, 1998).
Fino became the Local 210 Business Manager in 1973 with the LCN’s
assistance. Tr. 573. Fino is the son of Joe Fino, now deceased,
who was the acting boss of the Buffalo LCN from 1968 through 1972. Tr. 572; see
also Bifulco, 96-48D. Fino secretly cooperated with the FBI for 18
years, including the entire time he was Business Manager. Tr. 576, 577. The FBI interviewed Fino over a thousand times during that
period. See Bifulco, 96-48D.
In
the instant hearing, Fino testified about conversations he had with members of
Local 1058 while attempting to bid jobs in Pittsburgh for his Buffalo based
company, Hazardous Waste Management (HWM). Tr. 570, 581. Fino stated that, in the
fall of 1989, he traveled to Pittsburgh for a pre-bid walk through of a project
at USX Steel. Tr. 581. Fino met with Joseph LaQuatra (Joe
LaQuatra), Local 1058’s Business Manager, who he knew from conferences
sponsored by the International Union.
Tr. 582. Fino sought out Joe
LaQuatra “because he [Joe LaQuatra] was the head of the Pittsburgh local and I
[Fino] wanted to line up laborers for the job that I [Fino] was bidding.” Id. Fino testified that Victor Sansanese
(Sansanese), Director of the Buffalo Training Center for LIUNA and a member of
the Buffalo LCN, met him when he returned to Buffalo. Tr. 583. Sansanese
purportedly told Fino that he had no authority to bid Pittsburgh jobs without
the approval of the Buffalo LCN. Id.
Consequently, Fino said that he did not bid the USX Steel job. Tr. 584.
The GEB Attorney contends that this episode indicates that the LCN
controls Local 1058.
The
GEB Attorney previously offered Fino’s testimony in the disciplinary hearing of
over 20 Buffalo LCN members and associates, including Sansanese. See Bifulco, 96-48D. That hearing was directed toward, inter alia, proving that Sansanese was
a LCN member. Id. Fino testified
extensively about his interactions with Sansanese; however, his Bifulco testimony did not include any
references to the alleged Pittsburgh meetings or to Sansanese’s admonition to
obtain permission from Buffalo before bidding jobs in Pittsburgh. Id. In the Bifulco hearing, the IHO credited Fino’s testimony about his
various LCN relationships. Id. The
IHO did not credit Fino’s testimony regarding his HWM business ventures or his
business ventures outside of Buffalo, New York; the IHO was not impressed with Fino’s version of his dealings
with Sansanese on these matters.
The IHO does not credit
Fino’s testimony in this hearing, after comparing it to his Bifulco testimony on the same subject matter. As mentioned, Fino omitted incidents from
his Bifulco testimony, the Pittsburgh
visit and his meeting with Sansanese, that would have been both memorable and
factually pertinent to the Bifulco case. In the instant hearing, Fino did not testify
that anyone in Pittsburgh either asked him for a kickback for the work, or
directed him to seek permission from the Buffalo LCN when he attempted to bid
the USX Steel job. While the Buffalo
LCN may have had some interest in controlling Fino’s activities, Fino’s current
testimony is not probative of any Local 1058 LCN affiliation.
Richard Marchese
Richard
Marchese (Marchese) testified for the GEB Attorney via telephone. Tr. 594.
Marchese is currently serving a 75-month federal prison sentence. Marchese’s extensive criminal record
includes convictions for drug trafficking, possession, and counterfeiting. Tr. 597.
Marchese
testified that he knew LaRocca Sr. and Michael Genovese (Genovese), LaRocca
Sr.’s successor as LCN boss, from his East Liberty neighborhood. Tr.
600-601. Marchese stated that
Genovese was the neighborhood contact for acquiring jobs with Local 1058. Tr. 603.
At Marchese’s request, Genovese contacted Theodore R. Cozza (Teddy
Cozza), President of Teamsters Local 211 at the time, to get Marchese a job as
a Teamster. Tr. 603-604. Thereafter, Marchese began working for the
Triangle News stocking shelves. Id. Marchese wanted a more lucrative
truck driving position with the Pittsburgh Post Gazette. Id. Marchese testified that Joe LaQuatra
arranged for him to meet LaRocca Sr. at the Rosa Villa Restaurant to discuss
Marchese getting the job he wanted. Tr.
608. One month later, Marchese got a
job driving trucks. Id.
Marchese’s
testimony pertained to events that occurred sometime in the 1960s. Tr. 603.
Marchese did not offer the names of any persons who received LIUNA jobs
through the LCN, nor did he mention any particular construction sites that may
have been LCN controlled. Further, the
bulk of Marchese’s testimony pertained to Teamsters’ Local 210. Therefore, the IHO does not find Marchese’s
testimony probative in this matter.
Other Confidential Informants
The
GEB Attorney presented the hearsay testimony of two other confidential
informants through Agent Greenbank’s testimony, designated Confidential Sources
1 and 9. Tr. 178-181. The IHO finds their testimony vague and
uncorroborated. Accordingly, the
hearsay testimony of Confidential Sources 1 and 9 are given no weight.
The
GEB Attorney also attempted to elicit the anonymous hearsay testimony of three
individuals who “could have qualified as informants” through the testimony of
John Poerstel, a LIUNA inspector. Tr.
657-692. This evidence did not meet the
informant hearsay requirements discussed supra. Id. The IHO rejected the evidence as
unreliable and it was not made of record.
Id.
Local 1058 Members and Officers Testifying for the Union
Shirley Kaczmarek
Shirley Kaczmarek
(Kaczmarek) is the office manager of Local 1058. Tr. 859. Local 1058’s
attorneys called Kaczmarek to testify about the election notice mailings that
were regularly sent to all members, and about the regular process for dealing
with member complaints. Tr. 862, 863,
877; Defense Exhibits (Def. Exs.) 2-7.
Kaczmarek also testified that Philip Ameris worked for six months with
no pay before being hired as a business agent.
Tr. 909.
Gerald J. Pecora Jr.
Current President,
Gerald J. Pecora Jr. (Gerald Pecora), was Recording Secretary from 1975 to May
2000. See Def. Ex.6; Tr. 1039, 1150.
In addition to his position as President, Gerald Pecora is a business
agent in the public employee sector.
Tr. 1041-1042. As business
agent, Gerald Pecora, handles employee grievances and negotiates top
contracts. Tr. 1043-1044, 1051. He serves the Zoological Society, the
Convention Center, Water and Sewer Authority, and Kane Hospitals. Tr. 1045-1046. Gerald Pecora described Local 1058’s nomination process. Tr. 1060-1066.
Louis Dennis Martire
Louis Dennis Martire
(Dennis Martire) became Local 1058’s Business Manager in May 2000. See
Def. Ex. 6; Tr. 1569. Dennis Martire
testified about Local 1058’s procedure for filling mid-term vacancies. Tr. 1591.
He explained that the Business Manager always makes a recommendation to
the Executive Board and the Executive Board votes on the recommendation. Id. The Executive Board members have never
objected to any of the Business Manager’s suggestions because the recommended
people are always well known to them.
Tr. 1591-1593. During his
Executive Board tenure, Dennis Martire has never personally recommended anyone
for office. Tr. 1610.
When asked about his
alleged association with LaRocca Sr., Dennis Martire testified that LaRocca Sr.
knew his father, Dante Martire. Tr.
1595. However, Dennis Martire testified
that he first met LaRocca Sr. with Thomas Pecora (Tom Pecora), then Local
1058’s Business Manager, when Tom Pecora introduced them at the Car Wash. Id. Following that introduction, Dennis
Martire testified that he got his car washed once every two weeks at the Car
Wash. Id. Dennis Martire disputes
the GEB Attorney’s allegations that he went to the Car Wash more frequently and
for any reason other than to get his car washed. Tr. 1597.
When questioned about
other alleged LCN associations, Dennis Martire admitted that that he visited
LaRocca Sr.’s home at Christmastime.
Tr. 1599. He denied having any
business meetings with Anthony A. “Wango” Capizzi (Wango Capizzi) at the Rose
Ridge Country Club; Wango Capizzi was simply there playing golf. Tr. 1604.
Clinton Wright, Richard Campbell, and
Frank Braun
Clinton Wright, a
Local 1058 member for 15 years, Richard Campbell, a Local 1058 member since
1983, and Frank Braun, a member of Local 1058 for 29 years, all testified on
the union’s behalf. Tr. 1288-1329. These men testified that the officers are
doing a good job, the membership is satisfied with their leadership, and that
the membership feels no need to run opposition candidates. Id. In each witness’s opinion, the members’
satisfaction explains why there are no contested elections. Id.
Louis Elesie
Louis Elesie (Elesie)
is a retired International Representative and formerly a Local 1058 business
agent. Tr. 1539-1543. Elesie’s territory as an International
Representative included parts of Pennsylvania and Delaware. Id. According to Elesie, a large number of
local unions across the country do not have
contested elections for long periods of time.
Tr. 1550. Elesie estimated that
twenty percent (20%) of the LIUNA locals have non-contested elections. Tr. 1552.
Pittsburgh
Attorneys Testifying on Behalf of Local 1058
Ralph Scalera
Ralph Scalera
(Scalera), formerly an Assistant United States Attorney and Federal Judge, is
senior counsel in the law firm of Thorpe, Reed & Armstrong. Tr. 1094-1095. Scalera sat on the Pennsylvania Labor Relation Board (PLRB) with
Dennis Martire, Local 1058’s current Business Manager. Tr. 1100.
Governor Thornburg appointed Dennis Martire to the PLRB in 1983. Id. Governor Ridge re-appointed Dennis Martire,
and he continues to serve on the PLRB. Id.
In Scalera’s opinion, Martire always displayed a high level of integrity
in his position on the PLRB. Tr.
1102.
Thomas
Sebastian Giotto
Thomas Sebastian
Giotto (Giotto) specializes in labor law and is a shareholder in the law firm
of Klett, Rooney, Lieber & Schorling.
Tr. 1252. Giotto has represented
many employers negotiating labor contracts with Local 1058. Tr. 1253-1254. Giotto testified that his dealings with Local 1058 are very
professional; Local 1058 officers are always willing to meet, are prepared, are
willing to negotiate for long hours, and represent their members very
well. Tr. 1255.
Samuel Kamin
Samuel Kamin (Kamin)
represents a number of municipalities that employ members of Local 1058. Tr. 1271-1272. Kamin has represented the municipalities in numerous job
grievances with Local 1058. Tr. 1273. He also negotiated a number of contracts
with Local 1058. Id. Kamin testified that
the officers of Local 1058 are very professional and represent their members
very well. Tr. 1273-1276.
Michael Healy
Michael Healy (Healy)
concentrates his legal practice in the field of labor and employment law. Tr. 1613.
Formerly a regional coordinator for the 1996 LIUNA International Election
Officer, Healy holds a similar position in the 2001 International Election.[8] Id. Healy testified that grievance hot lines
were set up during the 1996 International Election to field members’ election
complaints. Tr. 1622. There were no hot line complaints about
Local 1058’s election. Tr. 1623.
Healy reasoned that
Local 1058’s uncontested elections are the result of its craft union
membership. Tr. 1614-1616. Unlike the membership of industrial unions
who work together at the same plants or mines, craft union workers are
scattered across numerous work sites. Id. Consequently,
craft union workers do not associate with fellow union members beyond their
work site. Id. The diversity in craft
unions inhibits wide union interaction.
Id. This lack of union interaction accounts for the deficiency of
competing slates of election candidates.
Id.
Judge
Frank Lucchino
The Honorable Frank
Lucchino (Judge Lucchino), former Controller of Allegheny County, sits on the
Allegheny County Court of Common Pleas.
Tr. 1436, 1437. Judge Lucchino
and Dennis Martire are friends; they regularly play golf together at the Rose
Ridge Country Club. Tr. 1437. When questioned about the presence of LCN
associate Wango Capizzi during some of their golf outings, Judge Lucchino
testified that Wango Capizzi is a fellow club member who occasionally rounded
out their foursome when there was an opening.
Tr. 1441, 1442.
Local 1058
Business Associates
Robert
Gary Hecht
Robert Gary Hecht
(Hecht) is the President and Chief Executive Officer of Trumbull Corporation;
Executive Vice-President of P.J. Dick, Incorporated; President of Allegheny
Asphalt; Executive Vide-President of Lindy Construction; and President of
SynAggs. Tr. 1123. Hecht served on the Labor Committee of the
Constructors’ Association of Western Pennsylvania. Tr. 1125. Hecht’s companies employ between 1500 and
2000 laborers and have annual sales topping $250,000.00. Tr. 1124.
Hecht negotiates collective bargaining agreements with Local 1058. Tr. 1127-1130. In his opinion, Local 1058’s bargainers are always knowledgeable,
responsible, and reliable. Id.
Joseph
Garland
Joseph Garland
(Garland), a retired insurance agent, sold insurance to Local 1058. Tr. 1861-1863. Garland testified that he first met Tom Pecora at a political
rally. Tr. 1863. Several years later, Tom Pecora contacted
Garland about whole life insurance policies for union officers and business
agents. Tr. 1863-1864. Garland sold Local 1058 insurance. Id. Garland approached the local about changing
their existing policies when the insurance industry originated universal life
policies. Tr. 1865, 1866. At that time, Local 1058 switched insurance
companies from Massachusetts Mutual to Security Connecticut. Tr. 1867.
Garland has never met John LaRocca Sr.
Tr. 1869. Garland’s testimony
directly contradicts Source 13’s information given to Agent Greenbank.
John Pinto
John Pinto (Pinto) is
the Director of Mediation Services for the Federal Mediation and Conciliation
Service. Tr. 1720. Pinto’s testimony pertained to his
interactions with Local 1058 officers while he was a Local 66 field
representative and a member of the Pittsburgh Joint Collective Bargaining
Committee (PJCBC). Tr. 1721-1734. Pinto testified that he worked closely with
Gerald Pecora on the PJCBC until 1988, that Gerald Pecora was extremely helpful
to him, and that he considered Local 1058 a very stable union. Id. Pinto also dealt with other Local 1058
officers during contract negotiations and was generally impressed with Local 1058. Id.
Structure of Organized Crime
1.
The LCN, sometimes
referred to as the “Mob” or the “Mafia,” operates in various cities throughout
the United States as a tightly structured criminal organization. The LCN’s business is crime for profit.[9]
2.
The LCN has its origins
in late 19th century secret societies formed in Sicily and Southern
Italy. See Symposium – Perspectives
on Organized Crime, 16 Rutgers L.J. 439 (1985) (Symposium). Secret
societies emerged in the United States toward the end of the 19th
century. Id. at 440. These secret
societies were the antecedents of the present LCN. Id. at 441.
3.
In the late 1920s, one
criminal group attempted to form an alliance among all of the groups involved
in boot legging. See Symposium, supra at 441, citing, D. Cressey, Theft of the Nation: The Structure and Operations of Organized
Crime in America (1969). A power
struggle erupted between Sicilian and non-Sicilian groups. This power struggle led to a violent,
private vendetta known as the Castellammarese War. See id. at 441.
4.
The Castellammarese War
lasted six months, from April 1931 until September 1931, in New York. During three days in September 1931, forty
Italian and Sicilian organized crime leaders were murdered. See
id. at 442. A peace treaty ended the Castellammarese War and created the
structure of the Italian/Sicilian organized crime organization in the United
States today. The resulting
confederation became known as La Cosa Nostra.
See id.
5.
Although public reports
of organized crime throughout the United States date as early as the 1920s, the
existence of a national organized crime structure first gained national media
attention in 1957. That year, a number
of individuals were arrested while attending a secret meeting in the small town
of Apalachin, New York. Sixty-two
organized crime leaders from across the nation attended what appeared to be a
national conference at the home of Joseph Barbara. Attendees included: Sam
Giancana of Chicago; Joseph Bonanno and Vito Genovese of New York City; Antonio
Magaddino of Buffalo, New York; Russell Bufalino of northeast Pennsylvania;
Santos Trafficante of Tampa, Florida; LaRocca Sr. and Gabriel “Kelly” Mannarino
(Kelly Mannarino) of Pittsburgh. See Symposium,
supra at 443, n. 21. Subsequent investigations identified them as
leaders of crime families across the country.
See FBI Organized Crime Report, 25
Years After Valachi (1988).
6.
The LCN consists of
groups of people organized into entities called families. The hierarchy of leadership in each LCN
family consists of the head of a family, the boss; his assistant, the
underboss; and, an advisor, the consigliere.
The boss, underboss, and consigliere oversee the activities of LCN
members and their associates. See United
States v. Pungitore, 910 F.2d 1084, 1097 (3rd Cir.), cert. denied, 500 U.S. 915 (1990).
7.
LCN members within the
family operate in small groups called “crews,” which are headed by men called
“capos.” See id.
8.
A “made” member is
inducted into an LCN family through an initiation ceremony that includes an
oath, specific rituals, and formalities.
See, e.g., In the Matter of Miceli,
IHO Order and Memorandum, 98-11D (May 27, 1999); Pungitore, 910 F.2d
1084. Members share in the
organization’s profits. See, e.g., Chicago District Council, 97-30T; Fallacara, 96-65D. “Made”
members are also known as “soldiers.” See Miceli, 98-11D. The fact that a member is “made” spreads
quickly in the organized crime community because being “made” entitles a member
to a certain amount of respect. See id.
9.
Mob “associates” work
for “made” members facilitating mob activities. “Associates” either run day-to-day illegal operations for the mob
or are in legitimate businesses under the influence and control of organized crime. See,
e.g., Chicago District Council, 97-30T; Fallacara, 96-65D.
10.
The LCN code of conduct
dictates that members follow their superiors’ orders without question; refuse
to give information or assistance to law enforcement; pay assessments imposed
by superiors; respect other members regardless of personal feelings; and,
refuse to information about the organization to outsiders. See
Pungitore, 910 F.2d at 1097.
11.
Part of the LCN criminal
conduct involves the infiltration and control of numerous business
organizations and labor unions. In
these ventures, “it employs illegitimate methods – monopolization, terrorism,
extortion, tax evasion – to drive out or control lawful ownership and
leadership and to exact illegal profits from the public.” President’s Commission on Law Enforcement
and Administration of Justice, Task Force
Report: Organized Crime (1967); Blakey
& Goldstock, “On the Waterfront”: RICO
and Labor Racketeering,” 17 Am. Crim. L. Rev. 341 (1980).
12.
The LCN uses its control
of labor unions to neutralize competitive bidding and to extort employers for
maintaining labor peace. “Sometimes
control arises from members of La Cosa Nostra who are also labor
officials. Control includes the ability
to direct the day-to-day affairs of a labor organization—such things as…who
runs for office and who does not, who gets elected to union office…and the use
of union power for corrupt purposes.”
President’s Commission on Organized Crime, Report to the President and
the Attorney General, The Edge: Organized
Crime, Business and the Labor Unions, President’s
Commission on Organized Crime, 98th Congress, 1st and 2d Sess. 208
(1983-84).
13.
The Racketeer Influenced
and Corrupt Organizations (RICO) provisions of the Organized Crime Control Act
of 1970 empower federal prosecutors to bring criminal prosecutions and civil
suits against organized crime syndicates.
See 18 U.S.C. § 1961 et seq.
14.
In enacting the 1970
RICO statute, Congress principally aimed to prevent organized crime from
infiltrating legitimate business. See United
States v. Turkette, 452 U.S. 576 (1981).
15.
Following the passage of
the RICO statute, the Department of Justice (DOJ) has embarked on a
concentrated effort to rid the labor movement of organized crime. The DOJ prosecutors have filed numerous RICO
and civil complaints against international and local labor unions.
16.
These suits resulted in
consent decrees that appointed independent monitors with the power to hear
disciplinary charges against union members for misconduct, including
associating with members of organized crime.
See United States v. Hotel Employees and Restaurant Employees International
Union (Agathos), (D.N.J.) Civ. No. 95-4596 (GEB) Memorandum Opinion (May 8,
1997).
17.
In 1995, LIUNA entered a
voluntary agreement with the DOJ, which required that LIUNA engage in self-policing
and internal reform outside of the
court system. This voluntary process
was designed “to ensure that all locals and other entities within LIUNA are rid
of any corrupting influence of any member of organized crime.” Agreement
Between Laborers’ International Union of North America and the Department of
Justice, (February 13, 1995).
18.
On January 18, 1995,
LIUNA adopted the EDP to effect reform.
The EDP prohibits all current and future LIUNA officers, agents,
representatives, employees, and members from engaging in “barred conduct.” The definition of barred conduct includes:
committing any act of racketeering; “knowingly associating” with members of an
organized crime family, such as the LCN; knowingly allowing an LCN member or
associate to influence a LIUNA officer;
and, interfering with or obstructing the efforts of the LIUNA Inspector
General, the GEB Attorney or the IHO. See EDP Section 1.
19.
By agreement, the DOJ
terminated direct oversight of LIUNA on January 18, 2000; however, LIUNA is
under an obligation to continue the reform effort. The DOJ monitors LIUNA’s progress. See Agreement Between
Laborers’ International Union of North America and the Department of Justice,
(January 18, 2000).
Structure of Organized Crime in Pittsburgh
20.
The Pittsburgh LCN
family members operate in designated areas in Western Pennsylvania. Prior to his death LaRocca Sr. operated in
the city of Pittsburgh; Kelly Mannarino, and later Thomas “Sonny” Ciancutti
(Sonny Ciancutti), controlled New Kensington; Joseph Sica, and later Louis
Raucci Sr. (Raucci Sr.), operated in Penn Hills suburbs; and Frank D. Amato
Jr., controlled the eastern suburbs such as Braddock and North Versailles. See GEB Exhibit (GEB Ex.) 92
(Pennsylvania Crime Commission, Organized
Crime in Pennsylvania: A Decade of
Change, 1990 Report (1990 PA Crime Report) at 113); Tr. 49.
21.
The Pittsburgh family
has fewer “made” members than most other LCN families. See
GEB Ex. 92 (1990 PA Crime Report at
117). The Pittsburgh family has not
“made” a new member since 1987. Tr.
58-61.
Pittsburgh
LCN Bosses
22.
LaRocca Sr. headed the
Pittsburgh LCN from 1957 until his death in 1984. Tr. 36. LaRocca Sr.
commanded a nationwide reputation. See GEB Ex. 90 (Pennsylvania Crime
Commission, 1985 Report (1985 PA Crime
Report) at 33). LaRocca Sr.
attended the 1957 Apalachin, New York Summit of top organized crime
figures. Tr. 38. LaRocca Sr. owned and operated the Car Wash
located at 100 Sandusky Street, Pittsburgh, Pennsylvania, where he frequently
met with LCN associates. Tr. 63. In 1974, the FBI successfully penetrated
LaRocca Sr.’s Car Wash operation using a confidential informant. Tr. 64-67.
23.
When LaRocca Sr. died in
1984, Michael Genovese (Genovese) became the Pittsburgh family boss. Tr. 38; see
also GEB Ex. 90 (1985 PA Crime Report
at 33). Prior to 1984, Genovese served
as a capo and controlled the numbers racket in the East Liberty section of
Pittsburgh. Genovese attended the
Apalachin Summit with LaRocca Sr. and Kelly Mannarino.[10] See
GEB Ex. 92 (1990 PA Crime Report at
118). The FBI reported that Genovese
often met with LCN members and associates at L.A. Motors, a used car lot in
Verona, Pennsylvania, where he was employed as a salesman. See
id.
Pittsburgh
LCN Underbosses
24.
An LCN underboss acts as
assistant to the boss of the crime family.
25.
Joseph “Jo-Jo” Pecora
(Jo-Jo Pecora) was underboss of the Pittsburgh LCN. At one time, Jo-Jo Pecora operated gambling enterprises in West
Virginia for the LaRocca family. See
GEB Ex. 89 (Pennsylvania Crime Commission, 1983
Report (1983 PA Crime Report) at 19).
In 1979, Jo-Jo Pecora was convicted of racketeering and sentenced to
five years in federal prison. See id.
26.
When Jo-Jo Pecora died
in 1987, Charles “Chuckie” Porter (Porter) became underboss. See
id.
Porter worked closely with LaRocca Sr. to develop sources in New York,
Chicago, and Florida. See GEB Ex. 92 (1990 PA Crime Report at 118).
As a result of Western Pennsylvania’s largest organized crime
prosecution, Porter and eight others were convicted of, inter alia, racketeering, narcotics and tax violations. See
GEB Exs. 92 (1990 PA Crime Report),
93 (Pennsylvania Crime Commission, 1991
Report (1991 PA Crime Report)). Porter was sentenced to prison for 28
years. See id.
27.
In 1999, Porter was
purportedly still the Pittsburgh LCN underboss, but had been in jail for in
nine years. In December 2000, the DOJ
successfully motioned for a 14-year reduction Porter’s sentence based on his
significant cooperation while he was incarcerated. These circumstances lead the IHO to question the reliability of
the FBI’s classification of Porter as underboss in 1999.[11]
Pittsburgh LCN
Consiglieres
28.
LCN consiglieres act as
advisors to the boss and underbosses of the crime family.
29.
Pasquale Macri Ferrucci
(Pat Ferrucci) controlled the video poker business in the Canton, Ohio
area. Pat Ferrucci met frequently with
Kelly Mannarino in New Kensington to discuss vending machine business between
Ohio and Pennsylvania. See GEB Ex. 92 (1990 PA Crime Report). In 1991, Pat Ferruccio was convicted on a
RICO charge, sentenced to a thirty-month imprisonment, and ordered to forfeit
$100,000.00. See GEB Ex. 93 (1991 PA Crime
Report).
30.
Joseph Sica (Sica) was
convicted of violation of the Hobbs Act in 1975. Sica, with a few exceptions, has been inactive in the Pittsburgh
LCN since the mid-1980s. See GEB Ex. 92 (1990 PA Crime Report). Sica
had been involved in gambling activities.
GEB Ex. 93 (1991 PA Crime Report). Sica is the father-in-law of deceased LCN
capo, Frank Rosa. See GEB Ex. 92 (1990 PA Crime
Report). Sica died in 1991. See
GEB Ex. 93 (1991 PA Crime Report).
31.
Charles Imburgia
(Imburgia), also known as “Charles Murgie,” has been a Pittsburgh LCN
consigliere since at least 1989. See GEB Ex. 92 (1990 PA Crime Report at 120).
Like Sica, he is not active in the day-to-day activities of the
Pittsburgh LCN, but is called in to mediate disputes. See id. His
nephew, Anthony Murgie, is an LCN associate who is known to have met with
Genovese at L.A. Motors. See id.
Pittsburgh LCN Capos
32.
Sonny Ciancutti operates
illegal gambling in New Kensington. See GEB Ex. 92 (1990 PA Crime Report at 119).
He took control of Kelly Mannarino’s New Kensington gambling operations
after his death.[12] See
Id.
33.
John Bazzano Jr.
(Bazzano Jr.) is the son of Western Pennsylvania’s former crime leader and
son-in law of Antonio Ripepi.[13] See
id.
Bazzano Jr. was released from federal prison early in 1981 after
serving a sentence for a 1975 conviction on chargers of running a large-scale
gambling operation. See GEB Ex. 92 (1990 PA Crime Report at 119). Upon his release, Bazzano Jr. was
elevated from soldier to capo, filling the vacancy created by Kelly Mannarino’s
death. See GEB Ex. 89 (1983 PA Crime
Report).
Pittsburgh LCN Soldiers
34.
A “made” member is a person
inducted into an LCN family through an initiation ceremony; made members are
also known as “soldiers.” Soldiers
share in the organization’s profits. See District
Council, 97-30T; Fallacara,
96-65D; Miceli, 98-11D.
35.
Raucci Sr. is said to
“sit on the left side” of Genovese. See GEB Ex. 92 (1990 PA Crime Report at 118).
Raucci Sr. frequently worked in concert with Porter furthering the
affairs of the Pittsburgh LCN. See id. In 1990, Raucci Sr. was convicted with
Porter on racketeering, narcotics, and tax violations. See
GEB Ex. 93 (1991 PA Crime Report). Raucci was sentenced to 27 years
incarceration. See id.
36.
Frank D. “Sonny” Amato
Jr. (Amato Jr.), whose father was the
Pittsburgh LCN boss until 1956, gained control of his father’s East Pittsburgh
illegal gambling operation. See GEB Ex. 92 (1990 PA Crime Report).
Kelly Mannarino was Amato Jr.’s brother-in-law. See
id.
37.
Wango Capizzi frequently
visited LaRocca Sr.'s Car Wash. See GEB Ex. 91 (1989 PA Crime Report). In
the 1980s, he arranged gambling junkets to Las Vegas for the Bufalino crime
family, and ran a Las Vegas credit fraud with “Jo-Jo” Pecora. See
id.
Pittsburgh
LCN Associates
38.
Mob “associates” work
for “made” members facilitating mob activities. Associates either run day-to-day illegal operations for the mob
or are in legitimate businesses under the influence and control of organized
crime. See District Council, 97-30T; Fallacara, 96-65D.
39.
Henry A. “Zebo” Zottola
(Zottola) was closely associated with “Jo-Jo” Pecora and involved in loan-sharking,
gambling, and financing narcotics transactions. See GEB Exs. 92
(Excerpts from: Organized Crime in Pennsylvania: A Decade of Change”, 1990
Report (Pennsylvania Crime Commission), 105 (PA Crime Commission March 1989 Pittsburgh LCN Family Chart); Tr.
53. After Jo-Jo Pecora’s death, Zotolla
associated with Porter. See GEB Ex. 92 (1990 PA Crime Report).
40.
Lenine “Lennie” Strollo
(Lennie Strollo) is associated with Pat Ferruccio. See GEB Ex. 92 (1990 PA Crime Report at 122). Lennie Strollo pled guilty to RICO charges
in 1990; he was sentenced to 14 months incarceration and fined $20,000.00. See GEB
Ex. 92 (1990 PA Crime Report at 122).
Allegations of Local 1058 Members’ Ties to Organized
Crime
(Complaint && 5-13)
41.
Charge I
Correcting
Corruption and Eradicating the Influence of Organized Crime.
In light of
the evidence developed by LIUNA’s Inspector General’s office and the facts set
forth in paragraphs 1-21 and incorporated herein, the GEB Attorney has formed
an opinion that it is necessary to place Local 1058 under trusteeship for the
purpose of correcting corruption and eradicating the corrupt influence of
organized crime. Because of longstanding influential relationships between
members and associates of organized crime and the controlling members of the
Executive Board; the complete failure of any of the officers or Executive Board
members to take any action either to eradicate or to investigate the influence
of organized crime within the union; and the absence of a single contested,
democratic election in more than 30 years, a trusteeship is necessary to remove
the influence of organized crime from Local 1058.
42.
The GEB Attorney’s
Complaint alleges that the former and current members of Local 1058’s Executive
Board have longstanding associations with members of the Pittsburgh LCN. In support of these allegations, the GEB
Attorney presented evidence spanning more than 30 years and garnered from a
variety of sources. The evidence
pertains to the activities of the following named Local 1058 officials.
Joseph
LaQuatra
43.
Joe LaQuatra was the
President of Local 1058 for 16 years, from 1968 to 1984. Thereafter, he served as Business Manager
from 1985 until May 2000 when he retired.
See Def. Ex. 6.
44.
Between December 1974
and August 1976, Joe LaQuatra visited LaRocca Sr. at his Car Wash 38
times. During those visits, Joe
LaQuatra never purchased gas nor had his car washed. On many occasions, Joe LaQuatra met with LaRocca Sr., John
LaRocca Jr. (LaRocca Jr.), Dennis Martire, Teddy Cozza,[14]
and Wango Capizzi. See GEB Ex. 108 (Allegheny Car Wash Source/Surveillance Log).[15]
45.
Joe LaQuatra spent two
hours at the Car Wash on June 9, 1980, without purchasing gas or having his car
washed. See GEB Ex. 47 (Surveillance
Log (FBI), Allegheny Car Wash, 6/9/80).
On September 12, 1984, Joe LaQuatra met LaRocca Sr. and Bazzano Jr. at
the Car Wash; again, Joe LaQuatra did not purchase gas or have his car washed. See GEB Exs. 38M, N, O, and VV.
46.
In 1979, Joe LaQuatra
attended the funeral of Louis Ciancutti (brother of Sonny Ciancutti).[16] See
GEB Exs. 45A, C.
47.
In 1980, Joe LaQuatra
attended the funerals of Kelly Mannarino and Anthony LaRocca (LaRocca Sr.’s
brother). See GEB Exs. 33N and O,
(FBI Surveillance Log; GEB Ex. 47 (FBI Surveillance Log, Allegheny Car Wash,
6/9/80).
48.
In 1984, Joe LaQuatra
attended the funeral of LaRocca Sr. See
GEB Ex. 39D (Photographs: John Larocca
Funeral, 12/6/84).
49.
Joe LaQuatra attended
the funeral of Louis Raucci Jr. (Raucci Jr.) on November 21, 1985. Joe Rosa,
Zottola, Genovese, Porter, Joe Scoleri, Michael Rosenfeld and Dennis Martire
were also present. See GEB Exs. 40A
and B (Photographs: Lou Raucci, Jr.
Funeral, 11/21/85); and N (FBI Surveillance Log).
50.
In 1988, FBI
surveillance observed Joe LaQuatra attending a meeting held at L.A. Motors in
Verona, Pennsylvania with Genovese, Raucci Sr., Porter, Zottola, Bazzano Jr.,
and Charles Pecora. See GEB Ex. 41A (Videotape: L.A. Motors 12/24/88).
51.
During the 1990s, Joe
LaQuatra was observed playing golf at Rose Ridge with Dennis Martire, Wango
Capizzi, and Zottola. T. 176-179. The FBI observed Joe LaQuatra and Philip
Ameris leaving a restaurant with Sonny Ciancutti in 1997. See
GEB Exs. 43A-K (Photographs: Joseph N.
Pecora Funeral, 3/7/87); 43L (FBI Surveillance Log). In 1998, the FBI observed Joe LaQuatra and Mark Machi, then an
Executive Board member, briefly meeting with Joseph Tobasco (Tobasco) near the
Rosa Villa Restaurant.[17] See
GEB Ex. 110 (August 1998 FBI Surveillance Log, Rosa Villa); GEB Exs. 111-122
(Photographs: 1998 FBI surveillance
photos of individuals standing in front of Rosa Villa Restaurant (Joe Laquatra,
Tabasco, Mark Machi, unknown)); Tr. 822-823.
The FBI observed Joe LaQuatra meeting with Tobasco briefly near the Rosa
Villa restaurant again in 1999.[18] See
GEB Ex. 123 (1999 FBI Surveillance Log of Local 1058 Union Hall on 8th Street
(Laquatra, Ameris, Machi); Rosa Villa Restaurant (Joe Laquatra, Tabasco)).
Thomas
Pecora
52.
Tom Pecora served as
Local 1058’s Business Manager for sixteen (16) years, from 1968 until
1984. See Def. Ex. 6. Tom Pecora
replaced Dante Martire, Dennis Martire’s father, as Business Manager. Tr. 128.
Tom Pecora retired from his position as Local 1058’s Business Manager in
1984. See Def. Ex. 6.
53.
Tom Pecora made 13
visits to LaRocca Sr.’s Car Wash in the 1970s.
See GEB Ex. 108 (Allegheny Car
Wash Source/Surveillance Log).
54.
Agent Greenbank
testified that Source 13 reported that LaRocca Sr. directed Tom Pecora to make
LaRocca Jr. a business agent for Local 1058 in 1976. Tr. 130. The IHO credits
this conversation because LaRocca Jr., became a business agent for Local 1058
shortly thereafter.
55.
Tom Pecora visited
LaRocca Sr.’s Car Wash on June 8, 1981 and on September 12, 1984. See
GEB Exs. 34M, O, P (Photographs:
Allegheny Car Wash, 6/8/81); JJ (Report of Investigative Activity
(Pennsylvania Crime Commission); 38P, Q, R, S, T, VV (Photographs: Allegheny Car Wash, 9/10-9/12/84).
56.
Source 13 reported that,
sometime in the period between 1968 and 1984, Tom Pecora directed Dennis
Martire to drive him to Jo-Jo Pecora’s (no relation) West Virginia home for a
private meeting.[19] Jo-Jo Pecora was a “made” member of the
Pittsburgh Family. See GEB Ex. 92 (1990 PA Crime
Report). Dennis Martire admitted
that he drove Tom Pecora to Jo-Jo Pecora’s West Virginia home and waited at a
nearby lake until they completed a private meeting. Tr. 1683-1684.
57.
Source 13 also reported
that LaRocca Sr. told Tom Pecora to switch Local 1058’s insurance carrier to
give the union’s business to LaRocca Sr.’s friend Garland. Tr. 129.
According to Source 13, Tom Pecora motioned the Executive Board shortly
thereafter and the policyholder was changed.
Id. The GEB Attorney offered no corroborating evidence, such as
board minutes, in support of Source 13’s testimony. As noted supra, this
testimony contradicts the testimony given by Garland. The GEB Attorney has not proven this allegation by a
preponderance of the evidence.
58.
In 1980, Tom Pecora
attended the funeral of Kelly Mannarino.
See GEB Ex. 32K
(Photographs: Gabriel “Kelly” Mannarino
Funeral, 7/14/80).
59.
In 1984, Tom Pecora
attended LaRocca Sr.’s funeral. See GEB Ex. 39I (Report of Investigative
Activity (Pennsylvania Crime Commission), John S. Larocca Viewing and Funeral).
60.
Tom Pecora attended the
wedding of Porter’s daughter on July 26, 1986.
See GEB Ex. 50 (FBI
Surveillance Log), Charles Potter Family Wedding, 7/26/86).
61.
In February 1985, Tom
Pecora attended a meeting of organized crime members at Sonken’s Gold Coast
Restaurant in Florida; Paul “No Legs” Hankish (Hankish)[20]
and Amato Jr. were also present. See GEB Ex. 49 (Report of Investigative
Activity (Pennsylvania Crime Commission) 2/14/85).
Louis
Dennis Martire
62.
Dennis Martire served as
Local 1058’s President from May 1985 until May 2000, when he succeeded Joe
LaQuatra as Business Manager. See Def. Ex. 6. Prior to those positions, Dennis Martire
served as Vice President from November 1984 until April 1985, and was an
Executive Board member from April 1977 until November 1985. See
Def. Ex. 6; Tr. 1569.
63.
Dennis Martire visited
the Car Wash on 56 occasions between November 1974 and November 1976. Dennis Martire did not purchase gas or have
his car washed. See GEB Ex. 108.
64.
The FBI observed Dennis
Martire at LaRocca Sr.’s Car Wash on April 11, 1980. See GEB Ex. 46 (FBI
Surveillance Log, Allegheny Car Wash, 6/9/80).
Dennis Martire visited the Car Wash on September 10, 1984. During that visit, FBI surveillance viewed
Dennis Martire greeting LaRocca Sr. with an embrace and kiss on the cheek. Agent Greenbank testified that, through this
behavior, Dennis Martire was showing his respect to LaRocca Sr. Agent Greenbank stated that Dennis Martire’s
behavior signified a very close association with LaRocca Sr.; LaRocca Sr. was
someone Dennis Martire knew well. GEB
Ex. 38C, D (Photographs: Allegheny Car
Wash, 9/10-9/12/84); Tr. 161-62, 332.
65.
Dennis Martire attended
the funeral of Raucci Jr. on November 25, 1985. See GEB Ex. 40A, B
(Photographs: Lou Raucci, Jr. Funeral, 11/21/85). Dennis Martire testified that Local 1058’s Business Manager, Joe
LaQuatra, directed him to attend. Tr. 1601.
Joe Rosa and Zottola were also present.
See GEB Ex. 40A-M
(Photographs: Allegheny Car Wash,
11/21/85); Tr. 1702-1704.
66.
In the summer of 1995,
Source 9 allegedly observed Dennis Martire and other Local 1058 officers
playing golf with Wango Capizzi and Zottola at the Rose Ridge Golf Club in
Gibsonia, Pennsylvania. Tr.
172-174. Although the IHO rejected
Source 9’s information supra as
uncorroborated, Denise Martire and Judge Lucchino both acknowledge that Wango
Capizzi may have completed their foursome at some point. Tr. 1441-1442, 1604. However, the IHO finds that evidence of an
impromptu golf outing, if it occurred, is not probative in the current matter.
Gerald
Pecora Jr.
67.
Gerald Pecora is the
current President of Local 1058. Tr.
1039. Before becoming President in May
2000, Gerald Pecora was Local 1058’s Recording Secretary for 25 years. Tr. 1072.
68.
In addition to these
positions, Gerald Pecora has held positions as a public-sector business agent
for 29 years; and as trustee to both Laborers’ Combined Funds for 25
years. Tr. 1043, 1055. Former Business Manager Tom Pecora
recommended Gerald Pecora for those positions.[21] Tr. 1049.
69.
Gerald Pecora testified
that his father worked for LaRocca Sr. at the North Star Block Company for
approximately ten years, and that he would accompany his father to LaRocca
Sr.’s house at Christmas each year. Tr.
1068-1070. Gerald Pecora testified that
Joe LaQuatra and Dennis Martire were present on these occasions. Tr. 1072.
70.
Gerald Pecora made ten
visits to the Car Wash between 1974 and 1976. See GEB Ex. 108 (Allegheny Car Wash Source/Surveillance Log).
John S. LaRocca Jr.
71.
LaRocca Jr. is the son
of Pittsburgh LCN boss, LaRocca Sr.
Neither the FBI nor the PA Crime Commission have ever listed LaRocca Jr.
as having any role in the Pittsburgh LCN.
72.
While serving as a Local
1058 business agent, LaRocca Jr. was involved in a video arcade business with
Raucci Jr. and Zottola. Tr. 710,
1346-1350. LaRocca Jr. began the
business at his father’s behest, which closed within eight months of opening.
Tr. 1346-1350.
Michael
LaQuatra
73.
Michael LaQuatra is the
son of Joe LaQuatra.
74.
Michael LaQuatra has
served on Local 1058’s Executive Board since his father appointed him in
January 1999. See Deposition of Michael LaQuatra at 14-15. The practice of
appointing family members to positions within the union is commonplace
throughout all levels of LIUNA.
Standing alone, nepotism is not evidence of an act of barred conduct.
75.
The GEB Attorney
included Michael LaQuatra on the list of Local 1058 officials who “knowingly
associated” with the Pittsburgh LCN, but offered no evidence in support of the
averment.
Philip
Ameris
76.
Philip Ameris (Phil
Ameris) served on Local 1058’s Executive Board from 1996 until 1998; and has
been Recording Secretary since 2000. See Def. Ex 6. The GEB Attorney emphasizes that Phil Ameris was appointed to the
Executive Board “less than two months after he was eligible for office.” See
GEB Complaint & 11.
77.
In 1997, the FBI
observed Phil Ameris and Joe LaQuatra leaving a restaurant with Sonny
Ciancutti. See GEB Exs. 43A-K (Photographs:
Alexander’s Pasta Express, 10/9/97); 43L (FBI Surveillance Log); GEB Ex.
94 at 16, 59-60 (Deposition Transcript:
Philip Ameris, 6/11/99).
78.
The GEB Attorney
included Phil Ameris in the list of Local 1058 officials who “knowingly
associated” with the Pittsburgh LCN, but offered no evidence beyond the 1997
sighting in support of this averment.
Joseph
Frydrych
79.
Joseph Frydrych
(Frydrych) has been a member of Local 1058 since 1970. Tr. 954-955. In 1982, the Laborers’ District Council hired Frydrych as a staff
representative. Tr. 961. In 1986, Joe LaQuatra, also the District
Council Business Manager, appointed Frydrych as Auditor of Local 1058. Tr. 967.
In 1989, Frydrych was appointed as business agent of Local 1058. Tr. 969.
In 1994, Joe LaQuatra appointed Frydrych Local 1058’s
Secretary/Treasurer, the position he currently holds. Tr. 994.
80.
Frydrych testified that
Joe LaQuatra appointed him as an auditor while he was serving as a paid field
representative. Tr. 971. Later, Joe LaQuatra asked Frydrych to resign
his position as auditor, a $75.00 a month job, to make room for someone
else. Id.
81.
The GEB Attorney included
Frydrych in the list of Local 1058 officials who “knowingly associated” with
the Pittsburgh LCN, but offered no evidence in support of this averment.
Mark
Machi
82.
Mark Machi (Machi) has
worked as a Laborers’ District Council of Western Pennsylvania staff
representative since 1990. See
Deposition of Mark Machi (Machi Dep.) at 30.
Joe LaQuatra appointed Machi to Local 1058’s Executive Board in March
1995. See Def. Ex. 6.
83.
Machi was convicted of
federal narcotics distribution charges in 1976. Machi was sentenced to two years imprisonment with five years of
parole. See GEB Ex. 106(A) (Charging documents for Mark Machi, Grand Jury
Charge). In 1980, Machi pled guilty to
conspiracy to steal money from an armored car.
See GEB Ex. 106(B) (Charging
documents for Mark Machi, Grand Jury Charge).
Under the terms of his plea agreement, Machi received a four-year prison
sentence. Id. Machi was released
after serving three years. See Machi Dep. at 16.
84.
The GEB Attorney
contends that Machi’s appointment violated 29 U.S.C. § 504, which prohibits
certain persons from holding union office.
See Complaint & 11, n. 2.
Specifically, the prohibition states that a person may not hold office
for thirteen years after conviction of an enumerated felony, or after the end
of imprisonment, whichever is later. See 29 U.S.C. ' 504. Machi
was appointed to the Executive Board in 1995.
See Def. Ex. 6. The IHO notes that Joe LaQuatra appointed
Machi to the Executive Board before he was eligible, but sought the advice of
Local 1058’s attorney before formally installing Machi. See
Machi Dep. at 42. It appears that there
was a question about when Machi’s ' 504
prohibition period ended. Id. In
any event, Machi’s service after 1996 was not in violation of the statute. Further, Machi resigned in 1999. See
Def. Ex. 6. The GEB Attorney contends
that Machi’s appointment indicated Joe LaQuatra’s allegiance to the criminal
element. Local 1058 attorneys countered
that Machi’s appointment indicated Joe LaQuatra’s commitment to rehabilitating
Machi to the legitimate workforce. The
IHO does not deem it necessary to make a qualitative judgment on the point, as
it does not affect the major issues in this matter.
Summary of Charge 1 Findings
85.
Based upon the
foregoing, the IHO finds that Local 1058 officers as a group had substantial
contacts with Pittsburgh crime boss LaRocca Sr. at his Car Wash from the early
1970s until 1984. In the early 1970s,
Tom Pecora drove to West Virginia to meet with Pittsburgh LCN underboss “Jo-Jo”
Pecora. Joe LaQuatra met with the
current Pittsburgh LCN boss Michael Genovese in 1987. Since 1990, there have been three isolated contacts observed.
86.
Based upon the frequency
and unusual context of the contacts, the IHO finds that the Car Wash meetings
in the 1970s and 1980s were not fleeting or casual. As there were no demonstrated union or business reasons for the
meetings, their nature and frequency indicates that the officers were
responding to LaRocca Sr.’s interest in the operation of the union. Similarly, Joe LaQuatra’s meeting with
Genovese and Tom Pecora’s meeting with “Jo-Jo” Pecora indicate knowledgeable
association.
87.
During the 1970s and
1980s, Local 1058 officers as a group had an association with LCN members; the
officers knew or should have known that the persons they were associating with
were LCN members; the group’s associations were not fleeting or casual; and,
these LCN associations directly or indirectly affected Local 1058, as the IHO
construed that term in Fallacara. See
Fallacara, 96-65D.
88.
Since approximately
1987, there is little reported evidence of any association. There are three isolated instances in the
1990s, which add little weight to the allegation that the associations of 14 or
more years ago continue.
Allegations of Failure of Democratic Process in Local 1058
(Complaint && 14-21)
89.
Charge II of the GEB
Attorney’s Complaint against Local 1058 reads as follows:
Charge II
Restoring
Democratic Practices. In light of the
evidence developed by LIUNA’s Inspector General’s Office and the facts set
forth above in paragraphs 1-21 and incorporated herein, the GEB Attorney has
formed an opinion that it is necessary to place Local 1058 under trusteeship
for the purpose of restoring democratic practices. Because there has not been a single contested democratic election
in Local 1058 for more than 30 years; every officer position or Executive Board
position has been filled by appointment by the Business Manager for more than
30 years; and control of the union has remained in the hands of a few individuals
with strong ties to organized crime, trusteeship is necessary to restore
democratic practices.
90.
The minutes of regular
monthly meetings, special nomination meetings, and Executive Board meetings
indicate that no opposition candidates or slates have run against the
incumbents for over 30 years. See GEB Exs. 1-30. The records of Local 1058 establish that,
from 1968 until the present, no single contested election of officers was
held. Id. During this period, no
opposition candidate has ever been nominated to run against an incumbent
officer. See GEB Exs. 1-30. No
vacancy has ever occurred at the end of a candidate’s term; all vacancies occur
by resignation or retirement before a scheduled election[22],
and the vacancies are then filled by a vote of the Executive Board. The Executive Board vote is always
unanimous. Id.
91.
Clearly, the Executive
Board has the authority under the Uniform Local Union Constitution to fill
vacancies as they occur. See Uniform Local Union Constitution,
Article V, Section 3(m). Here, however,
for over 30 years, Local 1058's officers have filled vacancies shortly
preceding each scheduled election. See Def. Ex. 6.
92.
Local 1058 witnesses
testified that dissenters have always had the opportunity to offer opposition
candidates, but the spirit of unity within Local 1058 is so great that all of
the Executive Board members agree with the Business Manager’s choices to fill
the vacancies that occur. See, e.g., Tr. 1483.
93.
In November 1984, Tom
Pecora announced his plans to retire in January 1985, one year before
elections. Tr. 1589. Tom Pecora appointed Joe LaQuatra to his
position as Business Manager; appointed LaRocca Jr. to Joe LaQuatra’s position
as President; and, appointed Dennis Martire Vice-President to replace LaRocca
Jr. Id. In April of 1985, Dennis Martire and LaRocca
Jr. switched positions. Tr. 1660. In May 2000, Joe LaQuatra retired. Tr. 1661.
He recommended Dennis Martire take his place as Business Manager and
Gerald Pecora succeeded Dennis Martire as President. Id.
94.
Professor Summers said
that, in his experience, a union may experience a five-year period of
uncontested elections, but a 30-year period of uncontested elections is
unusual. Tr. 511. He explained that certain factors must be at
work to create the environment where a union goes through a 30-year period of
uncontested elections. Id. These
factors include, inter
alia, members fearing
“to
raise their heads because of the hiring hall, they fear they won’t get jobs out
of the hiring hall;” fearing their grievances will not be addressed; or giving
up hope. Tr. 511. Professor Summers explained that the
validity of the members’ fears is not an issue. Id. According to Professor Summers, once union
members become aware that organized crime plays a role in their union, the
members perceive an element of danger and this induces their silence. Tr. 513.
95.
The IHO takes judicial
notice that LIUNA has never placed any local union into trusteeship solely
based on a record of uncontested elections.
Allegations of Failure to Acknowledge Corruption
96.
Charge III of the GEB
Attorney’s Complaint against Local 1058 reads as follows:
Charge III
Carrying Out
the Legitimate Objects of LIUNA and its Affiliates. In light of the evidence developed by LIUNA’s Inspector General’s
office and the facts set forth above in paragraphs 1-21 and incorporated
herein, the GEB Attorney has formed an opinion that it is necessary to place
Local 1058 under trusteeship for the purpose of carrying out the legitimate
objects of LIUNA and its affiliates as expressed in the LIUNA International
Constitution, the Ethical Practices Code and the Ethics and Disciplinary
Procedure. Due to the inability or
unwillingness of the Executive Board to exercise independent judgment from the
Business Manager and the complete failure of the Executive Board to acknowledge
organized crime corruption within Local 1058 or to take any steps whatsoever to
investigate and eradicate the influence of organized crime over the officers of
Local 1058 in dereliction of its fiduciary obligation and duty of loyalty to
the members, a trusteeship is necessary to enable Local 1058 to carry out the
legitimate, constitutional objectives of a LIUNA affiliate.
97.
The GEB Attorney
contends that the Executive Board failed to acknowledge organized crime
corruption within Local 1058, or to take investigatory steps eradicate the
influence of organized crime over the officers of Local 1058. See
Complaint && 3, 4. In
support of this allegation, the GEB Attorney submitted evidence of numerous
local and national newspaper articles. See GEB Ex. 60-87. Five of the Pittsburgh newspaper articles
were published between 1984 and 1989; they recount LaRocca Sr.’s death and his
LCN position. See GEB Ex. 79-83. The bulk
of the newspaper evidence, some 29 articles, relate to either the 1990 RICO
case involving Porter and Raucci Sr., or the internal union disciplinary action
against Teddy Cozza. See GEB Exs. 60-78, 83-87. According to the GEB Attorney, the extensive
media coverage surrounding the RICO trial and Teddy Cozza’s union expulsion
provided Local 1058 officers with notice of the Pittsburgh LCN’s close
association with area unions. See Complaint && 4, 5.
98.
The IHO is unclear
whether the GEB Attorney is arguing that the officers of Local 1058 had an
affirmative duty to investigate the past behavior of its officers. Usually, the duty to investigate arises when
media coverage alerts a local union to the possibility of current impropriety. In this case, media coverage of the RICO
case and Teddy Cozza’s union expulsion does not establish, by a preponderance
of the evidence, that Local 1058 officers failed to acknowledge or investigate
evidence of current corruption in their own union. By the time the first article introduced into evidence was
published, LaRocca Sr. was dead. The
bulk of the newspaper articles were published at least six years after LaRocca
Sr.’s death. Within that timeframe,
there is no record evidence of any material contacts between Local 1058
officers and organized crime.
99.
Following the passage of
the EDP in 1995, Local 1058 instituted a public policy of avoiding contacts
with any LCN figures. Tr. 1608. Dennis Martire, although related to former
teamster official Teddy Cozza, did not attend his funeral because of the EDP
prohibitions against associating with LCN figures.[23] Id.
100.
The GEB Attorney’s
post-hearing brief did not actively argue Charge III.
101.
Based upon the record,
the IHO concludes that the GEB Attorney has not proven Charge III as grounds
for imposing a trusteeship.
DISCUSSION
The
IHO must determine whether the evidence and testimony presented justifies the
imposition of a trusteeship over Local 1058 in 2001. This determination must consider four factors: (1) Local 1058 officers’ past associations
with the Pittsburgh LCN; (2) more than 30 years history of uncontested
elections and mid-term vacancies in Local 1058; (3) the contemporary presence
of the same people who formerly associated with the Pittsburgh LCN in all the
key Local 1058 elected officers’ positions; and, (4) the absence of any
evidence of malfeasance in the daily operations of Local 1058’s affairs.
Evidence of Officers’ Past LCN
Association
FBI surveillance and confidential
informant information substantiate that beginning in 1974, as a group, present
and past officers of Local 1058 associated with various Pittsburgh LCN members,
including LCN boss LaRocca Sr. and underboss Jo-Jo Pecora. Substantial evidence of the officers’ varied
associations with the Pittsburgh LCN continued until 1984, the year LaRocca Sr.
died. After 1984, the evidence of
association is isolated and sporadic.
Evidence from 1974 until 1984
substantially proves that Tom Pecora, Joe LaQuatra, Dennis Martire and Gerald
Pecora regularly met with LaRocca Sr., the Pittsburgh LCN boss, at his Car
Wash. These Local 1058 officers did not
have any union or business reasons for the meetings, yet they showed up
regularly. During these visits, the
officers did not have their cars washed or gassed. The IHO regards the Car Wash meetings as evidence of LaRocca
Sr.’s influence over Local 1058 affairs during that period.
Additional evidence from the 1970s
proves that Tom Pecora met with LCN underboss, Jo-Jo Pecora, at his home in
West Virginia. Dennis Martire, current
Business Manager of Local 1058, testified that he drove Tom Pecora to this
meeting and fished at a nearby lake while the two men talked. At that time, Dennis Martire, was on Local
1058’s Executive Board and testified that he worked for Tom Pecora and drove to
West Virginia in that capacity.
In December 1988, Joe LaQuatra, then
Local 1058’s Business Manager, attended a 47 minute meeting in an office at
L.A. Motors in Verona, Pennsylvania.
FBI surveillance identified this as the meeting spot of Genovese,
LaRocca’s replacement as the head of the Pittsburgh LCN. Agent Greenbank testified that Genovese,
Porter, Charles Pecora, Tom Pecora, Raucci Jr., Zottola, and Bazzano Jr. were
all observed at this meeting. Joe
LaQuatra embraced all the individuals before leaving.
Following these meetings, there is no
reported evidence of any significant contacts between Local 1058 officers and
LCN members. Although contending that LCN association continues, the GEB
Attorney’s post-1990 evidence consists of only three very brief sightings outside
a restaurant. In October 1997, the FBI
observed Joe LaQuatra, Phil Ameris, and Sonny Ciancutti exiting Alexander’s
Restaurant. See GEB Ex. 43A-L. In 1998,
the FBI observed Joe LaQuatra and Machi, then an Executive Board member,
briefly meeting with Tobasco near the Rosa Villa restaurant. See
GEB Ex. 110-122; Tr. 822-823. The FBI
observed LaQuatra meeting with Tobasco briefly near the Rosa Villa restaurant
again in 1999. See GEB Ex. 123.
Local 1058’s History of Uncontested
Elections
Throughout the time the aforementioned
meetings occurred, Local 1058 never held a contested election. Local 1058’s pattern of uncontested
elections continues up until the present, a period of more than 30 years. The GEB Attorney argues that evidence of
uncontested elections establishes a lack of democratic practices, one of the
statutorily recognized grounds for imposing a trusteeship.
Based upon experience presiding over
LIUNA trusteeship hearings, the IHO is aware that the GEB Attorney has never
brought a trusteeship complaint based solely on a lack of contested
elections. A history of uncontested
elections standing alone does not establish undemocratic practices. See In
the Matter of Local 2, IHO Order and Memorandum, 99-25T (July 29,
1999). However, the IHO has previously
noted that, when demonstrated that the local union is influenced by organized
crime, a series of uncontested elections is an indication of a breakdown of
democratic procedures within a local union.
Id. The presence of the LCN influence may be the reason for the
uncontested elections.
Associating Officers’ Leadership
Positions
Since Local 1058 officers’
association with the LCN began in the early 1970s, only four individuals: Tom Pecora, Joe LaQuatra, Dennis Martire,
and Gerald Pecora; have ever held office either as Business Manager or
President.[24] Tom Pecora held the Business Manager
position for 17 years before retiring in 1985, a year before elections. See
Def. Ex. 6. Tom Pecora appointed Joe
LaQuatra, President at the time, as Business Manager. Id. Joe LaQuatra served as Business Manager
for 14 years, retired a year before elections, and appointed President Dennis
Martire as Business Manager in 2000. Id. With
the exception of three months in 1985, Dennis Martire had held the position of
President for 14 years. Id. Joe
LaQuatra also appointed Gerald Pecora, who had been Recording Secretary since
1975, to fill Dennis Martire’s vacant Presidency. Id.
Despite the lack of any
recent evidence of LCN contact, LIUNA cannot ignore the troublesome fact that
at least four key Local 1058 officers regularly met with the late Pittsburgh
LCN boss in the late 1970s and early 1980s.
Joe LaQuatra and Tom Pecora met with high-ranking LCN figures on two other
occasions in the 1980s. None of the meetings
was chance or fleeting; they remain
unexplained. Those same officers have
succeeded each other in the leadership of Local 1058 until the present.
Local 1058’s Business Practices
The attorneys for Local 1058 offered an
impressive array of credible witnesses, including attorneys, business leaders,
and contractors, who verified both the business acumen and integrity of Local
1058’s officers. There is substantial
evidence that all of these witnesses respect Local 1058 in their professional
dealings with the union. The GEB
Attorney did not offer any evidence of improper activity at Local 1058. Most strikingly, the record is devoid of any
evidence of financial impropriety or no show jobs, which traditionally evidence
organized crime influence. Several
Local 1058 members testified that the union provides substantial service to its
members.
Analysis
The IHO must view the evidence from the
perspective of LIUNA’s reform effort.
In 1995, LIUNA entered a voluntary consent agreement with the DOJ to rid
itself of LCN influence. Although
released from formal DOJ oversight in 2000, LIUNA remains bound in good faith
to adhere to the agreement’s goals. The
agreement requires LIUNA to pursue all credible reports of member association
with the LCN or LCN union activity. In
this case, the GEB Attorney’s evidence suggests long-standing, substantial
association between past and present Local 1058 officers and the Pittsburgh LCN
with a record of more than 30 years of uncontested elections. The union’s attorneys counter with evidence
suggesting that any ties between Local 1058 officers and LCN members ended long
ago; that the alleged ties were familial or community based; that the majority
of the alleged associates are dead or incarcerated; that Local 1058 has an
impeccable business record; and that the union members are very satisfied with
their leadership.
Despite
the unique favorable evidence regarding Local 1058, the IHO cannot ignore the
evidence of the past LCN association of the current officers coupled with more
than 30 years of uncontested elections. Organized crime influence may continue
long after the association ceases to be public. Due to the insidious nature of organized crime, once the LCN
infiltrates a union it does not usually disappear on its own. See
Chicago District Council,
97-30T. The mere absence of traditional
organized crime contacts does not overcome the lingering perception of its
influence among the union membership.
Despite a full consideration of Local 1058’s evidence of good performance
and a lack of impropriety, there exists a bona fide concern that LCN influence
or a perception of LCN influence remains today. This concern is justified by the union officers’ past LCN
association, the pervasive nature of the LCN, and over 30 years of uncontested
elections.
The IHO concludes that the GEB Attorney
has proven the need for some type of supervision over Local 1058’s
affairs. However, based upon this
record, a trusteeship removing all Local 1058’s officers and assigning a trustee
would be too intrusive a measure.[25] Chief Judge Louis Bechtle’s opinion in United States v. Local 30 proves
instructive in this matter. See United
States v. Local 30 United Slate, Tile
and Composition Roofers (Roofers
Union), 686 F. Supp. 1139 (E.D. Pa. 1988); aff’d., 871 F.2d 401 (3rd Cir. 1989). In that case, the DOJ brought a RICO suit to place Roofers’ Local
Union 30 (Local 30) into trusteeship. See id. The government’s proof included
a long history of corruption and violence in Local 30; many officers and
members were jailed. See id.
In fashioning a remedy for Local 30, Judge Bechtle evaluated the purpose
of the RICO statute:
The House Judiciary Committee’s final report states as
follows:
[Section 1964(a)] contains broad provisions to allow
for the reform of corrupted organizations.
Although certain remedies are set out, the list is not meant to be
exhaustive, and the only limit on remedies is that they accomplish the aim set
out of removing the corrupting influence and make due provisions for the rights
of innocent persons. (citations
omitted.) RICO is to be read broadly.
This is the lesson not only of Congress’ self-consciously expansive
language and overall approach . . . but also of its express admonition that
RICO is to be liberally construed to effectuate its remedial purpose . . .
(citations omitted).
Roofers Union, 686 F. Supp. 1139, 1164.
Judge Bechtle decided that
the union could succeed with a mechanism in place short of a trusteeship, which
would allow both a degree of self-governance and development of union
democracy. See id. Judge Bechtle
appointed a court liaison officer with the power to monitor all aspects of the
local’s activities, including the power to override officers’ actions violating
the LMRDA or union constitution. See id.
Judge Bechtle also provided for supervised elections. See id. The EDP has adopted the remedies of the RICO
statute described by Judge Bechtle. The
EDP allows LIUNA to use the RICO remedies in a flexible manner, and the
International Constitution provides procedures for implementing these remedies.
The IHO holds that a supervision of
Local 1058 is necessary as provided by Article IX, Section 7 of the
International Constitution. The grounds
for a supervision must be established by the same quantum of proof necessary to
establish a trusteeship, a preponderance of the evidence. The GEB Attorney has proven the need for
supervision by a preponderance of the evidence.
The IHO requests that, under
the peculiar facts of this case, the General President take the following steps
to accomplish the goals of Local 1058’s supervision. An experienced union person should serve as supervisor, aided by
knowledgeable, local legal counsel hired specifically for the supervisor. The supervisor should determine: whether
past LCN association currently affects the union; whether LCN influence in Local 1058 continues; and the reasons
for Local 1058’s uncontested elections.
These determinations may be based on the supervisor’s examination of
Local 1058’s operations, its relationships with contractors, its membership
meetings, and confidential interviews of its members on and off the job.
The supervisor may override any decision
made by the officers and remove any officers, if necessary. However, the supervisor should seek the
consensus of LIUNA’s General President before removing an officer. The supervisor’s authority should also
include the ability to negotiate the retirement of any officer, and the power
to call for a general officer election outside of the normal cycle. The supervisor is encouraged to foster the
participation of the union’s diverse membership.
Under this supervision, Local 1058’s
good relations with contractors, businessmen, and other professionals will not
be disturbed. The union will continue
to operate, while the international union fulfills its obligation under the
consent agreement of eradicating any vestiges of the influence of organized
crime.
1.
The GEB Attorney has
proven by a preponderance of the evidence that, as a group, current and former
Local 1058 officers’ associations with LCN members existed and were more than
fleeting or casual.
2.
The GEB Attorney has
proven by a preponderance of the evidence that the officers knew or should have
known that the individuals with whom they associated were LCN members.
3.
The GEB Attorney has
proven by a preponderance of the evidence that the officers’ associations had a
direct or indirect effect on the union.
The possibility remains that Local 1058 officers’ associations with the
Pittsburgh LCN continues; uncontested elections may reflect a continued
relationship with organized crime; and the perception of organized crime
association may remain with the membership.
4.
Despite a dearth of
recent evidence of any LCN association, the officers’ past LCN associations,
and over 30 of uncontested elections give LIUNA a bona fide reason to ferret
out evidence of organized crime because of its duty under the DOJ agreement.
5.
The imposition of a
trusteeship would be too intrusive a procedure for oversight of Local 1058
based upon this record, which includes Local 1058’s current business
performance and reputation, as well a lack of evidence suggesting improper
activities traditionally found in a LCN dominated union. The IHO concludes that
a supervision is the proper procedure for oversight.
6.
The GEB Attorney proved,
by a preponderance of the evidence, the need for supervision under the
conditions outlined above in the Discussion portion of this Order and
Memorandum.
PETER F.
VAIRA
INDEPENDENT
HEARING
OFFICER
[1] Joseph LaQuatra retired in May 2000 after the Complaint was filed.
[2] The agreement between LIUNA and the Department of Justice is described in Findings of Fact ¶¶ 17-19.
[3] The International Brotherhood of Teamsters’ reform process is described at fn. 4.
[4] In 1989, the Department of Justice filed a
civil complaint pursuant to the Racketeer Influenced and Corrupt
Organizations
provisions of the Organized Crime Control Act of 1970 (RICO) to place the
International Brotherhood of Teamsters in trusteeship. See
United States v. International
Brotherhood of Teamsters, 88 Civ. 4486 (S.D.N.Y.). Following a consent decree, procedure for
the investigation and hearing of disciplinary complaints was established. A judicial officer, called the Independent
Administrator (IA), was engaged to hear disciplinary charges. The IA exercises powers similar to those of
the IHO. The IA’s decisions are
reviewed by a Federal District Court Judge.
The IHO often uses the IA’s decisions, and the District Court’s review
of them, as precedent.
[5]
In 1990, Agent Greenbank was the principal case agent in an indictment
brought against 15 individuals, including
Charles Porter and Louis Raucci
Sr. Tr. 34. The indictment charged them with RICO violations involving the
distribution of narcotics, illegal gambling, loan sharking, extortion and other
related crimes. Id. The charges included
belonging to the criminal enterprise known as the Pittsburgh La Cosa
Nostra. Id. Charles Porter and
Louis Raucci Sr. were convicted of the Rico counts. Id.
[6] One of those agents, John Morris, is retired
and the other agent, Robert Lenihan, is assigned to the Newark, New Jersey FBI
office. Tr. 64.
[7] License plate information was run through
the Department of Motor Vehicle registration system to corroborate
identifications
made by other FBI informants.
Tr. 68.
[8] The Department of Justice selects the International Election Officer.
[9] For previous
IHO findings pertaining to LCN history in the United States, see Fallacara,
96-65D; Chicago
District Council,
97-30T; Bifulco, 95-48D; Matassa
Jr., 98-43D; In the Matter of Charles
Miceli, IHO Order and Memorandum,
98-11D (May 27, 1999).
[10] At the time of his death in 1980, Kelly
Mannarino was considered the most active Pittsburgh LCN family
member and stood
in line to become boss of the family. See GEB Ex. 92 (1990 PA Crime Report).
[11] The IHO notes that, despite Porter’s
cooperation with the FBI, the FBI provided no information about Porter’s
knowledge of the LCN’s continued relationship to Local 1058.
[12] By letter dated March 1, 2001, the GEB
Attorney requested that the IHO take judicial notice of pending charges
against
Sonny Ciancutti and Joseph Tobasco.
They are charged with misdemeanors for, inter alia, having illegal gambling devices on the premises of
Connie's Hotdog Shop/DogHouse and the New Beacon Club. See
Letter from Garner to Vaira of 3/01/01.
By letter dated March 6, 2001, Local 1058’s attorneys objected to this
request on the grounds that the record was closed, and the GEB Attorney’s
procedure in seeking the judicial notice was improper. See
Letter from Theiman to Vaira dated 3/6/01.
It is not necessary that the IHO rule on the procedure followed or the
merits of the item offered. The IHO may
take notice of any judicial event; however, regardless of how the item was
presented here, the IHO does not regard the item probative of the ultimate
issue in this case.
[13] Agent Greenbank also stated that Antonio
Ripepi was a “capo”, though he was inactive.
The findings made by
the Independent Administrator (IA) of the
International Brotherhood of Teamsters in Investigations
Officer v. Theodore R. Cozza, (January 4, 1991), contradict this testimony
regarding Ripepi. In that opinion, the
IA found that Ripepi was not a member of the Pittsburgh family. The IA’s finding was based upon FBI
reports. Because of Ripepi’s alleged
inactive status and because there is no evidence that he played any role in the
operation of Local 1058, the IHO finds no need to resolve the conflict.
[14] The IA of the Teamsters union permanently
expelled Teddy Cozza from the union in 1991 for bringing disrepute
upon the
union by associating with LaRocca Sr., Kelly Mannarino, Genovese, Jo-Jo-
Pecora, and Joseph Sica. See Investigations Officer v. Theodore R.
Cozza, Opinion of the Independent Administrator, (January 4, 1991).
[15] The IHO considers GEB Ex. 108 (Allegheny Car
Wash Source/Surveillance Log) solely as a compilation of
various FBI
surveillance files. The IHO notes the
union attorney’s objection to the editorial commentary contained within GEB Ex.
108, and specifically declines to consider same. See Tr. 233.
[16] The GEB Attorney has presented numerous
examples of Local 1058 officials attending funerals of LCN figures
and their
relatives. In the Italian American community,
especially with individuals whose parents or grandparents emigrated from Italy,
there may be family obligations requiring appearances at funerals or weddings
that have nothing to do with association with the LCN. Funeral attendees may be friends of the
law-abiding relatives of the LCN figure, or their parents may have been friends
with the parents of the LCN figure.
Family or community ties are often indirect and span years. In short, familial or ethnic community
obligations may explain appearances at a funeral. The IHO will weigh this evidence, absent the aforementioned
obligations, to determine if they are a ritual of respect for a LCN figure.
[17] According to Agent Greenbank, Tobasco
operates an illegal video poker machine business and is considered
an associate
of the Pittsburgh LCN. Tr. 824. The IHO notes that Tobasco was not mentioned
in any other testimony regarding LCN figures, and his status in the LCN is not
specified.
[18] See fn.12.
[19] The IHO concludes that the trip took place in the early 1970s.
[20] Hankish headed a Wheeling, West Virginia,
criminal organization that engaged in cocaine and heroine
trafficking, sports
and numbers gambling, receiving stolen property, theft, extortion, and
loan-sharking. Hankish turned in
betting action to Porter. See GEB Ex. 91 (1985 Pennsylvania Crime Commission
Report). In July 1990, Hankish pled
guilty to a number of federal charges and was sentenced to 33 ½ years in
prison. See GEB Ex. 92 (1990 PA Crime
Commission Report).
[21] Tom Pecora is Gerald Pecora’s great-uncle.
[22] For example: in July of 1974, Carl Scuilli resigned his Executive Board position two months after being re-elected, Tom Pecora appointed Kuntz in his stead; in July 1983; two months after winning re-election for Vice-President, Huston Olden retired from his position and Tom Pecora appointed LaRocca Jr. to that position on July 29, 1983; in 1986, Joe LaQuatra appointed Frydrych as an auditor to replace Lee Terry, who announced his retirement seven months after his re-election; Such resigned to replace Herrington on the Executive Board on 5/26/89, Herrington retired one month after being re-elected; one year after the 1992 elections, Such took Kuntz’s place as Secretary-Treasurer when he retired, Martire was appointed to take Such’s place on the Executive Board; Such served less than a year before retiring and Frydrych replaced him 10 months before elections. See Def. Ex. 6.
[23] Dennis Martire also testified that,
following the adoption of the EDP, Local 1058 attorney Steve Schermin
repeatedly
advised the local’s officials to avoid any association with LCN members or
associates. Tr. 1608.
[24] LaRocca Jr. was appointed President
effective 1/1/85, served three months, and exchanged positions with
Dennis
Martire. In April 1985, LaRocca Jr.
became Vice-President and Dennis Martire became President. See
Def. Ex. 6.
[25] The GEB Attorney’s expert witness, Professor
Summers, shares this opinion. Professor
Summers testified that,
based on the evidence presented to him, he would not
feel competent to recommend a trusteeship absent more evidence.