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Election Fundraising Fraud: Granite State Union Bosses Illegally Divert Worker's Dues Money to Union PAC

When Nashua, New Hampshire postal worker Philip Wakeman paid dues to the National Post Mail Handlers Union (NPMHU), a division of the Laborers' International Union, he had no idea that union bosses would illegally launder his money into their political coffers.

In July 2006, Mr. Wakeman gave a check to the NPMHU union for the full amount of his annual union dues. On the "Memo" line at the bottom of the check, he wrote "Union Dues."  A union official later acknowledged receipt of the dues and everything seemed fine – that is – until he received a bizarre phone call.

In October 2008, over two years after submitting the check to the NPMHU union, a stranger informed Wakeman that she found his information on the internet and suggested he do a "Google" internet search of his name. The search results were astounding:  Mr. Wakeman found his name disclosed as making a contribution in the exact amount of his annual NPMHU union membership dues to the NPMHU Political Action Committee (PAC) – all without his knowledge.

Apparently NPMHU union bosses had illegally diverted his dues payment to the union's PAC.  Wakeman contacted the National Right to Work Legal Defense Foundation and Foundation attorneys filed a complaint with the Federal Election Commission. 

It is illegal for union officials to fund union PACs using "dues, fees, or other moneys required as a condition of membership in a labor organization."  NPMHU union bosses are also accused of violating federal election law by making a political campaign contribution in another person's name and failing to inform Mr. Wakeman that his membership dues would be used for political purposes.

To read the Foundation's media release regarding the FEC complaint, click here.

To read the FEC complaint, click here.

Teachers File FEC Complaint against NEA for Illegal PAC Money Laundering Scheme

Today, the National Right to Work Foundation announced it will file a formal complaint with the Federal Election Commission on behalf of two Alabama educators and itself against the National Education Association teacher union and two NEA affiliates for an illegal political fundraising scheme by the union hierarchy:

Washington, DC (January 13, 2009) – The National Right to Work Legal Defense Foundation announced today it will file a formal complaint with the Federal Election Commission (FEC) asking it to investigate charges made by two Alabama educators who discovered a union scheme to divert their money into the National Education Association’s (NEA) political action committee (PAC).

Claire Waites, the chair of the science department, and Dr. Jeanne Fox, an assistant principal, both work at Daphne Middle School in Bay Minette, Alabama. Waites and Fox are both members of the Baldwin County Education Association (BCEA), Alabama Education Association (AEA), and NEA teacher unions.

In July 2008, Waites and Fox attended the NEA’s annual convention in Washington, DC, as delegates of the BCEA. By telephone, BCEA union president Saadia Hunter informed Waites and Fox that contributions to a “children’s fund” in their names were made from money included in their expense reimbursements for their trip to the convention.

Read the rest of the Foundation's press release here. A PDF copy of the complaint is available here.

SEIU Union Hit with FEC Complaint for Illegal Political Fundraising Scheme

This summer, we told you about one of the nation's largest unions imposing a fundraising quota on locals and workers in an illegal scheme to fund its political action committee. Here's the latest:

The National Right to Work Legal Defense Foundation will file a formal complaint with the Federal Election Commission asking it to investigate a campaign fundraising scheme adopted by the Service Employees International Union (SEIU) at its convention this summer.

The union and its officers appear to be violating federal labor law and the Federal Election Campaign Act by imposing financial penalties on local affiliates who fail to meet Political Action Committee (PAC) fundraising targets. On June 3, delegates to the SEIU convention approved Constitutional Amendment #317 in time to take effect for this year’s federal elections.

The policy imposes on each SEIU local an “annual SEIU COPE fundraising obligation.” SEIU COPE is the SEIU’s federal PAC. If a local fails to meet this requirement, the SEIU imposes heavy fines. However, federal election law forbids unions from “utilizing money…secured by…financial reprisals… or the threat of … financial reprisal” to fund a PAC.

Read the full press release here.


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