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Hogan, William T Jr.
T0: Members of the General Executive Board
From: members of the Internal Review Board
RE: Proposed Charges Against International
Representative Dane Passo and International
Representative and Joint Council 25 President
William T. Hogan, Jr.
DATE: May 23, 2001
--------------- -
I. RECOMMENDATION
The Independent Review Board ("IRB") refers the below
report to the IBT General Executive Board and recommends that
charges be filed against International Representatives Dane Passo
("Passo") and William T. Hogan, Jr. ("Hogan"). Hogan is also
President of Joint Council 25, Vice President of Local 179 and
Political and Organizing Director for Local 714. Based upon the
evidence detailed below, it appears that Passo and Hogan colluded
with Richard Simon ("Simon"), the CEO of United Service Companies
("United"), to enter into a substandard contract and to have United
employees perform Teamster work in the Las Vegas trade show and
convention industries for less pay and benefit fund contributions
than the existing collective bargaining agreement required. As
part of this scheme, which was to the detriment of IBT Local 631
and its members, Passo and Hogan attempted to cause Local 631
officials to enter into a substandard agreement with Simon's
company, of which Hogan's brother, Michael, was an officer. In
apparent violation of IBT procedures, before trying to persuade
Local 631 officials to enter into a substandard agreement with
United, Passo and Hogan never spoke to any United employee or
caused any IBT employee to do so. The United employees did not
designate the IBT or local 631 as their bargaining agent. As part
of this scheme, Passo falsely claimed to the Local 631
International Trustee that high-ranking IBT officials approved the
agreement with United and also lied to his supervisor at the IBT
about the extent of concessions he was urging on the Local on
behalf of the employer.
By their conduct, it appears that Passo and Hogan brought
reproach upon the IBT and breached their fiduciary duties to the
IBT and its members in violation of Article II, Section 2(a) and
Article XIX, Section 7(b)(1) and (2) of the IBT Constitution.
II. SUMMARY
A. Passo and Hogan Colluded with an Employer to Attempt to
Impose a Substandard Contract on Local 631
IBT Local 631, located in Las Vegas, Nevada, represents
approximately 4,800 members, approximately 1,400 of whom work in
the trade show and convention industries. (Ex. 1 at 192; Ex. 2 at
101) Local 631 is a member of Joint Council 42 in Los Angeles.
Timothy Murphy ("Murphy"), in an election with multiple candidates,
was elected principal officer of Local 631 for the term beginning
January 1, 1999. (Ex. 3)
Local 631 had a master contract with trade show
2
contractors in Las Vegas, referred to as the "red book" contract.
(Ex. 4; Ex. 6 at 106) The two main trade show contractors in Las
Vegas were Greyhound Exposition Services ("GES") and Freeman
Decorating ("Freeman"). The bargaining unit in the red book
contract included most of the work in the convention industry in
Las Vegas. (Ex. 5 at 52-53; Ex. 6 at 232-34) Pursuant to Article
I, Section E of the red book agreement, the contractors were
required to contact the Local 631 dispatch office for workers. (Ex.
4 at 3-4) The Local 631 dispatch office would then send
individuals registered with the dispatch office to work with a
written dispatch form. (Ex. 7 at 78-79) Nevada is a right to work
state. Members and non-members were eligible to register with the
dispatch office for work. (Ex. 4 at 3-4; Ex. 77) Non-members paid
the Local a monthly dispatch fee and could not be discriminated
against. (Ex. 8 at 18; Ex. 77)
The minimum hourly wage rate under the red book agreement
was $12.49 per hour. (Ex. 4 at 11) In addition, as of June 1,
2000, employers were required to make contributions of $3.75 per
hour for health and welfare benefits and $4.15 per hour to the
Western Conference of Teamsters Pension Fund. (Ex. 4 at 26-27)
Accordingly, the minimum hourly cost to the employer under the red
book agreement was $20.39. (Ex. 4) In addition, there were also
overtime and holiday pay provisions. (Ex. 4 at 13) Moreover, the
red book contract had a "most favored nations" clause which
3
provided that if Local 631 entered into any agreement with a
general contractor or independent contractor engaged in convention
services work at terms more favorable to that employer, the
signatories to the red book agreement could immediately incorporate
those more favorable terms into the red book agreement. (Ex. 4 at
32)
Occasionally, because of an unusually large demand for
workers, the Local 631 dispatch office was unable to fill the trade
show contractor's calls for workers. (Ex. 9 at 37-39; Ex. 8 at 14-
15) If the dispatch office was unable to fill a trade show
contractor's call, the trade show contractors could hire from any
source. (Ex. 2 at 194) Those subcontracted employees were to be
paid the contract rates. The red book contract provided that,
[i]t is the Company's intent in subcontracting
any work of a substantial, major or continuous
nature which is covered by this Agreement with
any person, firm, corporation, partnership, or
other organization to require the
subcontractor to observe the applicable wage
rates, hours, and working conditions as set
forth in this Agreement.
(Ex. 4 at 12)
In November 1999, Passo, who was then Special Assistant
to IBT General President James Hoffa ("Hoffa"), caused himself to
be assigned as Hoffa's Personal Representative to Local 631. (Ex.
20 at 113-14; Ex. 10)1 At the same time, Hoffa appointed James
___________________
1 As detailed below, from March 1999 through October 1, 2000,
Passo was Special Assistant to General President Hoffa and an
4
Santangelo ("Santangelo"), an IBT Vice President and also the
President of Joint Council 42 and the Secretary-Treasurer of Local
848, to be another of his personal representatives to local 531
(Ex. 13)
On April 5, 2000, Hoffa placed Local 631 in Trusteeship.
(Ex. 14) As detailed below, according to the Trusteeship Notice,
it was placed in Trusteeship because of member dissatisfaction with
the Local's officers, the failure to process grievances, the
subcontracting to non-Teamster employers work Teamsters had
performed, the termination of a business agent for alleged
political reasons and that one of the business agents made an
ethnic slur. (Ex. 14) Hoffa appointed James Wilkerson
("Wilkerson"), the retired principal officer of IBT Local 14 in Las
Vegas, to be Trustee and Marty Frates ("Frates"), a business agent
in Local 70 in Oakland, California, to be Assistant Trustee. (Ex.
14) Passo was Hoffa's monitor over the Local. (Ex. 12 at 76-77)
In June 1999, prior to Local 631 being placed in
Trusteeship, at an IBT Western Region Delegates meeting, Hogan,
then only the Vice President of Local 714, introduced his brother,
Michael P. Hogan, Sr. ("Michael Hogan"), to David Breymann
("Breymann"), then the dispatcher at Local 631. (Ex. 15 at 25-26;
______________________
International Representative. (Ex. 11) Effective October 1, 2000,
Passo was removed as Special Assistant to the General President.
(Ex. 11) He remains an International Representative. (Ex. 11)
Although his title was eliminated, his duties were unchanged. (Ex.
12 at 64, 197-99, 217-18)
5
Ex. 5 at 24-25)2 As detailed below, Michael Hogan was Vice
President 3f United Service Companies, which performed janitorial
and other services in the trade show industry at considerably less
than the IBT contract wages. (Exs. 18-19; Ex. 15 at 18; Ex. 20 at
87) Michael Hogan was also the CEO of Show Biz USA, a trade show
contractor. (Exs. 22-23; Ex. 15 at 18)
In June 1999, Hogan introduced his brother to the Local
631 dispatcher because United, the employer, wanted to enter into
an arrangement with Local 631 to supply labor to trade show
contractors. (Ex. 15 at 22-26)' As detailed below, shortly after
Hogan's June 1999 introduction of his brother to Breymann, United
Vice President Michael Hogan and United CEO Simon met with Murphy,
then Local 631's principal officer, and Breymann to discuss such an
agreement. (Ex. 25 at 25-27; Ex. 5 at 21, 27) Michael Hogan and
Simon proposed that when the Local 631 dispatch office could not
fill a trade show contractor's call for workers, United would
_______________
2 On August 8, 1996, based upon an IRB recommendation, the
IBT placed Local 714 in Trusteeship based upon nepotism, conflicts
of interest and a lack of democratic procedures at the Local. The
majority of issues that caused Local 714 to be placed in
Trusteeship concerned the Local's trade show and movie division.
(Ex. 16) As a result of the Trusteeship, Hogan, who had been the
Local's principal officer, was removed from office. As detailed
below, after the Local was released from Trusteeship, Hogan was
appointed Vice President of Local 714 in early 1999. (Ex. 15 at 10)
On or about March 9, 2000, Hogan was appointed President of Joint
Council 25 in Chicago and in May 2000 Hogan was appointed an
International Representative. (Ex. 15 at 14)
United Temps of Nevada, Inc., one of the United Service
Companies, was incorporated in Nevada on March 1, 1999. (Ex. 24)
6
supply the labor. (Ex. 25 at 25-28; Ex. 5 at 21, 27, 29)4 The
United employees would not be members of Local 631. (Ex. 25 at 114-
115). Under the employer's proposed arrangement, the trade show
contractors would pay United. United would then pay its employees,
who would be paid less than the amount required under the red book
contract. United also would make no benefit fund contributions.
(Ex. 25 at 114-115; Ex. 5 at 29-32) Secretary-Treasurer Murphy and
dispatcher Breymann summarily rejected the proposal. (Ex. 25 at 27-
28; Ex. 5 at 30) When Local 631 was placed in Trusteeship, Murphy
and Breymann were terminated.
As detailed below, prior to Local 631 being placed in
Trusteeship, Passo, Hogan, Santangelo and International
Representative Robert Turner ("Turner") on March 1, 2000 went to
Local 631 to instruct Murphy to take certain actions. (Ex. 15 at
86) At that time, Passo, Santangelo and Turner had each been
appointed Personal Representatives of the General President to
Local 631. (Ex. 32 at 14) Passo brought Hogan, who held no
International position and had no responsibilities with respect to
Local 631, to attend this meeting. (Ex. 21 at 263)
Hogan had no official IBT involvement in Local 631. (Ex.
_________________
4. As detailed below, prior to the Trusteeship, when the Local
631 dispatch office could not meet the trade show contractor's
calls with people registered in the dispatch office, the
dispatchers contacted the other two IBT Locals in Las Vegas and the
Carpenters Union in order to dispatch union members at union wages
to the trade show contractors. (Ex. 5 at 13-14)
7
12 at 60) His previous intrusion into its affairs was based upon
requests from his brother, an employer. Throughout the applicable
period, Hogan would continue to have no official role with Local
631. (Ex. 12 at 60) Passo was Hogan's conduit into Local 631
affairs. Passo and Hogan spoke to each other regularly while Passo
was involved with Local 631, both before and after the Trusteeship
was imposed . Hogan remained entwined with Passo and employers in
attempting to wring concessions from the Local.
After Hoffa appointed a Trustee and an Assistant Trustee
at Local 631, Passo continued to exercise substantial influence
over the Local's affairs. Hoffa's Executive Assistant Carlow Scalf
("Scalf") acknowledged that he and Hoffa had made Passo responsible
for "monitoring" Local 631. (Ex. 12 at 76-77) Hoffa admitted the
decisions made about the Local to a large extent were based solely
upon information Passo alone provided. (Ex. 78 at 43-48)
Throughout the time period involved, Hoffa and Scalf would grant
enormous power over the Local to Passo and ignore concerns from
other IBT officials about Passo's suspicious and disruptive
conduct.
After Local 631 was placed in Trusteeship, Hogan
____________________
5 During the two year period from March 1, 1999, when Passo
became Special Assistant to Hoffa, through February 25, 2001, the
last date for which Passo's telephone records were obtained, there
were, at least, 339 calls from Passo's IBT cellular telephone to
Hogan's cellular telephone or Hogan's home telephone and from
Hogan's cellular telephone to Passo's cellular telephone. (Exs. 33-
76, 282-84)
8
introduced Passo to United CEO Simon. Hogan wanted Passo to assist
United in securing an arrangement with Local 631 to supply labor to
trades show contractors. (EX. 20 at 64-67, Ex.15 at- 40-41) 6. At no
time did Passo or Hogan or any IBT employee on their behalf speak
to any United employee. (Ex. 20 at 109-111; Ex. 15 at 61) Indeed,
no one from the IBT attempted to organize the United employees.
(Ex. 79 at 19; Ex. 80 at 23; Ex. 81 at 29)'
Shortly after Local 631 was placed in Trusteeship, Passo
and Simon began attempting to convince Local 631 to agree to
concessions for United that would be substantially below the red
book contract. Passo would rendezvous with Simon at bars and
restaurants in Las Vegas. Passo agreed to Simon's proposals under
which the United employees would receive lower wages than the red
book contract required. (Ex. 20 at 204) Passo also agreed that
Simon should have concessions from payments for benefits the red
book contract signatories made. (Ex. 20 at 75-78) There were also
concessions to Simon with respect to overtime and other payments.
Throughout approximately the next four months, Passo continuously
pressured Local 631 officials to enter into a substandard
Passo, as shown below incredibly, denied knowing that
Michael Hogan had any involvement with United. (Ex. 20 at 69)
William Hogan testified that he "probably . . ." told Passo that
his brother worked at United. (Ex. 15 at 39)
Several individuals testified that the majority of United
employees appeared to speak only Spanish and their supervisors
tried to prevent them from speaking to the Teamsters who worked on
the trade shows. (Ex. 6 at 81-83; Ex. 83 at 6-9)
9
agreement, despite the most favored nations clause in the red book
agreement. (Ex. 20 at 158) Those union officials who resisted his
efforts to benefit Simon at the expense of members and working
individuals were removed from office at Passo's instigation.
As the Local's officials resisted Passo's efforts, the
proposal evolved. Initially, it was an obvious sabotage of the red
book contract. Even Passo's last offering on Simon's behalf
remained substantially below the red book contract.
At approximately the end of April or beginning of May
2000, Passo requested Roberta Whitfield ("Whitfield"), a Local 631
business agent for the trade show industry whose job Passo had
obtained for her, to meet with him and Simon at a restaurant. (Ex.
6 at 89-91, 93; Ex. 26 at 40-41) Whitfield requested Local 631
Assistant Trustee Frates, whom Hoffa had appointed and Passo had
not invited, to attend this steakhouse dinner. (Ex. 6 at 93-95; Ex.
82 at 49-51) Passo and United CEO Simon urged Frates and Whitfield
to have the Local enter into an agreement with United which
deviated substantially in United's favor from the red book
contract.
Under this Passo proposal, United would be called after
the Local 631 dispatch office was exhausted. (Ex. 6 at 103-04; Ex.
82 at 52-53; Ex. 20 at 161-62) As a consequence, Simon, instead of
the Local 631 dispatch office, would control which United employees
were sent to work. (Ex. 6 at 100-01; Ex. 82 at 51-52; Ex. 20 at
10
161-62; Ex. 84) United would pay its employees $8.00 per hour as
opposed to what signatories to the red book agreement would have
paid, the minimum hourly rate of $12.10 per hour plus benefit
contributions of $7.90 per hour. (Ex. 4 at 11, 26-27; Ex. 6 at 97)
Under the Simon-Passo arrangement described at this dinner, no
benefit fund contributions would be made on behalf of the United
employees until they had worked more than 150 hours in the
industry. (Ex. 6 at 97-98)3 Given the nature of Simon's workforce
and his ability to control who worked, it was doubtful many, if
any, would ever reach that total. Frates and Whitfield refused to
enter into such an agreement. (Ex. 6 at 97-104, 106-08, 114-116;
Ex. 82 at 73)
Passo also urged Local 631 Trustee Wilkerson to enter
into the agreement with Simon's company. (Ex. 26 at 43-46, 49)9
Consistent with business agent Whitfield's testimony, Wilkerson
testified that, under Passo's proposed arrangement, the United
employees would be paid $8.00 per hour. (Ex. 26 at 48-49)
This agreement evolved. In the best deal Simon and Passo
offered the union reflected in Passo's handwritten agreement with
United sent to the IBT's Legal Department on August 29, 2000,
months after this dinner meeting, the United employees would have
had to work 250 hours in the industry before any benefit fund
contributions would be made on their behalf. (Ex. 84)
According to Trustee Wilkerson, under Passo's proposal,
after the Local 631 dispatch office was exhausted, Simon's company
would be called instead of contacting the other IBT Locals in Las
Vegas and the other AFL-CIO affiliated unions for workers as had
been the Local's practice. (Ex. 26 at 45)
11.
Wilkerson, who described Simon's company as a labor broker, refused
to enter into Passo's proposal. (Ex. 26 at 44-46, 49)10
Passo frequently discussed Simon's proposal with Hogan
(Ex. 20 at 67-68, 78-83, 105-106, 176-77, 202-05; Ex. 21 at 283-84,
297; Ex. 15 at 76-77, 93-95, 99, 102-104, 110-11, 115, 117, 120)
On its face, the Passo proposed arrangement with Simon gave the
contractors a strong economic incentive to use United rather than
higher paid individuals dispatched from Local 631. (Ex. 6 at 108)
It also undercut the United employees who could have obtained the
work at the contract wage and with benefit contributions by
registering with the Local 631 dispatch office either as Local 631
members or non-members. Only Simon and, perhaps, the contractors
who used his company benefited from the cheaper labor.
Even under the most favorable description of the proposed
arrangement, Passo, Hogan and Simon would have created a class of
Teamsters in the Las Vegas trade show and convention industry that
would have received less in wages and have less benefit fund
contributions made than any non-union worker who merely registered
with the Local 631 dispatch office. (Ex. 84) Indeed, as detailed
below, as late as the end of August, Passo's handwritten agreement
with United provided for new classes of employees called "D1" and
10 Other experienced IBT officials, including International
Vice President Santangelo and Assistant Local 631 Trustee Frates,
also described United as a labor leasing company. (Ex. 32 at 26-27;
Ex. 82 at 77)
12
"D2" employees, who would have been paid wages less than the red
book agreement for, at least, the first 1,000 hours they worked in
the industry. (Ex. 84l)
Passo's efforts to cause Local 631 to enter into the
substandard agreement with United had no union benefit but were
designed to benefit the company and not its employees with whom
Passo shunned contact. Although devoting considerable time and IBT
resources to assisting Simon, Passo never spoke to any of the
United employees. (Ex. 20 at 109-110) Passo, Hoffa's very active
Local 631 monitor, never urged Local 631 to try to organize the
United employees. (Ex. 79 at 21-22) The United employees never
signed Teamster membership application cards or showing of interest
cards. (Ex. 20 at 207) Moreover, Passo's and Hogan's efforts to
pressure Local 631 officials to enter into an agreement with United
were inconsistent with the Local's Bylaws and the IBT's Organizing
Guide. (Ex. 293)11
_______________
11 For example, Section 27 of the Local 631 Bylaws provides
in pertinent part:
Whenever a collective bargaining agreement is
about to be negotiated, modified or extended
at the request of this Local union, the
principal executive officer shall call a
meeting at which the membership shall
determine and authorize the bargaining demands
to be made. The Local Union Executive Board
shall determine whether such meeting shall be
limited to the members in a particular
division, craft or place of employment . . . .
(Ex. 296 at 43) No analogous meeting was held with the United
13
Moreover, Passo never urged anyone to explain to the
United employees how to register with the dispatch office so they
would be paid pursuant the red book agreement when work was
available. Furthermore, if the Local had agreed, as Passo
continuously urged, to permit Simon to pay United's workers less
and give Simon a lower benefit contribution package than the red
book contract required for subcontractors, Passo would have caused
a substantial weakening in the Local's bargaining position in the
2001 red book contract negotiations. This latter was so obvious a
point that an employer raised it with Passo. (Ex. 20 at 203)
Trustee Wilkerson, Assistant Trustee Frates and business
agent Whitfield repeatedly rejected the proposed substandard
arrangement with Simon Passo pressed on the Local. Passo continued
in the face of all Local opposition to strive to assist Simon.
Passo repeatedly urged Wilkerson, Frates and Whitfield to sign and
support an agreement with major concessions to United. Indeed, to
secure Simon his favorable arrangement, Passo lied to Wilkerson
through representing falsely that besides his co-schemer Hogan,
Santangelo and Scalf wanted Wilkerson to agree to United's terms as
arranged with Passo. (Ex. 26 at 88-89) Scalf and Santangelo denied
____________________
employees. (Ex. 20 at 109-110) Not only were no United employees
consulted, but also Local 631 members who worked in the convention
industry and who would be impacted by Passo's planned concessions
were also not consulted.
14
Passo's representations. (Ex. 32 at 31, 41-43; Ex. 12 at 99-102)12
Wilkerson, Frates and Whitfield each separately told
Passo that his substandard proposals were unacceptable and United
had to enter into the red book agreement. (Ex. 26 at 44-50; Ex. 6
at 97-104; Ex. 82 at 73) Wilkerson and Frates emphasized to Passo
that the red book agreement contained a "most favored nations"
clause which would allow all the trade show contractors to demand
that they benefit from the concessions Passo was urging Local 631
to bestow on United. (Ex. 26 at 45-50; Ex. 82 at 69-70) At his
sworn examination, Passo claimed he had not understood the "most
favored nations" clause. (Ex. 20 at 159-60) This claim, as with
others Passo made, is not credible. That an employer under
contract would get to pay the same lower wage rate and make the
same reduced benefit fund contributions the union negotiated for
the same work with another employer is not difficult to understand.
There is no reason this simple concept would have escaped Passo.
Given the vast unfettered authority Hoffa delegated in at least two
Locals to Passo and the freedom Scalf, his supervisor, allowed him,
they obviously had some reason to believe Passo was capable of
understanding such basic concepts.
To justify the substandard arrangement with United, Hogan
_____________
12 Indeed, Santangelo told Wilkerson that he was right not to
enter into the agreement Passo proposed because "we would be all
dead. This would be crazy, you'd kill this whole industry." (Ex.
32 at 31) Santangelo also caused an IBT investigation into Simon.
(Ex. 32 at 44-45)
15
claimed that Local 631 regularly could not meet the contractor's
calls. (Ex. 15 at 24, 47-48) His assertions were based upon his
conversations with Passo and the trade show contractors, (Ex. 15 at
47-49, 57-58, 125-26) On the other hand, the Local 631 dispatchers
estimated that, since the Trusteeship, Local 631 was unable to meet
the call for workers only between one and three times. (Ex. 9 at
37-39; Ex. 8 at 14-15) Moreover, if "meeting the call" were truly
an issue for the Local and not an excuse to justify concessions to
Simon and Hogan's brother, Passo and Hogan failed to address the
alleged problem in any manner other than to attempt to sabotage the
red book contract. Neither Passo nor Hogan or any one under their
direction took any steps to have the Local cure the problem such as
by educating the United employees as to their right to register
with the dispatch office so they would be paid red book contract
wages when work was available. Nor did they suggest to the Local
it take steps to generally increase workers registered with the
Local 631 dispatch office. On the contrary, Passo, as discussed
below, using his prestige and power as Hoffa's monitor, advocated
the adoption of measures that would make it increasingly difficult
for the Local to meet the call. In sum, as International
Representatives, the sole Hogan-Passo solution to this "problem"
was to have the Local enter into a substandard contract with
Hogan's brother's company.
Among the hurdles Passo created for the Local meeting the
16-
call was that he opposed business agents directly dispatching
workers when the dispatch office was closed. (Ex. 6 at 72-73; Ex.
20 at 154-55; Ex. 82 at 44-45)13 Without anyone acting as a
dispatcher, obviously the Local could not meet a call. In
addition, Passo also strenuously opposed contacting non-IBT Locals
for workers after the Local 631 dispatch office had exhausted its
list. (Ex. 6 at 72-73; 88, Ex. 20 at 142, 45-46)14 This resulted,
as discussed below, in non-unionized United workers being used.
Passo and Hogan frequently communicated about the United
arrangement. (Ex. 20 at 67-68, 78-83, 105-106, 176-77, 202-05; Ex.
21 at 283-84, 297; Ex. 15 at 76-77, 93-95, 99, 102-04, 110-111,
115, 117, 120) In late July or early August 2000, Hogan
orchestrated a lunch among himself, Simon, Passo and Hoffa in
Chicago. (Ex. 20 at 165-66; Ex. 78 at 28; Ex. 15 at 66-67) The
proposed agreement with United was discussed at this meal. (Ex. 78
at 28; Ex. 15 at 69) According to Hoffa, Passo did not disclose to
him either before or after this lunch that he was pushing Local 631
_________________
13 Labor calls were frequently at night when the dispatchers
were not on duty. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25 at 33-34)
14 Passo's and Hogan's explanation for embracing the lower
paid non-union help solution was that the non-IBT unions would
eventually infringe upon the IBT's jurisdiction if non-IBT union
members were referred to work from the Local 631 dispatch office
after all individuals registered with the dispatch office were
working. (Ex. 20 at 141-51; Ex. 15 at 41-42) Showing the falsity
of this concern is that Passo's and Hogan's solution to this
speculative problem was to allow the trade show contractors to use
non-union employees of Hogan's brother's company who were paid a
rate lower than the red book contract.
17
officials to enter into an agreement with Simon's company. (Ex. 78
at 29) Indeed, he suspiciously did not indicate to Hoffa that he
had had any previous dealings with Simon._ (Ex 79 at 19) Again, at
this stage, despite involving the General President in Simon's
attempt to secure from Local 631 multiple concessions for Simon,
Passo and Hogan, and indeed no IBT officer or employee, had made
any attempt to organize the United employees. (Ex. 20 at 168, 170-
73; Ex. 79 at 21-22)
During the summer after the Local was placed in
Trusteeship, Hogan and Passo met in Las Vegas with representatives
of Freeman, one of the two main contractors in the Las Vegas trade
show and convention industry. Freeman, GES's main competitor in
Las Vegas, was also a signatory to the red book agreement. No
Local 631 employee, including the Trustee, was present at this
meeting with a Local employer. Hogan, who was present, had no
official role at all at Local 631. At this meeting, the Freeman
representatives expressed opposition to the substandard arrangement
with United that Hogan and Passo were supporting. According to
Passo, the Freeman representatives had to educate Passo and Hogan
that the proposed agreement granting concessions to United, "was a
bad idea because the contract negotiations were coming up in a year
for GES . . . .." (Ex. 20 at 203) Passo and Hogan both reported to
Scalf. Neither informed him about this meeting with the Freeman
representatives. (Ex. 12 at 146) Nor did they tell the Trustee.
18
Despite having no official role in Local 631 (Ex. 12 at
60), Hogan discussed with Simon the terms of the proposed
arrangement between local 631 and United where his brother was an
executive. Hogan's motive behind his support for the arrangement
was clear. During his sworn examination, Hogan noted, " . . . I
don't know what's wrong with helping my family, but apparently
somebody has got a problem with that . . . ." (Ex. 15 at 58-59)
Despite his multiple union offices, Hogan was unabashed in his
practice, as his union history showed even before Hoffa appointed
him as an International Representative, that the interests of his
family came before his obligations to union members.
As detailed below, on August 15, 2000 approximately two
weeks after the Chicago lunch with Simon, Hogan called Passo at
9:00 a.m..15 Hogan contacted Simon at 9:08 a.m.. The next call
from Hogan's cellular telephone was at 9:25 a.m to the offices of
GES's parent company, VIAD, in Phoenix, Arizona. Following that,
Hogan completed the circle and called Passo and spoke for eight
minutes. (Ex. 73) Hogan acknowledged the obvious, that he probably
spoke to Passo and Simon about the agreement with United during
these calls on August 15, 2000. (Ex. 15 at 110-11)16
According to IBT records, on the same day as this series
__________________
15 Both Hogan and Passo were in Las Vegas on August 15, 2000.
16 Hogan claimed that the call to GES's parent company was
unrelated to his conversations with Passo and Simon. (Ex. 15 at
110-11)
19
of telephone calls, Simon requested a ticket to the James R. Hoffa
Memorial Scholarship Fund ("Hoffa Scholarship Fund") golf outing in
Las Vegas (Ex. 85) By check dated September 8, 2000, Simon's
company, which was attempting to obtain major concessions from
Local 631 which the General President had placed in Trusteeship,
made a donation of $5,100 to the Hoffa Scholarship Fund. (Ex. 85)
This donation represented $300 for Simon's ticket to attend as a
non-golfer and golf fees of $1,200 each for Hogan's son, James
Hogan; Hogan's friend, Bill Marovitz, the Joint Council 25
lobbyist, and two other individuals. (Ex. 85; Ex. 86 at 32-33; Ex.
15 at 98 )
After Passo began to pressure Local 631's Trustee,
Assistant Trustee and business agent to enter into the substandard
arrangement with United, United employees, who were paid less than
the red book agreement required, began to perform work covered
under the Teamsters red book agreement. (Ex. 26 at 60-63)1' For
example, during the MAGIC show held between approximately August 24
and September 3, 2000, trade show contractor GES used United
employees to perform Teamster bargaining unit work. (Ex. 262) It
appears that Passo, who was in Chicago at this time, kept track of
these developments. On August 23 and August 27, 2000, there were
calls from Passo's cellular telephone to Simon's cellular
__________________________
17 In the past, United employees had performed janitorial work
in the convention industry. That work was not covered under the
red book agreement.
20
telephone. (Ex. 49)
On August 30, 2000, Assistant Trustee Frates had a
telephone conversation with United CEO Simon during which Simon
again tried to persuade Frates to implement Passo's substandard
arrangement with United. (Ex. 82 at 56-57) Once again, Frates told
Simon that unless he signed the red book agreement, the Local was
not willing to enter into an agreement with him. (Ex. 82 at 57)18
Trustee Wilkerson and Frates were present at the
convention site during the MAGIC show and observed numerous United
employees performing Teamster work for GES. (Ex. 6 at 73, Ex. 82 at
74-75; Ex. 26 at 63) They directed that grievances be filed
against GES. (Ex. 82 at 74-75; Ex. 26 at 63-69)19
Local 631's grievances concerning the use of the United
employees on the MAGIC show were sent via facsimile to GES on
September 5, 2000. (Ex. 151) Frates instructed business agent
Chuck Benboe ("Benboe"), the trade show business agent who handled
grievances, to vigorously pursue the grievances. (Ex. 82 at 83) On
September 8, 2000, Passo caused Frates to be terminated as
Assistant Trustee. (Ex. 82 at 7; Ex. 78 at 61; Ex. 12 at 147-51;
________________
18 Frates testified that in this conversation he told Simon
"to go pound salt." (Ex. 82 at 57)
19 During this show, Assistant Trustee Frates and business
agent Whitfield met with GES representatives and strongly objected
to the use of the United employees to do work that should have been
dispatched through Local 631 and paid at the contract rate. (Ex. 6
at 79-80; Ex. 82 at 74-75)
21
Ex. 20 at 234-36)20. As with Murphy, who resisted entering into a
substandard agreement with Hogan's brother's company, Frates was
removed. (Ex. 26 at 1ll-13; Ex.12 at 48) Passo also attempted to
reduce business agent Whitfield's hours to part-time. (Ex. 6 at 37-
40)
As detailed below, Passo belatedly provided to the IRB a
handwritten agreement with United which he sent to the IBT's Legal
Department on August 29, 2000, during the MAGIC Show. (Ex. 84)21
This proposed agreement granted substantial concessions to United
from the red book contract concerning, among other things, wages,
overtime pay and employer benefit fund contributions. (Ex. 84)
_____________________
20 According to Scalf, Frates was terminated because Passo
reported the following: Frates and Whitfield had discussions with
Local members about running for office, Frates was disrupting the
Local, Frates refused to process a grievance for Local 631 member
Jeff Dudash, Frates showed favoritism toward some members and he
did not adequately service the members. (Ex. 12 at 148-150) As
detailed below, Dudash had close ties to Passo. For example,
Dudash, who had no Local office, was the beneficiary of at least
nineteen meals with Passo at IBT expense when Passo was in Las
Vegas. (Exs. 122-25, 128-33; 142) Scalf did not investigate
Passo's allegations about Frates before Frates was terminated. (Ex.
12 at 147-51) Indeed, he did not even ask Frates to respond to
Passo's allegations. (Ex. 12 at 150)
21 Although Passo testified during his February 9, 2001 sworn
examination that he had searched for all notes concerning the
agreement with United and he did not have any such documents (Ex.
21 at 267), by letter dated April 11, 2001, Passo provided
handwritten notes setting forth an agreement with United. (Ex. 84)
The IBT also failed to provide this handwritten agreement with
United in response to an IRB document request dated February 9,
2001. (Ex. 88) On April 11, 2001, in a production coordinated with
Passo, the IBT provided a copy of this agreement from its files.
(Ex. 89)
22:
Passo's proposal created new classes of employee, "D1" and
"D2"
employees, whom United would "recruit, hire and dispatch and
deliver to the trade show sites and convention sites (Ex 84)22 Under
Passo's agreement, the "D1" employees, who were defined as
employees with less than 250 hours work in the industry, would be
paid $10.00 per hour with no benefit fund contributions made on
their behalf. (Ex. 84)-" In contrast, under the red book agreement,
Supplemental Workers with less than 150 hours work in the industry
were paid $12.49 per hour with $7.90 per hour in benefit fund
contributions made on their behalf. (Ex. 4 at 11, 26-27)24
In addition, as detailed below, as a result of Passo's
concessions concerning overtime pay, under Passo's arrangement with
Simon, the D1 and D2 workers, which included workers with up to
1,000 hours in the industry, would have been paid $10.00 and $11.00
________________________
22 As discussed below, the red book contract had "A" list and
Supplemental Workers, who were sometimes referred to as "C" list
workers. (Ex. 4 at 3-4; Ex. 25 at 7-11)
23 Since Passo's agreement, which contained no seniority
provisions, would have given Simon complete control over
dispatching his employees, Local 631 would have no mechanism to
ensure that the United employees received even the substandard
wages and benefit contributions the United agreement required.
Under the red book agreement, the Local 631 dispatch office had
records of the individuals dispatched to work and the employer must
make benefit fund contributions on the first hour worked thereby
creating records at the health and welfare fund. (Ex. 4 at 26)
24 After working 150 hours in the industry, effective June 1,
2000, under the red book agreement, Supplemental Workers would be
paid $13.69 per hour with $7.90 in benefit fund contributions. (Ex.
4 at 11, 26-27)
23
per hour respectively for work performed between the hours of 10:00
p.m. and 6:00 a.m. unless they worked more than eight hours in a
day or 40 hours in a week. (Ex. 84) 25 in contrast, under the red
book agreement, a Supplemental Worker with more than 150 hours in
the industry would be paid $20.53 per hour during the hours of
10:00 p.m. and 6:00 a.m. whether or not they had worked eight hours
in a day or forty hours in a week. (Ex. 4 at 11, 13) This is
strikingly different than Passo's repeated claims that, pursuant to
the Passo-Simon arrangement, Simon's employees were only going to
be paid one dollar less per hour. (Ex. 20 at 81-82; Ex. 12 at 100)
Trustee Wilkerson complained to International Vice
President and Joint Council 42 President Santangelo and to Hoffa's
Executive Assistant Scalf about the substandard agreement with
United that Passo was constantly pushing on the Local. (Ex. 26 at
92-94; Ex. 12 at 101) Santangelo thought the arrangement Passo was
advocating was suspicious and in September 2000 asked Ed Stier
("Stier") from the IBT's RISE program to investigate Simon. Stier
subsequently told Santangelo "to stay away from him [Simon] and to
tell the Teamsters to stay away from him." (Ex. 32 at 46) Based
upon conversations he had with IBT General Counsel Patrick
Szymanski ("Szymanski"), on September 12, 2000, Scalf told Passo to
stop dealing with Simon. (Ex. 12 at 115-16)
25 The United employees usually performed Teamster bargaining
unit work at night. (Ex. 6 at 236-37; Ex. 90 at 36)
24
Trustee Wilkerson also complained to Hoffa and Hoffa's
Executive Assistant Scalf that Passo was interfering with his
ability to run the local. (Ex.26 at 86-87, 103-104)This was a
familiar complaint about Passo. Other Local and Joint Council
officials had complained about Passo's interference with their
work. (Ex. 91)26 In addition, Santangelo and other high-ranking IBT
officials from the Western Region also complained to Hoffa and
Scalf about Passo's activities at Local 631. (Ex. 32 at 33-34; Ex.
12 at 171-77)25 No investigation was made into the complaints about
____________________
26 For example, in a February 4, 2000 letter to Hoffa, Tony
Judge, then President of Joint Council 25, and Frank Wsol, then
Vice President of Joint Council 25, complained about Passo's
activities in Chicago concerning the Overnite strike. (Ex. 91)
Like other documents damning to Passo, the IBT did not produce that
document in response to an IRB document request. (Ex. 190)
27 It appears that Passo's presence in Las Vegas exacerbated
the problems which were given as the reasons for the imposition of
the Trusteeship. For example, the non-union United employees were
performing Teamster work at substandard wages. Furthermore, an
ethnic slur was also part of the IBT's rationale for the
Trusteeship. (Ex. 3) Passo made an anti-Semitic remark to the
owner of Bally's, an IBT employer, and was thrown out of that
hotel. (Ex. 78 at 74-75; Ex. 12 at 180-82) Passo was not
disciplined. (Ex. 78 at 75)
In addition, according to IBT Vice President Santangelo's
January 2000 report recommending that Local 631 be placed in
Trusteeship, nepotism was among the stated reasons for the
Trusteeship. (Ex. 3) Nevertheless, Passo instructed Trustee
Wilkerson to hire his friends, who were without appropriate
experience, for various positions at the Local. For example, Passo
directed that Vito LoCascio, a former member of Local 714 in
Chicago who had at least eighty-seven meals with Passo in Las Vegas
at IBT expense, be hired to work on the IBT's 2000 Get-Out-The-Vote
efforts in the U.S. Presidential election even though Locascio was
prohibited from voting himself due to his felony conviction. (Exs.
94-144, 146; Ex. 26 at 33)In addition, although another reason
25
Passo's stewardship of Local 631.
Passo, in turn, advocated with Hoffa and Scalf for
Wilkerson to be replaced as Trustee. (Ex. 20 at 242-244; Ex. 78 at
57; Ex. 12 at 151-52) This was after both Wilkerson and Santangelo
had complained to Scalf about Passo's substandard agreement with
United. (Ex. 12 at 99-101) On October 31, 2000, Scalf asked Ed
Jacobson ("Jacobson"), the Secretary-Treasurer of Local 252 in
Centralia, Washington, an International Representative assigned to
the Building Trades Division and the IBT's Director of Building
Trades for the Western Region, if he would serve as a replacement
for Wilkerson as the Trustee of Local 631. (Ex. 92 at 12; Ex. 12 at
154) On November 6, 2000, based upon Passo's recommendation, Hoffa
terminated Wilkerson as Trustee. (Ex. 148; Ex. 12 at 84-85, 127,
130)28 This was consistent with Passo causing the removal of Frates
_____________________________
given for the Trusteeship was the inexperience of the Local's
business agents, Passo arranged for Locascio, who held no union
position and with whom Passo spoke daily, to attend the Teamster
Leadership Academy for officers and business agents in October 2000
in Washington, D.C. at Local 631 expense. (Ex. 14; Ex. 147 at 29;
Ex. 78 at 55-56, 97; Ex. 145) At the time, there were Local
business agents who had not attended the TLA. (Ex. 1 at 151)
Moreover, it was a rare event for a member with no union position
to attend the TLA. (Ex. 93 at 28-29)
28 According to Scalf, Wilkerson was terminated because he
planned to run for office in Local 631, planned to dedicate the
union hall to a former officer without the IBT's permission,
purchased automobiles for the Local 631 business agents to use
without the approval of the IBT, did not maintain sufficient
contact with the IBT and stopped the Local's practice of giving the
members soda at meetings and installed a soda machine at the Local.
(Ex. 12 at 84-85, 127, 130) In other Trusteed Locals, such as
Local 815 located in Englewood Cliffs, New Jersey, the IBT waived
26
who had also resisted Passo's continuous efforts to have Local 631
enter into a substandard arrangement with Hogan's brother's
company. Between October 31, 2000, when Jacobson was asked to
replace Wilkerson and November 6, 2000 when Wilkerson was
terminated, there were, at least, thirteen telephone calls between
Passo and Hogan. (Exs. 50-51, 74-76)
On November 3, 2000, GES again used United employees to
perform bargaining unit work on the SEMA show while there were
Teamsters available to do that work. (Ex. 152) As a result, on
November 4, 2000 a grievance was filed against GES. (Ex. 152) GES
also used United employees to perform Teamster work on the CES show
in January 2001. (Ex. 153) Based upon this, on January 9, 2001,
Local 631 filed a grievance against GES. (Ex. 153) As of March 29,
2001, the grievances Local 631 filed against GES for using United
employees to perform Teamster work had not been resolved. (Ex. 2 at
____________________
IBT Constitutional dues requirements in order to allow employees
hired under the Trusteeship to run for office when they would
otherwise be ineligible to do so. (Ex. 12 at 128-29) Moreover,
Local 631 needed automobiles. (Ex. 149 at 92-93) They were
purchased in May, June, July, August and early September 2000,
months before the decision to terminate Wilkerson. (Ex. 150) As
discussed below, upon analysis, including a comparison with the
actions Passo was taking to give Simon substantial concessions with
significant consequences for Local 631 which Hoffa and Scalf
claimed were not disclosed by Passo to them, there is a make-weight
after-the-fact appearance to the explanations for terminating
Wilkerson. After Passo's disruptive conduct was brought to Hoffa's
attention by the International Vice Presidents and Scalf ignored
Santangelo's and Wilkerson's warnings about the substandard
contract Passo was arranging with Simon, as of March 2001, Passo
remained in place as Hoffa's Local 631 monitor.
27
219-229)29
In addition, it appears that during the Super Show in
January 2001, a trade show contractor that Michael Hogan owned,
Show Biz USA, attempted to use United employees with Trustee
Jacobson's indulgence to perform Teamster work. (Ex. 154; Ex. 155
at 21; Ex. 15 at 18)30 Business agent Whitfield and the show
stewards prevented this. (Ex. 155 at 21; Ex. 1S6 at 41-42)
Jacobson's and Benboe's sworn examinations were taken in
January 2001 at which they were asked questions about the failure
to pursue the grievances against GES for using the United employees
to perform bargaining unit work. (Ex. 92 at 93-94; Ex. 149 at 63-
74)31 During the same week as these sworn examinations,
representatives from GES in Las Vegas, including the person with
whom Benboe would have met concerning the grievances, traveled to
Chicago to discuss with Hogan, who had no role in Local 631, both
the grievances Local 631 had filed against GES concerning the use
_____________________________
29 Business agent Benboe, who was responsible for handling the
grievances, claimed that grievances where individuals were named
took priority over the grievances filed against GES for the use of
the United employees. (Ex. 149 at 63-65) The threat to Teamster
jobs and the Local's negotiating position for the new contract was
of no concern to him or Jacobson. (Ex. 149 at 63-74; Ex. 1 at 161-
63, 185)
30 The IRB has recommended that Jacobson be charged with
intentionally failing to cooperate with the IRB in January 2001.
31 Prior to these sworn examinations, the IRB had asked Local
631 to provide copies of grievances against GES concerning the use
of the United employees. (Ex. 294)
28
of United employees and the upcoming contract negotiations with
Local 631. (Ex. 15 at 124-28; Ex. 86 at 11-20) Hogan did not
inform Trustee Jacobson or Scalf, to whom Hogan reported, that he
had this meeting with GES representatives. (Ex. 15 at 127-28; Ex.
1 at 186-87; Ex. 12 at 144-45)
Subsequent to his meeting with the GES representatives
from Las Vegas and after the IRB's investigation began, Hogan
requested Hoffa and Scalf to allow him to be involved in
negotiating the trade show contract in Las Vegas. (Ex. 12 at 144;
Ex. 78 at 98) They refused Hogan permission. (Ex. 12 at 144; Ex.
78 at 98-99) Hogan also concealed from Scalf and Hoffa that his
brother was an officer of United. (Ex. 12 at 61-63; Ex. 78 at 30-
31) Indeed, Hogan did so as he sat with Hoffa and Passo while
Simon discussed a contract with Local 631. (Ex. 12 at 62, 97, 196;
Ex. 15 at 35-39)
III. JURISDICTION
Since Local 631 is a Trusteed Local and both parties
against whom charges are recommended are International
Representatives, the violations described herein appear to be
offenses committed against the International Union. Pursuant to
Article XIX, Section 5(a) of the IBT Constitution, it appears that
the IBT General Executive Board has jurisdiction over this matter.32
32 Article XIX, Section 5(a) provides in pertinent part:
Notwithstanding any other provision of this
29
Paragraph G(e) of the March 14, 1989 Consent Decree in
United States v. International Brotherhood of Teamsters, 88 Civ.
4486 (S.D.N.Y.) and Paragraph I(6) of the Rules and Procedures for
Operation of the Independent Review Board ("IRB Rules") require
that within 90 days of the IRB' s referral of a matter to an IBT
entity, that entity must file with the IRB written findings setting
forth the specific action taken and the reasons for that action.
Pursuant to Paragraph I(9) of the IRB Rules, not meeting this
deadline may be considered a failure to cooperate with the IRB.
IV. INVESTIGATIVE FINDINGS
A. Dane Passo's Background
On January 4, 1999, Dane M. Passo, date of birth April
18, 1953, was hired as a member of the Hoffa transition team. (Ex.
11) As of March 1999, General President Hoffa appointed Passo as
his Special Assistant and an International Representative. (Ex. 11;
Ex. 20 at 23-24)
Passo held the Special Assistant position until October
_________________
Constitution, the General Executive Board
shall have jurisdiction to try individual
members, officers, Local Unions or Joint
Councils or other subordinate bodies for all
offenses committed against the officers of the
International Union or the International
Union.
(Ex. 157)
30
1, 2000. (Ex. 20 at 24-25; Ex. 11)33 Passo continues as an
International Representative. (Ex. 20 at 23) Passo's duties did
not change after he was removed as Special Assistant to General
President Hoffa. (Ex. 12 at 217)
Passo's IBT salary is currently approximately $92,400.
(Ex.11;; Ex. 20 at 25)34 He also receives reimbursed expenses, a
car allowance of $400 per month and an incidental allowance of
approximately $216 per month. (Ex. 11)34
Passo is a member of Local 705 in Chicago. (Ex. 20 at 4)
While a Local 705 member, Passo was employed at Gersten Cartage for
approximately two or three years, Carolina Freight for
approximately fifteen years and ABF for approximately two years.
(Ex. 20 at 4, 16-17) He was a steward at Carolina Freight. (Ex.
20 at 18)
_______________
33 Hoffa testified that Passo was removed as Special Assistant
because some IBT Vice Presidents told him that Passo "was very
aggressive in putting forth his position. And they felt it would
be better if he didn't have that title." (Ex. 78 at 13-14) When
asked why Passo was removed as Special Assistant, Scalf testified,
"[b]ecause of him pushing his weight around and telling people that
he could get them fired and being a little more outspoken than he
should be and on the advice of counsel." (Ex. 12 at 197)
34 When he was hired at the IBT in January 1999, Passo's
salary was $67,500. (Ex. 11; Ex. 20 at 29) In March 1999, his
salary was increased to $75,000. (Ex. 11; Ex. 20 at 30) In January
2000, his salary was increased to $82,400. (Ex. 11) According to
Passo, in January 2001 his pay was increased to approximately
$90,000. (Ex. 20 at 25)
35 In 1999, Passo received approximately $5,700 in allowances.
(Ex. 158)
31
In 1992, then Local 705 President Daniel Ligurotis
("Ligurotis") hired Passo to be a business representative and
organizer at Local 705. (Ex. 20 at 18; Ex. 17)36 On December 31,
1993, after Local 705 was placed in Trusteeship, Passo was
terminated from his position at Local 705. (Ex. 20 at 19) Passo
then returned to work at ABF. (Ex. 20 at 19) Passo was injured
while working for ABF and received workers compensation. (Ex. 20 at
20) in 1996, Passo started working for the Hoffa campaign and ran
the Hoffa campaign in Chicago. (Ex. 20 at 61-62)
Prior to being hired as Special Assistant to General
President Hoffa, the only position Passo held with any IBT-
affiliated entity was his thirteen month employment as a Local 705
business representative. (Ex. 20 at 18-19) Passo never negotiated
_______________________
36 On April 2, 1992, the Investigations Officer charged
Ligurotis with embezzling $20,500, taking an illegal interest free
loan of $75,000 from Local 705 and interfering with the Local's
legal obligations by engaging in a pattern of conduct in which
corruption and unlawful activity were fostered and rewarded. (Ex.
159) The second charge alleged, among other things, that Ligurotis
allowed a Local 705 business agent convicted of extorting money
from an employer to continue to work at the Local as a
"maintenance" employee at a salary higher than when he was a
business agent and then appointed him a business agent when his
statutory bar expired; hired another individual as a business agent
who was barred from such employment with a labor organization as a
result of his arson conviction; engaged in contumacious conduct by
willfully interfering with the March 14, 1989 Consent Order in
United States v. IBT and possessed a loaded handgun on the Local's
premises in violation of the Local's rules which possession
resulted in the death of a fellow Local 705 officer. (Ex. 159)
After a hearing, the Independent Administrator found the charges
against Ligurotis proven and permanently barred him from the IBT.
(Ex. 160) On February 9, 1993, District Judge David N. Edelstein
affirmed the Independent Administrator's decision. (Ex. 161)
32
any collective bargaining agreements while employed at 705 or at
the IBT. (Ex. 21 at 290-91)37 Passo had no experience in the
convention industry. (Ex. 20 at 23) In addition, Passo did not
have any organizing experience. (Ex. 21 at 290-91) Passo never
even attended the full IBT Teamster Leadership Academy. (Ex. 21 at
288)
Hoffa's Executive Assistant Scalf supervised Passo. (Ex.
12 at 47-48) Passo also attended IBT General Executive Board
meetings as the Sergeant at Arms. (Ex. 20 at 53; Ex. 12 at 32)
B. William T. Hogan, Jr.'s Background
William Hogan, date of birth June 13, 1941, is currently
an International Representative, President of Joint Council 25 in
Chicago, Vice President of Local 179 and Organizing and Political
Director for Local 714. (Ex. 15 at 4; Ex. 162 at 8) Hogan's
salaries are: $62,000 from Joint Council 25, $50,000 from the IBT,
$92,000 from Local 714 and $6,000 from Local 179. (Ex. 15 at 16-17)
His total annual salaries from IBT entities is approximately
$210,000. In addition, Hogan is receiving a pension from the
Teamsters Affiliates Pension Plan. (Ex. 15 at 16-17)
In August 1996, based upon an IRB recommendation, the IBT
placed Local 714 in Trusteeship. (Ex. 16) The Local was placed in
__________
37 According to Passo, he sat in on negotiations Scalf
conducted with the New York, New York Casino in Las Vegas. (Ex. 21
at 290-91)
33
Trusteeship because of nepotism and conflicts of interest among
Hogan and his relatives who had ownership interests in companies
that employed Teamster members. (Ex. 16)38 At that time, Hogan was
Secretary-Treasurer of Local 714 and President of Joint Council 25
in Chicago. (Ex. 162 at 4, 11) After being removed as the Local
714 principal officer, Hogan continued as a Local 714 member until
approximately early 1997 when he retired. (Ex. 15 at 5)
In July 1998, Hogan's son, Robert Hogan, was elected
Secretary-Treasurer of Local 714 and the Local was released from
Trusteeship. (Ex. 15 at 5-6)39 In early 1999, Hogan was appointed
_________________________
38 According to the IRB's Trusteeship recommendation,
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.
(Ex. 16)
________________
39 Robert Hogan had been Recording Secretary and a business
agent before Local 714 was placed in Trusteeship. (Ex. 16 at 8-9)
34
Vice President of Local 714. (Ex. 15 at 10-11)
On or about March 9, 2000, Hogan was appointed President
of Joint Council 25. (Ex. 15 at 4)40 On May 1, 2000, he was
appointed an International Representative. (Ex. 143) Hogan, who
was not assigned to a specific IBT department, reported to Scalf.
(Ex. 12 at 47) Hogan was never given any International assignment
in Las Vegas. (Ex. 12 at 60)
According to Hogan, he and Passo met in 1994 or 1995 in
connection with Hoffa's campaign for IBT General President. (Ex. 15
at 27-28) Hogan was the candidate for General Secretary-Treasurer
on Hoffa's slate in the 1996 election until Local 714 was placed in
Trusteeship and he resigned from the slate. (Ex. 164)
Hogan acknowledged that he and Passo were good friends.
(Ex. 15 at 76) Between April 4, 2000, when Passo arrived in Las
Vegas to impose the Trusteeship on Local 631, and November 19,
2000, when Passo left Las Vegas, there were approximately 80 calls
from Passo's IBT cellular telephone to Hogan's cellular telephone
and approximately 143 calls from Hogan's cellular telephone to
___________________
40 In 2000, there was an election at Local 714. Hogan was
ineligible to run for office because he had not been a member of
the Local in good standing for twenty-four consecutive months prior
to the election. Pursuant to Article XV, Sections 2(b) and 7 of
the IBT Constitution, in order to be a Joint Council officer, an
individual must be an officer of a Local union within the Joint
Council. In order to preserve Hogan's eligibility to continue as
the head of the Joint Council, in October 2000, he was appointed
Vice President of Local 179 located in Joliet, Illinois. (Ex. 15 at
5, 7-8 )
35
Passo's IBT cellular telephone. (Exs. 33-76) There was a total of
approximately 223 calls in this seven month period. (Exs. 33-76)41
Hogan was frequently in Las Vegas during the applicable
period. Hogan and Passo were both simultaneously in Las Vegas six
times in 2000. (Exs. 116-135, 166, 265-281) Between March 2000 and
November 19, 2000, when Passo left Las Vegas, Passo caused the IBT
to pay for ten meals he had in Las Vegas at which Hogan was also
present. (Exs. 118-119, 122, 123, 128, 129, 132, 133, 165)42
According to Passo's expenses, at two of these meals, on March 1,
2000 and May 7, 2000, only Passo and Hogan were present. (Exs. 118-
119, 122-23 and 165)43
C. Local 631's Collective Bargaining Agreement with the
Trade Show Contractors
Local 631 represents employees in the trade show and
convention industry in Las Vegas. There were approximately 1,400
_____________
41 This figure did not include calls from Passo's cellular
telephone to Joint Council 25 where Hogan was the principal officer
or calls from Hogan's cellular telephone to Local 631 where Passo
was the General President's Personal Representative. These calls
numbered eight and three respectively. (Exs. 45-75) Hogan was not
in contact with anyone else at the Local.
42 Former Local 714 member Locascio was present at six of the
ten meals Passo and Hogan had together. (Exs. 118-19, 122-23, 128-
29, 132-33, 144 )
43 On May 7, 2000, Hogan was in Las Vegas on a personal trip
with his friends, including Bill Marovitz, the Joint Council 25
lobbyist. (Ex. 15 at 97-98) As detailed below, Simon's company
paid for Marovitz's golf fees at the Hoffa Memorial Scholarship
Fund golf outing in September 2000. (Ex. 85)
36
Local 631 members employed in those industries. (Ex. 2 at 101) 44
Las Vegas has become one of the most popular convention sites in
the United States. (Ex. 25 at 18) The Las Vegas Convention Center
is expanding and as a result even more trade shows and conventions
will be held in Las Vegas.
Local 631 had a collective bargaining agreement with the
major trade show contractors in Las Vegas, GES and Freeman. (Ex.
4)aJ This collective bargaining agreement will expire on May 31,
2001. (Ex. 4)
As set forth in the red book agreement, the trade show
contractors were required to contact the Local 631 dispatch office
for workers. (Ex. 4 at 3)46 Prior to Local 631 being placed in
Trusteeship in April 2000, Breymann was the Local's dispatcher and
___________________
44 As discussed below, an individual did not have to be a
Local member in order to be referred to work from the Local's
dispatch office. Non-members were required to pay a monthly $40
dispatch fee. (Ex. 7 at 70; Ex. 77)
45 As noted above, this master contract is sometimes referred
to as the red book contract. (Ex. 6 at 106)
46 Pursuant to Article I, Section E of the red book contract,
It shall be the responsibility of Employer to
first call the dispatching office of the Union
for such employees as they may from time to
time need, and the office shall immediately
furnish to the Employer the required number of
qualified and competent workers of the
classifications needed and requested by the
Employer, strictly in accordance with the
provisions of this Article.
(Ex. 4 at 3)
37
Jennifer Dodds ("Dodds") was his assistant. (Ex. 9 at 13-14) As of
March 29, 2001, the Local's current dispatcher was Dodds. Frances
Almaraz ("Almaraz") and Susanna Montoya were her assistants. (Ex.
7 at 68; Ex. 8 at 6, 10-11)
The contract provided for an "A" dispatch list and a
Supplemental dispatch list, sometimes referred to as the "C" list.
(Ex. 4 at 3-4) The Supplemental list consisted of individuals who
had not worked 1,000 hours in the convention industry. (Ex. 4 at
4)47
There was no limit on the number of individuals who could
register in the Local 631 dispatch office for trade show and
convention work. (Ex. 2 at 101; Ex. 7 at 70) Every Thursday
individuals would go to the dispatch office to register. (Ex. 2 at
102; Ex. 7 at 70-71) In order to be placed on the dispatch list,
an individual had to complete registration forms, watch an
orientation video and pay either union dues or a monthly dispatch
fee. (Ex. 7 at 70, 87; Ex. 2 at 102)48
In addition, pursuant to the red book agreement, there
was a Convention Training Trust to which employer signatories must
pay $.06 for every hour a casual employee worked. (Ex. 4 at 16)
____________________
47 If an individual was classified as a Supplemental Worker
on or before May 31, 1997, they were included on the Supplemental
list if they had not yet accumulated at least 800 hours in the
convention industry. (Ex. 4 at 4)
48 Nevada is a right to work state.
38
The Convention Training Trust, which provided training for trade
show work including forklift certification classes, was designed to
provide a competent, stable workforce for the convention industry
in Las Vegas. (Ex. 2 at 247-50)17
The work covered in the red book contract included the
following:
The Employer recognizes the following work
herein outlined as being within the scope of
this Agreement and defined as erection, touch-
up painting, dismantling and repair of all
exhibits. This work is to include wall
coverings, floor coverings, pipe and drape,
painting, aisle coverings, hanging of signs
and decorative materials from the ceiling,
placement of all signs, erection of platforms,
and placement and care of furniture as well as
wiping down exhibits. The Employer further
recognizes within this scope the loading and
unloading of all trucks of common and contract
carriers as well as individual company
vehicles and the movement of freight, crates,
and rigging within its facilities, including
all work in the Company's warehouse facilities
will be bargaining unit work. In the areas of
rigging, packing and crating, the work
performed includes, but is not limited to,
unloading, uncrating, unskidding, painting,
and assembly of machinery and equipment as
well as the reverse process. It should be
noted that cleaning does not include mobile
washing.
(Ex. 4 at 10)
_____________________
49 Former Local 631 organizer Terry Newton, whom Murphy hired
in January 1999, testified that prior to Local 631 being placed in
Trusteeship, he and the then director of the Convention Training
Trust had met with representatives from the Nevada Employment
Department to try to put together a pilot program where unemployed
individuals would be dispatched to convention work through Local
631. (Ex. 168 at 8, 43-45)
39
The Local 631 red book contract did not include
janitorial work. United employees sometimes performed the
janitorial work in the trade show industry in Las Vegas. (Ex. 5 at
21, 39, 61) United employees were not members of any union. (Ex.
5 at 38)
The minimum wage rate in the red book agreement was
$12.49 per hour for Supplemental Workers with less than 150 hours
work in the industry. (Ex. 4 at 11) After a Supplemental Worker
worked more than 150 hours in the industry, the hourly rate,
effective June 1, 2000, was $13.69. (Ex. 4 at 11) A Supplemental
Worker who had worked more than 150 hours in the industry was
sometimes referred to as a "C Plus" worker. (Ex. 25 at 11; Ex. 4 at
3-4)
Pursuant to Article III, Section E of the red book
agreement, for work performed between the hours of 10:00 p.m. and
6:00 a.m., all employees were to be paid one and one half times the
base rate of pay. (Ex. 4 at 13) For Supplemental Workers who had
not worked 150 hours in the industry, this provision did not apply.
(Ex. 4 at 13)50 For example, effective June 1, 2000, for every hour
worked between 10:00 p.m. and 6:00 a.m., a C Plus worker would have
________________________
50 Pursuant to Article III, Section B of the contract,
Supplemental Workers who had worked less than 150 hours in the
industry only received time and one half after 8 hours in a day or
40 hours in a week, including hours worked between 10:00 p.m. and
6:00 a.m.. (Ex. 4 at 13)
40
to have been paid $20.53 per hour.51
Pursuant to the red book agreement, for each casual
employee the employer was required to make contributions of $3.75
for every hour worked to the Teamsters Local 631 Security Fund for
Southern Nevada ("Local 631 Security Fund") for health and welfare
and dental and vision coverage. (Ex. 4 at 26)52 Effective June 1,
2000, the employer was required to make contributions totaling
$4.15 per hour for each employee to the Western Conference of
Teamsters Pension Fund. (Ex. 4 at 26-27) Accordingly, under the
red book agreement, effective June 1, 2000, the minimum hourly cost
to the employer for wages and benefits for a worker dispatched
through Local 631 was $20.39.
During large shows when one show was moving out and
another show was moving in, the dispatch office occasionally ran
out of people registered with the dispatch office for work. (Ex. 7
at 84) However, once workers finished working on the exiting show,
they were then available to work on the incoming show. These
changes sometimes happened late at night or on weekends when the
dispatch office was closed. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25
at 33-34) In those circumstances, individuals would have been
"rolled over" from one show to another. (Ex. 5 at 11-12; Ex. 2 at
_________________________
51 The base rate for a C Plus worker effective June 1, 2000
was $13.69. (Ex. 4 at 11)
52 Casual employees were workers sent through the dispatch
office. (Ex. 169 at 48-49)
41
192-193)
According to Breymann, when he was the dispatcher, if the
dispatch office list of registrants was exhausted, he contacted IBT
Locals 14 and 995 in Las Vegas and the Carpenters union to see if
they had out-of-work members who wanted to work in the convention
industry. (Ex. 5 at 14)53 In this way, Local 631 complied with the
contract, controlled the employees sent to work and ensured that
workers sent to the trade show contractors were paid pursuant to
the contract. After the Trusteeship was imposed in April 2000,
upon Passo's insistence, the dispatchers no longer called other
unions once the dispatch office was exhausted. (Ex. 9 at 15; Ex. 7
at 77-78; Ex. 26 at 78)
Both the dispatcher and assistant dispatcher recalled
only one specific show in 2000, the MAGIC show, where the Local
could not fill the call. (Ex. 9 at 37, 39; Ex. 8 at 14-15) In
January 2001, Dodds testified that the Local could not fill the
call "maybe three times" since the Local was placed in Trusteeship.
(Ex. 9 at 14)
If the Local 631 dispatch office could not supply the
requested number of workers, the trade show contractors could hire
from any source. (Ex. 26 at 23; Ex. 2 at 186-87; Ex. 7 at 98; Ex.
________________
53 The Local provided dispatch records showing that in late
1999 and early 2000, the Local 631 dispatch office referred members
of the Carpenters Union to work in the convention industry. (Ex.
170) However, the other IBT Locals in Las Vegas were usually
unable to provide workers. (Ex. 5 at 14; Ex. 7 at 94)
42
82 at 42-43)54 However, under the red book contract, any employee
who performed bargaining unit work had to be paid pursuant to the
red book contract even if they were not dispatched from Local 631.
(Ex. 26 at 63; Ex. 82 at 41-43; Ex. 2 at 186-87; Ex. 1 at 162-63)
The contract provided that,
[i]t is the Company's intent in subcontracting
any work of a substantial, major or continuous
nature which is covered by this Agreement with
any person, firm, corporation, partnership, or
other organization to require the
subcontractor to observe the applicable wages
rates, hours, and working conditions as set
forth in this Agreement.
(Ex. 4 at 12)
The red book contract also contained a "most favored
nations" clause which provided:
In the event the Union enters into any
agreement with any General Contractor,
Independent Contractor or Contractors
Association engaged in convention services
work, which has terms more favorable to that
Employer than the terms of this Agreement, the
Union shall immediately submit to the Employer
signatory herein, a copy of such Agreement,
and if the Employer signatory herein deems
said Contract or Agreement more favorable to
the Employer signatory herein, the Employer
may replace this Agreement with the more
favorable Article or Section and said Article
or Section shall immediately be in full force
and effect.
(Ex. 4 at 32)
___________________________________
54 The red book agreement provides that, "workers hired from
any other source will be laid off as if they were 'Supplemental
Workers.'" (Ex. 4 at 8)
43
In addition, the red book agreement contained a grievance
procedure. (Ex. 4 at 20) Pursuant to Article VII, Section A of the
contract, representatives of the union and the employer were to
meet every other Wednesday to discuss grievances filed in the
previous two weeks. (Ex. 4 at 20) If a grievance was not resolved
at this first step meeting, it was referred to a Joint Conference
Board. (Ex. 4 at 20)55 Pursuant to Article VII, Section A of the
red book contract, a Joint Conference Board hearing was required to
be held within thirty days of a request by either party to hold
such a hearing. (Ex. 4 at 20) If a grievance was not resolved at
the Joint Conference Board, the matter was to be sent to
arbitration. (Ex. 4 at 20)
D. United Service Companies
According to the United website, Ben Stein ("Stein")
founded United Service Companies in Chicago approximately forty
years ago. (Ex. 27) Richard Simon is the current Chairman of
United. (Ex. 27; Ex. 171)56 Currently, there are, at least, three
companies under the United umbrella: United Maintenance Company,
Inc. ("United Maintenance"), United National Maintenance, Inc. and
United Temps of Nevada ("United Temps"). (Exs. 19, 24 and 27)
______________________
55 The Joint Conference Board is sometimes referred to as a
four man panel. (Ex. 2 at 186)
56 Stein died in September 1996. (Ex. 28)
44
United Maintenance was incorporated in Illinois on March
2, 1982. (Ex. 19) The President of this company is Carol D. Stein,
Stein's daughter. (Ex. 19; Ex. 15 at 59-60) According to the
United website, United Maintenance "provides custodial,
maintenance-related, and many other specialized services to
corporate headquarters, airlines, airports, hotels, commercial
property, hospital, schools, universities, etc . . . .." (Ex. 27)
United National Maintenance was incorporated in Nevada in
October 1984. (Ex. 19) Simon is the President of United National
Maintenance. (Ex. 19) The Secretary and Treasurer of this company
is Stein's daughter, Carol. (Ex. 19) According to the United
website, United National Maintenance "provides services to the
trade show industry and major stadiums on a national level.
Currently in more than 25 major cities in 14 states." (Ex. 27)
United Temps of Nevada, Inc. was incorporated in Nevada
on March 1, 1999. (Ex. 24) The President is Simon and the
Secretary is Carol D. Stein. (Ex. 24) On May 12, 2000, United
Temps of Nevada was registered as a foreign corporation in
Illinois. (Ex. 24) Simon is the registered agent. (Ex. 24) In
Illinois, United Temps of Nevada has the assumed name United Temps.
(Ex. 24) According to the United website, United Temps "provides
temporary labor for major events and institutions on local and
national levels." (Ex. 27)
Hogan described Simon's company in Las Vegas as "a labor
45
service . . .." (Ex. 15 at 148) Santangelo, Wilkerson and Frates
described it as a labor broker. (Ex. 32 at 26; Ex. 26 at 49; Ex. 82
at 77)
1. Ben Stein
United's website broadcasted that Ben Stein had been the
owner of United before Stein's death in 1996. (Exs. 27-28) Stein,
who was convicted of bribing a union official in the 1960s, was
reported to have ties to organized crime figures including La Cosa
Nostra member Dominic Senese ("Senese"), who was also a local
Teamster official. (Ex. 28) Simon also knew Senese well. (Ex. 30)
The arrangement Passo, Hogan and Simon proposed to Local 631 was
similar to those Stein had reportedly been involved with in the
past where his employees were paid wages below a prevailing
contract. (Exs. 28-31)
In 1964, Stein, then the owner of National Maintenance
Company, was indicted for labor racketeering and bribery. (Ex. 28)
According to news reports, Stein was charged with bribing various
union leaders to allow his company at job sites the unions
controlled to use non-union workers, who were described in news
reports as "skid row" workers, for as little as $1.00 per hour when
his company's collective bargaining agreements required the
employees to be paid $2.75 per hour. (Ex. 28) In 1966, Stein was
convicted in federal court in Chicago for labor racketeering and
bribery. (Ex. 28) Stein was convicted of bribing four labor
46
officials including Joseph Glimco ("Glimco"), then President of IBT
Local 777. (Ex. 28)5' Stein was sentenced to eighteen months in
federal prison and fined $2,000. (Ex. 28)
In 1969 Stein's conviction was overturned on the bribery
counts reportedly because the government admitted it had used
information improperly obtained via wiretap and a new trial was
ordered. (Ex. 28) Stein subsequently pleaded guilty to bribing a
film carriers union official. (Ex. 28) Stein was sentenced to one
year in prison. (Ex. 28)
In the mid 1970's, Stein and Senese, an organized crime
member and then the principal officer of IBT Local 703, obtained a
loan of $5.25 million from the IBT Local 710 Pension Fund. (Ex. 28)
According to news reports, Stein and Senese used this money to
invest in a building to provide a tax shelter. (Ex. 28) Senese was
subsequently barred from the IBT for being a member of organized
crime. United States v. IBT, 941 F.2d 1292 (2d Cir. 1991). (Ex.
29) 56
2. Richard Simon
Simon has worked for United for approximately 30 years.
(Ex. 27) In a September 1980 news article, Simon was described as
________________
57 The other labor officials were Edward Donovan, Secretary-
Treasurer of Local 755, a non Teamster Local described as a film
carriers Local; and business agents Harold Hawkins and Ralph Stark
of Local 25 of the Janitors Union. (Ex. 28)
58 Senese died in January 1992. (Ex. 31)
47-
the Vice President of United Maintenance and as a Chicago Police
Department patrolman. (Ex. 172) This article reported that Simon
had known Stein since 1965, when Simon was fourteen years old. (Ex.
172) Simon also knew LCN member Senese for years. (Ex. 30)
Since approximately April 1997, Simon has been an officer
on the Board of Directors for the Chicago Convention and Tourism
Bureau. (Ex. 172) Hogan claimed he met Simon approximately ten to
fifteen years ago. (Ex. 15 at 30)59 Hogan is also on the Board of
Directors for the Chicago Convention and Tourism Bureau. (Ex. 15 at
31)
Passo testified that he may have seen Simon at a Hoffa
fundraiser during the 1996 IBT election. (Ex. 20 at 65) According
to Passo, he first met Simon when Hogan introduced him to Simon
after Local 631 was placed in Trusteeship. (Ex. 20 at 64)
3. Michael P. Hogan, Sr.
Michael Hogan, a brother of William Hogan, is Vice
President of United. (Ex. 15 at 18-20; Ex. 18; Ex. 173 at 7, 19)60
Michael Hogan had been the Local 714 chief steward in the Local's
trade show division from the mid 1970s to 1978. (Ex. 174 at 10-11;
Ex. 175 at 128; Ex. 176) While Michael Hogan was the Local's chief
____________________
59 Simon was Vice Chairman of the "Chicago Salutes Bill Hogan,
Jr." dinner held on or about May 7, 1997. (Ex. 199)
60 During a February 1996 sworn examination, Michael Hogan's
son, Michael P. Hogan, Jr. who was a member in the Local 714 trade
show division at that time, testified that his father was employed
at United Maintenance Company. (Ex. 173 at 19)
48
steward in the trade show industry, he was also an officer of
O'Hare Exposition Maintenance, a cleaning company that did work in
the trade show industry. (Ex. 177) Between 1976 and 1979, Michael
Hogan and Dale Torii, Hogan's brother-in-law, were both officers of
O'Hare Exposition Maintenance. (Ex. 178) At that time, Michael
Hogan was also a Local officer and the Local's chief steward in the
trade show industry. (Ex. 179 at 3; Ex. 174 at 10-11)61
Between approximately 1980 and April 1985, Michael Hogan
was either the Secretary-Treasurer or President of Rosemont
Exposition Services ("Rosemont"), a trade show contractor. Local
714 had a collective bargaining agreement with Rosemont. (Ex. 181;
Ex. 182 at 95-99; Ex. 162 at 88) During that time, Michael Hogan's
father and his two brothers, including William Hogan, were Local
714 officers. (Exs. 285-290)
In 1996, three cleaning companies performed cleaning work
at McCormick Place, the main trade show and convention site in
Chicago: United Maintenance, Exhibition Maintenance and Century
Maintenance. (Ex. 183 at 14, 17-18)62 United Maintenance continues
to perform work at McCormick Place. (Ex. 15 at 19) Local 714
represents members who work for trade show contractors at McCormick
Place.
__________________
61 O'Hare Exposition Maintenance was dissolved on May 1, 1987.
(Ex. 180)
62 Torii, William and Michael Hogan's brother-in-law, owned
Exhibition Maintenance. (Ex. 183 at 6-7, 24)
49
Michael Hogan, Jr., a Local 714 member and son of Michael
Hogan, explained that United Maintenance handled empty crates at
McCormick Place. (Ex. 173 at 19) A "labor service", Readymen,
Inc., provided workers to United Maintenance. (Ex. 173 at 22-23)
Hogan, head of Joint Council 25, acknowledged that he did not know
if the Chicago United employees who worked at McCormick Place were
members of any union and he never tried to organize them. (Ex. 15
at 30, 147)
During his February 2001 sworn examination, Hogan
testified that his brother Michael was employed at United
Maintenance. (Ex. 15 at 18)" Michael Hogan is also the CEO of Show
Biz USA, a trade show contractor. (Ex. 22-23; Ex. 15 at 18) As
discussed below, Show Biz USA was the general contractor for the
Super Show which was held in Las Vegas in January 2001. (Ex. 155 at
6-7, 19; Ex. 154; Ex. 147 at 20)
Passo knew that Michael Hogan owned a company in the
convention industry. He claimed not to know the name of the
company. (Ex. 20 at 66-67) Passo also denied knowing that Michael
Hogan had any involvement with United. (Ex. 20 at 69) Hogan
testified that he probably told Passo that his brother worked at
United. (Ex. 15 at 39) Indeed, given the frequency of
communication among William Hogan, Passo and Simon relating to
63 He claimed not to know his brother's position with United.
(Ex. 15 at 18)
50
United, it is difficult to credit Passo's claim he was unaware
Michael Hogan was an officer of United. Indeed, Michael Hogan's
involvement with United was known to Local members on the
convention floor. (Ex. 205 at 15-16; Ex. 156 at 36) Michael Hogan
had also introduced himself as being associated with United to the
Local's Secretary-Treasurer and dispatcher before the Trusteeship.
(Ex. 25 at 41; Ex. 5 at 21, 27, 33)
E. Hogan Introduced Local 631 Officials to his brother,
Michael Hogan
In the Local's 1998 election five slates of candidates
ran. (Ex. 3) Murphy was elected Secretary-Treasurer. He took
office in January 1999. Murphy rehired Breymann as dispatcher.
Breymann had been the Local's dispatcher from January 1990 through
December 1992. (Ex. 5 at 6)
Hogan acknowledged that his brother Michael asked to be
introduced to Local 631 officials. (Ex. 15 at 22-24) His brother
told him, " . . . Rick [Simon] has been negotiating with the prior
administration to do some things here for the labor problems here
in Las Vegas." (Ex. 15 at 24)64 Hogan agreed to make the
introduction. (Ex. 15 at 22)
Accordingly, during a Western Region Delegates meeting in
_______________
64 Hogan also testified that his brother told him that Simon,
"was trying to set up some kind of a deal to supply labor that
would be Teamsters." (Ex. 15 at 24)
51
Las Vegas in late June 1999,65 Hogan introduced his brother to
Breymann at Bally's Hotel. (Ex. 15 at 25-26; Ex. 5 at 22, 25)66
This was approximately three months after United Temps was
incorporated in Nevada. (Ex. 24)
Passo also attended the Western Region Delegates meeting
in June 1999. (Exs. 100 and 101) When asked whether he told Passo
that his brother Michael worked for United, Hogan testified,
Probably, but I'm not sure. I don't know that
I ever made that known to Dane.
When Mike came over in Las Vegas that time
Dane was there, it's very possible then I said
to Dane: 'You know, Mike is -- you know -- he
is my brother. He is talking to those guys
from the Local.'
And that's a possibility, but I don't really
recall. I don't know that I ever did that.
(Ex.15 at 38-39)
According to then Local 631 Secretary-Treasurer Murphy,
during the Western Region Delegates meeting, he introduced himself
__________
65 The Western Region Delegates meeting was held on June 28
and 29, 1999 at Bally's Hotel. (Ex. 185) Registration for the
meeting was on June 27, 1999. (Ex. 185) According to Local 714
records, Hogan was at the Bally's Hotel in Las Vegas from June 27
to June 30, 1999. (Ex. 186) In addition, Murphy charged a meal at
the Bally's Hotel on June 28, 1999 in connection with the Western
Region Delegates meeting. (Ex. 187)
66 According to Breymann, the meeting was not open to the
public; only Teamster members were permitted to attend. (Ex. 5 at
25) Hogan testified that he made the introduction during a
cocktail reception at the Western Region Delegates meeting. (Ex. 15
at 22-23, 29)
52
to Hoffa and Hogan. (Ex. 25 at 15, 17, 26, 41-43)67 Hogan, in
Hoffa's presence, asked Murphy if he would be willing to meet with
some people who were not identified. (Ex. 25 at 17-19, 25, 27)
Murphy agreed. (Ex. 25 at 17)
F. Meeting Between United's Michael Hogan and Richard Simon
and Local 631 Secretary-Treasurer Murphy and Dispatcher
Breymann
After Murphy's conversation with Hogan and Hoffa, Michael
Hogan contacted Breymann to arrange a meeting. (Ex. 25 at 26)
Murphy recalled Breymann stated that Michael Hogan told him, "You
had a conversation with Mr. Hoffa and Mr. Hogan, and they said that
you would be willing to meet with us." (Ex. 25 at 26)
Murphy and Breymann met with Michael Hogan and Simon at
the Rio Hotel in Las Vegas, shortly after the Western Region
Delegates meeting in June 1999. (Ex. 25 at 25-26, 57; Ex. 5 at 21,
______________
67 According to Murphy, he introduced himself to Hoffa and
Hogan because he "was having some problems within the local with a
member who said he was affiliated with James P. Hoffa and the
Hogans out of Chicago." (Ex. 25 at 16) Murphy identified this
member as Vito Locascio. (Ex. 25 at 16) Locascio " . . . said he
was sent here by James Hoffa to oversee, see what's going on here
at the local, to head up his campaign during the campaign time of
his --- before he was elected . . . .." (Ex. 25 at 16) According to
Murphy, Hoffa and Hogan denied knowing Locascio. (Ex. 25 at 17) As
detailed below, after Local 631 was placed in Trusteeship, Passo
charged to the IBT at least eighty-seven meals where Locascio was
present. (Exs. 118-135, 144) Passo also arranged for Locascio to
attend the Teamster Leadership Academy, a rare event for a non-
officer or business agent. (Ex. 93 at 26-27) Locascio's relatives
lived across the street from William Hogan. (Ex. 86 at 29) Hoffa
said Passo introduced him to Locascio. (Ex. 78 at 97) When in
Washington, Locascio met with Hoffa. (Ex. 78 at 55; Ex. 147 at 52)
53
27), During this meeting, Michael Hogan and Simon gave their
business cards to Murphy and Breymann. (Ex. 25 at 40-41; Ex. 5 at
33; Exs. 18 and 171)61 Michael Hogan's business card reflected he
was Vice President of United Service Companies. (Ex. 18) On
Simon's business card he was identified as the CEO of United
Service Companies. (Ex. 171) Michael Hogan informed Murphy during
this meeting that he was Hogan's brother. (Ex. 25 at 26)
Both Michael Hogan and Simon spoke to Murphy about
entering into an arrangement with United. (Ex. 25 at 33-35) As
Murphy recalled:
Well, we met there, and the conversation went
on where the main frame of the conversation
was with Mike Hogan and Richard Simmons or
Simon, or whatever his last name was, was he
wanted to be able to -- he knew that we had a
problem with supplying sometimes the amount of
people that were needed for the setting up or
tear-downs at the conventions.
And he said he represented a company that
would be able to have 300 people-plus at any
time that the local was unable to fulfill its
call, and that he would be willing to pay back
to myself or the union a fee.
There was never a dollar figure. There was a
suggested fee of seven to ten dollars a body
or a head when they used those people.
And I informed them at that point that I felt
that would, first of all, possibly be illegal;
second of all, I believe it would violate my
contract with the convention companies that I
represent; and third of all, that it would
_______________
68 On Simon's business card given to Breymann, Simon noted his
cellular and home telephone numbers. (Ex. 5 at 66)
54
probably be in violation of my hiring hall as
well.
I wasn't going to go to jail or lose my
contract either way.
(Ex. 25 at 27-28)
Murphy explained to Michael Hogan and Simon that since he
was in office Local 631 had been able to meet the contractor's
calls because Breymann "did an excellent job at going out and
rolling the people over from show to show at 10:00, 11:00, 12:00
o'clock at night. He would put the efforts in there to see that
our people were working first." (Ex. 25 at 34) Murphy also
explained that if Local 631 could not fill the call through people
registered with the dispatch office, "we would go to the other
unions and seek help from them to fulfill our contractual
obligations." (Ex. 25 at 29) The other unions the Local went to
were the Laborers and the Carpenters Union. (Ex. 25 at 48) After
Murphy was removed, Passo would end the practice of going to the
other unions.
Under Michael Hogan's and Simon's proposal, the employees
of United would not have become Local 631 members and United would
not have entered into a collective bargaining agreement with the
Local. (Ex. 25 at 114-15; Ex. 5 at 29-32) Murphy understood from
the conversation with Michael Hogan and Simon ". . . that GES would
pay Simon's company directly . . . .." (Ex. 25 at 37) As Breymann
recalled,
55
. . . The only thing I had a real problem with
was they wanted to know whether or not they
could work their payroll out directly with the
employer rather than working directly,
underneath the contract which I said
"Absolutely not. Everybody needs to be
properly dispatched and there needs to be a
record, especially if these people are paying
a fee and so forth, I'm going to give them
credited hours." I could not see doing it any
other way . . . .
(Ex. 5 at 30) Murphy also understood that the United employees
would be paid less than the wages required under the red book
contract. (Ex. 25 at 38)
According to Murphy and Breymann, in addition to Michael
Hogan and Simon, two representatives from a carpet company were
also present at the meeting at the Rio Hotel. (Ex. 25 at 25, 40-41;
Ex. 5 at 21,27, 33)69 Murphy and Breymann testified that the
carpet company representatives asked that former Local 631 business
agent Tex Kimberlin ("Kimberlin") and former Local 631 steward
Manny Piaz be permitted to resume their roles in the convention
industry. (Ex. 25 at 28-29, 32-33; Ex. 5 at 33-36) 70 Both Murphy
and Breymann found it unusual that employer representatives made
____________________
69 Murphy testified that the representatives were from McNabb
Carpet. (Ex. 25 at 25) Breymann believed they were from Exhibitor
Carpet Services. (Ex. 5 at 33) Local 631 has collective bargaining
agreements with both companies. (Ex. 188)
70 It appears that Kimberlin worked as a labor coordinator for
Show Biz USA, a company Michael Hogan owns. (Ex. 26 at 56-57)
56
this request. (Ex. 25 at 33; Ex. 5 at 37-38)71
During the summer 1999 meeting, Murphy and Breymann
refused to agree to the arrangement Michael Hogan and Simon
proposed. (Ex. 25 at 35; Ex. 5 at 29-32) They also would not agree
to the requests the carpet company representatives made. (Ex. 25 at
25, 28-29; Ex. 5 at 34-36)72
G. Passo's Initial Involvement with Local 631
In approximately February 1999, the IBT and Joint Council
42 began to receive complaints from Local 631 members. (Ex. 32 at
6; Ex. 189)" For example, Local 631 member Locascio, a self-
proclaimed Hoffa and Hogan associate and a former member of Local
714 in Chicago whose relative lived across the street from Hogan,
contacted Santangelo about problems he claimed existed at Local
__________________
71 Breymann testified, ". . . I think it is out of the normal,
but I don't know. That just sent up a red flag." (Ex. 5 at 37-38)
72 Breymann testified that Kimberlin, who had been one of the
business agents for the convention industry before January 1999,
left a really bad taste in my mouth because of
a grievance that I had personally filed back
in '92, and it was worth a rather large sum of
money. And he turned around and asked me to
drop it, I refused to, and he ended up
dropping the case anyway. Never gave me a
reason as to why because it was fully
documented. And anybody who conducted
business like that on behalf of the members I
felt was less than appropriate.
(Ex. 5 at 35)
73 United Temps of Nevada was incorporated in Nevada on March
i, i999. (Ex. 24)
57
631. (Ex. 147 at 26; Ex. 86 at 29; Ex. 25 at 16) Former Local 631
Secretary-Treasurer Murphy testified that prior to the Local being
placed in Trusteeship, Locascio tried to solicit complaints from
members about Murphy. (Ex. 25 at 60)74
Scalf claimed that the IBT received numerous telephone
calls complaining about Local 631. (Ex. 12 at 38-39, 73) In
response to a request for records concerning all telephone calls
the IBT received regarding Local 631, the IBT provided copies of
only two telephone messages. (Exs. 190-91)75 Scalf's assistant, Leo
Deaner ("Deaner"), was responsible for handling member complaints.
(Ex. 192 at 11; Ex. 12 at 220-22) Deaner kept no records
concerning any of the complaints he received. (Ex. 192 at 14-15)76
In or about August 1999, Secretary-Treasurer Murphy
terminated Local 631 Vice President Frank Christian ("F.
Christian") as a business agent. (Ex. 193) According to Murphy, F.
Christian had failed to follow the Local 631 dispatch rules. (Ex.
________________
74 Locascio supported a slate of candidates in the 1998
election that ran against Murphy's slate. (Ex. 25 at 57-58)
75 Both messages were for Leo Deaner, Scalf's assistant. (Ex.
191) One message was from former Local 631 Vice President Frank
Christian dated February 10, 2000. (Ex. 191) The other message was
from Robert Hill, a Local 631 member and then a chief steward in
the trade show industry, dated November 2, 2000. (Ex. 191; Ex. 291
at 32)
76 Scalf testified that Deaner told him that Locascio called
about Local 631. (Ex. 12 at 222)
58
25 at 70)77 On or about October 14, 1999, Murphy filed charges
against F. Christian for failing to follow dispatch procedures.
(Ex. 194)78 In March 2001, the IBT dismissed these charges. (Ex.
195)
After Murphy's rejection of Simon's proposal in
approximately the summer of 1999, events happened rapidly. During
a September 15, 1999 general membership meeting, Local 631 member
Jeff Dudash ("Dudash") made a motion to conduct a vote of no
confidence against Secretary-Treasurer Murphy. (Ex. 196) By letter
dated October 4, 1999, then Local 631 Vice President F. Christian
informed General President Hoffa of this no confidence vote. (Ex.
197) The letter noted that Dudash made the motion and Locascio
seconded the motion. (Ex. 197)
Even at this stage, Passo was active. Passo brought the
complaints regarding Local 631 to Hoffa's attention. (Ex. 20 at
113-14; Ex. 21 at 256-60) Passo requested Hoffa to appoint him to
be Hoffa's Personal Representative to Local 631. (Ex. 20 at 113-14)
On November 5, 1999, Hoffa granted Passo's request. (Ex.
10) Hoffa also appointed Santangelo and International
Representatives Turner and John Kikes ("Kikes") to be Personal
________________
77 According to Santangelo's January 2000 report to Hoffa, he
found that F. Christian was terminated "for his independent
opinions at meetings and job sites." (Ex. 3 at 4)
78 It also appears that F. Christian filed charges against
Murpny.
59
Representatives to the Local. (Exs. 13-14; Ex. 32 at 16-17)
Santangelo, Turner and Kikes conducted an investigation into the
complaints regarding Local 631. (Ex. 3)
On February 29, 2000, there were five calls from Hogan's
cellular telephone to Passo's cellular telephone. (Exs. 68 and 76)79
The next day, on March 1, 2000, Passo, Hogan, Santangelo and Turner
went to Local 631 to speak to Secretary-Treasurer Murphy. (Ex. 25
at 65-66; Ex. 20 at 116; Ex. 15 at 100; Ex. 32 at 13) At the time
Hogan went with Passo and Santangelo to Local 631, Hogan did not
have any IBT position or any assigned role with respect to that
Local. (Ex. 12 at 60)80 Hogan testified that he was in Las Vegas
at this time because he was on a labor panel for the Exhibitor
Assisted Contractors Association which was then having a meeting in
Las Vegas. (Ex. 15 at 83-84)81
In March 2000, prior to Local 631 being placed in
______________________
79 On February 17, 2000, Passo and William Hogan had a meal
together in New Orleans during the AFL-CIO Convention. (Ex. 15 at
81-82; Ex. 20 at 120; Exs. 116 and 117)
80 Hogan was not appointed an IBT Representative until May
2000. (Ex. 143) Indeed, Scalf, Hoffa's Executive Assistant who
supervised Hogan as an International Representative, acknowledged
that he never had given Hogan an assignment in Las Vegas. (Ex. 12
at 60 )
82 Local 714 paid for Hogan to travel to Las Vegas at this
time. (Exs. 265-66) On the credit card statement the notation for
Hogan's trip to Las Vegas was "IBT MTG." (Ex. 265) Hogan was in
Las Vegas from February 28 through March 2; 2000. (Ex.. 265) Passo
was in Las Vegas from February 29 through March 2, 2000. (Exs. 118-
119)
60
Trusteeship, Hogan and Passo visited the Las Vegas Convention
Center together. (Ex. 15 at 84-85) Hogan claimed,
They asked me to come with them, is all. I
don't remember how I hooked up with them.
Well, Dane was there. He knew I was there.
He called me. We walked through the Hall. I
think after we went through the convention
center we went back to the Local office . . . .
(Ex. 15 at 86)
On March 1, 2000, Passo's IBT records reflected that he
charged to the IBT a meal he had with Hogan, Santangelo, Turner and
F. Christian, the Local 631 Vice President whom Secretary-Treasurer
Murphy had terminated as a business agent. (Exs. 118-119) Also on
March 1, 2000, Passo and Hogan met alone to discuss Local 631.
(Exs. 118-19)82
Passo's March 1, 2000 appearance at the Local was the
first time Murphy had seen Passo at Local 631. (Ex. 25 at 22-24)
During this meeting, Passo, Hogan, Santangelo and Turner told
Murphy that General President Hoffa recommended that he do three
things: rehire business agent F. Christian and office employee Pam
Peabody and terminate Leslie Johnson. (Ex. 20 at 116; Ex. 15 at
100; Ex. 32 at 13; Ex. 25 at 65-66; Ex. 193)83 On March 3, 2000,
____________________
82 This meal, which cost $166.21, was at Piero's Italian
Cuisine. (Exs. 118-19) Where asked why he discussed Local 631
business with Hogan at this meal, Passo claimed, "[t)o tell you the
truth, I don't know how he got involved in that." (Ex. 20 at 128)
Since Passo was the one who involved him, the statement is not
credible.
83 Johnson and Murphy live together. (Ex. 25 at 69)
61
Murphy wrote to Hoffa setting forth his reasons for not complying
with these requests. (Ex. 193; Ex. 25 at 66)
According to Passo's IBT records, the next day, March 2,
2000, he, Hogan, Locascio, who had been a Local 714 member when
Hogan was the Local's principal officer, Locascio's brother
Michael, and Sherri Muckler, a steward in the convention industry,
met to discuss Local 631. (Exs. 118-19; Ex. 147 at 34, 133-134; Ex.
20 at 129-31)84 Santangelo and Turner were absent.
Between the March 1, 2000 meeting at Local 631 and April
5, 2000, when Local 631 was placed in Trusteeship, there were at
least twenty-one calls from Hogan's cellular telephone to Passo's
cellular telephone. (Exs. 67-69)85 In addition, during this period
there were seven calls from Passo's cellular telephone to Hogan's
cellular telephone. (Exs. 43-45, 76)
H. General President Hoffa Placed Local 631 in Trusteeship
In January 2000, IBT Vice President and Joint Council 42
President Santangelo forwarded a report to General President Hoffa
recommending that Local 631 be placed in Trusteeship. (Ex. 3) In
his written report, Santangelo found that
Local 631's contracts and the work they cover
do not seem to be protected. Lots of Teamster
work is being allowed to slip away to outside
____________
84 Locascio's cousin, Sebastian Maniscalco, lived across the
street from Hogan. (Ex. 147 at 45; Ex. 86 at 29)
85. Six of the. twenty-one calls were longer than five minutes.
(Exs. 67-69)
62
contractors. If this is not stopped,
hundreds, if not thousands, of Teamster jobs
will be lost.
(Ex. 3 at 4) In addition, Santangelo reported that grievances were
not being filed, members of the Stagehands and Carpenters unions
were trying to get Local 631 members to join those unions, Local
business agents were not performing their duties, Murphy was
replacing stewards who acted independently and one of the Local's
business agents made an ethnic slur. (Ex. 3)
Santangelo described in his report the investigation that
he and Personal Representatives Kikes and Turner did. (Ex. 3) In
addition, Santangelo attached to his memorandum reports Turner and
Kikes had prepared. (Ex. 3) Although Passo had also been appointed
a Personal Representative to Local 631 and had been in Las Vegas
actively meeting with former Local 714 member Locascio, he did not
prepare any written report. Nor was he mentioned in Santangelo's
report about Local 631. (Ex. 32 at 19; Ex. 3)
On April 5, 2000, Hoffa placed Local 631 in Trusteeship.
(Ex. 14) Hoffa appointed James Wilkerson, the former principal
officer of Local 14 in Las Vegas, as Trustee. (Ex. 198)86 In
addition, Hoff a appointed Marty Frates, a business agent from Local
70 in Oakland, California and a Hoffa appointee to a UPS National
__________________
86 Between March 1965 and April 1995, Wilkerson had been
employed at Local 14 in Las Vegas. (Ex. 26 at 5-6) He was the
principal officer of Local 14 for 28 years.- (Ex. 26 at 5-6)
Wilkerson had also been a Trustee and the. Recording Secretary, for
Joint Council 42. (Ex. 26 at 6)
63
Grievance Panel, as Assistant Trustee. (Ex. 198; Ex. 82 at 5-8, 10,
64)87
Wilkerson had retired as the Secretary-Treasurer of Local
14 in April 1995. (Ex. 26 at 5) In approximately 1966, then IBT
General President James R. Hoffa had appointed Wilkerson to be
Trustee of Local 14. (Ex. 26 at 15) In approximately September
1999, Santangelo asked Wilkerson if he would be interested in
coming out of retirement and becoming the Trustee of Local 631.
(Ex. 26 at 7-8) After Wilkerson's conversation with Santangelo,
also in approximately September 1999, Hoffa called Wilkerson and
asked if he would be interested in becoming Trustee of Local 631.
(Ex. 26 at 7, 11) Wilkerson agreed. (Ex. 26 at 11-14)
According to the Trusteeship notice, Local 631 was placed
in Trusteeship for the following reasons:
1. Membership discontent is at a dangerous
level. Members complain that the Local Union
has failed to file grievances or failed to
file them in a timely manner, the Local has
failed to keep members abreast of the status
of grievances, and has negotiated substandard
agreements with employers ....
2. Members have complained that the Local
Union has failed to enforce the collective
bargaining agreements. Work previously
performed by Local 631 members is being
subcontracted to non-Teamster employers. If
this is permitted to continue, a substantial
number of jobs will be lost as a result of
87 Frates has been a business agent with Local 70 for twenty-
three years. (Ex. 82 at 6) Frates had been a Local 70 Trustee for
approximately seven years in the 1970s. (Ex. 82 at 6)
64
employers diverting traditional Local 631 work
elsewhere ....
3. Local members and staff have complained
that officers and representatives of the Local
are inexperienced and unable to provide
adequate representation to the members . . . .
4. As a result of the Local's failure to
provide the representational services to which
members are entitled, general membership
meetings have become hostile, chaotic and
counter-productive . . . .
5. In addition, employment decisions by the
Principal Officer have reportedly been
motivated by political animus . . . .
(Ex. 14) The Trusteeship notice described the appointment of
Santangelo, Turner and Kikes to be the General President's Personal
Representatives to Local 631 and their activities in that capacity.
(Ex. 14) Passo had also been appointed a Personal Representative
to Local 631 but his involvement was not disclosed and his
activities not listed. (Ex. 14)
On April 5, 2000, Passo was a member of the group that
went to Local 631 to seize the Local to put it in Trusteeship. (Ex.
21 at 264-65) Secretary-Treasurer Murphy and the Local's other
officers were terminated. (Ex. 26 at 14) In addition, several
other Local employees, including dispatcher Breymann, were also
removed. (Ex. 5 at 55-56)
On April 5, 2000, the day the Local was placed in
Trusteeship, there were five calls from Passo's cellular telephone
65
to Hogan's cellular telephone. (Exs. 45, 76)88 In addition, there
were two calls from Hogan's cellular phone to Passo's cellular
phone on April 5, 2000. (Exs. 69, 76)
Passo selected Local 631 member Whitfield to be one of
the business agents for the convention industry. (Ex. 26 at 40-41;
Ex. 6 at 5) She began work effective April 13, 2000. (Ex. 6 at 5)
Whitfield had been a Local 631 member since March 1983. (Ex. 200)
She had worked in the convention industry for twenty-three years
and had been a steward in the convention industry since the 1980s.
(Ex. 6 at 11)
After the Local was placed in Trusteeship, Benboe was
also hired as a business agent for the convention industry. (Ex. 26
at 40) Benboe had been a business agent with Local 222 in Salt
Lake City and Local 190 in Billings, Montana. (Ex. 149 at 6)89
Whitfield worked in the field. Benboe was responsible for handling
grievances in the convention industry. (Ex. 26 at 41-42)
After Local 631 was placed in Trusteeship, Passo remained
in Las Vegas for long periods over several months. He was in Las
Vegas for the following periods: eleven days from April 4 through
April 15, 2000; 60 days from April 19 through June 19; 11 days from
__________
88 The April 5, 2000 calls from Passo's cellular telephone to
Hogan's cellular telephone were made at the following times: 7:49
a.m, 11:14 a.m, 1:09 p.m., 7:47 p.m. and 7:56 p.m.. (Exs. 45, 76)
89, Immediately prior to being hired at..Loca1 631, .Benboe was
employed at the Riviera Hotel and Casino. (Ex. 149 at 9)
66
July 5 through July 16; 21 days from August 3 through August 24; 33
days from September 6 through October 9; 6 days from October 20,
2000 through October 26 and 14 days from November 5 through
November 19, 2000. (Exs. 120-135, 201) Of the 229 days between
April 4 and November 19, 2000, Passo was in Las Vegas for 156 days.
(Ex. 201)90
According to Scalf, after the Trusteeship, Passo
"monitored" Local 631. (Ex. 12 at 76-77) Trustee Wilkerson
admitted that although Passo was regularly at Local 631, he did not
know what Passo's duties were in Las Vegas. (Ex. 26 at 6, 23)
Passo explained his presence to Wilkerson as being to ensure
Hoffa's re-election. (Ex. 26 at 28-29) Wilkerson recounted Passo
stating:
"I'm here to get -- my job is to get Hoffa
reelected." Eventually he'd say, "You know,
I'm Hoffa (sic) personal assistant. He wants
me to make sure things are going good in Las
Vegas."
(Ex. 26 at 28-29)91
_______________
90 The IBT paid approximately $18,501 in hotel bills, $11,522
in car rental bills, $8, 653 in airfare and $21, 256 in meals and
other expenses, including gasoline, for Passo's stays in Las Vegas.
(Exs. 120-135, 201) Accordingly, the IBT paid approximately
$59,932 for Passo's trips to Las Vegas between April 4, 2000 and
November 19, 2000. (Exs. 120-35, 201)
91 When asked what Passo did in Las Vegas, business agent
Benboe testified,
Basically, it was just-my- understanding that
he was here to help assist in the reelection
campaign that is upcoming for Mr. Hoffa, and
67
I. Hogan Introduced Passo to United CEO Simon
After the Local was placed in Trusteeship, Hogan
introduced Passo to Simon because he knew that Simon unsuccessfully
had tried to reach an arrangement with the Local's prior officers.
(Ex. 15 at 24-25; Ex. 20 at 64-65, 67) Hogan claimed he made this
introduction only after Passo reported to him that the Local was
regularly unable to meet the calls the trade show contractors made
for employees. (Ex. 15 at 47-48) If Passo asserted this, there
appears to be no factual basis for Passo's claim. 12
As a result of Hogan's introduction, Passo and Simon
began discussing an arrangement between United and Local 631. (Ex.
_____________________
he was also here to advise Washington, D.C. on
the status of the local, how we were coming
together.
Apparently, my predecessors did not do that
well of a job in representation. He was kind
of an overseer.
Again, I want you to understand I was never
directly told that, but this is what I
deducted.
(Ex. 149 at 15-16)
92 Passo claimed that he told Hogan that Local 631 could not
meet the calls on almost all shows. (Ex. 21 at 266) However, Passo
admitted he knew that the Local was unable to meet the call only on
large shows. (Ex. 21 at 266) Moreover, as noted above, in January
2001, the Local's dispatcher testified that the Local was unable to
meet the call for workers "maybe three times" in the nine month
period since the Local was placed in Trusteeship. (Ex. 9 at 14)
Passo's and Hogan's exaggeration of the lack of ability to meet the
call was part or their scheme to justify extraordinary concessions
to United.
68
20 at 73-74) Under the initial Passo-Simon arrangement, Local 631
would grant United significant concessions from the red book
contract covering work in the trade show and convention industries.
United would be contacted for employees after the Local 631
dispatch office ran out of individuals to refer to work. (Ex. 20 at
160-61)53 In reaching their arrangement, Passo and Simon only met
in bars or restaurants. (Ex. 20 at 73-74, 88, 103, 109, 165, 172-
74) They never met at Local 631 or United's offices. (Ex. 20 at
73-74, 88, 103, 109, 165, 172-74)
Simon told Passo that his United employees were paid
$6.00 per hour. (Ex. 20 at 87) As discussed above, the minimum
hourly rate under the red book agreement was $12.49, $6.49 per hour
more. Indeed, the federal minimum wage was $5.15. (Ex. 202) In
addition, under the red book contract, United would have had to pay
$7.90 per hour per employee in benefit contributions. (Ex. 4 at 11,
26-27)
According to Passo, he gave Simon a copy of the Local's
contract with GES. Simon instructed Passo that he should have
concessions from that agreement. (Ex. 20 at 75-77) Passo then
pressed them on the Local. (Ex. 20 at 84-85) For example, in
____________________
93 According to Passo, Simon's company would be called after
all individuals registered with Local 631 had been called and IBT
Locals 14 and 995 had also been called. (Ex. 20 at 160-61) In
contrast, Trustee Wilkerson understood from his conversations with
Passo that, under the proposed agreement, Simon's company would be
called before Locals 14 and 995 and the non Teamster, LCr7als. (Ex.
26 at 44-45)
69
Simon's first proposal Passo advocated there were to be no employer
benefit contributions. (Ex. 20 at 75-77; Ex. 26 at 45)
Passo told Local 631 officials that Simon had between 300
and 400 employees that he was willing to put in the union. (Ex. 26
at 47; Ex. 149 at 41-44, 59, 82; Ex. 82 at 73) The actual
employees' decision on membership was irrelevant to Passo's plan.
Passo and Hogan and no one under either's direction ever spoke to
the United employees. (Ex. 20 at 109-110 Ex. 15 at 60) United
employees did not sign any showing of interest cards for the
Teamsters or any Teamster membership applications. (Ex. 20 at 207;
Ex. 26 at 53; Ex. 15 at 61)
The United employees never designated the IBT or Local
631 as their bargaining representative. Indeed, Local 631, under
Passo's oversight and Hogan's guidance, never tried to organize the
United employees. (Ex. 20 at 109-110, 207; Ex. 6 at 103-104; Ex. 82
at 52-53)9' For example, the Local's organizer, Ray Isner
______________________
94 William Hogan testified as follows:
Q: Have you ever been to the United Maintenance offices in
Las Vegas?
A: No.
Q: Have any employees of Mr. Simon's company ever signed any
"showing of interest" cards with the Teamsters?
A: Not that I'm aware of.
Q: How many employees are there of Mr. -Simon's company?
A: I have no idea.
70
("Isner"), who was involved in all organizing efforts since the
Trusteeship, and the two other organizers assigned to Local 631
never tried to organize United. (Ex. 79 at 14-16, 19-22; Ex. 80 at
23; Ex. 81 at 29)
Moreover, before discussing any agreement with United CEO
Simon, Passo and Hogan and no one at their direction ever held a
meeting with the United employees to formulate bargaining demands
analogous to what Article 27 of the Local 631 Bylaws required for
IBT members. (Ex. 20 at 109-110 Ex. 15 at 60; Ex. 296) Indeed, as
detailed below, Passo's and Hogan's actions to get an agreement for
United were inconsistent with the provisions of the IBT's
Organizing Guide. However, they were consistent with colluding
with an employer to obtain concessions from a governing contract.
Most of Simon's employees appeared to speak only Spanish.
(Ex. 90 at 9-11; Ex. 6 at 90, 97; Ex. 156 at 27-28; Ex. 82 at 74;
Ex. 83 at 6-7; Ex. 203 at 25; Ex. 26 at 67; Ex. 204 at 8; Ex. 155
at 13) Local 631 members noted United supervisors were assigned to
each work crew of Simon's employees. (Ex. 83 at 23; Ex. 90 at 28-
30; Ex. 6 at 81-82) These supervisors prevented Spanish speaking
Q: Do you know what they are paid?
A: I have no idea.
Q: Do they receive benefits?
A: I have no idea..
(Ex. 15 at 61)
71
Local 631 members from talking to Simon's employees. (Ex. 90 at 30;
Ex. 6 at 81-83; Ex. 156 at 52; Ex. 83 at 9)
Passo's lack of interest in the employees was evident by
his actions. Shortly after the Trusteeship was imposed, Local 631
member and trade show steward Henry Ortega ("Ortega") suggested to
Passo putting together a program to reach out to the Las Vegas
Hispanic population to join the union and receive training for work
in the convention industry. (Ex. 204 at 10-12) 95 Passo never
contacted Ortega about his proposal. (Ex. 204 at 12) In addition,
at a Local 631 membership meeting, Local 631 member Alina Hernandez
("Hernandez") proposed that the red book contract be translated
into Spanish. (Ex. 83 at 12-13) According to Hernandez, Passo had
her escorted out of this meeting. (Ex. 83 at 12-13)
In order to protect Teamster wages and benefits under the
red book agreement and to assist the United employees, despite
obstacles erected by Passo, Local 631 members informed Simon's
employees they could register at the Local 631 dispatch office to
secure work at the contract wage rate with benefit fund
contributions made on their behalf. (Ex. 83 at 6-8; Ex. 155 at 31-
32; Ex. 86 at 21; Ex. 6 at 90; Ex. 156 at 29) Indeed, if Simon's
employees had registered with the Local 631 dispatch office, they
would have been sent to work when necessary to meet the call and
______________
95 Trustee Jacobson had a similar conversation with Orfieaa.
(Ex. l at 132-33)
72
would have been paid pursuant to the red book agreement which
provided for a minimum $12.49 per hour wage rate and health and
welfare and pension contributions to be made by the employer on the
first hour worked, as opposed to Passo's arrangement.96
J. Passo Pressured Local Officials to Enter Into a
Substandard Arrangement with United
1. Passo Urged Trustee Wilkerson to Enter into a
Substandard Arrangement with Simon's Company
After Passo conferred with Simon, in approximately June
2000, Passo spoke to Trustee Wilkerson about an arrangement for
concessions to United. (Ex. 20 at 95; Ex. 26 at 43-46, 49)
Wilkerson immediately recognized the agreement Passo advocated for
Simon was substandard and he would not sign it. (Ex. 26 at 44-50)
Passo wanted Wilkerson to sign an agreement which
provided that if the Local could not fill the call with people from
the dispatch office,
[r]ather than go to [Local] 14 or
[Local] 995 or the Stagehands or the
Carpenters or Laborers. The deal was that we
would call these guys, this company. And he
would furnish those people at a much lesser
scale.
__________
96 Instead, as detailed below, Passo, Simon and Hogan colluded
to create a new. subclass of employees,-the D1 and D2 -workers, who
would not be eligible for the contract rates. (Ex. 84)
73
(Ex. 26 at 45)97 Wilkerson would not sign the agreement because,
"[t]here was no health and welfare, no pension, wage scale was much
less than what the standard wages were in the existing contracts."
(Ex. 26 at 45) Under Passo's proposed agreement, Wilkerson
understood that United would pay its employees $8.00 an hour, while
the minimum hourly rate under the red book contract was $12.49 an
hour. (Ex. 26 at 48; Ex. 4 at 11) In contrast to Passo's
arrangement which would only cost the employer $8.00 per hour per
employee, as discussed above, the minimum hourly cost to the
employer per employee under the red book agreement was $20.39. 98
Accordingly, under Passo's proposal made to Wilkerson, Simon would
have saved a minimum of $12.39 per hour per employee. At the two
or three hundred employees Passo claimed he was talking about,
Simon would have paid $2,478 to $3,717 less per hour than the red
book contract signatories for non A list labor. Passo did not have
a draft of this proposal. (Ex. 20 at 78; Ex. 21 at 267)
Wilkerson also recalled under Passo's first proposal that
Simon's employees would not immediately become members of Local
631, "but in an elongated process, eventually they would probably
become members." (Ex. 26 at 46) Wilkerson responded negatively to
___________________
97 According to Wilkerson, Passo told him that United had 400
people available to fill the calls from the contractors. (Ex. 26 at
52)
98 This figure included contributions for casual employees of
$3.75 per hour for health and welfare benefits and $4.15 per hour
to the Western Conference Pension Fund. (Ex. 4 at 26-27)
74
this Passo arrangement. As Wilkerson recounted, " . . . in reading
his notes and listening to him [Passo], I said, "You're wasting
your time with me. You are not going to get anywhere with that
piece of crap with me." (Ex. 26 at 46)
Passo asked the Local's attorney, Joseph Kaplan
("Kaplan"), to persuade Wilkerson to approve the agreement. (Ex. 26
at 46) Kaplan agreed with Wilkerson that the agreement "would be
absolute error." (Ex. 26 at 46)99 Wilkerson told Passo, "'I can't
be a party to that. Period. You're breaking down conditions here .
. . .." (Ex. 26 at 52) Despite Passo being repeatedly told the
negatives, which were obvious, of his arrangement to assist Simon,
Passo, with no rational countervailing arguments, kept pressing
Local 631 officials for its acceptance.
Furthermore, Wilkerson specifically focused Passo on the
red book contract's "most favored nations" clause which would allow
the other trade show contractors to reduce the wages they paid to
the level of the agreement that resulted from Passo's concessions
_______________________
99 When asked what he told Wilkerson about the agreement,
Passo testified as follows:
[t]hat I was negotiating a contract with Rick
Simon and I told him about the wages, the cut
wages, the cut in benefits and he didn't know,
you know, if we should give him a break or
not.
He didn't like the idea. I talked to Joe
Kaplan. Joe Kaplan didn't like the idea.
(Ex. 20 at 95)
75
to Simon's company. (Ex. 26 at 48) Passo acknowledged that
Wilkerson and the Local's attorney told him about the "most favored
nations" clause. (Ex. 20 at 158-59) In approximately August 2000,
Assistant Trustee Frates also reminded Passo, in the face of his
urging concessions for Simon, about the most favored nations clause
in the red book contract. (Ex. 82 at 70)
In an unpersuasive attempt to explain his persistence in
seeking concessions for Simon, Passo contended he was ignorant of
the most favored nations clause's meaning. He testified:
Q: And what did you discuss about that?
A: To tell you the truth, I didn't understand it in the
beginning.
Q: At some point did you have a discussion about it where
you had looked at the contract and you understood what
the issue was?
A: Yes, I understood -- it was made know to me about the
favored nations clause by the attorney and by Jim
Wilkerson.
Q: What did Mr. Wilkerson tell you about the most favored
nations clause?
A: That, you know, you we can't let people work for
different rates. To tell you the truth, I still don't
clearly understand it.
(Ex. 20 at 158-59)
As Wilkerson explained, what Passo proposed did not
appear to be a collective bargaining agreement, but a "broker's
agreement." (Ex. 26 at 49) According to Wilkerson, under a typical
:broker's agreement the broker would sell the 1aboY- for $12.49 an
76
hour, but would only pay the workers $8.00 an hour. (Ex. 26 at 50)
When asked whether unions generally entered into such agreements,
Wilkerson responded, "Oh, Lord, no. That would be an absolute
mistake for any union to do that." (Ex. 26 at 50) In addition,
Wilkerson found it unusual for a union official to be negotiating
with an employer without having spoken to any of the employees at
the company as Passo was doing. (Ex. 26 at 50-51)100
Passo spoke to Wilkerson approximately six different
times urging his approval of an agreement with concessions for
United. (Ex. 26 at 70) Passo several times came back to him with
minor changes in the proposed arrangement. (Ex. 26 at 48, 53-54)
For example, in Passo's original proposal there were no employer
health and welfare contributions. (Ex. 26 at 48, 71; Ex. 20 at 76-
78) After Wilkerson refused to agree, Passo then told him, as
Wilkerson recalled, " . . . 'Okay. They'll start paying health and
welfare after six months,' or 'They'll pay the pension after such
a period of time, but it would be a lesser amount. ' None of it was
acceptable." (Ex. 26 at 71)10` When asked to describe the problems
______________
100 Indeed, Wilkerson's understanding was also reflected in
the IBT's Organizing Guide and Section 27 of the Local 631 Bylaws,
both of which Passo ignored. (Exs. 293 and 296)
10l Wilkerson testified,
It was the same thing. He'd come back again
with -- I'm sure after he talked to me that
one time, he'd go back _to whomever, and they
would agree t-o extend -- to stretch something
a little bit more and -- well, like, "We'll do
77
with Passo's agreement with Simon, Wilkerson explained,
The whole thing was illegal, the reduction --
reduced wage structure, the pension thing.
The pension has to be paid on the first hour
worked. Health and welfare. All these things
are required by the other employers. You just
can't do an agreement over here that is going
to be of a less financial burden than what is
already in place.
(Ex. 26 at 54) Wilkerson told Passo that he would only enter in an
agreement with United that was the same as the red book contract.
(Ex. 26 at 44-54)
Scalf recalled that Wilkerson complained to him about
Passo's substandard agreement with United. (Ex. 12 at 101) Scalf
testified:
Jim did call me once about that, I think it
was sometime after that Unity thing [the IBT's
Unity Conference in Las Vegas], maybe it was
even before that, I'm not real sure, and said
that he, wouldn't sign a contract that had
anything less then the wages and working
conditions.
(Ex. 12 at 101) According to Scalf, he told Wilkerson, "You're the
____________________
the health and welfare after the six months."
or "We'll do the pension after" --
And each time I'd say to him. "Dane, you
cannot do that. That is illegal. You cannot
do that."
And he would go back and then come back about
a month later or weeks later or whatever, it
was another version, but eventually it just--
he quit. Just stopped.
(Ex. 26 at 53-54)
78
Trustee, you're the one that's responsible for it. If you don't
think it's up to par, don't sign it." (Ex. 12 at 101) After
Wilkerson objected to Passo's agreement, Scalf did not ask Passo to
show him a copy of the agreement or discuss its terms. (Ex. 12 at
97, 108)
After Wilkerson refused to enter into the substandard
agreement, Passo, cloaked with his special relationship with Hoffa,
falsely claimed to Wilkerson that the contract had the support of
high-ranking International officials. He told Wilkerson that in
addition to Hogan, both Santangelo and Scalf wanted him to enter
into the agreement with Simon's company. (Ex. 26 at 88, 92)102 Both
____________________
102 During his sworn examination, Passo testified as follows:
Q: Did you ever tell anyone that Mr. Santangelo wanted 631
to enter into an agreement with Mr. Simon's company?
A: I don't remember if I did.
Q: Did you ever tell anyone that Mr. Scalf wanted Local 631
to enter into the agreement with Mr. Simon's company?
A: I don't remember if I did. If I did, it was probably to
pump up the members or something, this way it looks like
we are getting new members.
Q: Did Mr. Scalf want an agreement entered into with Mr.
Simon's company?
A: I don't know if he wanted an agreement, he wanted
teamsters.
(Ex. 20 at 187) Passo claimed not -to recall whether he told
Wilkerson that Santangelo approved the agreement with. Simon's
.company. He denied telling Wilkerson that:.Sca)-f- approved the
agreement. (Ex. 20 at 181-83)
79
Santangelo and Scalf denied approving Passo's proposed agreement
with Simon's company. (Ex. 32 at 41-43; Ex. 12 at 98-100)103 In any
event, Wilkerson told Passo that if Scalf wanted the agreement with
Simon's company entered into, Scalf should sign the agreement
himself. (Ex. 26 at 92) Passo was lying about the support from
other union officials to deceive Wilkerson into entering the deal
benefiting Simon that Passo had arranged.
As detailed below, shortly after Passo openly began to
advocate for the substandard arrangement for United, United
employees began to perform Teamster work during trade shows for
GES. (Ex. 26 at 68)104 As of March 2001, the Trusteed Local under
Passo's supervision had been ineffectual in preventing or
redressing GES's breaches of the contract.
__________________
103 Apparently, Passo attempted to cloak these false
representations with trappings of authenticity by ensuring that IBT
International officials would meet and be seen meeting Simon and
Passo at public places. (Ex. 32 at 24; Ex. 12 at 95) Indeed,
through his remarkable silence, he seems to have ensured even the
General President would wind up in a public place with himself and
his fellow co-schemers Simon and Hogan.
104 GES was the trade show contractor in Las Vegas most
aggressively using United employees to perform Teamster work. (Ex.
205 at 15, 23-27; Ex. 203 at 19-27; Ex. 6 at 74, 79, 236-39) It
appears that GES tried to create situations where the Local 631
dispatch office would be exhausted by calling far more people for
the work than necessary. (Ex. 26 at 82-83; Ex. 6 at 76-79) GES
would then send the dispatched employees home after the minimum
four hours pay required pursuant to Article II, Section A of the
red book contract. (Ex. 2 at 198-99, 214-218; Ex. 6 at 73; Ex. 4 at
13) It would then use the United emploxees._do__the work under the
guise of the Local 631 dispatc'^ -f`irw-bei= exhausted. (Ex. 26 at
82-83; Ex. 203 at 21)
80
2. Dinner Meeting with Passo, Simon,
Frates and Whitfield
In approximately late April or early May 2000, Passo told
business agent Whitfield that Simon had a pool of 400 workers he
could provide if the Local could not meet a trade show contractor's
call for workers. (Ex. 6 at 89-91)105 Passo asked Whitfield to dine
with Simon. (Ex. 6 at 89-91 & 93)106 Whitfield requested Assistant
_____________________
105 Whitfield was familiar with Simon's company because it did
janitorial work in the convention industry in Las Vegas. (Ex. 6 at
80-82)
106 Business agent Whitfield testified as follows:
. . . Dane, he knows Rick Simon. He has a
pool of people that he can pull from, but they
speak Spanish, and we'll have to get
interpreters.
Well, that's good. But like I told him, "We
have got interpreters out there . . . .
I said, "We don't need interpreters." I said,
"What we need are people who are going to stay
in our union hall, not just be an extra board,
or what have you," which is what he was going
to call them.
And so then he approached me with, "We need to
get them a contract."
And I was like, "Now wait a minute. Why can't
they just come in the hall, pay $40 and be on
the regular contract we already have? What is
the problem with that?"
Well, this is when he explained to me his
buddy Simon would be in town later on this
month and "We'll talk about it. And we'll
get a new contract."
81
Trustee Frates to accompany her to the dinner at a steakhouse with
Passo and Simon. (Ex. 6 at 93-95; Ex. 82 at 49)
Passo objected to Frates's presence, whom Hoffa had
appointed Assistant Trustee, at this meeting. (Ex. 6 at 95) When
Whitfield told Passo that she asked Frates to attend because she
was not experienced in negotiating contracts, Passo told her, "'I
do more contracts than anybody, and Hoff a knows I'm right.' So
[Passo] says, 'I can do it.' . . ." (Ex. 6 at 95)
As discussed above, Passo did not have experience
negotiating collective bargaining agreements. (Ex. 20 at 18-19)
Nor did he have any experience in the trade show industry. (Ex. 20
at 79) Hoffa denied knowing at this time Passo was involved in
negotiating a contract with Simon. (Ex. 78 at 29) Passo's lies
about Hoffa's endorsement and his own experience were consistent
with Passo's attempt to manipulate others into an agreement for
Simon.
And I said, "We don't need a new contract.
Just make them a party to this one." Like,
"You're making this harder than it is, Dane."
He goes, "No," he says, "There's a couple of
things in here you don't understand." He says
that, you know, "This will make this industry
better."
And I am thinking that doesn't work, but I
figured, okay. Well, you know, I'm new at
this. I'll back up and I'll watch. I mean I
don't mind learning.
(Ex. 6 at 90-91)
82
Passo, Simon, Whitfield and Frates met at a steakhouse in
Las Vegas. (Ex. 6 at 96; Ex. 82 at 49; Ex. 20 at 89-90) During
this meeting, Passo urged Whitfield and Frates to approve an
agreement for Simon's company which would have substantial
concessions from the red book contract. (Ex. 82 at 53-54, 72-73;
Ex. 6 at 44-54) Passo and Simon explained that they knew each
other from Chicago. (Ex. 82 at 53) Passo acknowledged to Whitfield
that his reason for pushing this arrangement was that Simon was his
friend. (Ex. 6 at 124 )
Frates recalled:
there were discussions with regard to Simon
signing a contract for the convention
industry; that he and Mr. Passo had been
discussing that; and that he indicated he
wanted some relief on the contract because he
would be providing help when we couldn't
provide it.
(Ex. 82 at 49-50) Simon and Passo had notes on a piece of paper
which indicated that Simon's employees would be paid $8.00 an hour.
(Ex. 6 at 96-97) This was the same figure Passo quoted to
Wilkerson. (Ex. Ex. 26 at 48)107
In essence, as the business agent noted, Passo's
_______________
107 Frates recalled that Passo and Simon agreed that the
United employees would be paid "at least $1 an hour less than what
everybody else would pay." (Ex. 82 at 53) As detailed below,
Passo's handwritten agreement with United in August 2000 provided
that United would pay its employees at least $2.49 per hour less in
wages alone. (Ex. 84) In addition as detailed below; Passo's
agreement eliminated overtime pay. for work during the hours of
10:00 p.m. and 6:00 a.m.. (Ex. 84)
83
agreement with Simon provided that Simon's employees could "come in
and work around the clock behind us at a different rate of pay."
(Ex. 6 at 97)108 Moreover, as discussed above, pursuant to the red
book contract, once an individual worked 150 hours in the industry,
if they worked between the hours of 10:00 p.m. and 6:00 a.m., they
would be paid one and one half times their base pay. (Ex. 4 at 13)
A later version of the Passo-Simon arrangement, the handwritten
agreement Passo sent to the IBT's Legal Department on August 29,
2000, provided that until the United employees worked, at least,
1,000 hours in the industry, they would not be paid time and one
half for hours worked between 10:00 p.m. and 6:00 a.m., unless they
had worked more than eight hours in a day or more than forty hours
in a week. (Ex. 84)109
________________
108 According to Whitfield, when Passo stated that the
employers would like the proposed agreement, she thought,
"[a]nything that makes the employer that happy is not going to be
good." (Ex. 6 at 97-98)
109 Whitfield also testified that Simon stated that if he had
an employee that he liked, he would be permitted to designate that
person a "developmental" worker. (Ex. 6 at 98-99) Pursuant to
Article I, Section G of the red book contract, employer signatories
were permitted to designate one developmental employee for every
50, 000 hours such employer contributed to the pension or health and
welfare funds for the prior year. (Ex. 4 at 5) Under the red book
agreement, developmental workers could be referred to work before
all individuals on the A list were working. (Ex. 4 at 5) When asked
whether there was any discussion at the meeting about developmental
employees being designated from Simon's company, Frates testified
as follows:
I can't remember. It sounds like it rings a
bell, but I can't remember the specifics. I
think it was, but I don't remember -- I just
84
Simon and Passo also explained that the United employees
would not get a raise until they had worked 300 hours in the
industry. (Ex. 6 at 98) In contrast, as discussed above, pursuant
to Article II, Section A of the red book contract, at that time,
after a Supplemental Worker worked more than 150 hours in the
industry, his hourly pay rate increased from $12.49 per hour to
$13.69 per hour. (Ex. 4 at 11)110
Contrary to the red book agreement under which the Local
631 dispatch office sent employees directly to the trade show
contractors, Simon and Passo provided that the Local 631
dispatcher, when the Local needed additional people, would
surrender this power to Simon's company which would send Simon's
employees to work. (Ex. 6 at 100-01; Ex. 20 at 161-62) Indeed,
Passo's later handwritten memorialization of his concessions to
United contained the following provision:
"D" list workers for this agreement shall be
administered thru a [sic] United Temp Company.
The Company shall recruit, hire, and dispatch
and deliver the "D" list workers to the
required site . . . .
(Ex. 84)
______________________
don't remember, but that does ring a bell.
(Ex. 82 at 67)
110 As discussed below, pursuant to Passo's handwritten notes
provided to the IBT on August 29, 2000, after an emplcyee worked
250 hours in the industry, his pay would_innreasp frnm_ $10.00 11 p„r
hour to $11.00 per hour. (Ex. 84)
85
The trade show contractors would pay Simon's company and
then he would pay his employees. (Ex. 6 at 120-121; Ex. 20 at 87)111
As a consequence, Simon would make his profits on the difference
between the red book contract wage rates and the substandard rates
and benefits conceded to him. 112
Whitfield recalled that Passo's arrangement with Simon
provided that United employees would have to work 150 hours for
health and welfare benefit fund contributions to be made on their
behalf. (Ex. 6 at 101-02) Passo acknowledged that under his
arrangement with Simon, he conceded that United would not make
health and welfare contributions for employees on the first hour
worked as the red book agreement provided. (Ex. 20 at 92-93; Ex.
4)113 Passo did not tell Scalf about his concessions for Simon
________________
111 This was consistent with the proposal Michael Hogan and
Simon made to Murphy and Breymann in 1999 which was rejected. (Ex.
25 at 35-37; Ex. 5 at 29-32, 39, 41)
112 Frates described Simon's company as a labor broker. (Ex.
82 at 77) Frates testified that on occasions the Teamsters would
enter into a collective bargaining agreement with a labor broker
"as long as whoever they're a broker for, you have a contract
with." (Ex. 82 at 77-78) Frates further testified that the labor
broker would enter into an agreement identical to the agreement
with the company to whom they provided services. (Ex. 82 at 78)
Wilkerson and Santangelo also described Simon's company as a labor
broker. (Ex. 26 at 49; Ex. 32 at 26)
113 In his testimony, Passo alleged that under his
arrangement, Simon would make benefit fund contributions after his
employees had worked fifty hours. (Ex. 20 at 92-93) However, in
contrast to his testimony, as detailed below, Passo's handwritten
agreement with United sent to the IBT on August .29, 2000, provided
that Simon would not make benefit fund contributions until his
employees had worked 250 hours in the industry. (Ex. 84)
86
concerning the benefit fund contributions. (Ex. 12 at 100) Under
the red book agreement, an employer must make health and welfare
and pension benefit fund contributions from the first hour worked.
(Ex. 4 at 24, 27; Ex. 2 at 187)
Under the Passo-Simon arrangement, the United employees
would not immediately become IBT members. Rather, as Whitfield
recalled,
Eventually, not right off the bat. But what
he had assured me was by the time that they
had worked enough hours in the industry to
become a C or A or whatever, then he would
give them the option, and he would take it out
of their check, Mr. Simon.
(Ex. 6 at 99-100)11
Frates and Whitfield refused to agree to the arrangement
Simon and Passo proposed. (Ex. 6 at 97-104 & 114-116; Ex. 82 at
54)115 Frates explained that he, Whitfield and Wilkerson "did not
want to have anything to do with" Passo's and Simon's concession-
laden arrangement. (Ex. 82 at 72) Frates stated,
My position was that if Mr. Simon wanted to
__________________
114 Whitfield testified as follows:
Q: So the employer would give them the option to join the
union?
A: Right, which that didn't make sense to me, but that's
what he said.
(Ex. 6 at 100)
115 Whitfield testified "And
of course I said no to
everything. There wasn't anything in there I liked." (Ex. 6 at 98)
87
sign a contract, he could sign the same
contract that GES and all the other employers
signed, dollar for dollar, penny for penny. I
reported this back to Mr. Wilkerson, and Mr.
Wilkerson was in total agreement.
(Ex. 82 at 54) Frates strongly opposed Passo's and Simon's
proposal because it would trigger the most favored nations clause
in the red book contract to the disadvantage of Local 631 's members
already employed in the convention industry. (Ex. 82 at 54)111
Frates also opposed the proposed agreement with United because
contract negotiations with the trade show contractors were coming
up in 2001, " . . . and in my opinion, it would have been asinine
to go in and negotiate something less right before negotiations."
(Ex. 82 at 55)
In response to the Passo-Simon proposal, Whitfield told
Simon and Passo:
. . . the way I look at it was, and this is
what I tried to explain to Mr. Simon. I said,
"Look, you and Dane may think this will work,"
I said, "but what you are going to end up with
is the general contractors, GES and Freeman,
are going to tell you, "Well, hey if I can get
these people for eight bucks, then I don't
need the A list, the B list, the C list, or C
pluses, you know. We can just pay these
guys."
And I said, then, actually you took that away
from the Teamsters and now what, he's a
dispatching company . . ..
______________
115 Frates testified that this clause meant that ". . . if we
gave somebody relief, we would be obligated to give the other
companies the same relief . . . ." (Ex. 82 at 54)
88
And I tried to make them understand that
besides that, not only have you done that, but
the GES contract, which everybody has signed
the "Me Too", which is the one we work under.
you might as well just throw this out the
window because what good is it? You know, you
just undercut everybody's entire livelihood
out there that works in that industry.
(Ex. 6 at 108) Whitfield also told Simon and Passo that Local 631
had to control the dispatching of workers and it was not acceptable
for Simon to send the workers directly to the trade show
contractors. (Ex. 6 at 100, 106-107)117
At his sworn examination, Passo claimed he could not
recall Frates' or Whitfield's opinion regarding the agreement. (Ex.
20 at 92) As discussed below, that claimed lack of memory was not
credible.
After Frates and Whitfield told Simon and Passo that they
would not sign the contract, Simon and Passo informed the Local's
representatives that they would continue to discuss it. (Ex. 82 at
56; Ex. 6 at 110) According to Passo, after the dinner meeting, he
conferred with Simon several more times regarding an agreement.
(Ex. 20 at 88, 98-100, 102-103)118
______________
117 Benboe, the other business agent for the trade show
industry, testified that Whitfield told him about the meeting with
Passo and Simon and stated, " . . . they could not arrive at an
agreement because . . . what had been tentatively agreed to was
substandard, and we'd just be opening a Pandora's box." (Ex. 149 at
49-50) _ _
.. 118 On May 2.6, 2000 and June 13,2000, telephone calls were
made from Local 631. to the-United office in Chicago. (Ex. n6)
Passo was in Las Vegas on those dates. (Exs. 122-25) The call on
89
Passo also frequently discussed with Hogan the
arrangement with United. (Ex. 20 at 79) Passo, although not
reporting to Scalf, his superior, about the details of his working
with Simon, believed he needed to keep Hogan informed. As Passo
explained he believed he needed, "[t]o let him know about the
contract, how it was going, to get some advice from him. I wasn't,
you know -- never in the convention industry." (Ex. 20 at 79)119
Hogan acknowledged that Passo kept him updated on his
conversations with Simon. (Ex. 15 at 93) Although Hogan discussed
the United arrangement with Passo, Hogan never spoke to the Local
631 Trustee about the arrangement with United. (Ex. 15 at 93)
During his sworn examination, Passo alleged that Simon
eventually agreed to pay his employees only $.75 to $1.00 less per
hour than the red book contract. (Ex. 20 at 91-92) Scalf recalled
that Passo told him that the agreement with United ". . . was
either 75 cents or a dollar less than the contract that was in
place there." (Ex. 12 at 112)120 However, as discussed below, the
__________________
June 13, 2000 lasted 22 minutes. (Ex. 206) The previous day, on
June 12, 2000, there had been a call from Passo's cellular
telephone to Hogan's cellular telephone at 8:42 a.m. which lasted
12 minutes and two calls, at 10:38 a.m. and 7:52 p.m, from Hogan's
cellular telephone to Passo's cellular telephone. (Exs. 47, 71, 76)
119 When asked what he discussed with Hogan about the
contract, Passo responded, "[t]he language, what I need, probably
some information with him, what does he think." (Ex. 20 at 81)
120 Scalf testified as follows - ---
Q: And what was your view of that?
90
handwritten agreement with United from late August 2000 that Passo
belatedly produced to the IRB belied his claims of a $1.00 per hour
difference. (Ex. 84)121
From the steakhouse meeting on, approximately once a week
for a few months, Passo urged business agent Whitfield to endorse
his arrangement with Simon's company. (Ex. 6 at 125) Passo also
introduced Whitfield to Hogan during one of Hogan's trips to Las
Vegas. (Ex. 6 at 232) Hogan instructed Whitfield that she "should
listen to Dane Passo." (Ex. 6 at 234)
Whitfield asked Passo why Simon did not sign a "me too"
A: My question would have been would it affect anybody
there. And the answer was no, it wouldn't because they
would only be used after everybody else was called, but
they would be Teamsters.
Q: And was there any discussion that you had with Mr. Passo
about the most favored nations clause in the master
contract?
A: I never even knew there was one there.
(Ex. 12 at 112)
_______________
121 Under Passo's agreement, the United employees would be
paid $10.00 per hour until they worked 250 hours in the industry at
which time they would be paid $11.00 per hour. (Ex. 84) In
contrast, the red book agreement provided that effective June 1,
2000, employees must be paid $12.49 per hour until they worked 150
hours in the industry at which time they would be paid $13.69 per
hour. (Ex. 4 at 11) Accordingly, under Passo's agreement, United
would pay its employees $2.49 less then the red book contract
required for the first 150 hours they worked, $3.69 per hour less
for hours 151 through 250 and $2.69 per hour less after 250 hours.
(Exs. 4, 84, .207) As detailed below, Passo also conceded
significant other economic concessions concerning overtime pay and
benefit fund contributions.
91
agreement to the red book contract. (Ex. 6 at 124) Passo responded
that Simon "doesn't like that contract." (Ex. 6 at 124) Through
his actions, it was apparent that Passo viewed himself as Simon's
agent to Local 631, rather than as a representative of employees.
Throughout the process, Passo, the Local's monitor from the IBT,
showed no concern for United's employees, never even considering
organizing them rather than accommodating the employer. 122 Indeed,
at the time Passo was pressuring Local 631 to enter into the
______________
122 Whitfield testified as follows:
Q: Had Mr. Passo spoken with any of the employees of Mr.
Simon's company?
A: He had not spoken with them, but what he had done was
speak to GES and Freeman.
Q: In other words, Mr. Passo had spoken to Mr. Simon, he had
spoken to GES and to Freeman?
A: Exactly.
Q: But he had not spoken to the actual employees that would
be covered under this agreement?
A: He had not.
Q: Did you ask him why he hadn't spoken to the actual
workers?
A: I asked him, I said, "Well, you know, do these people
have any say in it?"
Rick goes, "Oh, yeah." He says,
"They're going to make
money." __
Well, hello, What kind of money are they going to make?
(Ex. 6 at 103-04)
92
substandard agreement with United, there were two Local 631
organizers and an IBT organizer assigned to Local 631. (Ex. 79 at
5-6; Ex. 80 at 9-11; Ex. 81 at 6-7, 21) None made any attempt to
organize United; Passo never directed them to do so. (Ex. 79 at 19;
Ex. 80 at 23; Ex. 81 at 29)
After the steakhouse meeting with Passo, Simon and
Whitfield discussed above, Frates had a telephone conversation with
Simon. (Ex. 82 at 56-57; 68-69)123 Simon informed Frates,
That he [Simon] and Passo had reached
some type of understanding, and that he was
. . he would be ready to start up operations
August 1st, and that he wanted the shows and a
list of whatever was coming, and I basically
told him, "We're not into that yet."
(Ex. 82 at 68) 124 Frates refused to provide Simon such a list.
(Ex. 82 at 68-69)
K. Passo's Actions Concerning Dispatch Procedures at Local 631
As discussed above, if Local 631 were unable to meet the
contractor's call, the trade show contractor was able to hire from
any source. In an apparent effort to provide opportunities for
contractors to use United, Passo took steps to hinder the Local's
ability to meet the call for workers. For example, Passo opposed
contacting non-IBT Locals for unionized workers after the Local 631
_______________
123 This conversation was before August 30, 2000. (Ex. 82 at
56-57, 68-69)
124 As discussed below,Passo's-substandard handwritten
agreement with United referred. to employees hired after August 1,
2000. (Ex. 84)
93
dispatch office was exhausted. (Ex. 20 at 142, 145-46; Ex. 26 at
77-78; Ex. 82 at 44) In addition, Passo objected to business agent
Whitfield directly dispatching workers in an effort to meet the
call when the dispatch office was closed. (Ex. 20 at 150-56)125
As was obvious to the Assistant Trustee, Passo preferred
the trade show contractors to secure workers from Simon's non-union
company rather than permit Local 631 to meet the call by contacting
other unions such as the Stagehands and the Carpenters who would be
paid at the contract rate. (Ex. 82 at 72-73, 88) This was despite
Passo knowing the United employees were paid substantially less at
approximately $6.00 per hour. (Ex. 20 at 86) Despite Passo's
instructions, Trustee Wilkerson told the dispatchers to continue to
contact the Carpenters Local after the Local 631 dispatch office
was exhausted and the other Las Vegas Teamster Locals had been
called. (Ex. 26 at 77)126 In this way, Local 631 controlled who
______________
125 According to trade show business agent Benboe, in
approximately January 2001, after the IRB's investigation began,
the dispatch office began to be open on weekends when large shows
were in town in order to be able to meet the trade show
contractor's calls for workers. (Ex. 2 at 191-93) Dodds, the
Local's dispatcher, claimed she had stayed late and worked on
weekends since she began to work as the dispatcher in January 1999.
(Ex. 7 at 71-73)
126 There was inconsistent testimony regarding whether the
members of the Carpenters union had to pay the $40 dispatch fee to
Local 631. Dispatcher Dodds testified that if a person provided
proof that they were a dues paying member of the Carpenters Union,
that person did not have to pay the dispatch fee. (Ex. 7 at 76-77)
In contrast, according to Wilkerson and assistant dispatcher
Almaraz, when members of non-IBT Locals were dispatched from the
Local 631 dispatch office, they were required to pay a $40 dispatch
94
performed Teamster work in the Convention industry and could ensure
contract rates were paid. (Ex. 26 at 79-80)127 Moreover, Wilkerson
explained that it was beneficial to the labor movement for Local
631 to be able to fill the call with union members. (Ex. 26 at 80)
While Wilkerson was Trustee, Local 631 dispatcher Dodds
reported to him that Passo had ordered her not to call the
Carpenters Local when the dispatch office was exhausted. (Ex. 26 at
78) Passo admitted he opposed Local 631 contacting other unions
for workers after the Local 631 dispatch office exhausted its list
and after the other IBT Locals in Las Vegas were called for
workers. (Ex. 20 at 142, 145-46)128 Passo acknowledged that he may
have told Dodds not to call the Carpenters union. (Ex. 20 at 146)129
____________________
fee. (Ex. 26 at 79-80; Ex. 8 at 18)
127 When questioned by Local 631's attorney during her January
2001 sworn examination, dispatcher Dodds claimed that the trade
show contractors did not have to accept members from any other
union who were dispatched from Local 631. (Ex. 9 at 51-52) This
appears to be contrary to the red book agreement which required the
trade show contractors to obtain workers without regard to union
membership from the Local 631 dispatch office and the Local's
dispatch rules which provided "[t]here shall be no discrimination
for or against any applicant for registration or registrant because
of his membership or non-membership in the Local Union, sister
locals of the International or any other labor organization." (Ex.
4 at 3-4, Ex. 77) Moreover, Trustee Jacobson and the dispatchers
were not aware of any instance where a trade show contractor
rejected workers dispatched from Local 631 because they were
members of another union. (Ex. 92 at 56; Ex. 8 at-18; Ex. 9 at-56)
128 As noted above, the other IBT Locals were usually unable
to provide workers. (Ex. 5 at 14; Ex. 7 at 94)
129 Dodds claimed that Wilkerson. not
Passo, told her not to
call the Carpenters Union when the Local 631 dispatch office was
95
Wilkerson instructed Dodds to continue to call the Carpenters Union
when the dispatch office was exhausted. (Ex. 26 at 78) According
to Wilkerson, if the dispatch office did not call the Carpenters
after the Local 631 dispatch office was exhausted, it would be more
likely that United employees would be used. (Ex. 26 at 79) Passo
never explained how it would be beneficial to allow the trade show
contractors to use United's non-union low paid workers rather than
other union members who were dispatched from Local 631 at, at
least, red book contract rates.
In addition, in setting another hurdle to the Local
meeting the call, Passo strongly opposed business agent Whitfield
referring Local 631 members to work under any circumstances, even
when the dispatch office was closed. (Ex. 20 at 154-55; Ex. 82 at
44-45)130 Assistant Trustee Frates, who understood it was necessary
when the dispatch office was closed for the business agent to
dispatch workers, spoke to Passo about this procedure. (Ex. 82 at
_______________
exhausted. (Ex. 9 at 15)
130 As discussed above, in some circumstances on large shows,
in order for the Local 631 dispatch office to meet the call,
members had to be "rolled over" from one show to another rapidly.
(Ex. 6 at 236-37; Ex. 2 at 192-93;Ex. 82 at- 44) This "roll over"
period sometimes occurred when the dispatch office was closed. (Ex.
82 at 44; Ex. 25 at 31-32; Ex. 6 at 236-37) In some of those
instances, business agent Whitfield directly dispatched Local 631
members to work rather than allowing the contractors to hire from
any source because the local could not meet-the call for workers.
(Ex. 6 at 72-73; Ex. 82 at 44)
96
44)131 Passo was aware that the roll over sometimes happened in the
middle of the night. Yet, he still opposed the business agents
dispatching anyone to work. (Ex. 82 at 45-46) Only Simon and GES,
who could use United's cheaper labor, benefitted from Passo's
position.
L. Passo and Hogan Ensured Simon was Seen Meeting with High-
Ranking Teamster Officials
Hogan, although having no role in Local 631, and Passo
repeatedly introduced Simon to high-ranking IBT officials. These
meetings were in public places and appeared to have been designed
to allow Passo and Simon to falsely claim that high-ranking
officials supported Passo's proposed arrangement with Simon.
1. Hogan Introduced Simon to Santangelo
In May 2000, Passo, Hogan, Simon and IBT Vice President
and Joint Council 42 President Santangelo met for dinner at the Rio
___________
131 Frates described his conversation with Passo as follows:
it would probably have to do with
rolling over people. That would be when they
finish one shift, if somebody need somebody
else, they'd roll over to the next, and that's
when normally the agent would be down there in
the middle of the night to do that to keep
people working and get them as many hours as
we could.
And there was discussion that that ought to be
controlled by dispatch only, and in my
opinion, dispatch only couldn't do that
because they didn't work 24 hours a day like
the agents did.
(Ex. 82 at 44)
97
Hotel in Las Vegas. (Ex. 32 at 24-25)132 Hogan introduced
Santangelo to Simon at this dinner. (Ex. 32 at 25) Santangelo
testified as follows:
Q: And what was being discussed?
A: He had -- there was a guy who wanted to come
to the Convention Center who had employees who
were like a manpower thing sort of .133
Q: Is this Mr. Simon?
A: Yes.
(Ex. 32 at 24)
2. Passo Introduced Simon to Scalf at the Indigo
Lounge in Las Vegas
Passo also introduced Simon to Hoffa's Executive
Assistant Scalf at the Indigo Lounge at Bally's Hotel. (Ex. 20 at
172-73; Ex. 12 at 95-96) Santangelo was also present. (Ex. 32 at
26-27) It appears that this meeting took place between July 9 and
________________
132 Santangelo met Simon twice in Las Vegas after Local 631
was placed in Trusteeship. (Ex. 32 at 24, 30) Santangelo testified
that the first meeting was at the Rio Hotel with Passo and Hogan
and the second meeting was in a lounge at Bally's Hotel where Passo
and Scalf were also present. (Ex. 32 at 24-30) Both meetings were
before the IBT's Unity Conference held between September 15 and
September 24, 2000. (Ex. 32 at 24-30) After the Trusteeship was
imposed and prior to the Unity Conference, Santangelo, Passo and
Hogan were all in Las Vegas on the following dates: May 4 through
7, 2000 and May 19 and 20, 2000. (Exs. 122-23, 208, 267, 269-70)
The IBT's Women's Conference was in Las Vegas on May 19 and 20,
2000. (Ex. 208)
133 Manpower is a temporary agency. This was similar to
Michael Hogan 's son's description of Simon's operation in Chicago
which used the labor service ReadyMen. (Ex. 173 at 23)
98
July 12, 2000.134
Passo was to meet Simon at the Indigo Lounge to discuss
their proposed arrangement between Local 631 and United. (Ex. 20 at
172-73)135 Passo requested Scalf to attend the meeting which
invitation Scalf accepted. (Ex. 20 at 173)136 Scalf was introduced
to Simon in the lounge. (Ex. 12 at 95-99) During this meeting,
Passo and Simon discussed the terms of the arrangement for United.
(Ex. 20 at 174) Scalf claimed not to recall any conversation
regarding the agreement with United other than he might have told
Simon to agree to a "good contract." (Ex. 12 at 95-99)136 At least
four other union officials were in the Indigo Lounge at this
time. 137 Scalf was either involved in the Passo-Simon discussions
_________________
134 Those were the dates, prior to the Unity Conference in
September 2000, that Passo, Scalf and Santangelo were in Las Vegas
after Local 631 was placed in Trusteeship. (Exs. 126-27; 209-10)
135 On July 7, 2000, there was a call from Local 631 to
Simon's cellular telephone that lasted approximately three minutes.
(Exs. 171, 211) Passo was in Las Vegas on July 7, 2000. (Exs. 126-
27)
136 When asked what he told Scalf, Passo testified as follows:
I said I'm going to look at this contract, I'm
going to look at this -- I said you can come
up with me and meet Rick Simon.
(Ex. 20 at 172-73)
137 Santangelo testified that he did not know what Passo and
Simon were discussing. (Ex. 32 at 26-27)
138 These individuals
included IBT representatives Ron Roche,
Robert Turner and Veronica Stephenson and Rick Middleton, President
of Local 848 in E1 Monte, California. (Ex. 12 at 47, 95)
99
or his presence was designed to create the appearance that Scalf
was entwined in the Passo-Simon relationship.139
3 Hogan Orchestrated a Meeting Among Passo,
Simon and General President Hoffa in Chicago
While Hoffa was in Chicago for AFL-CIO meetings in late
July or early August 2000, Hogan arranged for himself, Hoffa, Passo
and Simon to have lunch at Harry Cary's restaurant. (Ex. 20 at 165-
66; Ex. 15 at 66-71; Ex. 78 at 25-29)140 According to Passo, Hogan
picked up Hoffa and Passo at the Drake Hotel where Hoffa was
staying. (Ex. 20 at 165-67)141 Hoffa testified that Hogan had not
told him who they were going to meet. (Ex. 78 at 27)
Hogan testified that he "assumed" that the agreement
between Simon's company and Local 631 was discussed at this lunch
at Harry Cary's. (Ex. 15 at 69) Passo incredibly claimed that the
agreement between Simon's company and Local 631 was not discussed
at this lunch with the General President. (Ex. 20 at 168) Hoffa
alone acknowledged that the agreement was discussed. (Ex. 78 at 28)
Suspiciously, Passo never disclosed to Hoffa that he was involved
________________________
139 Scalf denied being involved. (Ex. 12 at 95-99)
140 According to Hogan, Simon is a part-owner of this
restaurant. (Ex. 15 at 67) No charge for this lunch appeared on
Hoffa's, Passo's or Hogan's expenses. (Exs. 126-29, 213, 274-78)
141 Hoffa stayed at the Drake Hotel in Chicago from July 24
through July 26, 2000 for an AFL-CIO Building Trades Convention and
one night on August 1, 2000 for AFL-CIO General Presidents'
meetings. (.Ex._213) On July 31,2000 at 5:52 a.m. a call was made
from Passo's cellular telephone to Simon' s cellular telephone. (Ex
49)
100
in negotiating an agreement between Local 631 and Simon's company
either before or after this meeting. (Ex. 78 at 29) 142 This non-
disclosure is even more suspicious since Passo was entrusted by
Hoffa with enormous power over Local 631's affairs.
Shortly after this lunch meeting with Simon and Hoffa,
Passo returned to Las Vegas. (Exs. 128-29) On August 3, 2000,
there were two calls from Passo's cellular telephone to Hogan's
cellular telephone. (Exs. 49, 76) These calls lasted a total of 38
minutes. (Exs. 49, 76) In addition, there were two other calls
from Hogan's cellular telephone to Passo's cellular telephone on
August 3, 2000. (Exs. 72, 76)
M. Hogan's Telephone Calls to Passo, Simon and GES's Parent
Company on August 15, 2000
Approximately two weeks after the Hoffa lunch with Simon
in Chicago, on August 15, 2000, Hogan made a series of telephone
calls to Simon, Passo and GES, the contractor wanting to use
___________________
142 Hoffa testified as follows:
Q: And did Mr. Passo tell you, gee, I've been
working with
Mr. Simon to get a contract?
A: He did not say that.
Q: He didn't tell you that after the lunch?
A: No.
(Ex. 78 at 29) Passo claimed that after this lunch meeting he
"could have" told Hoffa that he was trying to enter into an
agreement with Simon's company. (Ex. 20 at 189)
101
Simon's company in Las Vegas, concerning the proposed arrangement
between Local 631 and United. (Ex. 73) Both Hogan and Passo were
in Las Vegas on August 15, 2000. (Exs. 128-29, 275-77)
At 9:00 a.m. on August 15, 2000, Hogan called Passo. (Ex.
73) Hogan then called Simon at 9:08 a.m. and spoke for five
minutes. (Ex. 73) The next call from Hogan's cellular telephone
was at 9:25 a.m to the offices of GES's parent company, VIAD, in
Phoenix, Arizona. (Ex. 73)143 Hogan then called Passo and spoke for
8 minutes. (Ex. 73) Hogan acknowledged that he probably spoke to
Passo and Simon about the agreement with United during these calls
on August 15, 2000. (Ex. 15 at 107-111) In addition, Hogan
admitted that he spoke to Passo approximately a dozen times about
the proposed agreement with United. (Ex. 15 at 102-103)
N. August 30, 2000 Telephone Conversation between Frates and
Simon
On August 30, 2000, a day after Passo submitted a
memorandum containing significant concessions to Simon to the IBT
Legal Department, Frates had a telephone conversation with Simon.
(Ex. 82 at 56) 144 On August 30, 2000 at 9:30 a.m. Frates made a
_____________
143 Hogan claimed that the call to GES's parent company was
unrelated to his conversations with Passo and Simon. (Ex. 15 at
108, 110) According to Hogan's cellular telephone bill, this call
lasted one minute. (Ex. 73)
144 After an IRB request, Frates provided the business card
Simon gave him during the dinner meeting discussed above. This
card contained Simon's cellular telephone number on the reverse.
(Ex. 82 at 64-65; Ex. 214) Frates also provided an excerpt from
his cellular telephone bill which showed a call to Simon's cellular
102
call to Simon's cellular telephone which lasted more than fourteen
minutes. (Ex. 214) Frates described this call to Simon as follows:
. . . What had happened is Roberta had got a
call -- Roberta Whitfield got a call from Mr.
Simon. Roberta called me, indicated that she
did not want to have a discussion with Mr.
Simon, and I said I'm more than willing. I
returned Mr. Simon's phone call. We went back
and forth. He advised me that, you know, it's
a good deal; that, you know, certain people
like Mr. Passo endorsed the concept; and that
he thought it was a good deal.
I suggested to him that we're not interested.
If we couldn't get the full agreement, there
was nothing to talk about, and that if he was
going to drop names of people that supposedly
endorse the concept, then I basically told him
to go and get them to sign it, get them to
tell us to sign it, and that we're not going
to do it, and that we basically had nothing to
talk about, end of conversation.
(Ex. 82 at 56-57) Simon falsely told Frates that in addition to
Passo, Santangelo and Scalf also approved the agreement with
United. (Ex. 82 at 57, 63)145 Santangelo and Scalf both denied
approving the agreement with Simon's company. (Ex. 32 at 41-43; Ex.
12 at 98 )
Frates also testified that during this conversation he
told Simon about the most favored nations clause in the red book
____________________________
telephone on August 30, 2000. (Ex. 214) The excerpt from Frates's
cellular telephone bill also showed calls to Local 631 on the same
date both before and after his call to Simon's cellular phone. (Ex.
214)
145 This was consistent with what Passo told Wilkerson. (Ex.
26 at 88)
103
contract. (Ex. 82 at 70) Frates testified that Simon, " . . .
indicated he talked to the GES and it was not a problem, which I
strongly disagreed with. And, if I remember correctly, he
indicated GES would sign a waiver on the favored nations clause."
(Ex. 82 at 70)146 According to Frates, during his August 30, 2000
conversation with Simon, "I basically told him to go pound salt."
(Ex. 82 at 57) As detailed below, nine days later, Frates was
terminated as Assistant Trustee based upon Passo's recommendation.
After Frates' telephone conversation with Simon on August
30, 2000, there was a call from Passo's cellular telephone to
Hogan's cellular telephone. (Exs. 49, 73) In addition, on August
30, 2000, between 8:10 p.m and 11:57 p.m., there were eight calls
from Passo's cellular telephone to Local 631. (Ex. 49) Passo was
in Chicago on August 30, 2000. (Exs. 128-29)
O. Passo's Handwritten Substandard Agreement with United
On February 2, 2001, Passo was asked to provide notes of
his agreement with Simon. (Ex. 20 at 78, 105-106) During his
February 9, 2001 sworn examination, Passo testified that he had
searched for all notes concerning his agreement with Simon and he
______________
146 Simon also told Frates that Freeman, the other major trade
show contractor in Las Vegas, was "not receptive." (Ex. 82 at 71)
This was consistent with the objections to the United agreement
that Freeman representatives made to business agent Whitfield and
during a meeting with Hogan and Passo in Las Vegas. (Ex. 6 at 196-
97; Ex. 20 at 198-205)
104
did not have any notes. (Ex. 21 at 267)"- Thus, he could not be
questioned concerning any such documentation. The International
had been requested by letter of February 9, 2001 to provide all
documents, including draft agreements and draft proposals
concerning United. (Ex. 88) The IBT did not provide any records
responsive to this request.
By letter dated April 11, 2001, Passo's counsel provided
a letter dated August 29, 2000 from Passo to Nicole Pollard
("Pollard"), an attorney in the IBT's Legal Department, enclosing
six pages of handwritten notes of an agreement with United. (Ex.
________________
147 Passo testified as follows:
Q: Last week at your sworn examination, you testified that
you may have some notes that you kept in connection with
the conversations that you described with Mr. Simon.
Have you had a chance to look for those?
A: Yes, I did.
Q: Were you able to find any notes?
A: No, I couldn't find them.
Q: Have you looked everywhere you can look to find them?
A: Yes.
Q: And you don't have any?
A: No.
(Ex. 21 at 267)
105
84)149 Every official at the Local, the Trustee, Assistant Trustee,
the trade show and convention industry business agent and the
Local's attorney had rejected Passo's arrangement with United. Yet
Passo remarkably presented the same concession-laden package for
Simon to the IBT Legal Department as if an agreement between the
Local and the employer had been reached."' Moreover, Passo did not
disclose to Pollard that Local 631 officials and the Local's
attorney had rejected his arrangement with United. (Ex. 297 at 36-
39) Passo provided Pollard an agreement containing concessions
which Passo, with Hogan's encouragement, had solely agreed to.
Passo's handwritten memorialization of his arrangement
with United provided that all workers hired after August 1, 2000
would become "D" list workers, a new class of employees. (Ex. 84)150
The arrangement now provided:
__________________
148 Passo's August 29, 2000 letter to Pollard stated the
following:
[t)he language on the enclosed paperwork is
the amended language to the contract.
Everything else will remain the same as in the
GES Exposition contract. Look at the "Most
Favored Nations" clause in the contract on
page 32.
(Ex. 84)
149 Indeed, as noted, Simon would tell Frates the next day,
August 30, that he and Passo had agreed to a contract. (Ex. 82 at
57)
150 As noted above, the red book contract had A list workers
and Supplemental Workers, who were sometimes referred to as C Plus
and C workers. (Ex. 4)
106
"D" list workers shall perform all of the
duties of any 631 member except they are not
permitted to operate forklifts, drive any
vehicle over lOK lbs at any time, drive any
vech under lOK lbs without the written
authorization of the Employer or union be the
lead man on any I + D work.
(Ex. 84) The handwritten agreement provided that,
"D" list workers shall be put to work only
when all A + C list is exhausted. Workers who
start a shift shall be permitted to finish
that shift.
(Ex. 84) Passo's and Simon's arrangement also provided that,
"[t]he 'D' list workers shall supersede the placement of
Supplemental Workers." (Ex. 84)
Passo's handwritten memorialization also provided the
following:
"D" list workers for this agreement shall be
administered thru a United Temp Company. 151
The company shall recruit, hire, and dispatch
and deliver the "D" list workers to the
required site. In addition the Company shall
provide a two hour training period to all new
hires which shall consist of basic instruction
on crate moving, decorating, safety rules,
Teamster handbook.
(Ex. 84) In addition, Passo provided that the protection for the
Local in the subcontracting provision in the red book agreement be
eliminated. (Ex. 84)152
___________________-
151 The words "third party staffing" were included between the
words "a" and "company." (Ex. 84) "Third party
staffing" was
crossed out and replaced with "United Temp." (Ex. 84)
152. Passo's handwritten agreement provided that Section B on
page 12 of the red book agreement "does not apply." (Ex. 84)
107
According to this August 29, 2000 version of the Passo-
Simon arrangement, "D1" workers were those that had less than 250
hours in the industry. (Ex. 84) The "D2" workers were those that
worked between 250 and 1,000 hours in the industry. (Ex. 84)
Simon's Dl workers would be paid $10.00 per hour "for the first 250
hrs in the industry. During this training/trial period there shall
be no payments to H + W or Pension Funds." (Ex. 84) In contrast to
Passo's concessions to Simon, under the red book agreement
Supplemental Workers who worked less than 150 hours in the industry
were paid $12.49 per hour with benefit fund contributions of $7.90
per hour paid from the first hour worked. (Ex. 4 at 11, 26, 27)
Under Local 631's contract, effective June 1, 2000, Supplemental
Workers who worked more than 150 hours were paid $13.69 per hour
with benefit fund contributions of $7.90 per hour. (Ex. 4 at 11,
26-27)
Given that Simon, and not the Local 631 dispatch office,
would control which of his employees worked, that the handwritten
agreement contained no provisions for their selection, and the
nature of "United Temps"' workforce, Simon could ensure that none
of his employees worked more than 250 hours in the industry,
thereby avoiding making any benefit fund contributions for his
employees. In addition, even if Simon's company eventually did
Article II, Section B(5) of the red book agreement is the
subcontracting provision described above. (Ex. 4 at 12)
108
make benefit fund contributions on behalf of the employees that he
allowed to work more than 250 hours, by not paying benefit
contributions for those 250 hours, Simon would have saved, at a
minimum, more than $1,900 per. employee. (Ex. 207)
In addition, pursuant to the Passo-Simon August
arrangement, the "D2" workers would be paid $11.00 per hour with
benefit fund contributions. (Ex. 84) This was an hourly wage $2.69
less than the red book agreement required Supplemental Workers with
more than 150 hours in the industry to be paid. (Ex. 4) Moreover,
as discussed above, since Simon controlled the dispatch procedures,
he could ensure that no employee worked more than 250 hours thereby
preventing them from becoming "D2" list workers and getting the
wage increase.
Furthermore, under the red book agreement, Local 631 had
dispatch records of all individuals referred to work and the Local
631 Security Fund had records of benefit fund contributions for
every hour worked. (Ex. 4 at 3, 26-27; Ex. 92 at 47) In contrast,
under Passo's agreement, Simon would control the dispatch and
benefit fund contributions would not be immediately required. (Ex.
84) Accordingly, Passo's agreement undercut the Local's ability to
ensure that the United employees received the pay increase and
_______________________-
153 Effective June 1, 2000, the hourly benefit fund
contributions under the red book agreement were $3.75 per hour for
health and welfare and $4.15 for pension benefits. This totalled
$7.90 per hour. (Ex. 4 at 26-27) For 250 hours, this would total
$1,975 per employee.
109
United made the benefit fund contributions the agreement required.
Under the August arrangement, for all the "D1" and "D2"
workers, which included workers with up to 1,000 hours in the
industry, Passo eliminated time and one half pay for work performed
between the hours of 10:00 p. m. and 6:00 a. m.. (Ex. 84)159 This was
particularly significant since the United employees usually
performed Teamster bargaining unit work at night. (Ex. 6 at 236-37;
Ex. 90 at 36) Under the red book agreement, for work performed
during the hours of 10:00 p.m. and 6:00 a.m., a Supplemental Worker
__________________
154 Pursuant to Article III, Section E of the red book
agreement:
The work week will be Monday through Sunday.
All employees shall be paid one and one half
times the base rate for all work performed
between the hours of 10:00 pm. and 6:00 a.m.
except employees covered under Section B
above . . . .
(Ex. 4 at 13) Article III, Section B of the red book agreement
provided the following:
"Supplemental Workers" having less than 150
hours worked in the industry will only receive
time and one half after eight (8) hours worked
in a day or forty (40) hours worked in a week
including the hours worked between 10:00 p.m.
and 6:00 a.m.. . . .
(Ex. 4 at 13)
Passo's substandard agreement contained the following
provision:
Section B shall govern for all O/T for class
D-1 and D-2.
(Ex. 84)
110
with less than 150 hours in the industry would be paid $12.49 per
hour unless he had worked more than eight hours in a day or 40
hours in a week at which point he would be paid time and one half.
(Ex. 4 at 11, 13) Under the red book agreement, a Supplemental
Worker with more than 150 hours would be paid time and one half, or
$20.53 per hour, for work performed between 10:00 p.m. and 6:00
a.m.. (Ex. 4 at 11, 13) Accordingly, Passo's concession allowed
United to pay its employees who worked more than 150 hours in the
industry at least $9.53 per hour less than the red book agreement
provided for work performed between the hours of 10:00 p.m. and
6:00 a.m... (Ex. 207)155
In his arrangement with United, Passo also callously
eliminated protections for employees injured on the job. (Ex. 84)
Article XI, Section A(4) of the red book agreement provides,
[t]he Employer will continue paying monthly
contributions to the health and welfare fund
for one (1) year for regular seniority "A"
List employees and for six (6) months for
"Supplemental Worker" employees not working
due to an on-the-job injury. (Provided the
"Supplemental Worker" employee has been in the
employ of the employer for thirty (30) work
days.)
(Ex. 4 at 26) Passo and Simon ensured that this section would "not
apply to 'D' list workers," i.e., United's employees. (Ex. 84)
____________________
155 This was the difference between the $20.53 time and one
half hourly wage the red book contract required for Supplemental
Workers with 150 hours in the industry and the $11.00 per hour wage
rate Passo's agreement required D2 list workers to be paid after
250 hours in the industry.
111
As detailed below, the handwritten memorialization of the
concessions to Simon that Passo provided the IBT was far more
favorable to Simon than Passo pretended the arrangement was during
his sworn examination. For example, Passo in his testimony claimed
that Simon would begin making benefit fund contributions on behalf
of his employees after they worked 50 hours in the industry. (Ex.
20 at 92-93) In contrast, Passo's belatedly provided handwritten
agreement provided that Simon would only begin to make benefit fund
contributions after his employees worked 250 hours, five times more
than Passo claimed in his sworn examination. (Ex. 84)156 As
discussed above, the red book contract required an employer to make
benefit fund contributions from the first hour worked. (Ex. 4 at
26-27; Ex. 2 at 187)
P. GES Used United Employees to Perform Teamster Work on the
MAGIC Show
The MAGIC show, one of the large trade shows, was held in
Las Vegas between approximately August 24 and September 3, 2000.
(Ex. 215) During the MAGIC show, GES, the general contractor, used
United employees to perform Teamster work. (Ex. 82 at 74-80; Ex. 26
at 60-63; Ex. 6 at 89; Ex. 156 at 27, 47, 93; Ex. 149 at 59-62; Ex.
___________________
156 Passo testified that he made this concession "because Rick
Simon told me that would help him survive if he could get that."
(Ex. 20 at 81) Passo did no verification of Simon's economics to
see if there was any truth to it. His ready acceptance of the
employer's claim was yet another indication he was acting on behalf
of Simon and not IBT members or United employees.
112
25 at 93; Ex. 203 at 21; Ex. 300 at 25-26)157' This was done despite
there being workers available to be dispatched through Local 631 to
perform this work. (Ex. 26 at 63; Ex. 82 at 76; Ex. 6 at 72-73; Ex.
149 at 59-60)
Whitfield requested Wilkerson and Frates to come to the
Las Vegas Convention Center during the MAGIC show because she
anticipated problems with GES. (Ex. 6 at 73) Whitfield had "turned
around" members who worked on the show immediately prior to the
MAGIC show in order that they would be available to work on the
MAGIC show. (Ex. 6 at 73) Whitfield had also arranged to have
members of the Stagehands union dispatched from Local 631 after the
Local 631 dispatch list was exhausted. (Ex. 6 at 89) According to
Whitfield, one of GES' labor calls requested 120 people and Local
631 supplied all but five workers. (Ex. 6 at 72)
In apparent violation of the contract, GES brought in
United employees to do that work and refused to use the people from
the Local 631 dispatch office. (Ex. 6 at 73) According to
Whitfield,
But we did meet the number and so
that's what I told them originally when I left
was, "We will meet your call."
And they said, "Well, you know, we're going to
do this."
I said, "No. You don't have the right to do
________________
157 The August 30, 2000 telephone conversation between Frates
and Simon discussed above took place during the MAGIC show.
113
it. If we don't have the numbers, that's one
thing. But we do, so you can't do that."
Well, that's why I, like I said, took Marty
and Jim with me. And they saw it, and they
couldn't believe it. But we met the call,
They knew we met the call because they had
checked with Jennifer even including and above
myself.
And Jennifer and I had agreed, you know, we
met the numbers they gave us on paper. But
they -- that's -- see, this is what the
company does because they figure, "Okay. This
is a cheaper labor."
(Ex. 6 at 78-79)158
Local 631 member Hernandez, a Spanish speaker, approached
some United employees who were doing Teamster work on the MAGIC
show. (Ex. 83 at 20) Hernandez explained:
____________________
158 Local 631 dispatcher Dodds testified that the Local was
able to fill the call when the MAGIC show came in. However, she
claimed that the Local was unable to meet the call on the teardown
of the MAGIC show. (Ex. 9 at 37) During her March 2001 sworn
examination, in testimony while questioned by the Trustee's
attorney, Dodds testified that she believed that business agent
Whitfield tried to force the trade show contractors to use members
of other unions after the Local 631 dispatch office was exhausted
when they were not required to do so under Dodds' understanding of
the red book agreement. (Ex. 7 at 95-96) Dodds, who was not a
business agent, testified that when Local 631 ran out of people to
dispatch, the trade show contractors should be told that the
dispatch office was exhausted so they could hire from any source.
(Ex. 7 at 95-99) Dodds did not consider it appropriate for
Whitfield to try to arrange for the trade show contractors to use
union labor, rather than hiring non-union labor from the street.
(Ex. 7 at 95-100) Passo had communicated his similar views to
Dodds. (Ex. 20 at 146) In contrast, the Local's business agents
and members knew it was preferable for union workers to be
dispatched from the Local rather than non-union workers being hired
any source. (Ex. 6 at 68; Ex. 2 at 193-206; Ex. 90 at 30-33; Ex.
155 at 9-11)
114
I approached a lot of them [the United
employees]. I let them know, you know, "Look,
our union is coming down here. We're getting
to the bottom of this. Our representatives
will be here if you guys want to approach
them, talk to them. I'll go with you. We'll
get your names. We'll get you signed on," and
what have you. "We'll take the necessary
steps to make sure that you guys are out here
legally, you know, and you have a right to
work and your rights are being met."
At that point, I'd probably say about three
vans full of United workers left the show
site. They just carted them off.
I don't know why. I don't know if they are
illegal. I don't know, you know, if they
didn't want to be members or -- I didn't know
the exact circumstances. They didn't really
stop to tell me, so to speak.
But three cars full left show site at that
point.
(Ex. 83 at 20)159 Business agent Whitfield also testified that the
United employees were brought to the convention site in a United
van. (Ex. 6 at 82) The United supervisors would not allow
Whitfield or the Local 631 steward to speak to the United
employees. (Ex. 6 at 87)
Wilkerson and Frates also observed United employees
performing Teamster work. (Ex. 82 at 74-75, 79; Ex. 26 at 60-63)
_________________
159 On January 17, 2001, during the Super Show for which
Michael Hogan's company Show Biz USA was the general contractor,
two men went to Hernandez's home and told her that she should not
talk to the IRB and she was not making any friends. (Ex. 216) As
discussed below, on the Super Show, Show Biz attempted to use
United employees to perform Teamster work. (Ex. 154; Ex. 155 at 25-
27)
115
According to Wilkerson, " . . . we speculated that Dane Passo and
Simons or whoever they talked with at GES, they worked a deal."
(Ex. 26 at 63) Wilkerson recognized there were people available to
be dispatched from Local 631 to do the work the United employees
were performing. (Ex. 26 at 63) Wilkerson explained, "[t]hat's why
we ended up filing all those grievances. Two reasons, anybody who
was left on the list; two, we wanted the insurance paid and the
pension paid and the wages paid properly." (Ex. 26 at 63) Under
the subcontracting provision in the red book contract,
subcontracted workers performing bargaining unit work must be paid
the contract wages and benefits. (Ex. 4 at 12; Ex. 26 at 63)
Whitfield testified that she and Frates argued with GES
management representatives about the use of the United employees on
the MAGIC show. (Ex. 6 at 79-80) The GES representatives brazenly
informed them "we don't care" and stated that the Local should file
a grievance. (Ex. 6 at 79-80) Frates testified as follows:
we made it very clear that we did not
want Simon's group, the cleaning one, whatever
it is. They had vanned them down to the
convention center. It was interesting because
none of them spoke English, and there would be
one -- basically one interpreter to a van, and
they were flooded into the joint to do some
work.
Mr. Wilkerson and myself were absolutely
adamant that a grievance be filed; that those
people would be fully compensated, every penny
under the contract. We do not know what they
were being paid. We do not know if health and
welfare and pension were paid. And there is a
pending grievance -- there was a grievance
116
when I was there. It is my understanding that
grievance is still pending, and I was very
adamant about that. They went to work for
GES. I don't remember the specific date --
but I'm sure GES does -- that I sat in on a
meeting and told them that I didn't buy this
kind of crap, that they were paying them full
bore. They weren't getting a free ride. And
that quite frankly, I didn't appreciate their
conduct and how they were doing business, and
if they wanted a war, they were getting one.
(Ex. 82 at 74-75)
During the MAGIC show, there were two calls from Hogan's
cellular telephone to Passo's cellular telephone. (Ex. 73) These
calls were made on August 29, 2000 for fifteen minutes and
September 1, 20.00 for eleven minutes. (Ex. 73) In addition, during
the MAGIC show, there were two calls, on August 30 and September 1,
from Passo's cellular telephone to Hogan's cellular telephone. (Ex.
49)
Based upon their observations during the MAGIC show,
Trustee Wilkerson and Assistant Trustee Frates, both experienced
Local employees specifically entrusted by Hoffa with responsibility
in Local 631, directed the trade show business agents to file
grievances against GES for using employees of Simon's company to
perform bargaining unit work. (Ex. 26 at 63-69; Ex. 82 at 80)
Business agent Benboe received approximately thirty telephone calls
from members complaining about the United employees performing
117
Teamster work on the MAGIC show. (Ex. 149 at 61-62)160 In
connection with the MAGIC show, Benboe testified as follows:
. . . The phone rang off the hook, and I had
no idea how many of those people were going to
be coming in.
So I seen the ramifications of this thing, so
I told everybody that was calling that had
concern with this issue, that we were just
filing a blanket grievance. And that would --
because alot of these people were saying, you
know "I need to come down," or "I have to fill
out a grievance."
I said don't worry about it. I've already
gotten it taken care of. I just filed a
blanket grievance covering everybody.
(Ex. 149 at 61)
On September 5, 2000, Local 631 sent by facsimile a
grievance to GES regarding the United employees performing
bargaining unit work. (Ex. 151)161 Also on September 5, 2000,
Passo, who left Las Vegas on August 24th, returned to Las Vegas.
________________
160 Benboe testified:
on MAGIC, for instance, they were
sending our people home. They were telling
our people, "Okay. We'll need you back
tomorrow at such and such a time," and keeping
these people who were going around and
performing work that is found under our
jurisdiction: It generated a ton of
paperwork.
(Ex. 2 at 215)
161 It also appears that at least two additional grievances
were filed against GES for the use of the United employees on the
MAGIC show. (Ex. 151)
118
(Exs. 130-31)
Frates testified as follows regarding the grievance filed
against GES: "I did talk to Mr. Benboe about the grievance and told
him, in my opinion it was very, very important that that grievance
be processed and very vigorously, and he was in total agreement."
(Ex. 82 at 83) As detailed below, as of March 29, 2001, the MAGIC
show grievances against GES concerning the use of the United
employees were unresolved. (Ex. 2 at 157-59; 218)162
As soon as Wilkerson saw Passo after observing the United
employees working on the MAGIC show, he told Passo that the Local
was going to go after United. (Ex. 26 at 65) Wilkerson also told
Passo a grievance had been filed against GES. (Ex. 26 at 68) On
September 8, 2000, three days after Passo returned to Las Vegas and
eleven days after Passo had submitted his agreement with Simon to
the IBT Legal Department, based upon Passo's recommendation, Hoffa
_________
162 When asked about the issues involved in the grievances
filed against GES concerning the use of the United employees,
business agent Benboe testified as follows:
There are issues -- like you say, there are
jurisdictional issues, there's issues of them
performing work while we had people available,
there's issues of our people being laid off
and those people being retained, and there's
issues of these people are being -- are not
being paid contractual wages nor are they
receiving the benefits, which is all inclusive
in each individual grievance.
(Ex. 2 at 217)
119
terminated Frates as Assistant Trustee. (Ex. 84; Ex. 82 at 7)163
Q. Passo Caused Assistant Trustee Frates to be Terminated
While Trustee Wilkerson was out of town, on September 8,
2000, Hoffa terminated Frates as Assistant Trustee on Passo's
recommendation. (Ex. 26 at 111-112; 82 at 7)163 Hoffa admitted he
made the decision to remove Assistant Trustee Frates solely on
information Passo provided. (Ex. 78 at 61; Ex. 12 at 214) Neither
Scalf nor Hoffa investigated Passo's claims regarding Frates before
terminating Frates. (Ex. 12 at 149-150; Ex. 78 at 61) They did not
_________________
163 In addition to causing Frates to be terminated, Passo
attempted to reduce business agent Whitfield's hours to part-time.
(Ex. 6 at 36-40) Passo told Whitfield that she should work part-
time because of health issues. Passo proposed that Sherri Muckler,
a trade show steward, would take half of Whitfield's hours. (Ex. 6
at 37-39) Prior to the Local being placed in Trusteeship, on March
2, 2000, Muckler had attended a meal at IBT expense with Passo,
Hogan, Locascio and Locascio's brother. (Exs. 119-119) Whitfield
told Passo that she was able to work full-time. She then
complained to Trustee Wilkerson about Passo's proposal to cut her
hours and Wilkerson told her that it would not happen. (Ex. 6 at
37-41)
164 When asked about Frates' termination, Wilkerson testified
as follows:
A: It was again with Dane interfering with the business
agents. I think Marty pretty much told him again "You
stay the hell out of this. This is not your
responsibility."
Q: Was this a situation where he was telling the business
agents to do one thing and Marty had told them to do
something else?
A: Yes.
(Ex. 26 at 111-112)
120
even ask Frates, whom Hoffa had appointed, his response to Passo's
allegations. (Ex. 12 at 150) Although Scalf asserted that he
believed that he spoke to IBT Vice President and Joint Council 42
President Santangelo about Passo's allegations concerning Frates,
he could not recall what Santangelo said. (Ex. 12 at 151) In
contrast, Santangelo testified that he had no discussions with
anyone in the Hoffa administration before Frates was terminated.
(Ex. 32 at 35-36) Hoffa and Scalf failed to check with either the
more experienced Trustee or Assistant Trustee Hoffa had appointed
about Passo's claims but instead rubber-stamped Passo's
recommendation.
According to Hoffa and Scalf, Frates was removed as
Assistant Trustee because Passo asserted that Frates was putting
together a "political machine" at the Local, disrupting the Local,
failing to process grievances that Passo thought had merit and not
spending enough time at Local 631. (Ex. 78 at 61; Ex. 12 at 148)165
In addition, Hoffa testified that Frates was removed because he and
Passo conflicted on the approach to handling problems at the Las
Vegas Convention Center. (Ex. 78 at 61) That was true. Frates
opposed Simon's and Hogan's brother's company getting a substandard
________________
165 In a September 10, 2000 conversation with Whitfield and
trade show steward Michael Robertson, two days after Passo caused
Frates to be terminated, Passo stated that Frates "didn't respect
me as the General President and he found out that I'm the General
President's Assistant. You're not going to pull any power over me .
. . .." (Exs. 217-18; Ex. 156 at 64-65; Ex. 6 at 144; Exs. 130-31)
121
contract; Passo supported it. Indeed, without anyone with
authority at the Local agreeing to the concessions, Passo sent to
the IBT's Legal Department the arrangement that he, with Hogan's
support, was prepared to enter into with United with its litany of
concessions to Simon.
Passo had concealed from Hoffa and Scalf important
activity he was involved in at the Local. For example, even though
Passo participated in the meeting among Hoffa, Hogan and Simon in
Chicago in late July or early August, Passo had not disclosed to
Hoffa his involvement with Simon and Hogan to secure a concession-
laden arrangement for Simon with Local 631. (Ex. 78 at 29) Nor did
he disclose he was meeting with Hogan and trade show industry
employers such as Freeman without the Local 631 Trustee or any
Local employee being present. (Ex. 12 at 145-46; Ex. 20 at 207)
If Scalf had investigated the allegations Passo had made
about Frates, he might have detected or deterred Passo's
misconduct. (Ex. 12 at 147-151) For example, it appears that the
grievance Passo alleged Frates failed to process was a grievance
Local 631 member Dudash wanted filed. (Ex. 12 at 150)166 Passo had
close ties to Dudash. (Ex. 26 at 106)167 Passo caused the IBT to
__________________
166 Dudash alleged that he was late for work one day and when
he arrived there was no work for him. He also alleged that he was
laid off and missed work on that show. (Ex. 219)
167 For example, Passo tried to have Dudash, who had been
convicted of bank robbery in 1992, work as a steward in the trade
show industry. (Ex. 220 at 7-8; Ex. 82 at 113; Ex. 6 at 27-28)
122
pay for nineteen meals in Las Vegas where Dudash was present. (Exs.
122-25, 128-33, 142)168 Scalf did not speak to Trustee Wilkerson or
Frates, whom General President Hoffa had appointed to a UPS
National Grievance Panel, about Dudash's frivolous grievance. Nor
did he ask the Local to provide any records concerning Dudash's
grievance. (Ex. 12 at 150-51) Had Scalf made inquiries, he would
have learned that, in addition to Frates, both trade show business
agents and Trustee Wilkerson had investigated Dudash's grievance,
obtained records from his employer and determined it was without
merit. (Ex. 26 at 108-109; Ex. 149 at 21-23; Ex. 6 at 254-58; Ex.
82 at 25-29)169 Passo alone saw merit in his friend's frivolous
se In August 2000, Passo and Dudash were present at two
meals with General President Hoffa in Las Vegas. (Ex. 221) Former
Local 714 member Locascio was also present at these meals. (Ex.
221)
___________________
169 On September 5, 2000, after looking into the facts
surrounding Dudash's claim, Assistant Trustee Frates wrote a letter
to Dudash informing him that he agreed with business agents Benboe
and Whitfield that there was no contract violation and therefore
the Local would not pursue his grievance. (Ex. 222) Whitfield
testified that Passo yelled at her and insisted that she proceed
with Dudash's grievance which she had investigated and found to be
without merit. (Ex. 6 at 257-71) On September 6, 2000, Whitfield
asked Frates to speak to Passo about this grievance. (Ex. 6 at 257-
271; Ex. 82 at 26-28) That same day, Frates told Passo that
Dudash's grievance had no merit. (Ex. 82 at 26-28) Frates and
Passo had a heated argument about Dudash's grievance. (Ex. 82 at
26-29; Ex. 6 at 263-64; Ex. 20 at 237-240) Passo claimed that
Frates stated, "Fuck Jeff Dudash, he's no good. He is a piece of
shit member. We're not representing him. Tell him to get the fuck
out of the hall." (Ex. 220 at 60; Ex. 20 at 238) In December 2000,
Dudash, with the assistance of former Local 714 member Locascio,
filed internal union disciplinary charges against Frates, Benboe
and Whitfield for failure to file his grievance. (Ex. 223; Ex. 220
at 54-56) On January 25, 2001 Trustee Jacobson dismissed these
123
claim. Apparently the merits of Passo's claims were not of concern
to Hoffa and Scalf, only the source.
When asked whether there was anything wrong with
Assistant Trustee Frates putting a slate together, Scalf responded,
"Yes, there is, that wasn't his duties there." (Ex. 12 at 14 9) 170
Yet, in a much more obvious and documented way, Passo seems to have
been involved in such conduct, but Hoffa and Scalf turned a blind
eye to Passo's activities. It appears that Passo was assisting
former Local 714 member Locascio to run for office at Local 631 and
using IBT resources to do so. Locascio frequently told Passo that
he wanted to run for Local 631 office. (Ex. 21 at 322)171 As
detailed below, Passo, who had a close relationship with Locascio,
took repeated steps to promote Locascio.172 Passo had the IBT pay
charges. (Ex. 224)
_______________
170 Scalf did not believe that Frates intended to run for
office himself. (Ex. 12 at 149)
171 In 1996, Locascio worked on the Hoffa campaign in Las
Vegas. (Ex. 147 at 57-58) When asked whether there were Hoffa
campaign headquarters in Las Vegas during the 1996 election,
Locascio testified, "Not that I know of. I guess it was me." (Ex.
147 at 58) Locascio worked on Hoffa's reelection campaign in Las
Vegas. (Ex. 205 at 13; Ex. 147 at 59: Ex. 20 at 321) When asked
whether he had any position with Hoffa's current campaign, Locascio
responded, "No, I do not. I just kind of coordinate. I guess it's
an unofficial -- I have never been appointed to any position." (Ex.
147 at 59)
172 Since Local 631 was placed in Trusteeship, Passo and
Locascio spoke at least once a day. (Ex. 147 at 33) During the 159
days that Passo was in Las Vegas between February 29, 2000 and
November 19, 2000, Passo caused the IBT to pay for at least 87
meals where Locascio was present. (Exs. 118-135, 144) At twenty-
124
for 87 meals he had with Locascio. (Exs. 96-111, 144) Moreover,
Passo directed Trustee Wilkerson to send Locascio, who held no
union position, to the Teamster Leadership Academy ("TLA") in
Washington, DC at Local 631 expense; forced Wilkerson to hire
Locascio, a felon ineligible to vote in Nevada, for Get-Out-The-
Vote ("GOTV") work and tried to force Wilkerson to hire Locascio as
a business agent. (Ex. 26 at 98-99; Exs. 145, 226) In addition,
after the Trusteeship was imposed on Local 631, Locascio became the
head of the Local 631 "strike force" which had an office and a
telephone at the Local. (Ex. 147 at 101-03; Ex. 220 at 39)173 Passo
introduced Locascio to Hoffa. (Ex. 78 at 97; Ex. 221)
R. Passo's Interference in the Running of Local 631
According to Trustee Wilkerson, Passo interfered with his
ability to run Local 631. (Ex. 26 at 83-84, 86-87, 117) For
example, Passo instructed the Local's business agents that they
should do what he told them to do rather than listen to Trustee
Wilkerson or Assistant Trustee Frates. (Ex. 26 at 73; Ex. 6 at 35-
36, 268-69; Ex. 82 at 29)174 Passo also interfered with Frates' job
eight of these meals only Passo and Locascio were present. (Exs.
96-111, 144) In addition, between May 2000 and February 2001,
there were 97 calls from Passo's IBT cellular telephone to
Locascio's telephone. (Exs. 45-52, 55-60, 225, 282-84)
_____________
173 The "strike force" was reportedly a group of volunteers
who worked on picket lines. (Ex. 227 at 37)
174 According to Wilkerson, Passo's "favorite statement to the
business agents when I wasn't around, you know, 'Even though
Wilkerson is trustee, I'm the boss. I'm Hoffa's assistant,
125
of training and supervising the business agents, an Important role
since one of the reasons given for the Trusteeship was the
inexperience of the Local's business agents. (Ex. 26 at 86; Ex. 82
at 29; Ex. 14)175
Yet, in spite of this pronounced reason for the
Trusteeship, Passo also insisted that his cronies, who had never
been employed at any !BT entity other than one who had been a
Local's janitor, be hired at Local 631. (Ex. 26 at 24, 30, 27-29;
Ex. 228 at 5-9; Ex. 80 at 5-6; Ex. 147 at 5-7)176 When Wilkerson
refused to do as Passo demanded, Passo caused Scalf to order
Wilkerson to hire them. Scalf admitted all his instructions to
Wilkerson about the Local were based upon Passo's recommendations
which he accepted blindly. (Ex. 12 at 47) Despite the Trusteeship
____________________
personal assistant."' (Ex. 26 at 73)
175 According to Wilkerson, Passo "was just trying to usurp
the authorities that Marty had been given." (Ex. 26 at 86)
176 Wilkerson testified, "It's almost like they put together
a group out of Chicago that eventually infiltrate." (Ex. 26 at 115)
According to Wilkerson,
. . . there was a political agenda which it
was certainly a strong part of Passo.
He said to me one time, "You know, Hoffa
offered me this local union if I wanted it."
And I said, "Then why don't you take the damn
thing and let me go back to being retired."
That was the last I heard of that. I don't
know if that was a long range program or --
(Ex. 26 at 76)
126
pronouncement, only Passo's approval and not the candidate's
experience was of concern to Scalf.
For example, shortly after Wilkerson became Trustee,
Passo began to urge him to hire Frank Incandella ("Incandella"),
who had been a member of Local 705 in Chicago. (Ex. 26 at 25, 167;
Ex. 228 at 18) Incandella transferred to Local 631 in March 1998.
(Ex. 167) Incandella had known Passo for between fifteen and
twenty years. (Ex. 228 at 18)177 Between May 22, 2000 and January
29, 2001, Passo caused the IBT to pay for twenty meals where
Incandella was present. (Exs. 122-25, 130-35, 229) In addition,
the day before his IRB sworn examination, Incandella had dinner
with Passo and Locascio in Las Vegas. (Ex. 228 at 23-24)
Wilkerson refused to hire Incandella. (Ex. 26 at 24-25)
Scalf followed Passo's instructions and ordered Wilkerson to put
him on the payroll. After this direction from Scalf, Wilkerson
hired Incandella. (Ex. 26 at 24-25, 106, 115; Ex. 12 at 141) Scalf
did not know Incandella. (Ex. 12 at 140-41) He gave his
instructions to Wilkerson based solely upon Passo's recommendation.
(Ex. 12 at 141) Incandella was hired on September 2, 2000 as an
organizer. (Ex. 230; Ex. 228 at 9) After Wilkerson terminated
________________
177 Incandella testified that when he and Passo were both
Local 705 members they saw each other approximately once a month.
(Ex. 228 at 17-20) During his January 2001 sworn examination,
Incandella testified that since Passo left Las Vegas in
approximately mid November 2000, he spoke to Passo two or three
times a week. (Ex. 228 at 17-20, 26-27)
127
business agent Ike Moses at Scalf's direction, Incandella became a
business agent effective approximately October 28, 2000. (Ex. 230;
Ex. 228 at 9; Ex. 87)179 Between September 2, 2000 and February 25,
2001, there were fifteen calls from Passo's cellular telephone to
Incandella. (Exs. 49-53, 59-60, 231)1'9
Passo also insisted that Wilkerson hire Billy Cooper
("Cooper") as an organizer. (Ex. 26 at 27-28) Cooper was a member
of Local 916 in Springfield, Illinois and had worked on Hoffa's
campaign. (Ex. 80 at 5, 11) At Passo's direction, Cooper began to
work at Local 631 in July 2000. (Ex. 26 at 27-29; Ex. 232)180
Between August 4 and August 23, 2000, Passo caused the IBT to pay
for 12 meals where Cooper was present. (Exs. 100-01, 104-05, 233)
Wilkerson observed that Cooper "was more involved in Dane
Passo than he was in doing his job." (Ex. 26 at 28) When asked
what Cooper was doing with Passo, Wilkerson testified, "[jlust
wherever Dane went, he went. That's what I eventually found out."
(Ex. 26 at 28) Frates testified that he and Passo got into an
argument because Cooper was not doing the work he was assigned to
____________________________
As of January 2001, Incandella was the Local 631 business
agent for the freight industry and the movie industry. (Ex. 228 at
10)
179 Prior to Incandella being hired at Local 631, there were
four calls from Passo's cellular telephone to Incandella. (Exs. 47-
48, 57-58; 231)
180 Cooper, who knew no one at Local 631 other than Passo,
claimed that he did not know whether Passo had arranged for him to
be hired at the Local. (Ex. 80 at 10-11, 14-15)
128
do. (Ex. 82 at 33-36)181
Cooper left Local 631 employment on August 25, 2000. (Ex.
232; Ex. 26 at 29) At that time, Hogan hired Cooper to work at
Joint Council 25 in Chicago as an organizer. (Ex. 80 at 4; Ex. 234)
Passo also directed Wilkerson to hire Locascio, who had
been a member of Local 714 while Hogan was the principal officer,
_________________
181 Frates was asked about his conversation with Passo
concerning Cooper and testified follows:
A: That had to do with another ,incident when Mr. Cooper was
gone for the day and not doing what he was supposed to do
and me following up on it. And Mr. Passo and I got into
a pretty good yelling, screaming match.
Q: And did you give Mr. Cooper assignments that he did not
perform?
A: No, I checked on his assignment for the day and he wasn't
where he said he was going to be, and when I called him,
he said he'd be in the office shortly, and he never came
in the rest of the day.
And at the end of the day when he did come in with Mr.
Passo, that's when we had the discussion. And I might
say the discussion was initiated by Mr. Passo.
Q: And you said Mr. Passo initiated the conversation. What
did he say?
A: Wanted to know why I was screwing with Billy Cooper.
Q: And what was your response?
A: I wasn't screwing with Billy Cooper.
(Ex. 82 at 35-36) Hogan went to the Local 631 offices with Passo
and Cooper on the day Frates had the argument with Passo about
Cooper. (Ex. 82 at 65=66)
129
to work on the IBT's GOTV efforts on the U.S. Presidential
election. (Ex. 26 at 30-31)182 Wilkerson refused. (Ex. 26 at 30-33)
Instead, in I-ate September 2000, Wilkerson hired Wayne King
("King"), a former Local 631 business agent, for the GOTV work.
(Ex. 26 at 30-31; Ex. 237) Passo recommended to IBT DRIVE
officials that Locascio be hired for the GOTV work. (Ex. 21 at 325-
27) 183
After Wilkerson hired King, Scalf informed him that the
IBT administration wanted Locascio to do the GOTV work. (Ex. 26 at
32-33) " Wilkerson explained to Scalf that since Locascio was a
felon ineligible to vote in Nevada, he did not think Locascio was
appropriate for the GOTV position. (Ex. 26 at 33)184 Nevertheless,
_______________
182 In March 1994, Locascio transferred to Local 631. (Ex. 147
at 7; Ex. 146) According to Local 631 records, Locascio began to
work in the convention industry in February 1996. (Ex. 235)
According to Local 631 records, Locascio was placed on the "A"
convention dispatch list on or about November 13, 1998. (Ex. 235)
Pursuant to Article I, Section E of the red book contract, it does
not appear that Locascio, who had worked 311 hours in the
convention industry as of May 31, 1997 and 363.5 hours in the
convention industry as of November 13, 1998, was eligible to be on
the "A" list. (Ex. 4 at 3-4; Ex. 236) Indeed, it appears that,
pursuant to Article I, Section (E) (2) of the contract, Locascio
would not have been eligible to be placed on the "A" dispatch list
until sometime in 2000 when he worked 800 hours in the industry.
(Ex. 4 at 3; Ex. 236)
183 Passo claimed he could not recall whether he recommended
to Scalf that Locascio be hired for the GOTV work. (Ex. 21 at 326)
184 Scalf denied telling Wilkerson to hire Locascio. (Ex. 12
at 163-64)
185 In 1983, Locascio pled guilty to a felony burglary charge
in Chicago. (Ex. 147 at 14-15) In May 1987, Locascio pled guilty
130
as a result of Passo's intervention, Scalf ordered Wilkerson to
hire Locascio. (Ex. 26 at 33-35) Wilkerson Followed Scalf's
instructions. (Ex. 26 at 33-35)186 Locascio was on the Local's
payroll from October 14, 2000 through November 10, 2000. (Ex.
239)187
The Teamster Leadership Academy is the IBT's "leadership
training center" in Washington, D.C.. (Ex. 93 at 9) Although there
were Local 631 business agents who had not attended the TLA,
_______________
to the felony of theft from interstate shipment in Chicago. (Ex.
147 at 11-14; Ex. 238) He was sentenced to four months in a work
release program and five years probation. (Ex. 238) In 1990,
Locascio pled guilty to uttering a forged instrument in Las Vegas
after he tried to cash a forged check at a casino. (Ex. 147 at 15-
16)
186 When asked what Locascio did, Wilkerson responded, "What
was he supposed to do? He was supposed to work for the membership
to get out the vote, but I don't think he did anything." (Ex. 26 at
35) Wilkerson was asked the following questions and responded as
follows:
Q: And did anyone tell you that Mr. Locascio was or was not
doing what he was supposed to be doing?
A: No. I could see that. He was too busy doing other
things.
Q: What was he doing? What were the other things?
A: Just traveling with Dane Passo when he was here or with
Frank [Incandeila].
(Ex. 26 at 35-36) As discussed below, between March 1 and November
19, 2000, Passo caused the IBT to pay for 87 meals where Locascio
was present. (Exs. 118-135: Ex. 144)
187 In February 2001, DRIVE reimbursed Local 631 for the
salaries of King and Locascio. (Ex. 240)
131
including newly hired trade show business agents Whitfield and
Benboe, Passo insisted that Locascio, who held no union position,
be sent to the TLA in Washington, DC at Local expense. (Ex. 26 at
98-99; Ex. 1 at 151) As noted above, one of the reasons given as
the basis for the Trusteeship was the inexperience of the Local 631
business agents and their failure to adequately perform their
duties. (Ex. 14) Nevertheless, instead of arranging for business
agents who represented Local 631 members to attend the TLA, Passo
insisted that his crony Locascio, who was not employed at the
Local, attend the TLA. As usual, his request was quickly granted.
Passo informed Wilkerson that Hoffa wanted Locascio to
attend the TLA. Passo also insisted that Local 631 pay for
Locascio's airfare to attend. (Ex. 26 at 98-99) Wilkerson
explained:
I said, "Dane, it's not legal. I mean he
doesn't even work for the local. He's not an
employee of the local. He's not a business
agent. I can't be spending money sending him
places like that."
"Well, he's a shop steward."
I said, "Makes no difference." I said, "it
makes no difference. Actually shop stewards
are not allowed to attend those functions.
That school is for business agents and
officers." But eventually I relented and sent
him.
(Ex. 26 at 99) Passo contacted TLA Director Mary Hardiman
("Hardiman") to urge that Locascio be permitted to attend the TLA.
(Ex. 93 at 19-20;. Ex. 21 at 289) According to Passo, he asked
132
Hardiman to permit Locascio to attend the TLA because, "Vito asked
me if he could learn more about the union and he would like to go
to the academy." (Ex. 21 at 290) It was unquestioned that pleasing
Passo's friends was an adequate reason for the IBT to expend
resources.
Locascio attended the TLA for business agents and
officers in Washington, DC between October 2 and October 6, 2000.
(Ex. 145) As Passo directed, Local 631 paid for Locascio's airfare
to travel to Washington. (Ex. 295; Ex. 147 at 108; Ex. 26 at 98-99)
Of the 41 attendees, only Locascio and Local 986 steward Kevin
Harren were not employed at a Local. (Ex. 241)188 While in
Washington for the TLA, Locascio visited both Hoffa and Scalf in
their offices. (Ex. 147 at 61; Ex. 12 at 161-62; Ex. 78 at 55)
In the years 1999 and 2000, there were approximately 367
attendees at the TLA. (Ex. 243) Of these 367 individuals, all were
union officers, business agents or union employees with the
following five exceptions: two shop stewards, one volunteer
organizer, the Director of the Canadian Joint Grievance Panel and
Locascio, who was not even a steward according to Local 631
______________
188 Hardiman, who has worked in the IBT's Education Department
since 1982 and has been the head of the TLA since March 1999,
claimed that Yanko Fuentes, who was a Trustee of Local 805 and also
attended the TLA Locascio attended, was not a union officer. (Ex.
93 at 6, 23; Ex. 241) However, despite running the TLA, Hardiman
appeared to be ignorant of who was a Local officer. Contrary to
her claim, pursuant to Article XXII, Section 2(a) of the IBT
Constitution, Trustees are union officers. (Ex. 242)
133
dispatch records. (Exs. 235, 243-44) As TLA Director Hardiman
acknowledged, it was rare for a member with no union position to
attend the TLA. (Ex. 93 at 27-28)189 Passo also tried to force
Wilkerson to
hire Locascio as
a business agent. (Ex. 26 at 26-27) Wilkerson refused. (Ex. 26 at
26-31) After having Wilkerson removed, Passo tried to convince
Trustee Jacobson to hire Locascio. (Ex. 12 at 218-19)190 According
to Scalf, "Dane recommended that [Locascio] be hired in the local
and that Ed Jacobson is totally against that, he said absolutely
not." (Ex. 12 at 218-19) Scalf also testified that the IBT's
General Counsel, who had a background check done on Locascio, was
"vehemently against [Locascio] being hired there." (Ex. 12 at 219)
Jacobson testified that Locascio was not qualified to be a business
agent. (Ex. 1 at 153-54) Jacobson told Scalf that Locascio was
disruptive at the Local. (Ex. 12 at 223)191 Given all this, Scalf
_______________
189 According to Hardiman,
I said the occasion where a rank-and-file
member attends the Leadership Academy is more
of a minority situation probably. And I'm
speculating here, because they would lose
wages for a whole week.
(Ex. 93 at 28)
190 Passo also asked Jacobson to hire a trade show member for
a clerical position at the Local. (Ex. 1 at 152-53)
191 Scalf testified as follows regarding Locascio:
Q: And how does Mr. Locascio disrupt things?
134
did not rubber-stamp Passo's request as usual. As of March 2001,
Jacobson had not complied with Passo's request.
S. Santangelo Reported Problems with Simon and Passo
In addition to informing Scalf about Passo's substandard
agreement which Scalf never inquired into (Ex. 12 at 101-03),
Wilkerson also complained to IBT Vice President and Joint Council
42 President Santangelo about the substandard agreement Passo was
pressuring him to grant United. (Ex. 26 at 88-91) Both Wilkerson
and Santangelo thought it was inappropriate for the IBT to enter
Passo's proposed substandard agreement with a labor broker. (Ex. 26
at 88-91; Ex. 32 at 27, 30-31) Santangelo explained that if such
an arrangement was agreed to "I mean we would be all dead. This
would be crazy, you'd kill this whole industry." (Ex. 32 at 31)
On September 9, 2000, the day after Frates was
terminated, Santangelo, recognizing the agreement Passo was
A: I think he talks about people, he talks to people, he
down talks people, he just all around makes people mad.
He's just not a real people person.
Q: And you also indicated that your attorney had told you
that he was also not in favor of Mr. Locascio being
hired?
A: Yes.
Q: And why was that?.
A: Because of the background check and probably the other
reasons that I just gave you.
(Ex. 12 at 223)
135
advocating for Simon's company was suspicious, contacted Stier from
the IBT's RISE program and asked him to look into Simon. (Ex. 32 at
30-31; 44-45) Subsequently, as Santancelo noted, "Ed [Stier) told
me to stay away from him and to tell the Teamsters to stay away
from him." (Ex. 32 at 46)191
After this conversation, based upon conversations Scalf
had with IBT General Counsel Szymanski and General President Hoffa,
on September 12, 2000, Scalf called Passo and directed him to stop
dealing with Simon. (Ex. 12 at 114)193 Scalf did not review what
Passo had already done.
T. Experienced Teamster Officials Complained to General
President Hoffa and his Executive Assistant Scalf about
Passo's Activities at Local 631
At approximately the end of August, Wilkerson contacted
Scalf about Passo and told Scalf:
"I cannot operate this way. If you want me to
run the local union, then I have to be able to
run this union without the interference from
him. I can't have him interfering with the
business agents. Either he runs the local or
I run the local. It can't be both of us
here."
________________
192 Santangelo further testified that Stier stated, ". . . the
guy is not a nice guy. He's a funny guy. He's got all kinds of
baggage." (Ex. 32 at 45)
193 Passo testified that no IBT official told him not to deal
with Simon. (Ex. 20 at 227-229) Rather, he claimed that he heard
"rumors" that "Rick Simon is a bad guy, not a good person to deal
with." (Ex. 20 at 226)
136
(Ex. 26 at 86-87) Scalf told Wilkerson that Passo would leave Las
Vegas. (Ex. 26 at 85-87) Passo left Las Vegas on August 24 and
returned on September 5, 2000. (Exs. 128-31; Ex. 26 at 87-88)
This was not the first time experienced IBT officials
made complaints to Hoffa and Scalf about Passo's behavior. For
example, by letter dated February 4, 2000, then Joint Council 25
President Tony Judge ("Judge") and then Joint Council 25 Vice
President Frank Wsol ("Wsol") complained to Hoffa about Passo's
activities concerning the Overnite strike in the Chicago area. (Ex.
91)194 In this letter, Judge and Wsol reported to Hoffa that,
"Passo was instructing people to report to him and no one else."
(Ex. 91) 195
Wilkerson also called Scalf to complain about Passo on
other occasions including objecting to Passo's substandard
arrangement for Simon. (Ex. 26 at 86-88, 101-102) Scalf
acknowledged, "it seemed like every time that Jim called, it was
__________
194 Even though this letter to Hoffa was also copied to Scalf
and General Secretary-Treasurer Keegel, in response to an IRB
document request dated December 22, 2000 for all complaints
regarding Passo, this document was not provided. (Ex. 292; Ex. 12
at 185; Ex. 190) Scalf was shown a copy of this letter on March
2, 2001 during his sworn examination. (Ex. 12 at 185)
195 On March 9, 2000, approximately one month after this
letter was sent to Hoff a, Judge resigned as Joint Council President
and Hogan was appointed to take his place. (Ex. 245) Judge became
the Vice President of the Joint Council. (Ex. 15 at 13) On May 1,
2000, Hogan was appointed an IBT Representative. (Ex. 143)
According to Scalf, Hogan oversees the Overnite strike in the
Chicago area. (Ex. 12 at 59)
137
about Dane interfering." (Ex. 12 at 134) The end result was the
experienced Trustee was removed and Passo was continued in place as
monitor.
In September 2000, Trustee Wilkerson met twice with Hoffa
and Scalf in Las Vegas. One of these meetings was on or about
September 17, 2000. (Ex. 26 at 116)196 During this meeting,
Wilkerson informed Hoffa and Scalf that Passo continued to
interfere with his ability to run the Local. (Ex. 26 at 117)197
Although Wilkerson frequently complained about Passo and his
complaints were similar to complaints other IBT officials had made
concerning Passo, Scalf and Hoffa ignored Wilkerson's complaints
about Passo's behavior. (Ex. 12 at 135)
Trustee Wilkerson also met with Hoffa and Scalf at
_____________
196 This was the Sunday morning during the Unity Conference.
(Ex. 26 at 116) The IBT Unity Conference was held in Las Vegas
between September 15 and 22, 2000. (Ex. 246)
197 Wilkerson testified that he told Hoffa and Scalf the
following:
Well, it comes back to Dane, the interference
of Dane. And I said, "Hoffa, you couldn't run
that International if you had somebody trying
to usurp your authority in running that
International. Well, that's what you got
someone here doing."
"Well, he'll stay out of your way. He won't
step on your toes."
That's the end of the meeting, That's in
essence what they said, what he said.
(Ex. 26 at 117)
138
Baily's Hotel in September 2000. (Ex. 26 at 101-04)198 Wilkerson
waited at the hotel for Hoffa and Scalf to return from the Hoffa
Scholarship Fund golf tournament. (Ex. 26 at 103-104) When they
returned to the hotel, Wilkerson told them, "'We need to talk about
running this local union."' (Ex. 26 at 104) During this
discussion, Scalf told Wilkerson to terminate the following Local
employees: business agents Whitfield, Moses, D.C. Cardwell, John
Phillipenas and in-house attorney Dennis Quish. (Ex. 26 at 102)199
Scalf acknowledged he asked Wilkerson to terminate Moses, Quish and
Phillipenas; however, he claimed that he did not ask Wilkerson to
terminate Whitfield or Cardwell. (Ex. 12 at 137-140) Scalf's
recommendations were based upon Passo's instructions. (Ex. 12 at
138-41)200 Wilkerson agreed that Moses and Quish should be
________________
198 Wilkerson testified that this meeting may have been at
the time of the Hoffa Memorial Scholarship Fund golf tournament in
Las Vegas. (Ex. 26 at 103-04) This golf tournament was held from
September 21 to September 23, 2000. (Ex. 246)
199 Wilkerson was asked the following question and responded
as follows:
Q: And did Mr. Scalf tell you why he wanted these five
people terminated?
A: No. I am sure it had something to do with that Dane had
told him because most all of those guys were stand-up
guys. I am sure they had told Dane no -- they -- they
just told him to go to hell, that they worked for me.
(Ex. 26 at 103)
200 For example, Passo acknowledged that he told Scalf that
Moses should be terminated. (Ex. 20 at 230)
139
terminated and he let them go. (Ex. 26 at 101-05)
Also during the Unity Conference in Las Vegas, IBT Vice
President Santangelo met with Hoffa regarding Passo and the
problems he was causing at Local 631. (Ex. 32 at 33) Santangelo
invited other members of the IBT's General Executive Board from the
Western Region to attend this meeting. (Ex. 32 at 33) In addition
to Santangelo, the following International Officers attended: Randy
Cammack, an IBT Vice President-at-Large and the principal officer
of Local 63 in Los Angeles, CA; Ralph Taurone, an IBT Vice
President-at-Large and the principal officer of Local 222 in Salt
Lake City, UT; Chuck Mack, an IBT Vice President from the Western
Region and principal officer of Local 70 in Oakland, CA and Jon
Rabine, an IBT Vice President from the Western Region and principal
officer of Local 763 in Seattle, WA. (Ex. 32 at 33-35)
The International Officers told Hoffa and Scalf that
Trustee Wilkerson and Frates had had frequent arguments with Passo
about running the Local. (Ex. 32 at 33) During the Unity
Conference, Santangelo also told Scalf that the IBT should not
enter into the substandard agreement Passo was advocating. (Ex. 12
at 99-100)201 The five IBT officers from the Western Region
explained to Hoffa and Scalf that, "the best way to handle this is
if Dane would just leave for a while." (Ex. 32 at 34) Scalf
_______________
201 Scalf inexplicably despite complaints from Santangelo and
Wilkerson never investigated Passo's role in this.
140
testified that the IBT officials asked him to "keep [Passo] under
control." (Ex. 12 at 171-76) Hoffa, who had no investigation
undertaken into the complaints against Passo, dismissed this
meeting as "a gripe session" at which Santangelo complained that
Passo interfered with the administration of Local 631 and reported
that Passo had slandered IBT Vice President Cammack. (Ex. 78 at 62-
65) 202
In a cosmetic change without consequence, effective
October 1, 2000, Passo was removed as Special Assistant to the
General President. (Ex. 12 at 197-98; Ex. 11) However, his duties
remained exactly the same as before. (Ex. 12 at 217) Passo
continued to monitor Local 631. (Ex. 12 at 66)203 For example, on
March 19, 2001, Scalf and Passo met with current Local 631 Trustee
Jacobson in Las Vegas. (Ex. 1 at 134) Scalf and Passo also went to
the Local 631 offices together on March 19, 2001. (Ex. 1 at 140-41;
Ex. 7 at 102)204 Passo also kept his privileged position as
__________________
202 On September 10, 2000, Passo called IBT Vice President
Randy Cammack a "scumbag rat motherfucker" and "TDU rat fucking
scum." (Exs. 217-18; Ex. 156 at 56-57; Ex. 6 at 151; Exs. 131-32)
A tape of this conversation had been played for Santangelo, Cammack
and others. (Ex. 32 at 46-48; Ex. 156 at 68) Hoffa directed Passo
to apologize to Cammack. (Ex. 78 at 65)
203 Passo also continued to monitor Local politics. (Ex. 92 at
37-39) For example, in January 2001, he congratulated Trustee
Jacobson on "getting a white ballot for the delegates election . .
.." (Ex. 92 at 38)
204 This was the week before the IRB's second sworn
examinations of Trustee Jacobson and other Local employees. (EXs.
1-2, 7)
141
Sergeant-at-Arms at the General Executive Board meetings. (Ex. 20
at 53; Ex. 12 at 32, 198-99)
U. GES Continued to Use United Employees
After the MAGIC show, which concluded on or about
September 3, 2000, GES continued to use United employees, who
appear to have been paid substandard wages, to do Teamster
bargaining unit work. (Ex. 205 at 23; Ex. 203 at 25-26; Ex. 156 at
26-30, 44-46) For example, on or about November 3, 2000, GES used
United employees to perform bargaining unit work on the SEMA show
while there were Teamsters available to do that work. (Ex. 203 at
20-22; Ex. 25 at 92-93; Ex. 90 at 25-28) Local 631 steward Charles
Justice testified as follows regarding the SEMA show:
. . . These trucks come up long side of the
convention, and they was unloading the trucks.
We was doing it as Teamsters. It was getting
late, 12 hours and leaving. Then I seen these
United Exposition people coming up, and they
started doing our work.
I got a hold of Mike Robertson. Mike was the
No. 1 on the other section . . . . The No. 1
steward is over all stewards, which I was one
of them. I think he had several other ones.
He said he was going to handle this, and I
would not have to file another grievance on it
because he's going to make what they call a
mass grievance . . . .
(Ex. 90 at 25-26)
On November 4, 2000, steward Michael Robertson
("Robertson") filed a grievance against GES. (Ex. 152) According
142-
to business agent Benboe, during a March 21, 2001 meeting with GES
management, considerably after the time provided for in the
contract, it was decided that this grievance would go to a four man
panel. (Ex. 2 at 224)205 As of March 29, 2001, no date had been set
for the four man panel hearing. (Ex. 2 at 224)
In addition, on another show, the CES show, between
approximately January 6 and January 9, 2001, GES again used United
employees to perform Teamster work. (Ex. 205 at 23; Ex. 204 at 7-9;
Ex. 247 at 14-16; Ex. 203 at 26-25; Ex. 155 at 9-11) William
Christian ("W. Christian"), a Local 631 member and former business
agent for the trade show industry, observed United employees
performing Teamster work on the CES show. (Ex. 203 at 25-26)
According to W. Christian, one of the United employees on the CES
show told him that he was being paid $8.00 per hour. (Ex. 203 at
26)206 Christian explained that on that show, GES "sent our A
____________
205 Benboe testified that at this meeting, the GES
representatives stated that GES paid a flat fee to United for its
employees. Benboe testified that GES stated that the flat fee to
United cost more than it would have cost GES to hire people Local
63i dispatched. (Ex. 2 at 225-27) Benboe found this statement to
be incredible. (Ex. 2 at 227) According to Benboe, GES refused to
provide any records showing how much they paid United. (Ex. 2 at
226)
206 W. Christian testified,
. . . the cleaning company people, that they
made a comment to me that they were getting
paid a seven or eight dollar wage, and I
thought that was substandard. Concerning our
contract, we should pay them at least $12.49
plus health and welfare and pension.
143
listers home. They keep the people with a lesser monetary value as
far as having to pay them, and our people get screwed out of their
money." (Ex. 203 at 25-26) On the CES show, Local 631 steward
Ortega observed United employees whom he described as "about 200,
250 Hispanic people pushing in freight." (Ex. 204 at 8) Local 631
steward Shane Navara ("Navara") saw United employees performing
Teamster work on the CES show. (Ex. 205 at 15, 23) According to
Navara, he heard that the United employees "were owned by a person
from Chicago named Mike Hogan, I believe." (Ex. 205 at 15)
On January 9, 2001, steward Robertson filed a grievance
against GES for using 150 United employees to perform Teamster work
on the CES show. (Ex. 153) This grievance stated that there were
members of other unions available to be dispatched from Local 631.
(Ex. 153)207 As of March 29, 2001, no first step meeting had been
held concerning this grievance as required by the contract. (Ex. 2
at 228-29)
Although there was a pattern of GES using United
employees, who were not paid red book contract wages, to perform
Teamster bargaining unit work thus sabotaging the red book
contract, in a position harmful to the Local and favorable to
(Ex. 203 at 27)
________________
207 Local 631 steward Stephen Geiger testified that, "we
usually try to hire from unions around when we have a shortage."
(Ex. 155 at 9) According to Geiger, on the CES show there were
some members of .other unions working as Teamsters after being
dispatched from Local 631. (Ex. 155 at 10-11)
144
United, neither business agent Benboe nor Trustee Jacobson followed
the contract schedule for pursuing these grievances. They claimed
to consider the grievances concerning this issue to be no more
important than other smaller, individualized grievance against GES.
(Ex. 149 at 63-64; Ex. 1 at 161-62, 185) 208 In contrast to their
position, the Local 631 members knew the significance of GES using
United employees to perform Teamster work. (Ex. 149 at 60-64)
Trustee Jacobson justified his steady inaction by
asserting complete equality among grievances. He contended, " . .
. There is no high priority grievance in this Local. We have
termination cases that take precedence, we have suspension cases
that take precedence. We have lost pay. Just issues that need to
be handled." (Ex. 1 at 161-62)209 The explanation Jacobson
______________
208Zoa Benboe testified that grievances in which individual
members were named took priority over the grievances filed against
GES for using United employees. (Ex. 149 at 63-64)
209 During his March 2001 sworn examination, Jacobson was
asked the following question and provided the following response:
Q: Was that issue something that was of particular concern
to the union since it was a repeated situation where GES
was using non-union people at substandard wages to do
Teamster work?
A: It's an issue that we will continue to file with the
employer if they continue to use them and they don't get
paid in accordance with the contract. It's no different
than any other issue of improper pay or illegal holdover
of -- contract violations. They're all contract
violations. They're issues. They're economic issues.
(Ex. 1 at 185)
145
proffered appears to be meaningless on the facts. During the six
month period from August 1, 2000 through February 13, 2001, it
appears that Local 631 filed five grievances against GES concerning
a termination. (Exs. 248-251) It appears that Local 631 filed only
one grievance against GES concerning a suspension during this
period. (Exs. 212, 248-251) Indeed, Jacobson's inaction on the
grievances is in marked contrast to the speed in which he acted
when he believed Hogan family interests were involved, as discussed
below. It also was contrary to one of the explicit reasons Hoffa
pronounced for putting the Local in Trusteeship.
V. Passo Caused Trustee Wilkerson to be Terminated
Passo caused Trustee Wilkerson to be terminated on
November 6, 2000. (Ex. 12 at 151-52; Ex. 20 at 242-43; Ex. 78 at
57) Passo was the only person to recommend that Wilkerson be
terminated. (Ex. 12 at 152; Ex. 78 at 57-59) Scalf and Hoffa did
nothing to investigate Passo's allegations about Wilkerson. (Ex. 12
at 131-32; Ex. 78 at 57-61) As discussed above, prior to his
termination, Wilkerson had alerted Scalf about Passo's substandard
agreement with Simon's company. (Ex. 12 at 101-02)
According to Passo, he recommended that Wilkerson be
terminated because he "was getting political." (Ex. 20 at 242)
Passo told Scalf that Wilkerson should be terminated for the
following reasons: Wilkerson purchased vehicles for the Local
without prior IBT approval: Wilkerson ended the practice of
146
providing free soda at membership meetings and installed a soda
machine at the Local.210 Wilkerson planned to run for Local 631
office; Wilkerson planned to dedicate the Local union hall to a
former Local 631 officer without the IBT's permission; Wilkerson
planned to build a warehouse on an empty lot the Local owned and
Wilkerson generally did not stay in contact with the IBT and Hoffa.
(Ex. 12 at 84-85, 127, 130; Ex. 20 at 242-243)
Hoffa testified, "I had a feeling that Mr. Wilkerson was
trying to take over the Local for himself." (Ex. 78 at 57) Hoffa
also testified that Wilkerson "was an older man" and he thought
someone from the Local's rank and file should run for office. (Ex.
78 at 57)211 However, in other Locals that General President Hoffa
placed into Trusteeship, the IBT granted individuals hired during
the Trusteeship a waiver of the IBT Constitutional requirement that
___________________
210 According to Scalf,
. . . They always gave pop and soda and things
like that, they had cases in the building that
they always gave to the membership. He took
all that out of there which Dane didn't like,
he thought the members were entitled to that.
(Ex. 12 at 129-30) Apparently, the soda was given greater weight
by Scalf than Wilkerson's resistance to Passo pressing the
concession-laden agreement for Simon that Wilkerson had put Scalf
on notice of.
211 When asked if there was a problem with a Trustee running
for office, Scalf responded: "Well, if it was a Trustee inside that
Local that had belonged to the Local, I wouldn't think so. But you
bring someone in from outside, you'd like to see the membership of
the Local run the Local." (Ex. 12 at 128)
147
a candidate for Local office must be a member in good standing of
the Local for 24 consecutive months. (Ex. 12 at 128-29)212 For
example, in Local 815, which the IBT placed in Trusteeship in
December 1999, the IBT granted a dues waiver to George Miranda, who
had been the office manager at Joint Council 16 and a member of
Local 868. (Exs. 253, 255; Ex. 254 at 3-5) Miranda is now the
principal officer of Local 815. (Ex. 12 at 128-29; Ex. 255)
Although Scalf testified that Passo told him that Local
631's cars were in "fine shape," Scalf did not know how Passo knew
that. (Ex. 12 at 131-32) In contrast to Passo's opinion, business
agent Benboe testified that the Local "absolutely" needed new cars.
(Ex. 2 at 106-07) For example, Benboe testified that the car
business agent Whitfield drove broke down frequently. (Ex. 2 at
106-07)213 In fact, as explained below, the cars all had
considerable mileage on them. Scalf, however, did not seek to
learn the facts.
____________________
212 Article II, Section 4(h) of the IBT Constitution provides:
[t)he General Executive Board, upon good cause
shown, may waive any or all of the eligibility
requirements of this Section 4 in connection
with an election being conducted in a Trusteed
Local Union as a preliminary step to the
release of. the Local Union from Trusteeship
pursuant to the provisions of Article VI,
Section 5(i).
(Ex. 252)
213 One time her brakes did not work and another time the
power steering on the car she drove broke. (Ex. 2 at 106-07)
148
Wilkerson purchased eight automobiles for Local 631 as
follows: three In May 2000; one June, one In July, two ,in August
and one on September 1, 2000. (Ex. 150) The mileage and year for
four of the cars Wilkerson replaced in 2000 were as follows:
128,117 miles on a 1994 Ford Crown Victoria; 120,242 miles on a
1996 Ford F-150; 93,234 miles on a 1995 Chevrolet Pickup and 84,063
miles on a 1995 Chevrolet Silverado. (Ex. 150)214 Hoffa claimed
that one of the reasons Wilkerson was removed was that he purchased
the cars outright for a total of $194,000 instead of taking car
loans or leasing the cars. (Ex. 78 at 50) However, the Local had
sufficient assets to pay for the cars. (Ex. 256)215
Moreover, lending an even increased air that Passo's
explanations to Scalf were pretextual is that Wilkerson purchased
the cars months before the decision was made to terminate him. (Ex.
150)216 That this was a make-weight argument for his removal was
____________
214 The other four cars Wilkerson replaced were as follows: a
1995 Ford F-150, a 1993 Mercury Sable, a 1995 Ford Crown Victoria
and a 1994 Ford Crown Victoria. (Ex. 150)
215 According to Hoffa, "[i]ts not a good idea to pay cash out
of a local. He paid cash for these cars." (Ex. 78 at 50) During
the period in which Wilkerson purchased the cars, Local 631 had
between $685,008 and $774,861 in the bank. (Ex. 256)
216 Indeed, the General President himself adopted similar
reasoning in his March 21, 2001 decision dismissing the charges
Murphy filed against F. Christian. (Ex. 195) In his decision
adopting the hearing panel's recommendation, Hoffa stated,
[t)he panel found that although Brother
Christian was not without blame for his action
on June 9, 1999, neither Brother Murphy nor
149
underscored by Passo being at the Local during this time period,
capable of reporting any problem with the purchase of the vehicles
to Scalf immediately. Although Scalf claimed that Wilkerson was
told that he must obtain approval for purchasing the vehicles (Ex.
12 at 131), the IBT had no record of informing Wilkerson of such an
obligation. (Ex. 257) In addition, the IBT did not have a manual
for Trustees setting forth their duties. (Ex. 12 at 43) The
Local's omnipresent monitor Passo did nothing about it in a timely
fashion and, as was consistently the case, suffered no
consequences.
The only correspondence with Wilkerson the IBT provided
concerning his activities was a November 1, 2000 letter to
Wilkerson stating that he should not dedicate the union hall to a
former officer. (Ex. 258) Indeed, again adding to the air of
pretext for his removal, this letter was written after the decision
was made to terminate Wilkerson. The day before, on October 31,
2000, Scalf had already asked Jacobson if he would replace
Wilkerson. (Ex. 92 at 12) On October 31, 2000, Scalf contacted
Jacobson, the Secretary-Treasurer of Local 252 in Centralia, WA, an
Dispatcher Breymann intervened, as one would
expect if they felt these actions were truly
improper. The panel also found it highly
suspicious that Brother Murphy waited until
September to discharge Brother Christian for
an offense that occurred on June 9.
(Ex. 195)
150
IBT Representative in the Building Trades Division and the Director
of Building Trades for the Western Region, and asked him to report
to Las Vegas to replace Wilkerson as. Local 631 Trustee. (Ex. 92 at
12)
With respect to the claim that Wilkerson did not
communicate with the IBT, Scalf himself acknowledged that Wilkerson
contacted the IBT when he testified that, "it seemed like every
time that Jim called, it was about Dane interfering." (Ex. 12 at
134) Scalf also acknowledged that Wilkerson alerted him about
Passo's substandard agreement with Simon's company, which alarm
Scalf ignored. (Ex. 12 at 101-02) Given this and other facts, it
also appears that the claim regarding Wilkerson's reported lack of
communication may have been pretextual. Despite being Hoffa's
point man, Passo never disclosed to Hoffa his manoeuvering with
Simon and Hogan even after the lunch Hoffa had with the three of
them. (Ex. 78 at 29) Passo never told Scalf or Hoffa of his and
Hogan's meeting with a Local 631 employer, without the Trustee or
any Local employee. (Ex. 20 at 199, 204, 272-74) Indeed, according
to Hoffa's and Scalf's testimony, Passo concealed from them his
activities with Simon and Hogan to sabotage the red book agreement
covering over 1,400 members in the Las Vegas trade show and
convention industries. (Ex. 78 at 29, 32; Ex. 12 at 98, 100, 111-
151
112)217 Wilkerson alerted them. (Ex. 12 at 101) Passo remained
undisciplined and responsible for monitoring Local 631. This blind
allegiance to Passo, whose known misconduct dwarfed the allegations
against Wilkerson, undercuts Hoffa's and Scalf's claims that
Wilkerson's alleged lack of reporting caused his removal.
When Wilkerson was terminated, Scalf traveled to Las
Vegas to oversee his replacement. (Ex. 12 at 153) Passo returned
to Las Vegas the day before Wilkerson was terminated. (Exs. 134-
35)`218 While in Las Vegas, Scalf met with Passo, Jacobson,
Santangelo and the Local's attorneys. (Exs. 134-35) Passo's crony
Locascio, the former Local 714 member who had no Local position but
was interested in running for Local office and whose relatives were
Hogan's neighbors, also attended this meeting. (Ex. 12 at 153; Exs.
134-35; Ex. 21 at 322) Santangelo acknowledged that he did not
know why Locascio was present at this meeting. (Ex. 32 at 39-40)219
_______________
217 For example, in his conversations with Scalf, Passo
falsely claimed that his agreement with Simon called for hourly
wages between 75 cents and one dollar less than the red book
agreement. (Ex. 12 at 111-112) As detailed below, Passo's
arrangement was at least $2.49 per hour less than the red book
agreement for wages alone. Moreover, Passo did not tell Scalf
about the most favored nations clause in the red book contract or
that, under his agreement, benefit fund contributions would not
immediately be made on behalf of the United employees. (Ex. 12 at
100, 112)
218 Passo left Las Vegas on October 26, 2000 and returned on
November 5, 2000. (Exs. 132-35)
219 Former Local 714 member Locascio testified that he
complained to Scalf about the way Wilkerson ran the Local and told
Scalf that the Local needed a Trustee that would "bring the
152-
W. Trustee Jacobson's Conduct
On November 6, 2000, Jacobson became Trustee of Local
631. (Ex. 92 at 9; Ex. 148) Jacobson was not told why Wilkerson
had been removed as Trustee. (Ex. 92 at 14-15)220 Although Jacobson
was- appointed after Stier, from the IBT's RISE program, told
Santangelo, Hoffa and Scalf that Teamsters should not have contact
with Simon, when Jacobson became Trustee no one mentioned Simon or
the company United to him. (Ex. 92 at 17; Ex. 12 at 114-16, 126;
Ex. 78 at 75-76; Ex. 32 at 44-45) Scalf knew of Simon's
involvement with Local 631 because Passo introduced him to Simon at
the Indigo Lounge in Las Vegas while Passo was trying to arrange an
agreement with Local 631 on behalf of Simon's company. (Ex. 12 at
94-97)221 He had also instructed Passo not to stay involved with
Simon. (Ex. 12 at 114)
1. Jacobson's Ex Parte Meeting with Michael Hogan
in Connection with the Super Show
To provide a screen for Simon and Passo, Michael Hogan
reappeared as United's advocate. On or about December 18, 2000,
Jacobson met with Michael Hogan, the CEO of Show Biz USA, the
_________________
membership together." (Ex. 147 at 63-67)
220 Jacobson testified that he was told that Hoffa and
Wilkerson had "philosophical differences." (Ex. 92 at 14)
221 Scalf recalled he might have told Simon at the Indigo
Lounge to agree to a "good contract." (Ex. 12 at 96)
153
general contractor for the Super Show in Las Vegas. (Ex. 6 at 213;
Ex. 92 at 61; Ex. 149 at 37-38)222 Jacobson excluded the trade show
business agents from this meeting. (Ex. 92 at 60-61)223 Jacobson
explained he attended the meeting alone because that was what the
employer wanted. (Ex. 92 at 61, 65) Michael Hardy from Show Biz
USA asked him to go to the meeting by himself to "get to know the
employer and to also talk about the Super Show." (Ex. 92 at 61,
65)224 Only Jacobson came alone; Michael Hogan was present with
others on behalf of Show Biz. Later that same day, another meeting
was held at which Jacobson permitted the trade show business agents
to attend. (Ex. 92 at 62-64)
In January 2001, Michael Hogan sent Jacobson a letter
memorializing an arrangement Jacobson had agreed to at the private
meeting:
Per our conversation when we met in Las Vegas,
so that I have a clear understanding of what I
________________
222 Local 631 members worked on the Super Show from
approximately January 15 through January 26, 2001. (Ex. 259)
223 Jacobson testified that at the meeting Michael Hogan
stated that he was from a union family and wanted to work with the
Local. (Ex. 92 at 62-64) However, Michael Hogan's company, Show
Biz USA, was not a signatory to the red book agreement. (Ex. 92 at
64) Rather, Show Biz USA's workers on the Super Show were paid
through payroll companies Empioyco, Expo Group and Union Payroll,
which were signatories to the red book agreement. (Ex. 6 at 222;
Ex. 155 at 19; Ex. 147 at 42-43; Ex. 188; Ex. 92 at 60, 64)
224 Michael Hardy had been Local 714's chief steward at
McCormick Place in Chicago prior to Local 714 being placed in
Trusteeship. (Ex. 174 at 11-12) He was then employed at Show Biz
USA. (Ex. 260)
154
can and cannot do. I would like to confirm
with you that on the break of the show, if
Teamsters Local 631 cannot supply me with the
total amount of manpower needed for the
empties, I will be able to supplement the
workforce with a labor service, namely United
Temporaries . . . .
I would need to do this so that I could
fulfill my contractual agreement with The
Super Show. Kindly respond to this letter as
soon as possible so that I know that I am
covered. I will probably be needing somewhere
between two hundred (200) to three hundred
(300) men and women to complete the task. . .
(Ex. 154) Jacobson testified,
I remember receiving a fax from Show Biz USA
addressed to me indicating that they had -- if
they could not fill the call, that they could
hire whomever they wanted. I took that fax to
Roberta [Whitfield] and to Chuck [Benboe], and
I said, 'This is what we agreed to," and I
handed the fax to them.
(Ex. 92 at 72)
The use of United employees on the Super Show was not
discussed at the meeting Jacobson permitted the business agents to
attend. (Ex. 149 at 38-40; Ex. 6 at 213-229) This obviously was an
arrangement reached when Jacobson was closeted with Michael Hogan
apart from the other Local 631 representatives. Jacobson never
wrote back to Hogan disagreeing with Hogan's characterization of
his arrangement with Jacobson. (Ex. 92 at 75-76; Ex. 1 at 175-76)
He never communicated his disagreement with Michael Hogan's summary
in any way to Show Biz USA. He let Hogan's representation stand
unchallenged. Indeed, after first denying the existence of any
155
such letter in a letter to the IRB (Ex. 298), when confronted with
it during his sworn examination, Jacobson admitted that he had
reached this agreement with Michael Hogan. (Ex. 1 at 72) Jacobson
knew of Michael Hogan's family relationship with Hogan. (Ex. 92 at
63) This arrangement Jacobson reached with Michael Hogan provided
a strong explanation as to why Jacobson allowed the GES grievances
concerning United to go unpressed. As detailed below, GES
representatives went to Chicago to meet William Hogan about these
grievances.
Indeed, Jacobson was strikingly eager not to run afoul of
the Hogan family's influence at Local 631. For example, in
December 2000, Jacobson called Passo to ask him if former Local 631
steward Bob Hill had ties to the Hogan family as Hill had stated,
a point absolutely irrelevant to running the Local. (Ex. 92 at 36-
37)225 When asked why he wanted to know if Hill had ties to the
Hogan family, Jacobson testified,
Well, because I'm trying to find a way to
trust the membership because I am new in town
and a lot of them trusted Wilkerson. And
sometimes its difficult to establish a
relationship. You need to know if they're
honest with you or not. I was just trying to
do a verification.
(Ex. 92 at 36-37) The proffered explanation was
nonsensical
______________.
225 During the Super Show, Hill leased warehouse space to
Michael Hogan's company, Show Biz USA. (Ex. 291 at 9-10)
156
2. Selection of Stewards on the Super Show
After this ex parte meeting with Michael Hogan and the
other Show Biz representatives, contrary to Local precedent,
Jacobson became involved in selecting the stewards on the Super
Show, for which Michael Hogan's company, Show Biz USA, was the
general contractor. (Ex. 92 at 45-47, 49-50) Locascio also was
involved in attempting to remove the steward who had filed three
previous grievances against GES for using United workers.
Locascio, who was not employed at Local 631, obtained from the
administrator of the Teamsters Local 631 Security Fund the number
of hours steward Robertson had worked in the convention industry.
(Ex. 147 at 94-96)226Locascio then informed Jacobson that
Robertson had worked more hours than any other steward and other
members should be used as stewards on this show. (Ex. 147 at 94)
After this conversation with Locascio, Jacobson told
business agent Whitfield that she was showing favoritism toward
Robertson and other members should be used as stewards. (Ex. 92 at
47-48) Robertson was an obvious target to attack to communicate to
stewards and business agents that the use of United employees
should go unchallenged. As discussed above, Robertson had filed at
least three grievances against GES for the use of United employees
____
226 Passo had solicited Local 631 members to make complaints
about Robertson. (Ex. 82 at 113-14) Assistant Trustee Frates
testified that he believed that Passo wanted Robertson removed
because Passo could not control Robertson. (Ex. 82 at 113-14)
157
on the MAGIC show in August 2000, the SEMA show in November 2000
and the CES show in January 2001. (Exs. 151-53)
Jacobson requested Locascio to recommend stewards on the
Super Show. (Ex. 92 at 45-48)`2' Since Passo left Las Vegas on
November 19, 2000, he and Locascio remained in frequent contact.
(Ex. 147 at 29-30)228
Jacobson acknowledged that, for the first in any instance
since he became Trustee, he was involved in choosing the stewards
_______________
227 In order to obtain work for himself on the Super Show,
former Local 714 member Locascio called Hogan in Chicago. (Ex. 147
at 39-40) According to Hogan, Passo may have given him a message
about Locascio seeking work on the Super Show. (Ex. 15 at 129)
Hogan testified that he told Locascio to speak to his brother,
Michael Hogan. (Ex. 15 at 129) Locascio called Michael Hogan and
told him that he had been a member of Local 714. (Ex. 147 at 38-41)
Locascio also told Michael Hogan,
. . . that I was an A list conventioneer with
call by name rights. And if he needs any
truck drivers or he needs me to run a door or
he needs me to do anything for the company, I
would be more than happy to come to work for
him.
(Ex. 147 at 40)
228 Locascio testified, "I talk to Dane almost every day.
We're friends." (Ex. 147 at 29) Locascio testified that he usually
called Passo. (Ex. 147 at 147) However, between November 19, 2000
when Passo left Las Vegas and February 25, 2001, the last date for
which Passo's IBT telephone records were obtained, there were 22
calls from Passo's cellular telephone to Locascio's telephone.
(Exs. 51-52, 225, 282-84) In addition, when Locascio traveled to
Chicago over Thanksgiving, he met with Passo two or three times.
(Ex. 147 at 29) Passo also called Locascio on Christmas day and
spoke for thirty-four minutes. (Ex. 52, 225) Hogan's son, Robert,
the principal officer of Local 714, saw Locascio over the Christmas
holidays when Locascio visited his cousin who lived across the
street from William Hogan. (Ex. 86 at 30-31)
158
for the Super Show. (Ex. 92 at 46)229 According to Jacobson,
although he was "not happy" about the selection, he allowed
business agent Whitfield to appoint Robertson a steward. (Ex. 92 at
46-47) In addition to Robertson, the other stewards were Stephen
"Skip" Geiger ("Geiger"), who was appointed the number one
steward,
Navara and Doug Manning ("Manning"). (Ex. 92 at 47; Ex. 155 at 6)
In addition to selecting the stewards for the Super Show,
Jacobson, who had reached an arrangement with Michael Hogan
granting him permission to use United, instructed the stewards that
they should try not to file grievances concerning the show. (Ex.
205 at 32-33; Ex. 156 at 52-53; Ex. 247 at 7-8)230 From the
combination of his actions, it appears that Jacobson was attempting
to ensure the use of the United employees would go unchallenged.
Locascio arranged for Geiger, the number one steward on
the Super Show, to speak to Passo on the telephone. (Ex. 20 at 247-
50; Ex. 155 at 15-17; Ex. 147 at 88-90) According to Passo,
Locascio had told him that Geiger was going to be one of the
stewards on the Super Show. (Ex. 20 at 247-50) Passo testified
that while he and Locascio, who was in the Local 631 office, were
____________________
229 According to Jacobson, in addition to Locascio, he also
asked other members who they recommended to be steward. (Ex. 92 at
48-49)
230 Robertson testified that Jacobson repeatedly told the
stewards that "good stewards don't write paper. Good stewards
handle things . . .." (Ex. 156 52-53) Among stewards in the trade
show industry in Las Vegas to "write paper" refers to writing
grievances. (Ex. 6 at 46)
159
on the telephone, Geiger was also in the Local's offices. (Ex. 20
at 247-50) Passo testified that Geiger talked to him about the
Super Show. (Ex. 20 at 249-50)231
Jacobson told Robertson that "the Hogans" did not want
him to be a steward on the Super Show. (Ex. 156 at 70, 80-81, 83)
Robertson testified that shortly before the Super Show began, he
received a call on his home telephone which he described as
follows:
. . . And the voice was really deep, and the
voice said, "You should leave town. You
should remove yourself from this union. In
one week there will be some people coming
here." It is amazing that one week was that's
when the Super Show would start.
And he said he had some pretty mean friends.
And "if I were you, basically, I'd be careful.
I'd leave."
(Ex. 156 at 70)
Manning, another steward on the Super Show, also received
"a little funny phone call . . .." (Ex. 247 at 27) According to
Manning, he received a call immediately before the Super Show and
was told "to watch who I made my stand with." (Ex. 247 at 28)
Manning testified that, "I had a feeling it was somebody playing
around because I believe my only place to take a stand would be on
the show floor." (Ex. 247 at 28)
In addition, on or about January 17, 2001, during the
231 Geiger testified that he and Passo spoke about "how things
were going out here" and the weather. (Ex. 155 at 15-17)
160
Super Show, two men went to Local 631 member Hernandez's home and
told her that she should not speak to the IRB. (Ex. 216) As
discussed above, Hernandez had tried to persuade the United
employees to register with the Local 631 dispatch office. (Ex. 83
at 10)
Despite Jacobson's efforts, the Local 631 field employees
and stewards would not ignore Michael Hogan's attempt to use United
employees in violation of the red book agreement. On the Super
Show, Michael Hogan's company, Show Biz USA, tried to use United
employees to perform Teamster work. (Ex. 155 at 21; Ex. 90 at 35-
37; Ex. 156 at 41-42)232 According to stewards Geiger and
Robertson, vans with United employees appeared at the show site
during the Super Show. (Ex. 155 at 21; Ex. 156 at 41-42) According
to number one steward Geiger,
It was late in the afternoon. It was tear-
down, and a long van, we thought at first it
was a GES van, pulled, up, and a number of
people got out. Some were changing shirts.
We stopped them. Asked them who they were.
One of them gave themselves up as United Temp
Services. And we -- I don't know who made
contact with the company, but while I was out
there, I told them to get back on that van.
They are not working this show.
I recognized one of them. I had talked to him
before to try to get him to join the Teamsters
union.
____________
232 This was unsurprising given the letter Michael Hogan sent
to Jacobson expressing his intent to use United employees if Local
631 could not meet the call. (Ex. 154)
161-
They got back in the van. They left.
(Ex. 155 at 25-26) Business agent Whitfield also was involved in
preventing the United employees from performing Teamster work on
the Sdper Show. (Ex. 156 at 42)
3. Inaction on Grievances concerning the use of United
Employees
Local 631 members complained to Jacobson about the
inaction on the grievances against GES concerning United. (Ex. 205
at 24-25; Ex. 203 at 23; Ex. 156 at 49-51)233 During the IRB's
books and records examination at the Local between November 27 and
December 1, 2000, the Local was requested to provide, among other
things, copies of grievances filed against GES for the use of
United employees. (Ex. 294) During their January 2001 sworn
examinations, Trustee Jacobson and business agent Benboe were
questioned about the status of the grievances filed against GES for
using United employees. (Ex. 92 at 93-95; Ex. 2 at 212-228) In
addition, on February 13, 2001, Local 631 was asked to provide
records concerning grievances filed against GES. (Ex. 248)
Subsequently, on March 21, 2001, Jacobson, business
agents Benboe and Whitfield, two stewards from the GES warehouses
___________________
233 For example, during a membership meeting, Navara asked
Jacobson about the status of the grievances filed against GES for
using United employees. (Ex. 205 at 24-25) According to Navara,
Jacobson told him that such issues should be raised at a craft
meeting. (Ex. 205 at 25-26)
162
and International Representative Ron Schwab, whom the IBT had
appointed to assist Local 631 in the 2001 trade show contract
negotiations, met with GES management representatives. (Ex. 1 at
157-66; Ex. 2 at 229-230; Ex. 169 at 22-26; Ex. 261 at 18-19, 42)
Local 631 business agent Incandella, whom Wilkerson hired at
Passo's insistence and who had regular contact with Passo, also
attended the March 21, 2001 meeting with GES after he asked
Jacobson permission to attend as an "observer." (Ex. 1 at 157-58;
Ex. 2 at 230)234 Incandella had no role in the convention industry.
Prior to this meeting, in January 2001, the same week as
Jacobson's first sworn examination, GES consulted with Hogan in
Chicago without any Local 631 representative present about these
grievances. (Ex. 15 at 123-131) Hogan never alerted anyone at
Local 631 about these discussions. (Ex. 15 at 125-27; Ex. 1 at 186-
87) Two days before the March 21, 2001 meeting with GES in Las
Vegas, Passo and Scalf met with Jacobson at Local 631. (Ex. 1 at
133-34)
During the March 21, 2001 meeting with the GES
representatives, the outstanding grievances filed against GES for
using United employees were discussed. (Ex. 2 at 229-230; Ex. 1 at
_____________
234 During his January 2001 sworn examination, Incandella; who
has known Passo for more than fifteen years, testified that he
regularly spoke to Passo on the telephone. (Ex. 228 at 18) Between
September 2, 2000 and February 25, 2001 there were nineteen calls
from Passo's cellular telephone to Incandella. (Exs. 49-52, 60,
231, 282-84)
163
161-64) In addition, the upcoming contract negotiations for the
red book agreement were also discussed. (Ex. 2 at 229-230; Ex. 1 at
165-66) According to Benboe, it was agreed that a four man panel
would be scheduled for the grievances Local 631 filed in September
2000 concerning the use of the United employees on the MAGIC show.
(Ex. 2 at 219-220) According to Local records, however, it had
already been decided on December 7, 2000, more than three months
earlier, that these grievances would be heard at a four man panel.
(Ex. 262) Pursuant to the red book agreement, a four man panel was
to have been held within thirty days of the request to hold such a
hearing. (Ex. 4 at 20) 235 As of March 29, 2001, no date had been
set for the four man panel hearings. (Ex. 2 at 219-229)
X. William Hogan's Continued Involvement with Local 631
1. Hogan Met with a Representative of Trade Show
Contractor Freeman
As discussed above, Hogan had no IBT assignment in Las
Vegas. (Ex. 12 at 60) Nevertheless, sometime after Local 631 was
placed in Trusteeship, Hogan met with Barry Rappaport
("Rappaport"), who was the head of Freeman's operations in Las
Vegas. (Ex. 15 at 52; Ex. 20 at 201)236 According to Hogan,
Rappaport informed him that he had concerns about the Local 631
____________
235 Benboe attempted to excuse the Local's passive acceptance
of the delay by blaming it upon frequent personnel changes at GES
in Las Vegas. (Ex. 2 at 127, 129, 154, 219)
236 Hogan testified that he held this meeting at the request
of the Freeman representatives. (Ex. 15 at 52-53, 120)
164
Trusteeship. (Ex. 15 at 52-53) No Local 631 representative was
present. (Ex. 15 at 55)
Hogan asked Passo to attend a breakfast meeting in Las
Vegas with Rappaport. (Ex. 15 at 55-56) Passo, Hogan and Rappaport
discussed the proposed arrangement with Simon's company. (Ex. 20 at
203-04) Passo admitted to Rappaport that he had acceded to Simon's
request that the United employees be paid less than the red book
contract required. (Ex. 20 at 203-04) According to Passo,
Rappaport, an employer, then explained to Passo that the
concessions were a bad idea because the contract negotiations for
the red book agreement were coming up in 2001 and Passo's proposed
arrangement would undermine the Local's bargaining position. (Ex.
20 at 203-04; Ex. 21 at 273)
Business agent Whitfield testified that in approximately
May or June 2000, Freeman management representative Dick Jamison
informed her that Passo had spoken to him about using employees of
Simon's company. (Ex. 6 at 195-97) Passo never told the Trustee,
Assistant Trustee or convention industry business agents about
these discussions. Whitfield recalled:
When Dane went over to talk to him [Dick
Jamison] and ask him about Rick Simon's
company, Dick Jamison called me on the phone
and was adamantly pissed off.
He did not want those people in that industry,
does not want anything to do with them. And
he chewed my butt about it- because he wanted
to know what Dane was over there doing and why
he was asking.
165
He [Jamison] was a little annoyed with the
fact that Dane had went to his office without
either one of us, you know, and spoke to him
about having an extra labor pool like this to
pull from Rick Simon's company.
(Ex. 6 at 196-98)
Hogan was not concerned with any impact the arrangement
for Simon would have on IBT members or United employees. His
explanation was GES was Freeman's main competitor in Las Vegas and,
because GES had a relationship with Simon's company, Freeman did
not want to use Simon's employees. (Ex. 15 at 51-55) He did not
explain, whatever the motivation, why Freeman's frank admission
that Passo and Hogan were damaging the Local's bargaining position
was wrong.
Scalf, who supervised Passo and Hogan, asserted that
neither Hogan nor Passo ever told him that they had met with a
representative of Local 631 employer Freeman in Las Vegas. (Ex. 12
at 145-146)237 Nevertheless, despite never reporting to Hoffa
meetings with Local 631 employers without the Trustee present or
reporting such meetings to the Trustee, Passo remained as Hoffa's
and Scalf's monitor of Local 631.238
______________
237 Indeed, Scalf testified that he never heard of Freeman.
(Ex. 12 at 145-46)
238 Indeed, Passo and Scalf visited Local 631 together on
March 19, 2001. (Ex. 1 at 140-41)
166
2. GES Representatives Traveled to Chicago to
Meet with Hogan
' During his February 7, 2001 sworn examination, Hogan
testified that he met in Chicago with GES representatives from Las
Vegas during the week of January 29, 2001. (Ex. 15 at 125-27)239
According to Hogan, the GES representatives requested this meeting.
(Ex. 15 at 125) Hogan had no official role in Local 631. (Ex. 12
at 59-60) Thomas Acker, then the GES Labor Coordinator from Las
Vegas, and Pete Carroll, the regional representative for GES in
Chicago, conferred with Hogan and his son, Robert Hogan, the
principal officer of Local 714, at a restaurant in Chicago. (Ex. 15
at 125-27; Ex. 86 at 11-24)240 No one from Local 631 was present.
The GES representatives complained to Hogan about the
grievances Local 631 had filed concerning the use of United
employees. (Ex. 15 at 126; Ex. 86 at 11-18) Hogan's brother was
Vice President of United. (Ex. 18) Acker told the Hogans that GES
used the United employees because Local 631 was unable to provide
workers. (Ex. 15 at 126; Ex. 86 at 11-18) According to Hogan, the
GES representatives asked him what they should do about the
_____________
239 During his February 2, 2001 sworn examination, Passo
testified that approximately one week before his sworn examination,
he had discussed with Locascio the grievances Local 631 filed
against GES concerning the use of United employees. (Ex. 20 at 192;
Ex. 21 at 277) This appears to have been shortly before the GES
representatives met with Hogan.
240 Acker was reportedly terminated from GES sometime after
this meeting. (Ex. 86 at 15; Ex. 2 at 127-29)
167
grievances and the Local's reported inability to supply workers.
Hogan claimed he told them, "I don't have a clue. You figure that
out on your own." (Ex. 1 5 at 12 6) Hogan did not tell the Local
Trustee about this meeting. (Ex. i5 at 125-27; Ex. 1 at 186-87)
This was not the only Local 631 business GES consulted
Hogan on. The upcoming red book contract negotiations were also
discussed during this lunch meeting in Chicago. (Ex. 86 at 11-18)
Hogan had no involvement with those negotiations. Hogan described
this meeting as follows:
the general discussion I had with this guy is
they got a contract coming up in May, and they
are a nervous wreck because they don't think
anybody there -- Ed Jacobson, from what I
understand, is a construction guy, and they
know that, and they feel that labor people
with trade show experience should be involved.
So he is coming to me looking for direction:
"Who can we talk to? Who do we deal with out
there?"
So I have a call out for Carlow to explain
what their concern is, and then it's up to the
International. And at one point Jacobson, I
was told, was looking for me to help him too.
But I understand the industry, and I may get
asked to go out and assist in negotiations. I
know the contractors like that, because they
know I know what I'm doing and I know the
industry.
(Ex. 15 at 127-128)
As with his meeting in Las Vegas with the Freeman
representative, Hogan never told Scalf, his supervisor at the IBT,
168
about this meeting with GES representatives from Las Vegas. (Ex. 15
at 127; Ex. 12 at 47, 143-44)241 Nor did he tell anyone at Local
631, the concerned Local. (Ex. 15 at 125-27; Ex. 1 at 186-87) He
did, however, request Hoffa and Scalf to place him on the
negotiating team for Local 631's contract. (Ex. 78 at 98-99; Ex. 12
at 195-96)
3. Hogan Sought to Negotiate Local 631's 2001 Red
Book Contract
Since member action prevented United from being used at
the Super Show in January despite the arrangement Michael Hogan had
reached with Jacobson, a new tack was needed for the schemes. In
approximately March 2001, while General President Hoffa and Scalf
were in Chicago, Hogan requested them to allow him to negotiate the
collective bargaining agreement with the trade show contractors in
Las Vegas. (Ex. 78 at 98-99) The red book agreement expires on May
31, 2001. (Ex. 4) According to Hoffa, Hogan "said that there could
be a strike there and that I know all of those people and that I
should negotiate the contract." (Ex. 78 at 98-99) General
President Hoffa told Hogan, "that's not a good idea." (Ex. 78 at
98-99) When asked why he thought Hogan's involvement in the
______________-
241 During his February 7, 2001 sworn examination, Hogan
claimed that he had tried to contact Scalf to tell him about this
meeting. (Ex. 15 at 127) However, during his March 2, 2001 sworn
examination, Scalf testified that he was not aware of Hogan meeting
with GES representatives from Las Vegas. (Ex. 12 at 143-45)
169
negotiations would not be appropriate, Hoffa responded, "just
because of the background of all the things that have happened with
the IRB, I didn't think it was a good idea for him to be
negotiating that contract." (Ex. 78 at 99)
According to Scalf, Hogan also asked him if he could
negotiate Local 631's contract with the trade show contractors.
(Ex. 12 at 144) Scalf told Hogan that he could not. (Ex. 12 at
144) Scalf testified that Hogan told him that, "[h]e just thought
they needed help and that he knew everybody in that industry and he
would be able to help them." (Ex. 12 at 144-145) Hogan did not
disclose to either Hoffa or Scalf his brother's role as both a
general contractor and an officer of United. (Ex. 78 at 30-31; Ex.
12 at 61-62, 97 )
Y. Passo Appears to Have Tried to Interfere with the IRB's
Investigation
It appears that Passo tried to interfere with the IRB's
investigation. Between Monday, January 29 and Wednesday, January
31, 2001, the sworn examinations of Local 631 employees and members
were conducted. Passo, who had not been in Las Vegas since
November 19, 2000, traveled to Las Vegas on January 29, 2001 at IBT
expense. (Ex. 20 at 53; Ex. 141) The IRB sent sworn examination
notices to Local 631 employees and members on January 12, 2001.
(Ex. 263) Passo's travel arrangements were made after the sworn
examination notices were sent to the Local 631 employees and
170
members. (Exs. 138-39; Ex. 12 at 200)142 Passo was in Las Vegas
between January 29 and January 30, 2001 allegedly in connection
with the IBT convention. (Ex. 20 at 51-54; Ex. 12 at 200-02)
Accordingly, Passo had no need to go to Local 631 or to meet with
its employees. Nevertheless, he went to Local 631's offices on
January 29, 2001, the day he arrived in Las Vegas and the date the
sworn examinations began. (Ex. 79 at 10, 30-34)
While in Las Vegas, Passo spoke individually to five
people, including Trustee Jacobson, business agent Incandella,
Local 631 organizer Isner, IBT Organizer Norm Bouley and Local 631
member Locascio before their sworn examinations. (Ex. 228 at 23-24;
Ex. 92 at 34; Ex. 147 at 29-30; Ex. 79 at 30-32; Ex. 20 at 54-55)293
On January 29, 2001, Passo had dinner with Locascio and Incandella.
(Ex. 147 at 29-30; Ex. 228 at 23-24) Locascio's and Incandella's
sworn examinations were conducted the next day, January 30, 2001.
(Exs. 147, 228) In addition, on the morning of Locascio's sworn
________________
142 According to IBT records, it appears that Passo's travel
arrangements were made on January 24, 2001. (Exs. 138-39)
143 The following calls were made from Passo's cellular
telephone on January 4, 2001 which was after Passo's sworn
examination notice was delivered: at 4:53 p.m. to Local 631 for 34
minutes; at 5:26 to Locascio for 8 minutes; at 5:34 to Local 631
for 8 minutes; at 5:41 to Locascio for 30 minutes; at 6:18 to Local
631 for 11 minutes and at 6:28 to Locascio for 7 minutes. (Exs. 282
and 299) Accordingly, it appears that in the approximately 103
minutes between the hours of 4:53 and 6:36 p.m. that day, Passo
spoke to Locascio for approximately 45 minutes and with an
individual or individuals at the Local for approximately 53
minutes. (Ex. 282)
171
examination, Locascio spoke to Passo by telephone. (Ex. 147 at 29-
30)244
In addition, Passo had lunch with Isner, Bouley and
Incandella at the Big Dogs Bar and Restaurant before their sworn
examinations. (Ex. 79 at 30-32; Ex. 20 at 57) Jacobson was also at
the restaurant for part of the lunch. (Ex. 92 at 34)
Z. Conditions at the Local after Passo's Involvement
It appears that Passo's actions at Local 631 exacerbated
the problems which were given as the reasons for the imposition of
the Trusteeship. For example, Passo advocated that the non-union
United employees should perform Teamster work at substandard wages
without being contested. (Ex. 20 at 87; Ex. 6 at 127-132) Passo
also advocated that the Local enter into a substandard agreement
with United when one of the reasons given for the Trusteeship was
that the Local " . . . has negotiated substandard agreements with
employers." (Ex. 14) Passo caused Assistant Trustee Frates and
Trustee Wilkerson, who opposed the use of the United employees and
the substandard agreement, to be terminated. Passo, as explained
above, took steps to make it more difficult for the Local to meet
the call and easier for contractors to use United to do Teamster
work.
Nepotism was described in Santangelo's January 2000
___________________
244 Locascio testified that he called Passo to wake him up.
(Ex. 147 at 29-30)
172
report to Hoffa as one of the grounds for placing the Local in
Trusteeship. (Ex. 3) Yet, Passo aided Hogan who was pushing a
substandard contract on behalf of a company with a history of labor
racketeering, that was a known labor leasing company and at which
Hogan's brother was an officer and whose owner was Hogan's friend.
(Ex. 15 at 148) The proposal Passo and Hogan were urging Local 631
officials to approve had no benefit to Local 631, its members or
any working person employed through United.
Moreover, although the inexperience of the Local's
business agents was one of the grounds given for the Trusteeship,
instead of having Local business agents attend the TLA, Passo
arranged for his crony, Locascio, who held no union position, to
attend the TLA for officers and business agents at Local expense .245
In addition, as detailed above, Passo instructed Trustee Wilkerson
to hire his friends, who were without appropriate experience, for
various positions at the Local. He would turn to Scalf to ensure
his demands were met. As detailed above, these individuals
included Incandella, who was hired as a business agent; Locascio,
who was hired to work on the IBT's 2000 GOTV efforts; and Billy
Cooper, who was hired as a Local organizer. None of these
individuals had previously been employed by any IBT entity other
than Cooper who had been a Local's janitor.
_________________
245 According to Trustee Jacobson, Locascio was not qualified
to be a business agent. (Ex. 1 at 153-54)
173
Furthermore, although the failure to process grievances
was one of the grounds for the Trusteeship, Local 631 still has a
backlog of grievances involving GES and United. For example, as
detailed above, despite GES's repeated use of the non-union United
employees, who were paid substandard wages, to perform Teamster
work, as of March 29, 2001, the grievances filed against GES
concerning United remained unpursued for beyond the time provided
for in the red book contract and remain unresolved. Passo, the
General President's monitor, did not ensure these grievances were
pursued.
That a business agent made an ethnic slur was another
reason Hoffa gave for imposing the Trusteeship. Yet, shortly after
Local 631 was placed in Trusteeship, Passo made an anti-Semitic
remark to Arthur Goldberg, the owner of Bally's Hotel, and was
thrown out of that hotel. (Ex. 78 at 74-75; Ex. 12 at 180-81) IBT
Local 995 represents the valet attendants at Bally's. (Ex. 264; Ex.
78 at 74-75)296 In addition, Passo slandered IBT International Vice
President Cammack. (Ex. 78 at 62-64; Ex. 12 at 171-74) Both of
these incidents were known to Hoffa.
___________________
246 Hoffa directed Passo to apologize to Goldberg. (Ex. 78 at
74-75)
174
V. ANALYSIS
A. Passo and Hogan Lacked Credibility
As detailed below, on significant issues central to their
efforts to get an agreement for Simon's company, Passo and Hogan
lacked credibility. For example, Passo repeatedly grossly
misrepresented the extent of his concessions to Simon. In
addition, Passo's and Hogan's attempts to explain their activities
in Las Vegas with Simon were not credible. Furthermore, Passo's
claimed lack of memory regarding notable incidents in his efforts
to obtain an agreement for United was not believable. Moreover,
given the close relationship between Hogan and Passo, the frequency
of their contact and Michael Hogan's presence in Las Vegas, Passo's
claim that he was unaware of Michael Hogan's involvement with
United was not credible.
As detailed below, the concessions Passo made to Simon
from the red book contract would have been detrimental to Local
631's members and to United's employees and would have undercut the
Local's bargaining position for the 2001 contract negotiations.
In an effort to minimize his concessions, Passo claimed that the
wage rate he approved for the United employees was "like $11 or
$12; $11 something an hour." (Ex. 20 at 86) Passo testified this
was between seventy-five cents and one dollar less than the red
book agreement required. (Ex. 20 at 81) Passo also minimized to
Scalf the concessions he made to Simon. (Ex. 12 at 100, 112) In
175
contrast to his claims, the late August 2000 handwritten
memorialization of Passo and Simon's arrangement reflected more
significant concessions to Simon. The base wages were $10.00 an
hour for an employee with less than 250 hours in the industry and
$11.00 per hour for an employee with more than 250 hours in the
industry. (Ex. 84) For employees with less than 150 hours in the
industry, this was $2.49 per hour less than the red book agreement
in wages alone. (Ex. 4 at 11) For employees with more than 250
hours in the industry, this was $2.69 per hour less than wages in
the red book contract. (Ex. 4 at 11) Furthermore, Passo's
agreement with Simon eliminated overtime pay for hours worked
between 10:00 p.m. and 6:00 a.m., hours United employees frequently
performed Teamster work. (Ex. 84; Ex. 6 at 236-37; Ex. 90 at 36)
As a result, unless they worked more than eight hours in a day or
more than 40 hours in a week, during the hours of 10:00 p.m. and
6:00 a.m., Simon's employees would be paid at least $9.53 less per
hour in wages alone than individuals dispatched from Local 631
under the existing contract. (Ex. 84; Ex. 4 at 13; Ex. 207)
In a further attempt to conceal his significant
concessions to Simon, Passo testified that, under his agreement,
United would begin to make benefit fund contributions on behalf of
its employees after such employees had worked fifty hours. (Ex. 20
176
at 81)247 In contrast, Passo's late August handwritten notes
reflected that Simon would not make benefit fund contributions
until his employees worked more than 250 hours, a benefit for Simon
five times greater than Passo asserted in his sworn examination.
(Ex. 84) Based upon this concession, even if Simon, whom Passo
would have allowed to control the dispatching of workers and which
agreement did not contain any seniority provisions, allowed any of
his employees to work more than 250 hours, Simon would have saved
more than $1,900 per employee by not making benefit fund
contributions until they had worked 250 hours.
Furthermore, in an attempt to justify his actions, Passo
inexplicably claimed he was willing to grant Simon concessions from
the red book agreement because it was a "first contract." (Ex. 20
at 204) Despite being a statement of fact, the phrase provided no
explanation as to why Passo was willing to sabotage the red book
agreement on Simon's behalf. This purported justification ignored
that there was an existing multi-employer contract. The "most
favored nations" clause in the red book agreement would have
brought all Teamsters down to the level of concessions made to
Simon. Trustee Wilkerson and Assistant Trustee Frates repeatedly
told Passo about this. (Ex. 4 at 32; Ex. 26 at 48; Ex. 82 at 54)
________
247 Passo also did not tell Scalf that under his agreement the
United employees would not have benefit fund contributions made on
their behalf immediately. (Ex. 12 at 100-01) Under the red book
contract, these benefit fund contributions, which amounted to $7.90
per hour, were paid from the first hour worked. (Ex. 4 at 26-27)
177
Notably, when he described for Scalf his arrangement with United,
Passo did not tell him about the most favored nations clause in the
red book agreement. (Ex. 12 at 112)
As detailed above, when asked about the most favored
nations clause, Passo claimed he did not understand it. (Ex. 20 at
158-59) The concept is obvious and common. If Passo truly was
incapable of understanding it, he should have recognized he was
incompetent to negotiate the contract. Indeed, the late August
memorialization of the Passo-Simon arrangement with the deletion of
the subcontracting clause from the red book agreement established
exactly what Passo was about: working a deal with employers that
sold out the workers.
Furthermore, to try to legitimatize William Hogan's
presence at the Local 631 offices and at the Las Vegas Convention
Center in early March 2000 prior to the imposition of the
Trusteeship, at a time when Hogan had no International position and
no assignment regarding Local 631, Passo claimed, "I'm a younger
guy in Chicago and I looked up to him for his experience in the
labor movement." (Ex. 21 at 263)248 This, however, provided no
___________
248 Passo testified as follows:
Q: Why did you ask him [Hogan) to come over [to Local 631]?
A: Probably because I was new at this.
Q: And was Mr. Santangelo going to be going with you?
A: Yes.
178
explanation for the intimate involvement of the conflicted Hogan in
the United discussions. Hogan's brother was an officer of the
company. Hogan's son took a gift from Simon during the
negotiations. Hogan bypassed the Trustee and Assistant Trustee,
involving Passo in meetings with Freeman, a convention industry
employer, from which Local employees were excluded. (Ex. 15 at 119;
Ex. 20 at 200) Hogan failed to disclose meetings he had with Local
employers to the Trustee or the International. (Ex. 15 at 125-27;
Ex. 1 at 186-87)
In an attempt to cloak his activities on behalf of United
with some legitimacy, Hogan testified,
. . . Rick Simon would establish a legitimate
work force. Okay.
So now we got, say, 300 good solid people
committed; that when the Union opened their
doors to add people, they would take them from
Rick's company and they would be -- go over to
the Union. So they would be on the Union.
Now Rick would then lose control of that
ability to supply these people. They would
then become Union people, strictly as their
lists open up.
Because I guess they have some rules, or
something, about how many people are on their
lists. There is something about hours, or
something. That whole thing is a little vague
to me. I'm not really sure .. . . .
Q: So you weren't going alone?
A: Right.
(Ex. 21 at 262-63)
179
But that was the idea. He would establish
good Teamsters. And eventually they would
move in, work strictly for the Union, and, you
know, they wouldn't wind up on the A list at
some point.
And in the meantime, Rick would be continually
bringing in people, you know, to keep training
them. Because you get a big turnover out
there, and there is a lot of competition for
the labor out there.
(Ex. 15 at 79-80) However, Hogan's rationale for his actions
concerning United, where his brother was an officer and from whose
owner his son received a substantial gift, was nonsensical since
there were no limits on the number of individuals who could
register with the Local's dispatch office for work in the
convention industry. Local 631 had, under the red book contract,
an open dispatch office where anyone, whether a union member or
not, could register for work. (Ex. 7 at 68-70; Ex. 2 at 190-91)249
Moreover, there was in place a Convention Training Trust designed
to train workers to perform trade show work. (Ex. 2 at 247-250)
Left unexplained was how Hogan's "solution" to create more
Teamsters through agreeing to allow one employer to pay his
employees less and provide less benefits was helpful to Local 631
and its members.250 Moreover, in this right-to-work state, the
__________
249 Non members were required to pay a monthly $40 dispatch
fee. (Ex. 7 at 70)
250 As a result of the August 1996 Local 714 Trusteeship
report which described various conflicts of interest between the
Hogan family union officials and their relatives with ownership
interests with companies, Hogan was on notice of the impropriety of
180
United employees would not necessarily become Teamsters.
Furthermore, all discussions were held solely with the employer.
Hogan also asserted that entering into the arrangement
with Simon's company would solve the Local's alleged inability to
meet the trade show contractors' calls. (Ex. 15 at 55-58) As an
initial matter, as detailed above, the evidence did not support
Hogan's claim that the Local was regularly unable to meet the
calls. (Ex. 9 at 14, 37; Ex. 8 at 13-19) Moreover, under the
arrangement with Simon, a new system would have been created in
which Simon, not Local 631, dispatched workers. (Ex. 84)
Furthermore, even if Passo and Hogan believed that there was a need
for additional trade show workers to be dispatched from Local 631,
they never tried to organize the United employees or encourage the
United employees to register with the dispatch office. In
addition, they took no steps nor directed anyone else to take steps
to increase the number of people registered with the Local 631
________________
such conflicts of interest. Nevertheless, Hogan continued to
assist United, where his brother was an officer, to try to get a
substandard agreement with Local 631. Indeed, during his February
2001 sworn examination, Hogan claimed, " . . . I don't know what's
wrong with helping my family, but apparently somebody has got a
problem with that." (Ex. 15 at 58-59) Moreover, even though his
brother, through Show Biz USA which did trade show work in Las
Vegas, had a direct interest in the red book contract negotiations,
Hogan tried to participate in those negotiations. (Ex. 78 at 97-99;
Ex. 12 at 144) Furthermore, even though knowing Simon was
negotiating with Local 631 and even though Hogan himself was
involved to the point of arranging Simon's lunch with Hoffa, Hogan,
who was on the committee for the Hoffa Memorial Scholarship Fund
golf tournament, still allowed his son to accept a substantial gift
from Simon. (Ex. 15 at 89; Ex. 85)
181
dispatch office. Rather, they made enormous economic concessions
to Simon and Michael Hogan's company.='=
Moreover, the arrangement Passo and Hogan were pushing,
rather than solving any problem the Local allegedly had in meeting
the trade show contractors calls, would have created two new
subclasses of employees, the Dl and D2 workers, who would have
received lower wages and fewer benefits than were available to even
non-members by merely registering with the Local's dispatch
office. 252
In a further example of his lack of credibility, Passo
claimed that he could not recall Frates' and Whitfield's opinions
of his proposed arrangement with United. (Ex. 20 at 93-94, 162-
____________
251 Indeed, both Hogan and Passo objected to the dispatchers
increasing the number of people available to be dispatched by
contacting non-IBT Locals in Las Vegas for workers once all people
registered with Local 631 were working. Hogan and Passo stated
that the non-IBT unions would infringe upon the Teamsters
jurisdiction. (Ex. 20 at 145-47; Ex. 15 at 40-41) Instead of
having Local 631 dispatch union members to work at the red book
contract wage rate, Hogan and Passo preferred to enter into a
substandard arrangement with Simon's company where Simon would
control the dispatching. Their position was detrimental to Local
631 and its members, the other unions in Las Vegas and the United
employees. Hogan's and Passo's conduct was designed to benefit the
trade show contractors and the company where Hogan's brother was an
officer.
252 For example, for the first 1,000 hours they worked in the
industry, Simon's employees would not receive any overtime pay for
work during the hours of 10:00 p.m. and 6:00 a.m. unless they
worked more than eight hours in a day or 40 hours in a week.
182
63)253 Passo had repeated conversations with both Frates and
Whitfield during which he tried to persuade them to enter into the
substandard agreement. (Ex. 6 at 97-105, 111-12, 124; Ex. 82 at 54-
57, 70-73; Ex. 20 at 92, 177) During these conversations, Frates
and Whitfield expressed their strong opposition to his substandard
proposal and pointed out the deficiencies in the arrangement he was
promoting. (Ex. 6 at 99-105, 111-12, 124-25; Ex. 82 at 54-57, 70,
___________
253 Passo testified as follows:
Q: Did you tell [Frates] you thought it was a good idea for
Local 631 to enter into this agreement with Mr. Simon's
company?
A: Yes, I'm sure I did, yes.
Q: And what was Mr. Frates' response?
A: He wasn't really -- I don't think he had too much to say
either way.
Q: And did you tell [Whitfield] you thought it was a good
idea for 631 to enter into the agreement with Mr. Simon's
company that had some concessions off the GES contract?
A: I'm sure I did, yes.
Q: What was her view of that?
A: I don't remember her view. I don't remember which way
she was going with it.
Q: Did she ever tell you that she didn't think it was a good
idea?
A: I can't remember.
(Ex. 20 at 162-63)
183
234) They both told Passo they opposed giving concessions to Simon
and stated that Simon should sign the red book contract. (Ex. 6 at
124-25; Ex. 82 at 54) Passo's claimed lack of memory was suspect.
Passo also incredibly claimed that he did not know that
Michael Hogan was involved with United. (Ex. 20 at 68-69)254
William Hogan, who described his relationship with Passo as "good
friends", grudgingly acknowledged that he "probably" told
Passo
that his brother was involved with United. (Ex. 15 at 39, 76)255
__________
254 Passo testified as follows:
Q: Does Michael Hogan have any position with Rick Simon's
company?
A: I don't know.
Q: Did you ever hear that Michael Hogan was the Vice
President of Rick Simon's company?
A: No.
Q: Did you ever hear that Mike Hogan had any contact with
Rick Simon's company?
A: No.
Q: Bill Hogan never mentioned that to you when he talked to
you about Rick Simon's company
A: No, he didn't.
(Ex. 20 at 68-69)
255 Hogan testified as follows:
Q: Did you ever tell Mr. Passo that your brother Michael was
involved or worked for United Maintenance?
A: Probably, but I'm not sure. I don't know that I ever
made that known to Dane.
184
During the seven months between April and November 2000 when Passo
was in Las Vegas trying to get an agreement for Hogan's brother's
company, there were, at least, 229 calls from Passo's cellular
telephone to Hogan's cellular telephone and from Hogan's cellular
telephone to Passo's cellular telephone. (Exs. 44-51, 54-60, 68-76)
Passo, who had met Michael Hogan in approximately 1996 or 1997 in
connection with the Hoffa campaign, also saw Michael Hogan in Las
Vegas at Bally's Hotel during the summer of 2000. (Ex. 20 at 107-
When Mike came over in Las Vegas that time Dane was
there, it's very possible then I said to Dane: "You know,
Mike is -- you know -- he is my brother. He is talking
to those guys from the Local."
And that's a possibility, but I really don't recall. I
don't know that I ever did that.
Q: And since that time at the Western Region meeting that we
have talked about, did you ever tell Mr. Passo that your
brother worked for United Maintenance?
A: Not that I recall, no. I could have. I don't know.
When I say that, now, let me clarify that, because with
everything that's going on here, you know, when this
first came up, you know, that they want all my records,
and supposedly about Las Vegas, I could very easily have
said something, because my brother's name was being
thrown around, my name was being thrown around.
So I could very likely have said something to Dane about
that, you know, "Rick Simon's company has become a
problem here. My brother works for Rick." That is a
very strong possibility." . . .
(Ex. 15 at 38-39)
185
08)256 Given the ongoing talks and meetings between Passo and Hogan
concerning United, Passo's claim that he was unaware that his close
friend's brother was involved in the company was not credible.
Indeed, Passo was frequently in contact as noted above with his
cronies in Local 631. Even members on the floor of the convention
center knew of Michael Hogan's relationship with United. (Ex. 156
at 36; Ex. 205 at 15-16) In addition, Jacobson admitted he sought
out Passo when he was not in Las Vegas to determine if a member had
connections to William or Michael Hogan. (Ex. 92 at 36-37) See,
United States v. McDermott, 2001 US App. Lexis 5277 (2d Cir. March
29, 2001) .
Furthermore, Passo's testimony concerning his lack of
memory about the lunch among Hogan, Simon, Hoffa and Passo was also
incredible. First, he denied that he had ever seen Simon in
Chicago.257 Then, he claimed he did not know if Hoffa ever met
___________
256 Passo testified that William Hogan was also in Las Vegas
at this time. (Ex. 20 at 107) According to Passo, Michael Hogan
told him that he was "having a show or was out there for a show .
. .." (Ex. 20 at 107-08)
257
During his sworn examination, Passo testified as follows:
Q: All the time that you've seen Mr. Simon, has that ail
been in Las Vegas?
A: Yes.
Q: You've never seen him in Chicago
A: Never.
(Ex. 20 at 103)
186
Simon. When pressed, Passo's testimony evolved, admitting the
lunch in Chicago with Hogan, Simon and Hoffa but being evasive.258
Passo denied that the agreement with Simon's company was discussed
during the lunch meeting in Chicago with Hogan, Simon and Hoffa.
(Ex. 20 at 168)259 In contrast, Hoffa recalled that an agreement
with Simon's company was discussed at this lunch. (Ex. 78 at 28)
Given Passo's investment in the Simon arrangement, it was
incredible for Passo to claim Simon did not speak to Hoffa about
____________________
258 During his sworn examination, Passo testified as follows:
Q: Did Mr. Hoffa ever meet Mr. Simon?
A: Did he ever meet him? I don't know, I don't know if he
ever met him.
Q: Did you ever introduce Mr. Hoffa to Mr. Simon?
A: Did I ever introduce him? I never introduced him to Mr.
Simon, no, I don't think so, no.
Q: Did you ever see Mr. Simon and Mr. Hoffa together?
A: I can't remember. I think we were at an AFL-CIO meeting
together in Chicago and Bill Hogan came to lunch -- came
to pick us up to go to lunch in a break and Simon was
with Bill Hogan, that's right.
(Ex. 20 at 165)
259 During his sworn examination, Passo testified about the
Chicago lunch with Hogan, Simon and Hoffa as follows:
Q: Was there any discussion of the proposed agreement with
Mr. Simon's company?
A: No, I don't think so, no.
(Ex. 20 at 168)
187
the proposed agreement.
B. Passo and William Hogan Colluded with Simon, an Employer,
to Attempt to Force Local 631 to Enter into a Substandard
Agreement with Simon's Company
As detailed above, to the detriment of the Local 631
members employed in the trade show and convention industries and
the United employees, Passo and Hogan colluded with United CEO
Simon to try to force Local 631 officials to enter into a
substandard agreement with United. Hogan and Passo would have
created two subclasses of lower paid workers that would have
performed Teamster work. This would have given the trade show
contractors a strong economic incentive to use the United employees
over the higher paid workers dispatched from Local 631.`60 The
arrangement with United Passo and Hogan advocated would also have
undermined the Local's bargaining position in the 2001 contract
negotiations. In addition, by pushing Local 631 officials to enter
into an agreement with United without having spoken to any United
employees, Passo and Hogan violated IBT procedures.
In addition to Passo's and Hogan's proposed arrangement
with Simon being harmful to the Local 631 members employed in the
trade show and convention industries, the evidence of their
______________
260 Indeed, evidencing the substantial economic benefits to
the general contractors who were signatories to the red book
agreement, GES, the contractor most aggressively attempting to
bring in United employees, allegedly would agree to waive the most
favored nations clause if it could use the United employees. (Ex.
82 at 70)
188
collusion with Simon included the following: Hogan introduced his
brother, an officer at United, a labor broker, to Local 631
officials in order to assist United to obtain a substandard
arrangement to provide labor to the trade show contractors in Las
Vegas;261 no attempt was ever made to organize the United employees
(Ex. 20 at 109-110; Ex. 15 at 22-26, 60; Ex. 79 at 14-20; Ex. 80 at
20-24; Ex. 81 at 22-26, 29-32); without ever speaking to any United
employee, Passo urged Local 631 officials to enter into a
substandard agreement that would have created new subclasses of
employee, D1 and D2 workers, who would have been paid less and
would have received fewer benefits than any individual who
registered with the Local 631 dispatch office (Ex. 84); with
Passo's assistance, Hogan, who had no official role at Local 631,
interjected himself into Local 631 affairs and met with employers
regarding .Local 631 matters without the Local 631 Trustee being
present or notified of the meetings; Passo and Hogan failed to
disclose to their superiors at the IBT their activities concerning
Local 631 employers ;262 Hogan failed to disclose to Hoffa and Scalf
____________________
261 Traditionally, labor brokers have undermined working
conditions for employees. (Ex. 26 at 49-50; Ex. 32 at 31)
262 For example, although he participated with Hoffa in the
Chicago lunch meeting Hogan arranged with Simon, Passo did not
disclose to Hoffa either before or after the lunch that he was
actively engaged with Simon in trying to enter into an agreement.
(Ex. 78 at 25-29) Hogan and Passo failed to report to Scalf or
Trustee Wilkerson the meeting during which the Freeman
representative objected to their proposed substandard agreement
with United. (Ex. 12 at 145-46) Hogan also failed to disclose to
189
that his brother was an officer of United (Ex. 78 at 30-31; Ex. 12
at 62, 196); Passo lied to Trustee Wilkerson falsely claiming that
high-ranking IBT officials approved the substandard agreement when
they had not; Passo concealed the extent of his substantial
concessions to United during his sworn examination and during his
conversations with Scalf; and Passo caused Local 631 officials who
opposed his proposed arrangement with United to be terminated.263
Passo's and Hogan's failure to speak to any of the United
employees emphasized the extent of their collusion with Simon.
Passo and Hogan did not direct Local 631's Director of Organizing,
the Local's organizer or the IBT organizer assigned to Local 631,
to organize the United employees. (Ex. 79 at 19-20; Ex. 80 at 21-
23; Ex. 81 at 29-32)264 The United employees never designated the
IBT and Local 631 to be their bargaining representative.
Scalf or Local 631 Trustee Jacobson that he met with Las Vegas GES
representatives in Chicago to discuss grievances Local 631 filed
against GES for the use of the United employees and the upcoming
contract negotiations. (Ex. 15 at 126-27; Ex. 1 at 186-87; Ex. 12
at 47, 143-44)
____________
263 While Hogan was advocating for the substandard agreement
for United, Simon paid $1,200 in golf fees for Hogan's son, Local
714 member James Hogan, to attend the Hoffa Scholarship Fund golf
tournament in Las Vegas in September 2000. (Ex. 85; Ex. 86 at 32-
33; Ex. 15 at 98)
264 Indeed, Norman Bueley, an IBT Organizer assigned to Local
631 during parts of 2000, recognized the unusual nature of Passo's
activities concerning United when he testified that he heard that
there was a "top down" organizing campaign at United. (Ex. 81 at
28, 48) When asked what he meant by a "top down" organizing
campaign, Bueley responded, "[t]hat there wasn't a traditional
drive going after an election." (Ex. 81 at 28)
190
Passo's and Hogan's actions also failed to comply with
the Local's Bylaws and IBT's procedures for negotiating first
contracts. Section 27 of the Local 631 Bylaws required a meeting
of the effected members to be held to formulate bargaining demands
whenever a contract was to be negotiated. Analogously, Passo and
Hogan did not speak to any United employee, let alone hold any such
meeting prior to discussing a contract with Simon and advocating
that Local 631 officials enter into the substandard agreement.
Indeed, the IBT's Organizing Guide emphasized communication with
employees. For example, the IBT's Organizing Guide provided for
the following five steps when negotiating a first contract:
1. Hold meetings and conduct one-on-one
surveys with all workers to find out
what issues they want addressed in
their first contract.
2. Supervise the election of a
negotiating committee from among all
the workers to represent the union
during negotiations.
3. Begin face-to-face negotiations with
the employer based on the proposals
developed.
4. Reach a tentative agreement on all
issues between your committee and
the employer.
5. Bring back that agreement to all the
workers for ratification or
rejection by secret ballot vote.
(Ex. 292 at 49) Further evidencing their collusion with Simon,
Passo and Hogan followed none of these procedures.
191
VI. PROPOSED CHARGE
Based upon the foregoing, it is recommended that Dane
Passo and William Hogan, Jr. be charged as follows:
While members of the IBT and International
Representatives, you brought reproach upon the IBT by colluding
with an employer in violation of Article II, Section 2(a) and
Article XIX, Section 7(b)(2) of the IBT Constitution and in
violation of your fiduciary obligations to the IBT and its members,
29 U.S.C. §501(a), to wit:
Between at least March 1999 and the present, as detailed
in the above report, each of you colluded with Richard Simon, the
CEO of United Service Companies, to cause Local 631 to enter into
a substandard contract with a Simon company and to have those
employees perform Teamster work in the Las Vegas trade show and
convention industries for which Simon's company would pay lower
wages, make less benefit fund contributions and receive other
concessions from what the existing collective bargaining agreement
required. As part of this scheme, which was to the detriment of
IBT Local 631 and its members, each of you attempted to cause Local
631 officials to enter into a substandard agreement with Simon's
company, of which Hogan's brother, Michael, was an officer.
192
-- EXHIBITS TO REPORT REGARDING DANE PASSO AND WILLIAM T. HOGAN
Ex. 1 Sworn Examination of Eddie L. Jacobson dated March 29,
2001
Ex. 2 Sworn Examination of Charles Benboe dated March 29, 2001
Ex. 3 James Santangelo Report dated January 2000 to James Hoffa
Ex. 4 Collective Bargaining Agreement between Local 631 and GES
Exposition Services, Inc. for the period from June 1,
1997 to May 31, 2001
Ex. 5 Sworn Examination of David Breyman dated December 20,
2000
Ex. 6 Sworn Examination of Roberta Whitfield dated December 19,
2000
Ex. 7 Sworn Examination of Jennifer Dodds dated March 29, 2001
Ex. 8 Sworn Examination of Frances Almaraz dated January 31,
2001
Ex. 9 Sworn Examination of Jennifer Dodds dated January 30,
2001
Ex. 10 Letter appointing Dane Passo Personal Representative to
Local 631
Ex. 11 Dane Passo's IBT Personnel records
Ex. 12 Sworn Examination of Carlo B. Scalf dated March 2, 2001
Ex. 13 Letter appointing James Santangelo Personal
Representative to Local 631
Ex. 14 Trusteeship Notice for Local 631
Ex. 15 Sworn Examination of William T. Hogan dated February 7,
2001
Ex. 16 Trusteeship Report Regarding Local 714
Ex. 17 Form LM-2 for Local 705 for 1992
Ex. 18 Business Card of Michael Hogan for United Services
Ex. 19 Corporate Records United Service Companies
Ex. 20 Sworn Examination of Dane Passo dated February 2, 2001
Ex. 21 Sworn Examination of Dane Passo dated February 9, 2001
Ex. 22 Michael Hogan'-s Business Card for Show Biz USA
Ex. 23 Corporate Records for Show Biz USA
Ex. 24 United Temps of Nevada Incorporation Papers
Ex. 25 Sworn Examination of Timothy Murphy dated December 20,
2000
Ex. 26 Sworn Examination of James E. Wilkerson, Jr. dated
December 18, 2000
Ex. 27 Records from United Services Website
Ex. 28 News articles regarding Ben Stein
Ex. 29 2"d Circuit Decision Re Dominic Senese
Ex. 30 FBI 302 Concerning February 4, 1988 Interview of Richard
Simon
Ex. 31 News Article regarding Dominic Senese
Ex. 32 Sworn Examination of James Santangelo dated February 8,
2001
Ex. 33 Dane Passo's Cellular Telephone Records for Invoice dated
April 26, 1999
Ex. 34 Dane Passo's Cellular Telephone Records for Invoice dated
May 26, 1999
Ex. 35 Dane Passo's Cellular Telephone Records for Invoice dated
June 26, 1999
Ex. 36 Dane Passo's Cellular Telephone Records for Invoice dated
July 26, 1999
Ex. 37 Dane Passo's Cellular Telephone Records for Invoice dated
August 26, 1999
Ex. 38 Dane Passo's Cellular Telephone Records for Invoice dated
September-26, 1999
Ex. 39 Dane Passo's Cellular Telephone Records for Invoice dated
October 26, 1999
Ex. 40 Dane Passo's Cellular Telephone Records for Invoices
received between November :., 1999 and December 5, 1999
Ex. 41 Dane Passo's Ceil u 1 ar Te 1 e~:,hone ?~acords for Invoices
recei-:ed between December 5, 1999 and January 5, 2000
Ex. 42 Dane Passo's Cellular Telephone Records forInvoices
received between January 6, 2000 and February 5, 2000
Ex. 43 Dane Passo's Cellular Telephone Records for Invoices
received between February 6, 2000 and March 5, 2000
Ex. 44 Dane Passo's Cellular Telephone Records for invoices
received between March 6, 2000 and April 5, 2000
Ex. 45 Dane Passo's Cellular Telephone Records forInvoices
received between April 6, 2000 and May 5, 2000
Ex. 46 Dane ?asso's Cellular Telephone Records forinvoices
received between May 6, 2000 and June 5, 2000
EX. 47 Dane Passo's Cellular Telephone Records for Invoices
received between. June 6, 2000 and July 5, 2000
Ex. 48 Dane Passo's Cellular Telephone Records for Invoices
received between July 6, 2000 and August 5, 2000
Ex. 49 Dane Passo's Cellular Telephone Records for Invoices
received between September 6, 2000 and October 5, 2000
Ex. 50 Dane Passo's Cellular Telephone Records forInvoices
received between October 6, 2000 and November 5, 2000
Ex. 51 Dane Passo's Cellular Telephone Records forInvoices
received between November 6, 2000 and December 5, 2000
Ex. 52 Dane Passo's Cellular Telephone Records forInvoices
received between December 6, 2000 and January 5, 2001
Ex. 53 Dane Passo's Cellular Telephone Records for Invoice dated
March 7, 2000
Ex. 54 Dane Passo's Cellular Telephone Records for Invoice dated
April 8, 2000
Ex. 55 Dane Passo's Cellular Telephone Records for Invoice dated
May 8, 2000
56 Dane Passo's Cellular Telephone Records for Invoice dated
June 7, 2000
Ex. 57 Dane Passo's Cellular Telephone Records for Invoice dated
July 7, 2000
Ex. 58 Dane Passo' s Cellular Telephone Recorus for Invoice gated
August 3, 2000
Lx. 59 Dane Passo's Cellular Telephone Records for Invoice dated
September 7, 2000
Ex. 60 Dane Passo's Cellular Telephone Records for Invoice dated
October 9, 2000
Ex. 61 Local 714 Telephone Records for bills thru August 11,
1999
Ex. 62 Local 714 Telephone Records for bills thru September 11,
1999
Ex. 63 Local 714 Telephone Records for bills thru October 11,
1999
Ex. 64 Local 714 Telephone Records for bills thru November 11,
1999
Ex. 65 Local 714 Telephone Records for bills thru January 11,
2000
Ex. 66 Local 714 Telephone Records for bills thru February 11,
2000
Ex. 67 Local 714 Telephone Records for bills thru March 11, 2000
Ex. 68 Local714 Telephone Records for bills thru April 11, 2000
Ex. 69 Local714 Telephone Records for bills thru May 11, 2000
Ex. 70 Local 714 Telephone Records for bills thru June 11, 2000
Ex. 71 Local714 Telephone Records for bills thru July 11, 2000
Ex. 72 Local 714 Telephone Records for bills thru August 11,
2000
Ex. 73 Local 714 Telephone Records for bills thru September 11,
2000
Ex. 74 Local 714 Telephone Records for bills thru October 11,
2000
Ex. 75 Local 714 Telephone Records for bills thru November 11,
2000
Ex. 76 Schedule of Telephone calls between Dane Passo and
William T. Hogan
Ex. 77 Local 631 Dispatch Rules
Ex. 78 Sworn Examination of James Hoffa dated March 21, 2001
Ex. 79 Sworn Examination of Raymond Isner dated January 31, 2001
Ex. 80 Sworn Examination of r~Iilliam Cooper dated February 7,
2001
Ex. 81 Sworn Examination of Norman E. Bouley, Jr. dated January
30, 2001
Ex. 82 Sworn Examination of Martin rates dated January 18, 2001
Ex. 83 Sworn Examination of Alina Hernandez dated December 19,
2000
Ex. 84 Letter dated April 11, 2001 from Bruce Maffeo, Esq. with
attachments
Ex. 85 United Maintenance Donations to the James R. Hoffa
Memorial Scholarship Fund
Ex. 86 Sworn Examination of Robert A. Hogan dated March 23, 2001
Ex. 87 Blank
Ex. 88 IRB Document Request dated February 9, 2001 to the IBT
Ex. 89 IBT Letter dated April 11, 2001 to the IRB
Ex. 90 Sworn Examination of Charles Justice dated March 28, 2001
Ex. 91 Letter dated February 4, 2000 from Joint Council 25 to
James Hoffa
Ex. 92 Sworn Examination of Eddie L. Jacobson dated January 31,
2001
Ex. 93 Sworn Examination of Mary Hardiman dated April 3, 2001
Ex. 94 Dane Passo Expense Report for March 1999
Ex. 95 Dane Passo Credit Card Statement for March 1999
Ex. 96 Dane Passo Expense Report =or ;.pril 1999
Ex. 97 Dane Passo Credit Card Statement for Lori! 1999
Ex. 98 Dane ?asso Expense Report for May 1999
Ex. 99 Dane Passo Credit Card Statement for Mav 1999
Ex. 100 Dane Passo Expense Report for June 1999
Ex. 101 Dane Passo Credit Card Statement for June 1999
Ex. 102 Dane Passo Expense Report for July 1999
Ex. 103 Dane Passo Credit Card Statement for July 1999
Ex. 104 Dane Passo Expense Report `or August 1999
Ex. 105 Dane Passo Credit Card Statement for August 1999
Ex. 106 Dane Passo Expense Report for September 1999
Ex. 107 Dane Passo Credit Card Statement for September 1999
Ex. 108 Dane Passo Expense Report for October 1999
Ex. 109 Dane Passo Credit Card Statement for October 1999
Ex. 110 Dane Passo Expense Report for November 1999
Ex. 111 Dane Passo Credit Card Statement for November 1999
Ex. 112 Dane Passo Expense Report for December 1999
Ex. 113 Dane Passo Credit Card Statement for December 1999
Ex. 114 Dane Passo Expense Report for January 2000
Ex. 115 Dane Passo Credit Card Statement for January 2000
Ex. 116 Dane Passo Expense Report for February 2000
Ex. 117 Dane Passo Credit Card Statement for February 2000
Ex. 118 Dane Passo Expense Report for March 2000
Ex. 119 Dane Passo Credit Card Statement for March 2000
Ex. 120 Dane Passo Expense Report for April 2000
Ex. 121 Dane Passo Credit Card Statement _`or z%pril 2000
Ex. 1 22 Dane Passo xpense ?epcr t =:,r :11ay 2000
Ex. 123 Dane Passo Credit Card Statement for ",?ay 2000
Ex. 124 Dane Passo Expense Report for June 2000
Ex. 125 Dane Passo Credit Card Statement for June 2000
Ex. 126 Dane Passo Expense Report for July 2000
Ex. 127 Dane Passo Credit Card Statement for July 2000
Ex. 128 Dane Passo Expense Report for August 2000
Ex. 129 Dane Passo Credit Card Statement for August 2000
Ex. 130 Dane Passo Expense Report for September 2000
Ex. 131 Dane Passo Credit Card Statement for September 2000
Ex. 132 Dane Passo Expense Report for October 2000
Ex. 133 Dane Passo Credit Card Statement for October 2000
Ex. 134 Dane Passo Expense Report for November 2000
Ex. 135 Dane Passo Credit Card Statement for November 2000
Ex. 136 Dane Passo Expense Report for December 2000
Ex. 137 Dane Passo Credit Card Statement for December 2000
Ex. 138 Dane Passo Expense Report for January 2001
Ex. 139 Dane Passo Credit Card Statement for January 2001
Ex. 140 Dane Passo Expense Report for February 2001
Ex. 141 Dane Passo Credit Card Statement for February 2001
Ex. 142 Schedule of meals between Dane Passo and Ronald Dudash
Ex. 143 List of IBT International Representatives and Organizers
Ex. 144 Schedule of meals between Dane Passo and Vito Locascio
Ex. 145 Teamster Leadership Academy records regarding Vito
Locascio
Ex. 146 Dues Record for Vito Locascio
Ex. 147 Sworn Examination of Vito Locascio dated Januar%~ <0, 2001
Ex. 149 James Wilkerson's Termination
Ex. 149 Sworn Examination of Charles Benboe dated January 29,
2001
Ex. 150 Local 631 Records regarding Purchase of Automobiles
Ex. 151 Magic Show Grievances with Fax Cover Sheet Showing they
were sent on September 5, 2000 (Three Grievances)
Ex. 152 SEMA Show Grievance dated November 2000
Ex. 153 CES Grievance dated January 2001
Ex. 154 Show Biz USA Letter to Trustee Jacobson
Ex. 155 Sworn Examination of Stephen Geiger dated March 28, 2001
Ex. 156 Sworn Examination of Michael Robertson dated January 29,
2001
Ex. 157 Article XIX, Section 5(a) of IBT Constitution
Ex. 158 Excerpt from IBT LM-2 for 1999 regarding Passo's
Allowances
Ex. 159 Charge Report Against Daniel Ligurotis
Ex. 160 Decision of Independent Administrator Involving Daniel
Ligurotis
Ex. 161 Opinion & Order of Judge David N. Edelstein Involving
Daniel Ligurotis
Ex. 162 Sworn Examination of William T. Hogan dated May 29, 1996
Ex. 163 Blank
Ex. 164 William T. Hogan's Resignation from the Hoffa Slate
Ex. 165 Schedule of Meals Between Dane Passo and William T. Hogan
in Las Vegas in 2000
Ex. 166 Schedule Showing Trips to Las Vegas by Dane Passo and
William T. Hogan
Ex. 167 Dues Record for Frank Incandella
Ex. 168 Sworn Examination of Terry Newton dated December 20, 2000
Ex. 169 Sworn Examination :, ~~i:~c :iacDonaid aated March 28, .20.01
Ex. 170 Local 631 Dispatch Records for Carpenters Union Members
Ex. 171 Business Card for Richard Simon
Ex. 172 News Articles re:Richard Simon & United dated September
1980 from the Chicago Tribune and dated April 1997 from
the Chicago Sun Times
Ex. 173 Sworn Examination of Michael P. Hogan, Jr. dated February
22, 1996
Ex. 174 Sworn Examination of Michael Hardy dated January 25, 1996
Ex. 175 Sworn Examination of James M. Hogan dated May 22, 1996
Ex. 176 Dues Record for Michael P. Hogan
Ex. 177 O'Hare Exposition Maintenance Incorporation papers
Ex. 178 Incorporation Papers and Annual Reports from Illinois
Secertary of State regarding O'Hare Exposition
Maintenance
Ex. 179 Sworn Examination of William Hogan, Sr. dated June 21,
1977
Ex. 180 Certificate of Dissolution for O'Hare Exposition
Maintenance
Ex. 181 1979 Incorporation Papers and Annual Reports Records from
Illinois Secretary of State regarding Rosemont Exposition
Services
Ex. 182 Excerpt from the Sworn Examination of James M. Hogan
dated May 22, 1996
Ex. 183 Sworn Examination of Dale Torii dated February 22, 1996
Ex. 184
Ex. 185 Western Region Delegates Meeting Records for June 1999
Ex. 186 William T. Hogan Travel Records Showing his attendance at
the 1999 Western Region Delegates Meeting in Las Vegas
Ex. 187 Local 631 Records re Ti.nothy :Murphy for June 1-999
Ex. 188 Local 631 Employer List Showing McNabb Carpet, Exhibitor
Carpet Service, Freeman, GES and Employco Union Payroll
Ex. 189 Complaints Received by Joint Council 42 Re: Locai.63.1_
Ex. 190 IRB Letter asking for all records re: Telephone Calls to
the IBT re Local 631
Ex. 191 IBT Response with Two Telephone Messages attached
Ex. 192 Sworn Examination of Charles Leo Deaner dated April 3,
2001
Ex. 193 Letter dated March 3, 2000 from Timothy Murphy to James
Hoffa
Ex. 194 Charges Filed by Timothy Murphy Against Frank Christian
Ex. 195 Dismissal of Charges Filed by Timothy Murphy Against
Frank Christian
Ex. 196 Local 631 General Membership Meeting Minutes dated
September 15, 1999
Ex. 197 Letter dated October 4, 1999 from Frank Christan to James
Hoffa
Ex. 198 IBT Appointment of James Wilkerson as Trustee of Local
631
199 Memo dated April 2, 1997 from Bill Marovitz announcing
"Chicago Salutes Bill Hogan, Jr."
Ex. 200 Dues Record of Roberta Whitfield
Ex. 201 Schedule of Dane Passo's expenses in Las Vegas in the
year 2000
Ex. 202 Document reflecting the Federal Minimum Wage
Ex. 203 Sworn Examination of William Christian dated January 31,
2001
Ex. 204 Sworn Examination of Henry Ortega dated March 28, 2001
Ex. 205 Sworn Examination of Shane Navara dated January 29, 2001
Ex. 206 Local 631 Telephone Bills Showing May 26 and June 13,
2000 Telephone Calls to United Offices in Chicago,
Illinois
Ex. 207 Schedule Comparing the -.eu ~oo~c-=yyage Rates to-the Wage
Rates Proposed by Dane Passo
Ex. 208 Expenses of James Santangelo Showing that he was in Las
Vegas on May 4 to 7, 2000 and May 19 to 20, 2000
Ex. 209 Expenses of James Santangelo Showing that he was in Las
Vegas from July 9 to 12, 2000
Ex. 210 Carlo Scalf's Expense Report and Credit Card Statement
Showing that he was in Las Vegas from July 9 to 12, 2000
Ex. 211 Local 631 Telephone Records: Bill date of July 18, 2000
Ex. 212 Grievance filed Against GES for Suspensions
213 James Hoffa Expense Report and Credit Card Statement for
July and September 2000 Showing that he was in Chicago,
Illinois
Ex. 214 Letter from Martin Frates with telephone records and
Richard Simon's business card
Ex. 215 Document Showing the Dates of the Magic Show between
August and September 2000
Ex. 216 Memorandum of Contact of Special Investigator Raymond
Wren Re Hernandez
Ex. 217 Copy of Tape Recording Made by Roberta Whitfield
Ex. 218 Transcript of Tape Recording Made by Roberta Whitfield
Ex. 219 Grievance filed by Ronald Dudash
Ex. 220 Sworn Examination of Ronald Dudash dated January 31, 2001
Ex. 221 James Hoffa Expense Report and Credit Card Statement for
August 2000 Showing Meals in Las Vegas with Dane Passo,
Ronald Dudash and Vito Locascio
Ex. 222 Martin Frates Letter re Ronald Dudash Grievance
Ex. 223 Charges Filed by Ronald Dudash Against Roberta Whitfield,
Martin Frates and Charles Benboe
Ex. 224 Eddie Jacobson's Letter Dismissing the Charges Filed by
Ronald Dudash
Ex. 225 Schedule of Telephone Cans from Dane Passo's cellular
telephone to Vito Locascic
Ex. 226 Local 631 Wage and Expense e ':,.ecords of Vito Tiocascic
Ex. 227 Sworn Examination of Harold Klein dated January 29, 2001
Ex. 228 Sworn Examination of Frank Incandella dated January 30,
2001
Ex. 229 Schedule Showing Meals Between Dane Passo and Frank
Incandella
Ex. 230 Local 631 Records Showing the Hiring of Frank incandella
Ex. 231 Schedule of Telephone Calls between Dane Passo and Frank
Incandella
Ex. 232 Local 631 Records Showing the Hiring of William Cooper
Ex. 233 Schedule Showing Meals Between Dane Passo and William
Cooper
Ex. 234 Joint Council 25 Minutes for August 22, 2000 Showing the
Hiring of William Cooper
Ex. 235 Dispatch History for Vito Locascio
Ex. 236 Southwest Administrators Records re Vito Locascio
Ex. 237 Local 631 Wage and Expense Records of Wayne King
Ex. 238 Vito Locascio Court Records Showing his Conviction in May
1987
Ex. 239 Local 631 Records Re Hiring of Vito Locascio between
October 14 and November 10, 2000
Ex. 240 DRIVE Reimbursement Check to Local 631 dated February 6,
2001
Ex. 241 List of Participants at Teamster Leadership Academy
between October 2 and 6, 2000
Ex. 242 Article XXII, Section 2(a) of IBT Constitution
Ex. 243 List of Participants at Teamster Leadership Academy
during 1999 and 2000
Ex. 244 List of non-officer/employees Participants at Teamster
Leadership Academy _n 199: and 2000
Ex. 245 Joint Council 25 Minutes of March 9, 2000 Appointing
William T. Hogan as President of the Joint Council
Ex. 246 Documents Showing the Dates of the Unity Conference and
the James R. Hoffa Scholarship Golf Outing
Ex. 247 Sworn Examination of Douglas Manning dated March 28, 2001
Ex. 248 Letter dated February 13, 2001 From TRB to Local 631
Requesting Copies of All Grievances Filed Against GES
After august 1, 2000
Ex. 249 Letter dated February 26, 2001 from Local 631 Responding
to the IRB letter dated February 15, 2001
Ex. 250 Grievances Filed Against GES for Terminations
Ex. 251 Copies of All Grievances Provided
Ex. 252 Article II, Section 4(h) of the IBT Constitution
Ex. 253 Trusteeship Notice for Local 815
Ex. 254 Sworn Examination of George Miranda dated December 9,
1996
Ex. 255 Letter dated April 12, 2001 from George Miranda as
Principal Officer of Local 815
Ex. 256 Local 631 Trustee Reports for May - September 2000
Ex. 257 Letter dated March 16, 2001 from Patrick Szymanski, Esq.,
IBT General Counsel, stating that the IBT has no other
letters addressed to James Wilkerson
Ex. 258 Letter dated November 1, 2000 from IBT to Local 631 re
Dedication of Union Hall
Ex. 259 Local 631 Records Showing that Members Worked on the
Supershow between January 15 and 26, 2001
Ex. 260 Show Biz USA Business Card for Michael Hardy
Ex. 261 Sworn Examination of Milan Dobrijevich dated March 28,
2001
Ex. 262 MAGIC Grievances Re: Four Man Panel
Ex. 263 IRB Sworn -Examination Notices Sent Cut on January I2-,- --
2001
Ex. 264 Local 995-Employer List Showing Bally's as an Employer
Ex. . 265. Local 714 Credit Card Statement for William Hogan B1l_1_ing _.,_,_
Closing date February 28, 2000
Ex. 266 Local 714 Credit Card Statement for William Hogan Billing-, .
Closing date March 29, 2000
Ex. 267 Local 714 Credit Card Statement for William Hogan Billing
Closing date May 30, 2000
Ex. 268 Joint Council 25 Check Voucher No. 38377 dated April 24,
2000
Ex. 269 Joint Council 25 Check Voucher No. 38427 dated May 10,
2000
Ex. 270 Joint Council 25 Check Voucher No. 38434 dated May 19,
2000
271 Joint Council 25 Check Voucher No. 38484 dated June 2,
2000
Ex. 272 Joint Council 25 Check Voucher No. 38504 dated June 7,
2000
Ex. 273 Joint Council 25 Check Voucher No. 38505 dated June 7,
2000
Ex. 274 Joint Council 25 Check Voucher No. 38567 dated July 24,
2000
Ex. 275 Joint Council 25 Check Voucher No. 38645 dated August
2000
Ex. 276 Joint Council 25 Check Voucher No. 38653 dated August 10,
2000
Ex. 277 Joint Council 25 Check Voucher No. 38657 dated August 10,
2000
Ex. 278 Joint Council 25 Check Voucher No. 38748 dated September
6, 2000
Ex. 279 Joint Council 25 Check Voucher No. 38834 dated October
12, 2000
Ex. 280 Joint Ccuncil 25 Check Voucher No. 38952 dated November
8, 2000 _
Ex. 281 Joint Council 25 American Express Statement Closisag Date
December 29, 2000
Ex. 282 Dane Passo Cellular Phone Record fro January 4, 2001
Ex. 283 Dane Passo Cellular Phone Records for Invoices Received
January 6, 2001 - February 5, 2001
Ex. 284 Dane Passo Cellular Phone Records for Invoices Received
February 6, 2001 - March 5, 2001
Ex. 285 Form LM-2 for Local 714 for 1980
Ex. 286 Form LM-2 for Local 714 for 1981
Ex. 287 Form LM-2 for Local 714 for 1982
Ex. 288 Form LM-2 for Local 714 for 1983
Ex. 289 Form LM-2 for Local 714 for 1984
Ex. 290 Form LM-2 for Local 714 for 1985
Ex. 291 Sworn Examination of Robert Hill dated December 19, 2000
Ex. 292 IRB Letter dated December 22, 2000 to the IBT
Ex. 293 Teamsters Organizing Guide
Ex. 294 IRB Investigator Memo of Raymond Wren dated November 27,
2000
Ex. 295 Local 631 Check No. 34146 dated October 20, 2000 Re: Vito
Locascio's Airfare to the Teamster Leadership Academy
Ex. 296 Local 631 Bylaws
Ex. 297 Sworn Examination of Nicole Pollard dated May 14, 2001
Ex. 298 Jacobson Letter to Chief Investigator dated January 26,
2001 via Fax
Ex. 299 Dane Passo sworn examination notice dated December-21,
2000
Ex. 300 Sworn Examination of John Allen dated January 29, 2001
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