UBC MEMBERS DEMAND DIRTY DOUG MCCARRON INVESTIGATE SPENCER AND CAPELLI

 DOUGY YOU GOT SOME SPLAININ TO DO

May 3, 2019

Douglas J McCarron

General President

United Brotherhood of Carpenters and Joiners

101 Constitution Ave., NW

Washington DC 2001

President McCarron,

We, the undersigned members in good standing of the UBC, demand you and the UBC International conduct an internal investigation into the allegations of corruption; self-dealing; violations under the UBC Constitution; violations under the LMRDA and violations under ERISA, listed in the Ballantyne lawsuit, Superior Court of New Jersey Essex County, Docket #L-007232-18. In particular, but not limited to, the allegations against Frank Spencer and Michael Capelli, who you recently promoted. Regardless, of any “deal” the UBC made with John Ballantyne, the allegations of corruption against Spencer and Capelli did not go away. Some of the allegations made by Ballantyne have already been proven with a simple review of UBC financial documents. Therefore, we as members of the UBC also question your choice of promoting Spencer and Capelli.

   We demand confirmation or denial, with documented PROOF, of the allegations against both Capelli and Spencer. If any of these allegations of corruption; self-dealing; violations under the UBC Constitution; LMRDA violations, and ERISA violations are found to have merit we demand their immediate and permanent removal from any and all offices they hold within the United Brotherhood of Carpenters. We demand if any of these allegations of corruption; self-dealing; violations under the UBC Constitution; LMRDA violations; and ERISA violations are found to have merit, the UBC seek full financial restitution from Capelli and Spencer, as well as others that may have conspired with them, as allowed under the law.

We the undersigned members also challenge your motives and the legality of the UBC in seizing, and dissolving the Northeast Regional Council of Carpenters (Council). Was dissolving the Council a legal trusteeship or justified merger? Or was it an act to silence John Ballantynes exposure of corruption allegedly being perpetuated by UBC International Officers.

We, the undersigned members in good standing of the UBC, are aware of the corruption allegations listed in the Ballantyne lawsuit where Frank Spencer, Michael Capelli, and you Douglas McCarron, are named as defendants. These corruption allegations are under investigation now by the US Attorney’s Offices in New Jersey; The United States Department of Labor (OLMS), and a Grand Jury seated in Newark New Jersey. We demand both Spencer and Capelli, and any and all that may have conspired with them, be removed from any UBC position pending the outcome of these investigations.

We, the undersigned members in good standing of the UBC, also demand that no UBC member’s money in any form be used to pay for Frank Spencer’s or Michael Capelli’s legal fees in defense of these allegations or because of the investigations by the Department of Labor or the US Attorney’s Office. It is rumored Frank Spencer has retained Williams and Connolly LLP the UBC law firm in NY. This is a clear conflict of interest on the part of Williams and Connolly who have been paid by UBC member’s dues money for legal fees to represent UBC members and UBC holdings. The UBC International alone paid Williams and Connolly over $546,000 in legal fees in 2018. It is hardly just or ethical for Williams and Connolly to represent Spencer who is accused of alleged corruption and stealing from UBC members. If Spencer has indeed retained Williams and Connolly a complaint will be filed with the proper Federal Agency.

As you are aware Union Officers have a legal fiduciary duty under the LMRDA. Trust Fund Trustees and Administrators have a legal fiduciary duty under ERISA

Fiduciary duties of union officers under Section 501 of the LMRDA

an enumeration of specific duties that these persons owe to the labor organization and its members follows. Specifically, the act requires: (subsection in part)

(a.) . . . persons . . . to hold the organization's money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and by-laws, and any resolutions of the governing bodies adopted thereunder, to refrain from dealing with such organizations as an adverse party or in behalf of an adverse party in any matter connected with their duties and from holding or acquiring any pecuniary or personal interest which conflicts with the interests of such organization, and to account to the organization for any profit received by them in whatever capacity in connection with transactions conducted by them or under their direction on behalf of the organization.

It is our understanding that the corruptions allegations listed in the Ballantyne Lawsuit to include:

(1.)       IRS TAX FRAUD

Spencer and Capelli are accused of hiding illegal “consulting fees” taken from the Council in an annuity to avoid federal tax.

(2.)       Breach of Fiduciary Duty by a union officer under the LMRDA Sec. 501(a)

(subsections in part) 

(A) Illegally seizing and dissolving the Council, and removing Ballantyne for exposing UBC international officer’s alleged corruption

LMRDA SEC. 501(a) that these persons refrain from dealing with the organization as an adverse party or in behalf of an adverse party in any matter connected with their duties;

(B) Intimidation, persecution, and harassment of a union member, and union employees. Retaliatory malice against union members, and union employees attempting to expose corruption

LMRDA SEC. 501(a) That these persons refrain from dealing with the organization as an adverse party or in behalf of an adverse party in any matter connected with their duties;

(C) Funneling money to Trish Mueller, and her companies who employs Frank Spencer’s son.

LMRDA SEC. 501(a) that these persons not hold or acquire any pecuniary or personal interest which conflicts with the interests of the organization;

(D) ordering payment to Trish Mueller’s companies, such as, Groundworks, with no proof of work product

LMRDA SEC. 501(a) that these persons hold the organization's money and property solely for the benefit of the organization and its members, and to manage, invest, and expend the same in accordance with its constitution and by-laws, and any resolutions of the governing bodies adopted thereunder;

(E) Attempting to hide illegal fees taken from the Council in an annuity to avoid Federal Tax

LMRDA SEC. 501(a) and that these persons account to the organization for any profit received by them in whatever capacity in connection with transactions conducted by them or under their direction on behalf of the organization

(F) Spencer and Capelli demanded continued payments of "advisement fees" from the Council

LMRDA SEC. 501(a) . . . persons . . . to hold the organization's money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and by-laws and any resolutions of the governing bodies adopted thereunder; . . . and that these persons account to the organization for any profit received by them in whatever capacity connected with business conducted by them on behalf of the organization

(G) Frank Spencer conspiring to personally enrich his wife Gerry Spencer, who he hired as his personal assistant

            (G1) Frank Spencer failing to file an LM 30

(G2) Gerry Spencer demanding payment of excessive alleged accumulated time

(G3) Frank Spencer ordered the Council’s comptroller to pay Gerry Spencer for 5 months that she did not work

LMRDA SEC. 501(a) . . . persons . . . to hold the organization's money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and by-laws, and any resolutions of the governing bodies adopted thereunder . . . and from holding or acquiring any pecuniary or personal interest which conflicts with the interests of such organization.

Under ERISA, Fund Trustees and Fund Admins have a Fiduciary duty as listed, but not limited to, under . . .

29 U.S. Code § 1104. Fiduciary duties

(a)        Prudent Man Standard of Care

(1) Subject to sections 1103(c) and (d), 1342, and 1344 of this title, a fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and—

(A) for the exclusive purpose of:

(i) providing benefits to participants and their beneficiaries; and

(ii) defraying reasonable expenses of administering the plan;

(B) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

(C) by diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and

(D) in accordance with the documents and instruments governing the plan insofar as such documents and instruments are consistent with the provisions of this subchapter and subchapter III.

It is our understanding that the corruptions allegations listed in the Ballantyne Lawsuit to include:

Theft from a union fund in violation of ERISA

(1) Spencer associate, Fred Mehilic, paid as a fund ghost employee

(2) Frank Spencer’s brother-in-law, Fran Weikel, was paid from both the Northeast Pension Fund and the Northeast Apprenticeship Fund, despite Weikel admitting to a Council attorney he never worked for the Northeast Apprenticeship Fund. Spencer attempted to hide Weikel’s payments from the Northeast Fund’s Trustees.

UBC international officers attempting to control and interfering with the Northeast Funds in violation of ERISA

(a)   Frank Spencer ordered the conversion of Gerry Spencer’s annuity payments to a pension

(b)   Spencer and Capelli interfered with the employment of Fund Administrator, George Laufenberg accused of fraud and self-dealing.

(c)   Spencer attempted to order a union member and Fund Trustee to commit fraud against the Fund. Spencer attempted to order a Fund Trustee to commit fiduciary breach, regarding Weikel.

(d)   Spencer and Capelli conspired to cover up fraud and self-dealing by Northeast Apprentice Fund employees, Thomas Sommers and John McKay.

(e)   Spencer and Capelli conspired to interfere with the operation of the Northeast Apprenticeship Fund, by engaging in Retaliatory malice against Northeast Fund director, Ridgley Hutchinson, for exposing Fund corruption.

(f)    Spencer and Capelli intimidated, harassed and persecuted Northeast Fund Administrators, and employees, to promote continued fraud against the Northeast Funds.

Fiduciary breach by a Northeast Fund Trustee 

(a)               Capelli intimidated, harassed and persecuted fund administrators and employees to promote continued fraud against the Northeast Funds.

(b)               Capelli conspired to interfere with the operation of the Northeast Apprenticeship Fund by engaging in retaliatory malice against Fund director, Ridgley Hutchinson, for exposing Fund corruption.

(c)               Capelli conspired to cover up fraud and self-dealing by Northeast Apprentice Fund employees, Thomas Sommers and John McKay.

We, the undersigned members, in good standing of the UBC, demand copies of any and all documents related to the UBC Internationals attempts to verify or deny the allegations in the Ballantyne Lawsuit. We must conclude, by your actions, that you President McCarron and the UBC International, have taken the position that both Frank Spencer and Michael Capelli are vindicated of all the allegations of corruption; self-dealing; violations under the UBC Constitution; LMRDA violations, and ERISA violations. Surely, the UBC International verified the allegations in the Ballantyne Lawsuit before any consideration of promoting Spencer and Capelli were made. If any such investigation was made and a “vindication” conclusion reached, we demand to review all details and documents related to the UBC Internationals’ attempts to verify or deny the allegations in the Ballantyne Lawsuit.