Business Editors and Legal Writers
Massachusetts Union Officials Charged With Pension and Labor Crimes
April 13, 1998, Monday
BOSTON....April 13, 1998--Two high union officers of the Boston Laborers' Union were charged today in federal court with criminal offenses arising from violations of pension and labor laws.
The cases are part of an ongoing initiative by the U.S. Attorney's Office, other components of the Department of Justice, the Department of Labor, and other agencies, designed to protect the pension and retirement benefits of all citizens.
United States Attorney Donald K. Stern announced that JOSEPH P. MANDARINI, 39, of 9 Albion Street, Medford, and his father, LOUIS A. MANDARINI, SR., 69, of 24 Emily Lane, Peabody, were charged respectively, in a criminal information with making false statements in violation of the Employee Retirement Income Security Act (ERISA), and with failing to file financial disclosure documents required by the Labor Management Reporting and Disclosure Act.
JOSEPH MANDARINI is currently the Sergeant-At-Arms of Laborers' International Union of North America Local 22 ("Local 22"), and LOUIS A. MANDARINI, SR., is the Business Manager of Local 22 and Chairman of the Board of Trustees of the Massachusetts Laborers' Pension Fund.
The criminal information charges that JOSEPH MANDARINI, and other family members, owned a business, MJM Asbestos Abatement, Inc., which employed members of Local 22. JOSEPH P. MANDARINI was the President and Treasurer of MJM.
The information further charges that in April 1993, the Massachusetts Laborers Funds determined that MJM, a wholly owned Mandarini business, had not paid approximately $120,000 in pension, health and welfare, and other ERISA benefits which MJM was obligated to pay to members of Local 22 under collective bargaining agreements.
The information further charges that when a collection agent retained by the Massachusetts Laborers Funds to collect the delinquent payments met with JOSEPH MANDARINI, in order to ascertain the assets of MJM, JOSEPH MANDARINI presented a false document.
In this false document, JOSEPH MANDARINI represented that the accounts receivables for MJM amounts to $11,544.82, when in fact, JOSEPH MANDARINI knew that MJM had additional accounts receivable in excess of $90,000.
The criminal information also charges that LOUIS A. MANDARINI, SR. failed to file with the U.S. Department of Labor annual reports which obligated him, as an officer of Local 22, to list his financial transactions with MJM, and his wife's ownership interest in MJM.
JOSEPH MANDARINI faces five years' imprisonment, fines, and debarment from ERISA positions. LOUIS MANDARINI, SR. faces one year's imprisonment, and fines. The defendants also face debarment from ERISA and union office positions, and restitution to the ERISA funds.
A court document filed with the Information revealed that the court will be asked to consider plea agreements under which the defendants will be sentenced under the Sentencing
Guidelines, and under which the defendants will make restitution by April 25, 1998 to the Union ERISA funds and plans for any outstanding balance in the sum of $90,000 owed by MJM Asbestos Abatement, Inc. and MJM Environmental, Inc.
The cases are being prosecuted by Assistant U.S. Attorney Gary S. Katzmann, of Stern's Organized Crime Strike Force Unit, and are being investigated by the the U.S. Department of Labor's Division of Labor Racketeering, the Pension and Welfare Benefits Administration, and the Office of Labor Management Standards.
CONTACT: U.S. Attorney's Office
Amy Rindskopf, (617) 223-9445
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