Massachusetts Unions Officials Sentenced On Pension and Labor Crimes
July 7, 1998, Tuesday
July 7, 1998--Two high union officers of the Boston Laborers' Union, father and son, who last month made restitution of $90,000 to ERISA plans and funds in compliance with plea agreements with the United States Attorney's Office, were sentenced yesterday in federal court on criminal offenses arising from violations of pension and labor laws.
United States Attorney Donald K. Stern announced that U.S. District Judge Richard G. Stearns sentenced JOSEPH P. MANDARINI, 39, of 9 Albion Street in Medford, to four months' in community confinement in a half-way house, to be followed by four-months' home detention and two years of supervised release.
JOSEPH P. MANDARINI, who resigned last month as the Field Representative of Laborers' International Union of North America Local 22 ("Local 22"), admitted to making false statements in violation of the Employee Retirement Income Security Act (ERISA).
Last month, JOSEPH P. MANDARINI made restitution of $45,170 to the Laborers' Local 22 ERISA Funds and Plans. He has also agreed to periods of debarment from ERISA and union office positions.
Judge Stearns also sentenced LOUIS A. MANDARINI, SR., 69, of 24 Emily Lane, Peabody, Massachusetts, for failing to file financial disclosure documents required by the Labor Management Reporting and Disclosure Act.
LOUIS MANDARINI was sentenced to one year of probation, and a $250 fine. He made restitution last month of $44,830 to the Laborers' Local 22 ERISA Funds and Plans. He will also be debarred from ERISA and union office positions.
At the hearing, Assistant U.S Attorney Gary S. Katzmann noted that the prosecution of pension and retirement fraud was a priority of the U.S. Department of Justice and the U.S. Department of Labor, and that the parties in their joint recommendation had sought to fashion an agreement which resulted in full restitution to the victims of the MANDARINIS' criminal activity.
Katzmann stated that the Laborers' Local 22 ERISA Funds and Plans had informed the government that the combined payment of $90,000 by the MANDARINIS had satisfied the existing delinquencies by the MANDARINIS to the Funds and Plans.
In accepting the sentencing recommendations put forth by the parties, Judge Stearns stated that in his view the government and defense counsel had presented to the court a sentencing proposal which was both reasonable and faithful to the interests of all concerned. At the sentencing hearing, the prosecutor stated that the evidence established premeditated and deliberate conduct.
The evidence showed the following: JOSEPH P. MANDARINI and other family members, owned a business, M.J.M Asbestos Abatement Inc., which employed members of Local 22.
JOSEPH P. MANDARINI was the President and Treasurer of MJM.
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.
When a collection agent retained by the Massachusetts Laborers Funds to collect the delinquent payments met with JOSEPH P. MANDARINI, in order to ascertain the assets of MJM, JOSEPH P. MANDARINI presented a false document.
In this false document, JOSEPH P. MANDARINI represented that the accounts receivables for MJM amounted to $11,544.82, when in fact, JOSEPH P. MANDARINI knew that MJM had additional accounts receivable in excess of $90,000.
Several days after meeting with the Laborers' collection agent, JOSEPH P. MANDARINI opened up a bank account, not disclosed to the agent of the Funds, in which more than $90,000 in accounts receivable were deposited during the following months.
The evidence established that JOSEPH P. MANDARINI paid $45,170 in checks out of this undisclosed account to members of his family, including himself and his father.
Moreover, 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.
The cases were prosecuted by Assistant U.S. Attorney Gary S. Katzmann, of Stern's Organized Crime Strike Force Unit, and were investigated by 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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