October 17, 1981

Nine members of the Laborers International Union have filed suit to recover union funds allegedly misused by their indicted president and other officers.

The suit, filed in U.S. District Court here Thursday, demands the return of union money allegedly used by union President Angelo Fosco and others in an illegal kickback scheme.

It accuses union officials of diverting union money for their personal benefit and in one case of making political contributions in the hope of deflecting a criminal investigation by federal officials during the years of the Carter administration.

Fosco and 15 other defendants were indicted in June by a federal grand jury in Miami on charges of conspiring to receive kickbacks for steering pension funds and insurance business to certain firms.

The indictment also named two reputed Mafia figures, Anthony Accardo and Santos Trafficante.

The suit asked for an accounting of all the union funds allegedly involved in various schemes and the eventual return of the money to union control.

The suit cites charges that Fosco and his son, Peter, who is the union's Chicago regional manager, and former union vice president Terence O'Sullivan abused union office by diverting funds for their personal benefit. It also asks the recovery of funds allegedly diverted to pay for lawyers in criminal cases.

Also cited were charges that union officers misused funds for campaign contributions, hoping to deflect criminal investigations launched by the Justice Department in 1980. The union leaders are accused of having that in mind when they authorized a donation of $25,000 to President Carter's campaign and another $125,000 to the Democratic National Committee.

The suit was filed on behalf of union members Chris White of Fairbanks, Alaska, and eight other members in various cities.