McLaughlin Guilty Of Racketeering;

Stole Members' Dues
McLaughlin Guilty Of Racketeering

By MEREDITH KOLODNER

Former New York City AFL-CIO Central Labor Council President Brian M. McLaughlin pleaded guilty March 7 to Federal racketeering charges and making false statements on a loan application, crimes that will earn him a prison sentence of roughly 8-10 years.

BRIAN McLAUGHLIN: A long trail of looting.

He admitted to stealing at least $2.2 million from union members and city taxpayers. How much he will have to pay back will be decided at his Sept. 12 sentencing, which will also take into account assets relating to his luxury home in Long Island and a Mercedes Benz he bought with union funds. He could face additional fines ranging from $15,000 to $1 million.

Ripped Off Own Union

The former Assemblyman admitted to stealing money from the bank account of the International Brotherhood of Electrical Workers while he was the head of its J division. He also confessed to accepting payments from union contractors, using his position to advance the interests of a company he invested in that did business with union employers, and pressuring contractors to buy certain products that he would benefit from while they performed city contracts.

RANDI WEINGARTEN: 'A sad day for labor.'

According to his sworn admission, Mr. McLaughlin misappropriated over $100,000 from an IBEW account that existed for the benefit of J Division members and was funded in part by members' paycheck deductions. He used the money to pay his personal credit card bills and his country club dues, among other things.

He also accepted hundreds of thousands of dollars in payments from contractors that employed J Division union members, along with vehicles and other benefits. In one instance, Mr. McLaughlin allowed a contractor to employ fewer union members in exchange for the payments.

Took CLC for $185G

The former labor leader also owned up to stealing $185,000 from the Central Labor Council. He got an acquaintance hired who did little work for the city union umbrella group and then funneled the money from his paychecks back to Mr. McLaughlin. He then used the money to pay rent for his apartment in Queens, car payments for one of his children, and mortgage payments for his home in Nissequogue, Long Island.

"For more than a year now, the Central Labor Council and its Executive Board have worked hard to strengthen our leadership structure and processes," CLC leaders said in a statement. "We have made the necessary changes to reinvigorate our institution, increase the transparency of our operations and better manage the inclusiveness of our affiliates in Council business."

The statement continued, "Union members throughout this city can be assured that the Central Labor Council acted quickly to ensure a strong and accountable labor movement. That being said, we wish the McLaughlin family well at this difficult time."

Mr. McLaughlin's indictment in October 2006 rocked the city's labor movement, after he had helped reinvigorate the Council during the 1990s.

Little League Scam

The indictment had a series of damning details, including witnesses and tape recordings that would have made for a very colorful trial had Mr. McLaughlin not confessed.

In June 2004, the former CLC head was alleged to have met with one of his corrupt confederates and told him he wanted $6,000 from a special account set up in the name of a Little League for IBEW members' children in order to pay the rent on his Albany apartment for the rest of the year. He was told in response, according to the indictment, that another confederate had already spent $2,800 "for softball and other expenses and was not willing to part with the remaining funds in the account."

The indictment quotes Mr. McLaughlin saying in response to tell the other associate that "all that f------ money he's f------ spending on other stuff, that ain't his money ... that's mine." He then told the man to generate additional money by asking street-lighting contractors and the CLC to write checks to the Little League.

Several of his admissions related to committing mail fraud and misappropriating funds from a slew of organizations, including the Electchester Athletic Association, the Street Lighting Association, the William Jefferson Clinton Democratic Club and the Committee to Elect Brian McLaughlin.

In re-organizing the leadership and committee structure of the CLC last year, labor leaders hoped to open a new chapter for the public face of the city's unions.

"Brian McLaughlin was a colleague and a close friend," said United Federation of Teachers President Randi Weingarten, "and this is a sad day for him, his family, and the labor movement."