1

2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - --x
3 In the Matter of the
4 UNI TED BROTHERHOOD OF CARPENTERS
5 AND JOINERS OF AMERICA
6 - - - - - - - - - - - - - - - - - - - - - - - - - - - --x
7 SPECIAL HEARING ON THE SUPERVISION
8 OF CARPENTER LOCAL 157
9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - --x
10 395 Hudson Street
11 New York, New York
12 De c e mb e r 18, 2007

13 8:30 a.m.
-- 14

15 BEFORE:
16 MICHAEL V. DRAPER, Chairman
17 WILLIAM HALBERT, UBC Representative
18 JOHN J. SIMMONS, UBC Representative
19

20 ALSO PRESENT:
21 FRANK SPENCER, UBC Eastern District
22 Vice President
23 WILLIAM CALLAHAN, Independent
24 Investigator
25

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 2 4

2 WILLIAM O'FLAHERTY, UNITEL 1 Hearing

3 Investigator 2 interests of Local 157, the UBC and its
4 BERNIE KANE, UNITEL Investigator 3 members and/or contrary to the
5 MAURICE LEARY, NYC District Council 4 provisions and requirements of the UBC
6 Director of 5 Constitution, and that the continued
7 Operations 6 operation of 157 is in jeopardy;
8 7 specifically two offcers of the local
9 8 union, the president and financial
10 9 secretary, have resigned their positions
11 10 effective immediately.
12 11 "Furthermore, a report dated
13 12 November 13, 2007 issued by William P.
13 Callahan, Esquire, Independent
14
14 Investigator for the New York City
15
15 District Council of Carpenters with
16
16 which the Local 157 is affliated
17
17 described allegations relating to the
18
18 Local 157 and stated among other things
19 19 that the local is mismanaged, is a
20 20 mismanaged mess where BAs come and go as
21 21 they please following few, if any,
22 Reported by: Steven Neil Cohen, RPR 22 rules.
23 23 "Mr. Callahan found that 157 is in
24 24 disarray due to a lack of leadership
25 25 from an absentee business manager.

3 5

1 Hearing
2 THE CHAIRMAN: On the record.
3 Good morning. This is a hearing
4 being held under the Constitution and
5 laws of the United Brotherhood.
6 We will begin the hearing by
7 reading into the record the notice
8 stating the purpose of the hearing.
9 The notice is a letter dated
10 December 3, 2007 to the members of Local
11 157 from the general president.
12 The letter reads as follows:
13 "Dear members: This will
14 constitute formal notice of further
15 action being taken by the United
16 Brotherhood of Carpenters and Joiners of
17 America, UBC, pursuant to the authority
18 provided for under the UBC Constitution
19 regarding its affiliate Local 157.
20 "As I have advised in my letter to
21 the local dated November 21, 2007 based
22 upon information brought to my attention
23 it appears that the affairs of Local 157
24 are being conducted in a manner
25 detrimental to the welfare and best
1 Hearing
2 "Mr. Callahan reports that
3 business agents from 157 did not make
4 job site visits, for example, L&D
5 Installation work sites and Bloomberg
6 Building regarding ABM engineering.
7 "Mr. Callahan advises that this
8 offce is investigating several
9 allegations concerning job sites.
10 "These investigations have
11 revealed additional incidents of 157 BAs
12 not making regular job site visits in
13 the area.
14 "He also reported only two of the
15 BAs assigned to 157 fied the required
16 business agent's activity reports which
17 are required to be filed by all BAs
18 weekly and maintained at the locaL.
19 "Mr. Callahan also indicated a
20 review of the cellular phone records and
21 time sheets for the business agent for
22 the Local 157 has resulted in findings
23 allegedly showing a pattern of
24 unreported absenteeism by members of 157
25 business offce including possible

2
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 6 8
1 Hearing
2 falsification of records or lack of
3 filing records to cover up the
4 individual's action.
5 "After duly considering the
6 information provided I have determined,
7 pursuant to authority under 10H of the
8 UBC Constitution, that emergency
9 situations exist regarding Local 157
10 requiring immediate action by the UBC to
11 protect and preserve the welfare and
12 interest of the members.
13 "Accordingly, I have appointed
14 Supervisor Frank Spencer, district vice
15 president from the eastern district, to
16 immediately assume supervision over 157.
17 "District vice president Spencer
18 was granted full supervisory authority
19 according to the UBC Constitution and
20 laws and the power to assume and
21 exercise full and complete authority
22 over conduct of the local's affairs
23 including but not limited to the
24 authority to enforce the collective
25 bargaining agreement, the authority to
7 9
1 Hearing
2 administer all of Local lS7's assets,
3 the authority to appoint an assistant
4 supervisor to assist him in the
5 completion of his duties, the authority
6 to conduct and cancel all meetings, the
7 authority to remove and hire any and all
8 officers, delegates, stewards, employees
9 as he may deem necessary to ensure the
10 proper exercise of the supervisor's
11 authority in carrying out for the
12 purposes of supervision and ensuring the
13 proper function of Local 157.
14 "Furthermore, the officers and
15 members of Local 157 were and are hereby
16 directed to fully cooperate with
17 District Vice President Spencer and any
18 of his supervision assistants.
19 "Furthermore, in accordance with
20 section 6D and 10H of the UBC
21 Constitution a hearing will be conducted
22 into the affairs to determine if
23 supervision by the UBC over local
24 union -- over the local union should be
25 continued.
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868
1 Hearing
2 "In accordance with 10H of the UBC
3 Constitution I have appointed a
4 committee to conduct a hearing.
5 "The hearing will consist of UBC
6 members Michael Draper, chairman;
7 William C. Halbert and Jack Simmons.
8 "The hearing wil take place
9 pursuant to the following arrangement.
10 It will be at the New York City District
11 Council of Carpenters, 395 Hudson
12 Street, New York, New York; time,
13 Tuesday, December 18, 2007, 8:30 to
14 11:30, 1:00 to 4:00 p.m. and 6:00 to
15 9:00 p.m.
16 "All officers and members of the
17 local are hereby notified of this date,
18 time and place of the hearing and are
19 hereby advised of their opportunity to
20 appear at the hearing and present
21 testimony, their views and other
22 evidence regarding the conduct of the
23 affairs of Local 157.
24 "I am hereby directing the New
25 York City District Council to mail to
1 Hearing
2 all members of 157 a copy of this
3 letter.
4 "A final determination in this
5 matter will be made by the UBC general
6 executive board based on receipt of the
7 hearing's report and recommendation."
8 At this time I would like to
9 introduce the hearing's paneL.
10 To my right is William C. Halbert.
11 Bill is executive secretary of the
12 Midatlantic Regional Council of
13 Carpenters.
14 To my left is Jack Simmons. Jack
15 is a representative the United
16 Brotherhood of Carpenters.
17 My name is Michael Draper. I am
18 the international vice president from
19 the Western District and I will chairing
20 this hearing.
21 I would also like to introduce
22 others from the UBC that are here
23 present of the internationaL.
24 We have district vice president
25 from the eastern district, Frank
516-608-2400
 ..

10 12

1 Hearing 1 Hearing
2 Spencer, and somewhere we got back in 2 Each witness should state his or
3 the back of the room is Mike Capelli, 3 her name and local union for the record.
4 international representative working for 4 Speak clearly and directly so that
5 the eastern district. 5 we can follow the testimony and the
6 Over here we have a court 6 court reporter can get everyhing down.
7 reporter. The courter will be taking 7 I respectully ask all those in
8 down all of the testimony. 8 attendance that we be permitted to
9 Is all others in this room in good 9 conduct a fair and orderly hearing.
10 standing or a requested witness of this 10 There will be no cross fire or
11 panel? 11 questions from the floor.
12 If anyone here is not a member in 12 Witnesses will state in their own
13 good standing please advise by raising 13 manner their testimony for consideration
14 your hand now. 14 to this committee.
15 I will now ask that all of those 15 Then the committee at its
16 who are not members in good standing 16 discretion may have questions for the
17 please leave the hearing room. 17 witnesses.
18 This is a hearing, not a trial or 18 We will keep order and move the
19 a prosecution. We are an investigating 19 hearing along as needed.
20 committee appointed by the general 20 I repeat. There will be no
21 president to make findings and 21 disruption of this meeting by members in
22 recommendations under 6D and 10H of the 22 .. the audience. Each of you will have
23 Constitution. 23 your proper turn.
24 We will do our best to afford 24 The offcial court reporter is
25 ample opportunity to everyone who wishes 25 capable of taking everyhing down.

11 13

1 Hearing 1 Hearing
2 to testify or submit evidence to this 2 There will be one and only one
3 committee. 3 official record of this hearing.
4 We need your full cooperation to 4 Therefore, no personal tape recorders or
5 make sure this hearing is conducted in 5 other recording devices are allowed in
6 an orderly manner. 6 this room.
7 There are a few simple rules and 7 This session will go to 11:30 a.m.
8 procedures that we need to follow. 8 We will break for lunch.
9 All those who wish to testify in 9 The afternoon session will be from
10 front of this committee, please let us 10 1:00 to 4:00.
11 know by indicating the desire when you 11 We will hold an evening session
12 sign your name on the attendance sheet. 12 from 6:00 p.m. to 9:00 p.m.
13 At present it is our intention to 13 During the daytime we will try to
14 take testimony only from members of this 14 hear all those who are present so that
15 local union council and witnesses that 15 we can reserve the evening session for
16 the committee determines had pertinent 16 members who are employed on job sites
17 information to the hearing. 17 during the day.
18 Other members of the UBC may 18 We will try to hear all witnesses
19 attend this hearing but not testify. 19 who have anything to offer in the way of
20 Testimony from witnesses will be 20 testimony or evidence concerning the
21 under oath. 21 matters that have been outlined
22 All testimony will be recorded by 22 generally in the hearing notice that I
23 a court reporter. 23 have previously read.
24 Time limits may be imposed at the 24 This includes testimony that
25 discretion of the chair. 25 relates to the operations and affairs of

4
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 14 16

1 Hearing 1 Hearing
2 this local union council as a whole. 2 Spencer was marked Exhibit 1 for
3 The committee may also consider 3 identification)
4 relevant information offered in the form 4 THE CHAIRMAN: Entered into by
5 of documents and other exhibits as well. 5 Frank Spencer.
6 If it should be necessary as the 6 Go ahead.
7 result of the testimony this committee 7 MR. SPENCER: My name is Frank
8 at its discretion may also ask for 8 Spencer.
9 documents to be produced from records of 9 I am a member of the United
10 the local union and/or counciL. 10 Brotherhood of Carpenters and Joiners of
11 If there is a need to, this 11 America and currently hold the position
12 committee will go off the record, for 12 of district vice president for the
13 example, if we have to confer about 13 UBC's eastern district.
14 something that has come up or clarify a 14 Prior to becoming the district
15 matter, but as I stated earlier, please, 15 vice president I was the executive
16 no cross fire from the floor. 16 secretary treasurer of the New Jersey
17 Whoever the witness is up there 17 regional Council of Carpenters.
18 speaking let him or her testify to the 18 Pursuant to his authority under
19 committee and we will conduct this 19 the UBC Constitution by letter dated
20 hearing in a fair and amicable manner 20 November 21, 2007 UBC General President
21 with mutual respect that we owe one 21 Douglas McCarron imposed emergency
22 another as members of this union. 22 trusteeship over Local 157.
23 There is no smoking in this 23 General President McCarron
24 hearing room and as you come in please 24 appointed me as supervisor with full
25 remove your hats. 25 authority over Local Union 157.

15 17

1 Hearing 1 Hearing
2 Thank you very much. 2 A copy of General President
3 With these few rules we will 3 McCarron's November 21 letter is
4 proceed. 4 attached to this presentation and marked
5 The chair will call its first 5 as Exhibit A.
6 witness, Frank Spencer, vice president 6 General President McCarron
7 of the eastern district. 7 directed the council to mail this letter
8 FRANK SPENCER, called as a witness, having 8 to the membership of Local 157 which was
9 been duly sworn, testified as follows: 9 done.
10 MR. SPENCER: Good morning. 10 The local union which is
11 THE CHAIRMAN: How are you today? 11 affiliated with the New York City
12 MR. SPENCER: I am good, MichaeL. 12 District Council of Carpenters is
13 Good morning Jack, BilL. 13 located at 157 East 25th Street in the
14 I would like to read this 14 borough of Manhattan, New York City, and
15 presentation into the record and ask 15 has, as of December 10, 2007, 4283
16 that it be marked as an exhibit and 16 members making it the second largest
17 entered into the record. 17 local union in the counciL.
18 THE CHAIRMAN: If I could, do you 18 Attached to this presentation and
19 happen to have copies of that so we can 19 marked as Exhibit B are a two-page
20 follow along? 20 membership summary of Local Union 157
21 MR. SPENCER: I do. 21 and a one page summary of membership
22 THE CHAIRMAN: Let the record show 22 totals for local unions affiliated with
23 that the document being presented wil 23 the counciL.
24 be marked as Exhibit Number 1. 24 In my capacity as supervisor I
25 (Written Testimony of Frank 25 removed the remaining offcers of Local

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 18
1 Hearing
2 157 and took control of the local
3 union's assets among other things.
4 I have been assisted in my
5 supervisory duties by UBC district
6 representative Michael Capelli and
7 Michael Forde, executive secretary
8 treasurer of New York City District
9 Council of Carpenters, among others.
10 Prior to emergency trusteeship
11 being imposed over Local 157 in
12 November 2007 the UBC was made aware of
13 problems occurring at Local Union 157.
14 Generally speaking, certain
15 council business agents assigned to
16 Local 157 some of whom were also
17 offcers of the local union allegedly
18 were not performing their jobs.
19 These allegations are contained in
20 a document entitled Unitel Report dated
21 November 13, 2007 from William P.
22 Callahan, the independent investigator
23 to council EST Mike Forde.
24 A copy of the report is attached
25 to this presentation and marked as
19
1 Hearing
2 Exhibit C.
3 I expect Mr. Callahan to appear
4 before this hearing committee and
5 discuss the report in much greater
6 detaiL.
7 Subsequently on or about
8 November 21, 2007 two of the business
9 agents named in the report, Frank Hanley
10 and Fred Kennedy, resigned their
11 positions as business manager and
12 business agent respectively, and as
13 president and financial secretary,
14 respectively, of Local 157.
15 Furthermore, in the report George
16 DiLacio, a council business agent and
17 vice president of Local 157, is alleged
18 to have engaged in wrongdoing.
19 Mr. DiLacio did not resign and was
20 terminated as business agent by the
21 counciL.
22 Once emergency trusteeship was
23 imposed removed from the position of
24 Local 157 vice president.
25 Thus considering Hanley and
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868
20
1 Hearing
2 Kennedy's resignation combined with the
3 allegations in the report including the
4 allegations against George DiLacio,
5 general President McCrron concluded
6 that the local union was without
7 leadership and was in jeopardy.
8 The UBC needed to the act and act
9 quickly and did so by imposing emergency
10 trusteeship over Local Union 157.
11 By letter dated December 3, 2007
12 General President McCarron notified the
13 membership of Local 157 again of the
14 emergency trusteeship but also of the
15 time, date and place of today's hearing
16 and of their opportunity to appear
17 before the hearing committee and present
18 testimony and other evidence.
19 A copy of General President
20 McCarron's December 3, 2007 letter is
21 attached to this presentation and marked
22 as Exhibit D.
23 General President McCarron also
24 directed the council to mail the
25 December 3 letter to the membership of
21
1 Hearing
2 Local 157 which was done, thus all
3 members of Local 157 have been notified
4 of today's hearing.
5 Prior to placing Local 157 under
6 emergency trusteeship General President
7 McCarron issued to me a letter dated
8 November 20, 2007 pursuant to his
9 authority under section lOB of the UBC
10 Constitution.
11 A copy of this November 20 letter
12 is attached to this presentation and
13 marked as Exhibit E.
14 I was assigned to conduct an
15 examination of all books, papers and
16 other records including all financial
17 records of Local Union 157.
18 An examination in this regard has
19 now been performed by Lewis K. Pugh,
20 retired UBC district representative, and
21 his report with exhibits numbered 1
22 through 12 is attached to this
23 presentation and marked as Exhibit F.
24 In his report dated December 7,
25 2007 Mr. Pugh concluded of Local 157
516-608-2400
 22 24

1 Hearing 1 Hearing
2 that the appearance of the offce and 2 opportunity for fraud. That is not the
3 management of the local is atrocious. 3 case, just pure sloppy bookkeeping.
4 He made several recommendations 4 The missing checks we are still
5 for improving the local union. 5 looking for.
6 The foregoing represents a brief 6 The voids, the majority of them
7 and general overview of the events 7 were caused by the fact of duplicate
8 leading up to today's hearing. 8 numbers on the checks.
9 As I mentioned earlier in my 9 Since that time the accountant has
10 testimony you will hear in greater 10 been replaced, the girls in the offce
11 detail from Mr. Callahan regarding the 11 have been sent for QuickBooks training
12 contents of his report. 12 and we are revamping the overall
13 I believe that once the hearing 13 bookkeeping system for the locaL.
14 committee considers the evidence and 14 THE CHAIRMAN: Thank you.
15 testimony presented to it the committee 15 Any questions?
16 will conclude that the UBC was fully 16 MR. SIMMONS: Not at this time.
17 justified in placing Local Union 157 17 THE CHAIRMAN: Thank you.
18 under emergency trusteeship and that 18 Now you will be here during the
19 continued UBC trusteeship of Local 157 19 hearing and you may be called back to --
20 is necessary until such time as Local 20 MR. SPENCER: The whole day;
21 157 is able to function effectively. 21 whatever you need, Mr. Chairman.
22 That concludes my testimony before 22 THE CHAIRMAN: You did get sworn
23 this hearing committee at this time. 23 in earlier so we appreciate that.
24 I am available to answer questions 24 MR. SPENCER: Thank you.
25 that the committee may have regarding my 25 The chair calls William Callahan.

23 25

1 Hearing 1 Hearing
2 testimony on the UBC's trusteeship over 2 Mr. Callahan, could you please get
3 this local union. 3 sworn in by the court reporter?
4 THE CHAIRMAN: If you could, 4 WILLIAM CALLAHAN, called as a witness,
5 Brother Spencer, turn to Exhibit Number 5 having been duly sworn, testified as
6 8. 6 follows:
7 It is a report to the general 7 THE CHAIRMAN: Proceed,
8 president from Lou Pugh, the auditor. 8 Mr. Callahan.
9 MR. SPENCER: Yes. 9 MR. CALLAHAN: With your
10 THE CHAIRMAN: Keep in mind, we 10 permission I would like to have my two
11 have to review this. I have not had a 11 senior investigators sit up at the table
12 chance to review it. 12 with us.
13 In the third paragraph there is a 13 THE CHAIRMAN: Could you get both
14 statement, "There is an unacceptable 14 sworn in and give the court reporter
15 number of voids, duplicates and missing 15 your respective names please?
16 checks. " 16 WILLIAM J. O'FLAHERTY, having been duly
17 Has there been any further 17 sworn, testified as follows.
18 investigation without going through this 18 BERNARD J. KANE, called as a witness,
19 with regard to any of those -- 19 having been duly sworn, testified as
20 MR. SPENCER: The duplicates, I 20 follows:
21 think we have come to the bottom of 21 THE CHAIRMAN: Mr. Callahan, could
22 that. 22 you please explain to the committee your
23 Certainly as we have discussed, 23 position with council?
24 not you and I but with Michael Forde and 24 MR. CALLAHAN: Yes, sir.
25 Michael Capelli, certainly an 25 Mr. Chairman, members of the

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 26 28

1 Hearing 1 Hearing
2 committee, I will be making introductory 2 will be the transcript of the plea
3 statements as to our background and our 3 before the federal court.
4 genesis of this matter. 4 THE CHAIRMAN: We will have that
5 I will also be reading into the 5 marked Exhibit 4 for the record.
6 record our summary executive statement. 6 (Transcript of Plea was marked
7 You will have copies of those. 7 Exhibit 4 for identification)
8 There will be an exhibit, a visual 8 MR. CALLAHAN: The visual exhibit
9 tool exhibit, will be attached showing 9 comprises four pages.
10 attendance records of the gentlemen at 10 THE CHAIRMAN: That is what you
11 157. 11 will be visibly showing on the screen?
12 I will also be referring to an 12 MR. CALLAHAN: Yes.
13 exhibit which is the trial transcript of 13 Mr. O'Flahert, when we get to
14 the sentencing -- sorry -- the plea 14 that point, will describe in some detail
15 sentencing transcript of Frank Proscia, 15 how to read the visual exhibit.
16 a former shop steward and an officer and 16 THE CHAIRMAN: Go ahead and
17 delegate to the union. 17 proceed, Mr. Callahan.
18 I will be referring to that too. 18 MR. CALLAHAN: By way of
19 THE CHAIRMAN: For the record, you 19 background, in the spring of 2005 the
20 have handed us three different 20 district council notified the government
21 documents; is that correct? 21 that it intended not to renew the
22 MR. CALLAHAN: Yes. 22 contract of Mr. Walter Mack, my
23 You should have a copy of the 23 predecessor, independent investigator,
24 Proscia plea transcript. 24 and with the concurrence of the United
25 THE CHAIRMAN: What statement will 25 States Department of Justice, U.S.

27 29

1 Hearing 1 Hearing
2 you be reading first? 2 Attorney's Office, they put out an RFP
3 That would be the statement of 3 proposal for investigative companies to
4 yourself. 4 submit bids for the role of a new II.
5 MR. CALLAHAN: Yes. That will be 5 In or around June of 2005 my
6 my statement. 6 company, Unitel, submitted a request to
7 THE CHAIRMAN: Let the record show 7 the RFP and after interviews by the
8 that the statement of William Callahan 8 district council and the government
9 will be marked Exhibit 2. 9 attorneys the district council chose my
10 (Statement of William Callahan was 10 company, Unitel, to fulfill the position
11 marked Exhibit 2 for identification) 11 of independent investigator.
12 THE CHAIRMAN: Which will be the 12 That decision was confirmed by
13 second document. 13 Judge Haight of the federal court.
14 MR. CALLAHAN: The second document 14 On August 26, 2005 the judge
15 will be the visual exhibit. 15 entered an order of appointment
16 THE CHAIRMAN: Let the visual 16 appOinting me as the independent
17 exhibit titled Willam Hanley be marked 17 investigator.
18 as Exhibit 3. 18 I have been serving in that
19 (Visual Exhibit titled William 19 capacity and that is a two-year
20 Hanley was marked Exhibit 3 for 20 appointment.
21 identification) 21 Judge Haight has extended that
22 THE CHAIRMAN: The third will be a 22 appointment without closing date as of
23 plea exhibit; is that correct, Mr. 23 this time today.
24 Callahan? 24 By way of background, I am an
25 MR. CALLAHAN: Yes. The third 25 attorney, I am a former federal

8
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 30 32

1 Hearing 1 Hearing
2 prosecutor. 2 confidential informants we have become
3 Prior to that I was with the New 3 acquai.nted with during our tenure in
4 York State Police. Prior to that I was 4 offce.
5 a carpenter, not a member of the union 5 In addition to receiving and
6 but I was working my way through high 6 investigating calls to the hot line
7 school and college in Queens as a 7 pursuant to my order of appointment
8 carpenter. 8 district council employees such as field
9 So I am not unfamiliar with the 9 representatives, organizers and staff
10 duties and tasks and ups and downs of 10 employees are also required to report
11 the carpenters. 11 incidents of wrongdoing to my offce.
12 I will now read the statement we 12 To assist me in my duties I employ
13 are submitting to the executive 13 the services of two experienced
14 committee here as our executive summary. 14 investigators whom I would like to
15 With your permission, 15 introduce to you at this time as both of
16 Mr. Chairman, I will read it in. 16 them have had an active role in my
17 THE CHAIRMAN: Proceed. 17 investigation of the affairs of Local
18 MR. CALLAHAN: I am William 18 157.
19 Callahan, president of Unitel, Inc. 19 Bernie Kane, to my left, is a
20 Since September 2005 I have served 20 retired special agent for the FBI with
21 as the independent investigator, the II 21 experience in matters of organized
22 as I am called, for the New York City 22 labor.
23 District Council of Carpenters. 23 Bill O'Flahert, to my right, is a
24 I was appointed to my position by 24 retired NYPD detective with over 20
25 United States District Judge Charles 25 years of experience.

31 33

1 Hearing 1 Hearing
2 Haight of the United States District 2 In addition to the work of my
3 Court for the Southern District of New 3 staff I depend on the assistance and
4 York. 4 contributions of the District Council's
5 The court has authorized me in my 5 anti-corruption committee with which I
6 capacities the II to investigate alleged 6 and the members of my staff meet on a
7 violations of the court's ordered job 7 weekly basis and communicate with daily.
8 referral rules and the commission of any 8 Let me be clear about one very
9 wrongdoing in connection with carpenter 9 important fundamental tenet of my
10 job sites. 10 office.
11 In furtherance of my duties as the 11 We have not and do not go about
12 II my office operates a telephone hot 12 our business with a preconceived belief
13 line that has been established for 13 of anyone's wrongdoing or agenda to
14 people to call in allegations of 14 focus on anyone individual, group of
15 wrongdoing. 15 individuals or local union affliated
16 The hot line number is printed on 16 with the District CounciL.
17 the back of every district council 17 We are investigators. We follow
18 member's council card and is advertised 18 the fact wherever they lead.
19 by the council in various media 19 Our concerns about the
20 throughout the year. 20 questionable activities of certain
21 Callers to the hot line may either 21 business representatives and the
22 identify themselves or remain anonymous. 22 business manager of Local 157 have
23 We receive information from 23 various origins.
24 anonymous and identified callers, 24 First, since early in my
25 district council employees and 25 appointment since September 2005 we have

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 34 36
1 Hearing 1 Hearing
2 been investigating employee benefit 2 in federal court to embezzlement of DC
3 funds fraud by a company known as L&D 3 benefit funds while employed by L&D.
4 Installers. 4 The forensic auditor for the
5 During the course of that 5 District Council Benefis Funds has
6 investigation the business 6 found there was over 2 millon in unpaid
7 representatives and business manager of 7 benefits for union carpenters by L&D
8 Local 157 were interviewed about their 8 from 2001 through 2006.
9 knowledge or lack thereof of the 9 Mickey Annucci has pleaded not
10 activities that took place on L&D job 10 guilty to employee benefit embezzlement
11 sites. 11 while he was employed by L&D and is
12 From these interviews I learned 12 scheduled for trial in January.
13 there was a lack of job site visits for 13 I will not comment on the likely
14 this company by Local 157 business 14 outcome of Mr. Annucci's trial and we
15 agents assigned to their work sites. 15 must all be mindful that he is presumed
16 The shop steward on a major L&D 16 innocent until proven guilty in a court
17 job site for many years was Mickey 17 of law.
18 Annucci. 18 I describe these fact to give you
19 Annucci was also Local lS7's 19 the background of our inquiries into the
20 executive delegate to the district 20 activities of the Local 157 business
21 council and a long term active member of 21 representatives, particularly Danny
22 that locaL. 22 Demorato, Fred Kennedy and business
23 In or about February 2006 when 23 manager Billy Hanley who were
24 Annucci was appointed to a full time 24 responsible for the L&D job sites in
25 organizer's position at the district 25 their area.

35 37
1 Hearing 1 Hearing
2 council Frank Proscia, another Local 157 2 They admitted to the investigators
3 executive board member, was dispatched 3 that there was a total lack of job site
4 as a shop steward to succeed Annucci. 4 visits for this contractor.
5 I was suspicious of Proscia's 5 My staff and I reminded them of
6 appointment to succeed Annucci. 6 the importance of job site visits to
7 Without going into the details, 7 enforce the CBA and protect the
8 the investigation of Proscia's 8 membership.
9 employment and shop steward position at 9 As additional background to the
10 this job site was terminated. 10 ultimate investigation that resulted in
11 Soon thereafter Proscia's shop 11 our recommending disciplinary action be
12 steward skill was suspended by our 12 taken against the representatives of
13 District Council. 13 Local 157 during the past year my office
14 Earlier this year business manager 14 and the anti-corruption committee also
15 Bill Hanley was suspended by the 15 provided information to business manager
16 executive secretary treasurer of the 16 Hanley that the shop steward employed by
17 district council for his role in 17 ABM at the Bloomberg building in Local
18 improperly securing new employment for 18 lS7's area was improperly dispatched and
19 Proscia. 19 had not sent in a shop steward report in
20 Hanley's actions in getting 20 over two years.
21 employment for Proscia resulted in 21 This shop steward of Local 157
22 another Local 157 member being laid off 22 offcial was replaced by Mr. Hanley as a
23 from his job. 23 steward but remained a Local 157
24 Since then the L&D investigation 24 offcer.
25 has resulted in Proscia pleading guilty 25 During the period in question no

10
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 38 40

1 Hearing
2 business agent ever visited the site.
3 The II notes that another
4 executive offcer of Local 157 was
5 employed by ABM.
6 After the removal of the above
7 mentioned steward several shop stewards
8 were dispatched to the site but were let
9 go.
10 It was not until the New York City
11 District Council offcials intervened
12 with Bloomberg management at the site
13 that a fairly dispatched steward from
14 OWL was kept on by ABM ending a long
15 period of prohibited job referral
16 practices.
17 In addition to these incidents we
18 also received various calls to our hot
19 line from a reliable confidential source
20 who consistently reported that business
21 manager and certain business
22 representatives assigned to work in
23 Local 157 were not regularly coming to
24 work and not doing their jobs as should
25 have been expected by their employer,
1 Hearing
2 We found that business agent Fred
3 Kennedy's absences from the jurisdiction
4 he supervised, the absence of any record
5 of his daily activity as required to be
6 recorded on the business agent daily
7 activity report were such that when
8 confronted with the evidence he resigned
9 from his position as business agent,
10 agreed to step down from his union
11 positions and agreed never to run for
12 elected offce position.
13 He was allowed to remain a member
14 of the UBC.
15 We found that business agent
16 George DiLiacio's absences from the
17 jurisdiction he supervised and the lack
18 of any record of his daily activities as
19 required by the New York City district
20 council on the business agent daily
21 activity report were such that he was
22 dismissed from his position by the
23 executive secretary treasurer of the New
24 York City District Council after he
25 refused to resign.

39 41

1 Hearing 1 Hearing
2 the New York City District Council of 2 We found that business agent
3 Carpenters. 3 Daniel DeMorato had several absences
4 As a result of these and other 4 that were unaccounted and questionable
5 matters we sought to evaluate the truth 5 but he did compile a record of his daily
6 of these allegations and to report our 6 activity as required by the New York
7 findings to the executive offcers of 7 City district council.Utilizing the
8 the district council for council 8 business agent daily activity report
9 consideration. 9 form.
10 We reported the results of our 10 There were several discrepancies
11 investigation in a November 13, 2007 11 between that form and his reported
12 memorandum to Michael Forde, the 12 attendance.
13 executive secretary treasurer of the 13 The district council took
14 district counciL. 14 immediate remedial action.
15 It was immediately clear to my 15 We found no discrepancies in the
16 staff and I that the council's offices 16 attendance and reporting of business
17 recognize the seriousness of the 17 agent Lawrence D'Errico.
18 information we provided. 18 I understand that the information
19 In short, we found that business 19 we provided the council's executive
20 manager William Hanley's absences from 20 offices have been forwarded to the
21 the jurisdiction he managed were such 21 offce of General President McCrron.
22 that when confronted with the evidence 22 As a guide for the committee my
23 by the executive offcers of the 23 offce has prepared graphs ilustrating
24 District Council he retired and resigned 24 the information we evaluated for each
25 from his local union offces. 25 business representative and the business

11

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 42 44

1 Hearing 1 Hearing
2 manager. 2 MR. CALLAHAN: We are referring to
3 At the conclusion of this read in 3 the bottom of page 18 before Judge
4 I will have the graphs put up on the 4 Barbara Jones.
5 board for viewing. 5 THE CHAIRMAN: This is Exhibit 4?
6 On behalf of the office of the 6 MR. CALLAHAN: 4.
7 independent investigator I would like to 7 THE CHAIRMAN: Thank you.
8 thank the District Council 8 MR. CALLAHAN: The plea was
9 Anti-Corruption Committee for its 9 entered before the Honorable Barbara S.
10 support and assistance in our 10 Jones on -- in the United States
11 investigation of this matter. 11 District Court for the Southern District
12 I should also thank and hope that 12 of New York.
13 the offcers of the UBC also recognize 13 Turning to page 18, starting at
14 the executive offcers of the district 14 line 15, the judge asked Mr. Proscia,
15 council for their resolve to insist on a 15 "You have gone through this statement."
16 full and fair investigation of the 16 He has submitted a statement.
17 fact, to offer those individuals 17 THE DEFENDANT: Yes.
18 affected by the investigation an 18 THE COURT: Okay. And it is okay?
19 opportunity to respond to our findings 19 THE DEFENDANT: Okay.
20 and encourage to act decisively on the 20 THE COURT: Okay. Go ahead.
21 facts once they are established. 21 THE DEFENDANT: Between February
22 I understand from counsel for the 22 2006 and June 2006 I was shop steward
23 district council in accordance with the 23 for the United Brothers of Carpenters,
24 UBC Constitution only the UBC through 24 Local 157, on a job site located at 11
25 the office of the general president has 25 Madison Avenue, Manhatta.

43 45

1 Hearing 1 Hearing
2 the authority to impose supervision over 2 "On that job I filled out my shop
3 a constituent local union. 3 steward reports falsely in order to hide
4 Given the facts and circumstances 4 from the union the actual number of
5 developed by the office of the 5 hours carpenters from L&D Installers
6 independent investigator, the District 6 worked on the job.
7 Council's petition for such action, and 7 "I did this to help L&D avoid
8 the prompt response by the general 8 paying money into the union benefi
9 president was the responsible and 9 funds.
10 prudent steps to take. 10 "L&D was required to pay money
11 Please be assured the offce of 11 into the funds based on the number of
12 the independent investigator stands 12 hours carpenters worked on a job. I
13 ready to assist the vice president Frank 13 successfully helped L&D avoid such
14 Spencer and his assistant supervisor, 14 payment.
15 EST Mike Forde, in any way we can as you 15 "I did this intentionally and on
16 carry out the task of reforming the 16 purpose. I knew what I was doing was
17 operations of Local 157. 17 unlawful and wrong and I am ashamed and
18 At this time I am referring to the 18 embarrassed and sorry for what I did."
19 transcript of the entry of the guilty 19 At this time if we could have the
20 plea by Frank Proscia. 20 visuals put up on the board.
21 I would like to read one short 21 THE CHAIRMAN: Let the record show
22 paragraph into the record. 22 that the visuals are contained in a
23 This is the plea entered by -- 23 written report also submitted, a graph
24 THE CHAIRMAN: What page are we 24 by Mr. Callahan which is marked Exhibit
25 referring to? 25 3.

12

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 46 48

1 Hearing 1 Hearing
2 MR. CALLAHAN: Can that be made 2 responsibility he left before 12:00
3 clearer? 3 p.m., 12:00 noon, coming for a total of
4 Mr. O'Flahert will take you 4 145 days out of 166 working days.
5 through the exhibits and explain them 5 We also did an additional graph
6 basically. 6 for business agent Kennedy breaking it
7 MR. O'FLAHERTY: What we are 7 down by month on days of work and days
8 showing is the attendance records of 8 that he left early which I think even
9 business manager William Hanley for the 9 shows a more clearer way as far as his
10 period of time between January 15, 2007 10 leaving workdays at an earlier period of
11 and October 15, 2007. 11 time.
12 We took the amount of workdays 12 Switching to the last graph which
13 within that period which we came up with 13 is the work record of George DiLacio.
14 196. We deducted from that holidays, 14 We came to a total of 162 days that
15 sick, vacation and personal days that 15 Mr. DiLacio was supposed to work.
16 the member took. 16 From that time we found only 22 --
17 From that we came up with a total 17 again he did not submit business
18 of 153 working days for that period of 18 activity report for his work so we
19 time. 19 referred to the telephone records.
20 During -- that is designated by 20 From that we found 29
21 the blue graph. 21 unaccounted-for days that he did not go
22 Next to it we have -- we reviewed 22 into work in his area that he was
23 activity reports which this member did 23 responsible for and on 46 additional
24 not submit and telephone records to 24 days when he did go into work he left
25 determine where that member was during 25 early, before 1:00 p.m., for a total of

47 49

1 Hearing 1 Hearing
2 that period of time. 2 75 days.
3 On 52 occasions out of that 153 3 MR. CALLAHAN: Mr. Chairman, that
4 this member was never in his area of 4 concludes our presentation and we would
5 employment or responsibility which is 5 be pleased to answer any questions if
6 New York City. 6 the panel has any questions to put to
7 On 71 occasions we found that this 7 us.
8 member left his area -- the days that he 8 MR. HALBERT: You said they
9 did come into work he left his area of 9 weren't in their area of responsibility.
10 employment before 1:00 p.m. on 71 10 Then you said in New York.
11 occasions, totaling for 123 days. 11 Exactly what was the area of
12 Switching to business agent Fred 12 responsibility of these individuals?
13 Kennedy. 13 Was it New York City or were they
14 We used the same numbers for 14 out of the city completely or --
15 Mr. Kennedy. We came to a total of 166 15 MR. O'FLAHERTY: New York City.
16 working days for Mr. Kennedy. 16 We reviewed their phone records
17 He did not submit activity reports 17 and gave them credit for anywhere in New
18 so we had to review his telephone 18 York City as being their area of
19 records. 19 responsibility.
20 In those records we found 36 20 When their phone records showed
21 unaccounted for days that Mr. Kennedy 21 they were outside of that area that is
22 did not come into his area of 22 when we put --
23 responsibility during the workday. 23 MR. HALBERT: If they were in New
24 On 109 of those additional days 24 Jersey, Westchester or Orange, they
25 when he did come into his area of 25 would be out of their area?

13
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 50 52
1 Hearing 1 Hearing
2 MR. O'FLAHERTY: New York City 2 MR. O'FLAHERTY: In -- for Hanley
3 being only Manhattan. 3 and for DiLacio we used 1:00 p.m. as
4 Sorry, I am not clear. 4 being the time that if they hit a cell
5 MR. HALBERT: Okay. 5 site out of their area of responsibility
6 MR. SIMMONS: Just for 6 before 1:00 p.m. we listed them as
7 clarification, could you explain to us 7 leaving their area of responsibility
8 how you can use the phone records to be 8 early.
9 able to tell where the individual was? 9 On Fred Kennedy's case he left a
10 MR.O'FLAHERTY: The phone records 10 lot earlier than the others. We gave
11 showed time of calls, location of calls 11 him to 12:00 p.m.
12 as far as the person who had the 12 If he hit a cell site outside of
13 cellular phone that was assigned to the 13 his area of responsibility before 12:00
14 business agent. 14 p.m. we marked him as leaving early for
15 It showed where they were, whether 15 that day.
16 the call was incoming or outgoing, where 16 MR. KANE: To add on that, that we
17 the call was coming from, what phone 17 also gave them credit for the day if
18 number was calling them or they were 18 they came back into New York City for
19 calling to so it gave me -- showed me 19 the occasions --
20 where they were within New York. 20 THE CHAIRMAN: That was my next
21 It would say New York City, and it 21 question.
22 would also show where that person that 22 MR. KANE: For the occasions that
23 was calling them was calling from. 23 we showed Mr. Kennedy we could actually
24 THE CHAIRMAN: On the 24 watch the cell sites out to essentially
25 unaccountable days, did I understand he 25 Babylon for the most part where he

51 53
1 Hearing 1 Hearing
2 left early? 2 lives.
3 I assume you had some way to 3 THE CHAIRMAN: In all occasions
4 verify that. 4 where they either were unaccounted for
5 Maybe you could explain that a 5 or left early do we track cell sites
6 little more in detail in a moment. 6 outside their area of responsibility?
7 How did you determine the .7 MR. O'FLAHERTY: Yes, we did.
8 unaccountable days where they were 8 MR. KANE: We track cell sites as
9 totally gone? 9 far as Florida, not even being in this
10 MR. O'FLAHERTY: The unaccountable 10 area, for Mr. Hanley.
..7-
11 days on those members, we didn't have 11 For Mr. Kennedy there was a week
12 that daily activity reports to refer to 12 in Puerto Rico that he took five
13 so we used the telephone records and 13 personal days and then five days of
14 when the records showed that that 14 regular, just marked himself as working.
15 member's telephone never hit a New York 15 There was other days that we also
16 City Manhattan cell site for the whole 16 found that was other part of the area,
17 day, at no period was a phone call made 17 eastern Long Island, quite a few days
18 from that area, we counted that as an 18 for the mid locations like that.
19 unaccountable day. 19 We could track their phone
20 If they made one phone call from 20 activity for the entire day on those
21 the area we gave them credit for the 21 days that they are making calls from
22 whole day as being a workday. 22 other part of eastern New York or
23 THE CHAIRMAN: Left early, how 23 completely out of the area.
24 would you determine that; in the same 24 MR. HALBERT: If they made phone
25 manner? 25 calls from land lines you couldn't track

14
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 54 56

1 Hearing 1 Hearing
2 those, could you? 2 THE CHAIRMAN: I thank you
3 MR. Q'FLAHERTY: No, we couldn't. 3 gentlemen for your testimony and your
4 We didn't go into landline 4 investigation.
5 records. 5 I hope if anything comes up a
6 We used the cellular records. 6 little later that you could be subject
7 I feel they are prett accurate 7 to be recalled.
8 because of the frequency that they used 8 MR. CALLAHAN: Yes.
9 their cellular phones. 9 THE CHAIRMAN: Thank you very
10 They were in -- sometimes in the 10 much.
11 hundreds as far as calls during the day 11 MR. O'FLAHER1Y: Thank you.
12 a day so it was a prett consistent way 12 THE CHAIRMAN: The chair calls
13 to keep track of where they were, from 13 Maurice Leary.
14 starting before 6:00 in the morning, 14 Will you please get sworn in.
15 going to late hours at night. 15 MAURICE LEARY, called as a witness, having
16 There wasn't long periods. Most 16 been duly sworn, testified as follows:
17 of them there weren't long periods of 17 THE CHAIRMAN: Maurice, could you
18 time that aren't accounted for. 18 for the committee's sake explain what
19 We didn't go by the last call they 19 your position is with the organization?
20 made in New York City. We went by the 20 MR. LEARY: Yes.
21 first call they made outside of the city 21 My name is Maurice Leary.
22 showing that they were gone. 22 I am the director of operations
23 So we gave them the benefit of the 23 for the New York City District Council
24 doubt of periods of time that there were 24 of Carpenters, a 28-year member, and
25 no calls. 25 also am the ranking member of the union

55 57

1 Hearing 1 Hearing
2 MR. HALBERT: Did any of them 2 on the anti-corruption program along
3 attempt to make an explanation for these 3 with Unitel.
4 calls, their call history? 4 THE CHAIRMAN: For the record, I
5 MR. Q'FLAHERTY: We did not 5 was handed this statement before you got
6 interview them about their call history. 6 up here.
7 When they were presented with that 7 Is this a statement you are going
8 evidence two of them resigned. 8 to read into the record?
9 MR. CALLAHAN: The other one was 9 MR. LEARY: Yes.
10 discharged? 10 THE CHAIRMAN: For the record we
11 MR. Q'FLAHERTY: Discharged, yes. 11 will mark this Exhibit Number S.
12 THE CHAIRMAN: Were the cell 12 (Statement of Maurice Leary was
13 phones that you used in question the 13 marked Exhibit 5 for identification)
14 propert of the district councilor 14 THE CHAIRMAN: Go ahead and
15 local union? 15 proceed.
16 MR. Q'FLAHERTY: The district 16 MR. LEARY: Good morning,
17 council, and we requested the records 17 Mr. Chairman.
18 from the district council to review. 18 Like I said, my name is Maurice
19 Those are the ones who provide 19 Leary, director of operations of the
20 them to us. 20 district council of New York City and
21 THE CHAIRMAN: All of the 21 vicinity.
22 information that you ascertained were on 22 On behalf of the district council
23 company cell phones then, union cell 23 we submit this statement of background
24 phones; is that correct? 24 fact and evidence in connection with
25 MR. Q'FLAHERTY: Yes, it is. 25 your review of the emergency supervision

15
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 58 60
1 Hearing 1 Hearing
2 over Local 157 which was ordered by 2 and that, to the contrary, these shop
3 General President Douglas McCarron on 3 stewards actively concealed their
4 November 21, 2007. 4 activities from their business agents.
5 Local 157 is a constituent local 5 Nonetheless, it was learned that
6 union of this district counciL. 6 there were virtually no job site visits
7 Its business representatives and 7 to the Randall's Island job in Local
8 business manager are however employees 8 lS7's area during the time this activity
9 of the district counciL. 9 was occurring.
10 As such at all times they are 10 Some business representatives had
11 responsible for performing the duties 11 voiced a concern that they were unsure
12 and responsibilities rightfully expected 12 of the district council's expectations
13 of all district representatives. 13 of them.
14 It must go without saying that 14 In response to these concerns in
15 first among those duties and 15 November 2003 we called a meeting of all
16 responsibilities is the expectation that 16 business representatives to discuss our
17 the representative regularly be at work 17 expectations of them.
18 in their jurisdiction when not attending 18 Every representative and business
19 an authorized function or meeting 19 manager was given a document called
20 requiring their presence elsewhere. 20 Business Manager's and Representatives
21 You simply cannot perform the 21 Duties and Responsibilities.
22 fundamental duty of a business 22 They are attached to the back of
23 representative to enforce our collective 23 the copy I submitted, Mr. Chairman. I
24 bargaining agreements without coming 24 have copies of that document for the
25 into work. 25 committee today.

59 61

1 Hearing
2 So fundamental is, in our view, is
3 this responsibility that it does not
4 have to be spelled out in writing.
5 In November of 2003 this district
6 council's anti-corruption program of
7 which I am the ranking union member and
8 our independent investigator discovered
9 large scale fraud by a company called
10 Tri-Built Construction.
11 Tri-Built had over nearly a
12 ten-year period bribed shop stewards at
13 various job sites in the jurisdiction of
14 Local 157, specifically at Randall's
15 Island, and other locals to keep workers
16 off their shop steward sheets, pay men
17 off the books and defraud our benefi
18 funds of millions of dollars of
19 contributions.
20 If there was a silver lining at
21 all to all of this troubling situation
22 it was that no business representative
23 was found to have been involved in the
24 company's scheme or to have been in
25 cahoots with any of the shop stewards
1 Hearing
2 Among the duties detailed in that
3 document and discussed at the
4 November 2003 meeting are, number 1,
5 that representatives must make a good
6 faith effort to regularly visit all jobs
7 assigned to them; number 2, that the
8 business manager would ensure that every
9 job had a business representative
10 assigned to it; and, number 3, that the
11 business representative complete his or
12 her daily activity report and submit
13 them to their manager each week who
14 shall ensure that they have been
15 completed.
16 In January 2005, with the
17 knowledge of my EST, Michael Forde, and
18 our executive offcers, I sent out a
19 reminder to all business managers
20 restating our policy on this subject.
21 The memo read, "All locals must
22 continue to forward their business
23 agents' weekly activity report and the
24 business managers' weekly confirmation
25 form to the district council on a weekly

16

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 62 64

1 Hearing
2 basis."
3 Copies of these forms to be used
4 were provided to the locals.
5 We believed all our business
6 agents and managers were dedicated and
7 trustworthy individuals who could be
8 counted on to perform their functions
9 with a minimum of hand-holding and daily
10 direction by the central offce.
1 Hearing
2 reliable. We were assured the data was
3 accurate.
4 During the week of November 13,
5 2007 the affected representatives were
6 then summoned in to meet with the
7 executive officers.
8 Each of them was given the memo
9 the II had written about their
10 individual actions.

11 Unfortunately, our faith in some 11 They were told they could consider
12 of the Local 157 representatives would 12 the allegation made about them and they
13 prove to be mistaken. 13 could challenge the II if they desired
14 In early November the district 14 to do so and that, in the meantime, no
15 council's independent investigator asked 15-- final decision would be made about their
16 for a meeting with me and the executive 16 employment status.
17 officers of the counciL. 17 The business manager had already
18 He informed us he had serious 18 indicated his intention to retire.
19 concerns about the performance and 19 One business agent angrily
20 conduct of several business 20 protested he was being railroaded and
21 representatives working in Local 157 and 21 discriminated against.
22 the business manager. 22 One offered some explanation
23 He gave us memorandums outlining 23 concerning his personal life for what he
24 his investigative findings and concerns. 24 had done although he did not admit all
25 Those memoranda outlined a picture 25 the allegations made about him.

63 65

1 Hearing
2 of both non-performance of their duties
3 and, in addition, non-attendance at work
4 that was disturbing, to say the least.
5 The II's evaluation was made by
6 his investigators from attendance,
7 telephone and other records provided by
8 the district council and Local 157.
9 He reported that two
1 Hearing
2 One seemed somewhat sorry for what
3 he had done and willing to accept a
4 measure of disciplinary action.
5 On Saturday, November 17, 2007 I
6 met with the EST, president and vice
7 president of the district council and
8 our legal counsel to discuss what action
9 to take.

10 representatives and the business manager 10 The consensus was that if the
11 of Local 157 had not completed their 11 allegations against these agents were
12 activity sheets in nearly three years 12 true and they did not try to contest
13 during which time they had not conducted 13 them the appropriate disciplinary action
14 regular job site visits. 14 was that they be terminated from
15 The most disturbing of all, they 15 employment.
16 were not at work in their jurisdiction 16 The business manager had to be
17 when they reported themselves working a 17 fired based on his prior two-week
18 regular day for time well in excess of 18 suspension, his own failure to complete
19 any allowable time off. 19 activity reports for the jobs he was
20 Another business agent did 20 responsible for and his long term
21 complete his daily activity sheets and 21 failure to properly manage the agents
22 had attendance discrepancies but had not 22 under his charge.
23 exceeded his annual leave time. 23 The agents who had failed to
24 The executive offcers challenged 24 complete daily activity sheets for
25 the II to make sure his information was 25 several years despite warnings about

17

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 66 68
1 Hearing 1 Hearing
2 doing so had also falsified attendance 2 without a rudder.
3 records, significantly exceeded 3 The more we discussed it, the
4 allowable time off and had accepted pay 4 clearer it became. We had to insist on
5 for time they wouldn't have been 5 these brothers resigning from their
6 entitled to. 6 elected positions and district council
7 Therefore, they violated the trust 7 employment or terminate their employment
8 of the district council and all members 8 and fie charges against them to have
9 of the local who had put in them and 9 them removed from office.
10 also had to be discharged. 10 In order to protect the interests
11 The final agent who had completed 11 of the members of Local 157 EST Forde
12 his activity sheets over the years but 12 contacted General President McCarron to
13 had inconsistent and inaccurate 13 inform him of the state of affairs we
14 attendance time records had no prior 14 were facing.
15 history of discipline. 15 President McCarron quickly
16 The executive officers believed he 16 understood the situation and promised
17 should be given the benefit of the doubt 17 any support or guidance he could.
18 on the question of termination. 18 We told him one more shot at
19 He would be issued a disciplinary 19 talking to the individuals would be
20 suspension, docked any remaining leave 20 taken on Monday, November 19, 2007.
21 time for 2007, which is more days than 21 On Monday, November 19 each of
22 the II had considered unaccounted for, 22 these individuals were called in and
23 transferred to another area and given 23 spoken to individually.
24 the opportunity to show improvement. 24 The three individuals to be
25 The issue that remained was what 25 terminated were offered the opportunity

67 69
1 Hearing 1 Hearing
2 the fate of Local 157 would be as a 2 to resign. They had until Wednesday,
3 result of this scandaL. 3 November 21 to inform us of their
4 The agents affected held the 4 decision and to come into the council
5 positions of president, vice president 5 and sign a resignation agreement.
6 and financial secretary of the locaL. 6 On Wednesday, business manager and
7 If these individuals had violated 7 Local 157 president William Hanley and
8 their trust and duties to the district 8 business agent and Local 157 financial
9 council and the members of their local 9 secretary Fred Kennedy signed
10 how could they be allowed to keep their 10 resignation agreements.
11 positions in the local? 11 Business representative and Local
12 At least internal union charges 12 157 vice president DiLacio did not
13 would have to be brought against them 13 appear.
14 which could result in their removal from 14 We reported the status of events
15 office or possible expulsion from the 15 to General President McCarron and on the
16 brotherhood. 16 same date he issued his order of
17 As we were discussing this we were 17 supervision.
18 not unmindful of the fact that another 18 That is what brings us here today.
19 Local 157 executive board position was 19 That is my statement,
20 already vacated and still vacant as a 20 Mr. Chairman.
21 result of the resignation of Frank 21 THE CHAIRMAN: Brother Leary, as I
22 Proscia following his guilty plea in 22 understand it you have a business
23 federal court. 23 manager and could you -- had you a
24 As we later came to say Local 157 24 business manager at lS7?
25 was fast approaching being a ship 25 What was his name?

18
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 70 72

1 Hearing 1 Hearing
2 MR. LEARY: William Hanley. 2 thank you for being assembled here today
3 THE CHAIRMAN: Hanley was the 3 and also thanking Mr. McCarron for his
4 business manager who in turn was the 4 prompt response to our local's debacle.
5 direct supervisor over the remaining 5 My name is Bill Walsh. I have
6 agent? They reported to him? 6 been a member of this union for 20
7 MR. LEARY: Correct. 7 years.
8 THE CHAIRMAN: Mr. Hanley was one 8 I have had the honor of being
9 of those who in fact resigned as 9 elected as the first financial secretary
10 business manager? 10 for the newly formed local 157 in 2000
11 MR. LEARY: Yes. 11 and was re-elected to a second term in
12 THE CHAIRMAN: It was his 12 2003.
13 responsibility to oversee the duties of 13 I attended the UBC convention in
14 the other agents who in turn were doing, 14 Chicago as a delegate and have been
15 I guess, as allegedly Mr. Hanley was 15 through the delegate training class at
16 doing, that was, not showing up? 16 the Las Vegas training center.
17 MR. LEARY: Correct. 17 I also served two terms as
18 THE CHAIRMAN: No questions of the 18 delegate to the New York City District
19 committee? 19 Council of Carpenters.
20 MR. SIMMONS: Not at this time. 20 During this training as delegate I
21 MR. HALBERT: No. 21 was introduced to a book called Who
22 THE CHAIRMAN: You are dismissed 22 Moved My Cheese written by Dr. Spencer
23 subject to recalL. 23 Johnson.
24 We haven't gone over all the 24 Well, anyone who has read this
25 exhibits. 25 book wil know here at Local 157 someone

71 73

1 Hearing 1 Hearing
2 Thank you very much. 2 has indeed moved our cheese.
3 The committee will call Billy 3 I recommend this book to all our
4 Walsh. 4 members.
5 BILLY WALSH, called as a witness, having 5 It is time to look for new methods
6 been duly sworn, testified as follows: 6 to deal with upcoming events.
7 THE CHAIRMAN: Brother Walsh, are 7 While I was financial secretary
8 you a member of lS7? 8 back in 2000 we had over 4800 members in
9 MR. WALSH: Correct. 9 our locaL. We now have a little over
10 THE CHAIRMAN: In what capacity do 10 4,000 members.
11 you serve? 11 We must keep the history and
12 MR. WALSH: I am a working 12 integrity of the east side of New York
13 carpenter. 13 City alive and bring back a productive
14 THE CHAIRMAN: You handed me 14 community.
15 before you were sworn in a copy -- is 15 Is it possible to get some water?
16 this a copy of your testimony? 16 It appears that our local has been
17 MR. WALSH: Yes, it is. 17 operating as a self-serving hierarchy
18 THE CHAIRMAN: We will mark that 18 for many years.
19 as Exhibit Number 6. 19 THE CHAIRMAN: Take your time.
20 (Walsh Statement was marked 20 MR. WALSH: Any board member or
21 Exhibit 6 for identification) 21 delegate has had to have seen what was
22 THE CHAIRMAN: Thank you, and 22 going on.
23 proceed, Brother Walsh. 23 By not saying something to stop or
24 MR. WALSH: Good morning. 24 bringing this to the attention of their
25 I would like at this time to say 25 superiors is just as responsible for why

19

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 74 76
1 Hearing 1 Hearing
2 we are here today. 2 wanted to be heard and now is the time
3 There is no way you work as 3 to have our leaders listen to our voice
4 closely together as our offcials have 4 as one union.
5 worked together you cannot see the 5 How can we organize the non-union
6 errors that have been made. 6 sector if our own house is a mess?
7 Our fundamental beliefs and 7 Such past offcers are trying to
8 commitments have been violated. 8 step up now with web sites and
9 The problem cannot go on. The 9 convenient photos but it is much too
10 problem that can go on along with the 10 little too late.
11 hierarchy you see is sometimes people 11 To gain the trust of the current
12 put self-interest ahead of collective 12 membership we must see all new faces and
13 interest. 13 attitudes.
14 It becomes a tendency to rely on 14 This is a time for change and
15 routines instead of thinking. 15 unity in our great locaL.
16 This will lead to suppression of 16 There is no place for back biting,
17 conflict and lets fear drive our desires 17 finger pointing and scapegoats but to
18 to tell the truth. 18 move on as one union, united and
19 For many years the fear factors 19 prosperous.
20 kept members away and not to get 20 We as members must make the
21 involved. 21 fundamental choices to bring vision,
22 It is time to let our members feel 22 current and commitment for change.
23 that they will be listened to and truly 23 If we put on the right people back
24 be a part of their local union. 24 on our executive board and delegate body
25 Disempowered members get 25 we will come back stronger than ever.

75 77
1 Hearing 1 Hearing
2 frustrated and find ways to act out 2 I am sure Mr. McCarron will be
3 their resentment and anger with the 3 wise with the help of Mr. Spencer and
4 union that robs them of their 4 Mr. Forde to place the right people in
5 self-expression. 5 the job until we can have elections.
6 Members who feel powerless will 6 Fair elections are extremely
7 look for ways to get even. This will 7 important for our local and the union to
8 not make us a stronger local but will 8 move on.
9 make things worse. 9 They must be run more evenhandedly
10 We must rise above blaming each 10 in our common ground.
11 other for the assumptions we cannot fix 11 In the past we have had our
12 in our locaL. 12 elections at the local where members
13 I feel we must embrace our 13 were intimidated with a long history and
14 potential and hear the unheard. 14 fear tactics used to force people to
15 The inner-voices of our local are 15 vote.
16 a threat to those who are into 16 The district council is the best
17 self-interest and not a collective 17 venue for voting.
i8 interest. 18 We must also embrace new
19 It is time to erase the blackboard 19 technologies offered today and modernize
20 and put a new face at our locaL. 20 our voting practice such as computers,
21 If we do not clean the slate you 21 mail-in ballots for all members as well
22 will be inviting back old problems to 22 as in-person voting?
23 come back in the future. 23 The New York City Transit
24 When we pull a tooth one must get 24 Authority lets their members vote in all
25 all the roots. Our members have always 25 of the above methods as well as on the

20
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 78 80

1 Hearing 1 Hearing
2 phone with a PIN number. 2 and justice. Let's all pull together
3 Most unions around the country 3 and be the best union members we can.
4 vote in this fashion. 4 Happy holidays and God bless.
5 I hope our leaders in Washington 5 I also have attached to that
6 will see and act on our antiquated 6 something that didn't necessarily have
7 methods. They must step up and set a 7 to be read now but it is just my
8 new protocol for all its members. 8 opinions on local elections and if they
9 By making voting more democratic 9 are fair or not.
10 is to let the unheard be heard and this 10 THE CHAIRMAN: We will take them
11 will truly be the voice of the 11 under advisement.
12 membership. 12 MR. WALSH: Thank you very much.
13 The fact is that most -- most 13 MR. SIMMONS: I have none.
14 times of elections the incumbents who 14 THE CHAIRMAN: Thank you very much
15 are usually all paid employees and work 15 for your testimony, Brother Walsh.
16 year round unlike the rank and file 16 The chair calls Wayne Porter.
17 members run slates. 17 Is Brother Porter here?
18 When they pull all of their funds 18 The chair calls Robert Iulo for
19 together there is no way a work 19 the record.
20 carpenter can economically compete with 20 For those of you who wish to
21 the stockpile of cash accumulated as a 21 submit something in writing we will
22 group. 22 accept it but it is not necessary. You
23 Perhaps the union can step in and 23 can give your testimony. The court
24 help out with mailouts to those who need 24 reporter will get it all down.
25 it. 25 I want to not discourage someone

79 81

1 Hearing 1 Hearing
2 I hope today we, as a local, will 2 from giving testimony and just go ahead
3 listen and hear each other's concerns 3 and read through your notes. We want to
4 for a better future. 4 hear from you.
5 I don't believe as a group we will 5 Some of you have nothing in
6 get all the answers to our questions at 6 writing but we don't want to dissuade
7 this hearing but when the facts do come 7 anybody from giving testimony that may
8 out on the board assembled here today 8 be pertinent to this hearing.
9 will mail out the results to all 9 Go ahead and be sworn in if you
10 concerned. 10 would, Brother Iulo.
11 We must know all the wrong deeds 11 ROBERT IULO, called as a witness, having
12 and crimes committed by our past leaders 12 been duly sworn, testified as follows:
13 to learn from and then move on. 13 THE CHAIRMAN: Brother, could you
14 I just wanted to thank all the 14 explain what your position with the
15 members that came down today that gave 15 local is?
16 up a day's pay to come here and 16 MR. IULO: I am a member of Local
17 participate in this. 17 157 and a working carpenter.
18 I wanted to mention that. That is 18 As I will state in my statement I
19 not on the report there. 19 have been a delegate. I am a working
20 In closing, I want to thank the 20 carpenter.
21 board here today, Mike Forde, Pete 21 THE CHAIRMAN: Proceed with your
22 Thompson and Benny Sheel for giving our 22 testimony.
23 local the opportunity to hear our 23 MR. IULO: Thank you,
24 voices. 24 Mr. Chairman.
25 We need honest dialogue, respect 25 First of all, I would like to say

21

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 82 84

1 Hearing 1 Hearing
2 thank you to the board and the DC leader 2 The members of Local 157 want to
3 and President McCarron for his decisive 3 keep this local and return it to what it
4 action and prompt action in this matter. 4 should be.
5 My name is Robert Iulo. I am a 5 Members I have spoken to in the
6 member of 157 and formerly of 257 for 21 6 field feel a sense of relief, a sense of
7 years. 7 justification and also a sense of hope.
8 I was a delegate to the New York 8 They are ready to create and support a
9 district council from 2000 to 2005. 9 local that progresses with them.
10 I was a UBC convention delegate in 10 We need men and women that will
11 Chicago in 2000. 11 not forget the daily, small and large
12 I have taken delegate training in 12 concerns of our members and who have the
13 Las Vegas. I am an active shop steward 13 emotions and enthusiasm to get out and
14 and also active in local functions of 14 go out and meet these concerns.
15 157. 15 We all hope that the board will
16 With the resignations and the 16 act toward this goal. We deserve this
17 dismissals and the relocations of our 17 representation and will work to achieve
18 local executive board and business 18 it.
19 agents and delegates we have a great 19 Also I would like to say in
20 opportunity here, and, as I see it, that 20 addition we thank the people who have
21 is the opportunity for change. 21 come down here to support our new
22 This change from the former way 22 movement in this area and we hope to see
23 that the local was administered is what 23 a change that will benefit all of us
24 we are looking for. 24 from workers to anyone above that ladder
25 I believe it must be major in 25 too.

83 85

1 Hearing 1 Hearing
2 scope, it must break with the past, must 2 Thank you very much, Mr. Chairman.
3 not return to the past. This is the 3 THE CHAIRMAN: Thank you, Brother.
4 chance to change, to go into new areas 4 Do you have any questions?
5 and into new ways. 5 I have just one question.
6 Change can be as simple as 6 I assume based on your testimony
7 extending office hours to pay dues or 7 that things must be going a little
8 having local elections run differently 8 better now that they put it under
9 to encourage the maximum voter response. 9 emergency supervision and you are
10 In the elections the things I am 10 certainly in favor of what went down
11 talking about has been mentioned before. 11 there?
12 These reforms can be as has been stated 12 MR. IULO: I am in favor of the
13 mail-out ballots for all members that 13 changes that I perceive will happen.
14 are eligible, voting at the district 14 As I said, I am leary of what
15 council for in-person and also possibly 15 could continue. That is why I mentioned
16 online voting. 16 the reference not to revert back to the
17 Our members need this change. 17 past but there is certainly a sense of
18 Through the past years they have 18 hope in the field too; disappointment,
19 felt that the voices of leadership have 19 certainly, but also hope.
20 quieted. 20 THE CHAIRMAN: Thank you very much
21 Maybe their own connection was 21 for your testimony.
22 only a rare attended local meeting. 22 MR. IULO: Thank you,
23 The wants and needs of the job 23 Mr. Chairman.
24 site situations was and is a sort of 24 THE CHAIRMAN: The chair calls
25 frustration. 25 John, and I won't mess your name up,

22
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 86 88

1 Hearing 1 Hearing
2 Musumeci. 2 It would not be that unusual if a
3 Do you want to come up and get 3 local in the UBC had three of its
4 sworn, John? 4 elected officers resign their position
5 JOHN MUSUMECI, called as a witness, having 5 and retire. Such action would not
6 been duly sworn, testified as follows: 6 necessarily trigger or warrant
7 MR. MUSUMECI: I also have 7 supervision by the internationaL.
8 testimony from Patrick Brennan. He 8 Similarly, if a local in the UBC
9 couldn't be here. 9 had three of its business
10 THE CHAIRMAN: I won't take 10 representatives that were found not
11 anything that is not presented in 11 performing their jobs in a manner
12 person. 12 expected of council employees these
13 Sorry. 13 employees would be reprimanded,
14 If he could make the evening 14 suspended or terminated.
15 session -- 15 Such action would not necessarily
16 MR. MUSUMECI: He is in Florida. 16 trigger or warrant supervision by the
17 THE CHAIRMAN: That doesn't give 17 internationaL.
18 us an opportunity if there is something 18 However, the fact that three
19 in there that is controversial to ask 19 business representatives who are also
20 questions about his testimony. 20 elected officers in a UBC local and were
21 MR. MUSUMECI: I understand. 21 found not performing their jobs in a
22 THE CHAIRMAN: You have testimony 22 manner expected of council employees,
23 you are submitting in writing? 23 such action would, and should, warrant
24 MR. MUSUMECI: Yes. I have 24 an emergency supervision in order to
25 copies. 25 ascertain how far and wide the problem

87 89

1 Hearing 1 Hearing
2 THE CHAIRMAN: Can you submit them 2 has spread.
3 to us up here? 3 I would, therefore, like to thank
4 Thank you very much. 4 EST Mike Forde and the officers of the
5 Brother John, could you explain to 5 district council in their prompt action
6 the committee what your position is with 6 of invoking procedures of the UBC
7 Local lS7? 7 Constitution and asking General
8 MR. MUSUMECI: I was the former 8 President McCarron to order the
9 delegate to the council and treasurer 9 emergency supervision to protect the
10 for the past seven years and a 20-year 10 welfare of the local and its members.
11 member of Local 157. 11 I would also like to thank Eastern
12 THE CHAIRMAN: Go ahead and 12 District vice president Frank Spencer's
13 proceed with your testimony. 13 effort to lead the supervision to
14 MR. MUSUMECI: Good morning. 14 stabilize and set a new direction of
15 Thank you, Chairman Draper, 15 responsible governance for Local 157.
16 members of the committee. 16 I am committed to working with the
17 I am grateful for this opportunity 17 supervision team and to do whatever it
18 to taik with you today about the 18 takes to ensure the orderly íestoration
19 November 26 order by General President 19 and responsible management of Local 157.
20 Douglas McCarron placing Local 157 under 20 Contrary to Independent
21 emergency supervision. 21 Investigator William Callahan's grossly
22 Putting aside the circumstances of 22 distorted assertions that Local 157 is a
23 this emergency supervision for a moment, 23 mismanaged mess and in disarray I would
24 I would like to share with you the 24 like to state the following ten points
25 following observations. 25 for the record:

23

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 90 92
1 Hearing 1 Hearing
2 One, no monies of Local 157 were 2 However, it was not a knock out punch.
3 misappropriated or miss spent. 3 Local 157 will learn from this
4 Two, the books and records of 4 isolated incident. Local 157 will get
5 Local 157 were in order. 5 up off the canvass and emerge bigger and
6 Three, all minutes of Local 157 6 stronger as a result of this action.
7 meetings were properly recorded and 7 Local 157 has many capable,
8 filed. 8 talented members ready, willing and able
9 Four, all communications and 9 to fill leadership roles.
10 expenses were promptly noted and 10 The emergency supervision should
11 approved by the membership. 11 end sooner rather than later.
12 Five, for the past seven years all 12 Your help in getting Local 157
13 meetings were conducted on time and were 13 back to responsible management and self
14 orderly and proper. 14 governance is greatly appreciated.
15 Six, all rights of Local 157 15 However, officers of Local 157, not the
16 members were dutifully protected. 16 international union, should ensure that
17 Seven, all members were given 17 the rights and welfare of our members
18 opportunity to voice their opinion, even 18 are considered and help carry out the
19 constructive criticism, which was always 19 restoration of internal self-governance
20 welcomed. 20 and responsible management.
21 Eight, all members were kept 21 With that said I respectully ask
22 informed through our official web site 22 that this committee at its earliest
23 and bi-monthly newsletter. 23 possible convenience recommend the
24 Nine, Local 157 was always there 24 appointment of a new president and the
25 to assist and help any of its members at 25 reappointment of Local lS7's former

91 93

1 Hearing 1 Hearing
2 any given time. 2 elected officers to office.
3 Ten, the former president of Local 3 Local 157 cannot, and should not,
4 157 had the respect and admiration of 4 remain leaderless for months under
5 its members. 5 supervision with no membership meetings
6 The fact is that the problem with 6 and no voice.
7 Local 157 was its business 7 Our members deserve better.
8 representatives who were district 8 Local 157 needs dynamic leadership
9 council employees were found not 9 and a new direction that will set high
10 performing their jobs in a manner and 10 standards and is committed to the
11 standards expected of council employees. 11 critical work of the UBC.
12 The problem did not spread into 12 In conclusion, Chairman Draper and
13 how the elected officers carried out 13 members of the committee, Local 157
14 their duties with respect to the 14 members are thankful for your help to
15 management and conduct of the business 15 restore our local to self-governance and
16 of Local 157. 16 responsible management.
17 The fact that Mr. Callahan has 17 Local 157 needs a new leader and
i8 tried to connect and equate the i8 it needs its officers back.
19 performance or lack of performance of 19 Local 157 needs to get back on its
20 council employees to the functioning 20 feet sooner rather than later.
21 performance of the management of Local 21 Local 157 needs our own people and
22 lS7's executive board and delegates is 22 resume our place in the decision-making
23 shameful and unwarranted. 23 process that affect the welfare of our
24 No doubt this is a devastating 24 members.
25 blow to Local 157 and its members. 25 Local 157 needs to be that vibrant

24
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 94 96
1 Hearing 1 Hearing
2 powerhouse on the east side of Manhattan 2 and Mr. Callahan's apparently?
3 protecting the interests of our members. 3 You indicated that what he has
4 I appreciate this opportunity to 4 recorded as shamefuL.
5 share my views and look forward to 5 Can you elaborate on that a bit
6 answering any questions you may have. 6 please?
7 Thank you. 7 MR. MUSUMECI: Well, I am drawing
8 THE CHAIRMAN: For the record, if 8 a distinction.
9 you would please read in the third from 9 When I see a letter that says
10 the last paragraph on page 2 so it 10 Local 157 is a mismanaged mess and in
11 would -- you missed that consistent with 11 disarray, I draw a distinction between
12 your testimony as it is submitted, where 12 the elected offcers of the local
13 it says, "Local 157 has already started 13 because by saying Local 157, you are
14 on its road to recovery." 14 smearing the entire, every offcer,
15 You have that on page 2. 15 every member, when he really should be
16 MR. MUSUMECI: I think that is the 16 focusing on the actions of a few
17 wrong copy you have there. I don't have 17 business representatives.
18 that. 18 So for him to categorize Local 157
19 THE CHAIRMAN: Okay. You don't 19 as a mismanaged mess, I feel that is
20 have that. 20 shameful and it is unwarranted.
21 MR. MUSUMECI: No. That might be 21 MR. HALBERT: You indicated that
22 an earlier draft. I apologize. 22 the president of the local had the
23 THE CHAIRMAN: Which draft does 23 respect and admiration of the
24 the court reporter have? 24 membership.
25 I will tell you what. If at all 25 His name was again, please?

95 97

1 Hearing 1 Hearing
2 possible -- 2 MR. MUSUMECI: William Hanley.
3 MR. MUSUMECI: I will make copies 3 MR. HALBERT: Okay.
4 of the one I read. 4 THE CHAIRMAN: I have no further
5 THE CHAIRMAN: All you have to do 5 questions. Thank you very much.
6 is give us that copy. We will have the 6 Could you please get the proper
7 copies made. We all have to be 7 testimony submitted to somebody so we
8 consistent. You understand? 8 can copy it?
9 MR. MUSUMECI: Yes, I do. 9 The chair calls James Viega? Is
10 THE CHAIRMAN: If I could -- do 10 James here?
11 you have any questions of the witness? 11 How about Gerald Matthews?
12 MR. SIMMONS: I don't. 12 For those of you that have cell
13 MR. HALBERT: Brother Musumeci, 13 phones on, will you please turn them
14 how many members of Local 157, 257, 14 off It is kind of disruptive. Thank
15 rather, typically attended meetings? 15 you very much. Put them on vibrate.
16 MR. MUSUMECI: I would say close 16 GERALD MATTHEWS, called as a witness,
17 to 200. 17 having been duly sworn, testified as
18 MR. HÄLBERi: 200 members of 157 18 follows:
19 typically attended monthly meetings? 19 THE CHAIRMAN: Good morning,
20 MR. MUSUMECI: Yes. 20 Gerald.
21 MR. HALBERT: They were held in 21 MR. MATTHEWS: Good morning.
22 this room? 22 THE CHAIRMAN: Could you tell us
23 MR. MUSUMECI: In this room. 23 what position you hold with the local?
24 MR. HALBERT: To what do you 24 MR. MATTHEWS: I am 20-year member
25 attribute the divergence of your view 25 of Local 157.

25
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 98 100

1 Hearing
2 I have been on the political
3 action committee for the district
4 counciL. I did one term with that.
5 Also the advisory committee and just
6 very involved in my locaL. Everyhing I
7 do I am involved in.
8 THE CHAIRMAN: Thank you very
9 much. Go ahead and proceed with your
10 testimony.
11 MR. MATTHEWS: What I would like
12 to say is as far as I hear the
13 investigators saying that as far as
14 phone contact and stuff, being a shop
15 steward with the local which I have been
16 for at least 18 years I have never had a
17 problem getting any business agent on
18 the phone for Sundays even, working a
19 Sunday. I have a problem, I calL.
20 I don't know how they record that
21 as even if they are home or whatever
22 reason but I have never had any problems
23 with that.
24 Just something I wanted to point
25 out. That is why I wanted to come down
1 Hearing
2 MR. MATTHEWS: No, I have not.
3 As far as any of the shop steward
4 classes we have taken we always were
5 taught that the shop steward is the eyes
6 and ears for the local, business
7 counciL.
8 In trusting some of the shop
9 stewards out there they are expecting us
10 also to give back a report or anything
11 so I think the shop stewards are
12 responsible also on anything, not
13 entirely the business agent.
14 THE CHAIRMAN: For the record, you
15 have to understand we have come from
16 different part of the country and
17 things are done different ways.
18 As a shop steward do you have a
19 form that you submit?
20 In listening to the testimony I
21 see that the shop steward who has
22 allegedly pled guilty of wrongdoing had
23 falsified his forms in reporting the
24 number of union members on the job, the
25 number of contributions made to the

99 101

1 Hearing 1 Hearing
2 here today also. 2 trust.
3 As far as mismanaged, I don't 3 Do you fill a form out as a shop
4 feel -- I don't know anything about the 4 steward advising the council of the
5 paperwork in the background or anything 5 number of people on the job?
6 but as far as getting a business agent 6 MR. MATTHEWS: Sure; the hours.
7 on the phone or anything like that I 7 THE CHAIRMAN: Checkbooks.
8 have never had a problem, in the past 18 8 MR. MATTHEWS: Sure. If I was to
9 years, anyway. 9 leave early I would call, mark that on
10 THE CHAIRMAN: Let me ask a 10 my sheet that I was leaving early or if
11 question. 11 a member came in later he was marked in
12 You had mentioned -- are you done 12 as later. That is just the way it was.
13 with your testimony? 13 There might be an occasional few
14 MR. MATTHEWS: Yes. 14 that might try to get away with
15 THE CHAIRMAN: You had mentioned 15 something that I don't know of but as
16 you were a shop steward. 16 far as myself as being able to be in
17 You had heard testimony given here 17 contact with the business agent, I have
18 where we had one or more contractors 18 never had a problem.
19 that were defrauding the -- or allegedly 19 THE CHAIRMAN: It would be safe to
20 defrauding the regional council and its 20 say that basically you are the eyes and
21 trust funds of contributions. 21 ears and you represent the number of
22 MR. MATTHEWS: Sure. 22 members.
23 THE CHAIRMAN: Have you worked on 23 It is important for someone,
24 any of those jobs for any of those 24 either the agent or the council, to get
25 contractors in question? 25 that report and determine that reports

26

VERITEXT/NEW YORK REPORTING COMPANY

212-267-6868 516-608-2400
 102 104

1 Hearing 1 Hearing
2 are being made and contributions are 2 there, Bill was always there.
3 being made to the various trust funds in 3 THE CHAIRMAN: You are giving me
4 somewhat of an accurate manner 4 first -- I don't know --
5 understanding that you are not going to 5 MR. VIRGA: Freddie Kennedy.
6 log every hour of every day of every man 6 THE CHAIRMAN: He was an agent.
7 or woman. 7 MR. VIRGA: And Bill Hanley.
8 MR. MATTHEWS: The report should 8 THE CHAIRMAN: You have to
9 be accurate. 9 understand we need first names.
10 In defense of my local and the 10 It could be someone else for us or
11 other locals, I worked in 608 area, I 11 the court reporter.
12 have had no problems. 12 Proceed.
13 THE CHAIRMAN: Thank you for your 13 MR. VIRGA: They were always there
14 participation and your indulgence in the 14 whenever there was a problem.
15 locaL. 15 If I had a problem or just wanted
16 You are dismissed. Thank you. 16 to talk Fred Kennedy or Billy Hanley,
17 MR. MATTHEWS: Thank you. 17 they was always there.
18 THE CHAIRMAN: Let the record show 18 I am representing them to say that
19 that we have received copies of the 19 they did their job. They were always
20 testimony that was previously given 20 there before and after the hall, the
21 which will be marked as Exhibit 7 -- a 21 hiring halL.
22 corrected copy of Exhibit Number 7. 22 Fred I know for a while. He
23 (Statement of Gerald Matthews was 23 always took the train in. We always
24 marked Exhibit 7 for identification) 24 commuted into the city when I was down
25 THE CHAIRMAN: Did James Virga get 25 at the halL. Freddie was always there.

103 105

1 Hearing 1 Hearing
2 back? 2 Before you brought up a statement
3 James? Do you want to get sworn 3 saying that Billy Hanley never showed up
4 in please? 4 on the Bloomberg job.
5 JAMES VIRGA, called as a witness, having 5 I was at the Bloomberg job,
6 been duly sworn, testified as follows: 6 Nastazzi & White. Billy worked on that
7 THE CHAIRMAN: Brother James, 7 job. Hi, Billy, how are you.
8 could you explain to the committee what 8 So whoever said that they weren't
9 your position with Local 157 is? 9 there is lying. I was there.
10 MR. VIRGA: I have been a member 10 That is all I have to say.
11 for the last 26 years, maybe 27. 11 THE CHAIRMAN: Thank you.
12 I was a round when we had the 12 MR. SIMMONS: When you stated that
13 hiring hall and there was no problem 13 you have come in and visited and you
14 then. 14 found those two gentlemen there was that
15 I come from out east, Ronkonkoma, 15 morning or afternoon most of the time?
16 about 90 miles away. I jump on the train 16 MR. VIRGA: Most of the time it
17 and come to work everyday. 17 would be morning to afternoon, 8:30,
18 \Nhen I was out of work I was down 18 9:00. That is about it.
19 at the halL. Did away with the hall and 19 THE CHAIRMAN: I thank you very
20 now we have to make phone calls. 20 much for your testimony.
21 Every once in a while I do go down 21 MR. VIRGA: Thank you.
22 to the hall and say hello. 22 THE CHAIRMAN: John Greany.
23 THE CHAIRMAN: Proceed with your 23 MR. GREANY: I would like to
24 testimony. 24 respectully decline at this time.
25 MR. VIRGA: Freddie was always 25 THE CHAIRMAN: Thank you, John.

27
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 106 108

1 Hearing 1 Hearing
2 Mitchell Wolfe. 2 me ask you a question.
3 MITCHELL WOLFE, called as a witness, 3 If -- you have got to understand
4 having been duly sworn, testified as 4 we are -- we have nothing to do with
5 follows: 5 this councilor this area so everyhing
6 THE CHAIRMAN: Brother Wolfe, how 6 that we are getting here is new to us.
7 are you today? 7 MR. WOLFE: Right.
8 MR. WOLFE: I am good. 8 THE CHAIRMAN: We don't want to
9 THE CHAIRMAN: Could you tell us 9 know anything until we get here because
10 what your position with the local is? 10 that wouldn't be a proper investigation.
11 MR. WOLFE: A shop steward with 11 I have heard testimony this
12 the local, 157. 12 morning that allegedly tells me that
13 THE CHAIRMAN: Proceed with your 13 based on technology, phone technology,
14 testimony. 14 that the agents, plural, for long
15 MR. WOLFE: I go to the local 15 extended periods of time, were out of
16 quite frequently and usually in the 16 their geographical areas and not
17 mornings and every time that I have gone 17 attending to business.
18 there business agents have always been 18 Were you here earlier and seen
19 there unless they had a day off. 19 that?
20 I am very familiar with them and 20 MR. WOLFE: Yes, I heard that.
21 they have always represented my 21 THE CHAIRMAN: All of this is an
22 interests or the local's interests to 22 assumption on my part.
23 the best of their abilities. 23 When confronted with that some of
24 I know whenever I have had a 24 the agents decided that it would be in
25 problem on a job site I could call up 25 their best interest to sign a

107 109

1 Hearing 1 Hearing
2 any time during the day or the weekend, 2 resignation form.
3 I was always able to get in touch with 3 Wouldn't you believe that someone
4 them, or they would call me back and the 4 who was totally not guilty of what they
5 issues were dealt with. 5 are being accused of, as yourself would
6 You know, I think it is 6 be if you were accused of something and
7 unfortunate that we are witch hunting 7 were not guilty, would have stood up and
8 amongst our own. It tears apart the 8 fought the issue?
9 whole concept of brotherhood. 9 It is a little unclear to me.
10 I mean, I believe that we should 10 Maybe you could explain that a little
11 stand behind our members as they stand 11 bit to me.
12 behind us. 12 MR. WOLFE: As far as phone
13 It is a shame. It is just a shame 13 records, whatever, like I said, whenever
14 the way these members are being treated. 14 I had a problem I could always get in
15 Now, I, myself, have never had a 15 touch with them.
16 problem getting in touch with them or 16 I could go down to the local and
17 being able to talk to them or ask for 17 usually before 9:00 in the morning they
18 guidance. i8 were in the offce.
19 They have always been there to 19 After that they were out on job
20 help me or solve a problem. 20 sites, either trying to turn over job
21 You know, like I said, I think it 21 sites or handling union issues.
22 is a shame the way they are being 22 If the -- as far as you said
23 treated. 23 technology shows that they weren't in
24 That is about all I have to say. 24 there, I don't see where that has a
25 THE CHAIRMAN: Brother Wolfe, let 25 bearing on them being able to perform

28
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 110 112

1 Hearing 1 Hearing
2 their job. 2 afternoon, Brother Kennedy, I will
3 They were always there when I 3 recall you at that time.
4 needed to talk to them. The advice was 4 MR. KENNEDY: I will be here all
5 there, they always came to the job when 5 day.
6 there was an issue. I don't see how 6 THE CHAIRMAN: I do not have any
7 that presents a problem. 7 other witnesses that have requested to
8 They did their jobs. They 8 give testimony.
9 performed their jobs the way they should 9 There was one gentleman, and I
10 have. 10 don't recall -- I made different calls
11 So, I mean, what more can I say? 11 for him.
12 I mean, I think they represented the 12 Is there anybody else in here
13 membership to the best of their 13 wishing to give testimony at this
14 abilities. 14 morning's session? Any members?
15 THE CHAIRMAN: You were sitting 15 No one wishing to give testimony?
16 here when the presentation was made 16 Then what I am going to do is
17 about the allegations against certain 17 adjourn this hearing and we will
18 contractors that may have defrauded the 18 reconvene at I believe it is 1:00, is
19 union? 19 that correct, for the second session.
20 MR. WOLFE: Yes. 20 I thank you all very much for your
21 THE CHAIRMAN: Have you been 21 attendance.
22 employed by either or any of those 22 For those of you who want the
23 contractors? 23 opportunity I would like to have you
24 MR. WOLFE: No, I have not. 24 back here at 1 :00.
25 THE CHAIRMAN: You are not 25 Thank you very much.

111 113

1 Hearing 1 Hearing
2 intimately familiar with those job 2 (Luncheon recess: 10:15 a.m.)
3 sites? 3
4 MR. WOLFE: No, I am not. 4
5 THE CHAIRMAN: No further 5
6 questions. 6
7 Thank you very much for your 7
8 testimony, Mr. Wolfe. 8
9 MR. WOLFE: Thank you. 9
10 THE CHAIRMAN: The chair calls 10
11 Fred Kennedy. 11
12 MR. KENNEDY: I would respectully 12
13 like to decline at this time. Can I 13
14 later on be called? 14
15 THE CHAIRMAN: What I would like 15
16 to do is hear testimony from anybody 16
17 present. 17
..10n
Yûü ündeïstand theïe vvil be a 18
19 larger crowd here tonight. 19
20 We don't want to wait and restart 20
21 calling people that are here today so we 21
22 can get this testimony on the record. 22
23 I want to give ample opportunity 23
24 for those coming tonight to give 24
25 testimony but if you could make it this 25

29
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400
 114 116
1 Hearing 1 Hearing
2 AFTERNOON SESSION 2 None of us before coming here was
3 1:00 p.m. 3 familiar with what was going on here.
4 THE CHAIRMAN: Good afternoon, 4 We have been asked to come in by
5 everybody. It is the 1:00 p.m. We will 5 the general president to do an
6 convene the afternoon session. 6 investigation.
7 We are on the record. 7 After the investigation it was
8 How many of you were not here for 8 asked this morning what happens to this
9 the morning session? There is a few. 9 testimony and what goes on from here.
10 Let me go over -- I will try to 10 As you know, you have been put
11 simplify the rules a little bit. 11 under emergency supervision as per that
12 All of you received a notice, 12 letter sent to you by the regional
13 didn't you, from the regional council 13 council from the general president.
14 regarding this hearing and the purpose 14 We will go back after we get the
15 of the hearing? 15 transcript, we will review the
16 I would first like to introduce 16 transcript, the committee will confer,
17 the hearing's paneL. 17 we will make a recommendation and a
18 To my left is Jack Simmons. Jack 18 finding to the general executive board
19 is a representative of the UBC. 19 of the UBC.
20 To my right is William Halbert, 20 They, in turn, will make a
21 Bill is an executive secretary-treasurer 21 decision as to whether to continue the
22 of the Midatlantic regional council of 22 supervision or what process and steps
23 carpenters which is in very close 23 they will take. That is what will
24 proximity to this area. 24 happen.
25 My name is Michael Draper. I am 25 Today's session will start here at

115 117
1 Hearing 1 Hearing
2 the international vice president for the 2 1:00 which it has, the afternoon
3 western part of the United States. I 3 session.
4 will be chairing this hearing. 4 We had a morning session taking
5 I don't know if -- our other vice 5 quite a bit of testimony.
6 president, Mike Capelli, is an 6 In addition, I would like to point
7 international rep who is assisting us 7 out that anybody in the room wishing to
8 in -- we also have with us another vice 8 give testimony, please do it this
9 president from the eastern district, 9 afternoon if you are present because we
10 Frank Spencer, who gave testimony this 10 would like to keep the evening free for
11 morning. 11 those members who are working on the job
12 Is everybody else in this room a 12 site and the only opportunity that they
13 member of the UBC? 13 will have is to be in attendance this
14 Now, what I would like to do is 14 evening.
15 ask you all to be very courteous. 15 So with that we will begin.
16 If you want to give testimony you 16 The chair will call Kevin Jones
17 were asked outside to sign up your name 17 up.
18 so that I can call you as a witness to 18 When you come up I will ask you to
19 testify in this hearing. 19 come to this table, face the court
20 I want to reiterate that this is 20 reporter, give you full name and be
21 not a prosecution. It is not a triaL. 21 sworn in and then you can do your
22 We are an investigative committee 22 testimony.
23 sent in here by the general president to 23 Do you want to stand up please
24 determine what is going on with the 24 Kevin? He will swear you in.
25 affairs of Local 157 here in New York. 25 MITCHELL WOLFE, called as a witness,

30
VERITEXT/NEW YORK REPORTING COMPANY
212-267-6868 516-608-2400