To: From: Re: Members of the Local 295 Executive Board Members of the Independent Review Board Proposed Charges Against Local 295 Member Jeffrey Wilkens Date: December 18, 2003 I. RE COMMENDATION The Independent Review Board ("IRB") refers the below report to Members of the Local 295 Executive Board and recommends that charges be filed against Local 2 95 member Jeffrey Wilkens ("Wilkens") for failing to cooperate with the IRB by refusing to appear for scheduled IRB sworn examinations on October 17, 2003 and November 13, 2003. By his actions, it appears that, while an IBT member, Wilkens 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 Order in United States v. International Brotherhood of Teamsters, 88 Civ. 4486 (S.D.N.Y.) ("Consent Order"). The Local 295 Corruption Officer assisted the Chief Investigator in the investigation of this matter.
II. JURISDICTION Pursuant to Article XIX, Section 14(c) of the IBT Constitution, this disciplinary matter is within the original jurisdiction of the Local 295 Executive Board. Paragraph G(e) of the March 14, 1989 Consent Order in United States v. International Brotherhood of Teamsters, 8 8 Civ. 4486 (S.D.N.Y.) and Paragraph 1(6) of the courtapproved Rules and Procedures for Operation of the IRB ("IRB Rules") require that within 90 days of the IRB's referral of a matter to an IBT entity, that 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. INVESTIGATIVE FINDINGS A. Introduction An investigation was being conducted into allegations of sham collective bargaining agreements which included Local 295 member Jeffrey Wilkens and his employer, Hail Air Freight, Inc.("Hail"). The Local 295 Corruption Officer, appointed pursuant to the settlement of a federal civil
RICO action against Local 295, referred the initial allegation to the IRB. B. Local 295 Local 295, located in Valley Stream, New York, has a long history of organized crime domination. Local 295 was a reputed tool for organized crime control of the air freight shippers and handlers at John F. Kennedy airport in New York and Newark airport in New Jersey. (Ex. 1) Two former Local 295 Presidents, Anthony Calagna ("Calagna") and Frank Calise, Sr. ("Calise") and a former officer, Harry Davidoff ("Davidoff") were convicted of felonies for misusing their Local Union offices. Calise and Davidoff were indicted in United States v. Salvatore Santoro, et al., 85 Cr. 100 (E.D.N.Y.), a federal racketeering case which charged that members and associates of the Luchese Family of La Cosa Nostra ("LCN") used Local 295 and its sister Local 851 to conduct racketeering enterprises. Both Calise and Davidoff were named in the indictment as associates of the Luchese Family. Salvatore Santoro, Paul Vario and Frank Manzo, each of whom has been publicly identified as an LCN member, were also indicted. (Ex. 2) The indictment contained numerous charges of LCN involvement in the affairs of Local 295 including charges of extortion of employers through the threat of wrongful
labor activities by Local 295. On November 7, 1986, Calise pled guilty to charges of racketeering and was sentenced to nine years. Davidoff was convicted of racketeering and extortion in this and a related indictment, see United States v. Harry Davidoff, 85 Cr. 100 (E.D.N.Y.), and was sentenced to ten years. (Exs. 24-26) On May 3, 1989, Calagna was indicted in United States v. Frank Calise, Anthony Calagna and Richard Schroeder, 89 Cr. 308 (E.D.N.Y.) along with Calise, for extortion and conspiracy to commit extortion from P.C. Delivery, an air freight company at Kennedy Airport which employed Local 2 95 members. (Ex. 27) In June 1990, Calise pled guilty to conspiracy to commit extortion. (Ex. 28) On January 3, 1991, Calagna was convicted after a jury trial of extortion and conspiracy to commit extortion. (Ex. 29) In June 1990, Calise was convicted of conspiracy to commit extortion for conspiring to threaten work stoppages and other inferences by Local 295 to extort money from air freight companies at Kennedy Airport, which employed Local 295 members. (Exs. 30 and 31) In 1990, Local 295, its sister Local 851 and their Executive Boards were named as defendants in United States v. Local 295, et al., 90 Civ. 970 (E.D.N.Y.), a civil RICO action filed by the United States in the Eastern District
of New York. (Ex. 3) The complaint alleged that Calagna was a member of the Luchese LCN Family and that Harry Davidoff, Mark Davidoff and Calise were LCN associates. The complaint further alleged that the defendants were engaged in a pattern of extortion from employers and members of Local 295 through an airport union enterprise and a Luchese Family enterprise. (Id.) In 1991, following a hearing, the Independent Administrator issued a decision finding that Calagna was a member of organized crime and permanently barred Calagna from the IBT. (Exs. 4 and 5) In addition, on June 14, 1991, the Independent Administrator issued a decision finding that the Local 295 Executive Board members had (1) violated their fiduciary duties by failing to investigate and take action on numerous allegations of criminal acts by and convictions of present and former union officers and allegations of LCN involvement in the union affairs and (2) embezzled, inter alia, the Local's funds by paying Calagna's legal fees and awarding him a substantial pay increase, by establishing a severance plan for union officers, by buying a car in violation of the Local's Bylaws for Secretary-Treasurer Michael Hunt's retirement, and by making payments to Harry Davidoff since 1972 despite his conviction for extortion and conspiracy to extort Local
295 employers. (Ex. I) 1 In November 1991, District Judge Edelstein affirmed the Independent Administrator's decision to remove and permanently bar all members of the Local 295 Executive Board. (Ex. 32) In the civil RICO case, on April 29, 1992, District Judge Nickerson appointed Thomas Puccio as the civil RICO Trustee for Local 295. (Ex. 6) In November 2002, District Judge Raymond Dearie authorized elections at Local 295. (Ex. 7) After an election, in April 2003, an Executive Board was sworn in at Local 2 95. Thomas Puccio was appointed the Local 295 Corruption Counsel. Since May 2003, The Independent Administrator's findings detailed other federal indictments that centered on Local 2 95. See United States v. Soldano, et al., 71 CR. 558 (S.D.N.Y.) (defendants charged and convicted for fraudulent manipulation of Local 295's severance scheme); United States v. Parker, 88 Cr. 026 (E.D.N.Y.) (Local 295 member pled guilty to extorting employers at Kennedy Airport by threatening to organize nonunion employees); United States v. Vincent Santa and Thomas Orlando, 8 6 Cr. 303 (E.D.N.Y.) (defendants were convicted of extortion and conspiracy to commit extortion by threatening work stoppages and other labor difficulties involving Local 295 and Local 851); United States v. Salvatore Reale and George Parker, 86 Cr. 302 (E.D.N.Y.) (defendants were charged with extortion and conspiracy to commit extortion by threatening air freight companies at Kennedy Airport with interference from Local 295, including the threat to organize non-union employees by Local 295; on February 4, 1988, Reale pled guilty to charges of extortion and was sentenced to 15 years, and placed on probation for five years); United States v. Mark Tangas, (E.D.N.Y.) (a Local 295 employer was indicted in 1988 for perjury and obstruction of justice for falsely testifying before a grand jury which was "seeking to determine whether Anthony Calagna, the [then] president of Local 295, was arranging for and receiving illegal labor peace payoffs from air freight and shipping companies on behalf of himself and the Luchese Family); United States v. Frank Cammarano, 89 Cr. 654 (E.D.N.Y.) (Cammarano was indicted for extortion and conspiracy to commit extortion by threatening various air freight companies with labor disputes or organization of non-union employees by Local 295 and 851; on March 30, 1989, Cammarano was convicted and sentenced to eight years.)
Donald Schwally has been the Local 295 Corruption Officer. (Ex. 8) C. Jeffrey Wilkens Wilkens is a member of Local 295 and is the only member employed at Hail Air Freight, Inc. (Ex. 9) Local 295 dues records indicated that Wilkens has been a member since December 1, 1995. (Ex. 10) Local 295 records show Wilkens as an active member whose dues were paid through August 2002. (Ex. 10) On August 26, 2003, Wilkens signed a collective bargaining agreement on behalf of Hail. (Ex. 15) On May 12, 2000, Henry J. Wilkens signed a collective bargaining agreement ("Agreement") on behalf of Hail. (Ex. 11) Then Local 295 business agent Christopher Stampe ("Stampe") signed the Agreement on behalf of Local 295. (Ex. 11) The Agreement covered the period from September 1, 2000 through August 31, 2003. (Ex. 11) The bargaining unit was defined as "drivers, warehouse employees, helpers, switchers, platform employees, mechanics, garage employees, fueler, and all clerical employees." (Ex. 11 at 3) The Agreement did not include any hourly wages but did stipulate an annual $.50 per hour wage increase over the term of the Agreement. (Ex. 11) According to the Local's May 2003 membership roster, Wilkens was listed as the only employee at Hail. (Ex. 9) An
April 26, 1999 Local 295 membership roster listed Henry J. Wilken, who apparently signed the agreement, and Edmund Klimczak as active members at Hail. Jeffrey Wilkens was listed as a new applicant on checkoff, residing at 590 Fire Island Avenue, Babylon, New York. (Ex. 13) According to the Local 295 employer roster, Hail was located at JFK International Airport, building 80. (Ex. 12) According to New York Department of State records, Hail was listed as an active domestic business with Jeffrey Wilkens as an officer and director. In these records, Wilkens' address was 22 Lincoln Street, Babylon, New York. Hail was incorporated on January 30, 1989. (Ex. 14) On October 7, 2003, the Local 295 Corruption Officer hand delivered for the IRB a notice of sworn examination to Wilkens, scheduling his sworn examination for October 17, 2003. (Exs. 16 and 17) 2 At this examination, the Chief Investigator planned to question Wilkens about his Local 295 membership, the terms of his employment as well as any contacts with organized crime figures, particularly members and associates of the Luchese LCN Family. Despite the sworn examination notice being hand delivered to him, Wilkens Previously, on August 13, 2003, a notice of sworn examination was sent to Wilkens' address listed in Local 295 records scheduling his sworn examination for August 27, 2003. (Ex. 19) Wilkens failed to appear. Wilkens later informed the Corruption Officer that he no longer resided at the residence in the Local's records. (Ex. 17) 8
failed to appear for his sworn examination on October 17, 2003. (Ex. 18) On October 21, 2003, Wilkens informed the Local 295 Corruption Officer that he forgot to appear for his October 17, 2003 sworn examination. (Ex. 20) Wilkens was informed of the consequences for failing to appear at any future sworn examination. (Ex. 20) On October 31, 2003, the Chief Investigator sent a second notice of sworn examination to Wilkens by overnight express mail scheduling his sworn examination for November 13, 2003. (Ex. 21) The United States Post Office delivered the notice of examination on November 2, 2003. (Ex. 22) Without explanation, Wilkens again failed to appear on November 13, 2003. (Ex. 23) On November 17 th and 24 th, 2003, the Local 295 Corruption Officer called the telephone number listed for Wilkens at Hail in Local records. (Exs. 33 and 34) 3 A message was left for Wilkens to contact the Corruption Officer at Local 295. Wilkens did not return either call. IV. ANALYSIS The court approved Rules and Procedures for Operation of the Independent Review Board for the International 3 This telephone number, (718) 244-6334, was listed for Hail at JFK Airport. (Ex. 35)
Brotherhood of Teamsters empowered the Chief Investigator "to take and require sworn statements or sworn in-person examinations of any officer, member, employee, representative, or agent of the IBT, provided that the IRB has given the person to be examined at least ten (10) days advance notice in writing and also provided that the person to be examined has the right to be represented by an IBT member or legal counsel." (IRB Rules, Paragraph H(3)(c)/ H(7)) Further, the IRB was empowered to investigate any failure to cooperate fully with the IRB. Additionally, Article XIX Section 14 (i) of the IBT Constitution provides: 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. It is well-settled that failure to cooperate with the IRB is grounds for disciplinary charges against IBT members. V. CHARGE RECOMMENDATION Based on the foregoing, it is recommended that Jeffrey Wilkens be charged as follows: 10
While a member of Local 295 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 Order in United States v. International Brotherhood of Teamsters, 88 Civ. 4486 (S.D.N.Y.), to wit: On October 17, 2003 and November 13, 2003, you willfully and without justification failed to appear for your scheduled in-person sworn 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 at which sworn examination you would have been questioned about activities related to your union membership and employment as well as any contact with members and associates of organized crime. 11
EXHIBITS TO THE REPORT INVOLVING JEFFREY WILKENS 1 Independent Administrator's Decision Regarding IBT Local 295 2 Declaration of James Malley 3 Complaint in United States v. Local 295, et al., CV 90-970 (E.D.N.Y.) 4 Independent Administrator's Decision Regarding Anthony Calagna, Sr. 5 Memorandum and Order in United States v. IBT [Calagna], 88 Civ. 4486 (S.D.N.Y.) 6 Consent Order in United States v. Local 295, CV 90-970 (E.D.N.Y.) 7 Amendment to Order in United States v. Local 295, CV 90-970 (E.D.N.Y.) 8 United States Attorney, Eastern District Letter regarding Appointment of the Local 295 Corruption Officer 9 Excerpt from Local 295 Membership Roster as of May 2003 10 Jeffrey Wilkens Local 295 Dues Card 11 Local 295 Collective Bargaining Agreement with Hail Air Freight, Inc. 12 Excerpt from Local 295 Employer Roster 13 Excerpt from April 4, 1999 Local 295 Employer Roster 14 New York Department of State Record for Hail Air Freight, Inc. 15 Local 295 Collective Bargaining Agreement with Hail Air Freight, Inc. dated August 26, 2003 12
Jeffrey Wilkens IRB Notice of Sworn Examination for October 17, 2003 Local 295 Corruption Officer's Memorandum dated October 7, 2003 Jeffrey Wilkens Record of Failure to Appear on October 17, 2003 Jeffrey Wilkens IRB Notice of Sworn Examination for August 27, 2003 Local 295 Corruption Officer's Memorandum dated October 21, 2003 Jeffrey Wilkens IRB Notice of Sworn Examination dated October 31, 2003 U. S. Post Office Service Domestic Return Receipt dated November 3, 2003 Jeffrey Wilkens Record of Failure to Appear November 13, 2003 Indictment in United States v. Salvatore Santoro, CR 85-100 (E.D.N.Y.) Judgment and Commitment Order for Harry Davidoff CR 85-100 (E.D.N.Y.) Judgment and Commitment Order for Frank Calise CR 85-100 (E.D.N.Y.) Indictment in United States v. Frank Calise, et al., CR 89-308 (E.D.N.Y.) Judgment for Frank Calise CR 85-308 (E.D.N.Y.) Judgment for Anthony Calagna CR 89-308 (E.D.N.Y.) Indictment in United States v. Anthony Guerrieri, et al., CR 89-307 (E.D.N.Y.) Judgment for Frank Calise CR 89-307 (E.D.N.Y.) Decision in United States v. IBT [Local 295], 88 Civ. 4486 (S.D.N.Y.) 13
Local 295 Corruption Officer's Memorandum dated November 17, 2003 Local 295 Corruption Officer's Memorandum dated November 24, 2003 Telephone Listing for Hail Air Freight, Inc. 14
Chief Investigator: Charles M. Carberry, Esq. 17 Battery Place, Suite 331 New York, NY 10004 Administrator: John J. Cronin, Jr. INDEPENDENT REVIEW BOARD 444 North Capitol Street, NW, Suite 528 Washington, DC 20001 (202) 434-8080 Facsimile (202) 434-8084 Corruption Hotline (800) CALL IRB April 5, 2004 Members of the Executive Board IBT Local 295 33 West Hawthorne Avenue, Suite Valley Stream, New York 11580 30 Board Members: Benjamin R. Civiletti, Esq. Venable, Baetjer, Howard & Civiletti 1201 New York Avenue, NW, Suite 1000 Washington, D.C. 20005 Joseph E. digenova, Esq. digenova & Toensing 90115th Street, NW, Suite 430 Washington, D.C. 20005 William H. Webster, Esq. Milbank, Tweed, Hadley & McCloy 1825 Eye Street, NW, Suite 1100 Washington, D.C. 20006 Re: Decision on Charges Against Local 295 Member Jeffrey Wilkens Dear Members of the Executive Board: The Independent Review Board has reviewed your decision of March 30, 2004, in the above captioned matter, and finds the decision to be not inadequate. Very truly yours, Members of the Independent Review Board By: John/jy/ Crbrfin, Jr. Administrator cc: Charles M. Carberry, Esq. Patrick J. Szymanski, 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 (LAP)
EXECUTIVE OFFICERS Lou Culeaiiuw President Patrick Setter Vice frtsitlsu Charles W. Russo Secntaty Treasurer John Hayes /iiconiing tow TRUSTEES Vinccnl Bnuw Edward MuCotmick William RbbertSOn TEAMSTERS LOCAL UNION 295 AIR FREIGHT CHAUFFEURS, HANDLERS, WAREHOUSEMEN & ALLIED WORKERS AFFILIATED WITH INTERNATIONAL BROTHERHOOD OF TEAMSTERS EXECUTIVE OFFICES 33 WEST HAWTHORNE AVENUE, SUIFE 30 VALLEY STREAM. NEW YORK I'iSBO TELEPHONE {516) 563-1970 FAX (516)568-1973 Independent Review Board Chief Investigator Charles ML Carberry, Esq. 17 Battery Place Suite 331 New York, N.Y, 10004 Dear Mr.Carberry: March 30,2004 This letter is to inform you that upon your recommendation dated December 18, 2003, a hearing was held by the Executive Board of I.B.T. Local 295 regarding charges filed against Mr. Jeffrey Wilkens. The hearing was held on February 20,2004. Tri attendance for the Executive Board of Local 295 were Lou Calemine, President and Principal Officer, Patrick Schcer, Vice President Charles W. Russo, Secretary Treasurer, John Hayes Recording Secretary, Vincent Bruno Business Agent, William Robertson, Business Agent, Edward McCormick Business Agent, and Walter Kane Counsel for Local 295. Mr Wilkens did not appear at the hearing. However the hearing was held and all charges were received by the Executive Board. Tt is the decision of the Executive Board that Mr. Jeffrey Wilkens be found guilty of all charges. The Executive Board imposes the following sanctions, that Jeffrey Wilkens is permanently expelled from membership in the union, permanently barred from participating in any manor in any activities or affairs of Local 295 or any other IBT entity, permanently barred from holding any union office, permanently barred from holding any other employment, office, position or consulting or similar relationship whether paid or unpaid, with Local 295 or any other IBT entity; permanently barred from seeking or accepting from Local 295 or any other LBT entity any salary severance, payment, allowance, fee, payment for unused vacation, or compensation of any kind except folly vested pension compensation and fully vested welfare benefits, and permanently barred from the date of expulsion from having any contributions in his behalf by Local 295 or any other entity to any pension, health & welfare, severance or other benefit fund. We at the Executive Board would appreciate any response from the T.R.B. CWR/abr cc: Patrick Szymanski Esq. Very truly yours, s* Charles W. Russo Secretary Treasurer