Local 806 Trustee Joel LeFevre Members of the Independent Review Board Proposed Charges Against Local 806 Member Albert DeStefano Date: March 23, 2000
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1 To: From: Re: Local 806 Trustee Joel LeFevre Members of the Independent Review Board Proposed Charges Against Local 806 Member Albert DeStefano : March 23, 2000 I. RECOMMENDATION The Independent Review Board ("IRB") refers the below report to the Local 806 Trustee for the purpose of filing a charge against Local 806 member and former Business Representative Albert DeStefano ("DeStefano") for failure to cooperate with the IRB by refusing to appear for his sworn examination on November 18, By this conduct, it appears that while an IBT member DeStefano violated Article II, Section 2(a) and Article XIX, Sections 7 (b)(1) and (2) and Section 14(i) of the IBT Constitution by obstructing, interfering and unreasonably failing to cooperate with the duties of the IRB as set forth in Paragraph G of the March 14, 1989 Consent Decree in United States v. International Bhd. of Teamsters. 88 Civ (S.D.N.Y. 1989). II. INVESTIGATIVE FINDINGS A. Background On February 24, 2 000, the IRB forwarded a report to the IBT General President with respect to Local 806 (the "IRB Report"). imposed. The IRB Report recommended that a trusteeship be Among other things, the IRB Report reflected that Local 806 had negotiated and entered into sham collective bargaining
2 agreements with certain employers. As set forth in the IRB Report, the sworn testimony and Local records established that Local 806 improperly allowed a business representative to sign collective bargaining agreements on behalf of the Local. Specifically, the evidence reflected that DeStefano, while a business representative of Local 806, signed collective bargaining agreements with Brookhaven Memorial Hospital (two contracts), Downtown Athletic Club, Eastern Steel and Eastern Bridle Co., Champion Cadillac, Hunts Point Terminal Produce Cooperative Association, Inc., Mormax Company, Peter Steuerwalt Inc. and Cerina Construction Corp. on the Local's behalf. (Exs. 1-8). The Local 806 Bylaws did not authorize a business representative to sign collective bargaining agreements on behalf of the Local. On March 3, 2000, IBT General President James P. Hoffa placed Local 806 in trusteeship and appointed Joel LeFevre, Secretary-Treasurer of Local 840, as Trustee. (Ex. 9). B. Albert DeStefano In September 1999 Local 806 records reflected that DeStefano was a current member. (Ex. 10). In his sworn IRB examination, former Local 806 President and principal officer Donald Calagna ("Calagna") testified that DeStefano was a former business representative and that Local 806 no longer employed DeStefano. (Ex. 11 at 56). Calagna testified DeStefano had worked as one of two Local 806 business representatives (Calagna was the other one) from approximately September 1996 through
3 December 1997, and then worked exclusively for the Local's funds until January (Id.). The Local 806 Form LM-2s for 1996 and 1997 listed DeStefano as a Local 806 business representative. The Local 806 LM-2 for 1998 did not list DeStefano as an employee of Local 806 in any capacity. (Exs. 12, 13 and 14). On November 5, 1999, a notice of sworn examination was sent to DeStefano at 1027 Car11 Drive, West Bay Shore, New York (Ex. 15). This notice advised DeStefano that his sworn examination was scheduled for 12:00 p.m. on November 18, At this examination, the Chief Investigator planned to question DeStefano about his Local 806 membership, his duties as a business representative, the collective bargaining agreements he signed on behalf of Local 806, with whom he negotiated the agreements, who authorized him to sign collective bargaining agreements on behalf of the Local, whether the Local enforced the terms of the agreements and whether he had any contact with any organized crime figures. The green certified return card reflected receipt of the envelope containing the notice by DeStefano on November 6, (Ex. 16). Without explanation, on November 18, 1999, DeStefano failed to appear for his sworn examination. (Ex. 17). On February 3, 2 000, a Special Investigator of the Chief Investigator's Office telephoned DeStefano at his home telephone number, (631) Special Investigator James Reilly left a recorded message on DeStefano's answering machine identifying himself as an IRB investigator and requesting that
4 DeStefano contact him at the Chief Investigator's Office regarding his failure to appear at his scheduled examination. As of the date of this Report, DeStefano has not contacted the Chief Investigator's Office. (Ex. 18). III. JURISDICTION Pursuant to Article XIX, Section 14(c)(1) of the IBT Constitution, this disciplinary matter is within the jurisdiction of the Local 806 Trustee. Paragraph G(e) of the March 14, 1989 Consent Decree in United States v. International Bhd. of Teamsters. 88 Civ (S.D.N.Y.) and Paragraph 1(6) of the court-approved Rules and Procedures for the Operation of the IRB (the "IRB Rules") require that within 90 days of the IRB's referral of a matter to an IBT entity, that IBT entity must file with the IRB written findings setting forth the specific action taken and the reasons for that action. Pursuant to Paragraph 1(9) of the IRB Rules, not meeting this deadline may be considered a failure to cooperate with the IRB. IV. PROPOSED CHARGE Based upon the foregoing, it is recommended that the Local 806 Trustee charge Albert DeStefano as follows: While a member of Local 806 and the IBT, you brought reproach upon the IBT in violation of Article II, Section 2(a) and Article XIX, Sections 7 (b)(1) and (2) and Section 14(i) of the IBT Constitution and obstructed, interfered and unreasonably failed to cooperate with the duties of the Independent Review Board as set forth in Paragraph G of the March 14, 1989 Consent
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6 EXHIBITS ACCOMPANYING REPORT CONCERNING ALBERT DESTEFANO Exhibit No. Ex. 1 Ex. 2 EX. 3 EX. 4 EX. 5 Ex. 6 EX. 7 Ex. 8 EX. 9 EX. 10 EX. 11 EX. 12 EX. 13 EX. 14 EX. 15 Description Excerpt from Collective Bargaining Agreements between Local 806 and Brookhaven Memorial Hospital Collective bargaining agreement between Local 806 and Downtown Athletic Club Collective bargaining agreement between Local 806 and Eastern Steel and Eastern Bridle Co. Excerpt from Collective Bargaining Agreement between Local 806 and Champion Cadillac Excerpt from Collective Bargaining Agreement between Local 806 and Hunts Points Terminal Produce Cooperative Association, Inc. Excerpt from Collective Bargaining Agreement between Local 806 and Mormax Company Excerpt from Collective Bargaining Agreement between Local 806 and Peter Steuerwalt, Inc. Excerpt from Collective Bargaining Agreement between Local 806 and Cerina Construction Corp. Notice of Imposition of Local 806 Trusteeship dated March 3, 2000 and letters concerning appointment Local 806 Membership Roster concerning Albert DeStefano Transcript of sworn examination of former Local 806 President Donald Calagna dated November 19, 1999 Form LM-2, Labor Organization Annual Report for Local Union 806 for 1996 Form LM-2, Labor Organization Annual Report for Local Union 806 for 1997 Form LM-2, Labor Organization Annual Report for Local Union 806 for 1998 November 5, 1999 Notice of Examination to Albert DeStefano
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8 3-2-:t-00 Tl'E 10:42 FAX IBT LEK.-iL DEFT INTERNATIONAL BROTHERHOOD OF TEAMSTERS AFL-CIO LEGAL DEPARTMENT August 29, 2000 VIA FACSIMILE Mr, John J. Cronin, Jr. Administrator Independent Review Board 444 North Capitol Street, N.W., Suite 528 Washington, D.C Dear Mr. Cronin: Set forth below is a brief status report reflecting our most current data concerning pending charges that were referred to our office. J. P. Potter - (Local 19 President) - Charges were referred to the IBT. After a hearing and recommendation by Joint Council 80, the General President issued a decision on November 2,1999, On February 17, 2000, the Board found the General President's decision inadequate. The General President responded to the Board's finding on March 16. The IRB then assumed jurisdiction over the case. Potter's case is currently pending before the Board. By letter dated July 27, 2000, we were advised absent a settlement, a hearing has been rescheduled for August 30 and Thomas R. O'DonneH - (Local 817 President) - The General Secretary- Treasurer issued a decision in this matter on November 1, On January 4, the ERB found the decision inadequate. The General Secretary-Treasurer responded on January 21, The Board found this supplemental decision inadequate on February 3, and held a de novo hearing on May 22, The matter is pending with the Board. ^Albert DeStefano - (Local 806) - The General President issued a decision ^J in this matter on June 21, On July 11, 2000, the Board found the ^General President's decision not inadequate. O! A1UCMM4 a I/PMIIF M W WASHINGTON D.C (202)
9 INTERNATIONAL BROTHERHOOD OF TEAMSTERS AFL-CIO OFFICE OF JAMES P. HOFFA GENERAL PRESIDENT June 21, 2000 Mr. Albert DeStefano 1027 Carll Drive W. Bayshore, New York Re: Panel Report and Recommendations Dear Sir and Brother: You will find enclosed the report and recommendations of the Panel which conducted the hearings on the charges filed against you. I have had the opportunity to review the Panel's findings and conclusions, and hereby adopt them as my own. The Panel's recommendation is reissued as the decision of the General President. Fraternally yours, JPH/ndb Enclosure cc: John J. Cronin Jr., Administrator, Independent Review Board 25 LOUISIANA AVENUE, N.W. WASHINGTON, D.C (202)
10 BEFORE A HEARING PANEL APPOINTED BY THE INTERNATIONAL UNION JOEL LEFEVRE Charging Member v. ALBERT DESTEFANO Charged Member I. The Charge This matter arises from the March 23, 2000, charge referred by the Independent Review Board ("IRB") to the Trustee of Local 806, IBT (Local 806), Joel LeFevre ("Trustee LeFevre" or the "charging party"), pursuant to Article XIX of the IBT Constitution, against former Local 806 member and Business Representative Albert DeStefano. The IRB charge which was referred to Trustee LeFevre alleges as follows: While a member of Local 806 and the IBT, you brought reproach upon the IBT in violation of Article II, Section 2(a) and Article XIX, Sections 7(b)(1) and (2) and Section 14(i) of the IBT Constitution and obstructed, interfered and unreasonably failed to cooperate with the duties of the Independent Review Board as set forth in Paragraph G of the March 14,1989 Consent Decree in United States v. International Bhd. of Teamsters, 88 Civ (S.D.N.Y. 1989), to wit: On November 18, 1999, you willfully and without justification refused to appear for your sworn in person examination pursuant to Paragraph H.3(c) of the Rules and Procedures for Operation of the Independent Review Board for the International Brotherhood of Teamsters.
11 II. The Panel Hearing The hearing on these charges was held on May 10, 2000, in Garden City, New York before an Article XIX hearing panel appointed by the IBT General President. The hearing panel consisted of Ernie Soehl, Nicholas Piccarello and Dave Lucas. Despite receiving proper notice of the hearing, the charged party failed to appear to present a defense to the charges. In addition, DeStefano provided no explanation, by letter or otherwise, for his failure to appear before the panel. By failing to appear for his sworn examination before the IRB investigation and by failing to appear before the panel, DeStefano has obstructed, interfered and unreasonably failed to cooperate with the duties of the IRB as set forth in Paragraph G of the March 14, 1989, Consent Decree. As a result of this conduct, DeStefano may not contest the evidence of the charges against him. III. Recommended Penalty As a result of the aforesaid violations and conduct, the panel recommends that Albert DeStefano be expelled from membership in the Union; permanently barred from participating in the affairs of the Union; permanently barred from holding union office; permanently barred from contracting with, seeking or holding office or employment with Local 806, the IBT or any other IBT affiliate or its sponsored employee benefit plan; permanently barred from seeking or accepting money or other compensation for any goods and services from Local 806, the IBT or any other IBT affiliate or IBT sponsored employee benefit plan other than receipt of vested benefits to which he may otherwise lawfully be entitled by reason of prior participation in an IBT sponsored benefit plan or plans. In addition, DeStefano is prohibited from having any contributions made on his behalf to any IBT-affiliated benefit funds by Local 806 or any other IBT-affiliated entities. 2
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13 Ernie Soehl, Chairman Nicholas Piccarello Dave Lucas 3
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