Sunday, May 2, 2010

Union Embezzler Sentenced

And then there's this...


Money Spent on Horses, Home Improvements and His Home Mortgage

Baltimore, Maryland - U.S. District Judge Benson E. Legg sentenced Paul S. Peters, II, age 32, of Dundalk, former president of the Waterfront Guard Association Local 1852, I.W.A. (WGA), today to 30 months in prison, followed by three years of supervised release, for embezzling funds from the union and from the employee welfare and pension plans. Judge Legg enhanced Peters’ sentence upon finding that Peters abused a position of trust, that the embezzlement scheme involved 10 or more victims, and that the offense involved vulnerable victims. Judge Legg also entered a restitution order against Peters in the amount of $320,000.


According to Peters’ plea agreement, from January 2002 through September 2005, Peters, while acting as the President of the WGA and paid Administrator of its pension and welfare plans, embezzled funds from those plans, as well as from the union operating account. In committing this crime, Peters abused his positions of trust and used the union money for personal expenses and purchases, including vehicles, boarding costs for horses, home improvements, stock transactions and home mortgage payments. Peters transferred funds from the union’s pension and welfare plans to the union operating account. Peters made cash withdrawals from the union operating account, as well as write checks payable to himself on the union operating account then cashed the checks or deposited the union funds into his personal bank accounts. Peters made misrepresentations about why the money was being paid, listing the checks and other documents as being for various purposes, such as 1st Qtr. Operating Expense ‘04, Reimbursement of Pensioner’s Medical Payments, and Plan Administering Salary for Dec. 04.

No word on whether he used union labor on his home improvements.
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

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