In Los Angeles, the former president of Service Employees International Union Local 6434, Tyrone Freeman, has been indicted by a federal grand jury of embezzlement of thousands of dollars from the union that represented home health care workers.
He was indicted for the federal crimes of four counts of mail fraud, seven counts of embezzlement, theft of labor union assets, one count of making a false statement, and three counts of subscribing to a false tax return.
The mail fraud charges and embezzlement charges are connected to a scheme where he pilfered money from the Union by diverting reimbursement payments that were linked to the SEIU local. The indictment stated that he collected $2,500 per month from the California United Home care Workers to represent public sector employees that were employed in the home care industry in California.
According to the federal indictment, from January 2007 through August , 2008, he concealed from the Local Executive Board that he was receiving payments of $2,500 per month on top of his regular salary.
The indictment stated that he also used a Union credit card to pay over $8,000 in personal expenses from a 2006 trip to Honolulu, Hawaii, some of it related to his wedding ceremony.
The embezzlement criminal charges are connected to him stealing money from the Union by routing funds through an entity closely that had ties with the union. The Long Term Care Housing Corporation, which was developed to provide affordable housing for members. The indictment stated that he stole almost $17,000 by submitting request to the Union Board to make payments to the Long Term Nosuing Corp without disclosing that he would be using the funds for personal reasons.
The false statement charge stated that he lied to Countrywide Bank when he told them that the Union paid for his personal American Express credit card bills and the lease payments for his Land Rover.
The three tax evasion charges stated that he filed false tax returns in 2006 through 2008, after he failed to report about $100,000 in income.
The mail fraud and making a false statement charges carry a statutory maximum sentence of 30 years in federal prison. The embezzlement, theft of labor union assets and filing false tax returns carries a statutory maximum penalty of 10 years in prison. He is scheduled to appear for an arraignment in a Los Angeles United States District Court in September 2012.
If you have been charged with embezzlement, it is critical to retain an attorney with experience in dealing with federal cases in order to obtain the best result. At Cron, Israels & Stark, we can develop an effective defense strategy early in your case. If you are under investigation about missing funds from work, you need to contact us immediately. If you answer their questions, you are putting yourself in a bad situation. Any statements you make can be used against you later in court. Call our office at 888-895-3607 to set up a free case evaluation with one of our experienced lawyers.
We are well-known as aggressive attorneys and have successfully defended many clients involved in embezzlement and other white collar crime criminal cases. We are also skilled trial lawyers that can help you avoid a conviction or negotiate a settlement that will keep you out of prison.