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FBI investigates Obama's buddy
Sturmgewehr
Member Posts: 4,420
Andy Stern has visited the white house 52 times since Obama has been in office..
FBI investigates prominent labor leader Andy Stern
By SAM HANANEL (AP) - 3 hours ago
WASHINGTON - The FBI and the U.S. Labor Department are investigating prominent labor leader Andy Stern in their probe of corruption at the Service Employees International Union, according to two people who have been interviewed by federal agents.
The two organized labor officials met with federal agents this summer to answer questions about a six-figure book contract that Stern landed in 2006 and his role in approving money to pay the salary of an SEIU leader in California who allegedly performed no work.
Both officials spoke on condition of anonymity because of the sensitive nature of the investigation. The FBI and the Labor Department's office of inspector general declined to comment for the record.
The disclosure about the federal inquiry of Stern - who abruptly resigned as president of the 2.2-million member SEIU in April - comes just weeks ahead of contentious congressional elections in which the union is spending an estimated $44 million to support its favored Democratic candidates.
The SEIU has been plagued with several financial scandals since 2008, when the Los Angeles Times reported that Tyrone Freeman, head of the union's largest California local, misappropriated hundreds of thousands of dollars from the union. The union ousted Freeman and demanded that he return the money. No federal charges have been filed against him, but SEIU spokeswoman Michelle Ringuette said the union has been cooperating with the FBI.
Stern left his post two years before the end of his term, saying he wanted to focus more on his personal life. He remains a member of President Barack Obama's deficit commission and a highly influential figure in the White House, where he was one of the most frequent visitors last year. He is also a research fellow at Georgetown University and a paid consultant for the SEIU.
Ringuette said she is unaware of any federal scrutiny of Stern. Ringuette rejected the notion that there was anything improper about the book deal or how the union paid its officials. She said similar unsubstantiated accusations have been floated for years by disgruntled former SEIU leaders and conservative bloggers.
One person who spoke to federal agents twice, in May and June, said they asked about a 2006 contract in which Stern received a $175,000 advance from Simon & Schuster to write the book "A Country That Works." The SEIU and its locals bought thousands of copies of the book after it was published. The union also paid thousands to fact-check and promote the book, but Stern pocketed the advance.
Ringuette said the SEIU's executive board fully vetted and approved the project. The board told local unions that purchasing Stern's book "is a truly voluntary decision on the part of those who make it, and no adverse impact will result for anyone or any entity who refrains from purchasing or promoting the book," according to documents obtained by the AP. The board also instructed locals to make sure any book purchases were authorized by the local's constitution and bylaws.
Ringuette said the Simon & Schuster contract "did not require the purchase of a single book by SEIU." Stern also received no royalties from book sales to the union.
Federal officials are also asking questions about how Stern and union officials approved payments to Alejandro Stephens, former president of the SEIU local that represents Los Angeles County government workers, according to the people who were interviewed.
The FBI has been investigating Stephens for more than a year. Earlier this month, he was sentenced in federal court this month to four months in jail and three months' home confinement after pleading guilty to stealing $52,000 from a voter outreach program.
Stern has not been linked to any of the charges resulting in Stephens' guilty plea. But federal agents are seeking details about the time in 2007 when Stephens' local was merged into a larger SEIU local and he lost his post as president. The SEIU offered Stephens a generous severance package and a new job as a $75,000-a-year consultant to the SEIU California State Council.
Ringuette said the union arranged for Stephens to perform consulting work for the council and agreed to reimburse the council for his annual salary. But she said the union later discovered Stephens wasn't actually doing any work.
Federal law prohibits labor unions from creating what amounts to "no-show" jobs that pay someone for work they do not perform.
Stephens' attorney, Roger Rosen, said his client has not cooperated with federal officials and has no plans to in the future.
Associated Press Writer Pete Yost contributed to this report.
Copyright c 2010 The Associated Press. All rights reserved.
FBI investigates prominent labor leader Andy Stern
By SAM HANANEL (AP) - 3 hours ago
WASHINGTON - The FBI and the U.S. Labor Department are investigating prominent labor leader Andy Stern in their probe of corruption at the Service Employees International Union, according to two people who have been interviewed by federal agents.
The two organized labor officials met with federal agents this summer to answer questions about a six-figure book contract that Stern landed in 2006 and his role in approving money to pay the salary of an SEIU leader in California who allegedly performed no work.
Both officials spoke on condition of anonymity because of the sensitive nature of the investigation. The FBI and the Labor Department's office of inspector general declined to comment for the record.
The disclosure about the federal inquiry of Stern - who abruptly resigned as president of the 2.2-million member SEIU in April - comes just weeks ahead of contentious congressional elections in which the union is spending an estimated $44 million to support its favored Democratic candidates.
The SEIU has been plagued with several financial scandals since 2008, when the Los Angeles Times reported that Tyrone Freeman, head of the union's largest California local, misappropriated hundreds of thousands of dollars from the union. The union ousted Freeman and demanded that he return the money. No federal charges have been filed against him, but SEIU spokeswoman Michelle Ringuette said the union has been cooperating with the FBI.
Stern left his post two years before the end of his term, saying he wanted to focus more on his personal life. He remains a member of President Barack Obama's deficit commission and a highly influential figure in the White House, where he was one of the most frequent visitors last year. He is also a research fellow at Georgetown University and a paid consultant for the SEIU.
Ringuette said she is unaware of any federal scrutiny of Stern. Ringuette rejected the notion that there was anything improper about the book deal or how the union paid its officials. She said similar unsubstantiated accusations have been floated for years by disgruntled former SEIU leaders and conservative bloggers.
One person who spoke to federal agents twice, in May and June, said they asked about a 2006 contract in which Stern received a $175,000 advance from Simon & Schuster to write the book "A Country That Works." The SEIU and its locals bought thousands of copies of the book after it was published. The union also paid thousands to fact-check and promote the book, but Stern pocketed the advance.
Ringuette said the SEIU's executive board fully vetted and approved the project. The board told local unions that purchasing Stern's book "is a truly voluntary decision on the part of those who make it, and no adverse impact will result for anyone or any entity who refrains from purchasing or promoting the book," according to documents obtained by the AP. The board also instructed locals to make sure any book purchases were authorized by the local's constitution and bylaws.
Ringuette said the Simon & Schuster contract "did not require the purchase of a single book by SEIU." Stern also received no royalties from book sales to the union.
Federal officials are also asking questions about how Stern and union officials approved payments to Alejandro Stephens, former president of the SEIU local that represents Los Angeles County government workers, according to the people who were interviewed.
The FBI has been investigating Stephens for more than a year. Earlier this month, he was sentenced in federal court this month to four months in jail and three months' home confinement after pleading guilty to stealing $52,000 from a voter outreach program.
Stern has not been linked to any of the charges resulting in Stephens' guilty plea. But federal agents are seeking details about the time in 2007 when Stephens' local was merged into a larger SEIU local and he lost his post as president. The SEIU offered Stephens a generous severance package and a new job as a $75,000-a-year consultant to the SEIU California State Council.
Ringuette said the union arranged for Stephens to perform consulting work for the council and agreed to reimburse the council for his annual salary. But she said the union later discovered Stephens wasn't actually doing any work.
Federal law prohibits labor unions from creating what amounts to "no-show" jobs that pay someone for work they do not perform.
Stephens' attorney, Roger Rosen, said his client has not cooperated with federal officials and has no plans to in the future.
Associated Press Writer Pete Yost contributed to this report.
Copyright c 2010 The Associated Press. All rights reserved.
Comments
quote:The role of the SEIU, one of the biggest donors to Democrats across the nation and whose former leader boasted of the amount of union dues that went to elect Democrats and Barack Obama (and also noted he expected payback) is a blight across America. Andy Stern, who headed the SEIU for years, was the most frequent visitor to the White House in 2009 and now serves on the commission supposedly created to examine the deficit.
Home health aides are a big market for them. The union is trying to get state legislators to force their unionization, As Obamacare is implemented, more taxpayer dollars will flow to such home health care aides. Nice deal - except for the patients and the taxpayers - but who cares about them?
quote:Follow the Money: ACORN, SEIU and their Political Allieshttp://republicans.oversight.house.gov/images/stories/Reports/20100218followthemoneyacornseiuandtheirpoliticalallies.pdf
quote:SEIU union spends $500,000 in local election, may reach $1,000,000 - a sign of the times?
This SEIU case is a classic example of taxpayer money being recycled via union dues of public paid employees to then be spent to control the government so that more taxpayer money can go to union wages and benefits of public employees so that more dues can go to control the government. This is a microcosm of what is happening all across America.
Hoyer, Steny H (D-MD) $1,017,978
Kildee, Dale E (D-MI) $608,789
Obey, David R (D-WI) $574,400
Pomeroy, Earl (D-ND) $551,706
Ackerman, Gary (D-NY) $537,400
Frost, Martin (D-TX) $534,761
Levin, Sander (D-MI) $519,975
DeLauro, Rosa L (D-CT) $505,050
Slaughter, Louise M (D-NY) $500,270
Waxman, Henry A (D-CA) $494,415
Rangel, Charles B (D-NY) $493,150
Bonior, David E (D-MI) $491,466
Pelosi, Nancy (D-CA) $488,500
Evans, Lane (D-IL) $486,240
Abercrombie, Neil (D-HI) $482,680
Edwards, Chet (D-TX) $479,506
Pallone, Frank Jr (D-NJ) $470,600
Hill, Baron (D-IN) $445,750
Gephardt, Richard A (D) $444,800
Lampson, Nick (D-TX) $434,400
And remember all the money from public sector unions comes from tax payers who pay the salaries of the union workers whose dues are then confiscated by the unions for buying politicians to support the unions.
What happens when you count just industrial unions?
Gephardt, Richard A (D) $559,409
Bonior, David E (D-MI) $553,420
Green, Gene (D-TX) $551,750
Strickland, Ted (D-OH) $508,894
Levin, Sander (D-MI) $501,214
Holden, Tim (D-PA) $496,425
Brown, Sherrod (D-OH) $493,056
Kildee, Dale E (D-MI) $491,312
Costello, Jerry F (D-IL) $473,700
Abercrombie, Neil (D-HI) $464,710
Visclosky, Pete (D-IN) $462,800
Frost, Martin (D-TX) $461,198
Kaptur, Marcy (D-OH) $458,310
Obey, David R (D-WI) $452,900
Pomeroy, Earl (D-ND) $449,662
Thompson, Bennie G (D-MS) $448,314
Lampson, Nick (D-TX) $446,100
Evans, Lane (D-IL) $444,710
Stupak, Bart (D-MI) $443,000
Gordon, Bart (D-TN) $442,250
Gee, do we see a pattern here? How about when you just count building trade unions?
Abercrombie, Neil (D-HI) $585,900
Pallone, Frank Jr (D-NJ) $555,575
Holden, Tim (D-PA) $514,169
Gephardt, Richard A (D) $504,579
Levin, Sander (D-MI) $485,015
Miller, George (D-CA) $460,000
Hoyer, Steny H (D-MD) $455,720
Obey, David R (D-WI) $447,750
Hill, Baron (D-IN) $446,550
Sanchez, Loretta (D-CA) $445,400
Andrews, Robert E (D-NJ) $433,623
Evans, Lane (D-IL) $432,000
Kildee, Dale E (D-MI) $424,671
Visclosky, Pete (D-IN) $419,990
LoBiondo, Frank A (R-NJ) $419,799
Pelosi, Nancy (D-CA) $411,450
Payne, Donald M (D-NJ) $407,160
Bonior, David E (D-MI) $403,420
Boswell, Leonard L (D-IA) $402,050
Edwards, Chet (D-TX) $400,150