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 . . .
(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—
(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.
