Boilermakers Union leaders indicted for embezzlement scheme

Two former presidents of the international Boilermakers Union were indicted Wednesday for charges related to a widespread embezzlement scheme, the Department of Justice said in a news release. The International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers represents more than 50,000 skilled craftsmen and industrial workers in the United States and Canada, according to its website.

Former union President Newton Jones and former Secretary-Treasurer William Creeden allegedly led a scheme to embezzle $20 million from the union over the course of 15 years, according to the DOJ. Former president Truman “Warren” Fairley, current Secretary-Treasurer Kathy Stapp, and former Vice President Lawrence McManamon were also charged, along with Kateryna Jones and Cullen Jones. The seven face charges under the Racketeer Influenced and Corrupt Organizations Act, along with embezzlement, healthcare fraud, wire fraud, and theft connected with healthcare and retirement plans. All of the defendants are presumed innocent until proven guilty, the DOJ said.

Where exactly did the money go? The defendants allegedly used over $5 million in luxury international travel and millions more in cash payments related to falsely claimed vacation time, according to the DOJ. Investigators found hundreds of thousands of union dollars used for tuition, rent, and other expenses for Newton Jones’ family members, the Justice Department said Authorities found about $7 million in unauthorized loans approved by Jones and Creeden. Jones and Creeden also face charges of wire fraud. The defendants face up to 20 years in prison on the RICO conspiracy count. A federal judge would decide the sentencing for the additional crimes if the defendants are convicted.