A federal grand jury in Kansas has indicted seven individuals, including five former high-ranking officials of the International Brotherhood of Boilermakers, for their alleged involvement in a massive $20 million embezzlement scheme spanning 15 years. The charges include conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, embezzlement, health care fraud, wire fraud, and theft related to health care and retirement plans. The indictment highlights how these defendants misappropriated union funds for personal gains, such as no-show jobs, luxury travel, and unauthorized loans.
Key figures in the indictment include former union president Newton Jones and former secretary-treasurer William Creeden, along with other union executives. The defendants allegedly enriched themselves by improperly using union funds for lavish expenses, including over $5 million on luxury international travel and more than $2 million in salaries for family members without any work requirements. These actions are described as a betrayal of trust from union members who believed their dues were being used to support union goals.
U.S. Attorney Kate E. Brubacher emphasized the seriousness of the allegations, stating that the Department of Justice is committed to addressing fraud and misappropriation of union funds. The indictment underscores the expectation that union leaders should act in the best interests of their members, rather than exploiting their positions for personal benefit. Special Agent in Charge Stephen A. Cyrus noted that such actions undermine the confidence of employees who rely on their leaders for protection and advocacy.
The indictment also seeks the forfeiture of $20 million in connection with the alleged crimes, and if convicted, the defendants could face severe penalties, including up to 20 years in prison for the RICO conspiracy count. The investigation involved collaboration between the FBI, the Department of Labor, and other agencies, highlighting a concerted effort to root out corruption within the Boilermakers Union. Trial Attorney Vincent Falvo and Assistant U.S. Attorneys are leading the prosecution in this significant case.
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