WASHINGTON (AP) — The FBI and the U.S. Labor Department are investigating prominent labor leader Andy Stern in their probe of corruption at the Service Employees International Union, according to two people who have been interviewed by federal agents.
The two organized labor officials met with federal agents this summer to answer questions about a six-figure book contract that Stern landed in 2006 and his role in approving money to pay the salary of an SEIU leader in California who allegedly performed no work.
Both officials spoke on condition of anonymity because of the sensitive nature of the investigation. The FBI and the Labor Department’s office of inspector general declined to comment for the record.
The disclosure about the federal inquiry of Stern — who abruptly resigned as president of the 2.2-million member SEIU in April — comes just weeks ahead of contentious congressional elections in which the union is spending an estimated $44 million to support its favored Democratic candidates.
The SEIU has been plagued with several financial scandals since 2008, when the Los Angeles Times reported that Tyrone Freeman, head of the union’s largest California local, misappropriated hundreds of thousands of dollars from the union. The union ousted Freeman and demanded that he return the money. No federal charges have been filed against him, but SEIU spokeswoman Michelle Ringuette said the union has been cooperating with the FBI.
Stern left his post two years before the end of his term, saying he wanted to focus more on his personal life. He remains a member of President Barack Obama’s deficit commission and a highly influential figure in the White House, where he was one of the most frequent visitors last year. He is also a research fellow at Georgetown University and a paid consultant for the SEIU.
Ringuette said she is unaware of any federal scrutiny of Stern. Ringuette rejected the notion that there was anything improper about the book deal or how the union paid its officials. She said similar unsubstantiated accusations have been floated for years by disgruntled former SEIU leaders and conservative bloggers.
One person who spoke to federal agents twice, in May and June, said they asked about a 2006 contract in which Stern received a $175,000 advance from Simon & Schuster to write the book “A Country That Works.” The SEIU and its locals bought thousands of copies of the book after it was published. The union also paid thousands to fact-check and promote the book, but Stern pocketed the advance.
Ringuette said the SEIU’s executive board fully vetted and approved the project. The board told local unions that purchasing Stern’s book “is a truly voluntary decision on the part of those who make it, and no adverse impact will result for anyone or any entity who refrains from purchasing or promoting the book,” according to documents obtained by the AP. The board also instructed locals to make sure any book purchases were authorized by the local’s constitution and bylaws.
Ringuette said the Simon & Schuster contract “did not require the purchase of a single book by SEIU.” Stern also received no royalties from book sales to the union.
Federal officials are also asking questions about how Stern and union officials approved payments to Alejandro Stephens, former president of the SEIU local that represents Los Angeles County government workers, according to the people who were interviewed.
The FBI has been investigating Stephens for more than a year. Earlier this month, he was sentenced in federal court this month to four months in jail and three months’ home confinement after pleading guilty to stealing $52,000 from a voter outreach program.
Stern has not been linked to any of the charges resulting in Stephens’ guilty plea. But federal agents are seeking details about the time in 2007 when Stephens’ local was merged into a larger SEIU local and he lost his post as president. The SEIU offered Stephens a generous severance package and a new job as a $75,000-a-year consultant to the SEIU California State Council.
Ringuette said the union arranged for Stephens to perform consulting work for the council and agreed to reimburse the council for his annual salary. But she said the union later discovered Stephens wasn’t actually doing any work.
Federal law prohibits labor unions from creating what amounts to “no-show” jobs that pay someone for work they do not perform.
Stephens’ attorney, Roger Rosen, said his client has not cooperated with federal officials and has no plans to in the future.
___
Associated Press Writer Pete Yost contributed to this report.
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Comments (160)
donna426
Posted on September 28, 2010 at 11:06amHow many in the FBI will be fired if they continue with this investigation just like the DOJ and the Black Panthers. Or just go talk to Gerald Walpin about investigating Obama’s friends. In other words don’t get your hopes up.
Report Post »cgoodloe
Posted on September 28, 2010 at 12:42pmDoesn‘t the President have a say over the FBI’s activities? If so, I’m surprised this investigation is going on. Unless it is a ploy to take our focus off of other anti-constitution activities this admin is trying to pull.
Report Post »van
Posted on September 28, 2010 at 2:56pmIf stern pulled a hoffa, then the investigation would stop because there wouldn’t be anyone live to investigate. Wouldn’t surprise me at all, you know, the needs of one is nothing compared to the needs of the party.
Report Post »seayalater73
Posted on September 28, 2010 at 11:01amBetween the union corruption, chicago connections, and the mismanagment of TARP funds we can sink Obama in 2012 without ever having to bring up anything else. What is astounding is that any other president with this kind of baggage would be in panic. Bush and Cheney couldn’t even have passing aquantance with anyone performing legit defense contracts without the libturds screaming foul. Why is Obama so calm? This is too easy… and I never bet on my opponent’s arrogance. We need to know why Obama is not reacting to stuff like this.
Report Post »Weetsie
Posted on September 28, 2010 at 11:19amThis is why…
Report Post »http://www.hyscience.com/archives/2010/07/shocking_docume.php
van
Posted on September 28, 2010 at 2:51pmMy opinion is that he can get the framework in place in just one term. We have to be very concerned about what Congress passes before the new Congress is sworn in in January. They will probably try to complete mao’s agenda.
Report Post »SummerB
Posted on September 28, 2010 at 3:16pmGreat link, Weetsie! Once the Repubs are the majority, we have to demand that they amend the National Voter Registration Act of 1993 whereby it becomes mandatory that all voters, even mail with mail-in ballots, think photocopy) provide a current photo id. Heck if you need a photo id at the warehouse stores & many other places, it should be mandatory so as to protect our most precious of rights — voting. And an admendment which would require all voter registrars to remove dead voters, people who move, ineligible felons, and others who cannot legally vote. Be sure to email your elected officials.
BTW, don’t forget to vote regularly at:
http://republicanwhip.house.gov/YouCut/
Report Post »Marylou7
Posted on September 28, 2010 at 10:57amHe will never be charged with anything. This man probably tells Obama when he can sneeze. Without Andy Stern and George Soros Obama wouldn’t know what to do or say.
Report Post »Slevdog1
Posted on September 28, 2010 at 10:55amI’m glad that this is investigated. However, if Mr. Holder (*chuckling to myself*) presides over this, I’ll believe if he pushes forward with this, when I see it. It‘s sad when he probably the worst Attorney General we’ve ever had. Janet Reno, you are off the hot seat!
Report Post »cruisemates
Posted on September 28, 2010 at 10:49amNo – the question is “what will the SEIU have to give the Obama Administration to get them to back off?
They already have all the union votes – mayube they have to back off of card check, a big embarrassment to the dems right now. Don’t you love having Chicago-style politics iin the White House?
Report Post »Rillobymorning
Posted on September 28, 2010 at 2:09pmHe’s already given Obama something….a recent $44K to Democratic congressional candidates to help get them elected and help Obama move along his Marxist agenda. I’m sure Obama will advise Holder to “back off” on this one, just like he did the Black Panters.
Report Post »ron the veteran
Posted on September 28, 2010 at 10:48amits gonna be hard for obama to pardon anyone from a jail cell. i hope he gets a big horny cellmate to keep him warm at nite. now thats change i can belive in.
Report Post »Gigantopithecus
Posted on September 28, 2010 at 10:46amYes,Yes,YES!!!!! The Demwits are on their way out and the hammer is starting to drop!!! Stern, Obama, Holder, Plouffe, Axelrod, Emanuel, Jarret, the Czars, Congress Critters – we are going to see so many Demwit crooks associated with this administration exposed and going down in the coming year!!!! They thought they were unstoppable and blatantly committed numerous felonies, well now the “chicken’s are coming home to roost” – it is time for the American People and FBI to read them their Rights!!!!!
Report Post »JD Carp
Posted on September 28, 2010 at 2:05pmLooks to me like a few folks at the FBI are looking to hedge their bets on keeping their jobs after November. I will wager that between the election and January take over there will be a landslide of investigations for fear of a new Judiciary Committee probe into FBI wrongdoing, especially the black panther debacle.
Report Post »Sledgehammer
Posted on September 28, 2010 at 10:46amI’m shocked, (and awed) Corruption?, Andy, nooooo! Not this self centered, do as I say not as I do kind of guy! What took so long? Holder must be heading up the investigation!
Report Post »ron the veteran
Posted on September 28, 2010 at 10:44amits time we go after these commie thugs. america will not put up with this. to all you commies and commie lovers, we are comming for you. find a country where theyll put up with you, america is not the place for your crap. you should all be eather thrown in jail or removed from our nation. go live with your buddy hugo. america is aware of what progressive really means your all just commies with a new name. get out and dont come back!
Report Post »MrButcher
Posted on September 28, 2010 at 10:44amcan’t wait to see where this leads.
Report Post »wingedwolf
Posted on September 28, 2010 at 10:43amIs it possible that there is a movement from the inside, like the Valkyrie plan against Hitler?
Report Post »mutt
Posted on September 28, 2010 at 11:14amYou mean like a Democrat with a conscious?I thought that animal was declared extinct after Obammy won the last election, and the shine wore off. With Democrats, staying out of jail is a bigger motivator than having a conscious, unless of course you’re talking about a Clinton, then personal ambition would certainly trump.
Report Post »Contrarianthinker
Posted on September 28, 2010 at 10:42amLet us hope that Obama doesn’t stop this investigation. I have faith that the truth will come out. These traitors like Stern will be exposed. I hope the investigation moves ahead fast enough so that Obama’s buddy becomes a major factor in giving Beck more credibility and effecting Independent voters to vote for Constitutionalists.
Let us thank God for this situation. I have NO question He is moving upon the right people to expose them. God cares about America even when we don’t thank Him enough.
Report Post »missmarie
Posted on September 28, 2010 at 12:14pmThank You God! – the first 3 words out of my mouth after reading this article.
Report Post »SnapTie
Posted on September 28, 2010 at 10:41amObama will pardon him on his way out if convicted of anything.
Report Post »Gigantopithecus
Posted on September 28, 2010 at 10:51amObummer won’t be pardoning anyone. Barry’s the one that will be begging for a pardon. Newsflash for Barry – there won’t be another Democrat president for a loooooooooooong time.
Report Post »CyberBoy
Posted on September 28, 2010 at 10:40amWhat? Organized crime being investigated by the FBI? Just give the investigators some stimulus money and all’s well… Move along people.
Report Post »Maygirl87
Posted on September 28, 2010 at 10:39amDog and pony show. Nothing will come of it.
Report Post »josie
Posted on September 28, 2010 at 1:40pmI agree
Report Post »nkawtg
Posted on September 28, 2010 at 10:39amSo one of the things they are looking at is Andy’s role in approving money to pay the salary of an SEIU leader in California who allegedly performed no work.
Report Post »Isn’t that what labor unions do anyway?
It’s all smoke and mirrors to deflect attention away from November 2nd.
CyberBoy
Posted on September 28, 2010 at 10:38amWhat? Thugs and thiefs and organized crime being investigated by the FBI? I believe the Obama administration simply needs to pay off a few of the investigators and all’s well….
Report Post »TexasPatriot
Posted on September 28, 2010 at 10:38amWill obama be able to help his buddies out of this one???? Stay tuned!
Report Post »Midwest Belle
Posted on September 28, 2010 at 11:52amIf Stern is like others who’ve left the company of Obama, he’ll probably be thrown under the bus to protect the WH. Isn’t that basically what happened to Van Jones?
Report Post »Journalist Stunt Double
Posted on September 28, 2010 at 10:36amJustice Department squashing this is 3…2…1…
Report Post »gbandy
Posted on September 28, 2010 at 1:30pmWell if Andy Stern is convicted of anything Obama will pardon him in two years.
Report Post »broker0101
Posted on September 28, 2010 at 10:35amMove along, people! Nothing to see here! Move along!
Report Post »Contrarianthinker
Posted on September 28, 2010 at 10:43amFaith and Hope are fundamental to our success. Aslenn says, trust in God and expect MIRACLES.
Report Post »Obi-Wan Kenobi
Posted on September 28, 2010 at 10:45amDon’t you mean “Move On.”
Report Post »Independent Tess
Posted on September 28, 2010 at 12:27pmGood one, Obi-Wan.
Report Post »Waiting4George
Posted on September 28, 2010 at 10:35amAnd the purge begins…O to Holder to FBI.
Report Post »Axl187
Posted on September 28, 2010 at 11:41amI am under the impression that like the military,FBI and the like are sworn to uphold the Constitution and not the president.Am I correct?
CatB
Posted on September 28, 2010 at 1:35pmThat’s the oath …
Report Post »henryclay
Posted on September 28, 2010 at 10:33amAbout time…lock up Andy and throw away the key!!!
Report Post »heidi586
Posted on September 28, 2010 at 10:39amThose were my first words also: About time!
Report Post »CatB
Posted on September 28, 2010 at 1:34pmThank you Obama … .without Obama we wouldn’t know who these crooks were! They were under the radar for YEARS! Light is the best disenfectant!
Report Post »Tucsonan
Posted on September 28, 2010 at 10:32amHopefully Holder won’t do something to stop this investigation….
Report Post »RKade
Posted on September 28, 2010 at 11:21amI think if holder does then a demaind must be make to remove him.
Report Post »CatB
Posted on September 28, 2010 at 1:34pmHolder should be investigated also … how about all the Obama Admistration Czars and “advisors”. Seems this is a good time to clean out the government. … chips fall where they may!
Report Post »The Provincial
Posted on September 28, 2010 at 1:59pmYou don’t think Democrats will jeopardize $44 million in campaign contributions by having an investigation into arguably the most corrupt and destructive unions in America, do ya?
Report Post »Rillobymorning
Posted on September 28, 2010 at 2:06pmI‘m sure Holder doesn’t do anything he’s not told to do by the “powers that be”, like the president, himself. I feel certain Obama won’t allow an investigation to continue around one of his best friends and closest advisors.
tobywil2
Posted on September 28, 2010 at 10:32amWith this Justice Department? You have to be kidding. Without an Independent Prosecutor the investigation will die. http://commonsense21c.com/
Report Post »grandmaof5
Posted on September 28, 2010 at 1:48pmI hope they get an independent accounting firm and lawyer to go through their books with a fine tooth comb, leaving no slimy, moss-covered rock unturned. There is a reason Andy Stearn bailed early and I’m sure it is in his own best interest.
Report Post »JD Carp
Posted on September 28, 2010 at 2:00pmHow are we making out with the black panther probe?
Report Post »pscully17
Posted on September 28, 2010 at 2:31pmSurprise– Gold just closed at $1310 per ounce!! still believe the Recession is OVER? cnbc.com yestserday reported the European Central banks have HALTED gold sales!! There is NO MORE TO SELL, NOW wait 3 weeks to witness the Global Crash!!! Buy food everybody!!! Hyper Inflation is on the way!!!
H60av8tor
Posted on September 28, 2010 at 10:31amWasn’t Andy Stern the most frequent White House visitor for awhile?
Report Post »Tucsonan
Posted on September 28, 2010 at 10:33amI think he still is and does….
Report Post »Weetsie
Posted on September 28, 2010 at 10:45amYes, he is also on Obama’s deficit board. He is a communist and is taking advantage of his position by stealing money from union workers. I hope the FBI does their job and find that Stern is stealing.
Report Post »aesaac
Posted on September 28, 2010 at 10:51amgo get’um red ryder
Report Post »dollfin
Posted on September 28, 2010 at 11:05amHe remains a member of President Barack Obama’s deficit commission and a highly influential figure
Report Post »Marcobob69
Posted on September 28, 2010 at 11:43amWhat do you want to bet that the DoJ DROPS this case also!!! That is the part of this administration that SHOULD be investigated, the DEPARTMENT OF JUSTICE! And it’s “ringleader”, Attorney General Eric Holder. Even his own employees say there is “FUNNY BUSINESS” going on in the Black Panther voter intimidation TRAVESTY! Can you say REVERSE RACISM???
pscully17
Posted on September 28, 2010 at 1:19pmJust Now the FBI is Investigating? Dont stop with stern, Go straight to OBAMA and Trumka!!
Report Post »GENZERO
Posted on September 28, 2010 at 1:45pmThe S.E.I.U. and the UNIONS are all Ponzi schemes, not one benefit to belonging except the cash they bring in to those on top!!! GET REAL, GET OUT AND VOTE THIS CR@P OUT OUR LIVES FOR GOOD!
Report Post »Fletch
Posted on September 28, 2010 at 1:52pmJanet Reno’s DOJ and her mimi-me Mary Jo White had Stern, Trumpka, McEntee (SDS AFSCME), Judy Scott Stillman, Project Vote, Citizen Action, The Tides Foundation and a little ACORN dead to rights in the Teamster Ron Carey cash swap scandal in the late 90s
They did NOTHING then and Holder certainly will not lift a finger now
Politicians and union dues money are a volitile mixture but they do buy protection from indictment
Same lefties are still all around and will remain around because unions produce nothing but provide a cash engine and manpower for social engineering
Report Post »Rita
Posted on September 28, 2010 at 2:26pmJust heard Stern visited the White House 55 times. The GOP has the corner on negative ads in the 2012 election.
Report Post »Sicboy
Posted on September 28, 2010 at 2:43pmI wouldn’t put to much hope in this investigation. He is being investigated after all by obama’s administration.
Report Post »Bril
Posted on September 28, 2010 at 3:04pmI just find it amazing they have 44 million to donate to democrat elections, but we have to bailout the unions benefits packages. Hmmm!
VLC
Posted on September 28, 2010 at 3:19pmNothing will stop unless George Soros is dressed in prison orange and brought before the American people.
Report Post »ron the veteran
Posted on September 28, 2010 at 3:43pmits about time they put this thief in jail. if anyone else was to steal like the labor union do they’d be in jail so fast. but this joker and the Rafkey brothers get to rob workers blind, and nothing is done to them. its about time we started putting these crooks in jail. i hope we go after George Soros soon too. that man has done more to ruin this nation than Russia ever did.
Report Post »Joey
Posted on September 28, 2010 at 4:45pmGlen Beck knows what he is talking about, Sad that we can’t find somebody like him to run for your Presidency next election
Report Post »LadyLibertea
Posted on September 28, 2010 at 6:09pmYeppers.
Report Post »Teapartywoman
Posted on September 28, 2010 at 6:21pmGod help us all. The media is dead in American and all of them know it, thank God for the internet oh wait isn’t that also being controlled by Mark Lloyed FCC guy. Face it people we need every single American to get to the polls this NOV. send a message to all that go for this kind of crap that the fun is over, time to pack your bags and move on. What I really wrote was not fit to post, God I’m soooooooooo madddddddd
Report Post »monroeslb
Posted on September 29, 2010 at 10:33amFBI will they follow through on their investigation of Andy Stern? Or will the investigation disappear! Because I do not know what is going on with the FBI because Obama is putting his interim government communist and has surrounded himself with communist. I did respect the FB I and the people in it, since this administration has come to power and watched the communist be gathered up by Obama and the FBI doing nothing about it. I do not know what to think of them. Where are the patriots that used to step up to save our country? Hope God can save this country!
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