On August 2, 2018, The U.S. Attorney For The Southern District Of New York Announced That Salvatore Armao Pled Guilty To Covering Up A Union Embezzlement Scheme By Filing False Reports With The Labor Department. “Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (‘DOL-OIG’), and Thomas Licetti, Acting New York Regional Director of the U.S. Department of Labor-Employee Benefits Security Administration (‘DOL-EBSA’), announced that SALVATORE ARMAO, the founder and managing partner of an accounting firm (the ‘Firm’), pled guilty today to making false filings with DOL in order to conceal an embezzlement scheme in which more than $100,000 was embezzled from a labor union (the ‘Union’) and its employee welfare benefit plan (the ‘Plan’).  ARMAO pled guilty before United States District Judge Vernon S. Broderick.” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

  • Armao Was The Founder Of The Accounting Firm The Union Used. “During the period of the embezzlement, the Firm served as the accountant and auditor for the Union and the Plan.” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

Armao Facilitated The Embezzlement Scheme By Falsely Classifying The Union President’s Personal Expenses As “Loans.” “To facilitate and conceal the President-Trustee’s embezzlement, ARMAO falsely classified as ‘loans’ the personal expenses for which the President-Trustee paid using Union and Plan funds in accounting records and in DOL filings for the Union.  In at least 2012, 2013, and 2014, ARMAO falsely classified the President-Trustee’s personal expenses as loans in DOL filings for the Union.” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

  • U.S. Attorney Geoffrey S. Berman: “As A Professional Accountant And Certified Fraud Examiner, Salvatore Armao Was Supposed To Serve As A Check On Labor Fraud, Not A Facilitator Of It.” “U.S. Attorney Geoffrey S. Berman said:  ‘As a professional accountant and certified fraud examiner, Salvatore Armao was supposed to serve as a check on labor fraud, not a facilitator of it.  As he admitted today, Armao knowingly submitted false filings with the Department of Labor and the Internal Revenue Service in order to facilitate and conceal a long-running embezzlement scheme involving a labor union.’” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

The Union President Had Used Union Funds For Personal Expenses Like Spa Treatments And A Gym Membership. “From at least in or about 2010 through in or about 2014, the president of the Union, who also served as a trustee of the Plan (the ‘President-Trustee’), repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical expenses, dues for an actors’ union, personal credit card charges, and ATM cash withdrawals.” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

During A Three Year Period The Union’s President Had Embezzled Over $100,000. “The President-Trustee used his Union credit card to pay for personal expenses and then ‘reimbursed’ the Union with funds transferred from the Plan.  In total, the President-Trustee embezzled more than $100,000 from the Union over approximately three years.” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

Armao Will Be Sentenced In November. “ARMAO’s sentencing is scheduled for November 8, 2018, at 2:30 p.m., before Judge Broderick.” (The United States Attorney’s Office For The Southern District Of New York, “Founder And Managing Partner Of Accounting Firm Pleads Guilty To Making False Filings With The U.S. Department Of Labor,” Press Release, 8/2/18)

 

Tell Congress: Stop the PRO Act

WFI is working to prevent passage of the so-called Protecting the Right to Organize Act (PRO Act)—a wholesale labor reform package that takes the current careful balance of labor rules and tips it greatly in the favor of labor bosses and forced collective bargaining.

The PRO Act robs workers of the right to a secret ballot to form a union, forces union contracts on workers without a vote of approval, and expose workers’ personal contact information to union bosses seeking to organize a workplace. And that’s just the start.

Help us speak out against this woefully misguided and blatantly anti-worker legislation. Review and send the message below to your members of Congress today.

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WFI Key Vote Letter: Opposition to PRO Act

— 02.10.2020 —
Dear Speaker Pelosi and Minority Leader McCarthy: On behalf of the Workforce Fairness Institute (WFI), I am writing to share our organization’s vehement opposition to H.R. 2474, the Protecting the Right to Organize Act (PRO Act). WFI has serious concerns with the broad, overreaching nature of this legislation and the many ways in which it would undermine worker freedom and privacy, while simultaneously threatening businesses and entire industries that keep America’s economy thriving. Please note that WFI will include votes on the PRO Act and its amendments on our Congressional Labor Scorecard, which scores and ranks legislators based on their activity associated with workplace issues. WFI was established to fight for American employees and employers as well as our entire economy. We believe in worker empowerment, the right of workers to be fully informed of the options available for worker-involvement in the workplace, and the right to freely choose whether to organize or not. No individual or group – government, a union or an employer – should be able to intimidate or restrict workers’ in exercising these rights. In an attempt to boost flailing union membership at the expense of workers’ rights, the PRO Act would upend decades of established U.S. labor law and institute myriad anti-employee and anti-employer policies that have already been soundly rejected—by Congress, various federal agencies, or the courts. Among its most blatant affronts to workers’ rights, the PRO Act would eliminate the right to a secret ballot when determining whether to unionize and enforce a “card check” system, exposing workers to the potential for harassment, intimidation, and coercion. The PRO Act would also enforce binding arbitration in union negotiations by a government- appointed bureaucrat; repeal and eliminate right-to-work laws in 27 states, force workers to fund union activities regardless of whether they support them; and threaten the ability of individuals to operate as independent contractors, eliminating traditional economic and employment opportunities and threatening the independence and flexibility of the emerging gig economy. On top of all that, the PRO Act would force all workers’ personal and home contact information to be provided to a union during organizing campaigns – in an electronic, searchable format no less, with no limit on what a union can do with that information. WFI believes in advancing sensible policies that protect and preserve the rights of both employees and employers, and we welcome the opportunity to work with legislators who also support these efforts. However, the PRO Act does not achieve these goals and would instead threaten the rights of both while jeopardizing our entire economy. WFI urges members of the House to strongly oppose the PRO Act. Sincerely, Heather Greenaway Executive Director Workforce Fairness Institute See the letter here.
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