July 24, 2024

Officers

Previous President Of The New York Making And Development Trades Council And 10 Other Union Officers Plead Guilty To Accepting Bribes And Illegal Payments | USAO-SDNY

Damian Williams, the United States Legal professional for the Southern District of New York, and Raymond A. Tierney, District Legal professional for Suffolk County, announced today that 11 previous union officers — JAMES CAHILL, former President of the New York State Constructing and Construction Trades Council, CHRISTOPHER KRAFT, PATRICK HILL, MATTHEW NORTON, WILLIAM BRIAN WANGERMAN, KEVIN MCCARRON, JEREMY SHEERAN, a/k/a “Max,” ANDREW MCKEON, ROBERT EGAN, SCOTT ROCHE, and ARTHUR GIPSON — have pled responsible to charges stemming from their acceptance of bribes and unlawful dollars payments from a construction contractor (“Employer-1”) from in or about Oct 2018 to in or about October 2020 although the defendants were being serving as union officers.  MCCARRON and EGAN pled responsible previously right now right before United States District Judge Colleen McMahon to violating the Taft-Hartley Act, and the remaining defendants beforehand pled guilty both to sincere expert services fraud conspiracy or to violating the Taft-Hartley Act.  Every single defendant has or will be sentenced by Judge McMahon in Manhattan federal court docket.

U.S. Legal professional Damian Williams mentioned: “The defendants exploited their union positions and difficult-performing union associates to feed their own greed.  They recognized bribes to corruptly favor non-union companies and influence the construction trade in New York.  The convictions in this scenario replicate our continuing commitment to root out corruption and deliver to justice people who abuse positions of electricity out of private greed.  I thank the Suffolk County District Attorney’s Business for their partnership in this circumstance.” 

Suffolk County District Attorney Raymond A. Tierney claimed: “These convictions spotlight a shocking level of corruption between strong labor officers in New York Condition.  Through their greed and self-working, these defendants betrayed the tricky-doing work members of their respective unions, and undermined the protections meant to be afforded by arranged labor.  While their customers ended up executing tricky function at job web-sites all over the location, these defendants bought out their membership by accepting bribes and income payments in restaurant loos.  My Place of work will carry on to uncover and prosecute corruption of all varieties, which includes that committed by union officers.  I would like to thank the U.S. Attorney's Workplace for the Southern District of New York for partnering with my Office environment on these scenarios, and for bringing these prosecutions to a profitable summary."

According to the allegations in the Indictment, statements produced in court, and court docket filings:

JAMES CAHILL was the President of the New York State Developing and Construction Trades Council (the “NYS Trades Council”), which signifies around 200,000 unionized development workers, a member of the Government Council for the New York State American Federation of Labor and Congress of Industrial Companies (the “NYS AFL-CIO”), and previously a union agent of the United Affiliation of Journeymen and Apprentices of the Plumbing and Pipefitting Market of the United States and Canada (the “UA”).  During the charged conspiracy, CAHILL acknowledged approximately $44,500 in bribes from Employer-1, and as element of his guilty plea, CAHILL acknowledged getting previously acknowledged at the very least close to $100,000 of additional bribes from Employer-1 in relationship with CAHILL’s union positions.

KRAFT, HILL, NORTON, WANGERMAN, MCCARRON, SHEERAN, and MCKEON were being Business Agents, EGAN was the Secretary-Treasurer, and ROCHE was the Business Agent At Huge of the Community 638 of the UA (“Local 638”).  GIPSON was a Company Agent of the Local Union 200 of the UA (“Local 200”).  Every of these defendants acknowledged 1000's and, in some conditions, tens of 1000's of dollars of income bribes from Employer-1, a contractor who had jobs and possible assignments within the jurisdiction of Regional 638 and Local 200.

All 11 defendants accepted money from Employer-1 — typically stuffed in envelopes that Employer-1 handed off inside of the restrooms of dining places.  All through the conferences at which the payments have been made, Employer-1 repeatedly asked for favorable action from Area 638 and/or Community 200 like the following: (1) that the appropriate union would aid Employer-1’s bids on several jobs, (2) that the union would consider signing Employer-1 to labor agreements that Employer-1 regarded to be favorable (which include agreements that would shell out union workers lessen prices than their knowledge merited), and (3) that the union would permit Employer-1 to falsely assert to developers that Employer-1 employed union personnel.  JAMES CAHILL was the leader of the conspiracy and introduced Employer-1 to lots of of the other defendants, when advising Employer-1 that Employer-1 could experience the positive aspects of remaining associated with the unions without the need of truly signing union agreements or using union workers. 

Employer-1 contracted to operate on — or would bid on — tasks that could have otherwise used union personnel belonging to Nearby 638 and/or Nearby 200.  At the time Employer-1 was bribing the defendants, Employer-1’s organization used staff who had been not members of Local 638 and/or Local 200 but would have been suitable for membership.

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A chart containing the names, offenses of conviction, most penalties for the defendants, and sentencing dates for each individual is set forth underneath.  The greatest opportunity sentences in this situation are prescribed by Congress and are provided below for informational needs only, as any sentencing of the defendants will be established by the choose.

Mr. Williams praised the fantastic investigative operate of the Specific Agents and investigators inside the U.S. Attorney’s Business office for the Southern District of New York and the Suffolk County District Attorney’s Place of work.

This case is remaining taken care of by the Office’s Violent and Structured Crime Unit and the Public Corruption Device.  Assistant U.S. Lawyers Frank J. Balsamello, Marguerite Colson, Danielle Sassoon, Jason Swergold, and Jun Xiang, and Particular Assistant U.S. Attorney Laura de Oliveira, are in demand of the prosecution.

Defendant

Offense of Conviction

Max. Penalty

Day of Sentencing

JAMES CAHILL

Honest Companies Fraud Conspiracy

 

20 yrs in prison

March 7, 2023, at 4:00 p.m.

CHRISTOPHER KRAFT

Trustworthy Companies Fraud Conspiracy

 

20 several years in prison

December 12, 2022, at 4:00 p.m.

PATRICK HILL

Truthful Services Fraud Conspiracy

 

20 years in prison

December 19, 2022, at 2:00 p.m.

MATTHEW NORTON

Taft-Hartley Act Violation (Felony)

 

Five several years in prison

December 13, 2022, at 11:00 a.m.

WILLIAM BRIAN WANGERMAN

Taft-Hartley Act Violation (Felony)

 

5 a long time in prison

January 30, 2023, at 4:00 p.m.

KEVIN MCCARRON

Taft-Hartley Act Violation (Misdemeanor)

 

12 months

in jail

March 14, 2023, at 2:00 p.m.

JEREMY SHEERAN

Taft-Hartley Act Violation (Felony)

 

Five years in prison

January 13, 2023, at 2:00 p.m.

ANDREW MCKEON

Taft-Hartley Act Violation (Felony)

 

Five decades in jail

January 18, 2023, at 2:00 p.m.

ROBERT EGAN

Taft-Hartley Act Violation (Felony)

 

Five many years in jail

March 14, 2023, at 12:00p.m.

SCOTT ROCHE

Taft-Hartley Act Violation (Misdemeanor)

 

12 months

in prison

Sentenced on December 6, 2022, to two years’ probation and $10,000 fine

ARTHUR GIPSON

Taft-Hartley Act Violation (Felony)

 

5 several years in prison

March 9, 2023, at 2:30 p.m.