I.   RECOMMENDATION
 

The Independent Review Board recommends to the IBT General President that IBT Local 714 located in Chicago, Illinois be placed in trusteeship because the Local is not being run for the benefit of its members. As detailed below, the Local is being run for the benefit of its principal officer William Hogan, Jr., President James M. Hogan, Recording Secretary Robert Hogan and their family and friends.
 

Nepotism and favoritism are prominent factors influencing entry into and work assignments in the Local's trade show/movie division which refers members to the Local's best jobs. Local members in positions of authority in that division and their relatives own businesses which are dependent for profits on Local 714 employers. These business interests with employers were not disclosed to members.
 

Moreover, the Local has also entered into several apparently sham collective bargaining agreements which allowed management members to become Teamsters and, in one instance, allowed a company a Hogan relative owned, from the beginning of the contract until two years later to avoid its contractual obligations to make health fund contributions.
 

Accordingly, pursuant to Article VI, Section 5(a) of the
 

IBT Constitution, a trusteeship is warranted.

II.   SUMMARY
 

The IRB conducted a thorough investigation of Local 714. In December 1995, the Local's books and records were examined. Between January and May 1996, the sworn examinations of 126 Local 714 members and 11 Local officers and business agents were conducted..^l
 

Since at least 1961, Local 714 has not held any contested elections for union office and each member of the current Executive Board was initially appointed to office. (Ex. 1 at 4-5, 9-10) Nepotism was an improper influence in appointments to union positions, obtaining Local employment and in the administration of   the Local's 258-member trade show/movie division. Three relatives of former principal officer William Hogan, Sr. are Local Executive Board members originally appointed to fill vacancies: his two sons, Secretary-Treasurer William Hogan, Jr. and President James M. Hogan, and his grandson, Recording Secretary Robert Hogan. A fourth relative, his son-in-law Michael Vendafreddo, is a Local business agent. (Appendix A) Hogan relatives also have the contract to clean the Local's offices and have been Local clerical employees.
 

With respect to the Local's trade show/movie division, as detailed infra at 23-31, there are no written procedures governing
 

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¹ Of the members whose sworn examinations were conducted, 114 were members in the Local's trade show/movie division.
 

2
 

how individuals may become part of the division or how the members are referred to work. Secretary-Treasurer William Hogan, Jr., his appointed chief steward and his son, trade show/movie division business agent Robert Hogan, control which individuals will be allowed to join the division. Family and social relations control who is permitted to join the division. This is evident in that half of the individuals permitted to join the Local's trade show/movie division since January 1993 had ties to the Hogan family or one of the appointed chief stewards, Michael Hardy or Nick Boscarino. (Ex. 2)² Michael Hardy, the trade show/movie division chief steward, whom the Local's principal officer appointed and may remove, controls who in the division is referred to work.
 

Moreover, relatives and friends of the Hogan family dominate the authority positions within the Local's trade show/movie division. Seventy-two percent of the members who have held positions of authority in the movie industry began working in the industry through ties to the Hogan family (Ex. 3); over half of the members who have held authority positions in the trade show industry have ties to the Hogan family. (Ex. 4) In addition, as detailed infra at 32, at a minimum, twenty percent of the members in the trade show/movie division have ties to the Hogan family. (Ex. 5)³ As discussed infra at 62-63, the manner in which members
 

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² Boscarino is the chief steward for Local 714 employer Rosemont Exposition Services.
 

³   As detailed infra at 32, this figure is based upon information known about 136 of the 258 members in the trade show/movie division. (Ex. 5)   As a result, the twenty percent figure is the minimum percentage of members in that division who have ties to the Hogan family.

4

Local 714 members do business with his companies.

In addition to the nepotism, favoritism and conflicted positions in the trade show/movie division, the Local appears to have allowed ineligible individuals to become members and entered into sham contracts. For example, Local 714 was unable to provide a signed collective bargaining agreement for S & J Scrap where two Local members, Brian and Sheldon Weinberg, were allegedly employed. As detailed infra at 96-100, the address given for Brian and Sheldon Weinberg's purported employer was a used car lot. After IRB inquiries to the Local regarding them, the Weinbergs were issued withdrawal cards and the Local's Metal Industry Health Fund filed a complaint against the Weinbergs seeking to recover health benefits paid on their behalf.⁵
 

Furthermore, without disclosure of the family relationship to the Local's Executive Board or to the members employed at the company, Local 714 entered into a collective bargaining agreement with a company William Hogan, Jr.'s nephew owned, Convention Cartage Systems, and failed to collect health benefit premiums from the company for approximately two years. Maxwell's uncle and cousin, President Hogan and Recording Secretary Hogan, signed the contract on behalf of the Local. Trade show/movie division steward Robert Hogan also was the business
 

agent for his cousin's company. Since the signing of this agreement in May 1994, Convention Cartage Systems failed to make the contractually required contributions for its employees to the Local 714 Health Fund. Subsequent to the IRB's inquiries regarding this company, the Local 714 Health Fund filed a complaint seeking at least $50,000 in back contributions to the Fund.
 

In addition, the Local entered into a collective bargaining agreement with a company, Consolidated Film Delivery, which contained an unusual provision. The agreement provided in the section dealing with health benefits that "[t]he Company may include their own office help or any one they choose providing the law will allow them." (Ex. 128 at 5) An officer of this company is apparently a member of Local 714 and the steward.
 

Furthermore, as detailed infra at 100-102, 105, the Local permitted at least four non-bargaining unit employees to join the Local apparently for health benefits. As discussed infra at 102-105, the Local also permitted an individual to join the Local's trade show/movie division while his criminal appeal was pending and remain a Local member while he was incarcerated.
 

The Local has undertaken after the IRB investigation some claimed remedial actions which appear to lack substance. None of these claimed reforms address the historic discrimination that has made membership in the movie and trade show division open to only a connected few.
 

The Local has a history of making cosmetic changes in the face of adverse attention. As discussed infra at 118-120, in the
 

1970s after negative publicity in Chicago papers regarding organized crime figures employed at McCormick Place, the Local addressed the problem by planning to temporarily transfer the identified organized crime figures to less high profile jobs within the Local until media attention died down.
 

The Local's lack of commitment to reform itself was also recently demonstrated after an IBT auditor raised with Secretary-Treasurer Hogan and his brother, President Hogan, that Local 714 has not held the number of Executive Board and membership meetings the IBT Constitution required. Compliance was promised. Even after that, the Local did not comply with the IBT Constitutional requirements.
 

Accordingly, for all the above reasons as detailed below,    it appears Local 714 should be placed in trusteeship.
 

III.   INVESTIGATIVE FINDINGS
 

A. Background
 

Local 714 has approximately 10,700 members employed at various Chicago area employers including the Cook County Sheriff's office, the Cook County Department of Corrections and various manufacturing companies. (Exs. 131 and 132) Local 714 has approximately 258 members employed in the trade show and movie industries. (Ex. 133) The current Local 714 officers are: Secretary-Treasurer and principal officer William Hogan, Jr., President James M. Hogan, Recording Secretary Robert Hogan, Vice President Marshall Arrington, and Trustees Robert Riley, Virginia
 

Lee and Michael Hardy. (Ex. 131) Of the five Executive Board members who are Local employees, three are related.
 

William Hogan, Jr., who has been employed at Local 714 since 1961, was appointed Secretary-Treasurer in October 1990 upon the retirement of his father,-William Hogan, Sr.. (Ex. 1 at 4-5, ₇₎6 Hogan's current annual salary from Local 714 is approximately $124,000. (Ex. 1 at 10-11) In addition, as President of Joint Council 25 he is paid an additional $59,000 a year. (Ex. 1 at 11) His total annual income from IBT entities is approximately $183,000. (Ex. 1 at 10-12)
 

James M. Hogan, William Hogan, Jr.'s brother, was appointed President in 1990 to fill the vacancy created when his father retired and his brother moved from President to Secretary-Treasurer. (Ex. 135 at 8-9) He has worked at Local 714 since 1969. (Ex. 135 at 6-7) He has been a Trustee on the Local 714 Health and Welfare Fund since 1990 and a Trustee on the Local 714 Prepaid Legal Fund from its start in 1979. (Ex. 135 at 12-13) His current annual salary from Local 714 is approximately $176,000. (Ex. 135 at 12)
 

Recording Secretary Robert Hogan is the son of the Secretary-Treasurer and the nephew of the President. (Ex. 57 at 3-4, 7) His grandfather hired him as a business agent in January
 

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⁶ As detailed infra at 31-35, at least twenty-two of William Hogan, Jr.'s relatives are Local 714 members. (Ex. 134 and Appendix A) Three of these relatives are Local employees. In addition, at a minimum, twenty percent of the members in the Local's trade show/movie division began working in that division as a result of connections to the Hogan family. (Ex. 5)
 

1990. (Ex. 136 at 5-6) In late 1990, he was appointed Recording Secretary. (Ex. 136 at 6) His current annual salary from Local 714 is approximately $59,000. (Ex. 136 at 6)
 

Vice President Marshall Arrington ("Arrington") began as a business agent in September 1975. (Ex. 137 at 3-4) Prior to being hired at Local 714, Arrington had been employed as an organizer at IBT Local 743 since March 1970. (Ex. 137 at 3-4) William Hogan, Sr. hired Arrington to work at Local 714. Arrington has been the Vice President and business agent since approximately 1991. (Ex. 137 at 11)⁷ Prior to becoming Vice President, Arrington was a Trustee for three years. (Ex. 137 at 11) Arrington is also a Trustee on the Local 714 Metal Industry Health Fund. (Ex. 137 at 13) Arrington's current salary from Local 714 is approximately $80,000. (Ex. 137 at 11-12)
 

Trustee Robert Riley ("Riley") has been employed at Local 714 since approximately 1982. (Ex. 138 at 7)⁸ At that time, then Secretary-Treasurer William Hogan, Sr. hired Riley as a business agent after a company Riley co-owned with William Hogan, Jr., James M. Hogan, their brother Michael Hogan, Sr. and others went out of
 

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⁷ At least two of Arrington's relatives are Local 714 members. His son, Terrance Arrington, who works as an extra in the trade show division (Ex. 137 at 36), also works for Local 714 employer Overdale. (Ex. 137 at 7-8) Another son, Marshall Arrington, Jr., is currently employed at Cozzi Iron and Metal. (Ex. 137 at 8-10) Arrington is the business agent for Overdale and Cozzi Iron and recommended to both employers that his sons be hired. (Ex. 137 at 7-11)
 

⁸ For two or three years beginning in 1959, Riley was a Local 714 member at Fullerton Metals Company, a Local 714 employer. He then became the national sales manager for Fullerton Metals, a non-union position. (Ex. 138 at 3-4, 11-12)
 

business. (Ex. 138 at 7-11)⁹ In approximately 1990, Riley was appointed a Trustee on the Local's Executive Board. (Ex. 138 at 13) Riley has been a Trustee on the Local 714 Metal Industry Health Fund for approximately six years. (Ex. 138 at 18)¹⁰ Riley's Local 714 annual salary is approximately $75,000. (Ex. 138 at 14)¹¹
 

Trustee Michael Hardy ("Hardy") has been a member in the Local 714 trade show/movie division since 1976. (Ex. 49 at 3)¹² In approximately 1979, Hardy was appointed a Local 714 Trustee. (Ex. 131)¹³   Also in approximately 1979, then Secretary-Treasurer
 

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⁹ The company Riley owned along with members of the Hogan family was Algonquin Stamping, a metal stamping company which Riley
 purchased in approximately 1978. (Ex. 138 at 8)   Algonquin Stamping was a non-union company. (Ex. 138 at 9-10) In approximately 1980, it filed for bankruptcy and Riley continued with the company until it closed in 1982. (Ex. 138 at 10)
 

10 Trustee Riley's brother and son are both Local 714 members. Riley's brother, Edward, has been a member of Local 714 since October 1966 when he joined the Local by contacting his neighbor and friend then Local 714 Secretary-Treasurer William Hogan, Sr.. (Ex. 100 at 3-4) Edward Riley began working in the Local's trade show/movie division in the early 1970s. (Ex. 100 at 6-7)
 

Trustee Robert Riley's son, Paul, has been a Local 714 member employed at Jorgensen Steel for the past eight years. Robert Riley is the business agent for this company. In addition, another son, Sean, was a Local 714 member employed at Jorgensen Steel for approximately two years before leaving in 1994. (Ex. 138 at 5-7)
 

11 Included in this salary is a $1,100 monthly organizing bonus. According to Riley each business agent received $1 per member per month for each member the business agent organized. The business agent continues to receive this amount for each member as long as the member remains in the Local. (Ex. 138 at 14-15)
 

12 Hardy testified that two of his brothers, John and Steve, are also Local 714 members in the trade show/movie division. (Ex. 49 at 6-7)
 

13 For serving as a Trustee, Hardy is paid a quarterly stipend from the Local. (Ex. 49 at 7)
 

William Hogan, Sr. appointed Hardy as the chief steward in the trade show division. (Ex. 49 at 11) In 1995, Hardy was paid approximately $100,000 as the chief steward. (Ex. 49 at 19)¹⁴
 

Trustee Virginia Lee ("Lee") has been a Local 714 member for approximately 25 years. (Ex. 139 at 3) She is currently employed full-time at Parkview Metals and, in 1992, was appointed a Trustee. (Ex. 139 at 4, 6-8)

Local 714 has four business agents who are not Executive Board members. One of these, Michael Vendafreddo, is the current Secretary-Treasurer's and President's brother-in-law and the Recording Secretary's uncle. (Ex. 140 at 4, 7-8)¹⁵ In or about October 1985, then Secretary-Treasurer William Hogan, Sr., hired his son-in-law Vendafreddo to be a Local 714 business agent. (Ex. 140 at 3-4)¹⁶ He had no prior experience as a union employee. Local 714 pays Vendafreddo approximately $62,000 each year. (Ex. 140 at 11)
 

In 1972, then Secretary-Treasurer William Hogan, Sr. hired current business agent Joseph L. Martucci ("Martucci") as an organizer. (Ex. 141 at 3, 11)¹⁷ After approximately two years as
 

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14 Local 714 does not pay Hardy; the trade show contractors at McCormick Place pay him. (Ex. 50 at 28)
 

15 Prior to working for Local 714, Vendafreddo worked periodically in the Local's trade show/movie division as an extra. (Ex. 140 at 5)
 

16 Vendafreddo's son, Michael Vendafreddo, Jr., is a member of the Local's trade show/movie division. (Ex. 116 at 3-4)
 

17 Prior to being hired at Local 714, Martucci was a business agent with the Chicago Joint Board which was affiliated with an international that represented industrial workers in the novelty
 

an organizer, Martucci became a business agent/organizer. (Ex. 141 at 11-12) In approximately 1989, William Hogan, Sr. appointed Martucci a Trustee on the Local 714 Health and Welfare Fund. (Ex. 141 at 16-17) Martucci's annual salary from Local 714 is approximately $60,000. (Ex. 142)¹⁸
 

Business agent Genaro Rodriquez was hired as a business agent in 1988. (Ex. 143 at 3-4) Prior to 1988, Rodriguez was employed as a workers compensation claim investigator for the City of Chicago. (Ex. 143 at 5) Rodriguez testified that he heard of the position at Local 714 through Alderman George Hopian, business agent Martucci's father-in-law. (Ex. 143 at 6-7, 11-12) According to Rodriguez, William Hogan, Sr., then the Local's principal officer, hired him as a business agent. (Ex. 143 at 4) Local 714 pays Rodriguez approximately $52,000 a year. (Ex. 143 at 15)
 

Business agent Lizette Alonso was hired as a business agent in January 1994. (Ex. 144 at 3-4) Business agent Rodriguez, whom Alonso knew from political activities, recommended her for the position. (Ex. 144 at 3-4) Alonso, who was working as a personal banker before the Local hired her, testified that she had no prior union experience. (Ex. 144 at 4-5) Alonso's current salary is approximately $27,000. (Ex. 144 at 6)

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business. (Ex. 141 at 5)   Martucci testified that he was also a vice president for Industrial Local 8. (Ex. 141 at 5) Martucci testified that he met William Hogan, Sr. at political and labor functions. (Ex. 141 at 11)

 

¹⁸ Martucci's two sons, Joseph F. Martucci and Robert Martucci, are members of the Local 714 trade show/movie division. (Ex. 76 at 4, 6) Martucci testified that he arranged for his two sons to join the Local. (Ex. 141 at 13)
 

B.   Local 714 is Run for the Benefit of the Hogan Family and Friends
 

Local 714 was chartered in approximately 1934. (Ex. 145) William Hogan, Sr., who became a Local 714 employee in May 1939, was the Local's principal officer from 1940 until 1990 when he retired. (Ex. 146 at 2-3; Ex. 147) For at least the past thirty-five years, Local 714 has not had any contested elections for union office. (Ex. 1 at 4-5, 9-10) Every member of the current Executive Board first became a member of the Board when appointed by the Board to fill a vacancy.
 

In or about July 1961, William Hogan, Sr. appointed his son William Hogan, Jr., then approximately twenty-one years old, to a Local 714 office clerical position. (Ex. 1 at 4-5, 8) Within one year William Hogan, Jr. was appointed a business agent. (Ex. 1 at 5, 6)¹⁹ In 1968, his father appointed him Vice President. (Ex. 1 at 6-7) After approximately one year as Vice President, he was appointed President. (Ex. 1 at 7) As discussed, William Hogan, Jr. was appointed principal officer after his father retired in 1990. (Ex. 1 at 7)
 

19 William Hogan, Jr. became a Local 714 member the day after he was hired to work at Local 714. (Exs. 148-149) During his sworn examination, William Hogan, Jr. testified that immediately prior to his Local 714 employment, he worked as a non-union glue
 

factory worker. (Ex. 1 at 5-6) William Hogan, Jr.'s only experience working for a company with a collective bargaining agreement with the Local was his work in the stockroom at Elkay Manufacturing when he was in high school. (Ex. 1 at 10)
 

Hogan, Sr. hired his son, current President James M. Hogan, in April 1969 as a business agent. (Ex. 135 at 3, 7) James Hogan testified that he was never employed by an employer having a collective bargaining agreement with Local 714. (Ex. 135 at 5) He had no prior experience representing employees. (Ex. 135 at 4-5) In approximately 1975, James Hogan was appointed a Trustee on the Local's Executive Board. (Ex. 131) In or about 1977, he was appointed Recording Secretary and in 1990, he was appointed President. (Ex. 135 at 8-9; Ex. 131)²⁰
 

In January 1990, then Secretary-Treasurer William Hogan, Sr. hired his grandson Robert Hogan as a business agent. (Ex. 136 at 5-6) Robert Hogan joined the Local 714 trade show/movie division in July 1983 when he was approximately 19 years old. (Ex. 136 at 3-4) He is currently the Local's Recording Secretary, the third Hogan family board member, and a business agent for the trade show/movie industry. (Ex. 136 at 6)
 

In or about 1985, William Hogan, Sr., hired his son-in-law, Vendafreddo, to be a Local 714 business agent. (Ex. 140 at 3-4)²¹ Vendafreddo had no prior experience representing employees.
 

²⁰ President Hogan's son, Brian Hogan, became a Local 714 member in approximately September 1994 employed at Convention Cartage. (Ex. 150 at 4) As discussed infra at 106-111, Ronald Maxwell, Jr., a nephew of both President and Secretary-Treasurer Hogan, owns Convention Cartage Systems, which has a collective bargaining agreement with Local 714. (Ex. 135 at 52-54)
 

21 According to President Hogan, approximately ten years ago, Elizabeth Vendafreddo, his sister and Vendafreddo's wife, worked in the Local's offices. (Ex. 135 at 20)
 

(Ex. 140 at 5-6, 9-10)²²
 

Between approximately 1973 and 1990, the Local employed Delores Voss, a cousin of William Hogan, Jr., in the Local's office. (Ex. 118 at 4, 6; Ex. 151; Appendix B)²³ When Voss retired in 1990, she was the Local's office manager. (Ex. 151; Ex. 118 at 6)²⁴ Voss's employee wage and expense records reflected that Local 714 paid her $33,052 in 1990. (Ex. 151) In addition, President Hogan testified that his cousin, Eileen Nallon, worked as a Local secretary for approximately ten years. (Ex. 135 at 114) According to Local records, Nallon was last employed at Local 714 in October 1989. (Ex. 152)
 

William Hogan, Jr.'s sister, Winifred Torii, and her husband, Local 714 trade show/movie division member Dale Torii, own Exhibition Maintenance, which Local 714 pays $1,050 each month to provide cleaning services to the Local. (Ex. 115 at 10; Ex. 153)²⁵
 

22 Prior to being hired to work at Local 714, Vendafreddo had a business, Winella Enterprises, Inc., which sold a coffee extending product. (Ex. 140 at 4)
 

23 Delores Voss's mother, Margaret Levin, whose maiden name was Nallon, was the sister of William Hogan, Sr.'s wife, Winifred Hogan, whose maiden name was also Nallon. (Ex. 118 at 4-5; Appendix B)
 

24 Delores Voss's husband, George Voss, and their son, Robert Voss, worked in the Local's trade show/movie division. (Ex. 118 at 6-7) George Voss retired; Robert Voss is currently a trade show/movie division member. (Ex. 118 at 6-7)
 

25 Local 714 trade show/movie division member Joe Polizzi testified that while he was working as an extra in the Local's trade show/movie division in 1994 and 1995, he worked for Dale Torii's company cleaning the union hall. (Ex. 97 at 16-17) Polizzi testified that he worked cleaning the union hall three or four times a week for an average of two hours each day. (Ex. 97 at 17) Polizzi testified that at that time he was the only person cleaning
 

In addition, Local 714 paid Brian and Brad Hogan, the President's sons, to do clean-up work at the Local after the renovation of the Local's offices. (Ex. 150 at 8)
 

1.   Introduction
 

Local 714 has jurisdiction to represent employees in the trade show and movie industries in the Chicago area.²⁶ The trade shows are held at several locations including McCormick Place, the Rosemont Exposition Center, Navy Pier and several hotels. (Ex. 50 at 47, 87)²⁷ There are approximately 258 Local 714 members in the Local's trade show/movie division. (Ex. 133)²⁸
 

The jobs in the trade show/movie division, as discussed in Appendix C, are among the highest paid jobs in the Local. For example, as detailed in Appendix C, the forklift operators in the trade show division were paid the highest hourly rate of any forklift operators in the Local. (Exs. 161 and 162) The forklift
 

at the union hall and he was paid a flat rate of $500 a month for such work. (Ex. 97 at 18) Polizzi testified that he stopped cleaning the union hall when he became a Local member. (Ex. 97 at 18)
 

26 Local members also work on concert productions in the Chicago area. (Ex. 50 at 47)
 

27 In news accounts, McCormick Place has been described as the largest national convention center. (Ex. 154)
 

28 This is the number of men on the January 1996 trade show/movie division membership list. (Ex. 133) These members do not pay dues via check-off because they are not regularly employed by any particular employer. Rather, these members self pay dues to the Local on a quarterly basis. There appear to be no women on the trade show/movie division list. (Ex. 133)
 

drivers covered under the trade show collective bargaining agreements were paid between $4.50 and $10.75 per hour more than the other Local 714 members employed as forklift drivers. (Exs. 159, 161 and 162.)
 

The highly paid positions in the trade show/movie division appear to be given to relatives and friends of the Hogan family and the two chief stewards. These positions do not appear to be open to longstanding Local members working in other areas.
 

As detailed infra at 18-20, the Local has the authority
 

refer individuals to work in the trade show and movie industries. The Local does not have any written procedures regarding either work referrals or who will be permitted to become a member of the Local's trade show/movie division. Relatives and friends of the Hogan family and the two chief stewards in the trade show/movie division dominated the positions of authority in this division.²⁹ Seventy-two percent of the twenty-two members who have held positions of authority in the movie industry were relatives or pre-union friends of the Hogan family. (Ex. 3)
 

Only six of the 136 members in the Local's trade show/movie division for whom information was gathered were members of the Local prior to working in the Local's trade show/movie
 

division. (Ex. 5)³⁰ Moreover, of the thirty-four individuals who joined the Local's trade show/movie division since January 1993, fifty percent were relatives or friends of the Hogan family or the two chief stewards. (Ex. 2)
 

As the comparison among Local 714 contracts found in Appendix C shows, the trade show/movie division jobs are substantially better paid and have better benefits than other comparable jobs covered under Local agreements. Given this, the disproportionate presence of Local officers' and stewards' relatives and friends in the trade show/movie division jobs shows the officers and stewards run the Local for themselves and not the members.
 

2.   The Local's Authority Regarding Work Referrals in the Trade Show and Movie Industries
 

a. Trade Shows
 

Local 714 has current collective bargaining agreements with approximately five trade show contractors who do business in the Chicago area including Freeman Decorating Services ("Freeman"), Greyhound Exposition Services ("GES"), J & J Exhibitor Service ("J&J"), Rosemont Exposition Services ("RES") and Champion
 

30 Information regarding 136 members who self pay their dues and work for various trade show contractors and movie production companies was gathered during the sworn examinations of 114 members in the trade show/movie division and the Local's officers and employees. Of the 136 individuals for which information was obtained, only six members were Local 714 members prior to working in the Local's trade show/movie division. (Ex. 5) Four men who were Local 714 members prior to working in the Local's trade show/movie division, John A. Smith, Aubrey Smith, Dennis Smith and Darnell Jones, previously worked for Local 714 employer Stainless Processing. (Ex. 108 at 3-4; Ex. 60 at 3; Ex. 110 at 3-4; Ex. 107 at 8)
 

Exposition Services. (Exs. 132, 155-58 and 305) Pursuant to Article II, Section 2(a) of the collective bargaining agreements with these six companies, Local 714 has the authority to refer individuals to work for the trade show contractors at the different trade shows in the Chicago area. (Exs. 155-58 and 305; Ex. 136 at 53)
 

When the Local 714 chief steward, whom the Local's principal officer appointed, received a call from trade show contractors requesting members for a trade show, he then referred individual members to work for the contractors. (Ex. 50 at 27-28; Ex. 52 at 15-16; Ex. 1 at 110) In addition to referring Local 714 members to work, the chief steward also referred extras, who are not Local members, to work for the trade show contractors. (Ex. 50 at 20, 25)³¹ Extras are referred to work if all the members in the trade show/movie division are working. (Ex. 50 at 35-36) Work covered under the Local 714 collective bargaining agreements with trade show contractors can only be done by someone the chief steward referred. (Ex. 50 at 20-21; Ex. 136 at 52)³²
 

b. Movies
 

According to Secretary-Treasurer Hogan, for each movie
 

31 The extras the chief steward assigned to work were paid the same hourly rate as the Local members and employer contributions to benefit funds were paid according to the collective bargaining agreement on behalf of the extras. (Ex. 50 at 51-52) However, an extra may not qualify for certain benefits because, for example, a certain number of hours per quarter was necessary in order to obtain health benefits. (Ex. 50 at 50-51)
 

32 The only exception was the trade show contractors were free to hire if the chief steward could not fill the call. (Ex. 50 at 53)
 

production, the movie production company and Local 714 enter into a letter of agreement which sets forth wages and benefits. (Ex. 1 at 34-35) Secretary-Treasurer Hogan, chief steward Hardy and business agent Robert Hogan were responsible for deciding which members and extras would work on movie productions. (Ex. 1 at 110; Ex. 50 at 58-59)
 

3.   The Chief Steward Position
 

Secretary-Treasurer Hogan testified that he had the authority to appoint and remove Local 714 stewards. (Ex. 1 at 28-29) Section 12 of the Local 714 Bylaws provided,
 

[b]y determination of, and in the sole discretion of the Secretary-Treasurer, stewards shall be appointed by the Secretary-Treasurer, or may be elected by the members of each particular division, craft or place of employment.
 

(Ex. 163) In addition to having a chief steward for the Local's entire trade show and movie division with an office located at McCormick Place, the Local also has a chief steward based at the Rosemont Exposition Center. (Ex. 13 at 22-23) Beginning in 1978, the appointed chief steward at the Rosemont Exposition Center was Nick Boscarino ("Boscarino"). (Ex. 13 at 18, 22-23) As discussed infra at 74-77, on the date of his second IRB sworn examination, Boscarino resigned his position as Rosemont chief steward and his IBT membership effective immediately, apparently to avoid testifying. (Exs. 124-26) Boscarino's position at the Rosemont Exposition Center is discussed infra at 51-53.
 

Beginning in at least the late 1960s, the chief steward
 

in the Local's trade show division was David Kaye ("Kaye^").³³ In or about the mid 1970s, Kaye was convicted of violating 18 U.S.C. §1962(c) and 29 U.S.C. §186(b)(1) in connection with taking money from trade show contractors for work he did not perform. He was sentenced to two years incarceration and a consecutive sentence of three years probation. Kaye's conviction was affirmed on May 16, 1977. United States v. Kaye, 556 F.2d 855 (7th Cir. 1977).^m
 

After Kaye went to prison, Michael Hogan, Sr., a third son of William Hogan, Sr., was appointed the Local's chief steward. (Ex. 1 at 87; Ex. 50 at 5) According to Local 714 records, he had become a Local 714 member in or about October 1968. (Ex. 164) In or about 1979, he resigned as the Local 714 chief steward. (Ex. 49
 

at 11) 35
 

33 In or about 1971, David Kaminsky, David Kaye's nephew, joined Local 714 and began to work in the receiving room at McCormick Place. (Ex. 303 at 3-5) Kaminsky testified that in approximately 1980 he was convicted of felony assault with a weapon and was sentenced to probation. (Ex. 303 at 6-7)
 

34 It appears that while Kaye was appealing his conviction, he was permitted to continue as the Local's chief steward at McCormick Place. On May 16, 1977, the Court of Appeals for the Seventh Circuit affirmed Kaye's conviction. United States v. Kaye, 556 F. 2d 855 (7th Cir. 1977) During a deposition taken on June 21, 1977, William Hogan, Sr., then the Local 714 principal officer, testified that Kaye was continuing to work at McCormick Place. (Ex. 146 at 12) As discussed infra at 102, fn. 201, the Local has continued its tradition of embracing convicted felons to the detriment of its other members.
 

35 As discussed infra at 77-80, it appears that Michael Hogan, Sr. left his position as chief steward to form Rosemont Exposition Services, the trade show contractor at the Rosemont Exposition Center. (Ex. 135 at 98-99) Rosemont Exposition Services currently has a collective bargaining agreement with Local 714. (Ex. 156) As discussed infra at 79-80, it is unclear whether Michael Hogan, Sr. has a continuing interest in Rosemont Exposition Services. However, during the time that he had an ownership interest in that
 

Upon his son's resignation as chief steward, in or about 1979, William Hogan, Sr. appointed Michael Hardy ("Hardy") to be the chief steward in the trade show division. (Ex. 49 at 11) In approximately 1976, Hardy had first become a Local 714 member in the Local's trade show/movie division. (Ex. 132)³⁶ As discussed supra at 10-11, in 1979 Hardy was appointed a Trustee on the Local's Executive Board. (Ex. 131) Hardy, who has an office at McCormick Place, testified that in 1995 he was paid approximately $100,000 as the Local's chief steward. (Ex. 49 at 12, 18-19)³⁷ Hardy testified that whichever trade show contractor handled the trade show at McCormick Place paid his salary. (Ex. 49 at 18)
 

During his May 29, 1996 sworn examination, Secretary-Treasurer Hogan testified that Hardy intended to resign as chief steward. (Ex. 1 at 77, 80) Hogan testified that Hardy's resignation was prompted by questions about Hardy's credibility. (Ex. 1 at 77) As of the date of his sworn examination, Hogan had not selected a replacement for Hardy. (Ex. 1 at 80)
 

4.      Lack of Objective Procedures for Selecting Members and
Extras to Work in Trade Show/Movie Industries
 

Local 714 has no written procedures for how Local 714
 

company, Local 714 had a collective bargaining agreement with Rosemont Exposition Services. (Ex. 135 at 98)
 

36 Prior to joining Local 714, Hardy was the zamboni driver for the Chicago Blackhawks at the International Amphitheater where Teamsters also worked on trade shows. (Ex. 50 at 3) As a result, Hardy met Michael Hogan, Sr. and became a Local member through him and other Teamsters. (Ex. 49 at 4-5)
 

³⁷ Hardy testified that in 1994 he was paid approximately $120,000 as the chief steward. (Ex. 49 at 18-19)
 

members and extras are referred to work for trade show contractors or for movie production companies. (Ex. 1 at 112; Ex. 165) Moreover, the Local does not have any seniority lists of the Local 714 members or the extras employed in the trade show or movie industries. (Ex. 49 at 13; Ex. 136 at 41, 43; Ex. 165) The documents the chief steward claimed he used to refer members and extras to work for trade shows and movies were two alphabetical lists, one of members in the Local's trade show/movie division and the other of extras in that division. (Ex. 50 at 25-26, 31-32; Exs. 166-67)³⁸ The April 1996 alphabetical list of members contained 246 names and the April 1996 alphabetical list of extras listed 108 individuals. (Exs. 166-67)³⁹ Hardy acknowledged that he kept no documents that reflected who was available to work on any given day. (Ex. 50 at 32) Hardy testified,
 

there are no documents. All that information is within my knowledge. I deal with this every day. I know who's available, who's not available, and every particular nuance or quirk of every member in that division. That's my job.
 

(Ex. 50 at 32)
 

There was no indication on either of the two alphabetical lists of the date each person began working in the Local's trade
 

38 These lists include each listed person's telephone number or beeper number. (Exs. 166-67)
 

39 Other than the alphabetical list of extras, Hardy did not keep any other documents regarding the extras who were available to work. (Ex. 50 at 27)
 

show/movie division. (Ex. 50 at 32)⁴° When questioned regarding whether he kept track of how often each member worked, Hardy testified, "No, . . my responsibility is filling the calls. Where they worked a month ago, off the top of my head I couldn't begin to tell you. I wouldn't have that information." (Ex. 50 at 34)
 

In addition to not maintaining any record of when an individual began working in the trade show/movie industry or how often each person worked, Hardy testified that he did not maintain any documents reflecting the members' and extras' qualifications. (Ex. 50 at 26, 39-41) Rather, Hardy testified that he knew the qualifications of each of the 246 members and 108 extras. (Ex. 50 at 26, 39-41)
 

According to chief steward Hardy, in order to operate various equipment in movie productions, an individual must possess a special drivers license. (Ex. 50 at 39) However, Hardy did not maintain any documents which indicated the types of licenses extras and members possessed. (Ex. 50 at 26, 39-41) In addition, at least some of the transportation equipment the movie production companies used did not require a driver with a specific license. For example, at least twelve Local 714 members testified that they operated equipment on movies and did not possess commercial drivers licenses. (Ex. 75 at 18-24; Ex. 71 at 16-18; Ex. 35 at 11, 13-18; Ex. 80 at 21-31; Ex. 43 at 15-20; Ex. 37 at 16-24; Ex. 108 at 22-
 

⁴⁰ In addition, Hardy testified that he did not maintain any records indicating when an individual began working as an -extra. (Ex. 50 at 84)
 

30; Ex. 7 at 13-15; Ex. 21 at 13-20; Ex. 28 at 17-20; Ex. 69 at 18-21 and Ex. 97 at 10-11)
 

Business agent Robert Hogan, who also was involved in assigning members to work on movie productions, testified that on movie productions individuals who did not have particular licenses or skills were "kind of rotated into the positions that are available." (Ex. 136 at 46) He admitted there were no lists used to determine who would be rotated into a job on a movie. (Ex. 136 at 46-47) In addition, when asked how this rotation system worked, he testified,
 

[w]ell, we just try to keep -- I mean there's nothing written on how we do it, it's just -- you know, there's only so many people that can do it, or so many positions for them. And the majority of the people have that type of driver's license, so [sic] try to rotate them in there.
 

During their sworn examinations, Hardy and William Hogan, Jr. each testified that a seniority system could not be used to refer individuals because there were too many variables involved in the selection of individuals to refer to work. (Ex. 50 at 85-88; Ex. 1 at 111) Hardy listed these variables as including that assignments were at different locations in the Chicago area, certain individuals had strong preferences regarding their work assignments and, in the movie industry, certain licenses were required to drive particular equipment. (Ex. 50 at 85-88)
 

These claims appear pretextual and do not explain the constant flow of Hogan relatives and friends into these jobs. The Local did not maintain any documents which reflected the
 

qualifications, such as particular classes of drivers license or work preferences, of the 354 members and extras in the Local's trade show division. (Ex. 49 at 29 and Ex. 50 at 26)⁴¹ Instead, Hardy testified that all this information for the 354 members and extras was within his personal knowledge. (Ex. 50 at 32)⁴² Indeed, Robert Hogan, the business agent for the trade show/movie division acknowledged the obvious, an individual does not have to have any particular skills in order to work in the Local's trade show division. (Ex. 136 at 41)
 

Even if neutral factors other than seniority did need to be considered in the referral process, the Local did not have any objective guidelines governing how individuals were selected for work referrals. Given the Local's complete discretion in the selection of individuals to work the most lucrative jobs, the nepotism and favoritism rampant in the membership of the Local's
 

trade show/movie division evidences that impermissible considerations and not special skills were used in making referrals.
 

As discussed infra at 114-117, in an apparent reaction to IRB inquiries regarding the trade show/movie division, the Local has claimed that it is currently making changes in this division. For example, according to William Hogan, Jr., the Local is in the
 

41 For example, there was no list of members who preferred to work on trade shows or a list of members who preferred to work on movies. (Ex. 136 at 43-44)
 

42 William Hogan, Jr. testified, "[a] lot of this is in Mike Hardy's head." (Ex. 1 at 112)
 

process of developing lists of individuals with particular qualifications. (Ex. 1 at 112)⁴³ Hardy testified that he was recently asked to document some of what you have in your head, particularly on the movies . . .." (Ex. 50 at 39) This will not remedy that the members in the trade show/movie division, who have the best jobs in the Local, have been selected for decades because of family or social connections."
 

43 Hardy testified that he created a list of members with different licenses and gave it to Robert Hogan three or four months prior to his May 21, 1996 sworn examination. (Ex. 50 at 40) Prior to Hardy creating the list at that time, Hardy testified that there were no such documents. (Ex. 50 at 41)
 

44 These recent Local actions were recommended as a result of a report of Gerry Miller, Esq., whom, as discussed infra at 114-117, the Local retained to conduct an investigation of the trade show/movie division. (Ex. 129) As discussed infra at 114-117, the investigation behind the Miller report began in approximately August 1994 and the report was not issued until May 27, 1996. (Ex. 129; Ex. 304) Miller recommended that,
 

[b]ecause Local 714 may significantly influence the employment and earnings opportunities of members in the referral group, it is important that favoritism, as well as appearance of favoritism, be minimized if not eliminated altogether.
 

*   *   *
 

[t]o the extent possible, referrals should be made based on objective, known, and relevant criteria that are put in writing and posted.
 

(Ex. 129 at 34-35) In addition, Miller recommended that the Local conduct a survey to gather information regarding the job preferences, schedules and qualifications of the trade show/movie division members. (Ex. 129 at 35) In making this recommendation, Miller stated, "[c]hief Steward Mike Hardy appears to be able to keep all this information in his head, but lesser mortals may have to rely on an information database." (Ex. 129 at 35) The depth of the favoritism was not analyzed and how the current unjust membership in the trade show/movie division could be broadened to include members denied opportunities for decades was not addressed.
 

5. The Lack of Objective Procedures for Allowing Individuals to Become Members of the Local's Trade Show/Movie Division
 

In addition to the failure to have any objective procedures for referring members to work, the Local does not have any objective rules governing which individuals will be allowed to become members of the trade show/movie division. William Hogan, Jr. makes the ultimate decision regarding who will be permitted to join the Local's trade show/movie division. (Ex. 1 at 108-09) His son, Robert Hogan, and chief steward Hardy are also involved in such decisions. (Ex. 49 at 17; Ex. 50 at 44-45)
 

In general, according to Hardy and Robert Hogan, in order to become a member of the Local's trade show/movie division, an individual must work as an extra in the division. (Ex. 50 at 43-44; Ex. 136 at 41) There is no set number of hours or a time period an individual must work as an extra before being permitted to become a member. (Ex. 136 at 49-50; Ex. 50 at 43) The only exception to the requirement that an individual must work as an extra before becoming a member in the trade show/movie division appears to be members who had been employed outside the trade show/movie industry and who transferred into the trade show/movie division. According to Hardy, only approximately 10-15% of the Local 714 members in the trade show/movie division became division members after working for a Local 714 employer outside the trade show/movie division. (Ex. 50 at 22) Even that low percentage appears to be inflated. As noted supra at 18, fn. 30, only six of the 136 trade show/movie division members for which information was obtained were members of the
 

Local before beginning to work in the trade show/movie division. (Ex. 5)
 

According to Hardy, the Local limited the number of members permitted to join the Local's trade show/movie division to the approximate number of individuals who are able to support themselves through that work. (Ex. 50 at 46-47) Periodically, William Hogan, Jr., with input from Hardy and Robert Hogan, selected additional persons to join the division. No announcement was made that the Local will be accepting new members in the trade show/movie division. (Ex. 136 at 51)
 

In response to the question how an individual becomes a member of the Local's trade show/movie division, Robert Hogan testified that, "[a]fter working as an extra, they have to ask." (Ex. 136 at 47) This, of course, did not answer the question as to how the determination was made for making the extra a member.
 

Indeed, Local members in the trade show/movie division testified that they were unaware of what criteria was used to determine who would be selected to become members after working as extras. For example, when asked whether he had to meet any specific criteria in order to join the division, Local 714 trade show/movie division member Raymond Cassatta responded, "[n]ot that I know of." (Ex. 23 at 7) Local 714 member Michael Deal, who was a high school friend of Robert Hogan, testified that he became a member in 1986 stating, "I was called down to the office. There was some guys retiring. William, Senior was letting some people in the union and I was one of them." (Ex. 35 at 3-4) When asked how
 

29.
 

an individual is permitted to join Local 714, Local member Joe Polizzi testified, "I don't have any idea how it works." (Ex. 97 at 5)
 

In addition, Local 714 member Dean Polachek ("Polachek") testified that he became a Local 714 member after working as an extra for approximately sixteen years. (Ex. 96 at 3) When asked how he became a Local 714 member, Polachek testified that he wrote a letter to Local 714 President James M. Hogan, which included a statement that he was loyal. (Ex. 96 at 6-7)⁴⁵ When asked why he wrote this letter, Polachek testified, ". you have to ask to get somewhere." (Ex. 96 at 7)⁴⁶ When asked if there were rules governing who was allowed to join the Local 714 trade show/movie division, Polachek testified, "[n]ot that I know of. I'm not privy
 

to that . .." (Ex. 96 at 13) Polachek's experience was distinctly different from that of Hogan family members who became part of the division shortly after high school.
 

When asked about any requirements an individual must meet in order to become a member of the trade show/movie division,
 

45 Polachek testified that he did not retain a copy of this letter. (Ex. 96 at 12) Local 714 President James Hogan testified that he did not recall receiving such a letter from Polachek. (Ex.
 

135 at 64)   In addition, the Local did not have a copy of any
 

letter Polachek wrote. (Ex. 165) However, William Hogan, Jr. testified that he recalled that Polachek told him that he wanted to be considered for membership when Hogan allowed men to join the Local. (Ex. 1 at 109-110)
 

46 Polachek testified that Local 714 member Thomas Kulak "sort of was like my sponsor" and helped Polachek write the letter seeking to join Local 714. (Ex. 96 at 7) Polachek testified that Thomas Kulak suggested that he write the letter to the Local, "[b]ecause I was around so long and I never asked for anything, so this way they know that I wanted a card." (Ex. 96 at 10)
 

Robert Hogan testified, "Well, I mean they have to have had a good record while they were there as an extra, they have to be punctual, be on time, be willing to work the crazy hours, be willing to put up with the different locations at different times and days." (Ex. 136 at 49) Although Hogan claimed these factors were important, no records were maintained documenting these qualities. (Ex. 165) Hardy testified that the factors he considered when participating in the decision to allow individuals to join the trade show/movie division were his personal assessment of "punctuality" and the vague factors of "dependability" and "work ethic". (Ex. 50 at 44) However, Hardy did not keep any record of which individuals possessed any of these qualities. (Ex. 165) It is evident that no guidelines or any objective criteria govern who will be permitted to become a member of the trade show/movie division. (Ex. 1 at 109; Ex. 165)
 

6. Nepotism and Favoritism In the Trade Show/Movie Division
 

a. Background
 

As detailed infra at 51, relatives of William Hogan, Jr. and friends of the Hogan family dominate the authority positions in the Local's trade show/movie division. For example, as detailed infra at 39-43, fifty-six percent of the members who have held authority positions in the trade show industry were relatives or friends of the Hogan family. (Ex. 4) In addition, in the movie industry, approximately seventy-two percent of the members who have held authority positions were relatives or friends of the Hogan
 

31
 

The sworn examinations of 114 of the 258 members on the January 1996 Local 714 trade show/movie division membership list were conducted.⁴⁷ Of these, at least eighteen relatives of William Hogan, Jr. were employed in the Local 714 trade show/movie division. (Ex. 5)⁴⁸ In addition, at least 34 other members in the Local 714 trade show/movie division began to work in the trade show/move industry through connections to the Hogan family. (Ex. 5) As a result, at a minimum, twenty percent of the members in the Local's trade show/movie division obtained their positions through ties to the Hogan family. (Ex. 5)⁴⁹
 

William Hogan, Jr.'s relatives who were employed in the
 

47   The sworn examinations of all the members who held
positions of authority in the trade show/movie division were
 

conducted. These individuals were identified in a September 21, 1995 letter from Local 714's counsel. (Ex. 168) In addition, the sworn examinations of the members who joined the Local's trade show/movie division since January 1993 were also taken.
 

48 This figure included only William Hogan, Jr.'s relatives who were on the January 1996 list of trade show/movie division members who self pay their dues to the Local and work for various trade show contractors. However, other Hogan relatives worked as Local 714 members in the trade show industry such as Patrick E. Hogan, a cousin of William Hogan, Jr., who worked in the warehouse of trade show contractor GES. (Ex. 54 at 3-4) In approximately 1969, when he was nineteen years old, Patrick E. Hogan joined the Local through his father, former Local 714 member Joseph E. Hogan. (Ex. 54 at 3-4, 6; Ex. 300)
 

49 Through the sworn examinations of 114 of the trade show/movie division members and the sworn examinations of the Local's officers, information regarding 136 of the 258 members in the Local's trade show/movie division was obtained. (Ex. 5) The twenty percent figure was based upon information known about 136 of the 258 members of the trade show/movie division. As a result, this is the minimum percentage of members in the trade show/movie division who have ties to the Hogan family.
 

Local's trade show/movie division included his two sons, William and James, and five of his nephews: Michael Hogan, Jr., Michael Vendafreddo, Jr. and Daniel, Kevin and Timothy Maxwell. (Ex. 5) Vendafreddo, Jr., who is also 714 business agent Vendafreddo's son, became a Local 714 member in the trade show/movie division in October 1992 when he was nineteen years old. (Ex. 116 at 3-4, 6; Ex. 133)⁵° Each of these members are also relatives of President Hogan and Recording Secretary and trade show/movie division business agent Hogan.
 

At least eleven other relatives of Secretary-Treasurer Hogan and President Hogan, including a brother-in-law and several cousins, were employed in the Local 714 trade show/movie division. (Ex. 5)⁵¹ For example, Local 714 member James F. Hogan, the Hogans' cousin, joined the Local when he was twenty-three years old. (Ex. 52 at 3, 6, 8; Ex. 133)⁵² As detailed infra at 65-72, James F. Hogan has been a part-owner of companies, including Movies
 

⁵⁰ Michael Vendafreddo, Jr.'s mother, Elizabeth, is William Hogan, Jr.'s sister. (Ex. 116 at 15)
 

51 These relatives included the following: James F. Hogan, Dale Torii, Patrick J. Nallon, Timothy Nallon, Michael W. Nallon, Michael Nallen, Robert Voss, Thomas Hogan, John Nallen, Joseph E. Hogan and Michael White. (Ex. 5)
 

52 James F. Hogan testified that his father, former Local 714 member Joseph E. Hogan, asked him to join Local 714. (Ex. 52 at 11-12) According to Local 714 records, Joseph E. Hogan, an uncle of William Hogan, Jr., became a Local 714 member in April 1967. (Ex. 133) Joseph E. Hogan failed to appear for an IRB sworn examination scheduled for February 22, 1996. On April 1, 1996, the IRB recommended to the Local 714 Executive Board that Joseph E. Hogan be charged with bringing reproach on the IBT by failing to cooperate with the IRB. (Ex. 169) On June 4, 1996, the Local 714 Executive Board issued a decision permanently barring Joseph E. Hogan from the IBT. (Ex. 170)
 

in Motion/SJB Rentals, which lease equipment to movie production companies that employ Local 714 members. (Ex. 52 at 65-66, 82-83) In addition, as detailed infra at 74, James F. Hogan is an owner of Trade Show Rentals, a company which leased forklifts to trade show contractors with collective bargaining agreements with Local 714. (Ex. 52 at 20-21, 23-24)⁵³ Other cousins of William Hogan, Jr. currently employed in the Local's trade show/movie division include Thomas M. Hogan,⁵⁴ Michael White⁵⁵, John and Michael Nallen⁵⁶ and Timothy Nallon.⁵⁷
 

In addition to the relatives of President Hogan and Secretary-Treasurer Hogan employed in the Local's trade show/movie division, at least 34 other members began working in the Local 714
 

53 James F. Hogan testified that his son James F. Hogan, Jr., who is a student, worked as an extra in the trade show industry during the summers. (Ex. 52 at 11)
 

54 Thomas Hogan, another son of former Local 714 member Joseph E. Hogan, began working as a Local 714 member in approximately 1971 when he was eighteen years old. (Ex. 56 at 3-5)
 

55 Local 714 member Michael White's maternal grandmother, Margaret Levin, whose maiden name was Nallon, is the sister of William Hogan Sr.'s wife, Winifred, whose maiden name was also Nallon. (Appendix B) White testified that he obtained employment in the Local's trade show division by speaking to his mother's sister, Delores Voss, who worked in the Local 714 office. (Ex. 120 at 4-5)
 

56 John and Michael Nallen became members in the Local's trade show/movie division in 1985 and 1971 respectively. (Ex. 133) John and Michael Nallen's father, James, is a brother of William Hogan, Sr.'s wife, Winifred, whose maiden name was Nallon. (Ex. 86 at 3-4, 6-10) It appears that James Nallen changed the spelling of his last name from Nallon to Nallen. (Appendix B)
 

57 Local 714 member Timothy Nallon's grandfather is Patrick Nallon, Sr., a brother of Winifred Hogan, whose maiden name was Nallon. (Ex. 87 at 7-8; Appendix B) Timothy Nallon became a Local 714 member in the trade show/movie division in July 1979. (Ex. 133)
 

trade show/movie division through non-union ties to the Hogan family. (Ex. 5) For example, three individuals testified that they began working in the Local's trade show/movie division because they knew William Hogan, III from high school.⁵⁸ In addition, Robert Hogan testified that he arranged for his wife's cousin, Don Peterson, to join the Local's trade show/movie division. (Ex. 136 at 78)
 

That all Local members, not only officers' friends and relatives, should have an equal chance for good work that the Local controls is not an obscure point. Yet for decades, this Local's representatives have trampled over members' rights in the rush to take care of their own. Notably, no recent changes were recommended or undertaken that would address the institutional unfairness the Local created in its discriminatory selection for work in the movies and trade shows.⁵⁹
 

b. Members Who Were Allowed to Join Trade Show/Movie Division after January 1993
 

As detailed supra at 23-27, William Hogan, Jr., his son
 

58 These individuals were Mark Majcher, Frank Mandiziara and Casey Skelton. (Ex. 72 at 3-4; Ex. 73 at 4-5; Ex. 106 at 4)
 

59 According to business agent Robert Hogan, "through all the investigation and all that, we've been advised by counsel to try and put what's in my head and Mike Hardy's head in writing."
 

(Ex. 136 at 44) Robert Hogan testified that the Local began putting such information together sometime in 1996 and is still in the process of compiling the information. (Ex. 136 at 44) For example, Robert Hogan testified that each member in the trade show division was recently asked to document what type of work they wanted to do and what work they did not want to do. (Ex. 136 at 44-45) However, prior to this year, there were no documents which indicated what type of work a member wanted to do and what type of work each member was qualified to do. (Ex. 136 at 45)
 

Robert Hogan and Hardy control which individuals will be allowed to join the Local's trade show/movie division. As detailed supra at 28-31, there are no objective rules governing who will be permitted to become a member of the Local's trade show/movie division.
 

Sworn examinations of the thirty-four men who were permitted to join the Local's trade show/movie division subsequent to January 1993 were conducted.⁶⁰ Of the thirty-four men who were allowed to become members of the Local's trade show/movie division since January 1993, at least ten men began working as extras as a result of their ties to the Hogan family. (Ex. 2)⁶¹ In addition, another seven men began working in the trade show/movie industry through ties to chief steward Hardy or Rosemont chief steward Boscarino. (Ex. 2)⁶² As a result, fifty percent of the members who joined the trade show/movie division after January 1993 began to work in the division as a result of ties to the Hogan family or one of the chief stewards. (Ex. 2)
 

The individuals who were permitted to become Local 714
 

⁶⁰ According to the Local's January 1996 trade show/movie division membership list, thirty-seven members joined the Local after January 1993. (Ex. 133) Three such members, Carl Kachold, John McCarron and Michael Ward were employed permanently at the receiving room at McCormick Place. (Ex. 61 at 4-5; Ex. 82 at 3-5; Ex. 119 at 3-6) Since these three members did not work under the collective bargaining agreements with the various trade show contractors, they have not been included in this analysis.
 

61 These individuals include the following: Mark Majcher, George Jacob, Victor Chin, Patrick McGowean, Darren Reid, Michael P. Hogan, Jr., Joe Polizzi, Dennis McNamara, Harry Gnat and Scott Buckingham. (Ex. 2)
 

⁶² These individuals included the following: George Lemke, Joseph Aulenta, John Wiercinski, Brian Duellman, Terence Murphy, Michael Cairo and Raymond Cassatta. (Ex. 2)
 

members subsequent to January 1993 included Secretary Treasurer Hogan's and President Hogan's nephew, Michael Hogan, Jr.. (Ex. 2) Michael Hogan, Sr. was the Local 714 chief steward in the trade show division in the 1970s. (Ex. 49 at 10-11)⁶³ Michael Hogan, Jr. became a Local 714 member in April 1995 when he was twenty years old. (Ex. 53 at 3-4; Ex. 133) In addition, Local 714 member Darren Reid, the husband of Laura Nallen, was permitted to join the Local's trade show/movie division after January 1993. (Ex. 99 at 3-4, 9-10; Ex. 133) Laura Nallen's uncles are Local 714 members Michael and John Nallen, cousins of William Hogan, Jr. and James M. Hogan. (Ex. 99 at 10; Appendix B)
 

Local 714 member Victor Chin began working as an extra in the trade show/movie division through his parents' ties to William Hogan, Jr.. (Ex. 27 at 3-4) According to Chin, who was permitted to join the Local after January 1993, William Hogan, Jr. frequented his parents' restaurant. His parents asked Hogan if a position was available for their son and he began work. (Ex. 27 at 3-4, 14)
 

Local 714 member Mark Majcher began working in the trade show/movie industry as an extra through his high school friend, William Hogan, III. (Ex. 72 at 3-4) In 1995, Majcher's income from his 714 work was $40,000. (Ex. 72 at 8) In addition, as discussed infra at 71, together with William Hogan, III, Majcher is an owner of H & M Rentals which leases equipment to movie production
 

63 As discussed infra at 70, fn. 130, Michael Hogan, Sr., a brother of William Hogan, Jr., owns at least one company, Show Biz Chicago, which does business with Local 714 employers in the movie industry.
 

37
 

In addition to the men who had ties to the Hogan family, seven other men, who had ties to either Hardy or Boscarino, were also permitted to join the Local's trade show/movie division after January 1993. (Ex. 2) For example, Terrence Murphy, who became a member in approximately June 1994, is Hardy's brother-in-law. (Ex. 85 at 3-4, 12-13) In 1995, Murphy was paid $50,000 for his work through Local 714. (Ex. 85 at 7) In addition, Local 714 member Michael Cairo began working in the trade show/movie division through his father's connection to Hardy. (Ex. 19 at 3-4)^m
 

Of the remaining seventeen individuals who joined the Local after January 1993, one member, Andres Ruiz, Jr., was a friend of Local 714 business agent Genaro Rodriguez. (Ex. 2; Ex. 102 at 3-4) Another member, Rocco D'Ambrosio, failed to appear for his IRB sworn examinations. The IRB recommended that the Local 714 Executive Board charge him with failing to cooperate with the IRB. (Ex. 180) On July 1, 1996 the Local 714 Executive Board permanently barred D'Ambrosio from the IBT. (Ex. 311)
 

Five additional men began working in the trade show/movie division through a relative who already worked in the division.
 

^m Michael Cairo's father, James Cairo, worked in the loan department of Commercial National Bank located in Berwyn, Illinois. (Ex. 19 at 4, 12) Local 714 has an account at this bank and Joanne Schumacher, an employee in the Local 714 office, worked at this bank prior to her employment in the Local 714 office. (Ex. 131; Ex. 135 at 16-17)
 

c.   Local 714 Members Who Have Been Stewards in the Trade Show Industry
 

a steward to a particular show.⁶⁹ The steward is responsible for supervising the members on that show. (Ex. 52 at 15-16) Of the thirty individuals who have held positions of authority in the trade show division, seventeen, or more than half, began working in the trade show industry through connections to the Hogan family.
 

(Ex. ₄₎70
 

Six of the thirty members who have held positions of authority in the trade show industry are relatives of Secretary-Treasurer Hogan and President Hogan. (Ex. 4) This figure includes William Hogan, Jr.'s son, William Hogan, III, who as discussed infra at 45, also held authority positions in the movie industry. (Ex. 57 at 14; Ex. 168) Their other relatives who have been stewards in the trade show industry include their two nephews, Daniel and Kevin Maxwell, their brother-in-law, Dale Torii, and their cousins, Michael W. and Patrick J. Nallon. (Ex. 4)
 

Their nephew, Daniel Maxwell, became a Local 714 member in 1982 when he was nineteen years old. (Ex. 78 at 4-5)⁷¹ Daniel
 

69 Under the current trade show collective bargaining agreements, stewards are paid $1.55 more per hour than the forklift drivers and freight handlers. (Ex. 155 at 14) Some of the members who were trade show stewards also held positions of authority in the movie industry. (Ex. 168)
 

⁷⁰ All but one of the thirty members who have been stewards in the trade show/movie division were not Local 714 members prior to beginning to work in the trade. show/movie division. (Ex. 4) Only John A. Smith was a Local 714 member prior to beginning to work in the Local's trade show/movie division. (Ex. 4; Ex. 110 at 4) Smith was the Local 714 shop steward at Stainless Processing and when the company went out of business, he began to work in the Local's trade show/movie division. (Ex. 110 at 3-5)
 

71 Daniel Maxwell's mother, Mary Jane Maxwell, and William Hogan, Jr. are sister and brother. (Ex. 78 at 4; Appendix A)
 

40
 

Maxwell testified that he was paid $70,000 in 1995 for his Local 714 work. (Ex. 78 at 12) Kevin Maxwell, his brother, joined Local 714 in 1983 when he was nineteen years old. (Ex. 79 at 3-5)⁷² Kevin Maxwell testified that he was paid $60,000 in 1995 for his Local 714 work. (Ex. 79 at 12-13)
 

Trade show steward Patrick Nallon, the Hogans' cousin, became a Local 714 member in 1976 when he was nineteen years old. (Ex. 86 at 3-5; Ex. 133)⁷³ He testified that he was paid $90,000 in 1995 for his Local 714 work. (Ex. 86 at 10-11) During his May 29, 1996 sworn examination, Secretary-Treasurer Hogan testified that he was considering appointing this cousin to replace Hardy as the chief steward at McCormick Place. (Ex. 1 at 80)
 

Michael W. Nallon, another cousin of the Hogans and a brother of Patrick, has also worked as a steward in the trade show industry. (Ex. 168) Michael Nallon became a Local 714 member in the trade show/movie division in April 1986 when he was twenty years old. (Ex. 133; Ex. 87 at 3-4)
 

Dale Torii, the Hogans' brother-in-law, has also worked as a Local 714 steward in the trade show industry. (Ex. 168)⁷⁴ Torii testified that he was paid $50,000 in 1995 for his Local 714
 

72 Kevin Maxwell began working in the trade show industry while in high school. (Ex. 79 at 3-4)
 

73 Patrick Nallon's grandfather, Patrick Nallon, is a brother of Winifred Hogan, the Hogans' mother. (Ex. 86 at 6; Appendix B)
 

74 Torii's wife, Winifred, is the Hogans' sister. (Ex. 115 at 7, 24; Appendix A)
 

work. (Ex. 115 at 27)⁷⁵
 

In addition to the six relatives of the Hogan Executive Board members who have been stewards in the trade show industry, eleven members who worked as stewards began working in the trade show division through ties to the Hogan family. (Ex. 4)⁷⁶ For example, the former Rosemont chief steward, Nick Boscarino, joined Local 714 through his ties to the Hogans' brother, Michael Hogan, Sr.. (Ex. 13 at 14) In addition, John Schaul, who has worked as a steward in the trade show industry, is the brother-in-law of James F. Hogan, a cousin of the Hogans. (Ex. 103 at 4)⁷⁷ Local 714 member Patrick Lynn testified that he joined Local 714 through the Hogans' brother-in-law, Dale Torii. (Ex. 70 at 4)⁷⁸
 

In addition to the seventeen relatives and friends of William Hogan, Jr. working as stewards in the trade show industry,
 

75 As discussed supra at 15-16, Torii is an owner of Exhibition Maintenance which cleans the Local 714 offices. (Ex. 115 at 6-8) In addition, as discussed infra at 73, Torii's company Exhibition Maintenance does business with J&J, a trade show contractor which has a collective bargaining agreement with Local 714. (Ex. 115 at 16-17)
 

76 These eleven individuals are: Nick Boscarino, Patrick Lynn, Michael Hardy, Thaddeus Larkowski, John McAuliffe, Tom Rosen, George DiLeonardi, Michael Casey, James Lonergan, Michael Bremer and John Schaul. (Ex. 4)
 

77 John Schaul testified that he began working in the trade show/movie industry in 1976 through his brother-in-law, Local 714 member James F. Hogan. (Ex. 103 at 3-6) Schaul testified that in 1995 he was paid $54,000 for his work through Local 714. (Ex. 103 at 19)
 

78 Patrick Lynn has been a member of Local's trade show/movie division since 1981. (Ex. 70 at 3-4) His brother, Jerold Lynn, is also a member of the trade show/movie division. (Ex. 70 at 6; Ex. 133) Patrick Lynn testified that he was paid between $50,000 and $70,000 in 1995 for his Local 714 work. (Ex. 70 at 12)
 

four of the remaining thirteen members who held authority positions began working in the trade show/movie division through ties either to chief steward Hardy or to Rosemont chief steward Boscarino. (Ex. 4)⁷⁹ For example, Hardy's brother, John, worked as a steward in the Local's trade show division. In 1995 he was paid $80,000 for his Local 714 work. (Ex. 48 at 7, 13, 25)
 

Furthermore, two sons of former Local 714 officer Martin Oppenhauser, Sr., Martin Oppenhauser, Jr. and Kenneth Oppenhauser, have been stewards in the trade show division. (Ex. 91 at 4, 11; Ex. 90 at 4-5, 7) Oppenhauser, Sr. was a Local 714 officer from at least 1975 to 1984. (Ex. 131) Thus, of the thirty members who have held authority positions in the trade show industry, only seven have not been identified as being relatives or friends of the Hogans, other Local 714 officers or the chief stewards. (Ex. 4)
 

d.   Local   714   Members   in   Positions   of Authority in the Movie Industry
 

There are twenty-two Local 714 members who have held authority positions in the movie industry as transportation coordinators, movie captains or co-captains. (Ex. 168)8⁰ Approximately seventy-two percent of the twenty-two members who have held these positions in the movie industry began working in
 

79 The members who were in this group were the following: Mike Hardy's brother, John Hardy; Boscarino's step-brother, Michael Hansen; Boscarino's brother-in-law Bruce Talaber and John Maioni. (Ex. 4)
 

⁸⁰ Some of the members who held positions of authority in the movie industry also held authority positions in the trade show industry.
 

the trade show/movie industries through ties to the Hogan family. (Ex. 3)⁸¹
 

i.   Transportation Coordinators
 

Of the twenty-two individuals who have held positions of authority in the movie industry, six have worked as transportation coordinators. (Ex. 168)⁸² Currently the six Local 714 members who work as transportation coordinators are: William Hogan, III, Richard DeAngelo, Thaddeus Larkowski, George DiLeonardi, John McAuliffe and Armand Paoletti. (Ex. 168; Ex. 136 at 77)⁸³ Each of these members began working in the movie and trade show industries through connections to the Hogan family. (Ex. 3)
 

The duties of the transportation coordinator included running the movie production's transportation department, assigning drivers, and obtaining necessary equipment. (Ex. 57 at 14-15; Ex. 63 at 13; Ex. 81 at 9-10; Ex. 92 at 9-10) The transportation coordinator also may request that certain Local 714 members work on
 

a movie production. (Ex. 33 at 24-25) In addition, the transportation coordinator is responsible for developing the budget for the transportation department. (Ex. 57 at 14-15; Ex. 38 at 16-
 

81 The average salary for the Local 714 members in authority positions in the movie industry was approximately $58,000. (Ex. 179) Local 714 member Michael Deal testified that for working on a movie in 1995, he was paid $1,950 per week as a movie co-captain. (Ex. 35 at 13-14)
 

82 Each of the transportation coordinators have also worked as movie captains or co-captains. (Ex. 168)
 

83 Prior to being employed at Local 714 as a business agent, Robert Hogan, a son of William Hogan, Jr., was a transportation coordinator. (Ex. 136 at 87)
 

17)⁸⁴ The practice is for the transportation coordinator to negotiate his own salary, at either an hourly or flat rate, with the movie production companies. (Ex. 63 at 11; Ex. 38 at 18; Ex. 34 at 54-55) Transportation coordinator DeAngelo testified that the last flat rate he was paid was between $2,300 and $2,700 per week. (Ex. 34 at 57)⁸⁵
 

William Hogan, III, the son of Secretary-Treasurer Hogan, has been a transportation coordinator in charge of transportation departments for movie productions since 1992. (Ex. 57 at 4, 14, 15)⁸⁶ He joined Local 714 in 1982 when he was approximately nineteen years old. (Ex. 57 at 3-4) According to Hogan, III, his 1995 income from Local 714 work was $80,000. (Ex. 57 at 12) As discussed infra at 65-72, he also is an owner of at least three companies, Movies in Motion/SJB Rentals, H&M Rentals and Art's RV Sewer and Septic, which did business with movie production companies that employ Local 714 members. (Ex. 57 at 16-19, 22-23; Ex. 72 at 13-16) As a transportation coordinator, he arranged for movie production companies to do business with the companies of
 

84 According to transportation coordinator Armand Paoletti, the budget for the transportation department in a full-length feature film is between $750,000 and $1 million. (Ex. 129, Paoletti statement at 1-2)
 

85 DeAngelo also testified that when he works as a transportation coordinator he leases his 1991 Buick station wagon to movie production companies for approximately $225 per week. (Ex. 34 at 61-62)
 

86 According to William Hogan, III, he first worked as a transportation coordinator in 1992, when a transportation coordinator left in the middle of the job and the movie production company promoted Hogan, who was the movie captain, to the position of transportation coordinator. (Ex. 57 at 14)
 

45
 

which he is a part owner. (Ex. 57 at 14-16, 19-20)
 

Transportation coordinator Richard DeAngelo ("DeAngelo") became a Local 714 member in approximately 1978 through Michael Hogan and former transportation coordinator Jim Riccio. (Ex. 33 at 3-4, 8; Ex. 32 at 10)⁸⁷ For approximately the past fifteen years, he has worked as a transportation coordinator on movie productions. (Ex. 34 at 58) As detailed infra at 86-89, DeAngelo is an owner of Premier Fuel and Cartage along with William Daddano, III and the ten year old daughter of former Rosemont steward Boscarino. (Ex. 33 at 44; Ex. 13 at 99)" When DeAngelo worked as a transportation coordinator, he arranged for Premier to provide gas to the movie production companies. (Ex. 34 at 20)⁸⁹ When he worked on movie productions, DeAngelo also leased his pickup truck to the movie production companies for approximately $350 per week. (Ex. 34 at 60-61)
 

Transportation coordinator Thaddeus Larkowski joined Local 714 in 1985 as a result of his high school friendship with Robert Hogan and became a transportation coordinator in approximately 1992. (Ex. 63 at 3-4; 8-9; Ex. 133) In 1995 he was paid $80,000 for his Local 714 work. (Ex. 63 at 8)
 

Transportation coordinator John McAuliffe became a Local
 

87 In the 1960s, DeAngelo was a Chicago police officer. According to DeAngelo, he left the police force after being accused of taking a bribe. (Ex. 33 at 16)
 

88 Premier has a collective bargaining agreement with Local 714. (Ex. 33 at 38)
 

89 As detailed infra at 86-89, Premier also provides fuel for the major trade show contractors.
 

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714 member in approximately 1968. McAuliffe's father grew up with William Hogan, Sr., the Local's former principal officer. (Ex. 81 at 3-4) After McAuliffe's father introduced his son to Hogan, Sr., McAuliffe was permitted to join the Local 714 trade show/movie division. (Ex. 81 at 3-4)⁹⁰ McAuliffe testified that he became a transportation coordinator in 1986 after chief steward Hardy sent him for an interview for that position. (Ex. 81 at 9) McAuliffe testified that his 1995 income from Local 714 work was $65,000. (Ex. 81 at 8)
 

Armand Paoletti, who has worked as a transportation coordinator, became a Local 714 member in September 1979. (Ex. 92 at 3) His uncle, Paul Paoletti, owned a clothes store where William Hogan, Jr. shopped. (Ex. 92 at 4-5) As a result of his uncle's connection to Hogan, Jr., Armand Paoletti began to work in the Local 714 trade show/movie division. (Ex. 92 at 4) Paoletti first worked as a transportation coordinator in 1988. He obtained this position after speaking with William Hogan, Jr.. (Ex. 92 at 8-9) His 1995 income from his Local 714 work was $70,000. (Ex. 92 at
 

₈)91
 

Transportation coordinator George DiLeonardi became a Local 714 member in June 1980. (Ex. 38 at 4) In 1978 or 1979 he pled guilty to mail fraud and was sentenced to probation for making payments to Chicago officials while he was employed at Motorola.
 

90 McAuliffe's brother, Dennis McAuliffe, is a member of the Local 714 trade show/movie division. (Ex. 81 at 6)
 

91 Paoletti's brother, Joseph Paoletti, is also a member of the Local 714 trade show/movie division. (Ex. 93 at 3-4)
 

(Ex. 38 at 5) After this, DiLeonardi's brother introduced him to both William Hogan, Sr. and Jr.. As a result, like other felons, he began working in the Local 714 trade show/movie division. (Ex. 38 at 3-6)⁹² DiLeonardi first became a transportation coordinator in the early to mid-1980's through Hardy. (Ex. 38 at 14-15) According to DiLeonardi, in 1995 his income from his work through Local 714 was approximately $90,000. (Ex. 38 at 10)
 

ii. Movie Captains and Co-Captains
 

A movie captain's duties included handling the transportation needs of the movie set, assigning Local 714 members to drive particular vehicles and keeping the equipment operational. (Ex. 51 at 9; Ex. 26 at 13; Ex. 63 at 13; Ex. 78 at 15) There are twenty-two members who have worked as movie captains or cocaptains.⁹³ Of these twenty-two members, six relatives of William Hogan, Jr., two sons, three nephews and a cousin, have held positions of authority in the movie industry. (Ex. 3)⁹⁴   In
 

92 For example, Local 714 trade show/movie division member Thomas O'Malley was a former employer Trustee on the Central States Pension Fund and was convicted of conspiracy to bribe United States Senator Cannon. (Ex. 81 at 7-8) O'Malley was arrested with Roy Williams, Joseph Lombardo, Allen Dorfman and others. (Ex. 81 at 7) As a result of this conviction, O'Malley served three years in federal prison. (Ex. 81 at 7) In addition, as discussed infra at 102-105, former Local 714 member Charles Miller was permitted to join the Local's trade show/movie division while his criminal appeal was pending and he remained a member while incarcerated.
 

93 This figure included the six transportation coordinators who have also worked as movie captains or co-captains.
 

94 The relatives of William Hogan, Jr. who have held positions of authority in the movie industry include the following: William Hogan, III, James A. Hogan, Daniel Maxwell, Kevin Maxwell, Tim
 

addition, ten other members who have held authority positions in the movie industry testified that they began working in the Local's trade show/movie division through connections to the Hogan family.
 

(Ex. 3)⁹⁵
 

James A. Hogan, another son of principal officer Hogan, has worked as a movie captain. (Ex. 168) He became a Local 714 member in approximately August 1987 when he was eighteen years old. (Ex. 51 at 3-4; Ex. 133) In 1995 he was paid $65,000 for his work as a Local 714 member. (Ex. 51 at 8) As detailed infra at 65-72, he has been an officer of at least three companies, Movies in Motion/SJB Rentals, H & M Rentals and Art's RV Sewer and Septic, which do business with movie production companies that employ Local 714 members. (Ex. 51 at 10-12, 16)
 

William Hogan, Jr.'s nephew, Timothy Maxwell, has also worked as either a movie captain or co-captain. (Ex. 80 at 21-22) He was paid $50,000 in 1995 for his Local 714 work. (Ex. 80 at 20) As discussed infra at 72-73, he is one of the owners of ChemDry MaxWash which cleans movie trailers and does business with companies that employ Local 714 members. (Ex. 80 at 31-33)
 

William Hogan, Jr.'s cousin, Robert Voss, also worked as a movie captain or co-captain. (Ex. 168)   In 1995 he was paid
 

Maxwell and Robert Voss. (Ex. 3)
 

9' These individuals included Richard DeAngelo, Patrick Lynn, Thaddeus Larkowski, John McAuliffe, Armand Paoletti, George DiLeonardi, Sal Cangelosi, Michael Deal, Todd Dickison and Charles Burandt. (Ex. 3)
 

approximately $50,000 for his Local 714 work. (Ex. 118 at 12)"
 

In addition to Secretary-Treasurer Hogan's and President Hogan's six relatives who have held positions of authority in the movie industry, ten other members who have ties to the Hogan family also have held positions of authority. (Ex. 3) For example, after graduating from high school in approximately 1985, Todd Dickison, who has worked as a movie co-captain, began working in the trade show and movie industries through his high school friend, Robert Hogan. (Ex. 37 at 3-4, 21) In 1995, his pay for eight or nine months work as a Local 714 member was $42,000. (Ex. 37 at 16)
 

Michael Deal, another high school friend of Robert Hogan, also worked in a position of authority in the movie industry. (Ex. 35 at 4, 13; Ex. 168) Deal became a member of the Local 714 trade show/movie division in 1986 after working as an extra for a year and a half. (Ex. 35 at 3) He began as an extra after asking his high school friend Robert Hogan for work. (Ex. 35 at 4) In 1995 Deal testified that he was paid $45,000 for his Local 714 work. (Ex. 35 at 27)
 

Salvatore Cangelosi, a high school friend of William Hogan, Jr., has worked as a movie captain. (Ex. 21 at 4, 17)
 

% Local 714 member Robert Voss testified that he joined Local 714 in the late 1970's, when he was approximately twenty years old, after William Hogan, Sr. told him that Local 714 employer Ekco Housewares was hiring. According to Voss, in or about 1978, he left Ekco Housewares and began working as a Local 714 member in the trade show/movie industry. (Ex. 118 at 3-8) As discussed supra at 15, Robert Voss's mother, Delores Voss, was a secretary employed at Local 714 and his father, George Voss, worked from 1980 to approximately 1989 in the trade show/movie division. (Ex. 118 at 6-7)
 

Cangelosi became a member of Local 714's trade show/movie division in 1985. (Ex. 21 at 3, 8) Cangelosi's 1995 income for his Local 714 work was approximately $40,000. (Ex. 21 at 13)
 

In sum, of the twenty-two members who held authority positions in the movie industry, seventy-two percent began working in the Local's trade show/movie division as a result of ties to the Hogan family. (Ex. 3)
 

7.   Boscarino's Position as Chief Steward at the Rosemont Exposition Center
 

Nick Boscarino ("Boscarino") joined Local 714 in 1971. (Ex. 13 at 4)⁹⁷ In 1978, William Hogan, Sr. appointed Boscarino the chief steward for Rosemont Exposition Services ("Rosemont"). (Ex. 13 at 18) From 1978 when he was appointed chief steward for Rosemont until his resignation this May, Boscarino worked at the Rosemont Exposition Center. (Ex. 13 at 19) According to Boscarino, in 1995 he was paid approximately $100,000 for his work as chief steward for Rosemont. (Ex. 13 at 22)⁹⁸
 

97 All of his work as a Local 714 member had been in the Local's trade show/movie division. (Ex. 13 at 21) Prior to joining Local 714, Boscarino was employed as a Teamster through another Local in Chicago for approximately one year as a helper on a truck. (Ex. 13 at 4-5) From 1971 through 1974, Boscarino worked as a Local 714 member for various trade show contractors at McCormick Place including the following Local 714 employers: Freeman, United Expositions and J&J. From 1974 until 1978, when Hogan, Sr. made him Rosemont steward, he drove a truck for United Expositions. (Ex. 13 at 21)
 

98 During his January 24, 1996 sworn examination, Boscarino testified he never received money from Local 714 except for a $200 Christmas gift. (Ex. 13 at 16, 18) However, Local 714 records reflected that between September 1986 and August 1988, Boscarino received $100 each month from Local 714. (Ex. 188) It is unclear
 

Prior to joining Local 714, Boscarino knew William Hogan, Sr., and his sons, William, Michael and James. (Ex. 13 at 13-14) Boscarino went to high school with Michael Hogan. (Ex. 13 at 14) Boscarino, who has known the Hogan family since he was 12 years old, described himself as a personal friend of Michael Hogan, Sr.. (Ex. 13 at 14)⁹⁹ In addition, current Secretary-Treasurer Hogan testified that he has had a social relationship with Boscarino. (Ex. 1 at 149)^m
 

As the chief steward for Rosemont, Boscarino reported to Hardy, the chief steward for the union's trade show/movie division. (Ex. 13 at 22-23)¹⁰¹ Boscarino testified that he did not report to anyone else. (Ex. 13 at 23)¹⁰² Boscarino testified that he "supervise[s], for Rosemont Expo Services, all the guys in our
 

what these payments were for. (Ex. 13 at 18-19; Ex. 1 at 81-82)
 

99 While the Rosemont chief steward, Boscarino was involved in a business, Show Services, Inc., with Michael Hogan, Sr.. (Ex. 186) Show Services, Inc. was incorporated on June 30, 1982 with Boscarino as one of the officers. (Ex. 186) On the annual reports Show Services filed in 1984 and 1985, Michael Hogan, Sr. and Boscarino were listed as the officers. (Ex. 186) On the annual report Show Services filed in 1986, Boscarino was no longer listed as an officer and on November 1, 1990, Show Services was dissolved for failure to file an annual report and pay an annual franchise tax. (Exs. 186 and 187)
 

¹⁰⁰ For example, he testified that Boscarino attended his wedding and he "probably" attended Boscarino's wedding. (Ex. 1 at 149)
 

101 The Local 714 business agent for Rosemont is Local 714 Recording Secretary Robert Hogan. (Ex. 136 at 8)
 

102 As the chief steward, Boscarino also supervised any Local 714 stewards who worked at the Rosemont Exposition Center. (Ex. 13 at 23)
 

local." (Ex. 13 at 17)¹⁰³ He further testified that if a Local 714 member had a problem with Rosemont, Boscarino would be the first person the member would go to from the Local. (Ex. 13 at 17) However, Boscarino testified that he did not file grievances on behalf of Local 714 members and he did not know who had that responsibility. (Ex. 13 at 17-18) According to Secretary-Treasurer Hogan, Local 714 never has filed a grievance against Rosemont. (Ex. 1 at 62)
 

Boscarino testified that when a trade show came to the Rosemont Exposition Center, someone from Rosemont informed him how many individuals were needed to work that show. (Ex. 13 at 30; Ex. 50 at 29)¹04 Boscarino and Hardy selected who would work. (Ex. 13 at 24)¹⁰⁵ The Local did not have any seniority lists for the trade show/movie division or for Rosemont. (Ex. 13 at 24; Ex. 165) There were no objective grounds for making the referral decision and as described supra at 26-50, impermissible factors were used.
 

103 Boscarino testified that he worked for Rosemont every day and had an office provided by the company. (Ex. 13 at 28, 30-31) As the chief steward at the Rosemont Exposition Center, Boscarino did not unload trucks, rather, he supervised other Teamsters. (Ex. 13 at 111-112)
 

¹⁰⁴ Boscarino testified that depending upon the trade show, he worked with one of the following account executives employed at Rosemont: David Houston, Grant Bailey, Ray Talaber or Bob Langer. (Ex. 13 at 27) Houston and Bailey are also officers of Rosemont. (Ex. 202)
 

105 According to Local 714 member Oscar Glass, who is Boscarino's father-in-law, Local 714 members were hired to work at the Rosemont Exposition Center through Boscarino. (Ex. 45 at 4, 8-9)
 

8.   Boscarino Selected his Relatives and Friends for Work for Rosemont Exposition Services
 

At least eleven relatives and friends of former Rosemont chief steward Boscarino are Local 714 members working for Rosemont. a.   Boscarino's Relatives
 

At least six of Boscarino's relatives are Local 714 members employed in the Local's trade show/movie division. (Ex. 5) They worked primarily for Rosemont. (Ex. 45 at 6; Ex. 113 at 21-22; Ex. 9 at 13) Three of the five Local 714 members chief steward Hardy identified, in addition to Boscarino, as having supervisory responsibility at the Rosemont Exposition Center were Boscarino's relatives. (Ex. 50 at 68)¹⁰⁶ None of Boscarino's relatives were Local 714 members prior to starting work in the Local's trade show/movie division.
 

Local 714 member Oscar Glass, who worked in a supervisory capacity at Rosemont, is Boscarino's father-in-law. (Ex. 45 at 4; Ex. 13 at 10; Ex. 50 at 68) According to Boscarino, he and Glass were the only two Teamsters who worked every day for Rosemont. (Ex. 13 at 30-31)¹⁰⁷
 

106 In addition to Boscarino, chief steward Hardy identified Oscar Glass, Michael Hansen, Bruce Talaber, Ronald Comiano and Frank DeFeo as Local 714 members having supervisory responsibility at the Rosemont Exposition Center. (Ex. 50 at 68) Glass, Hansen and Talaber are Boscarino's relatives. (Ex. 13 at 8-12; Ex. 113 at 3-5)
 

107 However, Ronald Comiano, the foreman in the furniture department for Rosemont, testified that he worked each day for Rosemont. (Ex. 30 at 15) Comiano is an owner of Table Rentals and Accessories, a company which rents tables in the trade show industry. (Ex. 30 at 51-61) Table Rental and Accessories was incorporated on March 12, 1992. (Ex. 306)
 

Glass testified he became a Local 714 member in the late 1970's through Boscarino and Michael Hogan, Sr.. (Ex. 45 at 3-4)¹⁰⁸ Boscarino appointed Glass the dock foreman for Rosemont approximately twelve years ago. (Ex. 45 at 6-7) Glass testified that he was paid $83,000 in 1995. (Ex. 45 at 8) In addition, as discussed infra at 82-85, Glass, along with Boscarino, is an officer of OG Services, a company which leased forklifts to Rosemont, the Local 714 employer. (Ex. 45 at 11-12)
 

Local member Michael Hansen is Boscarino's step brother. (Ex. 47 at 7)¹⁰⁹ Hansen, who joined Local 714 in 1974 when he was approximately twenty-two years old, worked for Rosemont. (Ex. 13 at 8; Ex. 47 at 3-5) Hansen has worked as a steward in the trade show industry. (Ex. 168) Hardy identified Hansen as one of the members with supervisory responsibility at the Rosemont Exposition Center. (Ex. 50 at 68) According to Hansen, in 1995 he was paid approximately $75,000 for his work as a Local 714 member. (Ex. 47 at 9)
 

Local 714 member Michael Ayache is married to Boscarino's first cousin, Marie Ayache. (Ex. 9 at 4-5)^u° Boscarino assisted
 

108 All of Glass' work as a Local 714 member has been in the trade show/movie division. (Ex. 45 at 3, 6)
 

109 Hansen testified that he may have gotten his job through Boscarino. (Ex. 47 at 4, 9)
 

110 Marie Ayache, Boscarino's cousin, is Secretary/Director of O & M Forklift Services ("O & M") and runs the daily operation of that company. (Ex. 203; Ex. 45 at 22-23) Glass, who is an owner of O & M, described that company as "a payroll company for the mechanics" who worked for OG Services, which, as discussed infra at 82-85, is a forklift company Boscarino owns. (Ex. 45 at 22)
 

Michael Ayache to join Local 714 and get work at Rosemont. (Ex. 13 at 11)¹¹¹ Ayache was paid $50,000 for his work as a Local 714 member in 1995. (Ex. 9 at 10)
 

Bruce Talaber, Boscarino's brother-in-law, became a member of Local 714's trade show division in April 1977. (Ex. 113 at 3-5)¹¹² According to Talaber, Boscarino assigned him specific jobs at the Rosemont Exposition Center where Talaber primarily worked. (Ex. 113 at 21-24) Talaber worked as a steward in the trade show industry. (Ex. 168) Hardy identified Talaber as one of the members with supervisory responsibility at the Rosemont Exposition Center. (Ex. 50 at 68) He was paid $54,000 for his Local 714 work in 1995. (Ex. 113 at 25)
 

Boscarino's uncle and cousin, John Wiercinski and Walter Wiercinski, were both Local members employed in the Local's trade show division. (Ex. 13 at 10, 12) Walter joined Local 714 in October 1979 and John joined in June 1995. (Ex. 133)
 

b.   Boscarino's Friends
 

In addition to six Boscarino relatives being Local 714 trade show division members, at least five other Local 714 trade show members testified that they began working trade shows as a result of their prior non-union connections to Boscarino.
 

111 Prior to joining Local 714 in approximately 1987, Ayache worked for Boscarino's company, Bomark Cleaning Services, as a maintenance worker at the Rosemont Exposition Center. (Ex. 9 at 4; Ex. 133)
 

112 Bruce Talaber is also a third cousin of Ray Talaber, an account executive at Rosemont. (Ex. 45 at 16)
 

For example, Local 714 member Louis Lomeli obtained work in trade shows through Boscarino. (Ex. 68 at 4-5) Between 1986 and 1992, Lomeli was a professional boxer and Battle Promotions ("Battle") managed him. (Ex. 68 at 4-5) Boscarino was an officer of Battle, a company that promoted prize fights. (Ex. 13 at 113-116; Ex. 68 at 4-5; Ex. 204) Lomeli became a Local 714 member in July 1988 after John Daddano, another Battle officer, contacted Boscarino to get Lomeli a job. (Ex. 68 at 4; Ex. 133)
 

In addition, Local 714 trade show/movie division member Joseph Aulenta testified he became a Local 714 member in 1994 through his father's ties to Boscarino for whom Aulenta's father is an insurance agent. (Ex. 8 at 3-7) Local 714 trade show/movie division member George Lemke testified that he became a Local member in 1994 after doing non-union maintenance work for Boscarino's company, Bomark Cleaning Services at the Rosemont Exposition Center. (Ex. 65 at 3-4) As a Local 714 member he primarily worked at Rosemont and in 1995 was paid approximately $37,000. (Ex. 65 at 6, 16)
 

Boscarino's other friends who began to work in the Local's trade show/movie division included Anthony Lizio and Joseph Bruno. After Anthony Lizio closed a delicatessen he owned that had delivered food to the Rosemont Exposition Center, Lizio joined the Local through Boscarino. (Ex. 67 at 3-6)¹¹³ Lizio worked primarily at the Rosemont Exposition Center and in 1995 made $45,000. (Ex. 67
 

at 11) Before Joseph Bruno became a Local member in 1983, he worked as a milk truck driver and was a member of IBT Local 753. (Ex. 15 at 3, 4) He joined Local 714 through Boscarino whom he met at a restaurant they both frequented. (Ex. 15 at 3-4) Bruno worked for Rosemont loading and unloading trucks and was paid approximately $31,000 in 1995. (Ex. 15 at 6)
 

9.   Trade Show Contract Negotiations
 

The procedures for negotiating the Local's collective bargaining agreements in the trade show industry differed from the manner in which other Local contracts were negotiated. In contrast to the practice in the majority of the Local's collective bargaining negotiations (Ex. 138 at 58-61; Ex. 1 at 24; Ex. 136 at 72), no committee of members participated in the collective bargaining negotiations in the trade show industry. (Ex. 136 at 70; Ex. 1 at 24) In addition, although other Local contracts were generally approved through a secret ballot vote, there were no secret ballot votes on tentative trade show contracts. (Ex. 1 at 24-27; Ex. 136 at 71-72) Given the undisclosed business dealings between the stewards and relatives of Executive Board members with these employers as discussed at infra at 63-96, the absence of these standard practices is disturbing. The difference in practices is also further evidence that the trade show division was run as a Hogan family fiefdom within the Local.
 

On behalf of Local 714, Secretary-Treasurer Hogan, his son, Robert Hogan and Hardy participated in the last collective
 

bargaining negotiations with the trade show contractors. (Ex. 49 at 19-20; Ex. 1 at 21)¹" Robert Hogan testified that after a tentative agreement had been negotiated with the trade show contractors, a meeting was held to explain to the members what was negotiated. (Ex. 136 at 70-71) However, there were no notices for such meetings. (Ex. 136 at 71; Ex. 287) Rather, chief steward Hardy told the members about the meetings. (Ex. 136 at 71) No minutes or notes were kept of such meetings. (Ex. 136 at 71; Ex. 301) These were not contract approval meetings."⁵ Robert Hogan admitted that usually outside the trade show industry, secret ballot votes were taken on the collective bargaining agreements. (Ex. 136 at 72)¹¹⁶ In contrast, in the twenty-eight years that Secretary-Treasurer Hogan has been an officer of the Local, there have been no secret ballot votes on any tentative collective bargaining agreement the Local negotiated with the trade show
 

114 Although chief steward Hardy participated in the contract negotiations, during his January 1996 sworn examination, Hardy testified that he had not seen the Local 714 collective bargaining agreements with trade show contractors Freeman or GES. (Ex. 49 at 23, 45-46) Given the business dealings among Hogan family members and employers detailed infra at 63-74, the secrecy of the negotiations and contracts is troubling.
 

115 When asked whether contract ratification meetings were held for the trade show division contracts, Secretary-Treasurer Hogan admitted, "not in the normal sense, no." (Ex. 1 at 24) According to him, "[n]ormally if it is a meeting we get round [sic] of applause, hand shakes, thank yous. There has never been a problem where they [the members] say we want a secret ballot." (Ex. 1 at 25)
 

116 If Robert Hogan took a secret ballot vote, he would retain the tally sheet for the period of the contract. However, if no secret ballot vote was taken he would not retain any documents. (Ex. 136 at 72-73)
 

Given the total discretion of the Hogan family and stewards over hiring and work assignments, it indeed would be surprising if any member voiced any open disagreement or openly requested a secret ballot vote. As one member summarized the process, "[u]sually we just knew that Mike Hardy and Bill, Jr., or whoever was negotiating the contract, said [sic] they knew what was best for us, and it's usually what we went by." (Ex. 74 at 13)
 

10. November 1995 Nomination Meeting
 

Both the manner in which one became a member of the Local's trade show/movie division and in which members in that division were selected for that work with its superior wages forged a cadre of Local members completely dependent on William Hogan, Jr. and his appointees for their livelihoods. As to be expected, these men, who did not even participate in the negotiation of their contracts or, indeed, vote on them, were the most consistent attendees at membership meetings to support the officers. (Ex. 1 at 25) Such repayment was to be expected since for every minute of work, these individuals were dependent for work assignments on the unguided discretion of the appointed chief steward, who served at the Secretary-Treasurer's pleasure.¹¹⁸
 

¹¹⁷ Hardy testified that he was not aware of an actual vote on the collective bargaining agreement covering the trade show workers. (Ex. 49 at 24-25)
 

118 In his report Miller acknowledged this dependence stating, " [b] ecause Local 714 may significantly influence the employment and earnings opportunities of members in the referral group, it is
 

A recent example of the power of this captive group was shown at the Local's November 1995 nominations meeting where the room was filled close to capacity with members from the Local's trade show/movie division. (Ex. 74 at 43) On Sunday, November 5, 1995 the Local 714 nomination meeting for union officers was held at the union hall at 9:00 a.m.. (Ex. 182) One trade show member admitted that trade show steward Hardy directed him to be at the union hall at 6:00 a.m.. (Ex. 74 at 42-43) When asked why he arrived at the union hall at 6:00 a.m., the member responded, stating the obvious, "[y]ou tell me. So we're all, so, we're there, so we fill up the hall, I guess. Because there will be no seats. Everybody gets there early." (Ex. 74 at 42-43)
 

According to the sign-in sheets for this meeting, 210 Local members out of a total membership of approximately 10,700 attended the meeting. (Ex. 183) At least 174 of the attendees (or 83% of the members in attendance) were either a member of the Local's trade/show movie division (160) or a Local employee (14). (Exs. 183 and 184)¹¹⁹ In a Local of over 10,000 members where less than two percent of the members attended, the trade show/movie
 

important that favoritism, as well as the appearance of favoritism, be minimized if not eliminated altogether." (Ex. 129 at 34-35)
 

119 This figure did not include the six members who attended from the GES warehouse because such members, although working in the trade show industry, were covered under the GES warehouse collective bargaining agreement and not the GES trade show collective bargaining agreement. In addition, the dues for these members were paid via check-off. If these individuals were included in the analysis, 86% of the members in attendance at the November 1995 nomination meeting worked in the trade show industry or were employed at the Local. (Ex. 184)
 

11. Analysis
 

Discriminatory or arbitrary operation of a hiring hall violates the NLRA because through such conduct "the union gives notice that its favor must be curried, thereby encouraging membership and unquestioned adherence to its policies." National Labor Relations Bd. v. International Ass'n of Bridge, Structural & Ornamental Iron Workers,   No.   433, 600 F.2d 770, 777 (9th Cir.
1979), cert. denied, 445 U.S. 915 (1980). Unions operating hiring halls have a heightened duty of fair dealing because they are acting in the employer role which forces the individual members to
 

stand alone against the joint union/employer entity. See Boilermakers Local No. 374 v. NLRB, 852 F.2d 1353, 1358 (D.C. Cir. 1988); see also, International Union of Operating Engineers Local 406 v. NLRB, 701 F.2d 504, 508 (5th Cir. 1983) (although a union is not prohibited from operating a hiring hall, it "may not apply arbitrary or invidious criteria in referring employees to jobs."); see also Lewis v. Local Union No. 100, 750 F.2d 1368, 1375 n.9 (7th Cir. 1984) (same). The members are even more estranged from their representatives when those representatives or their family members are financially dependent on the employers through non-union business dealings as is the case in Local 714.
 

Although Local 714 did not operate an exclusive hiring hall per se, the Local is the exclusive referrer of individuals to work in the trade show and movie industries. (Ex. 50 at 20-21; Ex.
 

136 at 52) Such power is similar to an "exclusive" hiring hall arrangement. See Carpenters Local 608, United Brotherhood of Carpenters and Joiners of America, AFL-CIO, 279 N.L.R.B. 747, 1986 NLRB Lexis 500, at *36-38 (1986), enf'd, 811 F.2d 149 (2d Cir.), cert. denied, 484 U.S. 817 (1987) (a hiring hall is deemed to exist where an employer has the contractual right to bring in a certain number or percentage of employees onto a job); accord, Breininger v. Sheet Metal Workers Int'l Ass'n Local Union No. 6, 493 U.S. 67, 71 n.1 (1989) ("the word 'exclusive' when used with respect to job referral systems is a term of art denoting the degree to which hiring is reserved to the union hiring hall. Hiring is deemed to be 'exclusive' for example, if the union retains sole authority to supply workers to the employer up to a designated percentage of the work force . . . before the employer can hire on his own.")
 

Moreover, the arbitrary way the Local 714 trade show/movie division operated conflicts with the IBT Constitution and the oath all Local officers take.
 

D. Companies Owned By Hogan Family Members in Authority_ Positions That do Business with Local 714 Employers
 

1. Movie Industry
 

a.   Introduction
 

Local 714 has jurisdiction over drivers on movie productions in the Chicago area. As detailed supra at 43-51, seventy-two percent of the Local 714 members in positions of authority in the movie industry had ties to the Hogan family. (Ex. 3)
 

In the movie industry in Chicago, the Teamster
 

transportation coordinators are responsible for obtaining equipment from rental companies for the movie production companies. (Ex. 57 at 15) The six transportation coordinators, who are Teamster members, are responsible for obtaining equipment for the movie
 

production companies to lease. Each of the transportation coordinators has ties to the Hogan family. The transportation coordinators frequently arranged for movie production companies which employ Teamsters to lease equipment from companies Hogan family members own .¹²°
 

For example, Movies In Motion currently leases transportation equipment to movie production companies which have collective bargaining agreements with Local 714. (Ex. 57 at 19-20) As detailed infra at 65-70, William Hogan, III, James A. Hogan, James F. Hogan, President James M. Hogan's three children and former Local 714 member Salvatore Galioto's mother are the current owners of Movies in Motion. (Ex. 52 at 65-67)¹²¹ William Hogan, III is a transportation coordinator and has arranged for movie
 

120 Transportation coordinator DeAngelo testified that no written bids were used to select the equipment the movie production companies leased. (Ex. 33 at 25-26) DeAngelo testified that written contracts are entered into between the equipment rental companies and the movie production companies which the transportation coordinator or production manager signed. (Ex. 33 at 34)
 

121 When Movies in Motion was first created, Robert Hogan and Dennis Collucci were owners of the company. (Ex. 136 at 82) However, when Robert Hogan became a Local business agent, he sold his share of the company to his brothers, William and James. (Ex. 136 at 88-90) In addition, Dennis Collucci sold his shares of the company to Local 714 President James M. Hogan's children. (Ex. 135 at 81-84)
 

b. Movies in Motion/SJB Rentals
 

Movies in Motion, Inc., a company which leases equipment to movie production companies that employ Teamsters, was incorporated on April 28, 1987. (Ex. 265)¹²³ The officers listed on the 1988 annual report for this company were: William Hogan, III, Robert Hogan and former Local 714 member Salvatore Galioto. (Ex. 265)¹²⁴ At the time this company was incorporated, each of the listed corporate officers were Local 714 members. (Ex. 133 and 268)
 

122 Secretary-Treasurer Hogan testified that he has occasionally spoken to representatives of movie production companies about the equipment companies his children own. When asked the circumstances of such discussions, Hogan responded,
 

More than likely they would raise it and say I understand your sons own equipment and we could have a discussion on that. I would tell them right up front, yes, they got equipment but that's up to you whether you want to use it or not. It has never been something that had to be. I'm very protective of that. The Local unions, the primary function and anybody in business don't let it interfere with Local union. That is my philosophy. Nobody brings any problems to me then I don't know where I have the right to tell people they can't be in business. We had people leave us, go on to bigger and better things. If there is something there that I'm not aware of, shame on me maybe, but it's never been a problem. The equipment is needed right now. We are busier than we have ever been.
 

(Ex. 1 at 43-44)
 

123 Illinois corporate records showed that the company incorporated on April 28, 1987 was Movies and Motions and, on July 30, 1987, the corporation changed its name to Movies in Motion Inc.. (Ex. 265)
 

124 As discussed infra at 67, after being appointed a Local 714 business agent, Robert Hogan sold his shares of Movies in Motion to his two brothers, William and James.
 

The initial investors in Movies in Motion included the above mentioned officers plus James A. Hogan, James F. Hogan and Dennis Collucci, a friend of President Hogan. (Ex. 136 at 82-83, 85)
 

James F. Hogan is Secretary-Treasurer Hogan's and President Hogan's cousin. (Ex. 52 at 8) Salvatore "Sam" Galioto was a member of Local 714 in the Local's trade show/movie division from approximately April 1981 to July 1995. (Ex. 268)¹²⁵
 

In or about June and July 1995, Chicago newspapers reported on a low interest loan the City of Chicago was to grant to a company, United Studio Center, to build a sound stage in Chicago. (Ex. 269)¹²⁶ The articles reported that United Studio Center officer William Galioto was the brother-in-law of James Marcello, whom Chicago papers alleged to be a member of the Chicago La Cosa Nostra family. (Ex. 269) After these reports, the City of Chicago cancelled the loan to United Studio Center. (Ex. 269)
 

In or about July 1995, Local 714 member Salvatore Galioto took a withdrawal card from Local 714. (Ex. 268) It appears that
 

125 James F. Hogan and Ann Galioto, Salvatore Galioto's mother, were owners of Shore Enterprises which was incorporated on July 22, 1992 and dissolved on December 1, 1993 for failure to file an annual report and failure to pay an annual franchise tax. (Exs.
 

266-67; Ex. 52 at 81) According to James F. Hogan, Shore Enterprises owned star trailers which were sold to Movies in Motion and Florida Motion Picture Services. (Ex. 52 at 81-82) James F. Hogan testified that Florida Motion Picture Services, which he owned along with Ann and William Galioto, Salvatore Galioto's parents, and James Ewing, a former UPS manager, is involved in the movie equipment rental business in Florida. (Ex. 52 at 68-71) Salvatore Galioto is also involved in Florida Motion Picture Services. (Ex. 106 at 24-28)
 

126 The officers of United Studio Center were as follows: James Ewing, James F. Hogan, William and Ann Galioto. (Ex. 270; Ex. 52 at 72-74)
 

Galioto is still involved in the affairs of Movies in Motion.¹²⁷
 

Initially William Hogan, Jr.'s three sons, William, Robert and James, each invested $10,000 in Movies in Motion. (Ex. 51 at 10; Ex. 57 at 18; Ex. 136 at 85-86) James A. Hogan became an officer of Movies in Motion when he was eighteen years old. (Ex. 51 at 4, 12; Ex. 265) He claimed he obtained his initial investment money from his savings and loans from his brother William. (Ex. 51 at 10) Secretary-Treasurer Hogan testified that his wife loaned their sons, William and Robert, the money to form Movies in Motion. (Ex. 1 at 114-115)
 

Robert Hogan became an officer and owner of Movies in Motion when he was twenty-three years old. (Ex. 136 at 90) According to Robert Hogan, his mother loaned him a portion of the $10,000 he initially invested in the company. (Ex. 136 at 85-86) When Robert Hogan became a Local 714 business agent in January 1990 (Ex. 136 at 5), he sold his shares in Movies in Motion to his brothers for $25,000. (Ex. 136 at 88) Robert testified that he sold his shares of Movies in Motion, "[b]ecause my father told me it would be prudent that I get out because I was going to work for the union, and he didn't feel that it would be proper for me to own a company and work for the union." (Ex. 136 at 89-90)
 

On April 15, 1993, SJB Rentals, Inc. was incorporated and in 1994 the officers were: James F. Hogan, Salvatore Galioto, James
 

127 For example, according to Local 714 President Hogan's son, Brian Hogan, a shareholder in Movies in Motion, Salvatore Galioto attended all the meetings of Movies in Motion even though his mother, Ann Galioto, is the person with an interest in the company. (Ex. 150 at 15)
 

A. Hogan, William Hogan, III and Brian Hogan. (Ex. 271) President Hogan testified that he believed that Movies in Motion "became" SJB Rentals. (Ex. 135 at 85)
 

In approximately 1993, the three children of President Hogan, one of whom was approximately fourteen years old, became shareholders of Movies in Motion/SJB Rentals. (Ex. 150 at 10-11)¹²⁸ With respect to Movies in Motion/SJB Rentals, President Hogan testified,
 

[o]ne of the original partners by the name of Dennis Colucci was a friend of mine since we were kids, and he became disenchanted with whoever was running it at the time and wanted to get out of it and came to me and asked me if I thought my kids might be interested in taking his portion of the company.
 

(Ex. 135 at 81) At the time Collucci had this discussion with Hogan, Salvatore Galioto was running the day-to-day operation of Movies in Motion. (Ex. 135 at 81-82) As a result of his conversation with Collucci, Hogan's three children, Jennifer, Brian and Brad, who was then thirteen or fourteen years old, purchased Collucci's share in Movies in Motion for $75,000. (Ex. 135 at 83-
 

84; Ex. 150 at 10-11) According to President Hogan, he told Collucci that his children did not have the money to purchase his share and as a result, Collucci allowed his children to pay for the purchase through profits from the company. (Ex. 135 at 84-85) His children did not have to put up any money in connection with their purchase of Collucci's share of the company. (Ex. 135 at 85)
 

128 Brian Hogan, President Hogan's son, testified that his father asked him about meetings Movies in Motion held and "[f]rom time to time" asked about the business. (Ex. 150 at 12)
 

In the years 1993 through 1995, President Hogan filed Form LM-30s with the Department of Labor disclosing that his minor child, Brad, had an interest in SJB Rentals which did business with Local 714 employers. (Exs. 272-274; Ex. 135 at 90-92) According to the LM-30 for 1993, the total sales for SJB Rentals in 1993 were $693,000. (Ex. 272) According to this Form LM-30, the "[n]et benefit after tax and purchase price paid during 1993 to minor son (Brad Hogan) was approximately $9,000, and unpaid purchase price as of December 31, 1993 was approximately $20,000." (Ex. 272). According to the Form LM-30 President Hogan filed for the fiscal year ending December 31, 1994, SJB Rentals' total sales were $444,235 and the total income his son received was $2,334 that year. (Ex. 273) According to the LM-30 filed for the fiscal year ending December 31, 1995, SJB Rentals' total sales were $202,430 and there was a loss of $4,373 to his minor son. (Ex. 274)¹²⁹
 

According to transportation coordinator Armand Paoletti, Movies in Motion is the only company in the Chicago area that leases honeywagons. (Ex. 129, Paoletti statement at 2) Outside of Local 714 movie employers there would be little demand for Movies in Motions' equipment. Prior to being employed as a business agent, Robert Hogan was a transportation coordinator and in that capacity arranged for movie production companies to rent equipment from his company, Movies in Motion. (Ex. 136 at 87) As a current
 

129 According to Brian Hogan, the accountant for Movies in Motion/SJB Rentals was Leonard Reicin, but he was replaced by another accountant. (Ex. 150 at 13-14) Leonard Reicin is the Local 714 accountant and prepared the Form LM-30s President Hogan filed. (Ex. 1 at 131; Ex. 291; Ex. 135 at 90)
 

transportation coordinator, William Hogan, III also arranged for movie production companies to rent equipment from Movies in Motion. (Ex. 57 at 20)¹³° In addition to working as a transportation coordinator, William Hogan, III currently runs the day-to-day operation of Movies in Motion/SJB Rentals. (Ex. 57 at 21)¹³¹
 

DeAngelo also testified that as transportation coordinator he arranged for the production companies to use equipment from Movies in Motion. DeAngelo identified William Hogan, III as the person he dealt with at Movies In Motion. (Ex. 34 at 53) Transportation coordinator Larkowski, who went to high school with Robert Hogan, testified that he knew that Robert's brothers, William and James, owned Movies in Motion. (Ex. 63 at 4,
 

10-11) Larkowski, as a transportation coordinator, leased equipment for movie production companies from Movies in Motion. (Ex. 63 at 10-11)
 

13° William Hogan, III also testified that as transportation coordinator he arranged for movie production companies to lease equipment from Show Biz Chicago. (Ex. 57 at 23-24) To arrange this, he negotiated with Dawn Hogan, the wife of his uncle Michael Hogan, Sr.. (Ex. 57 at 24-25; Ex. 53 at 4-6) Show Biz Chicago was incorporated on May 21, 1984. (Ex. 261) At that time, Michael J. Nallen, a cousin of William Hogan, Jr., was the registered agent for this company. (Ex. 261; Appendix B) According to the annual report Show BIZ Chicago filed in 1995, Dawn Hogan, Michael Hogan, Sr.'s wife, and Florence Crosoli were the officers of this company. (Ex. 261; Ex. 53 at 4-6)
 

131 According to William Hogan, III, when he worked as a transportation coordinator he would inform the movie production companies that he was an officer of Movies In Motion. (Ex. 57 at 24)
 

H & M Rentals, Inc. was incorporated on March 30, 1993. (Ex. 275) The officers of H & M Rentals are William Hogan, III, James A. Hogan and Local 714 member Mark Majcher ("Majcher"). (Ex. 72 at 14; Ex. 275)¹³² This company rents five-ton crew cabs to movie production companies that employ Local 714 members. (Ex. 72 at 13-14)¹³³ Majcher runs the day-to-day operation of H & M Rentals. (Ex. 72 at 21) 134
 

James F. Hogan incorporated Art's R.V. Sewer & Septic, Inc. ("Art's") on March 11, 1992. (Ex. 276) This company cleans the septic tanks for honeywagons and star trailers in the movie industry. (Ex. 136 at 103) The current owners of Art's include James F. and James A. Hogan, William Hogan, III, and Ann Galioto, the mother of former Local 714 member Salvatore Galioto. (Ex. 57 at 25)¹³⁵ It also appears that the three children of President Hogan are part owners of Art's. (Ex. 135 at 86) William Hogan, III,
 

132 Majcher began to work as an extra in the Local's trade show/movie division through his high school friend William Hogan, III. (Ex. 72 at 3-4, 11)
 

133 H & M Rentals currently has six such trucks which cost approximately $40,000.00 each. (Ex. 72 at 13-14)
 

134 During his February 22, 1996 sworn examination, Majcher testified that at that time H & M Rentals was leasing four trucks to 20th Century Fox as result of a call from transportation coordinator George DiLeonardi. (Ex. 72 at 19-20)
 

135 According to William Hogan, III, Art's "was kind of a parallel to Movies in Motion. It's kind of a takeoff company, the same thing." (Ex. 57 at 25)
 

testified that as a transportation coordinator he arranged for movie production companies to use Art's. (Ex. 57 at 25)
 

According to records from the Illinois Secretary of State, Art's was dissolved on August 2, 1993 for failure to file an annual report and pay an annual franchise tax. (Ex. 277) However, during his January 1996 sworn examination, William Hogan, III, an owner of Art's, testified that the company was still in existence. (Ex. 57 at 26) In addition, for the years 1993 through 1995, Local 714 President Hogan filed form LM-30s with the Department of Labor disclosing the interest his minor child, Brad, had in Art's. (Ex. 278-280) 136
 

e. Chem-Dry MaxWash
 

Local 714 member Timothy Maxwell, the nephew of the Local's Secretary-Treasurer and President, is an owner of Chem-Dry Maxwash ("Chem-Dry"). (Ex. 80 at 7, 31)¹³⁷ According to Illinois corporate records available on NEXIS, Max-Wasch, Inc., an Illinois corporation, which was incorporated on November 5, 1992, assumed the name Chem-Dry Maxwash in 1993. (Ex. 282) Chem-Dry cleaned trailer carpets for movie production companies which employed Local
 

136 According to the Form LM-30s President James M. Hogan filed with the Department of Labor for the years 1993 through 1995, the gross receipts for Art's during those years were $108,885, $69,636 and $12,175 respectively. (Ex. 278-280)
 

137 Timothy Maxwell testified that the other owners of this company are: his wife, Cynthia Maxwell, his brother Michael Maxwell and George Washbush. (Ex. 80 at 31-32) According to Local 714 records, between approximately November 1986 and at least March 1994, Michael Maxwell was a Local member. (Ex. 281)
 

72
 

714 members. (Ex. 80 at 31-33)
 

2. Trade Show Industry
 

a.   Exhibition Maintenance
 

William Hogan, Jr.'s and James M. Hogan's sister, Winifred Torii, and her husband Dale Torii, currently own Exhibition Maintenance. (Ex. 153)¹³⁸ Since approximately 1970, Exhibition Maintenance has had an agreement with Local 714 employer J&J to provide cleaning services for trade shows at McCormick Place. (Ex. 115 at 21) It also provides cleaning services at Local 714. (Ex. 115 at 9-11)
 

Exhibition Maintenance was hired in the early 1970s as a subcontractor to do the cleaning at McCormick Place for J&J. (Ex. 115 at 37-39) J&J is a trade show contractor that has a collective bargaining agreement with Local 714. (Ex. 158; Ex. 115 at 17, 20) Exhibition Maintenance does cleaning work for J&J at the auto show each year at McCormick Place. (Ex. 115 at 40) Exhibition Maintenance does not usually use union workers. It has occasionally used unemployed Local 714 trade show members to do work for Exhibition Maintenance. (Ex. 115 at 40) They are not paid union wages. (Ex. 115 at 40-41)
 

138 Exhibition Maintenance was incorporated on June 10, 1971. (Ex. 153) An annual report for Exhibition Maintenance dated February 1975 listed Dale Torii as the President, Winifred Torii as the Secretary and Treasurer and Local 714's lawyer Marvin Sacks as the registered agent for the company. (Ex. 153) The latest annual report Exhibition Maintenance filed listed the company's address as care of Marvin Sacks. (Ex. 153) In addition, Reicin & Pollack is the accounting firm for both Exhibition Maintenance and Local 714. (Ex. 115 at 11; Ex. 1 at 131)
 

b.   Trade Show Rentals
 

President Hogan's and Secretary-Treasurer Hogan's cousin, James F. Hogan, is the 90% owner and an officer of Trade Show Rentals, which leases forklifts to trade show contractors having collective bargaining agreements with Local 714. (Ex. 52 at 20-24; Ex. 283)¹³⁹ Trade Show Rentals does business with the following Local 714 employers: Freeman, GES and J&J. (Ex. 52 at 24) Mark Hammersmith, the President, owns the other 10% of Trade Show Rentals. (Ex. 52 at 21-24) Former Local 714 member Salvatore Galioto was an officer of Trade Show Rentals. (Ex. 52 at 23; Ex. 283) A few months prior to January 1996, he ceased being an officer of Trade Show Rentals. (Ex. 52 at ₂₃₎140
 

E.   Boscarino's Conflicted Position at the Rosemont Exposition Center
 

Boscarino was the Local 714 steward for Rosemont from approximately 1978 until his resignation on May 30, 1996, the day scheduled for his second IRB sworn examination." As detailed
 

139 James F. Hogan was not identified as a trade show steward in Sacks' September 1995 letter. (Ex. 168) However, during his sworn examination, James F. Hogan testified that he has worked as a steward at McCormick Place. (Ex. 52 at 13)
 

140 James F. Hogan's other business interests which involved former Local 714 member Galioto or his mother included: Movies in Motion, SJB Rentals, Florida Motion Picture Services, United Studio Center, Art's RV Sewer and Septic, Global Link Communications, HEG Properties and Shore Enterprises. (Ex. 52 at 62, 69-70, 72-73, 74, 80-82)
 

141 Boscarino resigned that day and did not testify. (Ex. 126)
 

infra at 80-89, while the chief steward for Local 714 employer Rosemont, Boscarino directly, or indirectly through his ten year old daughter, was part owner of at least four companies which did business with Rosemont.¹⁴² As a result, there was, at a minimum, the appearance of a serious conflict of interest between Boscarino's personal financial interests and his duties as chief steward to represent the Local 714 members Rosemont employed.
 

As detailed infra at 114-117, beginning in approximately August 1994, the Local retained Gerry Miller, Esq. to conduct an investigation of the Local 714 trade show and movie jurisdiction. (Ex. 129; Ex. 304) In his May 27, 1996 report, Miller recommended that, "Rosemont steward Nick Boscarino should be asked to give up either his financial interests in any trade show equipment leasing business or his steward's position with Local 714." (Ex. 129 at 34)¹⁴³ Based upon this recommendation, according to Secretary-
 

142 The four companies were Bomark Cleaning Services; OG Services, a forklift and scooter rental company; Angles on Design, a furniture rental company, and Premier Fuel and Cartage.
 

143 As detailed infra at 114-117, this recommendation was based upon the following findings in the Miller report:
 

the dual and potentially conflicting positions held by Nick Boscarino are troublesome, particularly in light of the allegations in MCM Partners. Because Mr. Boscarino is the owner and/or manager of several businesses that sell to trade show contractors -- including his immediate employer Rosemont Exposition Services -- that negotiate collective bargaining agreements with Local 714, his steward's position with the Local Union gives rise to the possibility that otherwise legitimate union pressures may be used in support of personal business interests. Furthermore, because as union steward he assigns members to operate equipment that the employer leases either from his own firm or that of a competitor, Mr. Boscarino is in a position to take actions as a union referral official
 

Treasurer Hogan, he told Boscarino that, effective July 1, 1996, he would no longer be the chief steward for Rosemont. (Ex. 1 at 77)¹"
 

that directly impact the business interests of an equipment lessor, as one may conjecture from the alleged forklift ramming incident at McCormick Place. Although we have seen no evidence that Mr. Boscarino has actually engaged in misconduct of either type, the potential for conflict of interest clearly appears to exist between the steward's responsibilities and those of an equipment lessor in these circumstances, and we will make a concluding recommendation that the Local Union take appropriate action in this regard.
 

(Ex. 129 at 18-19) The reference to MCM Partners concerns a lawsuit a forklift company, MCM Partners, filed against Boscarino, OG Services, William Hogan, Jr., Michael Hardy and others alleging that they engaged in a conspiracy to maintain OG Services' position as the only supplier of forklifts at McCormick Place. (Ex. 185) The "forklift ramming incident" appears to refer to an allegation in the complaint that the defendants caused a forklift MCM supplied at McCormick Place to be intentionally damaged by another forklift. (Ex. 185 at paras 35-41)
 

144 William Hogan, Jr. testified,
 

At this point now I am concerned and I have had a couple of conversations with Nick subsequent to this investigation and we've had people, we've had attorneys doing different things investigating all of this now.
 

*   *   *
 

Nobody has come forward and said something is illegal. Nobody has said they were muscled or any kind of pressure to do anything and that the entries [sic] are very proper. It is run properly, it is competitive, but no negatives.
 

But at this point it is becoming a problem apparently and I've had some conversations with Nick and Nick is going to be removed as a steward as a result of all of this. As I said before anything that starts to bring the union into focus, even the perception of impropriety and we will move against that. Now Nick has become [sic] focal point for some reason and there is this cloud hanging. over him. Now where do his interest lay? His interests have to lay with the union first. I've informed him he is going to need to be removed.
 

On May 30, 1996, the date his second IRB sworn examination was scheduled, apparently to avoid testifying, Boscarino resigned his Local membership and his position as chief steward for Rosemont effective immediately. (Ex. 126)
 

2.   Rosemont Exposition Services
 

In 1978, Local 714's then principal officer, William Hogan, Sr., appointed Boscarino the chief steward for Rosemont. (Ex. 13 at 18) Rosemont is the exclusive trade show contractor for trade shows at the Rosemont Exposition Center. (Ex. 13 at 29; Ex. 45 at 9)¹⁴⁵ Local 714 has had a collective bargaining agreement with Rosemont since the company's inception. (Ex. 1 at 88)
 

discussed infra at 78-80, for at least some period while the Local had a collective bargaining agreement with Rosemont, Michael Hogan, Sr., had an ownership interest in Rosemont. (Ex. 135 at 98)¹⁴⁶
 

According to Illinois corporate records, Rosemont was incorporated on December 11, 1979 and the attorney for Local 714 since at least 1965, Marvin Sacks (Ex. 293), was the registered agent. (Ex. 190) From 1980 to 1983, Michael Hogan, James J. Roche and William Smith were publicly identified as the officers of Rosemont Exposition Services. (Ex. 190)
 

(Ex. 1 at 75-76)
 

145 The Rosemont Exposition Center, also known as the O'Hare Exposition Center, opened in 1975. (Ex. 189)
 

146 In addition, for at least a brief period, James F. Hogan, a cousin of William Hogan, Jr., was an officer of Local 714 employer Rosemont. (Ex. 190)
 

As discussed supra at 21-22, Michael Hogan, Sr., was a Local 714 member between October 1968 and 1979. (Ex. 164) Between approximately the mid-1970's and 1979, he was the chief steward in the Local 714 trade show/movie division. (Ex. 135 at 128 and Ex. 49 at 11) He may have left his position as chief steward in the Local's trade show/movie division to form Rosemont. (Ex. 135 at 95-99; Ex. 50 at 8)¹⁴⁷
 

The annual report Rosemont filed in 1984 showed James F. Hogan as Secretary and Treasurer and Michael Hogan as President. (Ex. 190)¹⁴⁸ In May 1985, the name of Rosemont changed to MPH Enterprises, Inc. with Michael P. and James F. Hogan as the corporate officers. (Ex. 192)¹⁴⁹ Local 714 attorney Marvin Sacks remained the registered agent for Rosemont until 1985 when its name was changed to MPH Enterprises. (Ex. 190)¹⁵° Despite repeated public filings to the contrary, during his sworn examination James F. Hogan, represented by Sacks, denied he was ever an officer or
 

14' In addition to being an officer of Rosemont Exposition Services, Michael Hogan, Sr. has also been an officer of Show BIZ Chicago which, as discussed supra at 70 fn. 130, does business with movie production companies that employ Teamsters. (Ex. 191)
 

148 As discussed supra at 74, in addition to being an officer of Rosemont, James F. Hogan has also been an officer Trade Show Rentals, a forklift rental company which currently does business with Local 714 employers Freeman and GES. (Ex. 52 at 20-24) Furthermore, as discussed supra at 65-72, James F. Hogan is an owner of at least two companies which do business with movie production companies which employ Teamsters.
 

149 MPH Enterprises was dissolved in 1987 for failure to file an annual report and to pay an annual franchise tax. (Exs. 193 and 194)
 

150 This name change was effective May 17, 1985. (Ex. 192)
 

owner of Rosemont. (Ex. 52 at 5)¹⁵¹
 

On the same date that Rosemont, which incorporated in 1979, changed its name to MPH Enterprises, a new Rosemont ("Rosemont II") was incorporated. On the 1987 annual report Rosemont II filed, David Houston, Grant Bailey, Mark Stephens, Donald Storino and Donald Schaid were listed as the officers. (Ex. 195)¹⁵² On January 19, 1990, Rosemont II changed its name to DHGB, Ltd. with Houston and Bailey as the officers. (Ex. 196) DHGB, Ltd was dissolved on October 1, 1990 for failure to file an annual report and pay an annual franchise tax. (Ex. 198)
 

On January 19, 1990, the same date that Rosemont II changed its name to DHGB, Ltd, O'Hare Exposition Services, incorporated on December 29, 1988 (Ex. 199), changed its name to Rosemont ("Rosemont III") with Houston and Bailey as the officers. (Ex. 200)¹⁵³ Rosemont III is still in existence and has a current collective bargaining agreement with Local 714. (Exs. 156 and 202)¹⁵⁴
 

According to President Hogan, his and the current Secretary-Treasurer's brother, Michael Hogan, Sr., had an ownership
 

151 In fact, James F. Hogan testified that if the annual report Rosemont filed in 1984 listed him as an officer, that report would be incorrect. (Ex. 52 at 78)
 

152 As discussed infra at 80, Mark Stephens is Boscarino's current partner in Bomark Cleaning Services. (Ex. 197)
 

153 David Houston had been the President and registered agent of O'Hare Exposition Services, Inc.. (Ex. 199)
 

154 The officers on the latest annual report Rosemont filed were: David Houston, Grant Bailey and Donald Schaid. (Ex. 202)
 

interest in Rosemont while Local 714 had a collective bargaining agreement with that company but that such interest ended between eight and ten years ago. (Ex. 135 at 95-99)¹⁵⁵ However, according to a May 27, 1990 Chicago Tribune article regarding the city of Rosemont, Michael Hogan retained a 20 percent interest in Rosemont Exposition Services in 1990. (Ex. 201)¹⁵⁶
 

3.      Boscarino's Companies that Do Business with Local 714
Employer Rosemont Exposition Services
 

Boscarino owned interests in several companies dependent upon Rosemont and other Local 714 employers for their financial success. His ownership interests were not disclosed to the members.
 

Boscarino acknowledged that he is an owner and President of Bomark Cleaning Services ("Bomark"). His partner in that company is Mark Stephens. (Ex. 13 at 27, 94-95)¹⁵⁷ Bomark was incorporated on January 20, 1981. (Ex. 197) Boscarino and Stephens are the officers. (Ex. 197) Between 1981 and approximately 1989, Local 714's attorney Sacks was the registered agent for Bomark.
 

155 At that time, Michael Hogan's father would have been the Local's Secretary-Treasurer and his two brothers were Executive Board members.
 

156 The three current Hogan Board members each denied having read this article. (Ex. 135 at 97; Ex. 136 at 92; Ex. 1 at 89)
 

157 According to annual reports of Rosemont between 1987 and 1989, Mark Stephens was an officer of Rosemont in those years. (Ex. 195) Boscarino testified that between eight and ten years ago, Stephens worked for Rosemont and thus was part of management of a Local 714 employer. (Ex. 13 at 27-28)
 

Boscarino described Bomark's business as follows: "[c]leans office buildings; trashing, which is big building cleaning after shows; and building cleaning; booth cleaning." (Ex. 13 at 95) Bomark performed cleaning services, such as booth cleaning, exhibit cleaning and possibly office cleaning, for Rosemont. (Ex. 13 at 96)¹⁵⁹ Glass testified that he was not aware of any other company providing cleaning services to Rosemont. (Ex. 45 at 13-14)¹⁶⁰
 

Bomark had approximately 50 employees all of whom were
 

158 Bomark's annual report filed in 1990 listed the registered agent as Donald Storino. (Ex. 197)
 

159 According to a May 27, 1990 newspaper article in the Chicago Tribune, in or about 1984, Bomark began doing cleaning services for Rosemont. (Ex. 201) According to this newspaper report, this work had been performed by O'Hare Exposition Maintenance ("O'Hare") which was incorporated on December 30, 1976
 

with Marvin Sacks was the registered agent. (Ex. 205) Hogan relatives, Michael Hogan, Dale Torii and Michael J. Nallen, were each officers of this company. (Ex. 205 and Appendices A and B) Between at least 1977 and 1978, Michael Hogan and Torii were officers of O'Hare and were both Local 714 members. (Ex. 205, 133 and 164) Between at least 1980 and 1985, Michael Hogan and Michael Nallen were officers of O'Hare. (Ex. 205) During this period, Nallen was a Local 714 member. (Ex. 288) O'Hare was dissolved on May 1, 1987 for failure to file an annual report. (Ex. 206)
 

Local 714 member Vincent Siciliano testified that he worked for O'Hare from 1979 until approximately 1986 when the company went out of business. (Ex. 105 at 3-4) When he worked at O'Hare he was a member of IBT Local 727. (Ex. 105 at 3-4)
 

160 Local 714 member George Lemke testified that he worked for Bomark prior to becoming a Local 714 member. (Ex. 65 at 4) Lemke stated that when he worked for Bomark he did not work anywhere other than the Rosemont Exposition Center where he did cleaning for Rosemont. (Ex. 65 at 17-18) Lemke was not aware of Bomark providing cleaning services for any company other than Rosemont. (Ex. 65 at 17-18)
 

non-union. (Ex. 13 at 95-96) In addition, as detailed infra at 92-96, during trade shows Bomark employees handled the empty crates for Rosemont. As discussed infra at 92-96, conveniently for Boscarino, this work was specifically excluded from the Local 714 collective bargaining agreement with Rosemont and the other trade show contractors. (Exs. 155-158)
 

b.   OG Services
 

Boscarino is currently the President of OG Services, a forklift and scooter rental company. (Ex. 13 at 85-86)¹⁶¹ Boscarino's father-in-law, Glass, is also an officer of OG Services. (Ex. 13 at 86) Boscarino and his ten year old daughter Nicole are the owners of OG Services which does business at the Rosemont Exposition Center and at McCormick Place. (Ex. 13 at 86-87, 99) It leases equipment to the following companies which employ Local 714 members: Rosemont, Freeman, GES and J&J. (Ex. 13 at 86-87; Ex. 45 at 14)
 

OG Services was incorporated on October 23, 1978 with Oscar Glass as the sole incorporator. (Ex. 207) Local 714 member Michael Hansen, Boscarino's step brother, was an officer of OG Services in 1979 and 1980. (Ex. 207) Subsequent filings in 1982 and 1983 added Sherri and Nick Boscarino as officers. (Ex. 207)¹⁶²
 

161 OG Services also leases ramps to load trucks. (Ex. 34 at 11)
 

162 The corporation was dissolved on March 2, 1992 for failure to file an annual report or pay an annual franchise tax and reinstated on June 3, 1992 with Glass and Boscarino as the officers of record. (Ex. 208)
 

The most recent annual report for OG Services filed in September 1994, listed Glass and Boscarino as the company officers. (Ex. 207) OG Services shares an office with Bomark. (Ex. 45 at 12-13)
 

OG Services owns 200 forklifts, 18 to 20 flatbed scooters and approximately 20 Cushman scooters, on which the show managers and others ride. (Ex. 45 at 12, 18-19) Boscarino runs the day to day operation of OG Services. He deals with the account executives at Rosemont who order the forklifts from OG Services. (Ex. 45 at 12, 15) When asked whether other companies provided forklifts to Rosemont, Glass responded, "If Nick doesn't have enough, he will call other companies." (Ex. 45 at 17)
 

On or about April 21, 1992, a forklift company, MCM Partners ("MCM") filed a complaint and a motion for a preliminary injunction against Boscarino, OG Services, William Hogan, Jr., Michael Hardy and others alleging in essence that Boscarino conspired with Hogan and Hardy to maintain OG Services' position as the only supplier of forklifts at McCormick Place and prevented MCM from leasing forklifts to trade show contractors at McCormick Place. (Ex. 185) For example, the complaint alleged that Boscarino and William Hogan told employees of trade show contractor Andrews-Bartlett¹⁶³ that unless that company stopped doing business with MCM, "Boscarino and Bill Hogan would cause the Teamsters to take various job actions including but not limited to "wild cat" strikes." (Ex. 185 at para 50) Ultimately, this suit was settled
 

and dismissed. MCM Partners v. Boscarino, 1993 U.S. Dist. LEXIS 10671 (August 2, 1993); (Ex. 309)¹
 

On August 21, 1992, MCM filed a second complaint against Boscarino, OG Services, trade show contractors Andrews-Bartlett & Associates and Freeman Decorating and others. (Exs. 209, 211) This complaint alleged that, "A-B and FDC decided to deal exclusively with OG at McCormick Place only in response to threats of labor disruption and damage to property made by Hogan, Boscarino, or others on behalf of 0G." MCM Partners v. Andrews-Bartlett & Associates, 62 F.3d 967, 972-73 (7th Cir. 1995)
 

On or about November 18, 1992, MCM dismissed both Boscarino and OG Services from the second case. (Ex. 211 at 9) On February 16, 1994, the district court dismissed the complaint against the other defendants finding that "MCM's prosecution of this suit after dismissing OG and Boscarino left a racketeering count with no racketeer and an antitrust suit with no monopoly." MCM v. Andrews Bartlett, 1994 U.S. Dist. LEXIS 1824 * 31 (February 16, 1994) However, on August 11, 1995, the Court of Appeals for the Seventh Circuit reversed the dismissal and remanded the case. MCM Partners v. Andrews-Bartlett & Associates, 62 F.3d 967 (7th
 

Cir. 1995) This case is still pending.¹⁶⁵
 

On January 26, 1994, NSB Equipment Rentals Corporation ("NSB Rentals") was incorporated with Boscarino as the registered agent. (Ex. 212)¹⁶⁶ On March 15, 1994, NSB Rentals changed its name to O.G. Service Corporation. (Ex. 213) On the same date, March 15, 1994, OG Services, which had been incorporated in 1978, changed its name to NSB Equipment Rentals. (Exs. 207 and 214)¹⁶⁷ Boscarino testified this name change was at the suggestion of Irving Mangurten, the corporation's accountant, "for accounting purposes." (Ex. 13 at 93-94) Irving Mangurten is an accountant with Reicin, Pollack and Associates, the accounting firm for Local 714. (Ex. 1 at 131; Ex. 291) On a form filed with the Illinois Secretary of State on June 3, 1992, the registered office for OG Services was listed as "c/o Reicin, Pollack & Co., Ltd.. (Ex. 208) c.   Angles
 

165 With respect to the MCM suit, William Hogan, Jr. testified,
 

At this point I'm very confused on what the MCM case is all about. I gave a deposition and I read it recently. I just got it recently and looked at it. There were so many things I was uncomfortable with. I got attorneys from my companies asking about union business I felt was none of their business. I really don't know what that was all about, that entire case. From my understanding from my attorneys that they reviewed the deposition there has never been implication to me at all yet I'm up to it, but I don't understand why I'm there or what that entire thing is about. I don't know if somebody is trying to dirty me up or what sinister moves are behind the effort in this case.
 

(Ex. 1 at 67)
 

166 NSB are the initials of Nick Sam Boscarino. (Ex. 13 at 4)
 

167 When asked what type of company NSB Equipment was, Glass testified, "I think it is strictly an accounting function right now." (Ex. 45 at 21)
 

Another Boscarino company, Angles On Design ("Angles"), was incorporated on May 26, 1987 with Christine Skrak and Boscarino as the corporate officers. (Ex. 215) Boscarino testified that he owns between 65% and 70% of Angles, a furniture rental company which does business in the trade show industry. (Ex. 13 at 98-99) 168 In addition, Boscarino's ten year old daughter, Nicole, owns approximately 10% of Angles with Kathy Skrak owning the rest. (Ex. 13 at 99) Boscarino testified that Kathy Skrak, Christine's sister, runs the day to day operation of Angles and is also an officer of the company. (Ex. 13 at 98, 100)¹⁶⁹ Boscarino explained that "somebody" whom he could not identify introduced Christine Skrak to him and "she came to see me about getting into this business." (Ex. 13 at 98-99) Angles supplies furniture for trade shows to Rosemont. (Ex. 13 at 99; Ex. 65 at 7) Boscarino's interest in Angles was not disclosed to the members. (Ex. 1 at 74-75; Ex. 226) Local 714 also did business with Angles. (Ex. 216)¹⁷⁰
 

Boscarino had an indirect ownership in Premier Fuel and
 

168 According to Boscarino, in addition to doing business in Illinois, Angles also does business in the trade show industries in Las Vegas and New York. (Ex. 13 at 101)
 

169 The annual reports Angles filed did not list Kathy Skrak as an officer. (Ex. 215) M. Christine Skrak was listed as an officer of that company. (Ex. 215)
 

170 This is another example of the Local doing business with companies run by insiders. See, supra at 73.
 

Cartage Service, Inc. ("Premier"). The company, incorporated on December 2, 1993, had transportation coordinator Richard DeAngelo, William Daddano, III and Boscarino's minor daughter, Nicole, as the original investors. (Ex. 217; Ex. 34 at 13-16)¹⁷¹ DeAngelo ("DeAngelo") ran the day-to-day operation of Premier. He has been a Local 714 member since approximately 1979 and has been a transportation coordinator for the past 13 years. (Ex. 32 at 7; Ex.
 

136 at 37; Ex. 133)   Since 1994, Premier has had a collective bargaining agreement with Local 714 and the business agent for Premier has been Robert Hogan. (Ex. 34 at 28, 33; Ex. 218)
 

Premier was specifically formed to provide gas to trade show contractors including the following Local 714 employers: Rosemont, Freeman, GES and Badger Exposition Services. (Ex. 34 at 12, 16-19) Apparently Freeman, GES and Rosemont do not obtain gas from any source other than Premier. (Ex. 34 at 17-18)¹⁷²
 

Premier, which owns ten trucks and thirty trailers, also did carting work for companies having collective bargaining agreements with Local 714 including: Freeman, GES and Badger. (Ex. 33 at 41-43)¹⁷³ Moreover, when he worked as a transportation coordinator for a movie, DeAngelo arranged for Premier to provide
 

171 Richard DeAngelo testified that Nicole Boscarino has a one third ownership interest in Premier. (Ex. 34 at 16)
 

172 Local 714 member George Lemke, who usually worked for Rosemont, testified that he believed that Premier supplied all the gasoline for the forklifts at the Rosemont Exposition Center. (Ex. 65 at 6, 27)
 

173 Premier also did carting for Boscarino's company, OG Services. (Ex. 34 at 24)
 

gas to the movie production companies. (Ex. 34 at 20)
 

DeAngelo negotiated the Premier collective bargaining agreement with Robert Hogan in 1994. (Ex. 33 at 38-39)¹⁷⁴ It appears that members of the Local's Executive Board were not aware that the Local entered into a collective bargaining agreement with a member of the Local and a company in which the Rosemont chief steward through his minor child had an ownership interest. (Ex. 253)¹⁷⁵
 

According to Robert Hogan, Premier "adopted" the J&J Motors collective bargaining agreement with Local 714. (Ex. 136 at 32)¹⁷⁶ However, in a comparison of the current collective bargaining agreements in effect for J&J Motors and Premier, the hourly rate Premier was required to pay its employees was less than
 

174 Although Premier had a contract with Local 714, DeAngelo testified "[w]e don't really have a shop steward." (Ex. 34 at 33) According to DeAngelo there were approximately ten Local 714 members employed at Premier. (Ex. 33 at 39) Two Local 714 members employed at Premier, Jeffrey Rizzi and Jason Richko, DeAngelo's nephew, testified that they were unaware of any shop steward or business agent for Premier. (Ex. 263 at 3, 18; Ex. 264 at 3, 5-6, 12) In addition, Robert Hogan testified that he never filed a grievance on behalf of any of the members at Premier. (Ex. 136 at 34)
 

175 For example, Vice President Arrington and Trustee Lee testified that they were not aware of Local 714 having any collective bargaining agreement with any company a Local 714 member owned. (Ex. 137 at 35; Ex. 139 at 15) Recording Secretary Robert Hogan testified that there was no discussion at any Executive Board meeting about the Local entering into a collective bargaining agreement with a company a Local member owned. (Ex. 136 at 32-33) Moreover, chief steward and Trustee Hardy testified that while he knew Premier provided fuel for the forklifts and other equipment used at McCormick Place, he did not know who owned Premier and had not heard that DeAngelo was an owner of Premier. (Ex. 50 at 19-20)
 

176 DeAngelo described the Premier contract as, "[b]asically it was the same thing that J&J Motor Service had." (Ex. 34 at 29)
 

the J&J Motors hourly rate and Premier's employer pension fund contributions were less than the J&J Motors employer contributions. (Exs. 218, 254 and 292)¹⁷⁷
 

In April 1996, the Central States Pension Fund filed a lawsuit against Premier alleging that since approximately November 1995, Premier failed to pay approximately $7,500 in required contributions on behalf of its employees to the Central States Pension Fund. (Ex. 262)¹⁷⁸ In addition to failing to make pension fund contributions on behalf of its employees, according to Local President and Health Fund Trustee James M. Hogan, Premier failed to make contributions to the Local 714 Health and Welfare Fund on behalf of its employees. (Ex. 135 at 59)¹⁷⁹
 

177 The current Premier collective bargaining agreement is effective from February 1994 through January 1997. (Ex. 218) The current J&J Motors contract is effective from May 1994 through April 1997. (Ex. 254) The hourly rate Premier was required to pay its employees was .30 per hour less than the J&J Motors rate in 1994; .40 per hour less than the J&J Motors rate in 1995 and .55 per hour less than the J&J Motors rate in 1996. (Exs. 218, 254 and 292) The weekly employer pension fund contributions under the Premier contract were $10.00 per week less then the J&J Motors contributions in 1994; $14.00 per week less then the J&J Motors contributions in 1995 and $6.00 per week less then the J&J Motors contributions in 1996. (Exs. 218, 254 and 292) In addition, the mileage rates and expense allowances Premier was required to pay its employees is less than those J&J Motors must pay its employees. (Exs. 218, 254 and 292)
 

178 DeAngelo testified that after the Central States Pension Fund filed the suit against Premier, he paid $12,000 to the Central States Pension Fund on behalf of Premier. (Ex. 34 at 47-49) DeAngelo testified that he believed that the suit the Central States Pension Fund filed was "dropped." (Ex. 34 at 49)
 

179 During his May 30, 1996 sworn examination, DeAngelo testified that within the last three weeks he paid approximately $10,000 in back payments to the Local 714 Health Fund. (Ex. 34 at
 

50)   During his sworn examination, DeAngelo testified that he
believed that Premier was approximately two months behind in
 

Boscarino is also an officer of American Trade Show Services ("ATSS") which leases forklifts and aerial lifts to trade show contractors at McCormick Place that have collective bargaining agreements with Local 714. (Ex. 13 at 47-49) ATSS was incorporated on May 15, 1992 with Boscarino as the registered agent. (Ex. 219)¹⁸⁰ The owners of ATSS include: Boscarino, William Daddano, Jr., William Daddano, III, Louis Daddano, John Daddano and Don Stephens. (Ex. 13 at 47-48)¹⁸¹
 

payments to the Local 714 Health Fund. (Ex. 34 at 50)
 

no According to Boscarino, a prior company he was involved with, Eastern Services, Inc., changed its name to American Trade Show Services "for tax or accounting purposes." (Ex. 13 at 100) Eastern Services was incorporated on September 19, 1986. (Ex. 220) The annual reports for Eastern Services for the years 1987 through 1991, reflected that the officers of the company were: Boscarino, William Daddano III, Louis Daddano and Donald E. Stephens. (Ex. 220) Eastern Services was dissolved as an Illinois corporation on February 1, 1993 for failure to file an annual report and pay an annual franchise tax. (Ex. 221)
 

181 Boscarino testified that he believed that American Trade Show Services changed its name to American Show Services at the suggestion of his accountant, Irving Mangurten, for tax and accounting purposes. (Ex. 13 at 121-122) On February 22, 1995, American Show Services was incorporated with Boscarino as the registered agent. (Ex. 222) The address given for this company was Suite 801 at 9501 West Devon in Rosemont, Illinois. (Ex. 222)
 

Although Boscarino testified that he believed that American Trade Show Services became American Show Services, it appears that American Trade Show Services was still in existence after American Show Services was incorporated in February 1995. For example, in May 1996 American Trade Show Services filed an annual report. (Ex. 223) In addition, subsequent to the creation of American Show Services in February 1995, in July 1995, American Trade Show Services filed a form with the Illinois Secretary of State changing its registered office to suite 703 at 9501 West Devon from suite 801 at the same address. (Ex. 224) As noted, the registered address for American Show Services is suite 801 at the same location. (Ex. 222) In addition, there does not appear to be
 

ATSS leases equipment to Freeman, GES and J&J in Chicago. (Ex. 13 at 51-53)   Each of these companies has a collective
bargaining agreement with Local 714. (Exs. 155, 157-58) addition to doing business with Local 714 employers in Illinois, ATSS provided forklifts to Freeman for use at the Jacob Javits Convention Center in New York, New York. (Ex. 13 at 55-56)¹⁸²
 

While the Local 714 chief steward for Rosemont, Boscarino owned companies which did business with Rosemont. Boscarino created serious conflicts of interest. Boscarino selected which members worked for Rosemont. By having several ongoing business interests dependent on Rosemont and other Local 714 employers, Boscarino had an economic interest in maintaining a good relationship with the companies. Rosemont might not favor members who aggressively pursued their contractual rights. Boscarino, a union appointee who acknowledged he would be the first union contact for a member with a problem, was unaware of how a member
 

any record filed with the Illinois Secretary of State changing the name American Trade Show Services to American Show Services.
 

182 During his January 1996 sworn examination, Boscarino testified that ATSS owned 30 forklifts which were in use at the Javits Center in New York and 13 aerial lifts which were in use in Chicago at that time. (Ex. 13 at 55-56)
 

According to Boscarino, Bob Goldman handled the operation of ATSS in New York. (Ex. 13 at 50-51) According to New York corporate records available on Nexis, there was no New York corporation, American Trade Show Services. However, there was an active New York corporation, Eastern Rentals, Inc. and the person listed at the process address for that company was Robert Goldman. (Ex. 225)
 

Although the Secretary-Treasurer knew of some of Boscarino's conflicts (Ex. 1 at 65-70, 74-75), it does not appear he, Boscarino, or any other officer told the members in the trade show division that Boscarino held all these potentially conflicting interests. (Ex. 226) There was never any discussion at any meeting of the trade show members about Boscarino's interests in companies that did business with employers of Teamsters. (Ex. 1 at 75; Ex. 226)
 

In addition to former Rosemont chief steward Boscarino, at least six other Local 714 members who have held positions of authority in the trade show/movie industries also have business interests dependent on companies which employ Local 714 members. The five members with such conflicting interests are: William Hogan, III, James A. Hogan, James F. Hogan, Timothy Maxwell, Dale Torii and Richard DeAngelo. Five of these members are Hogan relatives. As a result, these members occupy positions with at least the appearance of serious conflicts of interests.
 

In the trade show industry, crates are used to ship booths and other items to McCormick Place or other trade show sites. (Ex. 54 at 23-24) During trade shows, the empty crates are stored and when the show is finished the empty crates are returned to be packed for shipment. (Ex. 74 at 24) As a member explained,
 

"[a]ll the freight that comes into the shows in crates and boxes or cartons, all that [sic] empty crates, cartons and whatever, has to be taken out after the show is over." (Ex. 74 at 23) The Local's current collective bargaining agreements with the trade show contractors specifically exclude from coverage the workers who handled moving and storing the empty crates at the trade shows. (Exs. 155-58) Article XIV, Section 7 of the Freeman, Rosemont, GES and J&J collective bargaining agreements provides that "[e]mployees engaged in handling and storage of crates shall not be classified for the duration of this Agreement." (Exs. 155-58)¹⁸³ The workers who handled empty crates were not members of any union. (Ex. 136 at
 

54-56) 184
 

Boscarino's company, Bomark, provided the non-union workers to handle the empty crates at the Rosemont Exposition Center. (Ex. 30 at 37-38; Ex. 15 at 14-15) In addition, it appears that William Hogan, Jr.'s nephew and business agent Robert Hogan's cousin, Ronald Maxwell, Jr., is a part owner of Empties, Inc.,
 

183 According to Robert Hogan, "classified employees" are the employees Hardy referred to work. (Ex. 136 at 59) This provision regarding the employees who handled the crates was also included in the prior collective bargaining agreements for the period from January 1991 through December 1993. (Exs. 227-28)
 

184 Although the workers who handled the empty crates were excluded from the collective bargaining agreements, it appears that in certain circumstances, Local 714 members handled empty crates. For example, as a general rule the non-union workers moved empty crates using dollies but if a forklift was needed to move a crate, then a Teamster would do that. (Ex. 136 at 60-61; Ex. 50 at 47, 55-57; Ex. 74 at 31) In addition, during trade shows at hotels, Local 714 members handled the empty crates using dollies. (Ex. 43 at 13; Ex. 136 at 55) According to Robert Hogan, if there were several crates that must be moved, a contractor could choose to have Local 714 members move the crates. (Ex. 136 at 65)
 

which supplied the non-union workers who handled the empty crates at McCormick Place. (Ex. 74 at 23-29; Ex. 229)¹⁸⁵
 

Trade show business agent Hogan did not know why the workers who handled the empty crates were not within Local 714's jurisdiction. (Ex. 136 at 55) He also testified that Local 714 never sought to represent the workers who handled the empty crates. (Ex. 136 at 56) After reviewing the Local's current collective bargaining agreement with Rosemont, Secretary-Treasurer Hogan testified that this provision was in the contract because,
 

[t]he industry is extremely competitive. If you build too much cost in they will take their shows to other cities. So to have that work done by all Teamsters would be extremely expensive and probably chase the work away.
 

(Ex. 1 at 51) He had "no idea" when the last time the issue of the workers who handle the empty crates was discussed with any of the trade show contractors. (Ex. 1 at 52)¹⁸⁶
 

2.   Bomark Cleaning Services
 

As discussed supra at 80-82, Boscarino is a part-owner of Bomark Cleaning Services. Bomark appears to have supplied non-
 

185 As detailed infra at 106-111, Maxwell was also an owner of Convention Cartage Systems, a company which had a collective bargaining agreement with Local 714. (Ex. 230-31) Since the inception of the collective bargaining agreement with Local 714, Convention Cartage Systems failed to make required contributions on behalf of its employees to the Local 714 Health Fund. (Ex. 232)
 

186 According to President Hogan, non-union workers have "always" handled the empty crates at McCormick Place. (Ex. 135 at 67) He did not know why such workers have handled the empty crates. (Ex. 135 at 67) He thought that in the past the Local tried unsuccessfully to organize one of the day labor service companies. (Ex. 135 at 67)
 

94
 

union workers to Rosemont to handle the empty crates for trade shows. (Ex. 30 at 37-38; Ex. 15 at 14-15)¹⁸⁷ Boscarino's desire for the business for Bomark may have conflicted with the Local's decision as to what work was within its jurisdiction.
 

3.   Empties, Inc.
 

The Secretary-Treasurer's and President's nephew, Ronald Maxwell, Jr., is a part owner and officer of Empties, Inc., which provided non-union labor to trade show contractors with Local 714 collective bargaining agreements. (Ex. 230; Ex. 74 at 23-24, 28-30)¹⁸⁸ On the annual report dated February 14, 1996, Maxwell was listed as the President and only officer of Empties. (Ex. 229)
 

Local 714 member Douglas Marcinek ("Marcinek") was an investor in Empties, Inc.. (Ex. 74 at 23-24)¹⁸⁹ According to Marcinek, Empties was formed after representatives of trade show
 

187 Trade show business agent Robert Hogan testified that employees of Bomark "may" have handled the empty crates at the Rosemont Exposition Center. (Ex. 136 at 63) Hardy testified that he did not know if Bomark was involved in supplying employees to handle empty crates. (Ex. 50 at 60)
 

188 Ronald Maxwell, Jr.'s mother, Mary Jane Maxwell, is William Hogan, Jr.'s sister. (Ex. 78 at 4, 7) Between July 1982 and July 1994, Ronald Maxwell, Jr. was a Local 714 member. (Ex. 233) In addition, his brothers, Daniel, Kevin and Timothy Maxwell are currently Local 714 members. (Ex. 5; Ex. 78 at 3, 7-8) Furthermore, his brother-in-law, Charles Burandt, who is married to his sister Dawn, is also a Local 714 member in the Local's trade show/movie division. (Ex. 5)
 

189 Marcinek testified that other investors in Empties were Bill Glasgow, Jr., Ron Capua, and John Fareg. (Ex. 74 at 26-27) Bill Glasgow and John Fareg were Local 714 members. (Ex. 74 at 32-33) However, they are no longer members of the Local. (Ex. 74 at 32-33)
 

contractors Freeman and GES spoke to Local 714 members and suggested that a company be formed to compete against the company which was providing the workers to handle the empty crates. (Ex. 74 at 23, 28-29)¹⁹⁰
 

Depending upon the size of the trade show, Empties supplied between twenty and sixty workers to the trade show contractors to handle the empty crates. (Ex. 74 at 36) Empties obtained workers to supply to the show contractor from temporary labor services including ReadyMen and Labor World which labor service paid them minimum wage. (Ex. 74 at 26, 30, 36) In 1995 investors in Empties received $8,000 each. (Ex. 74 at 32)¹⁹¹
 

G.   Sham Contracts and Ineligible Members
 

1.   The Weinbergs
 

The Local 714 employer roster dated September 14, 1995 listed "S & J" as a company with a Local 714 collective bargaining agreement and two members. (Ex. 132) The two Local 714 members reportedly employed at S & J Scrap were Brian and Sheldon Weinberg. (Ex. 137 at 17; Ex. 234)   Local 714 has never had a signed
 

190 Marcinek testified that the company which had been supplying the non-union workers to handle the empty crates was Jerry Wieland or Wieland Services. (Ex. 74 at 23-24)
 

191 It appears that in the past, William Hogan, Jr.'s brother, Michael Hogan, Sr. may have been involved with a company that supplied non-union workers to handle the empty crates. (Ex. 34 at 6) According to Michael Hogan, Jr., his father, Michael Hogan, Sr., worked for United Maintenance. (Ex. 53 at 19) United Maintenance arranged for a temporary labor service, ReadyMen, to provide workers to handle the empty crates at McCormick Place. (Ex. 53 at 19, 23)
 

collective bargaining agreement with S & J Scrap. (Ex. 135 at 31; Ex. 137 at 23)¹⁹² There is no S & J Scrap at the location listed on the September 1995 employer roster; at this location is a used car lot, Wayne Motors. (Ex. 135 at 30, 38)¹⁹³
 

On February 23, 1996, Brian and Sheldon Weinberg each failed to appear for his noticed IRB sworn examination. (Exs. 236-37) On June 7, 1996, the IRB recommended to the Local 714 Executive Board that the Weinbergs be charged with failing to cooperate with the IRB. (Ex. 127) On July 22, 1996 the Local's Executive Board permanently barred the Weinbergs from the IBT. (Ex. 310)
 

The Titan dues printouts for Brian and Sheldon Weinberg reflected that they joined Local 714 on April 1, 1990 and January 1, 1989 respectively. (Exs. 242-43)¹⁹⁴ By letters dated February 14, 1996 and April 25, 1996, the Chief Investigator's office
 

192 On the Local 714 employer roster dated September 1995 this company is referred to as "S & J." (Ex. 132) However, as discussed below, on other Local records, for example the membership list, this company is referred to as S & J Scrap. (Ex. 234) For purposes of this report, S & J and S & J Scrap are used interchangeably.
 

193 An on line review of Illinois Secretary of State documents disclosed no record of incorporation in the name S & J Scrap. In addition, there was no phone listing for S & J or S & J Scrap in the Chicago area. (Ex. 235) Furthermore, Local 714 Vice President Arrington testified that he did not see evidence of a company S & J Scrap at the address for S & J Scrap in Local 714 records. (Ex. 137 at 17, 22)
 

194 Although both Weinbergs were Local members at the time, an employer list Local 714 furnished to the Chief Investigator in response to a March 31, 1994 request did not reflect S & J Scrap as a company under contract with the Local (Ex. 238) In addition, an employer list dated August 30, 1991 did not list S & J Scrap as an employer under contract with Local 714. (Ex. 239)
 

requested that Local 714 provide a copy of the Local's collective bargaining agreement with S & J. (Ex. 240)¹⁹⁵ Subsequent to those requests, on March 5, 1996 Local 714 issued withdrawal cards to the Weinbergs. (Exs. 242-43) President Hogan testified that he directed these withdrawal cards be issued after he became aware that a used car lot was located at the address listed for S & J Scrap. (Ex. 135 at 35)¹⁹⁶
 

By letter dated May 3, 1996, the Local provided an unsigned collective bargaining agreement between Local 714 and S & J covering February 1, 1989 through January 31, 1992. (Ex. 165 and 244) This unsigned agreement, which purported to cover "all production, maintenance, shipping and receiving room employees", provided for employer contributions to the Local 714 Metal Industry Health and Welfare Fund. (Ex. 244) According to President Hogan, the Weinbergs received hospitalization benefits through this Fund and the Fund recently sued the Weinbergs "to recover whatever losses there were." (Ex. 135 at 34)
 

President Hogan asserted that he first learned the Local did not have a signed collective bargaining agreement with S & J in about September or October 1994 when he reviewed a "contract on file" list the Local maintained. (Ex. 135 at 26-27; Ex. 245) He also realized then that no business agent was assigned to S & J.
 

195 During the Chief Investigator's review of records at the Local 714 offices in December 1995, the Local was also requested to provide copies of several collective bargaining agreements, including the collective bargaining agreement for S & J. (Ex. 241)
 

196 President Hogan testified that it was his understanding that the Weinbergs were used car salesmen. (Ex. 135 at 39)
 

(Ex. 135 at 27-28)¹⁹⁷ At that time he assigned Arrington to obtain a signed collective bargaining agreement. (Ex. 135 at 27-28) Vice President Arrington stated that he first learned of the Local's failure to have a signed collective bargaining agreement with S & J in late 1994 from President Hogan. (Ex. 137 at 14-15)
 

Although both Hogan and Arrington knew in the fall of 1994 the agreement with S & J was unsigned, no action was taken concerning this until after the Chief Investigator's office requested information concerning S & J. President Hogan claimed he first became aware "that S & J Scrap was not a scrap operation" as a result of an IRB request for the collective bargaining agreement with S & J Scrap. (Ex. 135 at 25, 35) He explained the lack of a signed agreement as a result of Arrington's pattern of neglecting to get contracts signed. He stated,
 

it is not at all uncommon for Marshall to have contracts that are ratified and agreed upon and not signed for a year or two and they would continue to appear on this contract on file list and he would be continually reminded to get these contracts signed.
 

Arrington testified that after James M. Hogan spoke to him a second time about S & J Scrap in approximately 1996, he determined that Wayne Motors, Inc., a used car lot, occupied the
 

When Arrington went to Wayne Motors, he spoke to Sheldon Weinberg. Arrington believed that Weinberg was "evading" his questions. (Ex. 137 at 17-19) Arrington also spoke to Brian Weinberg. Brian Weinberg told Arrington that a friend of his father's spoke to William Hogan, Sr. about the Weinbergs becoming members. (Ex. 137 at 20) Arrington could not recall the name of either Weinberg's father or his father's friend. (Ex. 137 at 20)¹⁹⁹ President Hogan testified that his father told him that he did not know anything about S & J Scrap and did not know the Weinbergs. (Ex. 135 at 31)
 

2.   James F. Hogan
 

During his sworn examination, James F. Hogan, a cousin of the Hogans who joined Local 714 in approximately 1969, testified that between approximately 1981 and 1985 he was "an operations manager" for Rosemont, a Local 714 employer. (Ex. 52 at 4)²⁰⁰
 

198 According to Illinois corporate records, Wayne Motors, Inc. was incorporated on March 16, 1978. (Ex. 246) The President of Wayne Motors was Sheldon Weinberg and the Secretary was Dolores Weinberg. (Ex. 246) The address for Sheldon Weinberg on the 1995 annual report Wayne Motors filed with the Illinois Secretary of State was the same address for Sheldon Weinberg on the Local 714 August 30, 1995 membership list. (Exs. 246-47) An IBT Titan list of employers with contracts with Local 714 as of July 5, 1995 listed an employer as: "S & J Scrap Inc. c/o Wayne Motor." (Ex. 248)
 

199 According to Arrington, Brian Weinberg told him that his father was a Local 714 member employed at S & J Scrap. (Ex. 137 at 20-21)
 

²⁰⁰ James F. Hogan testified that it was "unclear" whether an operations manager was a position covered under the Local's collective bargaining agreement with Rosemont. (Ex. 52 at 5) He remained a union member while the operations manager because he
 

Secretary-Treasurer Hogan testified that his cousin James worked for Rosemont as an account executive, a position not within the Local 714 bargaining unit. (Ex. 1 at 59-60) Hardy testified that he believed that during the time James F. Hogan worked as an account executive for Rosemont, he was not a member of the Teamsters. (Ex. 50 at 9) James F. Hogan, however, testified that since 1969 his Local membership was continuous and while he was the operations manager for Rosemont he remained a Local 714 member. (Ex. 52 at 3-5) Accordingly, it appears that while not employed within the bargaining unit Local 714 represented, James F. Hogan was permitted to remain a union member.
 

3.   Vincent Siciliano
 

James F. Hogan was not the only person permitted to be a Local 714 member while working in a non-bargaining unit position for a trade show contractor. For example, Vincent Siciliano, who works as a freight supervisor for GES, is a Local 714 member. (Ex. 105 at 3, 11) According to Siciliano, there are five other freight supervisors at GES who are not Local 714 members. (Ex. 105 at 12) The Local's collective bargaining agreement with GES does not include freight supervisors in the bargaining unit. (Ex. 157 at 14) Siciliano was not paid pursuant to the Local's collective bargaining agreement with GES. (Ex. 105 at 13-14; Ex. 157 at 14) Prior to becoming a Local 714 member, Siciliano worked for O'Hare
 

stated he, "wanted to keep my continuous time running." (Ex. 52 at 5) He testified that when he was the operations manager he was paid according to the collective bargaining agreement between Rosemont and Local 714. (Ex. 52 at 5-6)
 

Exposition Maintenance, a company Michael Hogan, Sr. owned. (Ex. 105 at 3-4)
 

When asked how he came to be the only freight supervisor who was a union member, Siciliano testified, "I've maintained my teamster benefits throughout the employment. That was the agreement we had when I came on board with Andrews Bartlett [a trade show contractor] and it's continued through GES." (Ex. 105 at 12) Siciliano testified that he did not know who from Local 714 agreed to allow him to be a member of the union. (Ex. 105 at 13) As a member of the Local, Siciliano was entitled to attend Local membership meetings and vote for candidates, although he testified that he did not attend such meetings. (Ex. 105 at 17)
 

Charles W. Miller ("Miller"), a former Local 714 member, is currently incarcerated. He was permitted to continue his Local 714 membership while he was in prison. According to his dues records, Miller first paid dues to the Local on February 17, 1994 after his conviction and while his appeal was pending. (Exs. 171,
 

201 William Hogan, Jr. testified that in the past parole officers contacted Local 714 to place individuals to work at McCormick Place in order to assist such individuals to get out of prison. (Ex. 1 at 109; Ex. 308 at 11) As is evident from decades of practice, good jobs for felons was a more important consideration for the Hogans' assignments in the trade show/movie division than allowing Local 714 members from other employers to have better opportunities. As detailed supra at 21, fn. 34, former chief steward Kaye was permitted to remain the chief steward after his conviction for taking money from trade show contractors for work he did not perform. In addition, as detailed supra at 47-48,
 

On July 23, 1992, Miller was convicted of felony charges in connection with the theft of $187,000 in diamonds from an Illinois jewelry salesman in Fond du Lac, Wisconsin. (Ex. 172) On August 18, 1994, Miller began serving an eight year sentence at a correctional facility in Wisconsin. (Ex. 172)
 

On January 3, 1996, a notice of sworn examination was sent to Miller at 2681 Rusty Drive, Des Plaines, Illinois as reflected on the Local's June 1995 membership records scheduling his sworn examination for January 18, 1996. (Exs. 173-74) On or about January 10, 1996, a lawyer contacted the Chief Investigator's office and advised that his client, Local 714 member Miller, was incarcerated. (Ex. 175)
 

According to Miller's dues records, subsequent to August 18, 1994 when he was incarcerated in Wisconsin, his quarterly union dues were paid on the following dates: December 10, 1994, March 13, 1995 and July 11, 1995. (Ex. 171) On September 18, 1995, he was issued a withdrawal card from Local 714. (Ex. 171)
 

On January 11, 1996, the Chief Investigator's office sent to Secretary-Treasurer Hogan six questions and a request for
 

transportation coordinator George DiLeonardi became a member of the Local's trade show/movie division after being convicted of a felony. Furthermore, Eddie Smith, Jr. became a Local 714 member in the trade show/movie division in approximately April 1986 after he served approximately five years of a fifteen year federal sentence for possession with intent to distribute cocaine. (Ex. 109 at 6-8; Ex. 133) Smith began working in the trade show/movie division after a Carpenters union official introduced Smith to then Secretary Treasurer Hogan, Sr.. (Ex. 109 at 3-5)
 

documents regarding Miller. (Ex. 176)²⁰² In response to this request, Local 714's counsel provided an affidavit from Miller dated January 18, 1996. (Ex. 177) In this affidavit, Miller stated "I am a member of Teamster Local Union Number 714" and further stated that his father paid his union dues by personal check. (Ex.
 

177) Miller also stated that from September 9, 1994 to the present, "I do not know whether I was, or was not, a participant in the Local 714 Health and Welfare Fund, the Central State's [sic] Pension Fund or any other Teamster related pension fund . . .." (Ex. 177)²⁰³ By letter dated February 1, 1996, Local 714's counsel provided an affidavit from William Hogan, Jr. denying any personal knowledge responsive to the questions regarding Miller and stating that Local 714 records did not provide answers. (Ex. 178) Secretary-Treasurer Hogan refused to review Local 714 Health Fund records to respond to the Chief Investigator's inquiries which included the question of whether Miller participated in the Local's Health Fund subsequent to September 1994. (Exs. 177 and 178)
 

2°2 This request was made pursuant to Paragraph G of the March 14, 1989 Consent Decree in United States v. IBT, 88 Civ. 4486 (S.D.N.Y.). The questions posed to Secretary-Treasurer Hogan included how Miller's dues were paid, for which employers he worked and whether he participated in the Local 714 Health Fund or other IBT affiliated benefit funds after September 1994. (Ex. 176)
 

203 In addition, Miller stated,
 

I do not remember making any contributions personally, nor do I remember my father making any in my behalf to the Local 714 Health and Welfare Fund, the Central State's [sic] Pension Fund or any other Teamster related pension fund from September 9, 1994, to the present.
 

(Ex. 177)
 

The ease with which Miller could remain a member while in prison and the trade show/movie division's members' power as a voting bloc raise troubling questions. See, supra at 60-62. Moreover, the Secretary-Treasurer's refusal to review the records is another piece of evidence indicating claims of desire to reform are hollow in this Local.
 

Vernon Stoub is an owner of Standard Cartage and signed the Local's collective bargaining agreement on behalf of the company. (Ex. 249 at 9, 20-21; Ex. 250) Vernon Stoub and his brother, John Stoub, who is also an owner of Standard Cartage, are both members of Local 714. (Ex. 249 at 3, 6)
 

Currently, Vernon and John Stoub are the only Local 714 members employed at Standard Cartage. (Ex. 249 at 7-8) According to Vernon Stoub, in addition to being an owner of the company, he is a machinery driver at Standard. (Ex. 249 at 8-9) Other drivers at Standard, whom Stoub described as freight drivers, are members of IBT Local 705. (Ex. 249 at 6) Stoub is not paid pursuant to the Local 714 collective bargaining agreement. (Ex. 249 at 16; Ex. 250) Stoub testified that he is member of the Local,
 

[b]ecause for the convenience of the health and welfare benefits. Being management, I probably don't have to be a member and I had -- by the time I became an owner, I had 15 years in and I wanted to get a full pension. I was probably vested already, but it was convenient.
 

Local 714 has a collective bargaining agreement with Convention Cartage Systems ("Convention") which the Secretary-Treasurer's and President's nephew, Ronald E. Maxwell, Jr. ("Maxwell"), owns. (Ex. 231; Ex. 135 at 52)²⁰⁴ Recording Secretary Robert Hogan negotiated this collective bargaining agreement with his cousin in about May 1994. (Ex. 231; Ex. 136 at 24) Since the start of its contractual obligations in May 1994, Convention failed to make contributions to the Local 714 Health and Welfare Fund on behalf of the Local 714 members it employed. (Ex. 232) As discussed infra at 110, on or about May 7, 1996, after the IRB investigation of Local 714 began, the Local 714 Health and Welfare Fund filed a lawsuit against Convention seeking $50,000 in back contributions. (Ex. 232)
 

According to Illinois corporate records, Convention was incorporated on August 24, 1993 and Maxwell was listed as the registered agent. (Ex. 230) On the annual report Convention filed dated September 26, 1994, Maxwell was listed as the company President. (Ex. 230)
 

Maxwell became a Local member in July 1982. (Ex. 233)²⁰⁵
 

204 Local 714 member Dan Maxwell, testified that his brother Ronald was an owner and officer of Convention. (Ex. 78 at 10-11) According to Dan Maxwell, John Fareg was Ronald Maxwell's partner in Convention. (Ex. 78 at 10-11) Fareg was a Local 714 member in the Local's trade show/movie division. (Ex. 78 at 11)
 

205 Maxwell's three brothers, Daniel, Kevin and Timothy, are also Local 714 members in the trade show/movie division. (Ex. 5) In addition, Maxwell's brother-in-law, Charles Burandt, is also a Local 714 member in the trade show/movie division. (Ex. 5)
 

On a March 31, 1994 Local 714 membership list, he was listed as being employed in the Local's trade show division. (Ex. 252)²°6
 

On or about May 1, 1994, while he was a Local 714 member, Maxwell signed a collective bargaining agreement with Local 714 on behalf of Convention. (Exs. 231 and 233) His uncle, President Hogan, and his cousin, Recording Secretary Hogan, signed on behalf of the Local. (Ex. 231; Ex. 135 at 53-54) This contract was effective from May 1, 1994 through April 30, 1997. (Ex. 231) As of September 1995, there were twelve members employed at Convention Cartage. (Ex. 132)²°⁷ On or about July 20, 1994, Ronald Maxwell, Jr. took a withdrawal card from Local 714. (Ex. 233)
 

Several Executive Board members and business agents testified that they were not aware that Local 714 had entered into a collective bargaining agreement with a company William Hogan, Jr.'s nephew owned. (Ex. 139 at 14-15; Ex. 138 at 37; Ex. 137 at 35; Ex. 140 at 17)²⁰⁸ There were no discussions at any Executive Board meeting about the Local negotiating a collective bargaining
 

2°6 As discussed supra at 92-96, while he was a Local 714 member Maxwell also formed a company Empties, Inc. which provides non-union temporary labor to trade show contractors to move and store empty crates at McCormick Place. (Ex. 74 at 23) Also while a Local 714 member, Maxwell was an owner of a company, Maxron, which hauled air freight. (Ex. 136 at 27; Ex. 191) Maxron picked up small freight packages at the Rosemont Exposition Center. (Ex. 15 at 12) Local 714 never had a collective bargaining agreement with Maxron. (Ex. 136 at 29)
 

207 Robert Hogan testified that Convention probably had employees who were not Local members employed in the office. He never sought to organize these employees. (Ex. 136 at 31)
 

208 Indeed, Maxwell's brother, Local 714 member Dan Maxwell, testified that he did not know if Convention had a collective bargaining agreement with Local 714. (Ex. 78 at 11)
 

agreement with the nephew of the principal officer and the Local's President and allowing the employer's cousin to be the business agent assigned to the company. (Ex. 253; Ex. 135 at 52-53; Ex. 136 at 25)
 

Convention hauled freight at McCormick Place for Freeman and GES which both have contracts with Local 714. (Ex. 136 at 24; Ex. 150 at 18; Ex. 50 at 17) Convention also hauled freight at the Rosemont Exposition Center. (Ex. 30 at 29-30) Chief steward and Trustee Hardy testified that he knew Convention hauled freight at McCormick Place but did not know if Local 714 had a contract with it. (Ex. 50 at 17)²⁰⁹ In contrast to Hardy's testimony, a Local 714 trade show/movie division member testified that Hardy assigned him to work as a driver for Convention. (Ex. 11 at 21-22)
 

Maxwell hired his cousin, Brian Hogan, President Hogan's son, to work for Convention loading and unloading trucks at its warehouse. (Ex. 150 at 4) He worked at Convention from approximately August 1994 through July 1995 and became a Local 714 member as a result of his employment at Convention. (Ex. 150 at 4-5)
 

According to Robert Hogan, he negotiated a collective bargaining agreement with his cousin because a now deceased member of the Local's trade show/movie division, Bill Woods, began to work for Convention. (Ex. 136 at 24-25, 30) After Woods told Robert Hogan that he wanted to join the union, Hogan contacted Maxwell.
 

2°9 Hardy testified that he "heard" that Maxwell was involved in Convention, but he did not know if Maxwell was the owner of that company. (Ex. 50 at 17-18)
 

(Ex. 136 at 24-25) According to Robert Hogan, Woods knew that Hogan was related to Maxwell. (Ex. 136 at 26) However, as additional employees were hired at Convention, Robert Hogan, the business agent for the company, did not tell the new employees that
 

he was related to Maxwell. (Ex. 136 at 31) For example, a Convention employee testified that he did not know who owned Convention and did not know if Maxwell was related to William Hogan, Jr.. (Ex. 11 at 23-25)
 

President Hogan gave a different explanation. According to him, Maxwell explained he was going into the trucking business and wanted a contract with Local 714. (Ex. 135 at 54) President Hogan testified that he told Maxwell to work out an agreement with Robert Hogan with the understanding that "the terms and conditions will be the same as all other trucking contractors in the industry". (Ex. 135 at 54-55) He further testified that when negotiating the Convention contract, the Local 714 contract with J&J Motors was followed. (Ex. 135 at 55)
 

The Local 714 contracts for Convention and J&J Motors were not identical. A difference is that in the current J&J Motors contract the employer pension fund contributions on behalf of covered employees were $18.00 more per week for the first two years of the contract and $16.00 more per week for the last year of the contract than the contributions Convention Cartage was required to make. (Exs. 231, 254 and 292)²¹⁰
 

210 However, the hourly rate Convention Cartage was required to pay straight truck drivers was $.41 more than the J&J Motors hourly rate for each year the contracts covered. (Exs. 231, 254 and
 

On May 7, 1996, after the Chief Investigator's investigation began, the Local 714 Health and Welfare Fund filed a complaint against Convention Cartage in U. S. District Court for the Northern District of Illinois seeking to recover "in excess of $50,000" in contributions Convention failed to make on behalf of its employees to the Local 714 Health Fund. (Ex. 232) According to the complaint, since May 1994, which was the effective date of the collective bargaining agreement with the company, Convention had failed to make contributions on behalf of its employees to the Fund. (Exs. 231 and 232)²¹¹
 

It is unclear whether Convention is still in existence. According to Robert Hogan, Convention went out of business sometime in 1995. (Ex. 136 at 23)²¹² President Hogan testified that he believed that the company may have "either merged or -- some kind of a change in ownership or the structure of their business, but I'm not sure what it was." (Ex. 135 at 52)²¹³
 

Maxwell's brother, Local 714 member Kevin Maxwell,
 

292) The hourly rate for other truck drivers was the same in the J&J Motors and Convention Cartage contracts. (Ex. 231, 254 and 292)
 

211 On July 15, 1996 a default order was entered against Convention Cartage and the company was ordered to provide payroll records and Illinois tax returns for the period of January 1, 1994 to July 15, 1996 to the Local 714 Health and Welfare Fund. The matter was adjourned to August 29, 1996. (Ex. 251)
 

212 According to Robert Hogan, after Convention Cartage went out of business, Maxwell began "brokering", which Hogan defined as being involved in arranging for freight to be moved out of McCormick Place. (Ex. 136 at 29)
 

213 On February 1, 1996, a federal tax lien was filed against Convention Cartage Systems for failure to pay federal withholding taxes and other federal taxes totaling $261,330.24. (Ex. 255)
 

believed that Convention was still in existence. (Ex. 79 at 9) In addition, Harry Connor, a Local member who is the foreman at the GES warehouse and is involved in a business with Ronald Maxwell, Jr.'s wife, also testified that he believed that Convention was in business. (Ex. 256 at 29-30)²¹⁴ According to information available on Nexis, Convention Cartage filed an annual report and paid a franchise tax on January 8, 1996. (Ex. 258)
 

Local 714 has a collective bargaining agreement with an employer, Consolidated Film Delivery ("Consolidated"), where an officer of the company, Richard McLaughlin, was included in the bargaining unit and, in fact, was its shop steward. (Ex. 128; Exs. 239, 259-60) The Local's collective bargaining agreement with this company provided: "[t]he Company may include their own office help or any one they choose [in the Local's Health Fund] providing the law will allow them." (Ex. 128 at 5)²¹⁵
 

Consolidated was incorporated on September 5, 1990. (Ex.
 

214 Local 714 member Harry Connor, along with Local members Dale Torii, James Smith, Robert E. Hogan, Anthony Pomonis, Robert Kulak, Douglas Marcinek and Terence Sweet, and Weleska Maxwell, Ronald Maxwell's wife, are owners of First Class Furnishings, a company which does business in the trade show industry. (Ex. 256 at 15-16; Ex. 133; Ex. 257)
 

215 When asked who would be responsible for monitoring whether Consolidated allowed anyone they chose to join the Local's Health Fund, President James M. Hogan responded, "I don't think anyone would monitor that unless they were aware of it being in there." (Ex. 135 at 49)
 

259)²¹⁶ The Illinois corporate records available on NEXIS listed Richard McLaughlin as Secretary and Rosemary Martin as President. (Ex. 259) According to the Local 714 employer roster dated September 1995, there were two Local 714 members employed at Consolidated. (Ex. 132) McLaughlin was one of them. (Ex. 290)²¹⁷ The address given for Local 714 member McLaughlin was the same as the address for the McLaughlin listed as a company officer. (Ex. 259-260)
 

Vendafreddo, the President's and Secretary-Treasurer's brother-in-law, has been the business agent for Consolidated for the last nine years. (Ex. 140 at 34-35, 40)²¹⁸ Both President Hogan and Vendafreddo signed the collective bargaining agreement. (Ex. 128; Ex. 135 at 41; Ex. 140 at 39) Hogan testified that although he signed the contract, he had "no idea whatsoever" how the provision in the contract which allowed the employer to place "any one" in the Local's health fund became part of the Local's contract. (Ex. 135 at 48)²¹⁹
 

216 According to President Hogan, this company delivered film to movie theaters. (Ex. 135 at 40)
 

217 The other member was Jerome Bruen. (Ex. 290)
 

218 Although Vendafreddo was the business agent for Consolidated, he testified that he did not know the job classifications of employees Consolidated employed. (Ex. 140 at 35-36) Vendafreddo testified that Local 714 represented two or three employees at Consolidated and he did not know if the company had any other employees. (Ex. 140 at 35-37)
 

219 During his sworn examination, President Hogan testified that the provision which allowed the employer to place any one in the Local's Health Fund might have been carried over from previous collective bargaining agreements which may have been negotiated by Teamster Local 755 which merged with Local 714. (Ex. 135 at 47)
 

Vendafreddo also could not explain how that language came to be part of the agreement. (Ex. 140 at 42)²²⁰ President Hogan could not explain how a Consolidated officer came to be a member of Local 714 and a Local steward. (Ex. 135 at 45)
 

H. The Inadequacy of Local 714's Purported Self Reforms 1.   Introduction
 

Recently, Local 714 took various actions in apparent response to IRB inquiries. These fall short of needed reform and appear solely to be window dressing. No steps addressed the historic unfairness of the Local's assignment of work in the trade show/movie division to the favored relatives and friends who were allowed entry into that division.
 

The Local's leadership has a pattern of only acting when something is brought to light by an outsider. For example, only after IRB inquiries regarding Convention, did the Local's Health Fund file a lawsuit against the Hogan relative's company based upon the company's failure to make requisite health fund contributions from the start of its collective bargaining agreement.
 

Another example of the Local's failure to take serious
 

However, Consolidated was incorporated in 1990, at least fifteen years after the merger of Locals 755 and 714. (Ex. 135 at 47) In any event, the possibility that such language may have been included in previous contracts, did not provide an explanation for why such language was included in a Local 714 collective bargaining agreement effective July 1, 1994.
 

220 When asked whether office employees of Consolidated participated in the Local's health plan, Vendafreddo testified, "I have no idea. I would be guessing no, but I don't know." (Ex. 140 at 43)
 

steps toward self-reform was the Local's continued failure to hold the requisite number of Executive Board and membership meetings after being advised to do so by an IBT auditor in August 1995. As discussed infra at 118-120, the Local's recent actions are reminiscent of the intended cosmetic action the Local took in the 1970s after it was publicized that organized crime figures were employed as Local 714 members at McCormick Place.
 

during the course of the investigation.2²¹ The Miller report contained no explanation for why written statements were not taken in late 1994 or early 1995 of the two transportation coordinators who occupied these apparently conflicted positions. (Ex. 129)
 

addition to the four signed statements taken in late 1994 or early 1995, it appears that during the course of the Miller investigation the only other members who were interviewed were the Secretary-Treasurer, President and business agent Robert Hogan. (Ex. 129 at
 

1- 2) 222
 

It appears that after the written statements in late 1994 or early 1995, Miller conducted no further investigation until 1996 when the IRB began conducting sworn examinations of members in the trade show/movie division.²²³ Accordingly, it appears that the Miller investigation was dormant until the IRB began its investigation in late 1995 at which time the Miller investigation tried to anticipate the IRB's findings.
 

221 William Hogan, III was an owner of three companies, Movies in Motion/SJB Rentals, H & M Rentals and Art's RV Sewer and Septic, which did business in the movie industry with employers of Local 714 members. (Ex. 57 at 16, 22, 25; Ex. 72 at 14) Similarly, transportation coordinator Richard DeAngelo was a part owner of Premier Fuel and Cartage which did business in both the trade show and movie industries with employers of Local 714 members. (Ex. 34 at 16-20)
 

222 It is unclear from the Miller report when the interviews of the three Hogan officers took place. In addition to these interviews, Miller reviewed certain of the IRB sworn examinations which Local 714's counsel forwarded to him. (Ex. 129 at 2) The IRB sworn examinations began in January 1996.
 

223 In an August 18, 1994 letter, Miller estimated that his investigation would take approximately sixty days to complete. (Ex. 304)
 

In his report Miller wrote,
 

this investigation did not turn up indications that any Local 714 officers or representative [sic] sought to influence the business decisions of members in movie coordinator positions. Nevertheless, because some may perceive that Local 714 officials are making decisions involving coordinators and others based upon whether they do business with relatives of the Hogans who hold office in Local 714, we believe the Local Union's policy should be put in writing and communicated to the coordinators and others concerned.
 

(Ex. 129 at 33) After making this finding, Miller recommended that,
 

[t]he personal history information and background check requirements required for appointment to referral officer, chief steward, steward or coordinator positions should include the disclosure of and an investigation into any financial interests the member or members of his immediate family may have in firms whose businesses consist in substantial part of providing equipment, goods or services to employers that employ members of Local 714. No person who will retain such an interest after taking the referral position should be appointed to the lob. The personal history information disclosures should be updated regularly.
 

(Ex. 129 at 33-34; emphasis added) On June 18, 1996, the Executive Board adopted the recommendations in the Miller report. (Ex. 130)²²⁴ However, after an Executive Board meeting on July 3, 1996,
 

224 The Local's Executive Board adopted various Miller recommendations including the requirement that members and extras in the trade show/movie division file disclosure statements listing any criminal record and any business interests they or their immediate families have with companies whose "businesses consist in substantial part of providing equipment, goods, or services to employers that employ members of Local 714." (Ex. 129 at 34; Ex.