Labor Boss Likely To Plead, Then
Quit Clinton Friend Vowed To End Corruption
Jerry Seper
Oct 2, 1999
Mr. [Arthur A.] Coia, named by the Democratic
National Committee as one of its "top 10 supporters"
and given White House perks including overnight stays, is expected
to plead to one count of taking a "personal benefit"
from a union vendor - a Rhode Island car dealer who arranged for
Mr. Coia to buy a $450,000 Ferrari.
Mr. Coia was the focus of an extensive investigation
by Washington lawyer Robert D. Luskin, a former prosecutor in
the Justice Department. He was hired by the union in 1997 as part
of a process established under a 1995 consent decree with the
department to head its internal cleanup. Mr. Luskin was asked
to pursue accusations that Mr. Coia was tied to the mob, allowed
mobsters to control the union and received favors from companies
that received union business.
The Luskin investigation ultimately brought 16 charges against Mr. Coia, all but one of which were later overturned by a hearing officer, Peter Vaira. Mr. Vaira ruled there was not enough evidence to prove Mr. Coia had associated with known mob figures in New England or that he had other organized crime ties.
Full Text:
Arthur A. Coia, head of the powerful laborers'
union and confidant of President Clinton and first lady Hillary
Rodham Clinton, is expected to plead guilty this month to fraud
charges and resign.
Mr. Coia, who promised the government he
would rid the embattled trade organization of corruption and its
long-standing ties to organized crime, has reached a tentative
agreement with federal prosecutors that would include the guilty
plea and block him from future contact with the 750,000-member
Laborers' International Union of North America, according to federal
authorities and others familiar with the pending deal.
Mr. Coia, named by the Democratic National
Committee as one of its "top 10 supporters" and given
White House perks including overnight stays, is expected to plead
to one count of taking a "personal benefit" from a union
vendor - a Rhode Island car dealer who arranged for Mr. Coia to
buy a $450,000 Ferrari.
David Roscow, union spokesman, denied yesterday
that Mr. Coia had reached any agreement with authorities.
"For the past four years, certain law
enforcement officials have engaged in irresponsible leaks designed
to pursue their own agenda and tarnish the union and Mr. Coia,"
he said. "There is no agreement and he has not been indicted."
But when pressed about the pending deal and
resignation, Mr. Roscow said his denials were accurate "to
my knowledge as of this time."
Mr. Coia was the focus of an extensive investigation
by Washington lawyer Robert D. Luskin, a former prosecutor in
the Justice Department. He was hired by the union in 1997 as part
of a process established under a 1995 consent decree with the
department to head its internal cleanup. Mr. Luskin was asked
to pursue accusations that Mr. Coia was tied to the mob, allowed
mobsters to control the union and received favors from companies
that received union business.
The Luskin investigation ultimately brought
16 charges against Mr. Coia, all but one of which were later overturned
by a hearing officer, Peter Vaira. Mr. Vaira ruled there was not
enough evidence to prove Mr. Coia had associated with known mob
figures in New England or that he had other organized crime ties.
The one remaining charge related to Mr. Coia's
purchase of the Ferrari, whose title was held by the car agency,
allowing Mr. Coia to avoid $40,000 in luxury taxes and to sell
the vehicle as new three years later. The union boss later was
fined $100,000 by Mr. Vaira in the purchase, although the matter
also had been turned over to the U.S. Attorney's Office in Boston.
Mr. Coia's pending plea agreement, which
still must be approved, would keep him out of prison, the sources
said.
Mr. Luskin yesterday declined comment on
the investigation or any pending deal, which was first reported
Thursday by the Daily Labor Report.
White House spokesman James Kennedy also
declined comment.
The Justice Department, after Mr. Vaira's
ruling was announced, said it was disappointed with the decision
and urged prosecutors to appeal the case. Deputy Attorney General
Eric H. Holder Jr. said at the time that although the case was
"thoroughly investigated" and "vigorously prosecuted,"
the department believed there were factual and legal errors in
the ruling.
The department not only was concerned about
the decision, but also about criticism by union dissidents that
it was influenced by Mr. Coia's well-documented political ties
to the White House and the DNC.
Under the 1995 consent decree, the Justice
Department retained the right to prosecute union officials and
seize control of the union if it was dissatisfied with an internal
cleanup promised by Mr. Coia. The decree allowed the union to
avoid having a racketeering complaint filed, which named Mr. Coia
in a conspiracy to embezzle funds from locals in New York and
accused him of seeking to control the union "through a pattern
of racketeering activity."
The 1994 Racketeering Influenced and Corrupt
Organizations Act complaint said Mr. Coia was tied to members
of a New England crime family and used "force, violence and
fear of physical and economic injury to create a climate of intimidation
and fear" within the union. The complaint accused Mr. Coia
of a conspiracy to embezzle funds from locals in New York.
The decision to drop the complaint came a
month after the DNC identified Mr. Coia in a memo as one of its
"top 10 supporters." The memo, sent to the White House,
served as the basis for a plan to reward big-money donors with
White House perks - including overnight stays.
The memo, by DNC Finance Chairman Terry McAuliffe,
listed Mr. Coia among Democratic Party donors touted for access
to Mr. Clinton.
While Justice Department lawyers were pressuring
Mr. Coia in 1994 to resign as a condition of the complaint being
dropped, he was successfully cultivating a relationship with the
Clintons - through former New York labor lawyer Harold Ickes,
then the White House deputy chief of staff.
A year earlier, Mr. Coia was identified in
a Justice Department memo to the White House as a "mob puppet."
Despite the warning, Mr. Coia visited Mr. Clinton in the Oval
Office several times. On one visit, Mr. Coia accepted as a gift
one of the president's personal golf clubs.
Mr. Coia also was instrumental in helping
raise $12 million for Democrats during a black-tie affair in 1996.
The union itself has given Democrats $3 million in campaign donations
during the past five years. In 1995, Mrs. Clinton was the featured
speaker at the union's annual convention in Miami.
Copyright Washington Times Library
Oct 2, 1999