Members of Local 282 Executive Board. The Independent Review Board. Proposed Charges Against Local 282 Member Anthony Sainato Date: May 24, 2001

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1 To: From: Re: Members of Local 282 Executive Board Members of the Independent Review Board Proposed Charges Against Local 282 Member Anthony Sainato Date: May 24, 2001 I. RECOMMENDATION The Independent Review Board ("IRB") refers the below report to the Local 282 Executive Board and recommends the filing charges against Local 282 member Anthony Sainato ("Sainato") for failing to cooperate with the IRB by refusing to answer at least sixty guestions during his sworn examination on May 8, 2001 concerning his association with individuals publicly identified as either members or associates of the Columbo La Cosa Nostra ("LCN") Family. By his actions, it appears that, while an IBT member, Sainato violated Article II, Section 2(a) and Article XIX, Section 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 Brotherhood of Teamsters, 88 Civ (S.D.N.Y.) ("Consent Decree"). II. JURISDICTION Pursuant to Article XIX, Section 14(c) of the IBT Constitution, this disciplinary matter is within the jurisdiction of the Local 282 Executive Board. Paragraph G(e) of the March 14,

2 1989 Consent Decree in "niter!-stgj^g. v-^lnternational Brotherhood of Teamsters, 88 Civ (S.D.N.Y.) and Paragraph 1(6) of the Rules and Procedures for Operation of the Independent Review Board ("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. III. BACKGROUND A. Anthony Sainato Sainato (born October 13, 1943) was a Local 282 member who last paid his union dues in November (Ex. 1; Ex. 2 at 5) Local 282 records listed Sainato as a member employed at Max Tec Construction Corporation, 1 Wilson Lane, Bayville, New York. (Ex. 3) As of May 8, 2001, Sainato had neither requested nor received a withdrawal card from Local 282. (Ex. 2 at 5) Sainato became an IBT member in March 1961 when he joined Local 816. In the late 1980's Local 816 merged with Local 868. (Ex. 4 at 3-4) In June 1998, Local 868 merged into Local 917. (Ex. 5 at 3) In 1999 Sainato transferred from Local 917 to Local 282. (Ex. 1) B. Sainato's Criminal History On December 9, 1999, Sainato and his brother, Vincent Sainato, were indicted in the United States Federal Court in the Eastern District of New York on charges of Conspiracy to Impede the

3 IRS in the Collection of Tax Revenue, Corporate Income Tax Evasion, Aiding the Filing of a False Corporate Tax Return and Filing a False Corporate Tax Return. The indictment detailed Anthony and Vincent Sainato's ownership and operation of approximately eleven companies in the construction and trucking industry including Suffolk Alpa, dba Suffolk Distributing, and tax frauds committed by the Sainatos in connection with these companies. (Ex. 6) On April 27, 2000, a jury returned a verdict of guilty on five of the six counts against Sainato. On March 2, 2001, United States District Court Judge Arthur Spatt sentenced Sainato to six years imprisonment. Sainato was scheduled to surrender for the service of his sentence on May 15, (Ex. 7) On April 25, 2001 the United States Attorney's Office, Eastern District of New York, released an indictment that charged Sainato, Joseph Anemone, Ronald Califano, Frank Campanella, John J. Deross ("Deross"), Dominick Dionisio, Michael T. Donato, Ralph Jude Guiccone, Enrico Locasio, Enrico Monteperto, Christopher Mormando, Alphonse E. Persico ("Persico"), Joseph Anthony Petillo, Paolu Rizzuto, Vito Salerno and Silvio Salome with racketeering, embezzlement, mail fraud and extortion. (Ex. 9) The indictment identified Persico at various times as a captain and acting boss of the Columbo LCN Family. (Ex. 9 at 4) The Permanent Subcommittee on Investigations in their report, Organized Crime: 25 Years After Valachi identified Persico as a Columbo LCN family member. (Ex. 8) The indictment identified Deross as an underboss in the Columbo Family. (Ex. 9 at 4-5) Anemone, Califano, Campanella, Dionisio,

4 Donato, Guccione, Locasio, Monteperto, Mormando, Petillo, Rizzuto and Salome were named as Columbo Family associates. (Ex. 9 at 4) The indictment named Sainato and Campanella as Columbo associates who jointly operated and managed a trucking company, Suffolk Alpa. (Ex. 9 at 6-7) The indictment charged among other things that Sainato and Campanella conspired to embezzle and defraud funds from non-teamster Local 4 00 by lying about the correct number of employees who worked at the company. The indictment further identified Campanella as a member of the crew of Columbo LCN captain William Cutolo ("Cutolo"). Cutolo who disappeared on May 26, 1999 (Ex. 9 at 5) was a former Local 861 member and principal officer. In a 1990 decision, the Independent Administrator permanently barred Cutolo from the IBT for being a member of organized crime. (Ex. 10 at 32-35) C. Local 282*s Organized Crime History Local 282 represents building material Teamsters in New York, New York. IBT Local 282 was historically dominated by organized crime. (Ex. 11) Its past officials were closely associated with or controlled by members of La Cosa Nostra for decades. For example, John O'Rourke, President of Local 282 from was closely associated with Luchese Family member John "Johnny Dio" Dioguardi and Anthony "Tony Ducks" Corallo. From , Local 282's President was John Cody, a close associate of the Gambino Crime Family. (Ex. 11) Cody was convicted of operating Local 282 as a racketeering enterprise through extortion, kickbacks

5 and bribery. (Ex. 12) In 1991, Salvatore Gravano ("Gravano"), an admitted member and the Underboss of the Gambino LCN Family, detailed the organized crime control over Local 282. (Ex. 11) Gravano acknowledged that John Gotti, then the boss of the Gambino Family, appointed him to control Local 282 for the Gambino Family. (Ex. 11) Gravano informed the government about an illegal payoff scheme involving Local 282 and the Gambino Family. Under the scheme, Local 282 officials were directed by Gravano to demand illegal payoffs from contractors who employed Local 282 members. Contractors were forced to pay to ensure union cooperation and to gain special favors from the union such as having no foreman on a job to enforce work rules. (Ex. 11) LCN member Gravano reported that he had a close relationship with Local 282 officers including former Local 282 President Robert Sasso ("Sasso") and former Secretary-Treasurer Michael Carbone ("Carbone"). According to Gravano, Sasso and Carbone were Gambino Crime Family associates. Gravano further advised that when employer payoffs were generated in Local 282, he would receive money from either Sasso or Carbone. If a Local 282 officer or business agent other than Carbone received a payoff, that individual ordinarily shared it with Sasso. (Ex. 11) According to evidence presented at John Gotti's 1992 trial, Gotti personally received more than $1 million a year in racketeering proceeds from Local 282. (Ex. 13) In December 1991, the Investigations Officer charged Sasso and Carbone with knowingly associating with members of organized crime and failing to investigate former Local 282

6 President Cody's ties to organized crime. 1 In August 1992, Sasso and Carbone signed agreements with the Investigation's Officer permanently resigning from the IBT and all of their IBT positions. (Exs. 14 and 15) In July 1993, the current and former Local 282 officials Sasso, Carbone, Michael Bourgal ("Bourgal"), John Probeyahn ("Probeyahn") and Joseph Matarazzo ("Matarazzo"), a former Local 282 business agent, were indicted by a federal grand jury empaneled in the Eastern District of New York for labor racketeering in violation of Title 18 U.S.C. Section 1962 (d). (Ex. 16) Bourgal replaced Sasso in 1992 as Local 282 President following Sasso*s resignation while Probeyahn replaced Carbone as Secretary- Treasurer. All four men entered guilty pleas to racketeering charges. In 199 6, Probeyahn and Bourgal both entered into agreements with the IRB permanently resigning from the IBT to resolve the September 13, 1995 IRB recommended charges that both men engaged in labor racketeering and committed perjury when testifying before the Investigations Officer. (Ex. 17; Ex. 18) Since 1991, 24 Local 282 members have been either permanently barred by the IRB or permanently resigned from the Local pursuant to an agreement with the IRB. Thirteen of these members were barred for knowingly associating with members of organized crime; five members were barred for knowingly associating with a barred member; four members were barred for failing to cooperate with the IRB and two members were barred for extorting In 1982, Cody was convicted of racketeering and sentenced to 17 years imprisonment. (Ex. 12)

7 payments to keep labor peace. (Exs 14,15) (Ex.s 17,18,19) (Ex. 28 through 41) In 1995, Local 282 was placed in government trusteeship as a result of a civil RICO complaint filed against the Local. (Ex. 20) This complaint detailed the Gambino LCN Family's influence over Local 282's Executive Board and their receipt, either through Local 282 officers and members or directly from employers and companies in the industry doing business with Local 282, of proceeds from racketeering acts involving Local 282 officers, employees and members. IV. INVESTIGATIVE FINDINGS A. Sainato's November 4, 1996 IRB Sworn Examination At a November 4, 1996 sworn examination, Sainato testified that he worked with Campanella at Suffolk Distributors ("Suffolk"). (Ex. 4 at 34-35) Sainato claimed that he was a truck dispatcher. (Ex. 2 at 7) Sainato denied that he owned or operated the company and claimed his mother owned the company. Sainato testified that Campanella was previously employed at Marietta Trucking, which Sainato's mother owned and was located in Long Island City on 48th Street in the same trailer as Suffolk Distributors. Marietta Trucking was part of the tax evasion scheme for which Sainato was convicted. Campanella was a Local 4 00 steward at Marietta. (Ex. 4 at 34-37; Exs. 6 and 7)) According to a 1997 Local 400 LM-3, Cutolo was a Vice President for non-ibt Local 400. (Ex 21) Cutolo who disappeared on May 26, 1999 was a former Local 861 member and

8 principal officer. (Ex. 9 at 5) In a 1990 decision, the Independent Administrator permanently barred Cutolo from the IBT for being a member of organized crime. (Ex. 10 at 32-33,36) Sainato testified that he occasionally met with Cutolo because of Cutolo's position in Local 400. Sainato, the then dispatcher at Suffolk, claimed that Cutolo met with him in order to gain more work for Local 400 drivers. (Ex. 4 at 53-56) B. Sainato's May 8, IRB Sworn Examination On May 8, 2001, Sainato appeared for his sworn examination. (Exs. 2 and 22) During this examination, Sainato asserted his Fifth Amendment privilege against self-incrimination (Exs. 3 and 23) and refused to answer at least sixty guestions. (Ex. 2 at 7-20) Sainato asserted his Fifth Amendment privilege and refused to answer whether he knew or had met Cutolo or had any discussions with Cutolo in the past five years. (Ex. 2 at 19) Sainato further refused to answer guestions regarding Suffolk Alpa, Marietta Trucking, his place of employment or his membership in Teamster Local's 917 and Local 282. (Ex. 2 at 7-20) Finally, when asked to review a 45 page list of names and identify any individuals on the list with whom he had associated, Sainato asserted his Fifth Amendment privilege and refused to answer whether he had associated with any individuals on the list. (Ex. 24) (Ex. 2 at 16-17) Pursuant to Paragraph G (a) of the March 14, 1989 Consent Order in United States v. International Brotherhood of Teamsters, 88 Civ (S.D.N.Y.), allegations of, organized crime

9 associations and corruption are specifically within the IRB's investigative authority. After being informed that his refusal to answer questions at his sworn examination could result in internal union disciplinary charges being filed against him for failing to cooperate with the IRB, Sainato in the presence of his attorney, Roger Adler, Esq., persisted in his refusal to answer questions posed by the Chief Investigator including his association with individuals identified as Colombo LCN Family members and associates and allegations of his involvement in labor racketeering. (Ex. 2 at 7-8, 14-15) V. ANALYSIS provides: Article XIX, Section 14 (i) of the IBT Constitution All officers, members, employees, and representatives of the International Union and its affiliated bodies shall cooperate fully with the Independent Review Board in the course of any investigation or proceeding undertaken by it. Unreasonable failure to cooperate with the Review Board shall be deemed to be conduct which brings reproach upon the Union, and which is thereby within the Review Board's investigatory and decisional authority. In prior cases under the Consent Decree, charges have been upheld against union members who asserted their Fifth Amendment privilege and refused to answer questions during their sworn examinations. United States v. IBT [Calagna], 1991 U.S. Dist. LEXIS (August 14, 1991); Joint Council 16 Decision regarding

10 Vincent Feola dated November 17, 1998; see, United States v. IBT [Hickey], 945 F. Supp. 96 (S.D.N.Y. 1996). 2 In its November 17, 1998 decision permanently barring Local 813 member Vincent Feola for failing to answer two guestions posed in an IRB sworn examination, the Joint Council 16 wrote: It is then axiomatic that an unreasonable failure to answer guestions at an IRB conducted examination [deposition] violates, inter alia. Article XIX, Section 14 (i) of the IBT Constitution. Moreover, a refusal to answer guestions at an IRB sworn examination through an assertion of the Fifth Amendment privilege does not shield the member from discipline. The IRB and its Chief Investigator are not state actors. United States v. IBT [Simpson], 931 F. Supp (S.D.N.Y. 1996) aff'd f 120 F.3d 341 (2d Cir. 1997). In rejecting an IBT member's application for a stay of a sworn examination on Fifth Amendment grounds, District Judge David N. Edelstein stated, [b]ecause the actions of the IRB and its Investigations Officer do not constitute state action, the Fifth Amendment privilege against self-incrimination is inapplicable to Hickey as a defense against appearing before the Investigations Officer. Moreover, should Hickey elect to invoke the Fifth Amendment during his sworn examination before the Investigations Officer, this invocation will expose him to charges of bringing reproach upon the union for obstructing the IRB 1 s and the Investigations Officer's investigation and endanger his status as a member of the IBT. United States v. IBT [Hickey] f 945 F. Supp. at 99. By refusing to answer the above-described guestions, it These decisions are attached as Exhibits 25 through

11 appears that while an IBT member, Sainato violated Article II, Section 2(a) and Article XIX, Section 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. VI. PROPOSED CHARGES Based upon the foregoing, it is recommended that Local 282 member Anthony Sainato be charged as follows: While a member of IBT Local 282 and the IBT, you brought reproach upon the IBT in violation of Article II, Section 2(a) and Article XIX, Section 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 Brotherhood of Teamsters, 88 Civ (S.D.N.Y.), to wit: On May 8, 2001, you willfully and without justification refused to answer questions during your sworn in-person examination conducted pursuant to Paragraph H.3(c) of the Rules and Procedures for Operation of the Independent Review Board, including questions concerning your interactions with and knowledge of alleged members and associates of organized crime.

12 EXHIBITS TO REPORT REGARDING Anthony Sainato Dues Record of Anthony Sainato Sworn Examination of Anthony Sainato, May 8, 2001, Local 282's Employee list for Max-Tec Constriction Sworn Examination of Anthony Sainato, November 4, 1996 List of Trusteeships and Mergers U.S.D.C.E.D. of NY. Indictment # Tax Case re: Anthony Sainato U.S.D.C.E.D. of NY Sentencing of Anthony Sainato Organized Crime Hearings, Alphonse Persico U.S.D.C.E.D. of NY, Indictment re: Anthony Sainato and Frank Campanella Opinion of the Independent Administrator Cutolo re: William Declaration re: Local 282 U.S. V John Cody News Articles Agreement: Robert Sasso Agreement: Michael Carbone U.S.D.C.E.D. of N.Y. Indictment re: Sasso, Carbone, Bourgal, Probeyahn and Matarazzo Agreement: John Probeyahn Agreement: Michael Bourgal Decision: R. Ferreri, D. Caracciolo, R. Forino, D. Guidice and P. Ventimiglia Local 282 Government Trusteeship LM-3 Local 400 for 1997, William Cutolo Notice of Sworn Examination of Anthony Sainato 12

13 Fifth Amendment Privilege used by Anthony May 8, 2001 Sainato List of names shown to Anthony Sainato at the May 2001 sworn examination U.S. V IBT (Calagna) Joint Council 16 re: Feola U.S. V IBT (Hickey) Agreement: Salvatore Barbato Agreement: Michael DiLeonardo Agreement: Frank Fappiano Agreement: Camillo Lombardozzi Agreement: Joseph Cammarano, Sr. Agreement: Aniello Madonna Decision: Perry Baron Decision: John Bilotti and Robert Calcagno Decision: Glenn Boggia Decision: Joseph Cammarano, Jr. Decision: Theodore Furstman Decision: Charles Lanza Decision: Michael Malena Decision: Peter Menechino 13

14 INDEPENDENT REVIEW BOARD 444 North Capitol St., NW, Suite 528 Washington, DC (202) Facsimile (202) Corruption Hotline (800) CALL IRB Chief Investigator: Charles M. Carberry, Esq. 17 Battery Place, Suite 331 New York, NY Administrator: John J. Cronin, Jr. September 18, 2001 Board Members: Benjamin R. Civiletti, Esq. Venable, Baetjer, Howard & Civiletti 1201 New York Avenue, NW, Suite 1000 Washington, D.C Joseph E. digenova, Esq. digenova & Toensing th Street, NW, Suite 430 Washington, D.C William H. Webster, Esq. Milbank, Tweed, Hadley & McCloy 1825 Eye Street, NW, Suite 1100 Washington, DC Mr. Thomas Gesualdi Secretary-Treasurer, Local Marcus Avenue Lake Success, New York Re: Decision on Charges Against Local 282 Member Anthony Sainato Dear Mr. Gesualdi: The Independent Review Board has reviewed the Local 282 Executive Board's decision of August 21, 2 001, in the abovecaptioned matter, and finds the decision to be not inadequate. Very truly yours Members of the By: cc: James P. Hoffa, General President Patrick J. Szymanski, General Counsel Roger A. Adler, Esq. Mr. Anthony Sainato bcc: Susan Davis, Esq. Pursuant to the Consent Order of the United States District Court, S.D.N.Y. United States -v- International Brotherhood of Teamsters 88 CIV 4486 (DNE)

15 Building Material Teamsters Local 282 GARY LA BARBERA President few*,/. THOMAS GESUALDI Secretary-Treasurer August 21, 2001 Independent Review Board 444 North Capitol St. NW - Suite 528 Washington, DC Enclosed please find copies of the Local 282 Executive Board decision and a copy of the minutes of the August 2, 2001 panel hearing on Brother Anthony Sainato. If you have any questions please do not hesitate to call me. Fraternally, TG/ag ends. Thomas Gesualdi Secretary Treasurer 2500 Marcus Avenue, Lake Success, New York «(516) a (718) Fax (516)

16 Building Material Teamsters Local 282 GARY LA BARBERA President THOMAS GESUALDI Secretary-Treasurer Re: Charges against Local 282 member Anthony Sainato The Local 282 Executive Board met on August 2, 2001 at 4:00 PM to hear charges brought against Brother Anthony Sainato by President and Brother Gary LaBarbera. Before the start of the hearing, Secretary Treasurer Thomas Gesualdi informed the Board that he received a fax at 3:21 PM from the office of O'Conner & Mangan, the attorneys representing Anthony Sainato, asking for a postponement of the Executive Board proceedings. Brother LaBarbera suggested to the Board that we move forward with the charges against Brother Sainato. The basis of his request was that Brother Sainato and council had more that ample notice of today's hearing and believed that the request for a postponement was of an untimely nature. Brother Gesualdi and the entire Executive Board agreed with Brother LaBarbera's request, and the proceedings began. The Executive Board reviewed all documents and exhibits presented by Brother LaBarbera and rendered the following decision. The Local 282 Executive Board concludes that while a member of the I.B.T, Local 282 Brother Sainato brought reproach upon the I.B.T. in violation of Article II, Section 2 (a) and Article XIX, Section 7 (b) (1) and (2) and Section 14 (i) of the I.B.T. 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 Brotherhood of Teamsters. The conduct at issue is Mr. Sainato's willful refusal, on May 8, 2001 to answer questions at his sworn in person examination pursuant to Paragraph H. 39 (c) of the rules and procedures for operation of the Independent Review Board. The Local 282 Executive Board will sustain the charges brought forth by Brother LaBarbera and impose the following penalty: (1) Immediately expel Brother Sainato from membership in Local 282, the International and any affiliate of the International, and forever bar him from holding membership or office in or employment with Local 282, the International, any affiliate of the International, or any affiliated employee benefit fund, and (2) forever bar Brother Sainato from seeking or accepting money or other compensation for any goods or services from Local 282, the International, any affiliate of the International, or any affiliated employee benefit plan, other than the receipt of vested benefits to which he may be lawfully entitled by reason of prior participation in any employee benefit plan Marcus Avenue, Lake Success, New York (516) e (718) » Fax (516)