U.S. Department of Justice
Criminal Division
Washington, D.C. 20530
NOV 8 1996
Mr. Kenneth F. Boehm
Chairman
National Legal and Policy Center
8321 Old Courthouse Road
Suite 270
Vienna, Virginia 22182
Dear Mr. Boehm
Your letter to the Attorney General regarding the Justice Department's
agreement to settle a civil RICO law suit against the Laborer's International
Union of North America, AFL-CIO (LIUNA) has been forwarded to this office
for response. Specifically, your letter complains that the appearance is
that "the Department of Justice is allowing continued mob control
of LIUNA because it is an enormous source of contributions for the President
and his allies."
On February 15, 1995, the Department of Justice entered an agreement which
provided that LIUNA would be allowed an initial 90-day period in which
to begin a process of internal reform directed at removing La Cosa Nostra
(LCN) as a source of influence in the affairs of LIUNA. If at any time
after the expiration of that 90-day period up to February 13, 1998, the
Assistant Attorney General for the Criminal Division of the Department
of Justice determines that imposition of court supervision is "necessary
or desirable," he or she may direct that a civil complaint and previously
agreed upon Consent Decree be filed in the United States District Court
for the Northern District of Illinois. That previously agreed upon Consent
Decree establishes court appointed officers to oversee the reform of LIUNA
and provides for other court mandated reforms, including direct rank-and-file
election of all international officers of LIUNA.
Pursuant to the agreement between LIUNA and the Department of Justice,
LIUNA is currently pursuing internal reform measures designed to rid LIUNA
of any corrupting influence of organized crime. Pursuant to its internal
reform program, LIUNA has adopted a series of measures, including: the
implementation of a new ethics code, election reform, job referral reform,
legislative and constitutional reform, personnel and structural reform,
and undertaken numerous investigations, audits and disciplinary matters.
LIUNA has appointed four independent officers, all former federal law enforcement
officials, to oversee its internal disciplinary process. Pursuant to the
implementation of this disciplinary process, LIUNA has opened more than
three hundred forty-five investigation and completed more than ninety.
At least twenty-five LIUNA officers and members, including at least thirteen
LCN members and associates, have been removed from their LIUNA positions
for violations of LIUNA's ethical practices code. This internal disciplinary
mechanism has been applied to LIUNA officers at the international level
of the union including its current General President. LIUNA has also launched
major initiatives against organized crime control of LIUNA entities in
Chicago, Buffalo, New York City and other locations.
In addition, at the insistence of the Department of Justice, LIUNA has
adopted substantial election reform by amending its Constitution to provide
for direct rank-and-file election of its General President and General
Secretary-Treasurer, a practice followed in only a handful of unions in
this country. A referendum is being submitted to the general membership
of LIUNA this fall to determine if the International Vice-Presidents, elected
on a regional basis, will also be elected by direct rank-and-file voting
beginning in 2001. Recently, LIUNA held its general convention at which
there was substantial opposition to the reelection of the LIUNA General
Executive Board officers for the first time in the union's history.
The Department of Justice is closely monitoring LIUNA's efforts to carry
out internal reform to eliminate corruption and Department representatives
regularly meet with the persons directing LIUNA's internal reform effort
to ensure that the effort is effective. However, because the decision whether
to file the complaint and Consent Decree is still pending, it would be
inappropriate to elaborate further on the Department's decision making
process in this matter.
If you have specific details or information you believe would be of interest
to the government in its oversight of the LIUNA internal reform program,
you should contact your local office of the Federal Bureau of Investigation
or contact J. Kenneth Lowrie of this office or Assistant United States
Attorneys Craig A. Oswald or David B. Buvinger in Chicago, Illinois.
Sincerely,
Frank J. Marine
Deputy Chief
Organized Crime and Racketeering Section
cc: The Honorable James B. Burns
United States Attorney
U.S. Attorney's Office
Chicago, IL 60604
Attn: AUSA Craig A. Oswald
AUSA David B. Buvinger