Some Teamster Guys - Major Players Still

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("United"), to enter into a substandard contract and to have United

employees perform Teamster work in the Las Vegas trade show and

convention industries for less pay and benefit fund contributions

than the existing collective bargaining agreement required. As

part of this scheme, which was to the detriment of IBT Local 631

and its members, Passo and Hogan attempted to cause Local 631

officials to enter into a substandard agreement with Simon's

company, of which Hogan's brother, Michael, was an officer. In

apparent violation of IBT procedures, before trying to persuade

Local 631 officials to enter into a substandard agreement with

United, Passo and Hogan never spoke to any United employee or

caused any IBT employee to do so. The United employees did not

designate the IBT or local 631 as their bargaining agent. As part

of this scheme, Passo falsely claimed to the Local 631

International Trustee that high-ranking IBT officials approved the

agreement with United and also lied to his supervisor at the IBT

about the extent of concessions he was urging on the Local on

behalf of the employer.

By their conduct, it appears that Passo and Hogan brought

reproach upon the IBT and breached their fiduciary duties to the

IBT and its members in violation of Article II, Section 2(a) and

Article XIX, Section 7(b)(1) and (2) of the IBT Constitution.

II. SUMMARY

A. Passo and Hogan Colluded with an Employer to Attempt to

Impose a Substandard Contract on Local 631

IBT Local 631, located in Las Vegas, Nevada, represents


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approximately 4,800 members, approximately 1,400 of whom work in

the trade show and convention industries. (Ex. 1 at 192; Ex. 2 at

101) Local 631 is a member of Joint Council 42 in Los Angeles.

Timothy Murphy ("Murphy"), in an election with multiple candidates,

was elected principal officer of Local 631 for the term beginning

January 1, 1999. (Ex. 3)

Local 631 had a master contract with trade show

contractors in Las Vegas, referred to as the "red book" contract.

(Ex. 4; Ex. 6 at 106) The two main trade show contractors in Las

Vegas were Greyhound Exposition Services ("GES") and Freeman

Decorating ("Freeman"). The bargaining unit in the red book

contract included most of the work in the convention industry in

Las Vegas. (Ex. 5 at 52-53; Ex. 6 at 232-34) Pursuant to Article

I, Section E of the red book agreement, the contractors were

required to contact the Local 631 dispatch office for workers. (Ex.

4 at 3-4) The Local 631 dispatch office would then send

individuals registered with the dispatch office to work with a

written dispatch form. (Ex. 7 at 78-79) Nevada is a right to work

state. Members and non-members were eligible to register with the

dispatch office for work. (Ex. 4 at 3-4; Ex. 77) Non-members paid

the Local a monthly dispatch fee and could not be discriminated

against. (Ex. 8 at 18; Ex. 77)

The minimum hourly wage rate under the red book agreement

was $12.49 per hour. (Ex. 4 at 11) In addition, as of June 1,

2000, employers were required to make contributions of $3.75 per

hour for health and welfare benefits and $4.15 per hour to the


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forth in this Agreement.

(Ex. 4 at 12)

In November 1999, Passo, who was then Special Assistant

to IBT General President James Hoffa ("Hoffa"), caused himself to

be assigned as Hoffa's Personal Representative to Local 631. (Ex.

20 at 113-14; Ex. 10)1 At the same time, Hoffa appointed James

___________________

1 As detailed below, from March 1999 through October 1, 2000,

Passo was Special Assistant to General President Hoffa and an

4

Santangelo ("Santangelo"), an IBT Vice President and also the

President of Joint Council 42 and the Secretary-Treasurer of Local

848, to be another of his personal representatives to local 531

(Ex. 13)

On April 5, 2000, Hoffa placed Local 631 in Trusteeship.

(Ex. 14) As detailed below, according to the Trusteeship Notice,

it was placed in Trusteeship because of member dissatisfaction with

the Local's officers, the failure to process grievances, the

subcontracting to non-Teamster employers work Teamsters had

performed, the termination of a business agent for alleged

political reasons and that one of the business agents made an

ethnic slur. (Ex. 14) Hoffa appointed James Wilkerson


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("Wilkerson"), the retired principal officer of IBT Local 14 in Las

Vegas, to be Trustee and Marty Frates ("Frates"), a business agent

in Local 70 in Oakland, California, to be Assistant Trustee. (Ex.

14) Passo was Hoffa's monitor over the Local. (Ex. 12 at 76-77)

In June 1999, prior to Local 631 being placed in

Trusteeship, at an IBT Western Region Delegates meeting, Hogan,

then only the Vice President of Local 714, introduced his brother,

Michael P. Hogan, Sr. ("Michael Hogan"), to David Breymann

("Breymann"), then the dispatcher at Local 631. (Ex. 15 at 25-26;

______________________

International Representative. (Ex. 11) Effective October 1, 2000,

Passo was removed as Special Assistant to the General President.

(Ex. 11) He remains an International Representative. (Ex. 11)

Although his title was eliminated, his duties were unchanged. (Ex.

12 at 64, 197-99, 217-18)

5

Ex. 5 at 24-25)2 As detailed below, Michael Hogan was Vice

President 3f United Service Companies, which performed janitorial

and other services in the trade show industry at considerably less

than the IBT contract wages. (Exs. 18-19; Ex. 15 at 18; Ex. 20 at

87) Michael Hogan was also the CEO of Show Biz USA, a trade show

contractor. (Exs. 22-23; Ex. 15 at 18)

In June 1999, Hogan introduced his brother to the Local

631 dispatcher because United, the employer, wanted to enter into

an arrangement with Local 631 to supply labor to trade show


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contractors. (Ex. 15 at 22-26)' As detailed below, shortly after

Hogan's June 1999 introduction of his brother to Breymann, United

Vice President Michael Hogan and United CEO Simon met with Murphy,

then Local 631's principal officer, and Breymann to discuss such an

agreement. (Ex. 25 at 25-27; Ex. 5 at 21, 27) Michael Hogan and

Simon proposed that when the Local 631 dispatch office could not

fill a trade show contractor's call for workers, United would

_______________

2 On August 8, 1996, based upon an IRB recommendation, the

IBT placed Local 714 in Trusteeship based upon nepotism, conflicts

of interest and a lack of democratic procedures at the Local. The

majority of issues that caused Local 714 to be placed in

Trusteeship concerned the Local's trade show and movie division.

(Ex. 16) As a result of the Trusteeship, Hogan, who had been the

Local's principal officer, was removed from office. As detailed

below, after the Local was released from Trusteeship, Hogan was

appointed Vice President of Local 714 in early 1999. (Ex. 15 at 10)

On or about March 9, 2000, Hogan was appointed President of Joint

Council 25 in Chicago and in May 2000 Hogan was appointed an

International Representative. (Ex. 15 at 14)

United Temps of Nevada, Inc., one of the United Service

Companies, was incorporated in Nevada on March 1, 1999. (Ex. 24)

6

supply the labor. (Ex. 25 at 25-28; Ex. 5 at 21, 27, 29)4 The


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United employees would not be members of Local 631. (Ex. 25 at 114-

115). Under the employer's proposed arrangement, the trade show

contractors would pay United. United would then pay its employees,

who would be paid less than the amount required under the red book

contract. United also would make no benefit fund contributions.

(Ex. 25 at 114-115; Ex. 5 at 29-32) Secretary-Treasurer Murphy and

dispatcher Breymann summarily rejected the proposal. (Ex. 25 at 27-

28; Ex. 5 at 30) When Local 631 was placed in Trusteeship, Murphy

and Breymann were terminated.

As detailed below, prior to Local 631 being placed in

Trusteeship, Passo, Hogan, Santangelo and International

Representative Robert Turner ("Turner") on March 1, 2000 went to

Local 631 to instruct Murphy to take certain actions. (Ex. 15 at

86) At that time, Passo, Santangelo and Turner had each been

appointed Personal Representatives of the General President to

Local 631. (Ex. 32 at 14) Passo brought Hogan, who held no

International position and had no responsibilities with respect to

Local 631, to attend this meeting. (Ex. 21 at 263)

Hogan had no official IBT involvement in Local 631. (Ex.

_________________

4. As detailed below, prior to the Trusteeship, when the Local

631 dispatch office could not meet the trade show contractor's

calls with people registered in the dispatch office, the

dispatchers contacted the other two IBT Locals in Las Vegas and the


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Carpenters Union in order to dispatch union members at union wages

to the trade show contractors. (Ex. 5 at 13-14)

7

12 at 60) His previous intrusion into its affairs was based upon

requests from his brother, an employer. Throughout the applicable

period, Hogan would continue to have no official role with Local

631. (Ex. 12 at 60) Passo was Hogan's conduit into Local 631

affairs. Passo and Hogan spoke to each other regularly while Passo

was involved with Local 631, both before and after the Trusteeship

was imposed . Hogan remained entwined with Passo and employers in

attempting to wring concessions from the Local.

After Hoffa appointed a Trustee and an Assistant Trustee

at Local 631, Passo continued to exercise substantial influence

over the Local's affairs. Hoffa's Executive Assistant Carlow Scalf

("Scalf") acknowledged that he and Hoffa had made Passo responsible

for "monitoring" Local 631. (Ex. 12 at 76-77) Hoffa admitted the

decisions made about the Local to a large extent were based solely

upon information Passo alone provided. (Ex. 78 at 43-48)

Throughout the time period involved, Hoffa and Scalf would grant

enormous power over the Local to Passo and ignore concerns from

other IBT officials about Passo's suspicious and disruptive

conduct.

After Local 631 was placed in Trusteeship, Hogan


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____________________

5 During the two year period from March 1, 1999, when Passo

became Special Assistant to Hoffa, through February 25, 2001, the

last date for which Passo's telephone records were obtained, there

were, at least, 339 calls from Passo's IBT cellular telephone to

Hogan's cellular telephone or Hogan's home telephone and from

Hogan's cellular telephone to Passo's cellular telephone. (Exs. 33-

76, 282-84)

8

introduced Passo to United CEO Simon. Hogan wanted Passo to assist

United in securing an arrangement with Local 631 to supply labor to

trades show contractors. (EX. 20 at 64-67, Ex.15 at- 40-41) 6. At no

time did Passo or Hogan or any IBT employee on their behalf speak

to any United employee. (Ex. 20 at 109-111; Ex. 15 at 61) Indeed,

no one from the IBT attempted to organize the United employees.

(Ex. 79 at 19; Ex. 80 at 23; Ex. 81 at 29)'

Shortly after Local 631 was placed in Trusteeship, Passo

and Simon began attempting to convince Local 631 to agree to

concessions for United that would be substantially below the red

book contract. Passo would rendezvous with Simon at bars and

restaurants in Las Vegas. Passo agreed to Simon's proposals under

which the United employees would receive lower wages than the red

book contract required. (Ex. 20 at 204) Passo also agreed that

Simon should have concessions from payments for benefits the red


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business agent for the trade show industry whose job Passo had

obtained for her, to meet with him and Simon at a restaurant. (Ex.

6 at 89-91, 93; Ex. 26 at 40-41) Whitfield requested Local 631

Assistant Trustee Frates, whom Hoffa had appointed and Passo had

not invited, to attend this steakhouse dinner. (Ex. 6 at 93-95; Ex.

82 at 49-51) Passo and United CEO Simon urged Frates and Whitfield

to have the Local enter into an agreement with United which

deviated substantially in United's favor from the red book

contract.

Under this Passo proposal, United would be called after

the Local 631 dispatch office was exhausted. (Ex. 6 at 103-04; Ex.

82 at 52-53; Ex. 20 at 161-62) As a consequence, Simon, instead of

the Local 631 dispatch office, would control which United employees

were sent to work. (Ex. 6 at 100-01; Ex. 82 at 51-52; Ex. 20 at

10

161-62; Ex. 84) United would pay its employees $8.00 per hour as

opposed to what signatories to the red book agreement would have

paid, the minimum hourly rate of $12.10 per hour plus benefit

contributions of $7.90 per hour. (Ex. 4 at 11, 26-27; Ex. 6 at 97)

Under the Simon-Passo arrangement described at this dinner, no

benefit fund contributions would be made on behalf of the United

employees until they had worked more than 150 hours in the

industry. (Ex. 6 at 97-98)3 Given the nature of Simon's workforce

and his ability to control who worked, it was doubtful many, if

any, would ever reach that total. Frates and Whitfield refused to


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enter into such an agreement. (Ex. 6 at 97-104, 106-08, 114-116;

Ex. 82 at 73)

Passo also urged Local 631 Trustee Wilkerson to enter

into the agreement with Simon's company. (Ex. 26 at 43-46, 49)9

Consistent with business agent Whitfield's testimony, Wilkerson

testified that, under Passo's proposed arrangement, the United

employees would be paid $8.00 per hour. (Ex. 26 at 48-49)

This agreement evolved. In the best deal Simon and Passo

offered the union reflected in Passo's handwritten agreement with

United sent to the IBT's Legal Department on August 29, 2000,

months after this dinner meeting, the United employees would have

had to work 250 hours in the industry before any benefit fund

contributions would be made on their behalf. (Ex. 84)

According to Trustee Wilkerson, under Passo's proposal,

after the Local 631 dispatch office was exhausted, Simon's company

would be called instead of contacting the other IBT Locals in Las

Vegas and the other AFL-CIO affiliated unions for workers as had

been the Local's practice. (Ex. 26 at 45)

11.

Wilkerson, who described Simon's company as a labor broker, refused

to enter into Passo's proposal. (Ex. 26 at 44-46, 49)10

Passo frequently discussed Simon's proposal with Hogan


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(Ex. 20 at 67-68, 78-83, 105-106, 176-77, 202-05; Ex. 21 at 283-84,

297; Ex. 15 at 76-77, 93-95, 99, 102-104, 110-11, 115, 117, 120)

On its face, the Passo proposed arrangement with Simon gave the

contractors a strong economic incentive to use United rather than

higher paid individuals dispatched from Local 631. (Ex. 6 at 108)

It also undercut the United employees who could have obtained the

work at the contract wage and with benefit contributions by

registering with the Local 631 dispatch office either as Local 631

members or non-members. Only Simon and, perhaps, the contractors

who used his company benefited from the cheaper labor.

Even under the most favorable description of the proposed

arrangement, Passo, Hogan and Simon would have created a class of

Teamsters in the Las Vegas trade show and convention industry that

would have received less in wages and have less benefit fund

contributions made than any non-union worker who merely registered

with the Local 631 dispatch office. (Ex. 84) Indeed, as detailed

below, as late as the end of August, Passo's handwritten agreement

with United provided for new classes of employees called "D1" and

10 Other experienced IBT officials, including International

Vice President Santangelo and Assistant Local 631 Trustee Frates,

also described United as a labor leasing company. (Ex. 32 at 26-27;

Ex. 82 at 77)

12

"D2" employees, who would have been paid wages less than the red


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book agreement for, at least, the first 1,000 hours they worked in

the industry. (Ex. 84l)

Passo's efforts to cause Local 631 to enter into the

substandard agreement with United had no union benefit but were

designed to benefit the company and not its employees with whom

Passo shunned contact. Although devoting considerable time and IBT

resources to assisting Simon, Passo never spoke to any of the

United employees. (Ex. 20 at 109-110) Passo, Hoffa's very active

Local 631 monitor, never urged Local 631 to try to organize the

United employees. (Ex. 79 at 21-22) The United employees never

signed Teamster membership application cards or showing of interest

cards. (Ex. 20 at 207) Moreover, Passo's and Hogan's efforts to

pressure Local 631 officials to enter into an agreement with United

were inconsistent with the Local's Bylaws and the IBT's Organizing

Guide. (Ex. 293)11

_______________

11 For example, Section 27 of the Local 631 Bylaws provides

in pertinent part:

Whenever a collective bargaining agreement is

about to be negotiated, modified or extended

at the request of this Local union, the

principal executive officer shall call a

meeting at which the membership shall

determine and authorize the bargaining demands


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to be made. The Local Union Executive Board

shall determine whether such meeting shall be

limited to the members in a particular

division, craft or place of employment . . . .

(Ex. 296 at 43) No analogous meeting was held with the United

13

Moreover, Passo never urged anyone to explain to the

United employees how to register with the dispatch office so they

would be paid pursuant the red book agreement when work was

available. Furthermore, if the Local had agreed, as Passo

continuously urged, to permit Simon to pay United's workers less

and give Simon a lower benefit contribution package than the red

book contract required for subcontractors, Passo would have caused

a substantial weakening in the Local's bargaining position in the

2001 red book contract negotiations. This latter was so obvious a

point that an employer raised it with Passo. (Ex. 20 at 203)

Trustee Wilkerson, Assistant Trustee Frates and business

agent Whitfield repeatedly rejected the proposed substandard

arrangement with Simon Passo pressed on the Local. Passo continued

in the face of all Local opposition to strive to assist Simon.

Passo repeatedly urged Wilkerson, Frates and Whitfield to sign and

support an agreement with major concessions to United. Indeed, to

secure Simon his favorable arrangement, Passo lied to Wilkerson

through representing falsely that besides his co-schemer Hogan,

Santangelo and Scalf wanted Wilkerson to agree to United's terms as


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arranged with Passo. (Ex. 26 at 88-89) Scalf and Santangelo denied

____________________

employees. (Ex. 20 at 109-110) Not only were no United employees

consulted, but also Local 631 members who worked in the convention

industry and who would be impacted by Passo's planned concessions

were also not consulted.

14

Passo's representations. (Ex. 32 at 31, 41-43; Ex. 12 at 99-102)12

Wilkerson, Frates and Whitfield each separately told

Passo that his substandard proposals were unacceptable and United

had to enter into the red book agreement. (Ex. 26 at 44-50; Ex. 6

at 97-104; Ex. 82 at 73) Wilkerson and Frates emphasized to Passo

that the red book agreement contained a "most favored nations"

clause which would allow all the trade show contractors to demand

that they benefit from the concessions Passo was urging Local 631

to bestow on United. (Ex. 26 at 45-50; Ex. 82 at 69-70) At his

sworn examination, Passo claimed he had not understood the "most

favored nations" clause. (Ex. 20 at 159-60) This claim, as with

others Passo made, is not credible. That an employer under

contract would get to pay the same lower wage rate and make the

same reduced benefit fund contributions the union negotiated for

the same work with another employer is not difficult to understand.

There is no reason this simple concept would have escaped Passo.

Given the vast unfettered authority Hoffa delegated in at least two

Locals to Passo and the freedom Scalf, his supervisor, allowed him,


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with the dispatch office so they would be paid red book contract

wages when work was available. Nor did they suggest to the Local

it take steps to generally increase workers registered with the

Local 631 dispatch office. On the contrary, Passo, as discussed

below, using his prestige and power as Hoffa's monitor, advocated

the adoption of measures that would make it increasingly difficult

for the Local to meet the call. In sum, as International

Representatives, the sole Hogan-Passo solution to this "problem"

was to have the Local enter into a substandard contract with

Hogan's brother's company.

Among the hurdles Passo created for the Local meeting the

16-

call was that he opposed business agents directly dispatching

workers when the dispatch office was closed. (Ex. 6 at 72-73; Ex.

20 at 154-55; Ex. 82 at 44-45)13 Without anyone acting as a

dispatcher, obviously the Local could not meet a call. In

addition, Passo also strenuously opposed contacting non-IBT Locals

for workers after the Local 631 dispatch office had exhausted its

list. (Ex. 6 at 72-73; 88, Ex. 20 at 142, 45-46)14 This resulted,

as discussed below, in non-unionized United workers being used.

Passo and Hogan frequently communicated about the United

arrangement. (Ex. 20 at 67-68, 78-83, 105-106, 176-77, 202-05; Ex.

21 at 283-84, 297; Ex. 15 at 76-77, 93-95, 99, 102-04, 110-111,

115, 117, 120) In late July or early August 2000, Hogan


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orchestrated a lunch among himself, Simon, Passo and Hoffa in

Chicago. (Ex. 20 at 165-66; Ex. 78 at 28; Ex. 15 at 66-67) The

proposed agreement with United was discussed at this meal. (Ex. 78

at 28; Ex. 15 at 69) According to Hoffa, Passo did not disclose to

him either before or after this lunch that he was pushing Local 631

_________________

13 Labor calls were frequently at night when the dispatchers

were not on duty. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25 at 33-34)

14 Passo's and Hogan's explanation for embracing the lower

paid non-union help solution was that the non-IBT unions would

eventually infringe upon the IBT's jurisdiction if non-IBT union

members were referred to work from the Local 631 dispatch office

after all individuals registered with the dispatch office were

working. (Ex. 20 at 141-51; Ex. 15 at 41-42) Showing the falsity

of this concern is that Passo's and Hogan's solution to this

speculative problem was to allow the trade show contractors to use

non-union employees of Hogan's brother's company who were paid a

rate lower than the red book contract.

17

officials to enter into an agreement with Simon's company. (Ex. 78

at 29) Indeed, he suspiciously did not indicate to Hoffa that he

had had any previous dealings with Simon._ (Ex 79 at 19) Again, at

this stage, despite involving the General President in Simon's


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was clear. During his sworn examination, Hogan noted, " . . . I

don't know what's wrong with helping my family, but apparently

somebody has got a problem with that . . . ." (Ex. 15 at 58-59)

Despite his multiple union offices, Hogan was unabashed in his

practice, as his union history showed even before Hoffa appointed

him as an International Representative, that the interests of his

family came before his obligations to union members.

As detailed below, on August 15, 2000 approximately two

weeks after the Chicago lunch with Simon, Hogan called Passo at

9:00 a.m..15 Hogan contacted Simon at 9:08 a.m.. The next call

from Hogan's cellular telephone was at 9:25 a.m to the offices of

GES's parent company, VIAD, in Phoenix, Arizona. Following that,

Hogan completed the circle and called Passo and spoke for eight

minutes. (Ex. 73) Hogan acknowledged the obvious, that he probably

spoke to Passo and Simon about the agreement with United during

these calls on August 15, 2000. (Ex. 15 at 110-11)16

According to IBT records, on the same day as this series

__________________

15 Both Hogan and Passo were in Las Vegas on August 15, 2000.

16 Hogan claimed that the call to GES's parent company was

unrelated to his conversations with Passo and Simon. (Ex. 15 at

110-11)

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of telephone calls, Simon requested a ticket to the James R. Hoffa

Memorial Scholarship Fund ("Hoffa Scholarship Fund") golf outing in

Las Vegas (Ex. 85) By check dated September 8, 2000, Simon's

company, which was attempting to obtain major concessions from

Local 631 which the General President had placed in Trusteeship,

made a donation of $5,100 to the Hoffa Scholarship Fund. (Ex. 85)

This donation represented $300 for Simon's ticket to attend as a

non-golfer and golf fees of $1,200 each for Hogan's son, James

Hogan; Hogan's friend, Bill Marovitz, the Joint Council 25

lobbyist, and two other individuals. (Ex. 85; Ex. 86 at 32-33; Ex.

15 at 98 )

After Passo began to pressure Local 631's Trustee,

Assistant Trustee and business agent to enter into the substandard

arrangement with United, United employees, who were paid less than

the red book agreement required, began to perform work covered

under the Teamsters red book agreement. (Ex. 26 at 60-63)1' For

example, during the MAGIC show held between approximately August 24

and September 3, 2000, trade show contractor GES used United

employees to perform Teamster bargaining unit work. (Ex. 262) It

appears that Passo, who was in Chicago at this time, kept track of

these developments. On August 23 and August 27, 2000, there were

calls from Passo's cellular telephone to Simon's cellular

__________________________

17 In the past, United employees had performed janitorial work

in the convention industry. That work was not covered under the


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red book agreement.

20

telephone. (Ex. 49)

On August 30, 2000, Assistant Trustee Frates had a

telephone conversation with United CEO Simon during which Simon

again tried to persuade Frates to implement Passo's substandard

arrangement with United. (Ex. 82 at 56-57) Once again, Frates told

Simon that unless he signed the red book agreement, the Local was

not willing to enter into an agreement with him. (Ex. 82 at 57)18

Trustee Wilkerson and Frates were present at the

convention site during the MAGIC show and observed numerous United

employees performing Teamster work for GES. (Ex. 6 at 73, Ex. 82 at

74-75; Ex. 26 at 63) They directed that grievances be filed

against GES. (Ex. 82 at 74-75; Ex. 26 at 63-69)19

Local 631's grievances concerning the use of the United

employees on the MAGIC show were sent via facsimile to GES on

September 5, 2000. (Ex. 151) Frates instructed business agent

Chuck Benboe ("Benboe"), the trade show business agent who handled

grievances, to vigorously pursue the grievances. (Ex. 82 at 83) On

September 8, 2000, Passo caused Frates to be terminated as

Assistant Trustee. (Ex. 82 at 7; Ex. 78 at 61; Ex. 12 at 147-51;

________________

18 Frates testified that in this conversation he told Simon

"to go pound salt." (Ex. 82 at 57)


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19 During this show, Assistant Trustee Frates and business

agent Whitfield met with GES representatives and strongly objected

to the use of the United employees to do work that should have been

dispatched through Local 631 and paid at the contract rate. (Ex. 6

at 79-80; Ex. 82 at 74-75)

21

Ex. 20 at 234-36)20. As with Murphy, who resisted entering into a

substandard agreement with Hogan's brother's company, Frates was

removed. (Ex. 26 at 1ll-13; Ex.12 at 48) Passo also attempted to

reduce business agent Whitfield's hours to part-time. (Ex. 6 at 37-

40)

As detailed below, Passo belatedly provided to the IRB a

handwritten agreement with United which he sent to the IBT's Legal

Department on August 29, 2000, during the MAGIC Show. (Ex. 84)21

This proposed agreement granted substantial concessions to United

from the red book contract concerning, among other things, wages,

overtime pay and employer benefit fund contributions. (Ex. 84)

_____________________

20 According to Scalf, Frates was terminated because Passo

reported the following: Frates and Whitfield had discussions with

Local members about running for office, Frates was disrupting the

Local, Frates refused to process a grievance for Local 631 member

Jeff Dudash, Frates showed favoritism toward some members and he

did not adequately service the members. (Ex. 12 at 148-150) As


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detailed below, Dudash had close ties to Passo. For example,

Dudash, who had no Local office, was the beneficiary of at least

nineteen meals with Passo at IBT expense when Passo was in Las

Vegas. (Exs. 122-25, 128-33; 142) Scalf did not investigate

Passo's allegations about Frates before Frates was terminated. (Ex.

12 at 147-51) Indeed, he did not even ask Frates to respond to

Passo's allegations. (Ex. 12 at 150)

21 Although Passo testified during his February 9, 2001 sworn

examination that he had searched for all notes concerning the

agreement with United and he did not have any such documents (Ex.

21 at 267), by letter dated April 11, 2001, Passo provided

handwritten notes setting forth an agreement with United. (Ex. 84)

The IBT also failed to provide this handwritten agreement with

United in response to an IRB document request dated February 9,

2001. (Ex. 88) On April 11, 2001, in a production coordinated with

Passo, the IBT provided a copy of this agreement from its files.

(Ex. 89)

22:

Passo's proposal created new classes of employee, "D1" and "D2"

employees, whom United would "recruit, hire and dispatch and

deliver to the trade show sites and convention sites (Ex 84)22 Under

Passo's agreement, the "D1" employees, who were defined as

employees with less than 250 hours work in the industry, would be

paid $10.00 per hour with no benefit fund contributions made on


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their behalf. (Ex. 84)-" In contrast, under the red book agreement,

Supplemental Workers with less than 150 hours work in the industry

were paid $12.49 per hour with $7.90 per hour in benefit fund

contributions made on their behalf. (Ex. 4 at 11, 26-27)24

In addition, as detailed below, as a result of Passo's

concessions concerning overtime pay, under Passo's arrangement with

Simon, the D1 and D2 workers, which included workers with up to

1,000 hours in the industry, would have been paid $10.00 and $11.00

________________________

22 As discussed below, the red book contract had "A" list and

Supplemental Workers, who were sometimes referred to as "C" list

workers. (Ex. 4 at 3-4; Ex. 25 at 7-11)

23 Since Passo's agreement, which contained no seniority

provisions, would have given Simon complete control over

dispatching his employees, Local 631 would have no mechanism to

ensure that the United employees received even the substandard

wages and benefit contributions the United agreement required.

Under the red book agreement, the Local 631 dispatch office had

records of the individuals dispatched to work and the employer must

make benefit fund contributions on the first hour worked thereby

creating records at the health and welfare fund. (Ex. 4 at 26)

24 After working 150 hours in the industry, effective June 1,

2000, under the red book agreement, Supplemental Workers would be


28/274

paid $13.69 per hour with $7.90 in benefit fund contributions. (Ex.

4 at 11, 26-27)

23

per hour respectively for work performed between the hours of 10:00

p.m. and 6:00 a.m. unless they worked more than eight hours in a

day or 40 hours in a week. (Ex. 84) 25 in contrast, under the red

book agreement, a Supplemental Worker with more than 150 hours in

the industry would be paid $20.53 per hour during the hours of

10:00 p.m. and 6:00 a.m. whether or not they had worked eight hours

in a day or forty hours in a week. (Ex. 4 at 11, 13) This is

strikingly different than Passo's repeated claims that, pursuant to

the Passo-Simon arrangement, Simon's employees were only going to

be paid one dollar less per hour. (Ex. 20 at 81-82; Ex. 12 at 100)

Trustee Wilkerson complained to International Vice

President and Joint Council 42 President Santangelo and to Hoffa's

Executive Assistant Scalf about the substandard agreement with

United that Passo was constantly pushing on the Local. (Ex. 26 at

92-94; Ex. 12 at 101) Santangelo thought the arrangement Passo was

advocating was suspicious and in September 2000 asked Ed Stier

("Stier") from the IBT's RISE program to investigate Simon. Stier

subsequently told Santangelo "to stay away from him [Simon] and to

tell the Teamsters to stay away from him." (Ex. 32 at 46) Based

upon conversations he had with IBT General Counsel Patrick

Szymanski ("Szymanski"), on September 12, 2000, Scalf told Passo to

stop dealing with Simon. (Ex. 12 at 115-16)


29/274

25 The United employees usually performed Teamster bargaining

unit work at night. (Ex. 6 at 236-37; Ex. 90 at 36)

24

Trustee Wilkerson also complained to Hoffa and Hoffa's

Executive Assistant Scalf that Passo was interfering with his

ability to run the local. (Ex.26 at 86-87, 103-104)This was a

familiar complaint about Passo. Other Local and Joint Council

officials had complained about Passo's interference with their

work. (Ex. 91)26 In addition, Santangelo and other high-ranking IBT

officials from the Western Region also complained to Hoffa and

Scalf about Passo's activities at Local 631. (Ex. 32 at 33-34; Ex.

12 at 171-77)25 No investigation was made into the complaints about

____________________

26 For example, in a February 4, 2000 letter to Hoffa, Tony

Judge, then President of Joint Council 25, and Frank Wsol, then

Vice President of Joint Council 25, complained about Passo's

activities in Chicago concerning the Overnite strike. (Ex. 91)

Like other documents damning to Passo, the IBT did not produce that

document in response to an IRB document request. (Ex. 190)

27 It appears that Passo's presence in Las Vegas exacerbated

the problems which were given as the reasons for the imposition of

the Trusteeship. For example, the non-union United employees were

performing Teamster work at substandard wages. Furthermore, an


30/274

ethnic slur was also part of the IBT's rationale for the

Trusteeship. (Ex. 3) Passo made an anti-Semitic remark to the

owner of Bally's, an IBT employer, and was thrown out of that

hotel. (Ex. 78 at 74-75; Ex. 12 at 180-82) Passo was not

disciplined. (Ex. 78 at 75)

In addition, according to IBT Vice President Santangelo's

January 2000 report recommending that Local 631 be placed in

Trusteeship, nepotism was among the stated reasons for the

Trusteeship. (Ex. 3) Nevertheless, Passo instructed Trustee

Wilkerson to hire his friends, who were without appropriate

experience, for various positions at the Local. For example, Passo

directed that Vito LoCascio, a former member of Local 714 in

Chicago who had at least eighty-seven meals with Passo in Las Vegas

at IBT expense, be hired to work on the IBT's 2000 Get-Out-The-Vote

efforts in the U.S. Presidential election even though Locascio was

prohibited from voting himself due to his felony conviction. (Exs.

94-144, 146; Ex. 26 at 33)In addition, although another reason

25

Passo's stewardship of Local 631.

Passo, in turn, advocated with Hoffa and Scalf for

Wilkerson to be replaced as Trustee. (Ex. 20 at 242-244; Ex. 78 at

57; Ex. 12 at 151-52) This was after both Wilkerson and Santangelo

had complained to Scalf about Passo's substandard agreement with

United. (Ex. 12 at 99-101) On October 31, 2000, Scalf asked Ed


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Jacobson ("Jacobson"), the Secretary-Treasurer of Local 252 in

Centralia, Washington, an International Representative assigned to

the Building Trades Division and the IBT's Director of Building

Trades for the Western Region, if he would serve as a replacement

for Wilkerson as the Trustee of Local 631. (Ex. 92 at 12; Ex. 12 at

154) On November 6, 2000, based upon Passo's recommendation, Hoffa

terminated Wilkerson as Trustee. (Ex. 148; Ex. 12 at 84-85, 127,

130)28 This was consistent with Passo causing the removal of Frates

_____________________________

given for the Trusteeship was the inexperience of the Local's

business agents, Passo arranged for Locascio, who held no union

position and with whom Passo spoke daily, to attend the Teamster

Leadership Academy for officers and business agents in October 2000

in Washington, D.C. at Local 631 expense. (Ex. 14; Ex. 147 at 29;

Ex. 78 at 55-56, 97; Ex. 145) At the time, there were Local

business agents who had not attended the TLA. (Ex. 1 at 151)

Moreover, it was a rare event for a member with no union position

to attend the TLA. (Ex. 93 at 28-29)

28 According to Scalf, Wilkerson was terminated because he

planned to run for office in Local 631, planned to dedicate the

union hall to a former officer without the IBT's permission,

purchased automobiles for the Local 631 business agents to use

without the approval of the IBT, did not maintain sufficient

contact with the IBT and stopped the Local's practice of giving the

members soda at meetings and installed a soda machine at the Local.


32/274

(Ex. 12 at 84-85, 127, 130) In other Trusteed Locals, such as

Local 815 located in Englewood Cliffs, New Jersey, the IBT waived

26

who had also resisted Passo's continuous efforts to have Local 631

enter into a substandard arrangement with Hogan's brother's

company. Between October 31, 2000, when Jacobson was asked to

replace Wilkerson and November 6, 2000 when Wilkerson was

terminated, there were, at least, thirteen telephone calls between

Passo and Hogan. (Exs. 50-51, 74-76)

On November 3, 2000, GES again used United employees to

perform bargaining unit work on the SEMA show while there were

Teamsters available to do that work. (Ex. 152) As a result, on

November 4, 2000 a grievance was filed against GES. (Ex. 152) GES

also used United employees to perform Teamster work on the CES show

in January 2001. (Ex. 153) Based upon this, on January 9, 2001,

Local 631 filed a grievance against GES. (Ex. 153) As of March 29,

2001, the grievances Local 631 filed against GES for using United

employees to perform Teamster work had not been resolved. (Ex. 2 at

____________________

IBT Constitutional dues requirements in order to allow employees

hired under the Trusteeship to run for office when they would

otherwise be ineligible to do so. (Ex. 12 at 128-29) Moreover,

Local 631 needed automobiles. (Ex. 149 at 92-93) They were

purchased in May, June, July, August and early September 2000,

months before the decision to terminate Wilkerson. (Ex. 150) As

discussed below, upon analysis, including a comparison with the


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actions Passo was taking to give Simon substantial concessions with

significant consequences for Local 631 which Hoffa and Scalf

claimed were not disclosed by Passo to them, there is a make-weight

after-the-fact appearance to the explanations for terminating

Wilkerson. After Passo's disruptive conduct was brought to Hoffa's

attention by the International Vice Presidents and Scalf ignored

Santangelo's and Wilkerson's warnings about the substandard

contract Passo was arranging with Simon, as of March 2001, Passo

remained in place as Hoffa's Local 631 monitor.

27

219-229)29

In addition, it appears that during the Super Show in

January 2001, a trade show contractor that Michael Hogan owned,

Show Biz USA, attempted to use United employees with Trustee

Jacobson's indulgence to perform Teamster work. (Ex. 154; Ex. 155

at 21; Ex. 15 at 18)30 Business agent Whitfield and the show

stewards prevented this. (Ex. 155 at 21; Ex. 1S6 at 41-42)

Jacobson's and Benboe's sworn examinations were taken in

January 2001 at which they were asked questions about the failure

to pursue the grievances against GES for using the United employees

to perform bargaining unit work. (Ex. 92 at 93-94; Ex. 149 at 63-

74)31 During the same week as these sworn examinations,

representatives from GES in Las Vegas, including the person with

whom Benboe would have met concerning the grievances, traveled to

Chicago to discuss with Hogan, who had no role in Local 631, both


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the grievances Local 631 had filed against GES concerning the use

_____________________________

29 Business agent Benboe, who was responsible for handling the

grievances, claimed that grievances where individuals were named

took priority over the grievances filed against GES for the use of

the United employees. (Ex. 149 at 63-65) The threat to Teamster

jobs and the Local's negotiating position for the new contract was

of no concern to him or Jacobson. (Ex. 149 at 63-74; Ex. 1 at 161-

63, 185)

30 The IRB has recommended that Jacobson be charged with

intentionally failing to cooperate with the IRB in January 2001.

31 Prior to these sworn examinations, the IRB had asked Local

631 to provide copies of grievances against GES concerning the use

of the United employees. (Ex. 294)

28

of United employees and the upcoming contract negotiations with

Local 631. (Ex. 15 at 124-28; Ex. 86 at 11-20) Hogan did not

inform Trustee Jacobson or Scalf, to whom Hogan reported, that he

had this meeting with GES representatives. (Ex. 15 at 127-28; Ex.

1 at 186-87; Ex. 12 at 144-45)

Subsequent to his meeting with the GES representatives

from Las Vegas and after the IRB's investigation began, Hogan

requested Hoffa and Scalf to allow him to be involved in


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negotiating the trade show contract in Las Vegas. (Ex. 12 at 144;

Ex. 78 at 98) They refused Hogan permission. (Ex. 12 at 144; Ex.

78 at 98-99) Hogan also concealed from Scalf and Hoffa that his

brother was an officer of United. (Ex. 12 at 61-63; Ex. 78 at 30-

31) Indeed, Hogan did so as he sat with Hoffa and Passo while

Simon discussed a contract with Local 631. (Ex. 12 at 62, 97, 196;

Ex. 15 at 35-39)

III. JURISDICTION

Since Local 631 is a Trusteed Local and both parties

against whom charges are recommended are International

Representatives, the violations described herein appear to be

offenses committed against the International Union. Pursuant to

Article XIX, Section 5(a) of the IBT Constitution, it appears that

the IBT General Executive Board has jurisdiction over this matter.32

32 Article XIX, Section 5(a) provides in pertinent part:

Notwithstanding any other provision of this

29

Paragraph G(e) of the March 14, 1989 Consent Decree in

United States v. International Brotherhood of Teamsters, 88 Civ.

4486 (S.D.N.Y.) and Paragraph I(6) of the Rules and Procedures for

Operation of the Independent Review Board ("IRB Rules") require

that within 90 days of the IRB' s referral of a matter to an IBT

entity, that entity must file with the IRB written findings setting

forth the specific action taken and the reasons for that action.


36/274

Pursuant to Paragraph I(9) of the IRB Rules, not meeting this

deadline may be considered a failure to cooperate with the IRB.

IV. INVESTIGATIVE FINDINGS

A. Dane Passo's Background

On January 4, 1999, Dane M. Passo, date of birth April

18, 1953, was hired as a member of the Hoffa transition team. (Ex.

11) As of March 1999, General President Hoffa appointed Passo as

his Special Assistant and an International Representative. (Ex. 11;

Ex. 20 at 23-24)

Passo held the Special Assistant position until October

_________________

Constitution, the General Executive Board

shall have jurisdiction to try individual

members, officers, Local Unions or Joint

Councils or other subordinate bodies for all

offenses committed against the officers of the

International Union or the International

Union.

(Ex. 157)

30

1, 2000. (Ex. 20 at 24-25; Ex. 11)33 Passo continues as an

International Representative. (Ex. 20 at 23) Passo's duties did

not change after he was removed as Special Assistant to General

President Hoffa. (Ex. 12 at 217)

Passo's IBT salary is currently approximately $92,400.


37/274

(Ex.11;; Ex. 20 at 25)34 He also receives reimbursed expenses, a

car allowance of $400 per month and an incidental allowance of

approximately $216 per month. (Ex. 11)34

Passo is a member of Local 705 in Chicago. (Ex. 20 at 4)

While a Local 705 member, Passo was employed at Gersten Cartage for

approximately two or three years, Carolina Freight for

approximately fifteen years and ABF for approximately two years.

(Ex. 20 at 4, 16-17) He was a steward at Carolina Freight. (Ex.

20 at 18)

_______________

33 Hoffa testified that Passo was removed as Special Assistant

because some IBT Vice Presidents told him that Passo "was very

aggressive in putting forth his position. And they felt it would

be better if he didn't have that title." (Ex. 78 at 13-14) When

asked why Passo was removed as Special Assistant, Scalf testified,

"[b]ecause of him pushing his weight around and telling people that

he could get them fired and being a little more outspoken than he

should be and on the advice of counsel." (Ex. 12 at 197)

34 When he was hired at the IBT in January 1999, Passo's

salary was $67,500. (Ex. 11; Ex. 20 at 29) In March 1999, his

salary was increased to $75,000. (Ex. 11; Ex. 20 at 30) In January

2000, his salary was increased to $82,400. (Ex. 11) According to

Passo, in January 2001 his pay was increased to approximately

$90,000. (Ex. 20 at 25)


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35 In 1999, Passo received approximately $5,700 in allowances.

(Ex. 158)

31

In 1992, then Local 705 President Daniel Ligurotis

("Ligurotis") hired Passo to be a business representative and

organizer at Local 705. (Ex. 20 at 18; Ex. 17)36 On December 31,

1993, after Local 705 was placed in Trusteeship, Passo was

terminated from his position at Local 705. (Ex. 20 at 19) Passo

then returned to work at ABF. (Ex. 20 at 19) Passo was injured

while working for ABF and received workers compensation. (Ex. 20 at

20) in 1996, Passo started working for the Hoffa campaign and ran

the Hoffa campaign in Chicago. (Ex. 20 at 61-62)

Prior to being hired as Special Assistant to General

President Hoffa, the only position Passo held with any IBT-

affiliated entity was his thirteen month employment as a Local 705

business representative. (Ex. 20 at 18-19) Passo never negotiated

_______________________

36 On April 2, 1992, the Investigations Officer charged

Ligurotis with embezzling $20,500, taking an illegal interest free

loan of $75,000 from Local 705 and interfering with the Local's

legal obligations by engaging in a pattern of conduct in which

corruption and unlawful activity were fostered and rewarded. (Ex.

159) The second charge alleged, among other things, that Ligurotis

allowed a Local 705 business agent convicted of extorting money

from an employer to continue to work at the Local as a


39/274

"maintenance" employee at a salary higher than when he was a

business agent and then appointed him a business agent when his

statutory bar expired; hired another individual as a business agent

who was barred from such employment with a labor organization as a

result of his arson conviction; engaged in contumacious conduct by

willfully interfering with the March 14, 1989 Consent Order in

United States v. IBT and possessed a loaded handgun on the Local's

premises in violation of the Local's rules which possession

resulted in the death of a fellow Local 705 officer. (Ex. 159)

After a hearing, the Independent Administrator found the charges

against Ligurotis proven and permanently barred him from the IBT.

(Ex. 160) On February 9, 1993, District Judge David N. Edelstein

affirmed the Independent Administrator's decision. (Ex. 161)

32

any collective bargaining agreements while employed at 705 or at

the IBT. (Ex. 21 at 290-91)37 Passo had no experience in the

convention industry. (Ex. 20 at 23) In addition, Passo did not

have any organizing experience. (Ex. 21 at 290-91) Passo never

even attended the full IBT Teamster Leadership Academy. (Ex. 21 at

288)

Hoffa's Executive Assistant Scalf supervised Passo. (Ex.

12 at 47-48) Passo also attended IBT General Executive Board

meetings as the Sergeant at Arms. (Ex. 20 at 53; Ex. 12 at 32)

B. William T. Hogan, Jr.'s Background


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William Hogan, date of birth June 13, 1941, is currently

an International Representative, President of Joint Council 25 in

Chicago, Vice President of Local 179 and Organizing and Political

Director for Local 714. (Ex. 15 at 4; Ex. 162 at 8) Hogan's

salaries are: $62,000 from Joint Council 25, $50,000 from the IBT,

$92,000 from Local 714 and $6,000 from Local 179. (Ex. 15 at 16-17)

His total annual salaries from IBT entities is approximately

$210,000. In addition, Hogan is receiving a pension from the

Teamsters Affiliates Pension Plan. (Ex. 15 at 16-17)

In August 1996, based upon an IRB recommendation, the IBT

placed Local 714 in Trusteeship. (Ex. 16) The Local was placed in

__________

37 According to Passo, he sat in on negotiations Scalf

conducted with the New York, New York Casino in Las Vegas. (Ex. 21

at 290-91)

33

Trusteeship because of nepotism and conflicts of interest among

Hogan and his relatives who had ownership interests in companies

that employed Teamster members. (Ex. 16)38 At that time, Hogan was

Secretary-Treasurer of Local 714 and President of Joint Council 25

in Chicago. (Ex. 162 at 4, 11) After being removed as the Local

714 principal officer, Hogan continued as a Local 714 member until

approximately early 1997 when he retired. (Ex. 15 at 5)

In July 1998, Hogan's son, Robert Hogan, was elected

Secretary-Treasurer of Local 714 and the Local was released from


41/274


42/274

agent before Local 714 was placed in Trusteeship. (Ex. 16 at 8-9)

34

Vice President of Local 714. (Ex. 15 at 10-11)

On or about March 9, 2000, Hogan was appointed President

of Joint Council 25. (Ex. 15 at 4)40 On May 1, 2000, he was

appointed an International Representative. (Ex. 143) Hogan, who

was not assigned to a specific IBT department, reported to Scalf.

(Ex. 12 at 47) Hogan was never given any International assignment

in Las Vegas. (Ex. 12 at 60)

According to Hogan, he and Passo met in 1994 or 1995 in

connection with Hoffa's campaign for IBT General President. (Ex. 15

at 27-28) Hogan was the candidate for General Secretary-Treasurer

on Hoffa's slate in the 1996 election until Local 714 was placed in

Trusteeship and he resigned from the slate. (Ex. 164)

Hogan acknowledged that he and Passo were good friends.

(Ex. 15 at 76) Between April 4, 2000, when Passo arrived in Las

Vegas to impose the Trusteeship on Local 631, and November 19,

2000, when Passo left Las Vegas, there were approximately 80 calls

from Passo's IBT cellular telephone to Hogan's cellular telephone

and approximately 143 calls from Hogan's cellular telephone to

___________________

40 In 2000, there was an election at Local 714. Hogan was

ineligible to run for office because he had not been a member of

the Local in good standing for twenty-four consecutive months prior

to the election. Pursuant to Article XV, Sections 2(b) and 7 of

the IBT Constitution, in order to be a Joint Council officer, an


43/274

individual must be an officer of a Local union within the Joint

Council. In order to preserve Hogan's eligibility to continue as

the head of the Joint Council, in October 2000, he was appointed

Vice President of Local 179 located in Joliet, Illinois. (Ex. 15 at

5, 7-8 )

35

Passo's IBT cellular telephone. (Exs. 33-76) There was a total of

approximately 223 calls in this seven month period. (Exs. 33-76)41

Hogan was frequently in Las Vegas during the applicable

period. Hogan and Passo were both simultaneously in Las Vegas six

times in 2000. (Exs. 116-135, 166, 265-281) Between March 2000 and

November 19, 2000, when Passo left Las Vegas, Passo caused the IBT

to pay for ten meals he had in Las Vegas at which Hogan was also

present. (Exs. 118-119, 122, 123, 128, 129, 132, 133, 165)42

According to Passo's expenses, at two of these meals, on March 1,

2000 and May 7, 2000, only Passo and Hogan were present. (Exs. 118-

119, 122-23 and 165)43

C. Local 631's Collective Bargaining Agreement with the

Trade Show Contractors

Local 631 represents employees in the trade show and

convention industry in Las Vegas. There were approximately 1,400

_____________

41 This figure did not include calls from Passo's cellular

telephone to Joint Council 25 where Hogan was the principal officer

or calls from Hogan's cellular telephone to Local 631 where Passo


44/274

was the General President's Personal Representative. These calls

numbered eight and three respectively. (Exs. 45-75) Hogan was not

in contact with anyone else at the Local.

42 Former Local 714 member Locascio was present at six of the

ten meals Passo and Hogan had together. (Exs. 118-19, 122-23, 128-

29, 132-33, 144 )

43 On May 7, 2000, Hogan was in Las Vegas on a personal trip

with his friends, including Bill Marovitz, the Joint Council 25

lobbyist. (Ex. 15 at 97-98) As detailed below, Simon's company

paid for Marovitz's golf fees at the Hoffa Memorial Scholarship

Fund golf outing in September 2000. (Ex. 85)

36

Local 631 members employed in those industries. (Ex. 2 at 101) 44

Las Vegas has become one of the most popular convention sites in

the United States. (Ex. 25 at 18) The Las Vegas Convention Center

is expanding and as a result even more trade shows and conventions

will be held in Las Vegas.

Local 631 had a collective bargaining agreement with the

major trade show contractors in Las Vegas, GES and Freeman. (Ex.

4)aJ This collective bargaining agreement will expire on May 31,

2001. (Ex. 4)

As set forth in the red book agreement, the trade show

contractors were required to contact the Local 631 dispatch office


45/274

for workers. (Ex. 4 at 3)46 Prior to Local 631 being placed in

Trusteeship in April 2000, Breymann was the Local's dispatcher and

___________________

44 As discussed below, an individual did not have to be a

Local member in order to be referred to work from the Local's

dispatch office. Non-members were required to pay a monthly $40

dispatch fee. (Ex. 7 at 70; Ex. 77)

45 As noted above, this master contract is sometimes referred

to as the red book contract. (Ex. 6 at 106)

46 Pursuant to Article I, Section E of the red book contract,

It shall be the responsibility of Employer to

first call the dispatching office of the Union

for such employees as they may from time to

time need, and the office shall immediately

furnish to the Employer the required number of

qualified and competent workers of the

classifications needed and requested by the

Employer, strictly in accordance with the

provisions of this Article.

(Ex. 4 at 3)

37


46/274

Jennifer Dodds ("Dodds") was his assistant. (Ex. 9 at 13-14) As of

March 29, 2001, the Local's current dispatcher was Dodds. Frances

Almaraz ("Almaraz") and Susanna Montoya were her assistants. (Ex.

7 at 68; Ex. 8 at 6, 10-11)

The contract provided for an "A" dispatch list and a

Supplemental dispatch list, sometimes referred to as the "C" list.

(Ex. 4 at 3-4) The Supplemental list consisted of individuals who

had not worked 1,000 hours in the convention industry. (Ex. 4 at

4)47

There was no limit on the number of individuals who could

register in the Local 631 dispatch office for trade show and

convention work. (Ex. 2 at 101; Ex. 7 at 70) Every Thursday

individuals would go to the dispatch office to register. (Ex. 2 at

102; Ex. 7 at 70-71) In order to be placed on the dispatch list,

an individual had to complete registration forms, watch an

orientation video and pay either union dues or a monthly dispatch

fee. (Ex. 7 at 70, 87; Ex. 2 at 102)48

In addition, pursuant to the red book agreement, there

was a Convention Training Trust to which employer signatories must

pay $.06 for every hour a casual employee worked. (Ex. 4 at 16)

____________________

47 If an individual was classified as a Supplemental Worker

on or before May 31, 1997, they were included on the Supplemental

list if they had not yet accumulated at least 800 hours in the

convention industry. (Ex. 4 at 4)


47/274

48 Nevada is a right to work state.

38

The Convention Training Trust, which provided training for trade

show work including forklift certification classes, was designed to

provide a competent, stable workforce for the convention industry

in Las Vegas. (Ex. 2 at 247-50)17

The work covered in the red book contract included the

following:

The Employer recognizes the following work

herein outlined as being within the scope of

this Agreement and defined as erection, touch-

up painting, dismantling and repair of all

exhibits. This work is to include wall

coverings, floor coverings, pipe and drape,

painting, aisle coverings, hanging of signs

and decorative materials from the ceiling,

placement of all signs, erection of platforms,

and placement and care of furniture as well as

wiping down exhibits. The Employer further

recognizes within this scope the loading and

unloading of all trucks of common and contract

carriers as well as individual company

vehicles and the movement of freight, crates,

and rigging within its facilities, including

all work in the Company's warehouse facilities


48/274

will be bargaining unit work. In the areas of

rigging, packing and crating, the work

performed includes, but is not limited to,

unloading, uncrating, unskidding, painting,

and assembly of machinery and equipment as

well as the reverse process. It should be

noted that cleaning does not include mobile

washing.

(Ex. 4 at 10)

_____________________

49 Former Local 631 organizer Terry Newton, whom Murphy hired

in January 1999, testified that prior to Local 631 being placed in

Trusteeship, he and the then director of the Convention Training

Trust had met with representatives from the Nevada Employment

Department to try to put together a pilot program where unemployed

individuals would be dispatched to convention work through Local

631. (Ex. 168 at 8, 43-45)

39

The Local 631 red book contract did not include

janitorial work. United employees sometimes performed the

janitorial work in the trade show industry in Las Vegas. (Ex. 5 at

21, 39, 61) United employees were not members of any union. (Ex.

5 at 38)


49/274

The minimum wage rate in the red book agreement was

$12.49 per hour for Supplemental Workers with less than 150 hours

work in the industry. (Ex. 4 at 11) After a Supplemental Worker

worked more than 150 hours in the industry, the hourly rate,

effective June 1, 2000, was $13.69. (Ex. 4 at 11) A Supplemental

Worker who had worked more than 150 hours in the industry was

sometimes referred to as a "C Plus" worker. (Ex. 25 at 11; Ex. 4 at

3-4)

Pursuant to Article III, Section E of the red book

agreement, for work performed between the hours of 10:00 p.m. and

6:00 a.m., all employees were to be paid one and one half times the

base rate of pay. (Ex. 4 at 13) For Supplemental Workers who had

not worked 150 hours in the industry, this provision did not apply.

(Ex. 4 at 13)50 For example, effective June 1, 2000, for every hour

worked between 10:00 p.m. and 6:00 a.m., a C Plus worker would have

________________________

50 Pursuant to Article III, Section B of the contract,

Supplemental Workers who had worked less than 150 hours in the

industry only received time and one half after 8 hours in a day or

40 hours in a week, including hours worked between 10:00 p.m. and

6:00 a.m.. (Ex. 4 at 13)

40

to have been paid $20.53 per hour.51

Pursuant to the red book agreement, for each casual

employee the employer was required to make contributions of $3.75


50/274

for every hour worked to the Teamsters Local 631 Security Fund for

Southern Nevada ("Local 631 Security Fund") for health and welfare

and dental and vision coverage. (Ex. 4 at 26)52 Effective June 1,

2000, the employer was required to make contributions totaling

$4.15 per hour for each employee to the Western Conference of

Teamsters Pension Fund. (Ex. 4 at 26-27) Accordingly, under the

red book agreement, effective June 1, 2000, the minimum hourly cost

to the employer for wages and benefits for a worker dispatched

through Local 631 was $20.39.

During large shows when one show was moving out and

another show was moving in, the dispatch office occasionally ran

out of people registered with the dispatch office for work. (Ex. 7

at 84) However, once workers finished working on the exiting show,

they were then available to work on the incoming show. These

changes sometimes happened late at night or on weekends when the

dispatch office was closed. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25

at 33-34) In those circumstances, individuals would have been

"rolled over" from one show to another. (Ex. 5 at 11-12; Ex. 2 at

_________________________

51 The base rate for a C Plus worker effective June 1, 2000

was $13.69. (Ex. 4 at 11)

52 Casual employees were workers sent through the dispatch

office. (Ex. 169 at 48-49)

41


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192-193)

According to Breymann, when he was the dispatcher, if the

dispatch office list of registrants was exhausted, he contacted IBT

Locals 14 and 995 in Las Vegas and the Carpenters union to see if

they had out-of-work members who wanted to work in the convention

industry. (Ex. 5 at 14)53 In this way, Local 631 complied with the

contract, controlled the employees sent to work and ensured that

workers sent to the trade show contractors were paid pursuant to

the contract. After the Trusteeship was imposed in April 2000,

upon Passo's insistence, the dispatchers no longer called other

unions once the dispatch office was exhausted. (Ex. 9 at 15; Ex. 7

at 77-78; Ex. 26 at 78)

Both the dispatcher and assistant dispatcher recalled

only one specific show in 2000, the MAGIC show, where the Local

could not fill the call. (Ex. 9 at 37, 39; Ex. 8 at 14-15) In

January 2001, Dodds testified that the Local could not fill the

call "maybe three times" since the Local was placed in Trusteeship.

(Ex. 9 at 14)

If the Local 631 dispatch office could not supply the

requested number of workers, the trade show contractors could hire

from any source. (Ex. 26 at 23; Ex. 2 at 186-87; Ex. 7 at 98; Ex.

________________

53 The Local provided dispatch records showing that in late

1999 and early 2000, the Local 631 dispatch office referred members

of the Carpenters Union to work in the convention industry. (Ex.

170) However, the other IBT Locals in Las Vegas were usually


52/274

unable to provide workers. (Ex. 5 at 14; Ex. 7 at 94)

42

82 at 42-43)54 However, under the red book contract, any employee

who performed bargaining unit work had to be paid pursuant to the

red book contract even if they were not dispatched from Local 631.

(Ex. 26 at 63; Ex. 82 at 41-43; Ex. 2 at 186-87; Ex. 1 at 162-63)

The contract provided that,

[i]t is the Company's intent in subcontracting

any work of a substantial, major or continuous

nature which is covered by this Agreement with

any person, firm, corporation, partnership, or

other organization to require the

subcontractor to observe the applicable wages

rates, hours, and working conditions as set

forth in this Agreement.

(Ex. 4 at 12)

The red book contract also contained a "most favored

nations" clause which provided:

In the event the Union enters into any

agreement with any General Contractor,

Independent Contractor or Contractors

Association engaged in convention services


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work, which has terms more favorable to that

Employer than the terms of this Agreement, the

Union shall immediately submit to the Employer

signatory herein, a copy of such Agreement,

and if the Employer signatory herein deems

said Contract or Agreement more favorable to

the Employer signatory herein, the Employer

may replace this Agreement with the more

favorable Article or Section and said Article

or Section shall immediately be in full force

and effect.

(Ex. 4 at 32)

___________________________________

54 The red book agreement provides that, "workers hired from

any other source will be laid off as if they were 'Supplemental

Workers.'" (Ex. 4 at 8)

43

In addition, the red book agreement contained a grievance

procedure. (Ex. 4 at 20) Pursuant to Article VII, Section A of the

contract, representatives of the union and the employer were to

meet every other Wednesday to discuss grievances filed in the

previous two weeks. (Ex. 4 at 20) If a grievance was not resolved

at this first step meeting, it was referred to a Joint Conference

Board. (Ex. 4 at 20)55 Pursuant to Article VII, Section A of the


54/274

red book contract, a Joint Conference Board hearing was required to

be held within thirty days of a request by either party to hold

such a hearing. (Ex. 4 at 20) If a grievance was not resolved at

the Joint Conference Board, the matter was to be sent to

arbitration. (Ex. 4 at 20)

D. United Service Companies

According to the United website, Ben Stein ("Stein")

founded United Service Companies in Chicago approximately forty

years ago. (Ex. 27) Richard Simon is the current Chairman of

United. (Ex. 27; Ex. 171)56 Currently, there are, at least, three

companies under the United umbrella: United Maintenance Company,

Inc. ("United Maintenance"), United National Maintenance, Inc. and

United Temps of Nevada ("United Temps"). (Exs. 19, 24 and 27)

______________________

55 The Joint Conference Board is sometimes referred to as a

four man panel. (Ex. 2 at 186)

56 Stein died in September 1996. (Ex. 28)

44

United Maintenance was incorporated in Illinois on March

2, 1982. (Ex. 19) The President of this company is Carol D. Stein,

Stein's daughter. (Ex. 19; Ex. 15 at 59-60) According to the

United website, United Maintenance "provides custodial,

maintenance-related, and many other specialized services to

corporate headquarters, airlines, airports, hotels, commercial

property, hospital, schools, universities, etc . . . .." (Ex. 27)


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United National Maintenance was incorporated in Nevada in

October 1984. (Ex. 19) Simon is the President of United National

Maintenance. (Ex. 19) The Secretary and Treasurer of this company

is Stein's daughter, Carol. (Ex. 19) According to the United

website, United National Maintenance "provides services to the

trade show industry and major stadiums on a national level.

Currently in more than 25 major cities in 14 states." (Ex. 27)

United Temps of Nevada, Inc. was incorporated in Nevada

on March 1, 1999. (Ex. 24) The President is Simon and the

Secretary is Carol D. Stein. (Ex. 24) On May 12, 2000, United

Temps of Nevada was registered as a foreign corporation in

Illinois. (Ex. 24) Simon is the registered agent. (Ex. 24) In

Illinois, United Temps of Nevada has the assumed name United Temps.

(Ex. 24) According to the United website, United Temps "provides

temporary labor for major events and institutions on local and

national levels." (Ex. 27)

Hogan described Simon's company in Las Vegas as "a labor

45

service . . .." (Ex. 15 at 148) Santangelo, Wilkerson and Frates

described it as a labor broker. (Ex. 32 at 26; Ex. 26 at 49; Ex. 82

at 77)

1. Ben Stein

United's website broadcasted that Ben Stein had been the


56/274

owner of United before Stein's death in 1996. (Exs. 27-28) Stein,

who was convicted of bribing a union official in the 1960s, was

reported to have ties to organized crime figures including La Cosa

Nostra member Dominic Senese ("Senese"), who was also a local

Teamster official. (Ex. 28) Simon also knew Senese well. (Ex. 30)

The arrangement Passo, Hogan and Simon proposed to Local 631 was

similar to those Stein had reportedly been involved with in the

past where his employees were paid wages below a prevailing

contract. (Exs. 28-31)

In 1964, Stein, then the owner of National Maintenance

Company, was indicted for labor racketeering and bribery. (Ex. 28)

According to news reports, Stein was charged with bribing various

union leaders to allow his company at job sites the unions

controlled to use non-union workers, who were described in news

reports as "skid row" workers, for as little as $1.00 per hour when

his company's collective bargaining agreements required the

employees to be paid $2.75 per hour. (Ex. 28) In 1966, Stein was

convicted in federal court in Chicago for labor racketeering and

bribery. (Ex. 28) Stein was convicted of bribing four labor

46

officials including Joseph Glimco ("Glimco"), then President of IBT

Local 777. (Ex. 28)5' Stein was sentenced to eighteen months in

federal prison and fined $2,000. (Ex. 28)

In 1969 Stein's conviction was overturned on the bribery

counts reportedly because the government admitted it had used


57/274

information improperly obtained via wiretap and a new trial was

ordered. (Ex. 28) Stein subsequently pleaded guilty to bribing a

film carriers union official. (Ex. 28) Stein was sentenced to one

year in prison. (Ex. 28)

In the mid 1970's, Stein and Senese, an organized crime

member and then the principal officer of IBT Local 703, obtained a

loan of $5.25 million from the IBT Local 710 Pension Fund. (Ex. 28)

According to news reports, Stein and Senese used this money to

invest in a building to provide a tax shelter. (Ex. 28) Senese was

subsequently barred from the IBT for being a member of organized

crime. United States v. IBT, 941 F.2d 1292 (2d Cir. 1991). (Ex.

29) 56

2. Richard Simon

Simon has worked for United for approximately 30 years.

(Ex. 27) In a September 1980 news article, Simon was described as

________________

57 The other labor officials were Edward Donovan, Secretary-

Treasurer of Local 755, a non Teamster Local described as a film

carriers Local; and business agents Harold Hawkins and Ralph Stark

of Local 25 of the Janitors Union. (Ex. 28)

58 Senese died in January 1992. (Ex. 31)

47-

the Vice President of United Maintenance and as a Chicago Police


58/274

Department patrolman. (Ex. 172) This article reported that Simon

had known Stein since 1965, when Simon was fourteen years old. (Ex.

172) Simon also knew LCN member Senese for years. (Ex. 30)

Since approximately April 1997, Simon has been an officer

on the Board of Directors for the Chicago Convention and Tourism

Bureau. (Ex. 172) Hogan claimed he met Simon approximately ten to

fifteen years ago. (Ex. 15 at 30)59 Hogan is also on the Board of

Directors for the Chicago Convention and Tourism Bureau. (Ex. 15 at

31)

Passo testified that he may have seen Simon at a Hoffa

fundraiser during the 1996 IBT election. (Ex. 20 at 65) According

to Passo, he first met Simon when Hogan introduced him to Simon

after Local 631 was placed in Trusteeship. (Ex. 20 at 64)

3. Michael P. Hogan, Sr.

Michael Hogan, a brother of William Hogan, is Vice

President of United. (Ex. 15 at 18-20; Ex. 18; Ex. 173 at 7, 19)60

Michael Hogan had been the Local 714 chief steward in the Local's

trade show division from the mid 1970s to 1978. (Ex. 174 at 10-11;

Ex. 175 at 128; Ex. 176) While Michael Hogan was the Local's chief

____________________

59 Simon was Vice Chairman of the "Chicago Salutes Bill Hogan,

Jr." dinner held on or about May 7, 1997. (Ex. 199)

60 During a February 1996 sworn examination, Michael Hogan's


59/274

son, Michael P. Hogan, Jr. who was a member in the Local 714 trade

show division at that time, testified that his father was employed

at United Maintenance Company. (Ex. 173 at 19)

48

steward in the trade show industry, he was also an officer of

O'Hare Exposition Maintenance, a cleaning company that did work in

the trade show industry. (Ex. 177) Between 1976 and 1979, Michael

Hogan and Dale Torii, Hogan's brother-in-law, were both officers of

O'Hare Exposition Maintenance. (Ex. 178) At that time, Michael

Hogan was also a Local officer and the Local's chief steward in the

trade show industry. (Ex. 179 at 3; Ex. 174 at 10-11)61

Between approximately 1980 and April 1985, Michael Hogan

was either the Secretary-Treasurer or President of Rosemont

Exposition Services ("Rosemont"), a trade show contractor. Local

714 had a collective bargaining agreement with Rosemont. (Ex. 181;

Ex. 182 at 95-99; Ex. 162 at 88) During that time, Michael Hogan's

father and his two brothers, including William Hogan, were Local

714 officers. (Exs. 285-290)

In 1996, three cleaning companies performed cleaning work

at McCormick Place, the main trade show and convention site in

Chicago: United Maintenance, Exhibition Maintenance and Century

Maintenance. (Ex. 183 at 14, 17-18)62 United Maintenance continues

to perform work at McCormick Place. (Ex. 15 at 19) Local 714

represents members who work for trade show contractors at McCormick

Place.


60/274

__________________

61 O'Hare Exposition Maintenance was dissolved on May 1, 1987.

(Ex. 180)

62 Torii, William and Michael Hogan's brother-in-law, owned

Exhibition Maintenance. (Ex. 183 at 6-7, 24)

49

Michael Hogan, Jr., a Local 714 member and son of Michael

Hogan, explained that United Maintenance handled empty crates at

McCormick Place. (Ex. 173 at 19) A "labor service", Readymen,

Inc., provided workers to United Maintenance. (Ex. 173 at 22-23)

Hogan, head of Joint Council 25, acknowledged that he did not know

if the Chicago United employees who worked at McCormick Place were

members of any union and he never tried to organize them. (Ex. 15

at 30, 147)

During his February 2001 sworn examination, Hogan

testified that his brother Michael was employed at United

Maintenance. (Ex. 15 at 18)" Michael Hogan is also the CEO of Show

Biz USA, a trade show contractor. (Ex. 22-23; Ex. 15 at 18) As

discussed below, Show Biz USA was the general contractor for the

Super Show which was held in Las Vegas in January 2001. (Ex. 155 at

6-7, 19; Ex. 154; Ex. 147 at 20)

Passo knew that Michael Hogan owned a company in the

convention industry. He claimed not to know the name of the

company. (Ex. 20 at 66-67) Passo also denied knowing that Michael


61/274

Hogan had any involvement with United. (Ex. 20 at 69) Hogan

testified that he probably told Passo that his brother worked at

United. (Ex. 15 at 39) Indeed, given the frequency of

communication among William Hogan, Passo and Simon relating to

63 He claimed not to know his brother's position with United.

(Ex. 15 at 18)

50

United, it is difficult to credit Passo's claim he was unaware

Michael Hogan was an officer of United. Indeed, Michael Hogan's

involvement with United was known to Local members on the

convention floor. (Ex. 205 at 15-16; Ex. 156 at 36) Michael Hogan

had also introduced himself as being associated with United to the

Local's Secretary-Treasurer and dispatcher before the Trusteeship.

(Ex. 25 at 41; Ex. 5 at 21, 27, 33)

E. Hogan Introduced Local 631 Officials to his brother,

Michael Hogan

In the Local's 1998 election five slates of candidates

ran. (Ex. 3) Murphy was elected Secretary-Treasurer. He took

office in January 1999. Murphy rehired Breymann as dispatcher.

Breymann had been the Local's dispatcher from January 1990 through

December 1992. (Ex. 5 at 6)

Hogan acknowledged that his brother Michael asked to be

introduced to Local 631 officials. (Ex. 15 at 22-24) His brother

told him, " . . . Rick [Simon] has been negotiating with the prior


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administration to do some things here for the labor problems here

in Las Vegas." (Ex. 15 at 24)64 Hogan agreed to make the

introduction. (Ex. 15 at 22)

Accordingly, during a Western Region Delegates meeting in

_______________

64 Hogan also testified that his brother told him that Simon,

"was trying to set up some kind of a deal to supply labor that

would be Teamsters." (Ex. 15 at 24)

51

Las Vegas in late June 1999,65 Hogan introduced his brother to

Breymann at Bally's Hotel. (Ex. 15 at 25-26; Ex. 5 at 22, 25)66

This was approximately three months after United Temps was

incorporated in Nevada. (Ex. 24)

Passo also attended the Western Region Delegates meeting

in June 1999. (Exs. 100 and 101) When asked whether he told Passo

that his brother Michael worked for United, Hogan testified,

Probably, but I'm not sure. I don't know that

I ever made that known to Dane.

When Mike came over in Las Vegas that time

Dane was there, it's very possible then I said

to Dane: 'You know, Mike is -- you know -- he

is my brother. He is talking to those guys


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from the Local.'

And that's a possibility, but I don't really

recall. I don't know that I ever did that.

(Ex.15 at 38-39)

According to then Local 631 Secretary-Treasurer Murphy,

during the Western Region Delegates meeting, he introduced himself

__________

65 The Western Region Delegates meeting was held on June 28

and 29, 1999 at Bally's Hotel. (Ex. 185) Registration for the

meeting was on June 27, 1999. (Ex. 185) According to Local 714

records, Hogan was at the Bally's Hotel in Las Vegas from June 27

to June 30, 1999. (Ex. 186) In addition, Murphy charged a meal at

the Bally's Hotel on June 28, 1999 in connection with the Western

Region Delegates meeting. (Ex. 187)

66 According to Breymann, the meeting was not open to the

public; only Teamster members were permitted to attend. (Ex. 5 at

25) Hogan testified that he made the introduction during a

cocktail reception at the Western Region Delegates meeting. (Ex. 15

at 22-23, 29)

52

to Hoffa and Hogan. (Ex. 25 at 15, 17, 26, 41-43)67 Hogan, in

Hoffa's presence, asked Murphy if he would be willing to meet with


64/274

some people who were not identified. (Ex. 25 at 17-19, 25, 27)

Murphy agreed. (Ex. 25 at 17)

F. Meeting Between United's Michael Hogan and Richard Simon

and Local 631 Secretary-Treasurer Murphy and Dispatcher

Breymann

After Murphy's conversation with Hogan and Hoffa, Michael

Hogan contacted Breymann to arrange a meeting. (Ex. 25 at 26)

Murphy recalled Breymann stated that Michael Hogan told him, "You

had a conversation with Mr. Hoffa and Mr. Hogan, and they said that

you would be willing to meet with us." (Ex. 25 at 26)

Murphy and Breymann met with Michael Hogan and Simon at

the Rio Hotel in Las Vegas, shortly after the Western Region

Delegates meeting in June 1999. (Ex. 25 at 25-26, 57; Ex. 5 at 21,

______________

67 According to Murphy, he introduced himself to Hoffa and

Hogan because he "was having some problems within the local with a

member who said he was affiliated with James P. Hoffa and the

Hogans out of Chicago." (Ex. 25 at 16) Murphy identified this

member as Vi

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