Published this document to educate the people of Chicago Cook County,

collar counties and union members about the corrupt practices and
procedures employed by organized crime to control and influence labor
unions like the Teamsters and Laborers.

Hogan, William T Jr.

T0: Members of the General Executive Board

From: members of the Internal Review Board

RE: Proposed Charges Against International

Representative Dane Passo and International

Representative and Joint Council 25 President

William T. Hogan, Jr.

DATE: May 23, 2001

I. RECOMMENDATION

The Independent Review Board ("IRB") refers the below

report to the IBT General Executive Board and recommends that

charges be filed against International Representatives Dane Passo

("Passo") and William T. Hogan, Jr. ("Hogan"). Hogan is also

President of Joint Council 25, Vice President of Local 179 and

Political and Organizing Director for Local 714. Based upon the

evidence detailed below, it appears that Passo and Hogan colluded

with Richard Simon ("Simon"), the CEO of United Service Companies

("United"), to enter into a substandard contract and to have United

employees perform Teamster work in the Las Vegas trade show and

convention industries for less pay and benefit fund contributions

than the existing collective bargaining agreement required. As

part of this scheme, which was to the detriment of IBT Local 631

and its members, Passo and Hogan attempted to cause Local 631

officials to enter into a substandard agreement with Simon's

company, of which Hogan's brother, Michael, was an officer. In

apparent violation of IBT procedures, before trying to persuade

Local 631 officials to enter into a substandard agreement with

United, Passo and Hogan never spoke to any United employee or

caused any IBT employee to do so. The United employees did not

designate the IBT or local 631 as their bargaining agent. As part

of this scheme, Passo falsely claimed to the Local 631

International Trustee that high-ranking IBT officials approved the

agreement with United and also lied to his supervisor at the IBT

about the extent of concessions he was urging on the Local on

behalf of the employer.

By their conduct, it appears that Passo and Hogan brought

reproach upon the IBT and breached their fiduciary duties to the

IBT and its members in violation of Article II, Section 2(a) and

Article XIX, Section 7(b)(1) and (2) of the IBT Constitution.

II. SUMMARY

A. Passo and Hogan Colluded with an Employer to Attempt to

Impose a Substandard Contract on Local 631

IBT Local 631, located in Las Vegas, Nevada, represents

approximately 4,800 members, approximately 1,400 of whom work in

the trade show and convention industries. (Ex. 1 at 192; Ex. 2 at

101) Local 631 is a member of Joint Council 42 in Los Angeles.

Timothy Murphy ("Murphy"), in an election with multiple candidates,

was elected principal officer of Local 631 for the term beginning

January 1, 1999. (Ex. 3)

Local 631 had a master contract with trade show

contractors in Las Vegas, referred to as the "red book" contract.

(Ex. 4; Ex. 6 at 106) The two main trade show contractors in Las

Vegas were Greyhound Exposition Services ("GES") and Freeman

Decorating ("Freeman"). The bargaining unit in the red book

contract included most of the work in the convention industry in

Las Vegas. (Ex. 5 at 52-53; Ex. 6 at 232-34) Pursuant to Article

I, Section E of the red book agreement, the contractors were

required to contact the Local 631 dispatch office for workers. (Ex.

4 at 3-4) The Local 631 dispatch office would then send

individuals registered with the dispatch office to work with a

written dispatch form. (Ex. 7 at 78-79) Nevada is a right to work

state. Members and non-members were eligible to register with the

dispatch office for work. (Ex. 4 at 3-4; Ex. 77) Non-members paid

the Local a monthly dispatch fee and could not be discriminated

against. (Ex. 8 at 18; Ex. 77)

The minimum hourly wage rate under the red book agreement

was $12.49 per hour. (Ex. 4 at 11) In addition, as of June 1,

2000, employers were required to make contributions of $3.75 per

hour for health and welfare benefits and $4.15 per hour to the
Western Conference of Teamsters Pension Fund. (Ex. 4 at 26-27)

Accordingly, the minimum hourly cost to the employer under the red

book agreement was $20.39. (Ex. 4) In addition, there were also

overtime and holiday pay provisions. (Ex. 4 at 13) Moreover, the

red book contract had a "most favored nations" clause which

provided that if Local 631 entered into any agreement with a

general contractor or independent contractor engaged in convention

services work at terms more favorable to that employer, the

signatories to the red book agreement could immediately incorporate

those more favorable terms into the red book agreement.

Occasionally, because of an unusually large demand for

workers, the Local 631 dispatch office was unable to fill the trade

show contractor's calls for workers. (Ex. 9 at 37-39; Ex. 8 at 14-

15) If the dispatch office was unable to fill a trade show

contractor's call, the trade show contractors could hire from any

source. (Ex. 2 at 194) Those subcontracted employees were to be

paid the contract rates. The red book contract provided that,

[i]t is the Company's intent in subcontracting

any work of a substantial, major or continuous

nature which is covered by this Agreement with

any person, firm, corporation, partnership, or

other organization to require the

subcontractor to observe the applicable wage

rates, hours, and working conditions as set

forth in this Agreement.

(Ex. 4 at 12)

In November 1999, Passo, who was then Special Assistant

to IBT General President James Hoffa ("Hoffa"), caused himself to

be assigned as Hoffa's Personal Representative to Local 631. (Ex.

20 at 113-14; Ex. 10)1 At the same time, Hoffa appointed James

___________________

1 As detailed below, from March 1999 through October 1, 2000,

Passo was Special Assistant to General President Hoffa and an

Santangelo ("Santangelo"), an IBT Vice President and also the

President of Joint Council 42 and the Secretary-Treasurer of Local

848, to be another of his personal representatives to local 531

(Ex. 13)

On April 5, 2000, Hoffa placed Local 631 in Trusteeship.

(Ex. 14) As detailed below, according to the Trusteeship Notice,

it was placed in Trusteeship because of member dissatisfaction with

the Local's officers, the failure to process grievances, the

subcontracting to non-Teamster employers work Teamsters had

performed, the termination of a business agent for alleged

political reasons and that one of the business agents made an

ethnic slur. (Ex. 14) Hoffa appointed James Wilkerson

("Wilkerson"), the retired principal officer of IBT Local 14 in Las

Vegas, to be Trustee and Marty Frates ("Frates"), a business agent

in Local 70 in Oakland, California, to be Assistant Trustee. (Ex.

14) Passo was Hoffa's monitor over the Local. (Ex. 12 at 76-77)

In June 1999, prior to Local 631 being placed in

Trusteeship, at an IBT Western Region Delegates meeting, Hogan,

then only the Vice President of Local 714, introduced his brother,

Michael P. Hogan, Sr. ("Michael Hogan"), to David Breymann

("Breymann"), then the dispatcher at Local 631. (Ex. 15 at 25-26;

______________________

International Representative. (Ex. 11) Effective October 1, 2000,

Passo was removed as Special Assistant to the General President.

(Ex. 11) He remains an International Representative. (Ex. 11)

Although his title was eliminated, his duties were unchanged. (Ex.

12 at 64, 197-99, 217-18)

Ex. 5 at 24-25)2 As detailed below, Michael Hogan was Vice

President 3f United Service Companies, which performed janitorial

and other services in the trade show industry at considerably less

than the IBT contract wages. (Exs. 18-19; Ex. 15 at 18; Ex. 20 at

87) Michael Hogan was also the CEO of Show Biz USA, a trade show

contractor. (Exs. 22-23; Ex. 15 at 18)

In June 1999, Hogan introduced his brother to the Local

631 dispatcher because United, the employer, wanted to enter into

an arrangement with Local 631 to supply labor to trade show

contractors. (Ex. 15 at 22-26)' As detailed below, shortly after

Hogan's June 1999 introduction of his brother to Breymann, United

Vice President Michael Hogan and United CEO Simon met with Murphy,

then Local 631's principal officer, and Breymann to discuss such an

agreement. (Ex. 25 at 25-27; Ex. 5 at 21, 27) Michael Hogan and

Simon proposed that when the Local 631 dispatch office could not

fill a trade show contractor's call for workers, United would

_______________

2 On August 8, 1996, based upon an IRB recommendation, the

IBT placed Local 714 in Trusteeship based upon nepotism, conflicts

of interest and a lack of democratic procedures at the Local. The

majority of issues that caused Local 714 to be placed in

Trusteeship concerned the Local's trade show and movie division.

(Ex. 16) As a result of the Trusteeship, Hogan, who had been the

Local's principal officer, was removed from office. As detailed

below, after the Local was released from Trusteeship, Hogan was

appointed Vice President of Local 714 in early 1999. (Ex. 15 at 10)

On or about March 9, 2000, Hogan was appointed President of Joint

Council 25 in Chicago and in May 2000 Hogan was appointed an

International Representative. (Ex. 15 at 14)

United Temps of Nevada, Inc., one of the United Service

Companies, was incorporated in Nevada on March 1, 1999. (Ex. 24)

supply the labor. (Ex. 25 at 25-28; Ex. 5 at 21, 27, 29)4 The
United employees would not be members of Local 631. (Ex. 25 at 114-

115). Under the employer's proposed arrangement, the trade show

contractors would pay United. United would then pay its employees,

who would be paid less than the amount required under the red book

contract. United also would make no benefit fund contributions.

(Ex. 25 at 114-115; Ex. 5 at 29-32) Secretary-Treasurer Murphy and

dispatcher Breymann summarily rejected the proposal. (Ex. 25 at 27-

28; Ex. 5 at 30) When Local 631 was placed in Trusteeship, Murphy

and Breymann were terminated.

As detailed below, prior to Local 631 being placed in

Trusteeship, Passo, Hogan, Santangelo and International

Representative Robert Turner ("Turner") on March 1, 2000 went to

Local 631 to instruct Murphy to take certain actions. (Ex. 15 at

86) At that time, Passo, Santangelo and Turner had each been

appointed Personal Representatives of the General President to

Local 631. (Ex. 32 at 14) Passo brought Hogan, who held no

International position and had no responsibilities with respect to

Local 631, to attend this meeting. (Ex. 21 at 263)

Hogan had no official IBT involvement in Local 631. (Ex.

_________________

4. As detailed below, prior to the Trusteeship, when the Local

631 dispatch office could not meet the trade show contractor's

calls with people registered in the dispatch office, the

dispatchers contacted the other two IBT Locals in Las Vegas and the
Carpenters Union in order to dispatch union members at union wages

to the trade show contractors. (Ex. 5 at 13-14)

12 at 60) His previous intrusion into its affairs was based upon

requests from his brother, an employer. Throughout the applicable

period, Hogan would continue to have no official role with Local

631. (Ex. 12 at 60) Passo was Hogan's conduit into Local 631

affairs. Passo and Hogan spoke to each other regularly while Passo

was involved with Local 631, both before and after the Trusteeship

was imposed . Hogan remained entwined with Passo and employers in

attempting to wring concessions from the Local.

After Hoffa appointed a Trustee and an Assistant Trustee

at Local 631, Passo continued to exercise substantial influence

over the Local's affairs. Hoffa's Executive Assistant Carlow Scalf

("Scalf") acknowledged that he and Hoffa had made Passo responsible

for "monitoring" Local 631. (Ex. 12 at 76-77) Hoffa admitted the

decisions made about the Local to a large extent were based solely

upon information Passo alone provided. (Ex. 78 at 43-48)

Throughout the time period involved, Hoffa and Scalf would grant

enormous power over the Local to Passo and ignore concerns from

other IBT officials about Passo's suspicious and disruptive

conduct.

After Local 631 was placed in Trusteeship, Hogan

____________________

5 During the two year period from March 1, 1999, when Passo

became Special Assistant to Hoffa, through February 25, 2001, the

last date for which Passo's telephone records were obtained, there

were, at least, 339 calls from Passo's IBT cellular telephone to

Hogan's cellular telephone or Hogan's home telephone and from

Hogan's cellular telephone to Passo's cellular telephone. (Exs. 33-

76, 282-84)

introduced Passo to United CEO Simon. Hogan wanted Passo to assist

United in securing an arrangement with Local 631 to supply labor to

trades show contractors. (EX. 20 at 64-67, Ex.15 at- 40-41) 6. At no

time did Passo or Hogan or any IBT employee on their behalf speak

to any United employee. (Ex. 20 at 109-111; Ex. 15 at 61) Indeed,

no one from the IBT attempted to organize the United employees.

(Ex. 79 at 19; Ex. 80 at 23; Ex. 81 at 29)'

Shortly after Local 631 was placed in Trusteeship, Passo

and Simon began attempting to convince Local 631 to agree to

concessions for United that would be substantially below the red

book contract. Passo would rendezvous with Simon at bars and

restaurants in Las Vegas. Passo agreed to Simon's proposals under

which the United employees would receive lower wages than the red

book contract required. (Ex. 20 at 204) Passo also agreed that

Simon should have concessions from payments for benefits the red
book contract signatories made. (Ex. 20 at 75-78) There were also

concessions to Simon with respect to overtime and other payments.

Throughout approximately the next four months, Passo continuously

pressured Local 631 officials to enter into a substandard

Passo, as shown below incredibly, denied knowing that

Michael Hogan had any involvement with United. (Ex. 20 at 69)

William Hogan testified that he "probably . . ." told Passo that

his brother worked at United. (Ex. 15 at 39)

Several individuals testified that the majority of United

employees appeared to speak only Spanish and their supervisors

tried to prevent them from speaking to the Teamsters who worked on

the trade shows. (Ex. 6 at 81-83; Ex. 83 at 6-9)

agreement, despite the most favored nations clause in the red book

agreement. (Ex. 20 at 158) Those union officials who resisted his

efforts to benefit Simon at the expense of members and working

individuals were removed from office at Passo's instigation.

As the Local's officials resisted Passo's efforts, the

proposal evolved. Initially, it was an obvious sabotage of the red

book contract. Even Passo's last offering on Simon's behalf

remained substantially below the red book contract.

At approximately the end of April or beginning of May

2000, Passo requested Roberta Whitfield ("Whitfield"), a Local 631

business agent for the trade show industry whose job Passo had

obtained for her, to meet with him and Simon at a restaurant. (Ex.

6 at 89-91, 93; Ex. 26 at 40-41) Whitfield requested Local 631

Assistant Trustee Frates, whom Hoffa had appointed and Passo had

not invited, to attend this steakhouse dinner. (Ex. 6 at 93-95; Ex.

82 at 49-51) Passo and United CEO Simon urged Frates and Whitfield

to have the Local enter into an agreement with United which

deviated substantially in United's favor from the red book

contract.

Under this Passo proposal, United would be called after

the Local 631 dispatch office was exhausted. (Ex. 6 at 103-04; Ex.

82 at 52-53; Ex. 20 at 161-62) As a consequence, Simon, instead of

the Local 631 dispatch office, would control which United employees

were sent to work. (Ex. 6 at 100-01; Ex. 82 at 51-52; Ex. 20 at

10

161-62; Ex. 84) United would pay its employees $8.00 per hour as

opposed to what signatories to the red book agreement would have

paid, the minimum hourly rate of $12.10 per hour plus benefit

contributions of $7.90 per hour. (Ex. 4 at 11, 26-27; Ex. 6 at 97)

Under the Simon-Passo arrangement described at this dinner, no

benefit fund contributions would be made on behalf of the United

employees until they had worked more than 150 hours in the

industry. (Ex. 6 at 97-98)3 Given the nature of Simon's workforce

and his ability to control who worked, it was doubtful many, if

any, would ever reach that total. Frates and Whitfield refused to
enter into such an agreement. (Ex. 6 at 97-104, 106-08, 114-116;

Ex. 82 at 73)

Passo also urged Local 631 Trustee Wilkerson to enter

into the agreement with Simon's company. (Ex. 26 at 43-46, 49)9

Consistent with business agent Whitfield's testimony, Wilkerson

testified that, under Passo's proposed arrangement, the United

employees would be paid $8.00 per hour. (Ex. 26 at 48-49)

This agreement evolved. In the best deal Simon and Passo

offered the union reflected in Passo's handwritten agreement with

United sent to the IBT's Legal Department on August 29, 2000,

months after this dinner meeting, the United employees would have

had to work 250 hours in the industry before any benefit fund

contributions would be made on their behalf. (Ex. 84)

According to Trustee Wilkerson, under Passo's proposal,

after the Local 631 dispatch office was exhausted, Simon's company

would be called instead of contacting the other IBT Locals in Las

Vegas and the other AFL-CIO affiliated unions for workers as had

been the Local's practice. (Ex. 26 at 45)

11.

Wilkerson, who described Simon's company as a labor broker, refused

to enter into Passo's proposal. (Ex. 26 at 44-46, 49)10

Passo frequently discussed Simon's proposal with Hogan

(Ex. 20 at 67-68, 78-83, 105-106, 176-77, 202-05; Ex. 21 at 283-84,

297; Ex. 15 at 76-77, 93-95, 99, 102-104, 110-11, 115, 117, 120)

On its face, the Passo proposed arrangement with Simon gave the

contractors a strong economic incentive to use United rather than

higher paid individuals dispatched from Local 631. (Ex. 6 at 108)

It also undercut the United employees who could have obtained the

work at the contract wage and with benefit contributions by

registering with the Local 631 dispatch office either as Local 631

members or non-members. Only Simon and, perhaps, the contractors

who used his company benefited from the cheaper labor.

Even under the most favorable description of the proposed

arrangement, Passo, Hogan and Simon would have created a class of

Teamsters in the Las Vegas trade show and convention industry that

would have received less in wages and have less benefit fund

contributions made than any non-union worker who merely registered

with the Local 631 dispatch office. (Ex. 84) Indeed, as detailed

below, as late as the end of August, Passo's handwritten agreement

with United provided for new classes of employees called "D1" and

10 Other experienced IBT officials, including International

Vice President Santangelo and Assistant Local 631 Trustee Frates,

also described United as a labor leasing company. (Ex. 32 at 26-27;

Ex. 82 at 77)

12

"D2" employees, who would have been paid wages less than the red
book agreement for, at least, the first 1,000 hours they worked in

the industry. (Ex. 84l)

Passo's efforts to cause Local 631 to enter into the

substandard agreement with United had no union benefit but were

designed to benefit the company and not its employees with whom

Passo shunned contact. Although devoting considerable time and IBT

resources to assisting Simon, Passo never spoke to any of the

United employees. (Ex. 20 at 109-110) Passo, Hoffa's very active

Local 631 monitor, never urged Local 631 to try to organize the

United employees. (Ex. 79 at 21-22) The United employees never

signed Teamster membership application cards or showing of interest

cards. (Ex. 20 at 207) Moreover, Passo's and Hogan's efforts to

pressure Local 631 officials to enter into an agreement with United

were inconsistent with the Local's Bylaws and the IBT's Organizing

Guide. (Ex. 293)11

_______________

11 For example, Section 27 of the Local 631 Bylaws provides

in pertinent part:

Whenever a collective bargaining agreement is

about to be negotiated, modified or extended

at the request of this Local union, the

principal executive officer shall call a

meeting at which the membership shall

determine and authorize the bargaining demands

to be made. The Local Union Executive Board

shall determine whether such meeting shall be

limited to the members in a particular

division, craft or place of employment . . . .

(Ex. 296 at 43) No analogous meeting was held with the United

13

Moreover, Passo never urged anyone to explain to the

United employees how to register with the dispatch office so they

would be paid pursuant the red book agreement when work was

available. Furthermore, if the Local had agreed, as Passo

continuously urged, to permit Simon to pay United's workers less

and give Simon a lower benefit contribution package than the red

book contract required for subcontractors, Passo would have caused

a substantial weakening in the Local's bargaining position in the

2001 red book contract negotiations. This latter was so obvious a

point that an employer raised it with Passo. (Ex. 20 at 203)

Trustee Wilkerson, Assistant Trustee Frates and business

agent Whitfield repeatedly rejected the proposed substandard

arrangement with Simon Passo pressed on the Local. Passo continued

in the face of all Local opposition to strive to assist Simon.

Passo repeatedly urged Wilkerson, Frates and Whitfield to sign and

support an agreement with major concessions to United. Indeed, to

secure Simon his favorable arrangement, Passo lied to Wilkerson

through representing falsely that besides his co-schemer Hogan,

Santangelo and Scalf wanted Wilkerson to agree to United's terms as

arranged with Passo. (Ex. 26 at 88-89) Scalf and Santangelo denied

____________________

employees. (Ex. 20 at 109-110) Not only were no United employees

consulted, but also Local 631 members who worked in the convention

industry and who would be impacted by Passo's planned concessions

were also not consulted.

14

Passo's representations. (Ex. 32 at 31, 41-43; Ex. 12 at 99-102)12

Wilkerson, Frates and Whitfield each separately told

Passo that his substandard proposals were unacceptable and United

had to enter into the red book agreement. (Ex. 26 at 44-50; Ex. 6

at 97-104; Ex. 82 at 73) Wilkerson and Frates emphasized to Passo

that the red book agreement contained a "most favored nations"

clause which would allow all the trade show contractors to demand

that they benefit from the concessions Passo was urging Local 631

to bestow on United. (Ex. 26 at 45-50; Ex. 82 at 69-70) At his

sworn examination, Passo claimed he had not understood the "most

favored nations" clause. (Ex. 20 at 159-60) This claim, as with

others Passo made, is not credible. That an employer under

contract would get to pay the same lower wage rate and make the

same reduced benefit fund contributions the union negotiated for

the same work with another employer is not difficult to understand.

There is no reason this simple concept would have escaped Passo.

Given the vast unfettered authority Hoffa delegated in at least two

Locals to Passo and the freedom Scalf, his supervisor, allowed him,
they obviously had some reason to believe Passo was capable of

understanding such basic concepts.

To justify the substandard arrangement with United, Hogan

_____________

12 Indeed, Santangelo told Wilkerson that he was right not to

enter into the agreement Passo proposed because "we would be all

dead. This would be crazy, you'd kill this whole industry." (Ex.

32 at 31) Santangelo also caused an IBT investigation into Simon.

(Ex. 32 at 44-45)

15

claimed that Local 631 regularly could not meet the contractor's

calls. (Ex. 15 at 24, 47-48) His assertions were based upon his

conversations with Passo and the trade show contractors, (Ex. 15 at

47-49, 57-58, 125-26) On the other hand, the Local 631 dispatchers

estimated that, since the Trusteeship, Local 631 was unable to meet

the call for workers only between one and three times. (Ex. 9 at

37-39; Ex. 8 at 14-15) Moreover, if "meeting the call" were truly

an issue for the Local and not an excuse to justify concessions to

Simon and Hogan's brother, Passo and Hogan failed to address the

alleged problem in any manner other than to attempt to sabotage the

red book contract. Neither Passo nor Hogan or any one under their

direction took any steps to have the Local cure the problem such as

by educating the United employees as to their right to register

with the dispatch office so they would be paid red book contract

wages when work was available. Nor did they suggest to the Local

it take steps to generally increase workers registered with the

Local 631 dispatch office. On the contrary, Passo, as discussed

below, using his prestige and power as Hoffa's monitor, advocated

the adoption of measures that would make it increasingly difficult

for the Local to meet the call. In sum, as International

Representatives, the sole Hogan-Passo solution to this "problem"

was to have the Local enter into a substandard contract with

Hogan's brother's company.

Among the hurdles Passo created for the Local meeting the

16-

call was that he opposed business agents directly dispatching

workers when the dispatch office was closed. (Ex. 6 at 72-73; Ex.

20 at 154-55; Ex. 82 at 44-45)13 Without anyone acting as a

dispatcher, obviously the Local could not meet a call. In

addition, Passo also strenuously opposed contacting non-IBT Locals

for workers after the Local 631 dispatch office had exhausted its

list. (Ex. 6 at 72-73; 88, Ex. 20 at 142, 45-46)14 This resulted,

as discussed below, in non-unionized United workers being used.

Passo and Hogan frequently communicated about the United

arrangement. (Ex. 20 at 67-68, 78-83, 105-106, 176-77, 202-05; Ex.

21 at 283-84, 297; Ex. 15 at 76-77, 93-95, 99, 102-04, 110-111,

115, 117, 120) In late July or early August 2000, Hogan

orchestrated a lunch among himself, Simon, Passo and Hoffa in

Chicago. (Ex. 20 at 165-66; Ex. 78 at 28; Ex. 15 at 66-67) The

proposed agreement with United was discussed at this meal. (Ex. 78

at 28; Ex. 15 at 69) According to Hoffa, Passo did not disclose to

him either before or after this lunch that he was pushing Local 631

_________________

13 Labor calls were frequently at night when the dispatchers

were not on duty. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25 at 33-34)

14 Passo's and Hogan's explanation for embracing the lower

paid non-union help solution was that the non-IBT unions would

eventually infringe upon the IBT's jurisdiction if non-IBT union

members were referred to work from the Local 631 dispatch office

after all individuals registered with the dispatch office were

working. (Ex. 20 at 141-51; Ex. 15 at 41-42) Showing the falsity

of this concern is that Passo's and Hogan's solution to this

speculative problem was to allow the trade show contractors to use

non-union employees of Hogan's brother's company who were paid a

rate lower than the red book contract.

17

officials to enter into an agreement with Simon's company. (Ex. 78

at 29) Indeed, he suspiciously did not indicate to Hoffa that he

had had any previous dealings with Simon._ (Ex 79 at 19) Again, at

this stage, despite involving the General President in Simon's

attempt to secure from Local 631 multiple concessions for Simon,

Passo and Hogan, and indeed no IBT officer or employee, had made

any attempt to organize the United employees. (Ex. 20 at 168, 170-

73; Ex. 79 at 21-22)

During the summer after the Local was placed in

Trusteeship, Hogan and Passo met in Las Vegas with representatives

of Freeman, one of the two main contractors in the Las Vegas trade

show and convention industry. Freeman, GES's main competitor in

Las Vegas, was also a signatory to the red book agreement. No

Local 631 employee, including the Trustee, was present at this

meeting with a Local employer. Hogan, who was present, had no

official role at all at Local 631. At this meeting, the Freeman

representatives expressed opposition to the substandard arrangement

with United that Hogan and Passo were supporting. According to

Passo, the Freeman representatives had to educate Passo and Hogan

that the proposed agreement granting concessions to United, "was a

bad idea because the contract negotiations were coming up in a year

for GES . . . .." (Ex. 20 at 203) Passo and Hogan both reported to

Scalf. Neither informed him about this meeting with the Freeman

representatives. (Ex. 12 at 146) Nor did they tell the Trustee.

18

Despite having no official role in Local 631 (Ex. 12 at

60), Hogan discussed with Simon the terms of the proposed

arrangement between local 631 and United where his brother was an

executive. Hogan's motive behind his support for the arrangement

was clear. During his sworn examination, Hogan noted, " . . . I

don't know what's wrong with helping my family, but apparently

somebody has got a problem with that . . . ." (Ex. 15 at 58-59)

Despite his multiple union offices, Hogan was unabashed in his

practice, as his union history showed even before Hoffa appointed

him as an International Representative, that the interests of his

family came before his obligations to union members.

As detailed below, on August 15, 2000 approximately two

weeks after the Chicago lunch with Simon, Hogan called Passo at

9:00 a.m..15 Hogan contacted Simon at 9:08 a.m.. The next call

from Hogan's cellular telephone was at 9:25 a.m to the offices of

GES's parent company, VIAD, in Phoenix, Arizona. Following that,

Hogan completed the circle and called Passo and spoke for eight

minutes. (Ex. 73) Hogan acknowledged the obvious, that he probably

spoke to Passo and Simon about the agreement with United during

these calls on August 15, 2000. (Ex. 15 at 110-11)16

According to IBT records, on the same day as this series

__________________

15 Both Hogan and Passo were in Las Vegas on August 15, 2000.

16 Hogan claimed that the call to GES's parent company was

unrelated to his conversations with Passo and Simon. (Ex. 15 at

110-11)

19
of telephone calls, Simon requested a ticket to the James R. Hoffa

Memorial Scholarship Fund ("Hoffa Scholarship Fund") golf outing in

Las Vegas (Ex. 85) By check dated September 8, 2000, Simon's

company, which was attempting to obtain major concessions from

Local 631 which the General President had placed in Trusteeship,

made a donation of $5,100 to the Hoffa Scholarship Fund. (Ex. 85)

This donation represented $300 for Simon's ticket to attend as a

non-golfer and golf fees of $1,200 each for Hogan's son, James

Hogan; Hogan's friend, Bill Marovitz, the Joint Council 25

lobbyist, and two other individuals. (Ex. 85; Ex. 86 at 32-33; Ex.

15 at 98 )

After Passo began to pressure Local 631's Trustee,

Assistant Trustee and business agent to enter into the substandard

arrangement with United, United employees, who were paid less than

the red book agreement required, began to perform work covered

under the Teamsters red book agreement. (Ex. 26 at 60-63)1' For

example, during the MAGIC show held between approximately August 24

and September 3, 2000, trade show contractor GES used United

employees to perform Teamster bargaining unit work. (Ex. 262) It

appears that Passo, who was in Chicago at this time, kept track of

these developments. On August 23 and August 27, 2000, there were

calls from Passo's cellular telephone to Simon's cellular

__________________________

17 In the past, United employees had performed janitorial work

in the convention industry. That work was not covered under the
red book agreement.

20

telephone. (Ex. 49)

On August 30, 2000, Assistant Trustee Frates had a

telephone conversation with United CEO Simon during which Simon

again tried to persuade Frates to implement Passo's substandard

arrangement with United. (Ex. 82 at 56-57) Once again, Frates told

Simon that unless he signed the red book agreement, the Local was

not willing to enter into an agreement with him. (Ex. 82 at 57)18

Trustee Wilkerson and Frates were present at the

convention site during the MAGIC show and observed numerous United

employees performing Teamster work for GES. (Ex. 6 at 73, Ex. 82 at

74-75; Ex. 26 at 63) They directed that grievances be filed

against GES. (Ex. 82 at 74-75; Ex. 26 at 63-69)19

Local 631's grievances concerning the use of the United

employees on the MAGIC show were sent via facsimile to GES on

September 5, 2000. (Ex. 151) Frates instructed business agent

Chuck Benboe ("Benboe"), the trade show business agent who handled

grievances, to vigorously pursue the grievances. (Ex. 82 at 83) On

September 8, 2000, Passo caused Frates to be terminated as

Assistant Trustee. (Ex. 82 at 7; Ex. 78 at 61; Ex. 12 at 147-51;

________________

18 Frates testified that in this conversation he told Simon

"to go pound salt." (Ex. 82 at 57)

19 During this show, Assistant Trustee Frates and business

agent Whitfield met with GES representatives and strongly objected

to the use of the United employees to do work that should have been

dispatched through Local 631 and paid at the contract rate. (Ex. 6

at 79-80; Ex. 82 at 74-75)

21

Ex. 20 at 234-36)20. As with Murphy, who resisted entering into a

substandard agreement with Hogan's brother's company, Frates was

removed. (Ex. 26 at 1ll-13; Ex.12 at 48) Passo also attempted to

reduce business agent Whitfield's hours to part-time. (Ex. 6 at 37-

40)

As detailed below, Passo belatedly provided to the IRB a

handwritten agreement with United which he sent to the IBT's Legal

Department on August 29, 2000, during the MAGIC Show. (Ex. 84)21

This proposed agreement granted substantial concessions to United

from the red book contract concerning, among other things, wages,

overtime pay and employer benefit fund contributions. (Ex. 84)

_____________________

20 According to Scalf, Frates was terminated because Passo

reported the following: Frates and Whitfield had discussions with

Local members about running for office, Frates was disrupting the

Local, Frates refused to process a grievance for Local 631 member

Jeff Dudash, Frates showed favoritism toward some members and he

did not adequately service the members. (Ex. 12 at 148-150) As

detailed below, Dudash had close ties to Passo. For example,

Dudash, who had no Local office, was the beneficiary of at least

nineteen meals with Passo at IBT expense when Passo was in Las

Vegas. (Exs. 122-25, 128-33; 142) Scalf did not investigate

Passo's allegations about Frates before Frates was terminated. (Ex.

12 at 147-51) Indeed, he did not even ask Frates to respond to

Passo's allegations. (Ex. 12 at 150)

21 Although Passo testified during his February 9, 2001 sworn

examination that he had searched for all notes concerning the

agreement with United and he did not have any such documents (Ex.

21 at 267), by letter dated April 11, 2001, Passo provided

handwritten notes setting forth an agreement with United. (Ex. 84)

The IBT also failed to provide this handwritten agreement with

United in response to an IRB document request dated February 9,

2001. (Ex. 88) On April 11, 2001, in a production coordinated with

Passo, the IBT provided a copy of this agreement from its files.

(Ex. 89)

22:

Passo's proposal created new classes of employee, "D1" and "D2"

employees, whom United would "recruit, hire and dispatch and

deliver to the trade show sites and convention sites (Ex 84)22 Under

Passo's agreement, the "D1" employees, who were defined as

employees with less than 250 hours work in the industry, would be

paid $10.00 per hour with no benefit fund contributions made on

their behalf. (Ex. 84)-" In contrast, under the red book agreement,

Supplemental Workers with less than 150 hours work in the industry

were paid $12.49 per hour with $7.90 per hour in benefit fund

contributions made on their behalf. (Ex. 4 at 11, 26-27)24

In addition, as detailed below, as a result of Passo's

concessions concerning overtime pay, under Passo's arrangement with

Simon, the D1 and D2 workers, which included workers with up to

1,000 hours in the industry, would have been paid $10.00 and $11.00

________________________

22 As discussed below, the red book contract had "A" list and

Supplemental Workers, who were sometimes referred to as "C" list

workers. (Ex. 4 at 3-4; Ex. 25 at 7-11)

23 Since Passo's agreement, which contained no seniority

provisions, would have given Simon complete control over

dispatching his employees, Local 631 would have no mechanism to

ensure that the United employees received even the substandard

wages and benefit contributions the United agreement required.

Under the red book agreement, the Local 631 dispatch office had

records of the individuals dispatched to work and the employer must

make benefit fund contributions on the first hour worked thereby

creating records at the health and welfare fund. (Ex. 4 at 26)

24 After working 150 hours in the industry, effective June 1,

2000, under the red book agreement, Supplemental Workers would be

paid $13.69 per hour with $7.90 in benefit fund contributions. (Ex.

4 at 11, 26-27)

23

per hour respectively for work performed between the hours of 10:00

p.m. and 6:00 a.m. unless they worked more than eight hours in a

day or 40 hours in a week. (Ex. 84) 25 in contrast, under the red

book agreement, a Supplemental Worker with more than 150 hours in

the industry would be paid $20.53 per hour during the hours of

10:00 p.m. and 6:00 a.m. whether or not they had worked eight hours

in a day or forty hours in a week. (Ex. 4 at 11, 13) This is

strikingly different than Passo's repeated claims that, pursuant to

the Passo-Simon arrangement, Simon's employees were only going to

be paid one dollar less per hour. (Ex. 20 at 81-82; Ex. 12 at 100)

Trustee Wilkerson complained to International Vice

President and Joint Council 42 President Santangelo and to Hoffa's

Executive Assistant Scalf about the substandard agreement with

United that Passo was constantly pushing on the Local. (Ex. 26 at

92-94; Ex. 12 at 101) Santangelo thought the arrangement Passo was

advocating was suspicious and in September 2000 asked Ed Stier

("Stier") from the IBT's RISE program to investigate Simon. Stier

subsequently told Santangelo "to stay away from him [Simon] and to

tell the Teamsters to stay away from him." (Ex. 32 at 46) Based

upon conversations he had with IBT General Counsel Patrick

Szymanski ("Szymanski"), on September 12, 2000, Scalf told Passo to

stop dealing with Simon. (Ex. 12 at 115-16)

25 The United employees usually performed Teamster bargaining

unit work at night. (Ex. 6 at 236-37; Ex. 90 at 36)

24

Trustee Wilkerson also complained to Hoffa and Hoffa's

Executive Assistant Scalf that Passo was interfering with his

ability to run the local. (Ex.26 at 86-87, 103-104)This was a

familiar complaint about Passo. Other Local and Joint Council

officials had complained about Passo's interference with their

work. (Ex. 91)26 In addition, Santangelo and other high-ranking IBT

officials from the Western Region also complained to Hoffa and

Scalf about Passo's activities at Local 631. (Ex. 32 at 33-34; Ex.

12 at 171-77)25 No investigation was made into the complaints about

____________________

26 For example, in a February 4, 2000 letter to Hoffa, Tony

Judge, then President of Joint Council 25, and Frank Wsol, then

Vice President of Joint Council 25, complained about Passo's

activities in Chicago concerning the Overnite strike. (Ex. 91)

Like other documents damning to Passo, the IBT did not produce that

document in response to an IRB document request. (Ex. 190)

27 It appears that Passo's presence in Las Vegas exacerbated

the problems which were given as the reasons for the imposition of

the Trusteeship. For example, the non-union United employees were

performing Teamster work at substandard wages. Furthermore, an

ethnic slur was also part of the IBT's rationale for the

Trusteeship. (Ex. 3) Passo made an anti-Semitic remark to the

owner of Bally's, an IBT employer, and was thrown out of that

hotel. (Ex. 78 at 74-75; Ex. 12 at 180-82) Passo was not

disciplined. (Ex. 78 at 75)

In addition, according to IBT Vice President Santangelo's

January 2000 report recommending that Local 631 be placed in

Trusteeship, nepotism was among the stated reasons for the

Trusteeship. (Ex. 3) Nevertheless, Passo instructed Trustee

Wilkerson to hire his friends, who were without appropriate

experience, for various positions at the Local. For example, Passo

directed that Vito LoCascio, a former member of Local 714 in

Chicago who had at least eighty-seven meals with Passo in Las Vegas

at IBT expense, be hired to work on the IBT's 2000 Get-Out-The-Vote

efforts in the U.S. Presidential election even though Locascio was

prohibited from voting himself due to his felony conviction. (Exs.

94-144, 146; Ex. 26 at 33)In addition, although another reason

25

Passo's stewardship of Local 631.

Passo, in turn, advocated with Hoffa and Scalf for

Wilkerson to be replaced as Trustee. (Ex. 20 at 242-244; Ex. 78 at

57; Ex. 12 at 151-52) This was after both Wilkerson and Santangelo

had complained to Scalf about Passo's substandard agreement with

United. (Ex. 12 at 99-101) On October 31, 2000, Scalf asked Ed

Jacobson ("Jacobson"), the Secretary-Treasurer of Local 252 in

Centralia, Washington, an International Representative assigned to

the Building Trades Division and the IBT's Director of Building

Trades for the Western Region, if he would serve as a replacement

for Wilkerson as the Trustee of Local 631. (Ex. 92 at 12; Ex. 12 at

154) On November 6, 2000, based upon Passo's recommendation, Hoffa

terminated Wilkerson as Trustee. (Ex. 148; Ex. 12 at 84-85, 127,

130)28 This was consistent with Passo causing the removal of Frates

_____________________________

given for the Trusteeship was the inexperience of the Local's

business agents, Passo arranged for Locascio, who held no union

position and with whom Passo spoke daily, to attend the Teamster

Leadership Academy for officers and business agents in October 2000

in Washington, D.C. at Local 631 expense. (Ex. 14; Ex. 147 at 29;

Ex. 78 at 55-56, 97; Ex. 145) At the time, there were Local

business agents who had not attended the TLA. (Ex. 1 at 151)

Moreover, it was a rare event for a member with no union position

to attend the TLA. (Ex. 93 at 28-29)

28 According to Scalf, Wilkerson was terminated because he

planned to run for office in Local 631, planned to dedicate the

union hall to a former officer without the IBT's permission,

purchased automobiles for the Local 631 business agents to use

without the approval of the IBT, did not maintain sufficient

contact with the IBT and stopped the Local's practice of giving the

members soda at meetings and installed a soda machine at the Local.

(Ex. 12 at 84-85, 127, 130) In other Trusteed Locals, such as

Local 815 located in Englewood Cliffs, New Jersey, the IBT waived

26

who had also resisted Passo's continuous efforts to have Local 631

enter into a substandard arrangement with Hogan's brother's

company. Between October 31, 2000, when Jacobson was asked to

replace Wilkerson and November 6, 2000 when Wilkerson was

terminated, there were, at least, thirteen telephone calls between

Passo and Hogan. (Exs. 50-51, 74-76)

On November 3, 2000, GES again used United employees to

perform bargaining unit work on the SEMA show while there were

Teamsters available to do that work. (Ex. 152) As a result, on

November 4, 2000 a grievance was filed against GES. (Ex. 152) GES

also used United employees to perform Teamster work on the CES show

in January 2001. (Ex. 153) Based upon this, on January 9, 2001,

Local 631 filed a grievance against GES. (Ex. 153) As of March 29,

2001, the grievances Local 631 filed against GES for using United

employees to perform Teamster work had not been resolved. (Ex. 2 at

____________________

IBT Constitutional dues requirements in order to allow employees

hired under the Trusteeship to run for office when they would

otherwise be ineligible to do so. (Ex. 12 at 128-29) Moreover,

Local 631 needed automobiles. (Ex. 149 at 92-93) They were

purchased in May, June, July, August and early September 2000,

months before the decision to terminate Wilkerson. (Ex. 150) As

discussed below, upon analysis, including a comparison with the

actions Passo was taking to give Simon substantial concessions with

significant consequences for Local 631 which Hoffa and Scalf

claimed were not disclosed by Passo to them, there is a make-weight

after-the-fact appearance to the explanations for terminating

Wilkerson. After Passo's disruptive conduct was brought to Hoffa's

attention by the International Vice Presidents and Scalf ignored

Santangelo's and Wilkerson's warnings about the substandard

contract Passo was arranging with Simon, as of March 2001, Passo

remained in place as Hoffa's Local 631 monitor.

27

219-229)29

In addition, it appears that during the Super Show in

January 2001, a trade show contractor that Michael Hogan owned,

Show Biz USA, attempted to use United employees with Trustee

Jacobson's indulgence to perform Teamster work. (Ex. 154; Ex. 155

at 21; Ex. 15 at 18)30 Business agent Whitfield and the show

stewards prevented this. (Ex. 155 at 21; Ex. 1S6 at 41-42)

Jacobson's and Benboe's sworn examinations were taken in

January 2001 at which they were asked questions about the failure

to pursue the grievances against GES for using the United employees

to perform bargaining unit work. (Ex. 92 at 93-94; Ex. 149 at 63-

74)31 During the same week as these sworn examinations,

representatives from GES in Las Vegas, including the person with

whom Benboe would have met concerning the grievances, traveled to

Chicago to discuss with Hogan, who had no role in Local 631, both
the grievances Local 631 had filed against GES concerning the use

_____________________________

29 Business agent Benboe, who was responsible for handling the

grievances, claimed that grievances where individuals were named

took priority over the grievances filed against GES for the use of

the United employees. (Ex. 149 at 63-65) The threat to Teamster

jobs and the Local's negotiating position for the new contract was

of no concern to him or Jacobson. (Ex. 149 at 63-74; Ex. 1 at 161-

63, 185)

30 The IRB has recommended that Jacobson be charged with

intentionally failing to cooperate with the IRB in January 2001.

31 Prior to these sworn examinations, the IRB had asked Local

631 to provide copies of grievances against GES concerning the use

of the United employees. (Ex. 294)

28

of United employees and the upcoming contract negotiations with

Local 631. (Ex. 15 at 124-28; Ex. 86 at 11-20) Hogan did not

inform Trustee Jacobson or Scalf, to whom Hogan reported, that he

had this meeting with GES representatives. (Ex. 15 at 127-28; Ex.

1 at 186-87; Ex. 12 at 144-45)

Subsequent to his meeting with the GES representatives

from Las Vegas and after the IRB's investigation began, Hogan

requested Hoffa and Scalf to allow him to be involved in

negotiating the trade show contract in Las Vegas. (Ex. 12 at 144;

Ex. 78 at 98) They refused Hogan permission. (Ex. 12 at 144; Ex.

78 at 98-99) Hogan also concealed from Scalf and Hoffa that his

brother was an officer of United. (Ex. 12 at 61-63; Ex. 78 at 30-

31) Indeed, Hogan did so as he sat with Hoffa and Passo while

Simon discussed a contract with Local 631. (Ex. 12 at 62, 97, 196;

Ex. 15 at 35-39)

III. JURISDICTION

Since Local 631 is a Trusteed Local and both parties

against whom charges are recommended are International

Representatives, the violations described herein appear to be

offenses committed against the International Union. Pursuant to

Article XIX, Section 5(a) of the IBT Constitution, it appears that

the IBT General Executive Board has jurisdiction over this matter.32

32 Article XIX, Section 5(a) provides in pertinent part:

Notwithstanding any other provision of this

29

Paragraph G(e) of the March 14, 1989 Consent Decree in

United States v. International Brotherhood of Teamsters, 88 Civ.

4486 (S.D.N.Y.) and Paragraph I(6) of the Rules and Procedures for

Operation of the Independent Review Board ("IRB Rules") require

that within 90 days of the IRB' s referral of a matter to an IBT

entity, that entity must file with the IRB written findings setting

forth the specific action taken and the reasons for that action.
Pursuant to Paragraph I(9) of the IRB Rules, not meeting this

deadline may be considered a failure to cooperate with the IRB.

IV. INVESTIGATIVE FINDINGS

A. Dane Passo's Background

On January 4, 1999, Dane M. Passo, date of birth April

18, 1953, was hired as a member of the Hoffa transition team. (Ex.

11) As of March 1999, General President Hoffa appointed Passo as

his Special Assistant and an International Representative. (Ex. 11;

Ex. 20 at 23-24)

Passo held the Special Assistant position until October

_________________

Constitution, the General Executive Board

shall have jurisdiction to try individual

members, officers, Local Unions or Joint

Councils or other subordinate bodies for all

offenses committed against the officers of the

International Union or the International

Union.

(Ex. 157)

30

1, 2000. (Ex. 20 at 24-25; Ex. 11)33 Passo continues as an

International Representative. (Ex. 20 at 23) Passo's duties did

not change after he was removed as Special Assistant to General

President Hoffa. (Ex. 12 at 217)

Passo's IBT salary is currently approximately $92,400.

(Ex.11;; Ex. 20 at 25)34 He also receives reimbursed expenses, a

car allowance of $400 per month and an incidental allowance of

approximately $216 per month. (Ex. 11)34

Passo is a member of Local 705 in Chicago. (Ex. 20 at 4)

While a Local 705 member, Passo was employed at Gersten Cartage for

approximately two or three years, Carolina Freight for

approximately fifteen years and ABF for approximately two years.

(Ex. 20 at 4, 16-17) He was a steward at Carolina Freight. (Ex.

20 at 18)

_______________

33 Hoffa testified that Passo was removed as Special Assistant

because some IBT Vice Presidents told him that Passo "was very

aggressive in putting forth his position. And they felt it would

be better if he didn't have that title." (Ex. 78 at 13-14) When

asked why Passo was removed as Special Assistant, Scalf testified,

"[b]ecause of him pushing his weight around and telling people that

he could get them fired and being a little more outspoken than he

should be and on the advice of counsel." (Ex. 12 at 197)

34 When he was hired at the IBT in January 1999, Passo's

salary was $67,500. (Ex. 11; Ex. 20 at 29) In March 1999, his

salary was increased to $75,000. (Ex. 11; Ex. 20 at 30) In January

2000, his salary was increased to $82,400. (Ex. 11) According to

Passo, in January 2001 his pay was increased to approximately

$90,000. (Ex. 20 at 25)

35 In 1999, Passo received approximately $5,700 in allowances.

(Ex. 158)

31

In 1992, then Local 705 President Daniel Ligurotis

("Ligurotis") hired Passo to be a business representative and

organizer at Local 705. (Ex. 20 at 18; Ex. 17)36 On December 31,

1993, after Local 705 was placed in Trusteeship, Passo was

terminated from his position at Local 705. (Ex. 20 at 19) Passo

then returned to work at ABF. (Ex. 20 at 19) Passo was injured

while working for ABF and received workers compensation. (Ex. 20 at

20) in 1996, Passo started working for the Hoffa campaign and ran

the Hoffa campaign in Chicago. (Ex. 20 at 61-62)

Prior to being hired as Special Assistant to General

President Hoffa, the only position Passo held with any IBT-

affiliated entity was his thirteen month employment as a Local 705

business representative. (Ex. 20 at 18-19) Passo never negotiated

_______________________

36 On April 2, 1992, the Investigations Officer charged

Ligurotis with embezzling $20,500, taking an illegal interest free

loan of $75,000 from Local 705 and interfering with the Local's

legal obligations by engaging in a pattern of conduct in which

corruption and unlawful activity were fostered and rewarded. (Ex.

159) The second charge alleged, among other things, that Ligurotis

allowed a Local 705 business agent convicted of extorting money

from an employer to continue to work at the Local as a

"maintenance" employee at a salary higher than when he was a

business agent and then appointed him a business agent when his

statutory bar expired; hired another individual as a business agent

who was barred from such employment with a labor organization as a

result of his arson conviction; engaged in contumacious conduct by

willfully interfering with the March 14, 1989 Consent Order in

United States v. IBT and possessed a loaded handgun on the Local's

premises in violation of the Local's rules which possession

resulted in the death of a fellow Local 705 officer. (Ex. 159)

After a hearing, the Independent Administrator found the charges

against Ligurotis proven and permanently barred him from the IBT.

(Ex. 160) On February 9, 1993, District Judge David N. Edelstein

affirmed the Independent Administrator's decision. (Ex. 161)

32

any collective bargaining agreements while employed at 705 or at

the IBT. (Ex. 21 at 290-91)37 Passo had no experience in the

convention industry. (Ex. 20 at 23) In addition, Passo did not

have any organizing experience. (Ex. 21 at 290-91) Passo never

even attended the full IBT Teamster Leadership Academy. (Ex. 21 at

288)

Hoffa's Executive Assistant Scalf supervised Passo. (Ex.

12 at 47-48) Passo also attended IBT General Executive Board

meetings as the Sergeant at Arms. (Ex. 20 at 53; Ex. 12 at 32)

B. William T. Hogan, Jr.'s Background

William Hogan, date of birth June 13, 1941, is currently

an International Representative, President of Joint Council 25 in

Chicago, Vice President of Local 179 and Organizing and Political

Director for Local 714. (Ex. 15 at 4; Ex. 162 at 8) Hogan's

salaries are: $62,000 from Joint Council 25, $50,000 from the IBT,

$92,000 from Local 714 and $6,000 from Local 179. (Ex. 15 at 16-17)

His total annual salaries from IBT entities is approximately

$210,000. In addition, Hogan is receiving a pension from the

Teamsters Affiliates Pension Plan. (Ex. 15 at 16-17)

In August 1996, based upon an IRB recommendation, the IBT

placed Local 714 in Trusteeship. (Ex. 16) The Local was placed in

__________

37 According to Passo, he sat in on negotiations Scalf

conducted with the New York, New York Casino in Las Vegas. (Ex. 21

at 290-91)

33

Trusteeship because of nepotism and conflicts of interest among

Hogan and his relatives who had ownership interests in companies

that employed Teamster members. (Ex. 16)38 At that time, Hogan was

Secretary-Treasurer of Local 714 and President of Joint Council 25

in Chicago. (Ex. 162 at 4, 11) After being removed as the Local

714 principal officer, Hogan continued as a Local 714 member until

approximately early 1997 when he retired. (Ex. 15 at 5)

In July 1998, Hogan's son, Robert Hogan, was elected

Secretary-Treasurer of Local 714 and the Local was released from

Trusteeship. (Ex. 15 at 5-6)39 In early 1999, Hogan was appointed

_________________________

38 According to the IRB's Trusteeship recommendation,

Nepotism and favoritism are prominent factors

influencing entry into and work assignments in

the Local's trade show/movie division which

refers members to the Local's best jobs.

Local members in positions of authority in

that division and their relatives own

businesses which are dependent for profits on

Local 714 employers. These business interests

with employers were not disclosed to members.

Moreover, the Local has also entered into

several apparently sham collective bargaining

agreements which allowed management members to

become Teamsters, and, in one instance,

allowed a company a Hogan relative owned, from

the beginning of the contract, until two years

later to avoid its contractual obligations to

make health fund contributions.

(Ex. 16)

________________

39 Robert Hogan had been Recording Secretary and a business

agent before Local 714 was placed in Trusteeship. (Ex. 16 at 8-9)

34

Vice President of Local 714. (Ex. 15 at 10-11)

On or about March 9, 2000, Hogan was appointed President

of Joint Council 25. (Ex. 15 at 4)40 On May 1, 2000, he was

appointed an International Representative. (Ex. 143) Hogan, who

was not assigned to a specific IBT department, reported to Scalf.

(Ex. 12 at 47) Hogan was never given any International assignment

in Las Vegas. (Ex. 12 at 60)

According to Hogan, he and Passo met in 1994 or 1995 in

connection with Hoffa's campaign for IBT General President. (Ex. 15

at 27-28) Hogan was the candidate for General Secretary-Treasurer

on Hoffa's slate in the 1996 election until Local 714 was placed in

Trusteeship and he resigned from the slate. (Ex. 164)

Hogan acknowledged that he and Passo were good friends.

(Ex. 15 at 76) Between April 4, 2000, when Passo arrived in Las

Vegas to impose the Trusteeship on Local 631, and November 19,

2000, when Passo left Las Vegas, there were approximately 80 calls

from Passo's IBT cellular telephone to Hogan's cellular telephone

and approximately 143 calls from Hogan's cellular telephone to

___________________

40 In 2000, there was an election at Local 714. Hogan was

ineligible to run for office because he had not been a member of

the Local in good standing for twenty-four consecutive months prior

to the election. Pursuant to Article XV, Sections 2(b) and 7 of

the IBT Constitution, in order to be a Joint Council officer, an

individual must be an officer of a Local union within the Joint

Council. In order to preserve Hogan's eligibility to continue as

the head of the Joint Council, in October 2000, he was appointed

Vice President of Local 179 located in Joliet, Illinois. (Ex. 15 at

5, 7-8 )

35

Passo's IBT cellular telephone. (Exs. 33-76) There was a total of

approximately 223 calls in this seven month period. (Exs. 33-76)41

Hogan was frequently in Las Vegas during the applicable

period. Hogan and Passo were both simultaneously in Las Vegas six

times in 2000. (Exs. 116-135, 166, 265-281) Between March 2000 and

November 19, 2000, when Passo left Las Vegas, Passo caused the IBT

to pay for ten meals he had in Las Vegas at which Hogan was also

present. (Exs. 118-119, 122, 123, 128, 129, 132, 133, 165)42

According to Passo's expenses, at two of these meals, on March 1,

2000 and May 7, 2000, only Passo and Hogan were present. (Exs. 118-

119, 122-23 and 165)43

C. Local 631's Collective Bargaining Agreement with the

Trade Show Contractors

Local 631 represents employees in the trade show and

convention industry in Las Vegas. There were approximately 1,400

_____________

41 This figure did not include calls from Passo's cellular

telephone to Joint Council 25 where Hogan was the principal officer

or calls from Hogan's cellular telephone to Local 631 where Passo

was the General President's Personal Representative. These calls

numbered eight and three respectively. (Exs. 45-75) Hogan was not

in contact with anyone else at the Local.

42 Former Local 714 member Locascio was present at six of the

ten meals Passo and Hogan had together. (Exs. 118-19, 122-23, 128-

29, 132-33, 144 )

43 On May 7, 2000, Hogan was in Las Vegas on a personal trip

with his friends, including Bill Marovitz, the Joint Council 25

lobbyist. (Ex. 15 at 97-98) As detailed below, Simon's company

paid for Marovitz's golf fees at the Hoffa Memorial Scholarship

Fund golf outing in September 2000. (Ex. 85)

36

Local 631 members employed in those industries. (Ex. 2 at 101) 44

Las Vegas has become one of the most popular convention sites in

the United States. (Ex. 25 at 18) The Las Vegas Convention Center

is expanding and as a result even more trade shows and conventions

will be held in Las Vegas.

Local 631 had a collective bargaining agreement with the

major trade show contractors in Las Vegas, GES and Freeman. (Ex.

4)aJ This collective bargaining agreement will expire on May 31,

2001. (Ex. 4)

As set forth in the red book agreement, the trade show

contractors were required to contact the Local 631 dispatch office

for workers. (Ex. 4 at 3)46 Prior to Local 631 being placed in

Trusteeship in April 2000, Breymann was the Local's dispatcher and

___________________

44 As discussed below, an individual did not have to be a

Local member in order to be referred to work from the Local's

dispatch office. Non-members were required to pay a monthly $40

dispatch fee. (Ex. 7 at 70; Ex. 77)

45 As noted above, this master contract is sometimes referred

to as the red book contract. (Ex. 6 at 106)

46 Pursuant to Article I, Section E of the red book contract,

It shall be the responsibility of Employer to

first call the dispatching office of the Union

for such employees as they may from time to

time need, and the office shall immediately

furnish to the Employer the required number of

qualified and competent workers of the

classifications needed and requested by the

Employer, strictly in accordance with the

provisions of this Article.

(Ex. 4 at 3)

37
Jennifer Dodds ("Dodds") was his assistant. (Ex. 9 at 13-14) As of

March 29, 2001, the Local's current dispatcher was Dodds. Frances

Almaraz ("Almaraz") and Susanna Montoya were her assistants. (Ex.

7 at 68; Ex. 8 at 6, 10-11)

The contract provided for an "A" dispatch list and a

Supplemental dispatch list, sometimes referred to as the "C" list.

(Ex. 4 at 3-4) The Supplemental list consisted of individuals who

had not worked 1,000 hours in the convention industry. (Ex. 4 at

4)47

There was no limit on the number of individuals who could

register in the Local 631 dispatch office for trade show and

convention work. (Ex. 2 at 101; Ex. 7 at 70) Every Thursday

individuals would go to the dispatch office to register. (Ex. 2 at

102; Ex. 7 at 70-71) In order to be placed on the dispatch list,

an individual had to complete registration forms, watch an

orientation video and pay either union dues or a monthly dispatch

fee. (Ex. 7 at 70, 87; Ex. 2 at 102)48

In addition, pursuant to the red book agreement, there

was a Convention Training Trust to which employer signatories must

pay $.06 for every hour a casual employee worked. (Ex. 4 at 16)

____________________

47 If an individual was classified as a Supplemental Worker

on or before May 31, 1997, they were included on the Supplemental

list if they had not yet accumulated at least 800 hours in the

convention industry. (Ex. 4 at 4)

48 Nevada is a right to work state.

38

The Convention Training Trust, which provided training for trade

show work including forklift certification classes, was designed to

provide a competent, stable workforce for the convention industry

in Las Vegas. (Ex. 2 at 247-50)17

The work covered in the red book contract included the

following:

The Employer recognizes the following work

herein outlined as being within the scope of

this Agreement and defined as erection, touch-

up painting, dismantling and repair of all

exhibits. This work is to include wall

coverings, floor coverings, pipe and drape,

painting, aisle coverings, hanging of signs

and decorative materials from the ceiling,

placement of all signs, erection of platforms,

and placement and care of furniture as well as

wiping down exhibits. The Employer further

recognizes within this scope the loading and

unloading of all trucks of common and contract

carriers as well as individual company

vehicles and the movement of freight, crates,

and rigging within its facilities, including

all work in the Company's warehouse facilities

will be bargaining unit work. In the areas of

rigging, packing and crating, the work

performed includes, but is not limited to,

unloading, uncrating, unskidding, painting,

and assembly of machinery and equipment as

well as the reverse process. It should be

noted that cleaning does not include mobile

washing.

(Ex. 4 at 10)

_____________________

49 Former Local 631 organizer Terry Newton, whom Murphy hired

in January 1999, testified that prior to Local 631 being placed in

Trusteeship, he and the then director of the Convention Training

Trust had met with representatives from the Nevada Employment

Department to try to put together a pilot program where unemployed

individuals would be dispatched to convention work through Local

631. (Ex. 168 at 8, 43-45)

39

The Local 631 red book contract did not include

janitorial work. United employees sometimes performed the

janitorial work in the trade show industry in Las Vegas. (Ex. 5 at

21, 39, 61) United employees were not members of any union. (Ex.

5 at 38)
The minimum wage rate in the red book agreement was

$12.49 per hour for Supplemental Workers with less than 150 hours

work in the industry. (Ex. 4 at 11) After a Supplemental Worker

worked more than 150 hours in the industry, the hourly rate,

effective June 1, 2000, was $13.69. (Ex. 4 at 11) A Supplemental

Worker who had worked more than 150 hours in the industry was

sometimes referred to as a "C Plus" worker. (Ex. 25 at 11; Ex. 4 at

3-4)

Pursuant to Article III, Section E of the red book

agreement, for work performed between the hours of 10:00 p.m. and

6:00 a.m., all employees were to be paid one and one half times the

base rate of pay. (Ex. 4 at 13) For Supplemental Workers who had

not worked 150 hours in the industry, this provision did not apply.

(Ex. 4 at 13)50 For example, effective June 1, 2000, for every hour

worked between 10:00 p.m. and 6:00 a.m., a C Plus worker would have

________________________

50 Pursuant to Article III, Section B of the contract,

Supplemental Workers who had worked less than 150 hours in the

industry only received time and one half after 8 hours in a day or

40 hours in a week, including hours worked between 10:00 p.m. and

6:00 a.m.. (Ex. 4 at 13)

40

to have been paid $20.53 per hour.51

Pursuant to the red book agreement, for each casual

employee the employer was required to make contributions of $3.75

for every hour worked to the Teamsters Local 631 Security Fund for

Southern Nevada ("Local 631 Security Fund") for health and welfare

and dental and vision coverage. (Ex. 4 at 26)52 Effective June 1,

2000, the employer was required to make contributions totaling

$4.15 per hour for each employee to the Western Conference of

Teamsters Pension Fund. (Ex. 4 at 26-27) Accordingly, under the

red book agreement, effective June 1, 2000, the minimum hourly cost

to the employer for wages and benefits for a worker dispatched

through Local 631 was $20.39.

During large shows when one show was moving out and

another show was moving in, the dispatch office occasionally ran

out of people registered with the dispatch office for work. (Ex. 7

at 84) However, once workers finished working on the exiting show,

they were then available to work on the incoming show. These

changes sometimes happened late at night or on weekends when the

dispatch office was closed. (Ex. 5 at 10-12; Ex. 82 at 44; Ex. 25

at 33-34) In those circumstances, individuals would have been

"rolled over" from one show to another. (Ex. 5 at 11-12; Ex. 2 at

_________________________

51 The base rate for a C Plus worker effective June 1, 2000

was $13.69. (Ex. 4 at 11)

52 Casual employees were workers sent through the dispatch

office. (Ex. 169 at 48-49)

41
192-193)

According to Breymann, when he was the dispatcher, if the

dispatch office list of registrants was exhausted, he contacted IBT

Locals 14 and 995 in Las Vegas and the Carpenters union to see if

they had out-of-work members who wanted to work in the convention

industry. (Ex. 5 at 14)53 In this way, Local 631 complied with the

contract, controlled the employees sent to work and ensured that

workers sent to the trade show contractors were paid pursuant to

the contract. After the Trusteeship was imposed in April 2000,

upon Passo's insistence, the dispatchers no longer called other

unions once the dispatch office was exhausted. (Ex. 9 at 15; Ex. 7

at 77-78; Ex. 26 at 78)

Both the dispatcher and assistant dispatcher recalled

only one specific show in 2000, the MAGIC show, where the Local

could not fill the call. (Ex. 9 at 37, 39; Ex. 8 at 14-15) In

January 2001, Dodds testified that the Local could not fill the

call "maybe three times" since the Local was placed in Trusteeship.

(Ex. 9 at 14)

If the Local 631 dispatch office could not supply the

requested number of workers, the trade show contractors could hire

from any source. (Ex. 26 at 23; Ex. 2 at 186-87; Ex. 7 at 98; Ex.

________________

53 The Local provided dispatch records showing that in late

1999 and early 2000, the Local 631 dispatch office referred members

of the Carpenters Union to work in the convention industry. (Ex.

170) However, the other IBT Locals in Las Vegas were usually
unable to provide workers. (Ex. 5 at 14; Ex. 7 at 94)

42

82 at 42-43)54 However, under the red book contract, any employee

who performed bargaining unit work had to be paid pursuant to the

red book contract even if they were not dispatched from Local 631.

(Ex. 26 at 63; Ex. 82 at 41-43; Ex. 2 at 186-87; Ex. 1 at 162-63)

The contract provided that,

[i]t is the Company's intent in subcontracting

any work of a substantial, major or continuous

nature which is covered by this Agreement with

any person, firm, corporation, partnership, or

other organization to require the

subcontractor to observe the applicable wages

rates, hours, and working conditions as set

forth in this Agreement.

(Ex. 4 at 12)

The red book contract also contained a "most favored

nations" clause which provided:

In the event the Union enters into any

agreement with any General Contractor,

Independent Contractor or Contractors

Association engaged in convention services

work, which has terms more favorable to that

Employer than the terms of this Agreement, the

Union shall immediately submit to the Employer

signatory herein, a copy of such Agreement,

and if the Employer signatory herein deems

said Contract or Agreement more favorable to

the Employer signatory herein, the Employer

may replace this Agreement with the more

favorable Article or Section and said Article

or Section shall immediately be in full force

and effect.

(Ex. 4 at 32)

___________________________________

54 The red book agreement provides that, "workers hired from

any other source will be laid off as if they were 'Supplemental

Workers.'" (Ex. 4 at 8)

43

In addition, the red book agreement contained a grievance

procedure. (Ex. 4 at 20) Pursuant to Article VII, Section A of the

contract, representatives of the union and the employer were to

meet every other Wednesday to discuss grievances filed in the

previous two weeks. (Ex. 4 at 20) If a grievance was not resolved

at this first step meeting, it was referred to a Joint Conference

Board. (Ex. 4 at 20)55 Pursuant to Article VII, Section A of the

red book contract, a Joint Conference Board hearing was required to

be held within thirty days of a request by either party to hold

such a hearing. (Ex. 4 at 20) If a grievance was not resolved at

the Joint Conference Board, the matter was to be sent to

arbitration. (Ex. 4 at 20)

D. United Service Companies

According to the United website, Ben Stein ("Stein")

founded United Service Companies in Chicago approximately forty

years ago. (Ex. 27) Richard Simon is the current Chairman of

United. (Ex. 27; Ex. 171)56 Currently, there are, at least, three

companies under the United umbrella: United Maintenance Company,

Inc. ("United Maintenance"), United National Maintenance, Inc. and

United Temps of Nevada ("United Temps"). (Exs. 19, 24 and 27)

______________________

55 The Joint Conference Board is sometimes referred to as a

four man panel. (Ex. 2 at 186)

56 Stein died in September 1996. (Ex. 28)

44

United Maintenance was incorporated in Illinois on March

2, 1982. (Ex. 19) The President of this company is Carol D. Stein,

Stein's daughter. (Ex. 19; Ex. 15 at 59-60) According to the

United website, United Maintenance "provides custodial,

maintenance-related, and many other specialized services to

corporate headquarters, airlines, airports, hotels, commercial

property, hospital, schools, universities, etc . . . .." (Ex. 27)

United National Maintenance was incorporated in Nevada in

October 1984. (Ex. 19) Simon is the President of United National

Maintenance. (Ex. 19) The Secretary and Treasurer of this company

is Stein's daughter, Carol. (Ex. 19) According to the United

website, United National Maintenance "provides services to the

trade show industry and major stadiums on a national level.

Currently in more than 25 major cities in 14 states." (Ex. 27)

United Temps of Nevada, Inc. was incorporated in Nevada

on March 1, 1999. (Ex. 24) The President is Simon and the

Secretary is Carol D. Stein. (Ex. 24) On May 12, 2000, United

Temps of Nevada was registered as a foreign corporation in

Illinois. (Ex. 24) Simon is the registered agent. (Ex. 24) In

Illinois, United Temps of Nevada has the assumed name United Temps.

(Ex. 24) According to the United website, United Temps "provides

temporary labor for major events and institutions on local and

national levels." (Ex. 27)

Hogan described Simon's company in Las Vegas as "a labor

45

service . . .." (Ex. 15 at 148) Santangelo, Wilkerson and Frates

described it as a labor broker. (Ex. 32 at 26; Ex. 26 at 49; Ex. 82

at 77)

1. Ben Stein

United's website broadcasted that Ben Stein had been the

owner of United before Stein's death in 1996. (Exs. 27-28) Stein,

who was convicted of bribing a union official in the 1960s, was

reported to have ties to organized crime figures including La Cosa

Nostra member Dominic Senese ("Senese"), who was also a local

Teamster official. (Ex. 28) Simon also knew Senese well. (Ex. 30)

The arrangement Passo, Hogan and Simon proposed to Local 631 was

similar to those Stein had reportedly been involved with in the

past where his employees were paid wages below a prevailing

contract. (Exs. 28-31)

In 1964, Stein, then the owner of National Maintenance

Company, was indicted for labor racketeering and bribery. (Ex. 28)

According to news reports, Stein was charged with bribing various

union leaders to allow his company at job sites the unions

controlled to use non-union workers, who were described in news

reports as "skid row" workers, for as little as $1.00 per hour when

his company's collective bargaining agreements required the

employees to be paid $2.75 per hour. (Ex. 28) In 1966, Stein was

convicted in federal court in Chicago for labor racketeering and

bribery. (Ex. 28) Stein was convicted of bribing four labor

46

officials including Joseph Glimco ("Glimco"), then President of IBT

Local 777. (Ex. 28)5' Stein was sentenced to eighteen months in

federal prison and fined $2,000. (Ex. 28)

In 1969 Stein's conviction was overturned on the bribery

counts reportedly because the government admitted it had used

information improperly obtained via wiretap and a new trial was

ordered. (Ex. 28) Stein subsequently pleaded guilty to bribing a

film carriers union official. (Ex. 28) Stein was sentenced to one

year in prison. (Ex. 28)

In the mid 1970's, Stein and Senese, an organized crime

member and then the principal officer of IBT Local 703, obtained a

loan of $5.25 million from the IBT Local 710 Pension Fund. (Ex. 28)

According to news reports, Stein and Senese used this money to

invest in a building to provide a tax shelter. (Ex. 28) Senese was

subsequently barred from the IBT for being a member of organized

crime. United States v. IBT, 941 F.2d 1292 (2d Cir. 1991). (Ex.

29) 56

2. Richard Simon

Simon has worked for United for approximately 30 years.

(Ex. 27) In a September 1980 news article, Simon was described as

________________

57 The other labor officials were Edward Donovan, Secretary-

Treasurer of Local 755, a non Teamster Local described as a film

carriers Local; and business agents Harold Hawkins and Ralph Stark

of Local 25 of the Janitors Union. (Ex. 28)

58 Senese died in January 1992. (Ex. 31)

47-

the Vice President of United Maintenance and as a Chicago Police

Department patrolman. (Ex. 172) This article reported that Simon

had known Stein since 1965, when Simon was fourteen years old. (Ex.

172) Simon also knew LCN member Senese for years. (Ex. 30)

Since approximately April 1997, Simon has been an officer

on the Board of Directors for the Chicago Convention and Tourism

Bureau. (Ex. 172) Hogan claimed he met Simon approximately ten to

fifteen years ago. (Ex. 15 at 30)59 Hogan is also on the Board of

Directors for the Chicago Convention and Tourism Bureau. (Ex. 15 at

31)

Passo testified that he may have seen Simon at a Hoffa

fundraiser during the 1996 IBT election. (Ex. 20 at 65) According

to Passo, he first met Simon when Hogan introduced him to Simon

after Local 631 was placed in Trusteeship. (Ex. 20 at 64)

3. Michael P. Hogan, Sr.

Michael Hogan, a brother of William Hogan, is Vice

President of United. (Ex. 15 at 18-20; Ex. 18; Ex. 173 at 7, 19)60

Michael Hogan had been the Local 714 chief steward in the Local's

trade show division from the mid 1970s to 1978. (Ex. 174 at 10-11;

Ex. 175 at 128; Ex. 176) While Michael Hogan was the Local's chief

____________________

59 Simon was Vice Chairman of the "Chicago Salutes Bill Hogan,

Jr." dinner held on or about May 7, 1997. (Ex. 199)

60 During a February 1996 sworn examination, Michael Hogan's

son, Michael P. Hogan, Jr. who was a member in the Local 714 trade

show division at that time, testified that his father was employed

at United Maintenance Company. (Ex. 173 at 19)

48

steward in the trade show industry, he was also an officer of

O'Hare Exposition Maintenance, a cleaning company that did work in

the trade show industry. (Ex. 177) Between 1976 and 1979, Michael

Hogan and Dale Torii, Hogan's brother-in-law, were both officers of

O'Hare Exposition Maintenance. (Ex. 178) At that time, Michael

Hogan was also a Local officer and the Local's chief steward in the

trade show industry. (Ex. 179 at 3; Ex. 174 at 10-11)61

Between approximately 1980 and April 1985, Michael Hogan

was either the Secretary-Treasurer or President of Rosemont

Exposition Services ("Rosemont"), a trade show contractor. Local

714 had a collective bargaining agreement with Rosemont. (Ex. 181;

Ex. 182 at 95-99; Ex. 162 at 88) During that time, Michael Hogan's

father and his two brothers, including William Hogan, were Local

714 officers. (Exs. 285-290)

In 1996, three cleaning companies performed cleaning work

at McCormick Place, the main trade show and convention site in

Chicago: United Maintenance, Exhibition Maintenance and Century

Maintenance. (Ex. 183 at 14, 17-18)62 United Maintenance continues

to perform work at McCormick Place. (Ex. 15 at 19) Local 714

represents members who work for trade show contractors at McCormick

Place.
__________________

61 O'Hare Exposition Maintenance was dissolved on May 1, 1987.

(Ex. 180)

62 Torii, William and Michael Hogan's brother-in-law, owned

Exhibition Maintenance. (Ex. 183 at 6-7, 24)

49

Michael Hogan, Jr., a Local 714 member and son of Michael

Hogan, explained that United Maintenance handled empty crates at

McCormick Place. (Ex. 173 at 19) A "labor service", Readymen,

Inc., provided workers to United Maintenance. (Ex. 173 at 22-23)

Hogan, head of Joint Council 25, acknowledged that he did not know

if the Chicago United employees who worked at McCormick Place were

members of any union and he never tried to organize them. (Ex. 15

at 30, 147)

During his February 2001 sworn examination, Hogan

testified that his brother Michael was employed at United

Maintenance. (Ex. 15 at 18)" Michael Hogan is also the CEO of Show

Biz USA, a trade show contractor. (Ex. 22-23; Ex. 15 at 18) As

discussed below, Show Biz USA was the general contractor for the

Super Show which was held in Las Vegas in January 2001. (Ex. 155 at

6-7, 19; Ex. 154; Ex. 147 at 20)

Passo knew that Michael Hogan owned a company in the

convention industry. He claimed not to know the name of the

company. (Ex. 20 at 66-67) Passo also denied knowing that Michael

Hogan had any involvement with United. (Ex. 20 at 69) Hogan

testified that he probably told Passo that his brother worked at

United. (Ex. 15 at 39) Indeed, given the frequency of

communication among William Hogan, Passo and Simon relating to

63 He claimed not to know his brother's position with United.

(Ex. 15 at 18)

50

United, it is difficult to credit Passo's claim he was unaware

Michael Hogan was an officer of United. Indeed, Michael Hogan's

involvement with United was known to Local members on the

convention floor. (Ex. 205 at 15-16; Ex. 156 at 36) Michael Hogan

had also introduced himself as being associated with United to the

Local's Secretary-Treasurer and dispatcher before the Trusteeship.

(Ex. 25 at 41; Ex. 5 at 21, 27, 33)

E. Hogan Introduced Local 631 Officials to his brother,

Michael Hogan

In the Local's 1998 election five slates of candidates

ran. (Ex. 3) Murphy was elected Secretary-Treasurer. He took

office in January 1999. Murphy rehired Breymann as dispatcher.

Breymann had been the Local's dispatcher from January 1990 through

December 1992. (Ex. 5 at 6)

Hogan acknowledged that his brother Michael asked to be

introduced to Local 631 officials. (Ex. 15 at 22-24) His brother

told him, " . . . Rick [Simon] has been negotiating with the prior
administration to do some things here for the labor problems here

in Las Vegas." (Ex. 15 at 24)64 Hogan agreed to make the

introduction. (Ex. 15 at 22)

Accordingly, during a Western Region Delegates meeting in

_______________

64 Hogan also testified that his brother told him that Simon,

"was trying to set up some kind of a deal to supply labor that

would be Teamsters." (Ex. 15 at 24)

51

Las Vegas in late June 1999,65 Hogan introduced his brother to

Breymann at Bally's Hotel. (Ex. 15 at 25-26; Ex. 5 at 22, 25)66

This was approximately three months after United Temps was

incorporated in Nevada. (Ex. 24)

Passo also attended the Western Region Delegates meeting

in June 1999. (Exs. 100 and 101) When asked whether he told Passo

that his brother Michael worked for United, Hogan testified,

Probably, but I'm not sure. I don't know that

I ever made that known to Dane.

When Mike came over in Las Vegas that time

Dane was there, it's very possible then I said

to Dane: 'You know, Mike is -- you know -- he

is my brother. He is talking to those guys

from the Local.'

And that's a possibility, but I don't really

recall. I don't know that I ever did that.

(Ex.15 at 38-39)

According to then Local 631 Secretary-Treasurer Murphy,

during the Western Region Delegates meeting, he introduced himself

__________

65 The Western Region Delegates meeting was held on June 28

and 29, 1999 at Bally's Hotel. (Ex. 185) Registration for the

meeting was on June 27, 1999. (Ex. 185) According to Local 714

records, Hogan was at the Bally's Hotel in Las Vegas from June 27

to June 30, 1999. (Ex. 186) In addition, Murphy charged a meal at

the Bally's Hotel on June 28, 1999 in connection with the Western

Region Delegates meeting. (Ex. 187)

66 According to Breymann, the meeting was not open to the

public; only Teamster members were permitted to attend. (Ex. 5 at

25) Hogan testified that he made the introduction during a

cocktail reception at the Western Region Delegates meeting. (Ex. 15

at 22-23, 29)

52

to Hoffa and Hogan. (Ex. 25 at 15, 17, 26, 41-43)67 Hogan, in

Hoffa's presence, asked Murphy if he would be willing to meet with

some people who were not identified. (Ex. 25 at 17-19, 25, 27)

Murphy agreed. (Ex. 25 at 17)

F. Meeting Between United's Michael Hogan and Richard Simon

and Local 631 Secretary-Treasurer Murphy and Dispatcher

Breymann

After Murphy's conversation with Hogan and Hoffa, Michael

Hogan contacted Breymann to arrange a meeting. (Ex. 25 at 26)

Murphy recalled Breymann stated that Michael Hogan told him, "You

had a conversation with Mr. Hoffa and Mr. Hogan, and they said that

you would be willing to meet with us." (Ex. 25 at 26)

Murphy and Breymann met with Michael Hogan and Simon at

the Rio Hotel in Las Vegas, shortly after the Western Region

Delegates meeting in June 1999. (Ex. 25 at 25-26, 57; Ex. 5 at 21,

______________

67 According to Murphy, he introduced himself to Hoffa and

Hogan because he "was having some problems within the local with a

member who said he was affiliated with James P. Hoffa and the

Hogans out of Chicago." (Ex. 25 at 16) Murphy identified this

member as Vito Locascio. (Ex. 25 at 16) Locascio " . . . said he

was sent here by James Hoffa to oversee, see what's going on here

at the local, to head up his campaign during the campaign time of

his --- before he was elected . . . .." (Ex. 25 at 16) According to

Murphy, Hoffa and Hogan denied knowing Locascio. (Ex. 25 at 17) As

detailed below, after Local 631 was placed in Trusteeship, Passo

charged to the IBT at least eighty-seven meals where Locascio was

present. (Exs. 118-135, 144) Passo also arranged for Locascio to

attend the Teamster Leadership Academy, a rare event for a non-

officer or business agent. (Ex. 93 at 26-27) Locascio's relatives

lived across the street from William Hogan. (Ex. 86 at 29) Hoffa

said Passo introduced him to Locascio. (Ex. 78 at 97) When in

Washington, Locascio met with Hoffa. (Ex. 78 at 55; Ex. 147 at 52)

53

27), During this meeting, Michael Hogan and Simon gave their

business cards to Murphy and Breymann. (Ex. 25 at 40-41; Ex. 5 at

33; Exs. 18 and 171)61 Michael Hogan's business card reflected he

was Vice President of United Service Companies. (Ex. 18) On

Simon's business card he was identified as the CEO of United

Service Companies. (Ex. 171) Michael Hogan informed Murphy during

this meeting that he was Hogan's brother. (Ex. 25 at 26)

Both Michael Hogan and Simon spoke to Murphy about

entering into an arrangement with United. (Ex. 25 at 33-35) As

Murphy recalled:

Well, we met there, and the conversation went

on where the main frame of the conversation

was with Mike Hogan and Richard Simmons or

Simon, or whatever his last name was, was he

wanted to be able to -- he knew that we had a

problem with supplying sometimes the amount of

people that were needed for the setting up or

tear-downs at the conventions.

And he said he represented a company that

would be able to have 300 people-plus at any

time that the local was unable to fulfill its

call, and that he would be willing to pay back

to myself or the union a fee.

There was never a dollar figure. There was a

suggested fee of seven to ten dollars a body

or a head when they used those people.

And I informed them at that point that I felt

that would, first of all, possibly be illegal;

second of all, I believe it would violate my

contract with the convention companies that I

represent; and third of all, that it would

_______________

68 On Simon's business card given to Breymann, Simon noted his

cellular and home telephone numbers. (Ex. 5 at 66)

54

probably be in violation of my hiring hall as

well.
I wasn't going to go to jail or lose my

contract either way.

(Ex. 25 at 27-28)

Murphy explained to Michael Hogan and Simon that since he

was in office Local 631 had been able to meet the contractor's

calls because Breymann "did an excellent job at going out and

rolling the people over from show to show at 10:00, 11:00, 12:00

o'clock at night. He would put the efforts in there to see that

our people were working first." (Ex. 25 at 34) Murphy also

explained that if Local 631 could not fill the call through people

registered with the dispatch office, "we would go to the other

unions and seek help from them to fulfill our contractual

obligations." (Ex. 25 at 29) The other unions the Local went to

were the Laborers and the Carpenters Union. (Ex. 25 at 48) After

Murphy was removed, Passo would end the practice of going to the

other unions.

Under Michael Hogan's and Simon's proposal, the employees

of United would not have become Local 631 members and United would

not have entered into a collective bargaining agreement with the

Local. (Ex. 25 at 114-15; Ex. 5 at 29-32) Murphy understood from

the conversation with Michael Hogan and Simon ". . . that GES would

pay Simon's company directly . . . .." (Ex. 25 at 37) As Breymann

recalled,

55

. . . The only thing I had a real problem with

was they wanted to know whether or not they

could work their payroll out directly with the

employer rather than working directly,

underneath the contract which I said

"Absolutely not. Everybody needs to be

properly dispatched and there needs to be a

record, especially if these people are paying

a fee and so forth, I'm going to give them

credited hours." I could not see doing it any

other way . . . .

(Ex. 5 at 30) Murphy also understood that the United employees

would be paid less than the wages required under the red book

contract. (Ex. 25 at 38)

According to Murphy and Breymann, in addition to Michael

Hogan and Simon, two representatives from a carpet company were

also present at the meeting at the Rio Hotel. (Ex. 25 at 25, 40-41;

Ex. 5 at 21,27, 33)69 Murphy and Breymann testified that the

carpet company representatives asked that former Local 631 business

agent Tex Kimberlin ("Kimberlin") and former Local 631 steward

Manny Piaz be permitted to resume their roles in the convention

industry. (Ex. 25 at 28-29, 32-33; Ex. 5 at 33-36) 70 Both Murphy

and Breymann found it unusual that employer representatives made

____________________

69 Murphy testified that the representatives were from McNabb

Carpet. (Ex. 25 at 25) Breymann believed they were from Exhibitor

Carpet Services. (Ex. 5 at 33) Local 631 has collective bargaining

agreements with both companies. (Ex. 188)

70 It appears that Kimberlin worked as a labor coordinator for

Show Biz USA, a company Michael Hogan owns. (Ex. 26 at 56-57)

56

this request. (Ex. 25 at 33; Ex. 5 at 37-38)71

During the summer 1999 meeting, Murphy and Breymann

refused to agree to the arrangement Michael Hogan and Simon

proposed. (Ex. 25 at 35; Ex. 5 at 29-32) They also would not agree

to the requests the carpet company representatives made. (Ex. 25 at

25, 28-29; Ex. 5 at 34-36)72

G. Passo's Initial Involvement with Local 631

In approximately February 1999, the IBT and Joint Council

42 began to receive complaints from Local 631 members. (Ex. 32 at

6; Ex. 189)" For example, Local 631 member Locascio, a self-

proclaimed Hoffa and Hogan associate and a former member of Local

714 in Chicago whose relative lived across the street from Hogan,

contacted Santangelo about problems he claimed existed at Local

__________________

71 Breymann testified, ". . . I think it is out of the normal,

but I don't know. That just sent up a red flag." (Ex. 5 at 37-38)

72 Breymann testified that Kimberlin, who had been one of the

business agents for the convention industry before January 1999,

left a really bad taste in my mouth because of

a grievance that I had personally filed back

in '92, and it was worth a rather large sum of

money. And he turned around and asked me to

drop it, I refused to, and he ended up

dropping the case anyway. Never gave me a

reason as to why because it was fully

documented. And anybody who conducted

business like that on behalf of the members I

felt was less than appropriate.

(Ex. 5 at 35)

73 United Temps of Nevada was incorporated in Nevada on March

i, i999. (Ex. 24)

57

631. (Ex. 147 at 26; Ex. 86 at 29; Ex. 25 at 16) Former Local 631

Secretary-Treasurer Murphy testified that prior to the Local being

placed in Trusteeship, Locascio tried to solicit complaints from

members about Murphy. (Ex. 25 at 60)74

Scalf claimed that the IBT received numerous telephone

calls complaining about Local 631. (Ex. 12 at 38-39, 73) In

response to a request for records concerning all telephone calls

the IBT received regarding Local 631, the IBT provided copies of
only two telephone messages. (Exs. 190-91)75 Scalf's assistant, Leo

Deaner ("Deaner"), was responsible for handling member complaints.

(Ex. 192 at 11; Ex. 12 at 220-22) Deaner kept no records

concerning any of the complaints he received. (Ex. 192 at 14-15)76

In or about August 1999, Secretary-Treasurer Murphy

terminated Local 631 Vice President Frank Christian ("F.

Christian") as a business agent. (Ex. 193) According to Murphy, F.

Christian had failed to follow the Local 631 dispatch rules. (Ex.

________________

74 Locascio supported a slate of candidates in the 1998

election that ran against Murphy's slate. (Ex. 25 at 57-58)

75 Both messages were for Leo Deaner, Scalf's assistant. (Ex.

191) One message was from former Local 631 Vice President Frank

Christian dated February 10, 2000. (Ex. 191) The other message was

from Robert Hill, a Local 631 member and then a chief steward in

the trade show industry, dated November 2, 2000. (Ex. 191; Ex. 291

at 32)

76 Scalf testified that Deaner told him that Locascio called

about Local 631. (Ex. 12 at 222)

58

25 at 70)77 On or about October 14, 1999, Murphy filed charges

against F. Christian for failing to follow dispatch procedures.

(Ex. 194)78 In March 2001, the IBT dismissed these charges. (Ex.
195)

After Murphy's rejection of Simon's proposal in

approximately the summer of 1999, events happened rapidly. During

a September 15, 1999 general membership meeting, Local 631 member

Jeff Dudash ("Dudash") made a motion to conduct a vote of no

confidence against Secretary-Treasurer Murphy. (Ex. 196) By letter

dated October 4, 1999, then Local 631 Vice President F. Christian

informed General President Hoffa of this no confidence vote. (Ex.

197) The letter noted that Dudash made the motion and Locascio

seconded the motion. (Ex. 197)

Even at this stage, Passo was active. Passo brought the

complaints regarding Local 631 to Hoffa's attention. (Ex. 20 at

113-14; Ex. 21 at 256-60) Passo requested Hoffa to appoint him to

be Hoffa's Personal Representative to Local 631. (Ex. 20 at 113-14)

On November 5, 1999, Hoffa granted Passo's request. (Ex.

10) Hoffa also appointed Santangelo and International

Representatives Turner and John Kikes ("Kikes") to be Personal

________________

77 According to Santangelo's January 2000 report to Hoffa, he

found that F. Christian was terminated "for his independent

opinions at meetings and job sites." (Ex. 3 at 4)

78 It also appears that F. Christian filed charges against

Murpny.

59
Representatives to the Local. (Exs. 13-14; Ex. 32 at 16-17)

Santangelo, Turner and Kikes conducted an investigation into the

complaints regarding Local 631. (Ex. 3)

On February 29, 2000, there were five calls from Hogan's

cellular telephone to Passo's cellular telephone. (Exs. 68 and 76)79

The next day, on March 1, 2000, Passo, Hogan, Santangelo and Turner

went to Local 631 to speak to Secretary-Treasurer Murphy. (Ex. 25

at 65-66; Ex. 20 at 116; Ex. 15 at 100; Ex. 32 at 13) At the time

Hogan went with Passo and Santangelo to Local 631, Hogan did not

have any IBT position or any assigned role with respect to that

Local. (Ex. 12 at 60)80 Hogan testified that he was in Las Vegas

at this time because he was on a labor panel for the Exhibitor

Assisted Contractors Association which was then having a meeting in

Las Vegas. (Ex. 15 at 83-84)81

In March 2000, prior to Local 631 being placed in

______________________

79 On February 17, 2000, Passo and William Hogan had a meal

together in New Orleans during the AFL-CIO Convention. (Ex. 15 at

81-82; Ex. 20 at 120; Exs. 116 and 117)

80 Hogan was not appointed an IBT Representative until May

2000. (Ex. 143) Indeed, Scalf, Hoffa's Executive Assistant who

supervised Hogan as an International Representative, acknowledged

that he never had given Hogan an assignment in Las Vegas. (Ex. 12

at 60 )
82 Local 714 paid for Hogan to travel to Las Vegas at this

time. (Exs. 265-66) On the credit card statement the notation for

Hogan's trip to Las Vegas was "IBT MTG." (Ex. 265) Hogan was in

Las Vegas from February 28 through March 2; 2000. (Ex.. 265) Passo

was in Las Vegas from February 29 through March 2, 2000. (Exs. 118-

119)

60

Trusteeship, Hogan and Passo visited the Las Vegas Convention

Center together. (Ex. 15 at 84-85) Hogan claimed,

They asked me to come with them, is all. I

don't remember how I hooked up with them.

Well, Dane was there. He knew I was there.

He called me. We walked through the Hall. I

think after we went through the convention

center we went back to the Local office . . . .

(Ex. 15 at 86)

On March 1, 2000, Passo's IBT records reflected that he

charged to the IBT a meal he had with Hogan, Santangelo, Turner and
F. Christian, the Local 631 Vice President whom Secretary-Treasurer

Murphy had terminated as a business agent. (Exs. 118-119) Also on

March 1, 2000, Passo and Hogan met alone to discuss Local 631.

(Exs. 118-19)82

Passo's March 1, 2000 appearance at the Local was the

first time Murphy had seen Passo at Local 631. (Ex. 25 at 22-24)

During this meeting, Passo, Hogan, Santangelo and Turner told

Murphy that General President Hoffa recommended that he do three

things: rehire business agent F. Christian and office employee Pam

Peabody and terminate Leslie Johnson. (Ex. 20 at 116; Ex. 15 at

100; Ex. 32 at 13; Ex. 25 at 65-66; Ex. 193)83 On March 3, 2000,

____________________

82 This meal, which cost $166.21, was at Piero's Italian

Cuisine. (Exs. 118-19) Where asked why he discussed Local 631

business with Hogan at this meal, Passo claimed, "[t)o tell you the

truth, I don't know how he got involved in that." (Ex. 20 at 128)

Since Passo was the one who involved him, the statement is not

credible.

83 Johnson and Murphy live together. (Ex. 25 at 69)

61

Murphy wrote to Hoffa setting forth his reasons for not complying

with these requests. (Ex. 193; Ex. 25 at 66)

According to Passo's IBT records, the next day, March 2,

2000, he, Hogan, Locascio, who had been a Local 714 member when

Hogan was the Local's principal officer, Locascio's brother

Michael, and Sherri Muckler, a steward in the convention industry,

met to discuss Local 631. (Exs. 118-19; Ex. 147 at 34, 133-134; Ex.

20 at 129-31)84 Santangelo and Turner were absent.

Between the March 1, 2000 meeting at Local 631 and April

5, 2000, when Local 631 was placed in Trusteeship, there were at

least twenty-one calls from Hogan's cellular telephone to Passo's

cellular telephone. (Exs. 67-69)85 In addition, during this period

there were seven calls from Passo's cellular telephone to Hogan's

cellular telephone. (Exs. 43-45, 76)

H. General President Hoffa Placed Local 631 in Trusteeship

In January 2000, IBT Vice President and Joint Council 42

President Santangelo forwarded a report to General President Hoffa

recommending that Local 631 be placed in Trusteeship. (Ex. 3) In

his written report, Santangelo found that

Local 631's contracts and the work they cover

do not seem to be protected. Lots of Teamster

work is being allowed to slip away to outside

____________

84 Locascio's cousin, Sebastian Maniscalco, lived across the

street from Hogan. (Ex. 147 at 45; Ex. 86 at 29)

85. Six of the. twenty-one calls were longer than five minutes.

(Exs. 67-69)

62

contractors. If this is not stopped,

hundreds, if not thousands, of Teamster jobs

will be lost.

(Ex. 3 at 4) In addition, Santangelo reported that grievances were

not being filed, members of the Stagehands and Carpenters unions

were trying to get Local 631 members to join those unions, Local

business agents were not performing their duties, Murphy was

replacing stewards who acted independently and one of the Local's

business agents made an ethnic slur. (Ex. 3)

Santangelo described in his report the investigation that

he and Personal Representatives Kikes and Turner did. (Ex. 3) In

addition, Santangelo attached to his memorandum reports Turner and

Kikes had prepared. (Ex. 3) Although Passo had also been appointed

a Personal Representative to Local 631 and had been in Las Vegas

actively meeting with former Local 714 member Locascio, he did not

prepare any written report. Nor was he mentioned in Santangelo's

report about Local 631. (Ex. 32 at 19; Ex. 3)

On April 5, 2000, Hoffa placed Local 631 in Trusteeship.

(Ex. 14) Hoffa appointed James Wilkerson, the former principal

officer of Local 14 in Las Vegas, as Trustee. (Ex. 198)86 In

addition, Hoff a appointed Marty Frates, a business agent from Local

70 in Oakland, California and a Hoffa appointee to a UPS National

__________________

86 Between March 1965 and April 1995, Wilkerson had been

employed at Local 14 in Las Vegas. (Ex. 26 at 5-6) He was the

principal officer of Local 14 for 28 years.- (Ex. 26 at 5-6)

Wilkerson had also been a Trustee and the. Recording Secretary, for

Joint Council 42. (Ex. 26 at 6)

63

Grievance Panel, as Assistant Trustee. (Ex. 198; Ex. 82 at 5-8, 10,

64)87

Wilkerson had retired as the Secretary-Treasurer of Local

14 in April 1995. (Ex. 26 at 5) In approximately 1966, then IBT

General President James R. Hoffa had appointed Wilkerson to be

Trustee of Local 14. (Ex. 26 at 15) In approximately September

1999, Santangelo asked Wilkerson if he would be interested in

coming out of retirement and becoming the Trustee of Local 631.

(Ex. 26 at 7-8) After Wilkerson's conversation with Santangelo,

also in approximately September 1999, Hoffa called Wilkerson and

asked if he would be interested in becoming Trustee of Local 631.

(Ex. 26 at 7, 11) Wilkerson agreed. (Ex. 26 at 11-14)

According to the Trusteeship notice, Local 631 was placed

in Trusteeship for the following reasons:

1. Membership discontent is at a dangerous

level. Members complain that the Local Union

has failed to file grievances or failed to

file them in a timely manner, the Local has

failed to keep members abreast of the status

of grievances, and has negotiated substandard

agreements with employers ....

2. Members have complained that the Local

Union has failed to enforce the collective

bargaining agreements. Work previously

performed by Local 631 members is being

subcontracted to non-Teamster employers. If

this is permitted to continue, a substantial

number of jobs will be lost as a result of

87 Frates has been a business agent with Local 70 for twenty-

three years. (Ex. 82 at 6) Frates had been a Local 70 Trustee for

approximately seven years in the 1970s. (Ex. 82 at 6)

64

employers diverting traditional Local 631 work

elsewhere ....

3. Local members and staff have complained

that officers and representatives of the Local

are inexperienced and unable to provide

adequate representation to the members . . . .

4. As a result of the Local's failure to

provide the representational services to which

members are entitled, general membership

meetings have become hostile, chaotic and

counter-productive . . . .

5. In addition, employment decisions by the

Principal Officer have reportedly been

motivated by political animus . . . .

(Ex. 14) The Trusteeship notice described the appointment of

Santangelo, Turner and Kikes to be the General President's Personal

Representatives to Local 631 and their activities in that capacity.

(Ex. 14) Passo had also been appointed a Personal Representative

to Local 631 but his involvement was not disclosed and his

activities not listed. (Ex. 14)

On April 5, 2000, Passo was a member of the group that

went to Local 631 to seize the Local to put it in Trusteeship. (Ex.

21 at 264-65) Secretary-Treasurer Murphy and the Local's other

officers were terminated. (Ex. 26 at 14) In addition, several

other Local employees, including dispatcher Breymann, were also

removed. (Ex. 5 at 55-56)

On April 5, 2000, the day the Local was placed in

Trusteeship, there were five calls from Passo's cellular telephone

65

to Hogan's cellular telephone. (Exs. 45, 76)88 In addition, there

were two calls from Hogan's cellular phone to Passo's cellular

phone on April 5, 2000. (Exs. 69, 76)

Passo selected Local 631 member Whitfield to be one of

the business agents for the convention industry. (Ex. 26 at 40-41;

Ex. 6 at 5) She began work effective April 13, 2000. (Ex. 6 at 5)

Whitfield had been a Local 631 member since March 1983. (Ex. 200)

She had worked in the convention industry for twenty-three years

and had been a steward in the convention industry since the 1980s.

(Ex. 6 at 11)

After the Local was placed in Trusteeship, Benboe was

also hired as a business agent for the convention industry. (Ex. 26

at 40) Benboe had been a business agent with Local 222 in Salt

Lake City and Local 190 in Billings, Montana. (Ex. 149 at 6)89

Whitfield worked in the field. Benboe was responsible for handling

grievances in the convention industry. (Ex. 26 at 41-42)

After Local 631 was placed in Trusteeship, Passo remained

in Las Vegas for long periods over several months. He was in Las

Vegas for the following periods: eleven days from April 4 through

April 15, 2000; 60 days from April 19 through June 19; 11 days from

__________

88 The April 5, 2000 calls from Passo's cellular telephone to

Hogan's cellular telephone were made at the following times: 7:49

a.m, 11:14 a.m, 1:09 p.m., 7:47 p.m. and 7:56 p.m.. (Exs. 45, 76)

89, Immediately prior to being hired at..Loca1 631, .Benboe was

employed at the Riviera Hotel and Casino. (Ex. 149 at 9)

66

July 5 through July 16; 21 days from August 3 through August 24; 33

days from September 6 through October 9; 6 days from October 20,

2000 through October 26 and 14 days from November 5 through

November 19, 2000. (Exs. 120-135, 201) Of the 229 days between

April 4 and November 19, 2000, Passo was in Las Vegas for 156 days.

(Ex. 201)90

According to Scalf, after the Trusteeship, Passo

"monitored" Local 631. (Ex. 12 at 76-77) Trustee Wilkerson

admitted that although Passo was regularly at Local 631, he did not

know what Passo's duties were in Las Vegas. (Ex. 26 at 6, 23)

Passo explained his presence to Wilkerson as being to ensure

Hoffa's re-election. (Ex. 26 at 28-29) Wilkerson recounted Passo

stating:
"I'm here to get -- my job is to get Hoffa

reelected." Eventually he'd say, "You know,

I'm Hoffa (sic) personal assistant. He wants

me to make sure things are going good in Las

Vegas."

(Ex. 26 at 28-29)91

_______________

90 The IBT paid approximately $18,501 in hotel bills, $11,522

in car rental bills, $8, 653 in airfare and $21, 256 in meals and

other expenses, including gasoline, for Passo's stays in Las Vegas.

(Exs. 120-135, 201) Accordingly, the IBT paid approximately

$59,932 for Passo's trips to Las Vegas between April 4, 2000 and

November 19, 2000. (Exs. 120-35, 201)

91 When asked what Passo did in Las Vegas, business agent

Benboe testified,

Basically, it was just-my- understanding that

he was here to help assist in the reelection

campaign that is upcoming for Mr. Hoffa, and

67

I. Hogan Introduced Passo to United CEO Simon

After the Local was placed in Trusteeship, Hogan

introduced Passo to Simon because he knew that Simon unsuccessfully

had tried to reach an arrangement with the Local's prior officers.

(Ex. 15 at 24-25; Ex. 20 at 64-65, 67) Hogan claimed he made this

introduction only after Passo reported to him that the Local was

regularly unable to meet the calls the trade show contractors made

for employees. (Ex. 15 at 47-48) If Passo asserted this, there

appears to be no factual basis for Passo's claim. 12

As a result of Hogan's introduction, Passo and Simon

began discussing an arrangement between United and Local 631. (Ex.

_____________________

he was also here to advise Washington, D.C. on

the status of the local, how we were coming

together.

Apparently, my predecessors did not do that

well of a job in representation. He was kind

of an overseer.

Again, I want you to understand I was never

directly told that, but this is what I

deducted.

(Ex. 149 at 15-16)

92 Passo claimed that he told Hogan that Local 631 could not

meet the calls on almost all shows. (Ex. 21 at 266) However, Passo

admitted he knew that the Local was unable to meet the call only on

large shows. (Ex. 21 at 266) Moreover, as noted above, in January

2001, the Local's dispatcher testified that the Local was unable to

meet the call for workers "maybe three times" in the nine month

period since the Local was placed in Trusteeship. (Ex. 9 at 14)

Passo's and Hogan's exaggeration of the lack of ability to meet the

call was part or their scheme to justify extraordinary concessions

to United.

68

20 at 73-74) Under the initial Passo-Simon arrangement, Local 631

would grant United significant concessions from the red book

contract covering work in the trade show and convention industries.

United would be contacted for employees after the Local 631

dispatch office ran out of individuals to refer to work. (Ex. 20 at

160-61)53 In reaching their arrangement, Passo and Simon only met

in bars or restaurants. (Ex. 20 at 73-74, 88, 103, 109, 165, 172-

74) They never met at Local 631 or United's offices. (Ex. 20 at

73-74, 88, 103, 109, 165, 172-74)

Simon told Passo that his United employees were paid

$6.00 per hour. (Ex. 20 at 87) As discussed above, the minimum

hourly rate under the red book agreement was $12.49, $6.49 per hour

more. Indeed, the federal minimum wage was $5.15. (Ex. 202) In

addition, under the red book contract, United would have had to pay

$7.90 per hour per employee in benefit contributions. (Ex. 4 at 11,

26-27)

According to Passo, he gave Simon a copy of the Local's

contract with GES. Simon instructed Passo that he should have

concessions from that agreement. (Ex. 20 at 75-77) Passo then

pressed them on the Local. (Ex. 20 at 84-85) For example, in

____________________

93 According to Passo, Simon's company would be called after

all individuals registered with Local 631 had been called and IBT

Locals 14 and 995 had also been called. (Ex. 20 at 160-61) In

contrast, Trustee Wilkerson understood from his conversations with

Passo that, under the proposed agreement, Simon's company would be

called before Locals 14 and 995 and the non Teamster, LCr7als. (Ex.

26 at 44-45)

69

Simon's first proposal Passo advocated there were to be no employer

benefit contributions. (Ex. 20 at 75-77; Ex. 26 at 45)

Passo told Local 631 officials that Simon had between 300

and 400 employees that he was willing to put in the union. (Ex. 26

at 47; Ex. 149 at 41-44, 59, 82; Ex. 82 at 73) The actual

employees' decision on membership was irrelevant to Passo's plan.

Passo and Hogan and no one under either's direction ever spoke to

the United employees. (Ex. 20 at 109-110 Ex. 15 at 60) United

employees did not sign any showing of interest cards for the

Teamsters or any Teamster membership applications. (Ex. 20 at 207;

Ex. 26 at 53; Ex. 15 at 61)

The United employees never designated the IBT or Local

631 as their bargaining representative. Indeed, Local 631, under

Passo's oversight and Hogan's guidance, never tried to organize the

United employees. (Ex. 20 at 109-110, 207; Ex. 6 at 103-104; Ex. 82

at 52-53)9' For example, the Local's organizer, Ray Isner

______________________

94 William Hogan testified as follows:

Q: Have you ever been to the United Maintenance offices in

Las Vegas?

A: No.

Q: Have any employees of Mr. Simon's company ever signed any

"showing of interest" cards with the Teamsters?

A: Not that I'm aware of.

Q: How many employees are there of Mr. -Simon's company?

A: I have no idea.

70

("Isner"), who was involved in all organizing efforts since the

Trusteeship, and the two other organizers assigned to Local 631

never tried to organize United. (Ex. 79 at 14-16, 19-22; Ex. 80 at

23; Ex. 81 at 29)

Moreover, before discussing any agreement with United CEO

Simon, Passo and Hogan and no one at their direction ever held a

meeting with the United employees to formulate bargaining demands

analogous to what Article 27 of the Local 631 Bylaws required for

IBT members. (Ex. 20 at 109-110 Ex. 15 at 60; Ex. 296) Indeed, as

detailed below, Passo's and Hogan's actions to get an agreement for

United were inconsistent with the provisions of the IBT's

Organizing Guide. However, they were consistent with colluding

with an employer to obtain concessions from a governing contract.

Most of Simon's employees appeared to speak only Spanish.

(Ex. 90 at 9-11; Ex. 6 at 90, 97; Ex. 156 at 27-28; Ex. 82 at 74;

Ex. 83 at 6-7; Ex. 203 at 25; Ex. 26 at 67; Ex. 204 at 8; Ex. 155

at 13) Local 631 members noted United supervisors were assigned to

each work crew of Simon's employees. (Ex. 83 at 23; Ex. 90 at 28-

30; Ex. 6 at 81-82) These supervisors prevented Spanish speaking

Q: Do you know what they are paid?

A: I have no idea.

Q: Do they receive benefits?

A: I have no idea..

(Ex. 15 at 61)

71

Local 631 members from talking to Simon's employees. (Ex. 90 at 30;

Ex. 6 at 81-83; Ex. 156 at 52; Ex. 83 at 9)

Passo's lack of interest in the employees was evident by

his actions. Shortly after the Trusteeship was imposed, Local 631

member and trade show steward Henry Ortega ("Ortega") suggested to

Passo putting together a program to reach out to the Las Vegas

Hispanic population to join the union and receive training for work

in the convention industry. (Ex. 204 at 10-12) 95 Passo never

contacted Ortega about his proposal. (Ex. 204 at 12) In addition,

at a Local 631 membership meeting, Local 631 member Alina Hernandez

("Hernandez") proposed that the red book contract be translated

into Spanish. (Ex. 83 at 12-13) According to Hernandez, Passo had

her escorted out of this meeting. (Ex. 83 at 12-13)

In order to protect Teamster wages and benefits under the

red book agreement and to assist the United employees, despite

obstacles erected by Passo, Local 631 members informed Simon's

employees they could register at the Local 631 dispatch office to

secure work at the contract wage rate with benefit fund

contributions made on their behalf. (Ex. 83 at 6-8; Ex. 155 at 31-

32; Ex. 86 at 21; Ex. 6 at 90; Ex. 156 at 29) Indeed, if Simon's

employees had registered with the Local 631 dispatch office, they

would have been sent to work when necessary to meet the call and

______________

95 Trustee Jacobson had a similar conversation with Orfieaa.

(Ex. l at 132-33)

72

would have been paid pursuant to the red book agreement which

provided for a minimum $12.49 per hour wage rate and health and

welfare and pension contributions to be made by the employer on the

first hour worked, as opposed to Passo's arrangement.96

J. Passo Pressured Local Officials to Enter Into a

Substandard Arrangement with United

1. Passo Urged Trustee Wilkerson to Enter into a

Substandard Arrangement with Simon's Company

After Passo conferred with Simon, in approximately June

2000, Passo spoke to Trustee Wilkerson about an arrangement for

concessions to United. (Ex. 20 at 95; Ex. 26 at 43-46, 49)

Wilkerson immediately recognized the agreement Passo advocated for

Simon was substandard and he would not sign it. (Ex. 26 at 44-50)

Passo wanted Wilkerson to sign an agreement which

provided that if the Local could not fill the call with people from

the dispatch office,

[r]ather than go to [Local] 14 or

[Local] 995 or the Stagehands or the

Carpenters or Laborers. The deal was that we

would call these guys, this company. And he

would furnish those people at a much lesser

scale.

__________

96 Instead, as detailed below, Passo, Simon and Hogan colluded

to create a new. subclass of employees,-the D1 and D2 -workers, who

would not be eligible for the contract rates. (Ex. 84)

73

(Ex. 26 at 45)97 Wilkerson would not sign the agreement because,

"[t]here was no health and welfare, no pension, wage scale was much

less than what the standard wages were in the existing contracts."

(Ex. 26 at 45) Under Passo's proposed agreement, Wilkerson

understood that United would pay its employees $8.00 an hour, while

the minimum hourly rate under the red book contract was $12.49 an

hour. (Ex. 26 at 48; Ex. 4 at 11) In contrast to Passo's

arrangement which would only cost the employer $8.00 per hour per

employee, as discussed above, the minimum hourly cost to the

employer per employee under the red book agreement was $20.39. 98

Accordingly, under Passo's proposal made to Wilkerson, Simon would

have saved a minimum of $12.39 per hour per employee. At the two

or three hundred employees Passo claimed he was talking about,

Simon would have paid $2,478 to $3,717 less per hour than the red

book contract signatories for non A list labor. Passo did not have

a draft of this proposal. (Ex. 20 at 78; Ex. 21 at 267)

Wilkerson also recalled under Passo's first proposal that

Simon's employees would not immediately become members of Local

631, "but in an elongated process, eventually they would probably

become members." (Ex. 26 at 46) Wilkerson responded negatively to

___________________

97 According to Wilkerson, Passo told him that United had 400

people available to fill the calls from the contractors. (Ex. 26 at

52)

98 This figure included contributions for casual employees of

$3.75 per hour for health and welfare benefits and $4.15 per hour

to the Western Conference Pension Fund. (Ex. 4 at 26-27)

74
this Passo arrangement. As Wilkerson recounted, " . . . in reading

his notes and listening to him [Passo], I said, "You're wasting

your time with me. You are not going to get anywhere with that

piece of crap with me." (Ex. 26 at 46)

Passo asked the Local's attorney, Joseph Kaplan

("Kaplan"), to persuade Wilkerson to approve the agreement. (Ex. 26

at 46) Kaplan agreed with Wilkerson that the agreement "would be

absolute error." (Ex. 26 at 46)99 Wilkerson told Passo, "'I can't

be a party to that. Period. You're breaking down conditions here .

. . .." (Ex. 26 at 52) Despite Passo being repeatedly told the

negatives, which were obvious, of his arrangement to assist Simon,

Passo, with no rational countervailing arguments, kept pressing

Local 631 officials for its acceptance.

Furthermore, Wilkerson specifically focused Passo on the

red book contract's "most favored nations" clause which would allow

the other trade show contractors to reduce the wages they paid to

the level of the agreement that resulted from Passo's concessions

_______________________

99 When asked what he told Wilkerson about the agreement,

Passo testified as follows:

[t]hat I was negotiating a contract with Rick

Simon and I told him about the wages, the cut

wages, the cut in benefits and he didn't know,

you know, if we should give him a break or

not.
He didn't like the idea. I talked to Joe

Kaplan. Joe Kaplan didn't like the idea.

(Ex. 20 at 95)

75

to Simon's company. (Ex. 26 at 48) Passo acknowledged that

Wilkerson and the Local's attorney told him about the "most favored

nations" clause. (Ex. 20 at 158-59) In approximately August 2000,

Assistant Trustee Frates also reminded Passo, in the face of his

urging concessions for Simon, about the most favored nations clause

in the red book contract. (Ex. 82 at 70)

In an unpersuasive attempt to explain his persistence in

seeking concessions for Simon, Passo contended he was ignorant of

the most favored nations clause's meaning. He testified:

Q: And what did you discuss about that?

A: To tell you the truth, I didn't understand it in the

beginning.

Q: At some point did you have a discussion about it where

you had looked at the contract and you understood what

the issue was?

A: Yes, I understood -- it was made know to me about the

favored nations clause by the attorney and by Jim

Wilkerson.

Q: What did Mr. Wilkerson tell you about the most favored

nations clause?

A: That, you know, you we can't let people work for

different rates. To tell you the truth, I still don't

clearly understand it.

(Ex. 20 at 158-59)

As Wilkerson explained, what Passo proposed did not

appear to be a collective bargaining agreement, but a "broker's

agreement." (Ex. 26 at 49) According to Wilkerson, under a typical

:broker's agreement the broker would sell the 1aboY- for $12.49 an

76

hour, but would only pay the workers $8.00 an hour. (Ex. 26 at 50)

When asked whether unions generally entered into such agreements,

Wilkerson responded, "Oh, Lord, no. That would be an absolute

mistake for any union to do that." (Ex. 26 at 50) In addition,

Wilkerson found it unusual for a union official to be negotiating

with an employer without having spoken to any of the employees at

the company as Passo was doing. (Ex. 26 at 50-51)100

Passo spoke to Wilkerson approximately six different

times urging his approval of an agreement with concessions for

United. (Ex. 26 at 70) Passo several times came back to him with
minor changes in the proposed arrangement. (Ex. 26 at 48, 53-54)

For example, in Passo's original proposal there were no employer

health and welfare contributions. (Ex. 26 at 48, 71; Ex. 20 at 76-

78) After Wilkerson refused to agree, Passo then told him, as

Wilkerson recalled, " . . . 'Okay. They'll start paying health and

welfare after six months,' or 'They'll pay the pension after such

a period of time, but it would be a lesser amount. ' None of it was

acceptable." (Ex. 26 at 71)10` When asked to describe the problems

______________

100 Indeed, Wilkerson's understanding was also reflected in

the IBT's Organizing Guide and Section 27 of the Local 631 Bylaws,

both of which Passo ignored. (Exs. 293 and 296)

10l Wilkerson testified,

It was the same thing. He'd come back again

with -- I'm sure after he talked to me that

one time, he'd go back _to whomever, and they

would agree t-o extend -- to stretch something

a little bit more and -- well, like, "We'll do

77

with Passo's agreement with Simon, Wilkerson explained,

The whole thing was illegal, the reduction --

reduced wage structure, the pension thing.

The pension has to be paid on the first hour

worked. Health and welfare. All these things

are required by the other employers. You just

can't do an agreement over here that is going

to be of a less financial burden than what is

already in place.

(Ex. 26 at 54) Wilkerson told Passo that he would only enter in an

agreement with United that was the same as the red book contract.

(Ex. 26 at 44-54)

Scalf recalled that Wilkerson complained to him about

Passo's substandard agreement with United. (Ex. 12 at 101) Scalf

testified:

Jim did call me once about that, I think it

was sometime after that Unity thing [the IBT's

Unity Conference in Las Vegas], maybe it was

even before that, I'm not real sure, and said

that he, wouldn't sign a contract that had

anything less then the wages and working

conditions.

(Ex. 12 at 101) According to Scalf, he told Wilkerson, "You're the

____________________
the health and welfare after the six months."

or "We'll do the pension after" --

And each time I'd say to him. "Dane, you

cannot do that. That is illegal. You cannot

do that."

And he would go back and then come back about

a month later or weeks later or whatever, it

was another version, but eventually it just--

he quit. Just stopped.

(Ex. 26 at 53-54)

78

Trustee, you're the one that's responsible for it. If you don't

think it's up to par, don't sign it." (Ex. 12 at 101) After

Wilkerson objected to Passo's agreement, Scalf did not ask Passo to

show him a copy of the agreement or discuss its terms. (Ex. 12 at

97, 108)

After Wilkerson refused to enter into the substandard

agreement, Passo, cloaked with his special relationship with Hoffa,

falsely claimed to Wilkerson that the contract had the support of

high-ranking International officials. He told Wilkerson that in

addition to Hogan, both Santangelo and Scalf wanted him to enter

into the agreement with Simon's company. (Ex. 26 at 88, 92)102 Both

____________________

102 During his sworn examination, Passo testified as follows:

Q: Did you ever tell anyone that Mr. Santangelo wanted 631

to enter into an agreement with Mr. Simon's company?

A: I don't remember if I did.

Q: Did you ever tell anyone that Mr. Scalf wanted Local 631

to enter into the agreement with Mr. Simon's company?

A: I don't remember if I did. If I did, it was probably to

pump up the members or something, this way it looks like

we are getting new members.

Q: Did Mr. Scalf want an agreement entered into with Mr.

Simon's company?

A: I don't know if he wanted an agreement, he wanted

teamsters.

(Ex. 20 at 187) Passo claimed not -to recall whether he told

Wilkerson that Santangelo approved the agreement with. Simon's

.company. He denied telling Wilkerson that:.Sca)-f- approved the

agreement. (Ex. 20 at 181-83)

79

Santangelo and Scalf denied approving Passo's proposed agreement

with Simon's company. (Ex. 32 at 41-43; Ex. 12 at 98-100)103 In any

event, Wilkerson told Passo that if Scalf wanted the agreement with

Simon's company entered into, Scalf should sign the agreement

himself. (Ex. 26 at 92) Passo was lying about the support from

other union officials to deceive Wilkerson into entering the deal

benefiting Simon that Passo had arranged.

As detailed below, shortly after Passo openly began to

advocate for the substandard arrangement for United, United

employees began to perform Teamster work during trade shows for

GES. (Ex. 26 at 68)104 As of March 2001, the Trusteed Local under

Passo's supervision had been ineffectual in preventing or

redressing GES's breaches of the contract.

__________________

103 Apparently, Passo attempted to cloak these false

representations with trappings of authenticity by ensuring that IBT

International officials would meet and be seen meeting Simon and

Passo at public places. (Ex. 32 at 24; Ex. 12 at 95) Indeed,

through his remarkable silence, he seems to have ensured even the

General President would wind up in a public place with himself and

his fellow co-schemers Simon and Hogan.

104 GES was the trade show contractor in Las Vegas most
aggressively using United employees to perform Teamster work. (Ex.

205 at 15, 23-27; Ex. 203 at 19-27; Ex. 6 at 74, 79, 236-39) It

appears that GES tried to create situations where the Local 631

dispatch office would be exhausted by calling far more people for

the work than necessary. (Ex. 26 at 82-83; Ex. 6 at 76-79) GES

would then send the dispatched employees home after the minimum

four hours pay required pursuant to Article II, Section A of the

red book contract. (Ex. 2 at 198-99, 214-218; Ex. 6 at 73; Ex. 4 at

13) It would then use the United emploxees._do__the work under the

guise of the Local 631 dispatc'^ -f`irw-bei= exhausted. (Ex. 26 at

82-83; Ex. 203 at 21)

80

2. Dinner Meeting with Passo, Simon,

Frates and Whitfield

In approximately late April or early May 2000, Passo told

business agent Whitfield that Simon had a pool of 400 workers he

could provide if the Local could not meet a trade show contractor's

call for workers. (Ex. 6 at 89-91)105 Passo asked Whitfield to dine

with Simon. (Ex. 6 at 89-91 & 93)106 Whitfield requested Assistant

_____________________

105 Whitfield was familiar with Simon's company because it did

janitorial work in the convention industry in Las Vegas. (Ex. 6 at

80-82)

106 Business agent Whitfield testified as follows:

. . . Dane, he knows Rick Simon. He has a

pool of people that he can pull from, but they

speak Spanish, and we'll have to get

interpreters.

Well, that's good. But like I told him, "We

have got interpreters out there . . . .

I said, "We don't need interpreters." I said,

"What we need are people who are going to stay

in our union hall, not just be an extra board,

or what have you," which is what he was going

to call them.

And so then he approached me with, "We need to

get them a contract."

And I was like, "Now wait a minute. Why can't

they just come in the hall, pay $40 and be on

the regular contract we already have? What is

the problem with that?"

Well, this is when he explained to me his

buddy Simon would be in town later on this

month and "We'll talk about it. And we'll

get a new contract."

81

Trustee Frates to accompany her to the dinner at a steakhouse with

Passo and Simon. (Ex. 6 at 93-95; Ex. 82 at 49)

Passo objected to Frates's presence, whom Hoffa had

appointed Assistant Trustee, at this meeting. (Ex. 6 at 95) When

Whitfield told Passo that she asked Frates to attend because she

was not experienced in negotiating contracts, Passo told her, "'I

do more contracts than anybody, and Hoff a knows I'm right.' So

[Passo] says, 'I can do it.' . . ." (Ex. 6 at 95)

As discussed above, Passo did not have experience

negotiating collective bargaining agreements. (Ex. 20 at 18-19)

Nor did he have any experience in the trade show industry. (Ex. 20

at 79) Hoffa denied knowing at this time Passo was involved in

negotiating a contract with Simon. (Ex. 78 at 29) Passo's lies

about Hoffa's endorsement and his own experience were consistent

with Passo's attempt to manipulate others into an agreement for

Simon.

And I said, "We don't need a new contract.

Just make them a party to this one." Like,

"You're making this harder than it is, Dane."

He goes, "No," he says, "There's a couple of

things in here you don't understand." He says

that, you know, "This will make this industry

better."

And I am thinking that doesn't work, but I

figured, okay. Well, you know, I'm new at

this. I'll back up and I'll watch. I mean I

don't mind learning.

(Ex. 6 at 90-91)

82

Passo, Simon, Whitfield and Frates met at a steakhouse in

Las Vegas. (Ex. 6 at 96; Ex. 82 at 49; Ex. 20 at 89-90) During

this meeting, Passo urged Whitfield and Frates to approve an

agreement for Simon's company which would have substantial

concessions from the red book contract. (Ex. 82 at 53-54, 72-73;

Ex. 6 at 44-54) Passo and Simon explained that they knew each

other from Chicago. (Ex. 82 at 53) Passo acknowledged to Whitfield

that his reason for pushing this arrangement was that Simon was his

friend. (Ex. 6 at 124 )

Frates recalled:

there were discussions with regard to Simon

signing a contract for the convention

industry; that he and Mr. Passo had been

discussing that; and that he indicated he

wanted some relief on the contract because he

would be providing help when we couldn't

provide it.

(Ex. 82 at 49-50) Simon and Passo had notes on a piece of paper

which indicated that Simon's employees would be paid $8.00 an hour.

(Ex. 6 at 96-97) This was the same figure Passo quoted to

Wilkerson. (Ex. Ex. 26 at 48)107

In essence, as the business agent noted, Passo's

_______________

107 Frates recalled that Passo and Simon agreed that the

United employees would be paid "at least $1 an hour less than what

everybody else would pay." (Ex. 82 at 53) As detailed below,

Passo's handwritten agreement with United in August 2000 provided

that United would pay its employees at least $2.49 per hour less in

wages alone. (Ex. 84) In addition as detailed below; Passo's

agreement eliminated overtime pay. for work during the hours of

10:00 p.m. and 6:00 a.m.. (Ex. 84)

83

agreement with Simon provided that Simon's employees could "come in

and work around the clock behind us at a different rate of pay."

(Ex. 6 at 97)108 Moreover, as discussed above, pursuant to the red

book contract, once an individual worked 150 hours in the industry,

if they worked between the hours of 10:00 p.m. and 6:00 a.m., they

would be paid one and one half times their base pay. (Ex. 4 at 13)

A later version of the Passo-Simon arrangement, the handwritten

agreement Passo sent to the IBT's Legal Department on August 29,

2000, provided that until the United employees worked, at least,

1,000 hours in the industry, they would not be paid time and one

half for hours worked between 10:00 p.m. and 6:00 a.m., unless they

had worked more than eight hours in a day or more than forty hours

in a week. (Ex. 84)109

________________

108 According to Whitfield, when Passo stated that the

employers would like the proposed agreement, she thought,

"[a]nything that makes the employer that happy is not going to be

good." (Ex. 6 at 97-98)

109 Whitfield also testified that Simon stated that if he had

an employee that he liked, he would be permitted to designate that

person a "developmental" worker. (Ex. 6 at 98-99) Pursuant to

Article I, Section G of the red book contract, employer signatories

were permitted to designate one developmental employee for every

50, 000 hours such employer contributed to the pension or health and

welfare funds for the prior year. (Ex. 4 at 5) Under the red book

agreement, developmental workers could be referred to work before

all individuals on the A list were working. (Ex. 4 at 5) When asked

whether there was any discussion at the meeting about developmental

employees being designated from Simon's company, Frates testified

as follows:

I can't remember. It sounds like it rings a

bell, but I can't remember the specifics. I

think it was, but I don't remember -- I just

84

Simon and Passo also explained that the United employees

would not get a raise until they had worked 300 hours in the

industry. (Ex. 6 at 98) In contrast, as discussed above, pursuant

to Article II, Section A of the red book contract, at that time,

after a Supplemental Worker worked more than 150 hours in the

industry, his hourly pay rate increased from $12.49 per hour to

$13.69 per hour. (Ex. 4 at 11)110

Contrary to the red book agreement under which the Local

631 dispatch office sent employees directly to the trade show

contractors, Simon and Passo provided that the Local 631

dispatcher, when the Local needed additional people, would

surrender this power to Simon's company which would send Simon's

employees to work. (Ex. 6 at 100-01; Ex. 20 at 161-62) Indeed,

Passo's later handwritten memorialization of his concessions to

United contained the following provision:

"D" list workers for this agreement shall be

administered thru a [sic] United Temp Company.

The Company shall recruit, hire, and dispatch

and deliver the "D" list workers to the

required site . . . .

(Ex. 84)

______________________

don't remember, but that does ring a bell.

(Ex. 82 at 67)

110 As discussed below, pursuant to Passo's handwritten notes

provided to the IBT on August 29, 2000, after an emplcyee worked

250 hours in the industry, his pay would_innreasp frnm_ $10.00 11 p„r

hour to $11.00 per hour. (Ex. 84)

85

The trade show contractors would pay Simon's company and

then he would pay his employees. (Ex. 6 at 120-121; Ex. 20 at 87)111

As a consequence, Simon would make his profits on the difference

between the red book contract wage rates and the substandard rates

and benefits conceded to him. 112

Whitfield recalled that Passo's arrangement with Simon

provided that United employees would have to work 150 hours for

health and welfare benefit fund contributions to be made on their

behalf. (Ex. 6 at 101-02) Passo acknowledged that under his

arrangement with Simon, he conceded that United would not make

health and welfare contributions for employees on the first hour

worked as the red book agreement provided. (Ex. 20 at 92-93; Ex.

4)113 Passo did not tell Scalf about his concessions for Simon

________________

111 This was consistent with the proposal Michael Hogan and

Simon made to Murphy and Breymann in 1999 which was rejected. (Ex.

25 at 35-37; Ex. 5 at 29-32, 39, 41)

112 Frates described Simon's company as a labor broker. (Ex.

82 at 77) Frates testified that on occasions the Teamsters would

enter into a collective bargaining agreement with a labor broker

"as long as whoever they're a broker for, you have a contract

with." (Ex. 82 at 77-78) Frates further testified that the labor

broker would enter into an agreement identical to the agreement

with the company to whom they provided services. (Ex. 82 at 78)

Wilkerson and Santangelo also described Simon's company as a labor

broker. (Ex. 26 at 49; Ex. 32 at 26)

113 In his testimony, Passo alleged that under his

arrangement, Simon would make benefit fund contributions after his

employees had worked fifty hours. (Ex. 20 at 92-93) However, in

contrast to his testimony, as detailed below, Passo's handwritten

agreement with United sent to the IBT on August .29, 2000, provided

that Simon would not make benefit fund contributions until his

employees had worked 250 hours in the industry. (Ex. 84)

86

concerning the benefit fund contributions. (Ex. 12 at 100) Under

the red book agreement, an employer must make health and welfare

and pension benefit fund contributions from the first hour worked.

(Ex. 4 at 24, 27; Ex. 2 at 187)

Under the Passo-Simon arrangement, the United employees

would not immediately become IBT members. Rather, as Whitfield

recalled,

Eventually, not right off the bat. But what

he had assured me was by the time that they

had worked enough hours in the industry to

become a C or A or whatever, then he would

give them the option, and he would take it out

of their check, Mr. Simon.

(Ex. 6 at 99-100)11

Frates and Whitfield refused to agree to the arrangement

Simon and Passo proposed. (Ex. 6 at 97-104 & 114-116; Ex. 82 at

54)115 Frates explained that he, Whitfield and Wilkerson "did not

want to have anything to do with" Passo's and Simon's concession-

laden arrangement. (Ex. 82 at 72) Frates stated,

My position was that if Mr. Simon wanted to

__________________

114 Whitfield testified as follows:

Q: So the employer would give them the option to join the

union?

A: Right, which that didn't make sense to me, but that's

what he said.

(Ex. 6 at 100)

115 Whitfield testified "And of course I said no to

everything. There wasn't anything in there I liked." (Ex. 6 at 98)

87

sign a contract, he could sign the same

contract that GES and all the other employers

signed, dollar for dollar, penny for penny. I

reported this back to Mr. Wilkerson, and Mr.

Wilkerson was in total agreement.

(Ex. 82 at 54) Frates strongly opposed Passo's and Simon's

proposal because it would trigger the most favored nations clause

in the red book contract to the disadvantage of Local 631 's members

already employed in the convention industry. (Ex. 82 at 54)111

Frates also opposed the proposed agreement with United because

contract negotiations with the trade show contractors were coming

up in 2001, " . . . and in my opinion, it would have been asinine

to go in and negotiate something less right before negotiations."

(Ex. 82 at 55)

In response to the Passo-Simon proposal, Whitfield told

Simon and Passo:

. . . the way I look at it was, and this is

what I tried to explain to Mr. Simon. I said,

"Look, you and Dane may think this will work,"

I said, "but what you are going to end up with

is the general contractors, GES and Freeman,

are going to tell you, "Well, hey if I can get

these people for eight bucks, then I don't

need the A list, the B list, the C list, or C

pluses, you know. We can just pay these

guys."

And I said, then, actually you took that away

from the Teamsters and now what, he's a

dispatching company . . ..

______________

115 Frates testified that this clause meant that ". . . if we

gave somebody relief, we would be obligated to give the other

companies the same relief . . . ." (Ex. 82 at 54)

88
And I tried to make them understand that

besides that, not only have you done that, but

the GES contract, which everybody has signed

the "Me Too", which is the one we work under.

you might as well just throw this out the

window because what good is it? You know, you

just undercut everybody's entire livelihood

out there that works in that industry.

(Ex. 6 at 108) Whitfield also told Simon and Passo that Local 631

had to control the dispatching of workers and it was not acceptable

for Simon to send the workers directly to the trade show

contractors. (Ex. 6 at 100, 106-107)117

At his sworn examination, Passo claimed he could not

recall Frates' or Whitfield's opinion regarding the agreement. (Ex.

20 at 92) As discussed below, that claimed lack of memory was not

credible.

After Frates and Whitfield told Simon and Passo that they

would not sign the contract, Simon and Passo informed the Local's

representatives that they would continue to discuss it. (Ex. 82 at

56; Ex. 6 at 110) According to Passo, after the dinner meeting, he

conferred with Simon several more times regarding an agreement.

(Ex. 20 at 88, 98-100, 102-103)118

______________

117 Benboe, the other business agent for the trade show

industry, testified that Whitfield told him about the meeting with
Passo and Simon and stated, " . . . they could not arrive at an

agreement because . . . what had been tentatively agreed to was

substandard, and we'd just be opening a Pandora's box." (Ex. 149 at

49-50) _ _

.. 118 On May 2.6, 2000 and June 13,2000, telephone calls were

made from Local 631. to the-United office in Chicago. (Ex. n6)

Passo was in Las Vegas on those dates. (Exs. 122-25) The call on

89

Passo also frequently discussed with Hogan the

arrangement with United. (Ex. 20 at 79) Passo, although not

reporting to Scalf, his superior, about the details of his working

with Simon, believed he needed to keep Hogan informed. As Passo

explained he believed he needed, "[t]o let him know about the

contract, how it was going, to get some advice from him. I wasn't,

you know -- never in the convention industry." (Ex. 20 at 79)119

Hogan acknowledged that Passo kept him updated on his

conversations with Simon. (Ex. 15 at 93) Although Hogan discussed

the United arrangement with Passo, Hogan never spoke to the Local

631 Trustee about the arrangement with United. (Ex. 15 at 93)

During his sworn examination, Passo alleged that Simon

eventually agreed to pay his employees only $.75 to $1.00 less per

hour than the red book contract. (Ex. 20 at 91-92) Scalf recalled

that Passo told him that the agreement with United ". . . was

either 75 cents or a dollar less than the contract that was in

place there." (Ex. 12 at 112)120 However, as discussed below, the

__________________

June 13, 2000 lasted 22 minutes. (Ex. 206) The previous day, on

June 12, 2000, there had been a call from Passo's cellular

telephone to Hogan's cellular telephone at 8:42 a.m. which lasted

12 minutes and two calls, at 10:38 a.m. and 7:52 p.m, from Hogan's

cellular telephone to Passo's cellular telephone. (Exs. 47, 71, 76)

119 When asked what he discussed with Hogan about the

contract, Passo responded, "[t]he language, what I need, probably

some information with him, what does he think." (Ex. 20 at 81)

120 Scalf testified as follows - ---

Q: And what was your view of that?

90

handwritten agreement with United from late August 2000 that Passo

belatedly produced to the IRB belied his claims of a $1.00 per hour

difference. (Ex. 84)121

From the steakhouse meeting on, approximately once a week

for a few months, Passo urged business agent Whitfield to endorse

his arrangement with Simon's company. (Ex. 6 at 125) Passo also

introduced Whitfield to Hogan during one of Hogan's trips to Las

Vegas. (Ex. 6 at 232) Hogan instructed Whitfield that she "should

listen to Dane Passo." (Ex. 6 at 234)

Whitfield asked Passo why Simon did not sign a "me too"
A: My question would have been would it affect anybody

there. And the answer was no, it wouldn't because they

would only be used after everybody else was called, but

they would be Teamsters.

Q: And was there any discussion that you had with Mr. Passo

about the most favored nations clause in the master

contract?

A: I never even knew there was one there.

(Ex. 12 at 112)

_______________

121 Under Passo's agreement, the United employees would be

paid $10.00 per hour until they worked 250 hours in the industry at

which time they would be paid $11.00 per hour. (Ex. 84) In

contrast, the red book agreement provided that effective June 1,

2000, employees must be paid $12.49 per hour until they worked 150

hours in the industry at which time they would be paid $13.69 per

hour. (Ex. 4 at 11) Accordingly, under Passo's agreement, United

would pay its employees $2.49 less then the red book contract

required for the first 150 hours they worked, $3.69 per hour less

for hours 151 through 250 and $2.69 per hour less after 250 hours.

(Exs. 4, 84, .207) As detailed below, Passo also conceded

significant other economic concessions concerning overtime pay and

benefit fund contributions.

91

agreement to the red book contract. (Ex. 6 at 124) Passo responded

that Simon "doesn't like that contract." (Ex. 6 at 124) Through

his actions, it was apparent that Passo viewed himself as Simon's

agent to Local 631, rather than as a representative of employees.

Throughout the process, Passo, the Local's monitor from the IBT,

showed no concern for United's employees, never even considering

organizing them rather than accommodating the employer. 122 Indeed,

at the time Passo was pressuring Local 631 to enter into the

______________

122 Whitfield testified as follows:

Q: Had Mr. Passo spoken with any of the employees of Mr.

Simon's company?

A: He had not spoken with them, but what he had done was

speak to GES and Freeman.

Q: In other words, Mr. Passo had spoken to Mr. Simon, he had

spoken to GES and to Freeman?

A: Exactly.

Q: But he had not spoken to the actual employees that would

be covered under this agreement?

A: He had not.

Q: Did you ask him why he hadn't spoken to the actual

workers?

A: I asked him, I said, "Well, you know, do these people

have any say in it?"

Rick goes, "Oh, yeah." He says, "They're going to make

money." __

Well, hello, What kind of money are they going to make?

(Ex. 6 at 103-04)

92

substandard agreement with United, there were two Local 631

organizers and an IBT organizer assigned to Local 631. (Ex. 79 at

5-6; Ex. 80 at 9-11; Ex. 81 at 6-7, 21) None made any attempt to

organize United; Passo never directed them to do so. (Ex. 79 at 19;

Ex. 80 at 23; Ex. 81 at 29)

After the steakhouse meeting with Passo, Simon and

Whitfield discussed above, Frates had a telephone conversation with

Simon. (Ex. 82 at 56-57; 68-69)123 Simon informed Frates,

That he [Simon] and Passo had reached

some type of understanding, and that he was

. . he would be ready to start up operations

August 1st, and that he wanted the shows and a

list of whatever was coming, and I basically

told him, "We're not into that yet."

(Ex. 82 at 68) 124 Frates refused to provide Simon such a list.

(Ex. 82 at 68-69)

K. Passo's Actions Concerning Dispatch Procedures at Local 631

As discussed above, if Local 631 were unable to meet the

contractor's call, the trade show contractor was able to hire from

any source. In an apparent effort to provide opportunities for

contractors to use United, Passo took steps to hinder the Local's

ability to meet the call for workers. For example, Passo opposed

contacting non-IBT Locals for unionized workers after the Local 631

_______________

123 This conversation was before August 30, 2000. (Ex. 82 at

56-57, 68-69)

124 As discussed below,Passo's-substandard handwritten

agreement with United referred. to employees hired after August 1,

2000. (Ex. 84)

93

dispatch office was exhausted. (Ex. 20 at 142, 145-46; Ex. 26 at

77-78; Ex. 82 at 44) In addition, Passo objected to business agent

Whitfield directly dispatching workers in an effort to meet the

call when the dispatch office was closed. (Ex. 20 at 150-56)125

As was obvious to the Assistant Trustee, Passo preferred

the trade show contractors to secure workers from Simon's non-union

company rather than permit Local 631 to meet the call by contacting

other unions such as the Stagehands and the Carpenters who would be

paid at the contract rate. (Ex. 82 at 72-73, 88) This was despite

Passo knowing the United employees were paid substantially less at

approximately $6.00 per hour. (Ex. 20 at 86) Despite Passo's

instructions, Trustee Wilkerson told the dispatchers to continue to

contact the Carpenters Local after the Local 631 dispatch office

was exhausted and the other Las Vegas Teamster Locals had been

called. (Ex. 26 at 77)126 In this way, Local 631 controlled who

______________

125 According to trade show business agent Benboe, in

approximately January 2001, after the IRB's investigation began,

the dispatch office began to be open on weekends when large shows

were in town in order to be able to meet the trade show

contractor's calls for workers. (Ex. 2 at 191-93) Dodds, the

Local's dispatcher, claimed she had stayed late and worked on

weekends since she began to work as the dispatcher in January 1999.

(Ex. 7 at 71-73)

126 There was inconsistent testimony regarding whether the

members of the Carpenters union had to pay the $40 dispatch fee to
Local 631. Dispatcher Dodds testified that if a person provided

proof that they were a dues paying member of the Carpenters Union,

that person did not have to pay the dispatch fee. (Ex. 7 at 76-77)

In contrast, according to Wilkerson and assistant dispatcher

Almaraz, when members of non-IBT Locals were dispatched from the

Local 631 dispatch office, they were required to pay a $40 dispatch

94

performed Teamster work in the Convention industry and could ensure

contract rates were paid. (Ex. 26 at 79-80)127 Moreover, Wilkerson

explained that it was beneficial to the labor movement for Local

631 to be able to fill the call with union members. (Ex. 26 at 80)

While Wilkerson was Trustee, Local 631 dispatcher Dodds

reported to him that Passo had ordered her not to call the

Carpenters Local when the dispatch office was exhausted. (Ex. 26 at

78) Passo admitted he opposed Local 631 contacting other unions

for workers after the Local 631 dispatch office exhausted its list

and after the other IBT Locals in Las Vegas were called for

workers. (Ex. 20 at 142, 145-46)128 Passo acknowledged that he may

have told Dodds not to call the Carpenters union. (Ex. 20 at 146)129

____________________

fee. (Ex. 26 at 79-80; Ex. 8 at 18)

127 When questioned by Local 631's attorney during her January

2001 sworn examination, dispatcher Dodds claimed that the trade

show contractors did not have to accept members from any other
union who were dispatched from Local 631. (Ex. 9 at 51-52) This

appears to be contrary to the red book agreement which required the

trade show contractors to obtain workers without regard to union

membership from the Local 631 dispatch office and the Local's

dispatch rules which provided "[t]here shall be no discrimination

for or against any applicant for registration or registrant because

of his membership or non-membership in the Local Union, sister

locals of the International or any other labor organization." (Ex.

4 at 3-4, Ex. 77) Moreover, Trustee Jacobson and the dispatchers

were not aware of any instance where a trade show contractor

rejected workers dispatched from Local 631 because they were

members of another union. (Ex. 92 at 56; Ex. 8 at-18; Ex. 9 at-56)

128 As noted above, the other IBT Locals were usually unable

to provide workers. (Ex. 5 at 14; Ex. 7 at 94)

129 Dodds claimed that Wilkerson. not Passo, told her not to

call the Carpenters Union when the Local 631 dispatch office was

95

Wilkerson instructed Dodds to continue to call the Carpenters Union

when the dispatch office was exhausted. (Ex. 26 at 78) According

to Wilkerson, if the dispatch office did not call the Carpenters

after the Local 631 dispatch office was exhausted, it would be more

likely that United employees would be used. (Ex. 26 at 79) Passo

never explained how it would be beneficial to allow the trade show

contractors to use United's non-union low paid workers rather than

other union members who were dispatched from Local 631 at, at

least, red book contract rates.

In addition, in setting another hurdle to the Local

meeting the call, Passo strongly opposed business agent Whitfield

referring Local 631 members to work under any circumstances, even

when the dispatch office was closed. (Ex. 20 at 154-55; Ex. 82 at

44-45)130 Assistant Trustee Frates, who understood it was necessary

when the dispatch office was closed for the business agent to

dispatch workers, spoke to Passo about this procedure. (Ex. 82 at

_______________

exhausted. (Ex. 9 at 15)

130 As discussed above, in some circumstances on large shows,

in order for the Local 631 dispatch office to meet the call,

members had to be "rolled over" from one show to another rapidly.

(Ex. 6 at 236-37; Ex. 2 at 192-93;Ex. 82 at- 44) This "roll over"

period sometimes occurred when the dispatch office was closed. (Ex.

82 at 44; Ex. 25 at 31-32; Ex. 6 at 236-37) In some of those

instances, business agent Whitfield directly dispatched Local 631

members to work rather than allowing the contractors to hire from

any source because the local could not meet-the call for workers.

(Ex. 6 at 72-73; Ex. 82 at 44)

96

44)131 Passo was aware that the roll over sometimes happened in the
middle of the night. Yet, he still opposed the business agents

dispatching anyone to work. (Ex. 82 at 45-46) Only Simon and GES,

who could use United's cheaper labor, benefitted from Passo's

position.

L. Passo and Hogan Ensured Simon was Seen Meeting with High-

Ranking Teamster Officials

Hogan, although having no role in Local 631, and Passo

repeatedly introduced Simon to high-ranking IBT officials. These

meetings were in public places and appeared to have been designed

to allow Passo and Simon to falsely claim that high-ranking

officials supported Passo's proposed arrangement with Simon.

1. Hogan Introduced Simon to Santangelo

In May 2000, Passo, Hogan, Simon and IBT Vice President

and Joint Council 42 President Santangelo met for dinner at the Rio

___________

131 Frates described his conversation with Passo as follows:

it would probably have to do with

rolling over people. That would be when they

finish one shift, if somebody need somebody

else, they'd roll over to the next, and that's

when normally the agent would be down there in

the middle of the night to do that to keep

people working and get them as many hours as

we could.

And there was discussion that that ought to be

controlled by dispatch only, and in my

opinion, dispatch only couldn't do that

because they didn't work 24 hours a day like

the agents did.

(Ex. 82 at 44)

97

Hotel in Las Vegas. (Ex. 32 at 24-25)132 Hogan introduced

Santangelo to Simon at this dinner. (Ex. 32 at 25) Santangelo

testified as follows:

Q: And what was being discussed?

A: He had -- there was a guy who wanted to come

to the Convention Center who had employees who

were like a manpower thing sort of .133

Q: Is this Mr. Simon?

A: Yes.

(Ex. 32 at 24)

2. Passo Introduced Simon to Scalf at the Indigo

Lounge in Las Vegas

Passo also introduced Simon to Hoffa's Executive

Assistant Scalf at the Indigo Lounge at Bally's Hotel. (Ex. 20 at

172-73; Ex. 12 at 95-96) Santangelo was also present. (Ex. 32 at

26-27) It appears that this meeting took place between July 9 and

________________

132 Santangelo met Simon twice in Las Vegas after Local 631

was placed in Trusteeship. (Ex. 32 at 24, 30) Santangelo testified

that the first meeting was at the Rio Hotel with Passo and Hogan

and the second meeting was in a lounge at Bally's Hotel where Passo

and Scalf were also present. (Ex. 32 at 24-30) Both meetings were

before the IBT's Unity Conference held between September 15 and

September 24, 2000. (Ex. 32 at 24-30) After the Trusteeship was

imposed and prior to the Unity Conference, Santangelo, Passo and

Hogan were all in Las Vegas on the following dates: May 4 through

7, 2000 and May 19 and 20, 2000. (Exs. 122-23, 208, 267, 269-70)

The IBT's Women's Conference was in Las Vegas on May 19 and 20,

2000. (Ex. 208)

133 Manpower is a temporary agency. This was similar to

Michael Hogan 's son's description of Simon's operation in Chicago

which used the labor service ReadyMen. (Ex. 173 at 23)

98

July 12, 2000.134

Passo was to meet Simon at the Indigo Lounge to discuss

their proposed arrangement between Local 631 and United. (Ex. 20 at

172-73)135 Passo requested Scalf to attend the meeting which

invitation Scalf accepted. (Ex. 20 at 173)136 Scalf was introduced

to Simon in the lounge. (Ex. 12 at 95-99) During this meeting,

Passo and Simon discussed the terms of the arrangement for United.

(Ex. 20 at 174) Scalf claimed not to recall any conversation

regarding the agreement with United other than he might have told

Simon to agree to a "good contract." (Ex. 12 at 95-99)136 At least

four other union officials were in the Indigo Lounge at this

time. 137 Scalf was either involved in the Passo-Simon discussions

_________________

134 Those were the dates, prior to the Unity Conference in

September 2000, that Passo, Scalf and Santangelo were in Las Vegas

after Local 631 was placed in Trusteeship. (Exs. 126-27; 209-10)

135 On July 7, 2000, there was a call from Local 631 to

Simon's cellular telephone that lasted approximately three minutes.

(Exs. 171, 211) Passo was in Las Vegas on July 7, 2000. (Exs. 126-

27)

136 When asked what he told Scalf, Passo testified as follows:

I said I'm going to look at this contract, I'm

going to look at this -- I said you can come

up with me and meet Rick Simon.

(Ex. 20 at 172-73)

137 Santangelo testified that he did not know what Passo and

Simon were discussing. (Ex. 32 at 26-27)

138 These individuals included IBT representatives Ron Roche,

Robert Turner and Veronica Stephenson and Rick Middleton, President

of Local 848 in E1 Monte, California. (Ex. 12 at 47, 95)

99

or his presence was designed to create the appearance that Scalf

was entwined in the Passo-Simon relationship.139

3 Hogan Orchestrated a Meeting Among Passo,

Simon and General President Hoffa in Chicago

While Hoffa was in Chicago for AFL-CIO meetings in late

July or early August 2000, Hogan arranged for himself, Hoffa, Passo

and Simon to have lunch at Harry Cary's restaurant. (Ex. 20 at 165-

66; Ex. 15 at 66-71; Ex. 78 at 25-29)140 According to Passo, Hogan

picked up Hoffa and Passo at the Drake Hotel where Hoffa was

staying. (Ex. 20 at 165-67)141 Hoffa testified that Hogan had not

told him who they were going to meet. (Ex. 78 at 27)

Hogan testified that he "assumed" that the agreement

between Simon's company and Local 631 was discussed at this lunch
at Harry Cary's. (Ex. 15 at 69) Passo incredibly claimed that the

agreement between Simon's company and Local 631 was not discussed

at this lunch with the General President. (Ex. 20 at 168) Hoffa

alone acknowledged that the agreement was discussed. (Ex. 78 at 28)

Suspiciously, Passo never disclosed to Hoffa that he was involved

________________________

139 Scalf denied being involved. (Ex. 12 at 95-99)

140 According to Hogan, Simon is a part-owner of this

restaurant. (Ex. 15 at 67) No charge for this lunch appeared on

Hoffa's, Passo's or Hogan's expenses. (Exs. 126-29, 213, 274-78)

141 Hoffa stayed at the Drake Hotel in Chicago from July 24

through July 26, 2000 for an AFL-CIO Building Trades Convention and

one night on August 1, 2000 for AFL-CIO General Presidents'

meetings. (.Ex._213) On July 31,2000 at 5:52 a.m. a call was made

from Passo's cellular telephone to Simon' s cellular telephone. (Ex

49)

100

in negotiating an agreement between Local 631 and Simon's company

either before or after this meeting. (Ex. 78 at 29) 142 This non-

disclosure is even more suspicious since Passo was entrusted by

Hoffa with enormous power over Local 631's affairs.

Shortly after this lunch meeting with Simon and Hoffa,

Passo returned to Las Vegas. (Exs. 128-29) On August 3, 2000,

there were two calls from Passo's cellular telephone to Hogan's

cellular telephone. (Exs. 49, 76) These calls lasted a total of 38

minutes. (Exs. 49, 76) In addition, there were two other calls

from Hogan's cellular telephone to Passo's cellular telephone on

August 3, 2000. (Exs. 72, 76)

M. Hogan's Telephone Calls to Passo, Simon and GES's Parent

Company on August 15, 2000

Approximately two weeks after the Hoffa lunch with Simon

in Chicago, on August 15, 2000, Hogan made a series of telephone

calls to Simon, Passo and GES, the contractor wanting to use

___________________

142 Hoffa testified as follows:

Q: And did Mr. Passo tell you, gee, I've been working with

Mr. Simon to get a contract?

A: He did not say that.

Q: He didn't tell you that after the lunch?

A: No.

(Ex. 78 at 29) Passo claimed that after this lunch meeting he

"could have" told Hoffa that he was trying to enter into an

agreement with Simon's company. (Ex. 20 at 189)

101

Simon's company in Las Vegas, concerning the proposed arrangement

between Local 631 and United. (Ex. 73) Both Hogan and Passo were

in Las Vegas on August 15, 2000. (Exs. 128-29, 275-77)

At 9:00 a.m. on August 15, 2000, Hogan called Passo. (Ex.

73) Hogan then called Simon at 9:08 a.m. and spoke for five

minutes. (Ex. 73) The next call from Hogan's cellular telephone

was at 9:25 a.m to the offices of GES's parent company, VIAD, in

Phoenix, Arizona. (Ex. 73)143 Hogan then called Passo and spoke for

8 minutes. (Ex. 73) Hogan acknowledged that he probably spoke to

Passo and Simon about the agreement with United during these calls

on August 15, 2000. (Ex. 15 at 107-111) In addition, Hogan

admitted that he spoke to Passo approximately a dozen times about

the proposed agreement with United. (Ex. 15 at 102-103)

N. August 30, 2000 Telephone Conversation between Frates and

Simon

On August 30, 2000, a day after Passo submitted a

memorandum containing significant concessions to Simon to the IBT

Legal Department, Frates had a telephone conversation with Simon.

(Ex. 82 at 56) 144 On August 30, 2000 at 9:30 a.m. Frates made a

_____________

143 Hogan claimed that the call to GES's parent company was
unrelated to his conversations with Passo and Simon. (Ex. 15 at

108, 110) According to Hogan's cellular telephone bill, this call

lasted one minute. (Ex. 73)

144 After an IRB request, Frates provided the business card

Simon gave him during the dinner meeting discussed above. This

card contained Simon's cellular telephone number on the reverse.

(Ex. 82 at 64-65; Ex. 214) Frates also provided an excerpt from

his cellular telephone bill which showed a call to Simon's cellular

102

call to Simon's cellular telephone which lasted more than fourteen

minutes. (Ex. 214) Frates described this call to Simon as follows:

. . . What had happened is Roberta had got a

call -- Roberta Whitfield got a call from Mr.

Simon. Roberta called me, indicated that she

did not want to have a discussion with Mr.

Simon, and I said I'm more than willing. I

returned Mr. Simon's phone call. We went back

and forth. He advised me that, you know, it's

a good deal; that, you know, certain people

like Mr. Passo endorsed the concept; and that

he thought it was a good deal.

I suggested to him that we're not interested.

If we couldn't get the full agreement, there

was nothing to talk about, and that if he was

going to drop names of people that supposedly

endorse the concept, then I basically told him

to go and get them to sign it, get them to

tell us to sign it, and that we're not going

to do it, and that we basically had nothing to

talk about, end of conversation.

(Ex. 82 at 56-57) Simon falsely told Frates that in addition to

Passo, Santangelo and Scalf also approved the agreement with

United. (Ex. 82 at 57, 63)145 Santangelo and Scalf both denied

approving the agreement with Simon's company. (Ex. 32 at 41-43; Ex.

12 at 98 )

Frates also testified that during this conversation he

told Simon about the most favored nations clause in the red book

____________________________

telephone on August 30, 2000. (Ex. 214) The excerpt from Frates's

cellular telephone bill also showed calls to Local 631 on the same

date both before and after his call to Simon's cellular phone. (Ex.

214)

145 This was consistent with what Passo told Wilkerson. (Ex.

26 at 88)

103
contract. (Ex. 82 at 70) Frates testified that Simon, " . . .

indicated he talked to the GES and it was not a problem, which I

strongly disagreed with. And, if I remember correctly, he

indicated GES would sign a waiver on the favored nations clause."

(Ex. 82 at 70)146 According to Frates, during his August 30, 2000

conversation with Simon, "I basically told him to go pound salt."

(Ex. 82 at 57) As detailed below, nine days later, Frates was

terminated as Assistant Trustee based upon Passo's recommendation.

After Frates' telephone conversation with Simon on August

30, 2000, there was a call from Passo's cellular telephone to

Hogan's cellular telephone. (Exs. 49, 73) In addition, on August

30, 2000, between 8:10 p.m and 11:57 p.m., there were eight calls

from Passo's cellular telephone to Local 631. (Ex. 49) Passo was

in Chicago on August 30, 2000. (Exs. 128-29)

O. Passo's Handwritten Substandard Agreement with United

On February 2, 2001, Passo was asked to provide notes of

his agreement with Simon. (Ex. 20 at 78, 105-106) During his

February 9, 2001 sworn examination, Passo testified that he had

searched for all notes concerning his agreement with Simon and he

______________

146 Simon also told Frates that Freeman, the other major trade

show contractor in Las Vegas, was "not receptive." (Ex. 82 at 71)

This was consistent with the objections to the United agreement

that Freeman representatives made to business agent Whitfield and

during a meeting with Hogan and Passo in Las Vegas. (Ex. 6 at 196-

97; Ex. 20 at 198-205)

104

did not have any notes. (Ex. 21 at 267)"- Thus, he could not be

questioned concerning any such documentation. The International

had been requested by letter of February 9, 2001 to provide all

documents, including draft agreements and draft proposals

concerning United. (Ex. 88) The IBT did not provide any records

responsive to this request.

By letter dated April 11, 2001, Passo's counsel provided

a letter dated August 29, 2000 from Passo to Nicole Pollard

("Pollard"), an attorney in the IBT's Legal Department, enclosing

six pages of handwritten notes of an agreement with United. (Ex.

________________

147 Passo testified as follows:

Q: Last week at your sworn examination, you testified that

you may have some notes that you kept in connection with

the conversations that you described with Mr. Simon.

Have you had a chance to look for those?

A: Yes, I did.

Q: Were you able to find any notes?

A: No, I couldn't find them.

Q: Have you looked everywhere you can look to find them?

A: Yes.

Q: And you don't have any?

A: No.

(Ex. 21 at 267)

105

84)149 Every official at the Local, the Trustee, Assistant Trustee,

the trade show and convention industry business agent and the

Local's attorney had rejected Passo's arrangement with United. Yet

Passo remarkably presented the same concession-laden package for

Simon to the IBT Legal Department as if an agreement between the

Local and the employer had been reached."' Moreover, Passo did not

disclose to Pollard that Local 631 officials and the Local's

attorney had rejected his arrangement with United. (Ex. 297 at 36-

39) Passo provided Pollard an agreement containing concessions

which Passo, with Hogan's encouragement, had solely agreed to.

Passo's handwritten memorialization of his arrangement

with United provided that all workers hired after August 1, 2000

would become "D" list workers, a new class of employees. (Ex. 84)150

The arrangement now provided:

__________________

148 Passo's August 29, 2000 letter to Pollard stated the

following:
[t)he language on the enclosed paperwork is

the amended language to the contract.

Everything else will remain the same as in the

GES Exposition contract. Look at the "Most

Favored Nations" clause in the contract on

page 32.

(Ex. 84)

149 Indeed, as noted, Simon would tell Frates the next day,

August 30, that he and Passo had agreed to a contract. (Ex. 82 at

57)

150 As noted above, the red book contract had A list workers

and Supplemental Workers, who were sometimes referred to as C Plus

and C workers. (Ex. 4)

106

"D" list workers shall perform all of the

duties of any 631 member except they are not

permitted to operate forklifts, drive any

vehicle over lOK lbs at any time, drive any

vech under lOK lbs without the written

authorization of the Employer or union be the

lead man on any I + D work.

(Ex. 84) The handwritten agreement provided that,

"D" list workers shall be put to work only

when all A + C list is exhausted. Workers who

start a shift shall be permitted to finish

that shift.

(Ex. 84) Passo's and Simon's arrangement also provided that,

"[t]he 'D' list workers shall supersede the placement of

Supplemental Workers." (Ex. 84)

Passo's handwritten memorialization also provided the

following:

"D" list workers for this agreement shall be

administered thru a United Temp Company. 151

The company shall recruit, hire, and dispatch

and deliver the "D" list workers to the

required site. In addition the Company shall

provide a two hour training period to all new

hires which shall consist of basic instruction

on crate moving, decorating, safety rules,

Teamster handbook.
(Ex. 84) In addition, Passo provided that the protection for the

Local in the subcontracting provision in the red book agreement be

eliminated. (Ex. 84)152

___________________-

151 The words "third party staffing" were included between the

words "a" and "company." (Ex. 84) "Third party staffing" was

crossed out and replaced with "United Temp." (Ex. 84)

152. Passo's handwritten agreement provided that Section B on

page 12 of the red book agreement "does not apply." (Ex. 84)

107

According to this August 29, 2000 version of the Passo-

Simon arrangement, "D1" workers were those that had less than 250

hours in the industry. (Ex. 84) The "D2" workers were those that

worked between 250 and 1,000 hours in the industry. (Ex. 84)

Simon's Dl workers would be paid $10.00 per hour "for the first 250

hrs in the industry. During this training/trial period there shall

be no payments to H + W or Pension Funds." (Ex. 84) In contrast to

Passo's concessions to Simon, under the red book agreement

Supplemental Workers who worked less than 150 hours in the industry

were paid $12.49 per hour with benefit fund contributions of $7.90

per hour paid from the first hour worked. (Ex. 4 at 11, 26, 27)

Under Local 631's contract, effective June 1, 2000, Supplemental

Workers who worked more than 150 hours were paid $13.69 per hour
with benefit fund contributions of $7.90 per hour. (Ex. 4 at 11,

26-27)

Given that Simon, and not the Local 631 dispatch office,

would control which of his employees worked, that the handwritten

agreement contained no provisions for their selection, and the

nature of "United Temps"' workforce, Simon could ensure that none

of his employees worked more than 250 hours in the industry,

thereby avoiding making any benefit fund contributions for his

employees. In addition, even if Simon's company eventually did

Article II, Section B(5) of the red book agreement is the

subcontracting provision described above. (Ex. 4 at 12)

108

make benefit fund contributions on behalf of the employees that he

allowed to work more than 250 hours, by not paying benefit

contributions for those 250 hours, Simon would have saved, at a

minimum, more than $1,900 per. employee. (Ex. 207)

In addition, pursuant to the Passo-Simon August

arrangement, the "D2" workers would be paid $11.00 per hour with

benefit fund contributions. (Ex. 84) This was an hourly wage $2.69

less than the red book agreement required Supplemental Workers with

more than 150 hours in the industry to be paid. (Ex. 4) Moreover,

as discussed above, since Simon controlled the dispatch procedures,

he could ensure that no employee worked more than 250 hours thereby

preventing them from becoming "D2" list workers and getting the
wage increase.

Furthermore, under the red book agreement, Local 631 had

dispatch records of all individuals referred to work and the Local

631 Security Fund had records of benefit fund contributions for

every hour worked. (Ex. 4 at 3, 26-27; Ex. 92 at 47) In contrast,

under Passo's agreement, Simon would control the dispatch and

benefit fund contributions would not be immediately required. (Ex.

84) Accordingly, Passo's agreement undercut the Local's ability to

ensure that the United employees received the pay increase and

_______________________-

153 Effective June 1, 2000, the hourly benefit fund

contributions under the red book agreement were $3.75 per hour for

health and welfare and $4.15 for pension benefits. This totalled

$7.90 per hour. (Ex. 4 at 26-27) For 250 hours, this would total

$1,975 per employee.

109

United made the benefit fund contributions the agreement required.

Under the August arrangement, for all the "D1" and "D2"

workers, which included workers with up to 1,000 hours in the

industry, Passo eliminated time and one half pay for work performed

between the hours of 10:00 p. m. and 6:00 a. m.. (Ex. 84)159 This was

particularly significant since the United employees usually

performed Teamster bargaining unit work at night. (Ex. 6 at 236-37;

Ex. 90 at 36) Under the red book agreement, for work performed

during the hours of 10:00 p.m. and 6:00 a.m., a Supplemental Worker

__________________

154 Pursuant to Article III, Section E of the red book

agreement:

The work week will be Monday through Sunday.

All employees shall be paid one and one half

times the base rate for all work performed

between the hours of 10:00 pm. and 6:00 a.m.

except employees covered under Section B

above . . . .

(Ex. 4 at 13) Article III, Section B of the red book agreement

provided the following:

"Supplemental Workers" having less than 150

hours worked in the industry will only receive

time and one half after eight (8) hours worked

in a day or forty (40) hours worked in a week

including the hours worked between 10:00 p.m.

and 6:00 a.m.. . . .

(Ex. 4 at 13)
Passo's substandard agreement contained the following

provision:

Section B shall govern for all O/T for class

D-1 and D-2.

(Ex. 84)

110

with less than 150 hours in the industry would be paid $12.49 per

hour unless he had worked more than eight hours in a day or 40

hours in a week at which point he would be paid time and one half.

(Ex. 4 at 11, 13) Under the red book agreement, a Supplemental

Worker with more than 150 hours would be paid time and one half, or

$20.53 per hour, for work performed between 10:00 p.m. and 6:00

a.m.. (Ex. 4 at 11, 13) Accordingly, Passo's concession allowed

United to pay its employees who worked more than 150 hours in the

industry at least $9.53 per hour less than the red book agreement

provided for work performed between the hours of 10:00 p.m. and

6:00 a.m... (Ex. 207)155

In his arrangement with United, Passo also callously

eliminated protections for employees injured on the job. (Ex. 84)

Article XI, Section A(4) of the red book agreement provides,

[t]he Employer will continue paying monthly

contributions to the health and welfare fund

for one (1) year for regular seniority "A"

List employees and for six (6) months for

"Supplemental Worker" employees not working

due to an on-the-job injury. (Provided the

"Supplemental Worker" employee has been in the

employ of the employer for thirty (30) work

days.)

(Ex. 4 at 26) Passo and Simon ensured that this section would "not

apply to 'D' list workers," i.e., United's employees. (Ex. 84)

____________________

155 This was the difference between the $20.53 time and one

half hourly wage the red book contract required for Supplemental

Workers with 150 hours in the industry and the $11.00 per hour wage

rate Passo's agreement required D2 list workers to be paid after

250 hours in the industry.

111

As detailed below, the handwritten memorialization of the

concessions to Simon that Passo provided the IBT was far more

favorable to Simon than Passo pretended the arrangement was during

his sworn examination. For example, Passo in his testimony claimed

that Simon would begin making benefit fund contributions on behalf

of his employees after they worked 50 hours in the industry. (Ex.

20 at 92-93) In contrast, Passo's belatedly provided handwritten

agreement provided that Simon would only begin to make benefit fund
contributions after his employees worked 250 hours, five times more

than Passo claimed in his sworn examination. (Ex. 84)156 As

discussed above, the red book contract required an employer to make

benefit fund contributions from the first hour worked. (Ex. 4 at

26-27; Ex. 2 at 187)

P. GES Used United Employees to Perform Teamster Work on the

MAGIC Show

The MAGIC show, one of the large trade shows, was held in

Las Vegas between approximately August 24 and September 3, 2000.

(Ex. 215) During the MAGIC show, GES, the general contractor, used

United employees to perform Teamster work. (Ex. 82 at 74-80; Ex. 26

at 60-63; Ex. 6 at 89; Ex. 156 at 27, 47, 93; Ex. 149 at 59-62; Ex.

___________________

156 Passo testified that he made this concession "because Rick

Simon told me that would help him survive if he could get that."

(Ex. 20 at 81) Passo did no verification of Simon's economics to

see if there was any truth to it. His ready acceptance of the

employer's claim was yet another indication he was acting on behalf

of Simon and not IBT members or United employees.

112

25 at 93; Ex. 203 at 21; Ex. 300 at 25-26)157' This was done despite

there being workers available to be dispatched through Local 631 to

perform this work. (Ex. 26 at 63; Ex. 82 at 76; Ex. 6 at 72-73; Ex.

149 at 59-60)

Whitfield requested Wilkerson and Frates to come to the

Las Vegas Convention Center during the MAGIC show because she

anticipated problems with GES. (Ex. 6 at 73) Whitfield had "turned

around" members who worked on the show immediately prior to the

MAGIC show in order that they would be available to work on the

MAGIC show. (Ex. 6 at 73) Whitfield had also arranged to have

members of the Stagehands union dispatched from Local 631 after the

Local 631 dispatch list was exhausted. (Ex. 6 at 89) According to

Whitfield, one of GES' labor calls requested 120 people and Local

631 supplied all but five workers. (Ex. 6 at 72)

In apparent violation of the contract, GES brought in

United employees to do that work and refused to use the people from

the Local 631 dispatch office. (Ex. 6 at 73) According to

Whitfield,

But we did meet the number and so

that's what I told them originally when I left

was, "We will meet your call."

And they said, "Well, you know, we're going to

do this."

I said, "No. You don't have the right to do

________________
157 The August 30, 2000 telephone conversation between Frates

and Simon discussed above took place during the MAGIC show.

113

it. If we don't have the numbers, that's one

thing. But we do, so you can't do that."

Well, that's why I, like I said, took Marty

and Jim with me. And they saw it, and they

couldn't believe it. But we met the call,

They knew we met the call because they had

checked with Jennifer even including and above

myself.

And Jennifer and I had agreed, you know, we

met the numbers they gave us on paper. But

they -- that's -- see, this is what the

company does because they figure, "Okay. This

is a cheaper labor."

(Ex. 6 at 78-79)158

Local 631 member Hernandez, a Spanish speaker, approached

some United employees who were doing Teamster work on the MAGIC

show. (Ex. 83 at 20) Hernandez explained:

____________________
158 Local 631 dispatcher Dodds testified that the Local was

able to fill the call when the MAGIC show came in. However, she

claimed that the Local was unable to meet the call on the teardown

of the MAGIC show. (Ex. 9 at 37) During her March 2001 sworn

examination, in testimony while questioned by the Trustee's

attorney, Dodds testified that she believed that business agent

Whitfield tried to force the trade show contractors to use members

of other unions after the Local 631 dispatch office was exhausted

when they were not required to do so under Dodds' understanding of

the red book agreement. (Ex. 7 at 95-96) Dodds, who was not a

business agent, testified that when Local 631 ran out of people to

dispatch, the trade show contractors should be told that the

dispatch office was exhausted so they could hire from any source.

(Ex. 7 at 95-99) Dodds did not consider it appropriate for

Whitfield to try to arrange for the trade show contractors to use

union labor, rather than hiring non-union labor from the street.

(Ex. 7 at 95-100) Passo had communicated his similar views to

Dodds. (Ex. 20 at 146) In contrast, the Local's business agents

and members knew it was preferable for union workers to be

dispatched from the Local rather than non-union workers being hired

any source. (Ex. 6 at 68; Ex. 2 at 193-206; Ex. 90 at 30-33; Ex.

155 at 9-11)

114

I approached a lot of them [the United

employees]. I let them know, you know, "Look,

our union is coming down here. We're getting

to the bottom of this. Our representatives

will be here if you guys want to approach

them, talk to them. I'll go with you. We'll

get your names. We'll get you signed on," and

what have you. "We'll take the necessary

steps to make sure that you guys are out here

legally, you know, and you have a right to

work and your rights are being met."

At that point, I'd probably say about three

vans full of United workers left the show

site. They just carted them off.

I don't know why. I don't know if they are

illegal. I don't know, you know, if they

didn't want to be members or -- I didn't know

the exact circumstances. They didn't really

stop to tell me, so to speak.

But three cars full left show site at that

point.

(Ex. 83 at 20)159 Business agent Whitfield also testified that the

United employees were brought to the convention site in a United

van. (Ex. 6 at 82) The United supervisors would not allow

Whitfield or the Local 631 steward to speak to the United

employees. (Ex. 6 at 87)

Wilkerson and Frates also observed United employees

performing Teamster work. (Ex. 82 at 74-75, 79; Ex. 26 at 60-63)

_________________

159 On January 17, 2001, during the Super Show for which

Michael Hogan's company Show Biz USA was the general contractor,

two men went to Hernandez's home and told her that she should not

talk to the IRB and she was not making any friends. (Ex. 216) As

discussed below, on the Super Show, Show Biz attempted to use

United employees to perform Teamster work. (Ex. 154; Ex. 155 at 25-

27)

115

According to Wilkerson, " . . . we speculated that Dane Passo and

Simons or whoever they talked with at GES, they worked a deal."

(Ex. 26 at 63) Wilkerson recognized there were people available to

be dispatched from Local 631 to do the work the United employees

were performing. (Ex. 26 at 63) Wilkerson explained, "[t]hat's why

we ended up filing all those grievances. Two reasons, anybody who

was left on the list; two, we wanted the insurance paid and the

pension paid and the wages paid properly." (Ex. 26 at 63) Under

the subcontracting provision in the red book contract,

subcontracted workers performing bargaining unit work must be paid

the contract wages and benefits. (Ex. 4 at 12; Ex. 26 at 63)

Whitfield testified that she and Frates argued with GES

management representatives about the use of the United employees on

the MAGIC show. (Ex. 6 at 79-80) The GES representatives brazenly

informed them "we don't care" and stated that the Local should file

a grievance. (Ex. 6 at 79-80) Frates testified as follows:

we made it very clear that we did not

want Simon's group, the cleaning one, whatever

it is. They had vanned them down to the

convention center. It was interesting because

none of them spoke English, and there would be

one -- basically one interpreter to a van, and

they were flooded into the joint to do some

work.

Mr. Wilkerson and myself were absolutely

adamant that a grievance be filed; that those

people would be fully compensated, every penny

under the contract. We do not know what they

were being paid. We do not know if health and

welfare and pension were paid. And there is a

pending grievance -- there was a grievance

116

when I was there. It is my understanding that

grievance is still pending, and I was very

adamant about that. They went to work for

GES. I don't remember the specific date --

but I'm sure GES does -- that I sat in on a

meeting and told them that I didn't buy this

kind of crap, that they were paying them full

bore. They weren't getting a free ride. And

that quite frankly, I didn't appreciate their

conduct and how they were doing business, and

if they wanted a war, they were getting one.

(Ex. 82 at 74-75)

During the MAGIC show, there were two calls from Hogan's

cellular telephone to Passo's cellular telephone. (Ex. 73) These

calls were made on August 29, 2000 for fifteen minutes and

September 1, 20.00 for eleven minutes. (Ex. 73) In addition, during

the MAGIC show, there were two calls, on August 30 and September 1,

from Passo's cellular telephone to Hogan's cellular telephone. (Ex.

49)

Based upon their observations during the MAGIC show,

Trustee Wilkerson and Assistant Trustee Frates, both experienced

Local employees specifically entrusted by Hoffa with responsibility

in Local 631, directed the trade show business agents to file

grievances against GES for using employees of Simon's company to

perform bargaining unit work. (Ex. 26 at 63-69; Ex. 82 at 80)

Business agent Benboe received approximately thirty telephone calls

from members complaining about the United employees performing

117

Teamster work on the MAGIC show. (Ex. 149 at 61-62)160 In

connection with the MAGIC show, Benboe testified as follows:

. . . The phone rang off the hook, and I had

no idea how many of those people were going to

be coming in.

So I seen the ramifications of this thing, so

I told everybody that was calling that had

concern with this issue, that we were just

filing a blanket grievance. And that would --

because alot of these people were saying, you

know "I need to come down," or "I have to fill

out a grievance."

I said don't worry about it. I've already

gotten it taken care of. I just filed a

blanket grievance covering everybody.

(Ex. 149 at 61)

On September 5, 2000, Local 631 sent by facsimile a

grievance to GES regarding the United employees performing

bargaining unit work. (Ex. 151)161 Also on September 5, 2000,

Passo, who left Las Vegas on August 24th, returned to Las Vegas.
________________

160 Benboe testified:

on MAGIC, for instance, they were

sending our people home. They were telling

our people, "Okay. We'll need you back

tomorrow at such and such a time," and keeping

these people who were going around and

performing work that is found under our

jurisdiction: It generated a ton of

paperwork.

(Ex. 2 at 215)

161 It also appears that at least two additional grievances

were filed against GES for the use of the United employees on the

MAGIC show. (Ex. 151)

118

(Exs. 130-31)

Frates testified as follows regarding the grievance filed

against GES: "I did talk to Mr. Benboe about the grievance and told

him, in my opinion it was very, very important that that grievance

be processed and very vigorously, and he was in total agreement."

(Ex. 82 at 83) As detailed below, as of March 29, 2001, the MAGIC

show grievances against GES concerning the use of the United

employees were unresolved. (Ex. 2 at 157-59; 218)162

As soon as Wilkerson saw Passo after observing the United

employees working on the MAGIC show, he told Passo that the Local

was going to go after United. (Ex. 26 at 65) Wilkerson also told

Passo a grievance had been filed against GES. (Ex. 26 at 68) On

September 8, 2000, three days after Passo returned to Las Vegas and

eleven days after Passo had submitted his agreement with Simon to

the IBT Legal Department, based upon Passo's recommendation, Hoffa

_________

162 When asked about the issues involved in the grievances

filed against GES concerning the use of the United employees,

business agent Benboe testified as follows:

There are issues -- like you say, there are

jurisdictional issues, there's issues of them

performing work while we had people available,

there's issues of our people being laid off

and those people being retained, and there's

issues of these people are being -- are not

being paid contractual wages nor are they

receiving the benefits, which is all inclusive

in each individual grievance.

(Ex. 2 at 217)

119
terminated Frates as Assistant Trustee. (Ex. 84; Ex. 82 at 7)163

Q. Passo Caused Assistant Trustee Frates to be Terminated

While Trustee Wilkerson was out of town, on September 8,

2000, Hoffa terminated Frates as Assistant Trustee on Passo's

recommendation. (Ex. 26 at 111-112; 82 at 7)163 Hoffa admitted he

made the decision to remove Assistant Trustee Frates solely on

information Passo provided. (Ex. 78 at 61; Ex. 12 at 214) Neither

Scalf nor Hoffa investigated Passo's claims regarding Frates before

terminating Frates. (Ex. 12 at 149-150; Ex. 78 at 61) They did not

_________________

163 In addition to causing Frates to be terminated, Passo

attempted to reduce business agent Whitfield's hours to part-time.

(Ex. 6 at 36-40) Passo told Whitfield that she should work part-

time because of health issues. Passo proposed that Sherri Muckler,

a trade show steward, would take half of Whitfield's hours. (Ex. 6

at 37-39) Prior to the Local being placed in Trusteeship, on March

2, 2000, Muckler had attended a meal at IBT expense with Passo,

Hogan, Locascio and Locascio's brother. (Exs. 119-119) Whitfield

told Passo that she was able to work full-time. She then

complained to Trustee Wilkerson about Passo's proposal to cut her

hours and Wilkerson told her that it would not happen. (Ex. 6 at

37-41)
164 When asked about Frates' termination, Wilkerson testified

as follows:

A: It was again with Dane interfering with the business

agents. I think Marty pretty much told him again "You

stay the hell out of this. This is not your

responsibility."

Q: Was this a situation where he was telling the business

agents to do one thing and Marty had told them to do

something else?

A: Yes.

(Ex. 26 at 111-112)

120

even ask Frates, whom Hoffa had appointed, his response to Passo's

allegations. (Ex. 12 at 150) Although Scalf asserted that he

believed that he spoke to IBT Vice President and Joint Council 42

President Santangelo about Passo's allegations concerning Frates,

he could not recall what Santangelo said. (Ex. 12 at 151) In

contrast, Santangelo testified that he had no discussions with

anyone in the Hoffa administration before Frates was terminated.

(Ex. 32 at 35-36) Hoffa and Scalf failed to check with either the

more experienced Trustee or Assistant Trustee Hoffa had appointed

about Passo's claims but instead rubber-stamped Passo's

recommendation.

According to Hoffa and Scalf, Frates was removed as

Assistant Trustee because Passo asserted that Frates was putting

together a "political machine" at the Local, disrupting the Local,

failing to process grievances that Passo thought had merit and not

spending enough time at Local 631. (Ex. 78 at 61; Ex. 12 at 148)165

In addition, Hoffa testified that Frates was removed because he and

Passo conflicted on the approach to handling problems at the Las

Vegas Convention Center. (Ex. 78 at 61) That was true. Frates

opposed Simon's and Hogan's brother's company getting a substandard

________________

165 In a September 10, 2000 conversation with Whitfield and

trade show steward Michael Robertson, two days after Passo caused

Frates to be terminated, Passo stated that Frates "didn't respect

me as the General President and he found out that I'm the General

President's Assistant. You're not going to pull any power over me .

. . .." (Exs. 217-18; Ex. 156 at 64-65; Ex. 6 at 144; Exs. 130-31)

121

contract; Passo supported it. Indeed, without anyone with

authority at the Local agreeing to the concessions, Passo sent to

the IBT's Legal Department the arrangement that he, with Hogan's

support, was prepared to enter into with United with its litany of

concessions to Simon.

Passo had concealed from Hoffa and Scalf important

activity he was involved in at the Local. For example, even though

Passo participated in the meeting among Hoffa, Hogan and Simon in

Chicago in late July or early August, Passo had not disclosed to

Hoffa his involvement with Simon and Hogan to secure a concession-

laden arrangement for Simon with Local 631. (Ex. 78 at 29) Nor did

he disclose he was meeting with Hogan and trade show industry

employers such as Freeman without the Local 631 Trustee or any

Local employee being present. (Ex. 12 at 145-46; Ex. 20 at 207)

If Scalf had investigated the allegations Passo had made

about Frates, he might have detected or deterred Passo's

misconduct. (Ex. 12 at 147-151) For example, it appears that the

grievance Passo alleged Frates failed to process was a grievance

Local 631 member Dudash wanted filed. (Ex. 12 at 150)166 Passo had

close ties to Dudash. (Ex. 26 at 106)167 Passo caused the IBT to

__________________

166 Dudash alleged that he was late for work one day and when

he arrived there was no work for him. He also alleged that he was

laid off and missed work on that show. (Ex. 219)

167 For example, Passo tried to have Dudash, who had been

convicted of bank robbery in 1992, work as a steward in the trade

show industry. (Ex. 220 at 7-8; Ex. 82 at 113; Ex. 6 at 27-28)

122
pay for nineteen meals in Las Vegas where Dudash was present. (Exs.

122-25, 128-33, 142)168 Scalf did not speak to Trustee Wilkerson or

Frates, whom General President Hoffa had appointed to a UPS

National Grievance Panel, about Dudash's frivolous grievance. Nor

did he ask the Local to provide any records concerning Dudash's

grievance. (Ex. 12 at 150-51) Had Scalf made inquiries, he would

have learned that, in addition to Frates, both trade show business

agents and Trustee Wilkerson had investigated Dudash's grievance,

obtained records from his employer and determined it was without

merit. (Ex. 26 at 108-109; Ex. 149 at 21-23; Ex. 6 at 254-58; Ex.

82 at 25-29)169 Passo alone saw merit in his friend's frivolous

se In August 2000, Passo and Dudash were present at two

meals with General President Hoffa in Las Vegas. (Ex. 221) Former

Local 714 member Locascio was also present at these meals. (Ex.

221)

___________________

169 On September 5, 2000, after looking into the facts

surrounding Dudash's claim, Assistant Trustee Frates wrote a letter

to Dudash informing him that he agreed with business agents Benboe

and Whitfield that there was no contract violation and therefore

the Local would not pursue his grievance. (Ex. 222) Whitfield

testified that Passo yelled at her and insisted that she proceed

with Dudash's grievance which she had investigated and found to be

without merit. (Ex. 6 at 257-71) On September 6, 2000, Whitfield

asked Frates to speak to Passo about this grievance. (Ex. 6 at 257-

271; Ex. 82 at 26-28) That same day, Frates told Passo that

Dudash's grievance had no merit. (Ex. 82 at 26-28) Frates and

Passo had a heated argument about Dudash's grievance. (Ex. 82 at

26-29; Ex. 6 at 263-64; Ex. 20 at 237-240) Passo claimed that

Frates stated, "Fuck Jeff Dudash, he's no good. He is a piece of

shit member. We're not representing him. Tell him to get the fuck

out of the hall." (Ex. 220 at 60; Ex. 20 at 238) In December 2000,

Dudash, with the assistance of former Local 714 member Locascio,

filed internal union disciplinary charges against Frates, Benboe

and Whitfield for failure to file his grievance. (Ex. 223; Ex. 220

at 54-56) On January 25, 2001 Trustee Jacobson dismissed these

123

claim. Apparently the merits of Passo's claims were not of concern

to Hoffa and Scalf, only the source.

When asked whether there was anything wrong with

Assistant Trustee Frates putting a slate together, Scalf responded,

"Yes, there is, that wasn't his duties there." (Ex. 12 at 14 9) 170

Yet, in a much more obvious and documented way, Passo seems to have

been involved in such conduct, but Hoffa and Scalf turned a blind

eye to Passo's activities. It appears that Passo was assisting

former Local 714 member Locascio to run for office at Local 631 and

using IBT resources to do so. Locascio frequently told Passo that

he wanted to run for Local 631 office. (Ex. 21 at 322)171 As

detailed below, Passo, who had a close relationship with Locascio,

took repeated steps to promote Locascio.172 Passo had the IBT pay
charges. (Ex. 224)

_______________

170 Scalf did not believe that Frates intended to run for

office himself. (Ex. 12 at 149)

171 In 1996, Locascio worked on the Hoffa campaign in Las

Vegas. (Ex. 147 at 57-58) When asked whether there were Hoffa

campaign headquarters in Las Vegas during the 1996 election,

Locascio testified, "Not that I know of. I guess it was me." (Ex.

147 at 58) Locascio worked on Hoffa's reelection campaign in Las

Vegas. (Ex. 205 at 13; Ex. 147 at 59: Ex. 20 at 321) When asked

whether he had any position with Hoffa's current campaign, Locascio

responded, "No, I do not. I just kind of coordinate. I guess it's

an unofficial -- I have never been appointed to any position." (Ex.

147 at 59)

172 Since Local 631 was placed in Trusteeship, Passo and

Locascio spoke at least once a day. (Ex. 147 at 33) During the 159

days that Passo was in Las Vegas between February 29, 2000 and

November 19, 2000, Passo caused the IBT to pay for at least 87

meals where Locascio was present. (Exs. 118-135, 144) At twenty-

124

for 87 meals he had with Locascio. (Exs. 96-111, 144) Moreover,

Passo directed Trustee Wilkerson to send Locascio, who held no

union position, to the Teamster Leadership Academy ("TLA") in

Washington, DC at Local 631 expense; forced Wilkerson to hire

Locascio, a felon ineligible to vote in Nevada, for Get-Out-The-

Vote ("GOTV") work and tried to force Wilkerson to hire Locascio as

a business agent. (Ex. 26 at 98-99; Exs. 145, 226) In addition,

after the Trusteeship was imposed on Local 631, Locascio became the

head of the Local 631 "strike force" which had an office and a

telephone at the Local. (Ex. 147 at 101-03; Ex. 220 at 39)173 Passo

introduced Locascio to Hoffa. (Ex. 78 at 97; Ex. 221)

R. Passo's Interference in the Running of Local 631

According to Trustee Wilkerson, Passo interfered with his

ability to run Local 631. (Ex. 26 at 83-84, 86-87, 117) For

example, Passo instructed the Local's business agents that they

should do what he told them to do rather than listen to Trustee

Wilkerson or Assistant Trustee Frates. (Ex. 26 at 73; Ex. 6 at 35-

36, 268-69; Ex. 82 at 29)174 Passo also interfered with Frates' job

eight of these meals only Passo and Locascio were present. (Exs.

96-111, 144) In addition, between May 2000 and February 2001,

there were 97 calls from Passo's IBT cellular telephone to

Locascio's telephone. (Exs. 45-52, 55-60, 225, 282-84)

_____________
173 The "strike force" was reportedly a group of volunteers

who worked on picket lines. (Ex. 227 at 37)

174 According to Wilkerson, Passo's "favorite statement to the

business agents when I wasn't around, you know, 'Even though

Wilkerson is trustee, I'm the boss. I'm Hoffa's assistant,

125

of training and supervising the business agents, an Important role

since one of the reasons given for the Trusteeship was the

inexperience of the Local's business agents. (Ex. 26 at 86; Ex. 82

at 29; Ex. 14)175

Yet, in spite of this pronounced reason for the

Trusteeship, Passo also insisted that his cronies, who had never

been employed at any !BT entity other than one who had been a

Local's janitor, be hired at Local 631. (Ex. 26 at 24, 30, 27-29;

Ex. 228 at 5-9; Ex. 80 at 5-6; Ex. 147 at 5-7)176 When Wilkerson

refused to do as Passo demanded, Passo caused Scalf to order

Wilkerson to hire them. Scalf admitted all his instructions to

Wilkerson about the Local were based upon Passo's recommendations

which he accepted blindly. (Ex. 12 at 47) Despite the Trusteeship

____________________

personal assistant."' (Ex. 26 at 73)

175 According to Wilkerson, Passo "was just trying to usurp

the authorities that Marty had been given." (Ex. 26 at 86)

176 Wilkerson testified, "It's almost like they put together

a group out of Chicago that eventually infiltrate." (Ex. 26 at 115)

According to Wilkerson,

. . . there was a political agenda which it

was certainly a strong part of Passo.

He said to me one time, "You know, Hoffa

offered me this local union if I wanted it."

And I said, "Then why don't you take the damn

thing and let me go back to being retired."

That was the last I heard of that. I don't

know if that was a long range program or --

(Ex. 26 at 76)

126

pronouncement, only Passo's approval and not the candidate's

experience was of concern to Scalf.

For example, shortly after Wilkerson became Trustee,

Passo began to urge him to hire Frank Incandella ("Incandella"),

who had been a member of Local 705 in Chicago. (Ex. 26 at 25, 167;

Ex. 228 at 18) Incandella transferred to Local 631 in March 1998.

(Ex. 167) Incandella had known Passo for between fifteen and

twenty years. (Ex. 228 at 18)177 Between May 22, 2000 and January
29, 2001, Passo caused the IBT to pay for twenty meals where

Incandella was present. (Exs. 122-25, 130-35, 229) In addition,

the day before his IRB sworn examination, Incandella had dinner

with Passo and Locascio in Las Vegas. (Ex. 228 at 23-24)

Wilkerson refused to hire Incandella. (Ex. 26 at 24-25)

Scalf followed Passo's instructions and ordered Wilkerson to put

him on the payroll. After this direction from Scalf, Wilkerson

hired Incandella. (Ex. 26 at 24-25, 106, 115; Ex. 12 at 141) Scalf

did not know Incandella. (Ex. 12 at 140-41) He gave his

instructions to Wilkerson based solely upon Passo's recommendation.

(Ex. 12 at 141) Incandella was hired on September 2, 2000 as an

organizer. (Ex. 230; Ex. 228 at 9) After Wilkerson terminated

________________

177 Incandella testified that when he and Passo were both

Local 705 members they saw each other approximately once a month.

(Ex. 228 at 17-20) During his January 2001 sworn examination,

Incandella testified that since Passo left Las Vegas in

approximately mid November 2000, he spoke to Passo two or three

times a week. (Ex. 228 at 17-20, 26-27)

127

business agent Ike Moses at Scalf's direction, Incandella became a

business agent effective approximately October 28, 2000. (Ex. 230;

Ex. 228 at 9; Ex. 87)179 Between September 2, 2000 and February 25,
2001, there were fifteen calls from Passo's cellular telephone to

Incandella. (Exs. 49-53, 59-60, 231)1'9

Passo also insisted that Wilkerson hire Billy Cooper

("Cooper") as an organizer. (Ex. 26 at 27-28) Cooper was a member

of Local 916 in Springfield, Illinois and had worked on Hoffa's

campaign. (Ex. 80 at 5, 11) At Passo's direction, Cooper began to

work at Local 631 in July 2000. (Ex. 26 at 27-29; Ex. 232)180

Between August 4 and August 23, 2000, Passo caused the IBT to pay

for 12 meals where Cooper was present. (Exs. 100-01, 104-05, 233)

Wilkerson observed that Cooper "was more involved in Dane

Passo than he was in doing his job." (Ex. 26 at 28) When asked

what Cooper was doing with Passo, Wilkerson testified, "[jlust

wherever Dane went, he went. That's what I eventually found out."

(Ex. 26 at 28) Frates testified that he and Passo got into an

argument because Cooper was not doing the work he was assigned to

____________________________

As of January 2001, Incandella was the Local 631 business

agent for the freight industry and the movie industry. (Ex. 228 at

10)

179 Prior to Incandella being hired at Local 631, there were

four calls from Passo's cellular telephone to Incandella. (Exs. 47-

48, 57-58; 231)

180 Cooper, who knew no one at Local 631 other than Passo,

claimed that he did not know whether Passo had arranged for him to

be hired at the Local. (Ex. 80 at 10-11, 14-15)

128

do. (Ex. 82 at 33-36)181

Cooper left Local 631 employment on August 25, 2000. (Ex.

232; Ex. 26 at 29) At that time, Hogan hired Cooper to work at

Joint Council 25 in Chicago as an organizer. (Ex. 80 at 4; Ex. 234)

Passo also directed Wilkerson to hire Locascio, who had

been a member of Local 714 while Hogan was the principal officer,

_________________

181 Frates was asked about his conversation with Passo

concerning Cooper and testified follows:

A: That had to do with another ,incident when Mr. Cooper was

gone for the day and not doing what he was supposed to do

and me following up on it. And Mr. Passo and I got into

a pretty good yelling, screaming match.

Q: And did you give Mr. Cooper assignments that he did not

perform?
A: No, I checked on his assignment for the day and he wasn't

where he said he was going to be, and when I called him,

he said he'd be in the office shortly, and he never came

in the rest of the day.

And at the end of the day when he did come in with Mr.

Passo, that's when we had the discussion. And I might

say the discussion was initiated by Mr. Passo.

Q: And you said Mr. Passo initiated the conversation. What

did he say?

A: Wanted to know why I was screwing with Billy Cooper.

Q: And what was your response?

A: I wasn't screwing with Billy Cooper.

(Ex. 82 at 35-36) Hogan went to the Local 631 offices with Passo

and Cooper on the day Frates had the argument with Passo about

Cooper. (Ex. 82 at 65=66)

129

to work on the IBT's GOTV efforts on the U.S. Presidential

election. (Ex. 26 at 30-31)182 Wilkerson refused. (Ex. 26 at 30-33)

Instead, in I-ate September 2000, Wilkerson hired Wayne King

("King"), a former Local 631 business agent, for the GOTV work.

(Ex. 26 at 30-31; Ex. 237) Passo recommended to IBT DRIVE

officials that Locascio be hired for the GOTV work. (Ex. 21 at 325-

27) 183

After Wilkerson hired King, Scalf informed him that the

IBT administration wanted Locascio to do the GOTV work. (Ex. 26 at

32-33) " Wilkerson explained to Scalf that since Locascio was a

felon ineligible to vote in Nevada, he did not think Locascio was

appropriate for the GOTV position. (Ex. 26 at 33)184 Nevertheless,

_______________

182 In March 1994, Locascio transferred to Local 631. (Ex. 147

at 7; Ex. 146) According to Local 631 records, Locascio began to

work in the convention industry in February 1996. (Ex. 235)

According to Local 631 records, Locascio was placed on the "A"

convention dispatch list on or about November 13, 1998. (Ex. 235)

Pursuant to Article I, Section E of the red book contract, it does

not appear that Locascio, who had worked 311 hours in the

convention industry as of May 31, 1997 and 363.5 hours in the

convention industry as of November 13, 1998, was eligible to be on

the "A" list. (Ex. 4 at 3-4; Ex. 236) Indeed, it appears that,

pursuant to Article I, Section (E) (2) of the contract, Locascio

would not have been eligible to be placed on the "A" dispatch list
until sometime in 2000 when he worked 800 hours in the industry.

(Ex. 4 at 3; Ex. 236)

183 Passo claimed he could not recall whether he recommended

to Scalf that Locascio be hired for the GOTV work. (Ex. 21 at 326)

184 Scalf denied telling Wilkerson to hire Locascio. (Ex. 12

at 163-64)

185 In 1983, Locascio pled guilty to a felony burglary charge

in Chicago. (Ex. 147 at 14-15) In May 1987, Locascio pled guilty

130

as a result of Passo's intervention, Scalf ordered Wilkerson to

hire Locascio. (Ex. 26 at 33-35) Wilkerson Followed Scalf's

instructions. (Ex. 26 at 33-35)186 Locascio was on the Local's

payroll from October 14, 2000 through November 10, 2000. (Ex.

239)187

The Teamster Leadership Academy is the IBT's "leadership

training center" in Washington, D.C.. (Ex. 93 at 9) Although there

were Local 631 business agents who had not attended the TLA,

_______________

to the felony of theft from interstate shipment in Chicago. (Ex.

147 at 11-14; Ex. 238) He was sentenced to four months in a work

release program and five years probation. (Ex. 238) In 1990,

Locascio pled guilty to uttering a forged instrument in Las Vegas

after he tried to cash a forged check at a casino. (Ex. 147 at 15-

16)

186 When asked what Locascio did, Wilkerson responded, "What

was he supposed to do? He was supposed to work for the membership

to get out the vote, but I don't think he did anything." (Ex. 26 at

35) Wilkerson was asked the following questions and responded as

follows:

Q: And did anyone tell you that Mr. Locascio was or was not

doing what he was supposed to be doing?

A: No. I could see that. He was too busy doing other

things.

Q: What was he doing? What were the other things?

A: Just traveling with Dane Passo when he was here or with

Frank [Incandeila].

(Ex. 26 at 35-36) As discussed below, between March 1 and November

19, 2000, Passo caused the IBT to pay for 87 meals where Locascio

was present. (Exs. 118-135: Ex. 144)

187 In February 2001, DRIVE reimbursed Local 631 for the

salaries of King and Locascio. (Ex. 240)

131

including newly hired trade show business agents Whitfield and

Benboe, Passo insisted that Locascio, who held no union position,

be sent to the TLA in Washington, DC at Local expense. (Ex. 26 at

98-99; Ex. 1 at 151) As noted above, one of the reasons given as

the basis for the Trusteeship was the inexperience of the Local 631

business agents and their failure to adequately perform their

duties. (Ex. 14) Nevertheless, instead of arranging for business

agents who represented Local 631 members to attend the TLA, Passo

insisted that his crony Locascio, who was not employed at the

Local, attend the TLA. As usual, his request was quickly granted.

Passo informed Wilkerson that Hoffa wanted Locascio to

attend the TLA. Passo also insisted that Local 631 pay for

Locascio's airfare to attend. (Ex. 26 at 98-99) Wilkerson

explained:

I said, "Dane, it's not legal. I mean he

doesn't even work for the local. He's not an

employee of the local. He's not a business

agent. I can't be spending money sending him

places like that."

"Well, he's a shop steward."

I said, "Makes no difference." I said, "it

makes no difference. Actually shop stewards

are not allowed to attend those functions.

That school is for business agents and

officers." But eventually I relented and sent

him.

(Ex. 26 at 99) Passo contacted TLA Director Mary Hardiman

("Hardiman") to urge that Locascio be permitted to attend the TLA.

(Ex. 93 at 19-20;. Ex. 21 at 289) According to Passo, he asked

132

Hardiman to permit Locascio to attend the TLA because, "Vito asked

me if he could learn more about the union and he would like to go

to the academy." (Ex. 21 at 290) It was unquestioned that pleasing

Passo's friends was an adequate reason for the IBT to expend

resources.

Locascio attended the TLA for business agents and

officers in Washington, DC between October 2 and October 6, 2000.

(Ex. 145) As Passo directed, Local 631 paid for Locascio's airfare

to travel to Washington. (Ex. 295; Ex. 147 at 108; Ex. 26 at 98-99)

Of the 41 attendees, only Locascio and Local 986 steward Kevin

Harren were not employed at a Local. (Ex. 241)188 While in

Washington for the TLA, Locascio visited both Hoffa and Scalf in

their offices. (Ex. 147 at 61; Ex. 12 at 161-62; Ex. 78 at 55)

In the years 1999 and 2000, there were approximately 367

attendees at the TLA. (Ex. 243) Of these 367 individuals, all were

union officers, business agents or union employees with the

following five exceptions: two shop stewards, one volunteer

organizer, the Director of the Canadian Joint Grievance Panel and

Locascio, who was not even a steward according to Local 631

______________

188 Hardiman, who has worked in the IBT's Education Department

since 1982 and has been the head of the TLA since March 1999,

claimed that Yanko Fuentes, who was a Trustee of Local 805 and also

attended the TLA Locascio attended, was not a union officer. (Ex.

93 at 6, 23; Ex. 241) However, despite running the TLA, Hardiman

appeared to be ignorant of who was a Local officer. Contrary to

her claim, pursuant to Article XXII, Section 2(a) of the IBT

Constitution, Trustees are union officers. (Ex. 242)

133

dispatch records. (Exs. 235, 243-44) As TLA Director Hardiman

acknowledged, it was rare for a member with no union position to

attend the TLA. (Ex. 93 at 27-28)189 Passo also tried to force

Wilkerson to hire Locascio as

a business agent. (Ex. 26 at 26-27) Wilkerson refused. (Ex. 26 at

26-31) After having Wilkerson removed, Passo tried to convince

Trustee Jacobson to hire Locascio. (Ex. 12 at 218-19)190 According

to Scalf, "Dane recommended that [Locascio] be hired in the local

and that Ed Jacobson is totally against that, he said absolutely

not." (Ex. 12 at 218-19) Scalf also testified that the IBT's

General Counsel, who had a background check done on Locascio, was

"vehemently against [Locascio] being hired there." (Ex. 12 at 219)

Jacobson testified that Locascio was not qualified to be a business

agent. (Ex. 1 at 153-54) Jacobson told Scalf that Locascio was

disruptive at the Local. (Ex. 12 at 223)191 Given all this, Scalf

_______________

189 According to Hardiman,

I said the occasion where a rank-and-file

member attends the Leadership Academy is more

of a minority situation probably. And I'm

speculating here, because they would lose

wages for a whole week.

(Ex. 93 at 28)

190 Passo also asked Jacobson to hire a trade show member for

a clerical position at the Local. (Ex. 1 at 152-53)

191 Scalf testified as follows regarding Locascio:

Q: And how does Mr. Locascio disrupt things?

134

did not rubber-stamp Passo's request as usual. As of March 2001,

Jacobson had not complied with Passo's request.

S. Santangelo Reported Problems with Simon and Passo

In addition to informing Scalf about Passo's substandard

agreement which Scalf never inquired into (Ex. 12 at 101-03),

Wilkerson also complained to IBT Vice President and Joint Council

42 President Santangelo about the substandard agreement Passo was

pressuring him to grant United. (Ex. 26 at 88-91) Both Wilkerson

and Santangelo thought it was inappropriate for the IBT to enter

Passo's proposed substandard agreement with a labor broker. (Ex. 26

at 88-91; Ex. 32 at 27, 30-31) Santangelo explained that if such

an arrangement was agreed to "I mean we would be all dead. This

would be crazy, you'd kill this whole industry." (Ex. 32 at 31)

On September 9, 2000, the day after Frates was

terminated, Santangelo, recognizing the agreement Passo was

A: I think he talks about people, he talks to people, he

down talks people, he just all around makes people mad.

He's just not a real people person.

Q: And you also indicated that your attorney had told you

that he was also not in favor of Mr. Locascio being

hired?

A: Yes.

Q: And why was that?.

A: Because of the background check and probably the other

reasons that I just gave you.

(Ex. 12 at 223)

135

advocating for Simon's company was suspicious, contacted Stier from

the IBT's RISE program and asked him to look into Simon. (Ex. 32 at

30-31; 44-45) Subsequently, as Santancelo noted, "Ed [Stier) told

me to stay away from him and to tell the Teamsters to stay away

from him." (Ex. 32 at 46)191

After this conversation, based upon conversations Scalf

had with IBT General Counsel Szymanski and General President Hoffa,

on September 12, 2000, Scalf called Passo and directed him to stop

dealing with Simon. (Ex. 12 at 114)193 Scalf did not review what

Passo had already done.

T. Experienced Teamster Officials Complained to General

President Hoffa and his Executive Assistant Scalf about

Passo's Activities at Local 631

At approximately the end of August, Wilkerson contacted

Scalf about Passo and told Scalf:

"I cannot operate this way. If you want me to

run the local union, then I have to be able to

run this union without the interference from

him. I can't have him interfering with the

business agents. Either he runs the local or

I run the local. It can't be both of us

here."

________________

192 Santangelo further testified that Stier stated, ". . . the

guy is not a nice guy. He's a funny guy. He's got all kinds of

baggage." (Ex. 32 at 45)

193 Passo testified that no IBT official told him not to deal

with Simon. (Ex. 20 at 227-229) Rather, he claimed that he heard

"rumors" that "Rick Simon is a bad guy, not a good person to deal

with." (Ex. 20 at 226)

136

(Ex. 26 at 86-87) Scalf told Wilkerson that Passo would leave Las

Vegas. (Ex. 26 at 85-87) Passo left Las Vegas on August 24 and

returned on September 5, 2000. (Exs. 128-31; Ex. 26 at 87-88)

This was not the first time experienced IBT officials

made complaints to Hoffa and Scalf about Passo's behavior. For

example, by letter dated February 4, 2000, then Joint Council 25

President Tony Judge ("Judge") and then Joint Council 25 Vice

President Frank Wsol ("Wsol") complained to Hoffa about Passo's

activities concerning the Overnite strike in the Chicago area. (Ex.

91)194 In this letter, Judge and Wsol reported to Hoffa that,

"Passo was instructing people to report to him and no one else."

(Ex. 91) 195

Wilkerson also called Scalf to complain about Passo on

other occasions including objecting to Passo's substandard

arrangement for Simon. (Ex. 26 at 86-88, 101-102) Scalf

acknowledged, "it seemed like every time that Jim called, it was

__________

194 Even though this letter to Hoffa was also copied to Scalf

and General Secretary-Treasurer Keegel, in response to an IRB

document request dated December 22, 2000 for all complaints

regarding Passo, this document was not provided. (Ex. 292; Ex. 12

at 185; Ex. 190) Scalf was shown a copy of this letter on March

2, 2001 during his sworn examination. (Ex. 12 at 185)

195 On March 9, 2000, approximately one month after this

letter was sent to Hoff a, Judge resigned as Joint Council President

and Hogan was appointed to take his place. (Ex. 245) Judge became

the Vice President of the Joint Council. (Ex. 15 at 13) On May 1,

2000, Hogan was appointed an IBT Representative. (Ex. 143)

According to Scalf, Hogan oversees the Overnite strike in the

Chicago area. (Ex. 12 at 59)

137

about Dane interfering." (Ex. 12 at 134) The end result was the

experienced Trustee was removed and Passo was continued in place as

monitor.
In September 2000, Trustee Wilkerson met twice with Hoffa

and Scalf in Las Vegas. One of these meetings was on or about

September 17, 2000. (Ex. 26 at 116)196 During this meeting,

Wilkerson informed Hoffa and Scalf that Passo continued to

interfere with his ability to run the Local. (Ex. 26 at 117)197

Although Wilkerson frequently complained about Passo and his

complaints were similar to complaints other IBT officials had made

concerning Passo, Scalf and Hoffa ignored Wilkerson's complaints

about Passo's behavior. (Ex. 12 at 135)

Trustee Wilkerson also met with Hoffa and Scalf at

_____________

196 This was the Sunday morning during the Unity Conference.

(Ex. 26 at 116) The IBT Unity Conference was held in Las Vegas

between September 15 and 22, 2000. (Ex. 246)

197 Wilkerson testified that he told Hoffa and Scalf the

following:

Well, it comes back to Dane, the interference

of Dane. And I said, "Hoffa, you couldn't run

that International if you had somebody trying

to usurp your authority in running that

International. Well, that's what you got

someone here doing."

"Well, he'll stay out of your way. He won't

step on your toes."

That's the end of the meeting, That's in

essence what they said, what he said.

(Ex. 26 at 117)

138

Baily's Hotel in September 2000. (Ex. 26 at 101-04)198 Wilkerson

waited at the hotel for Hoffa and Scalf to return from the Hoffa

Scholarship Fund golf tournament. (Ex. 26 at 103-104) When they

returned to the hotel, Wilkerson told them, "'We need to talk about

running this local union."' (Ex. 26 at 104) During this

discussion, Scalf told Wilkerson to terminate the following Local

employees: business agents Whitfield, Moses, D.C. Cardwell, John

Phillipenas and in-house attorney Dennis Quish. (Ex. 26 at 102)199

Scalf acknowledged he asked Wilkerson to terminate Moses, Quish and

Phillipenas; however, he claimed that he did not ask Wilkerson to

terminate Whitfield or Cardwell. (Ex. 12 at 137-140) Scalf's

recommendations were based upon Passo's instructions. (Ex. 12 at

138-41)200 Wilkerson agreed that Moses and Quish should be

________________

198 Wilkerson testified that this meeting may have been at

the time of the Hoffa Memorial Scholarship Fund golf tournament in

Las Vegas. (Ex. 26 at 103-04) This golf tournament was held from
September 21 to September 23, 2000. (Ex. 246)

199 Wilkerson was asked the following question and responded

as follows:

Q: And did Mr. Scalf tell you why he wanted these five

people terminated?

A: No. I am sure it had something to do with that Dane had

told him because most all of those guys were stand-up

guys. I am sure they had told Dane no -- they -- they

just told him to go to hell, that they worked for me.

(Ex. 26 at 103)

200 For example, Passo acknowledged that he told Scalf that

Moses should be terminated. (Ex. 20 at 230)

139

terminated and he let them go. (Ex. 26 at 101-05)

Also during the Unity Conference in Las Vegas, IBT Vice

President Santangelo met with Hoffa regarding Passo and the

problems he was causing at Local 631. (Ex. 32 at 33) Santangelo

invited other members of the IBT's General Executive Board from the

Western Region to attend this meeting. (Ex. 32 at 33) In addition

to Santangelo, the following International Officers attended: Randy

Cammack, an IBT Vice President-at-Large and the principal officer

of Local 63 in Los Angeles, CA; Ralph Taurone, an IBT Vice

President-at-Large and the principal officer of Local 222 in Salt

Lake City, UT; Chuck Mack, an IBT Vice President from the Western

Region and principal officer of Local 70 in Oakland, CA and Jon

Rabine, an IBT Vice President from the Western Region and principal

officer of Local 763 in Seattle, WA. (Ex. 32 at 33-35)

The International Officers told Hoffa and Scalf that

Trustee Wilkerson and Frates had had frequent arguments with Passo

about running the Local. (Ex. 32 at 33) During the Unity

Conference, Santangelo also told Scalf that the IBT should not

enter into the substandard agreement Passo was advocating. (Ex. 12

at 99-100)201 The five IBT officers from the Western Region

explained to Hoffa and Scalf that, "the best way to handle this is

if Dane would just leave for a while." (Ex. 32 at 34) Scalf

_______________

201 Scalf inexplicably despite complaints from Santangelo and

Wilkerson never investigated Passo's role in this.

140

testified that the IBT officials asked him to "keep [Passo] under

control." (Ex. 12 at 171-76) Hoffa, who had no investigation

undertaken into the complaints against Passo, dismissed this

meeting as "a gripe session" at which Santangelo complained that

Passo interfered with the administration of Local 631 and reported

that Passo had slandered IBT Vice President Cammack. (Ex. 78 at 62-

65) 202

In a cosmetic change without consequence, effective

October 1, 2000, Passo was removed as Special Assistant to the

General President. (Ex. 12 at 197-98; Ex. 11) However, his duties

remained exactly the same as before. (Ex. 12 at 217) Passo

continued to monitor Local 631. (Ex. 12 at 66)203 For example, on

March 19, 2001, Scalf and Passo met with current Local 631 Trustee

Jacobson in Las Vegas. (Ex. 1 at 134) Scalf and Passo also went to

the Local 631 offices together on March 19, 2001. (Ex. 1 at 140-41;

Ex. 7 at 102)204 Passo also kept his privileged position as

__________________

202 On September 10, 2000, Passo called IBT Vice President

Randy Cammack a "scumbag rat motherfucker" and "TDU rat fucking

scum." (Exs. 217-18; Ex. 156 at 56-57; Ex. 6 at 151; Exs. 131-32)

A tape of this conversation had been played for Santangelo, Cammack

and others. (Ex. 32 at 46-48; Ex. 156 at 68) Hoffa directed Passo

to apologize to Cammack. (Ex. 78 at 65)

203 Passo also continued to monitor Local politics. (Ex. 92 at

37-39) For example, in January 2001, he congratulated Trustee

Jacobson on "getting a white ballot for the delegates election . .

.." (Ex. 92 at 38)

204 This was the week before the IRB's second sworn

examinations of Trustee Jacobson and other Local employees. (EXs.

1-2, 7)

141

Sergeant-at-Arms at the General Executive Board meetings. (Ex. 20

at 53; Ex. 12 at 32, 198-99)

U. GES Continued to Use United Employees

After the MAGIC show, which concluded on or about

September 3, 2000, GES continued to use United employees, who

appear to have been paid substandard wages, to do Teamster

bargaining unit work. (Ex. 205 at 23; Ex. 203 at 25-26; Ex. 156 at

26-30, 44-46) For example, on or about November 3, 2000, GES used

United employees to perform bargaining unit work on the SEMA show

while there were Teamsters available to do that work. (Ex. 203 at

20-22; Ex. 25 at 92-93; Ex. 90 at 25-28) Local 631 steward Charles

Justice testified as follows regarding the SEMA show:

. . . These trucks come up long side of the

convention, and they was unloading the trucks.

We was doing it as Teamsters. It was getting

late, 12 hours and leaving. Then I seen these

United Exposition people coming up, and they

started doing our work.

I got a hold of Mike Robertson. Mike was the

No. 1 on the other section . . . . The No. 1

steward is over all stewards, which I was one

of them. I think he had several other ones.

He said he was going to handle this, and I

would not have to file another grievance on it

because he's going to make what they call a

mass grievance . . . .

(Ex. 90 at 25-26)

On November 4, 2000, steward Michael Robertson

("Robertson") filed a grievance against GES. (Ex. 152) According

142-

to business agent Benboe, during a March 21, 2001 meeting with GES

management, considerably after the time provided for in the

contract, it was decided that this grievance would go to a four man

panel. (Ex. 2 at 224)205 As of March 29, 2001, no date had been set

for the four man panel hearing. (Ex. 2 at 224)

In addition, on another show, the CES show, between

approximately January 6 and January 9, 2001, GES again used United

employees to perform Teamster work. (Ex. 205 at 23; Ex. 204 at 7-9;

Ex. 247 at 14-16; Ex. 203 at 26-25; Ex. 155 at 9-11) William

Christian ("W. Christian"), a Local 631 member and former business

agent for the trade show industry, observed United employees

performing Teamster work on the CES show. (Ex. 203 at 25-26)

According to W. Christian, one of the United employees on the CES

show told him that he was being paid $8.00 per hour. (Ex. 203 at

26)206 Christian explained that on that show, GES "sent our A

____________

205 Benboe testified that at this meeting, the GES

representatives stated that GES paid a flat fee to United for its

employees. Benboe testified that GES stated that the flat fee to

United cost more than it would have cost GES to hire people Local

63i dispatched. (Ex. 2 at 225-27) Benboe found this statement to

be incredible. (Ex. 2 at 227) According to Benboe, GES refused to

provide any records showing how much they paid United. (Ex. 2 at

226)

206 W. Christian testified,

. . . the cleaning company people, that they

made a comment to me that they were getting

paid a seven or eight dollar wage, and I

thought that was substandard. Concerning our

contract, we should pay them at least $12.49

plus health and welfare and pension.

143

listers home. They keep the people with a lesser monetary value as

far as having to pay them, and our people get screwed out of their

money." (Ex. 203 at 25-26) On the CES show, Local 631 steward

Ortega observed United employees whom he described as "about 200,

250 Hispanic people pushing in freight." (Ex. 204 at 8) Local 631

steward Shane Navara ("Navara") saw United employees performing

Teamster work on the CES show. (Ex. 205 at 15, 23) According to

Navara, he heard that the United employees "were owned by a person

from Chicago named Mike Hogan, I believe." (Ex. 205 at 15)

On January 9, 2001, steward Robertson filed a grievance

against GES for using 150 United employees to perform Teamster work

on the CES show. (Ex. 153) This grievance stated that there were

members of other unions available to be dispatched from Local 631.

(Ex. 153)207 As of March 29, 2001, no first step meeting had been

held concerning this grievance as required by the contract. (Ex. 2

at 228-29)

Although there was a pattern of GES using United

employees, who were not paid red book contract wages, to perform

Teamster bargaining unit work thus sabotaging the red book

contract, in a position harmful to the Local and favorable to

(Ex. 203 at 27)

________________

207 Local 631 steward Stephen Geiger testified that, "we

usually try to hire from unions around when we have a shortage."

(Ex. 155 at 9) According to Geiger, on the CES show there were

some members of .other unions working as Teamsters after being

dispatched from Local 631. (Ex. 155 at 10-11)

144

United, neither business agent Benboe nor Trustee Jacobson followed

the contract schedule for pursuing these grievances. They claimed

to consider the grievances concerning this issue to be no more

important than other smaller, individualized grievance against GES.

(Ex. 149 at 63-64; Ex. 1 at 161-62, 185) 208 In contrast to their

position, the Local 631 members knew the significance of GES using

United employees to perform Teamster work. (Ex. 149 at 60-64)

Trustee Jacobson justified his steady inaction by

asserting complete equality among grievances. He contended, " . .

. There is no high priority grievance in this Local. We have

termination cases that take precedence, we have suspension cases

that take precedence. We have lost pay. Just issues that need to

be handled." (Ex. 1 at 161-62)209 The explanation Jacobson

______________

208Zoa Benboe testified that grievances in which individual

members were named took priority over the grievances filed against

GES for using United employees. (Ex. 149 at 63-64)

209 During his March 2001 sworn examination, Jacobson was

asked the following question and provided the following response:

Q: Was that issue something that was of particular concern

to the union since it was a repeated situation where GES

was using non-union people at substandard wages to do

Teamster work?

A: It's an issue that we will continue to file with the

employer if they continue to use them and they don't get

paid in accordance with the contract. It's no different

than any other issue of improper pay or illegal holdover

of -- contract violations. They're all contract

violations. They're issues. They're economic issues.

(Ex. 1 at 185)

145

proffered appears to be meaningless on the facts. During the six

month period from August 1, 2000 through February 13, 2001, it

appears that Local 631 filed five grievances against GES concerning

a termination. (Exs. 248-251) It appears that Local 631 filed only

one grievance against GES concerning a suspension during this

period. (Exs. 212, 248-251) Indeed, Jacobson's inaction on the

grievances is in marked contrast to the speed in which he acted

when he believed Hogan family interests were involved, as discussed

below. It also was contrary to one of the explicit reasons Hoffa

pronounced for putting the Local in Trusteeship.

V. Passo Caused Trustee Wilkerson to be Terminated

Passo caused Trustee Wilkerson to be terminated on

November 6, 2000. (Ex. 12 at 151-52; Ex. 20 at 242-43; Ex. 78 at

57) Passo was the only person to recommend that Wilkerson be

terminated. (Ex. 12 at 152; Ex. 78 at 57-59) Scalf and Hoffa did

nothing to investigate Passo's allegations about Wilkerson. (Ex. 12

at 131-32; Ex. 78 at 57-61) As discussed above, prior to his

termination, Wilkerson had alerted Scalf about Passo's substandard

agreement with Simon's company. (Ex. 12 at 101-02)

According to Passo, he recommended that Wilkerson be

terminated because he "was getting political." (Ex. 20 at 242)

Passo told Scalf that Wilkerson should be terminated for the

following reasons: Wilkerson purchased vehicles for the Local

without prior IBT approval: Wilkerson ended the practice of

146

providing free soda at membership meetings and installed a soda

machine at the Local.210 Wilkerson planned to run for Local 631

office; Wilkerson planned to dedicate the Local union hall to a

former Local 631 officer without the IBT's permission; Wilkerson

planned to build a warehouse on an empty lot the Local owned and

Wilkerson generally did not stay in contact with the IBT and Hoffa.
(Ex. 12 at 84-85, 127, 130; Ex. 20 at 242-243)

Hoffa testified, "I had a feeling that Mr. Wilkerson was

trying to take over the Local for himself." (Ex. 78 at 57) Hoffa

also testified that Wilkerson "was an older man" and he thought

someone from the Local's rank and file should run for office. (Ex.

78 at 57)211 However, in other Locals that General President Hoffa

placed into Trusteeship, the IBT granted individuals hired during

the Trusteeship a waiver of the IBT Constitutional requirement that

___________________

210 According to Scalf,

. . . They always gave pop and soda and things

like that, they had cases in the building that

they always gave to the membership. He took

all that out of there which Dane didn't like,

he thought the members were entitled to that.

(Ex. 12 at 129-30) Apparently, the soda was given greater weight

by Scalf than Wilkerson's resistance to Passo pressing the

concession-laden agreement for Simon that Wilkerson had put Scalf

on notice of.

211 When asked if there was a problem with a Trustee running

for office, Scalf responded: "Well, if it was a Trustee inside that

Local that had belonged to the Local, I wouldn't think so. But you

bring someone in from outside, you'd like to see the membership of

the Local run the Local." (Ex. 12 at 128)

147

a candidate for Local office must be a member in good standing of

the Local for 24 consecutive months. (Ex. 12 at 128-29)212 For

example, in Local 815, which the IBT placed in Trusteeship in

December 1999, the IBT granted a dues waiver to George Miranda, who

had been the office manager at Joint Council 16 and a member of

Local 868. (Exs. 253, 255; Ex. 254 at 3-5) Miranda is now the

principal officer of Local 815. (Ex. 12 at 128-29; Ex. 255)

Although Scalf testified that Passo told him that Local

631's cars were in "fine shape," Scalf did not know how Passo knew

that. (Ex. 12 at 131-32) In contrast to Passo's opinion, business

agent Benboe testified that the Local "absolutely" needed new cars.

(Ex. 2 at 106-07) For example, Benboe testified that the car

business agent Whitfield drove broke down frequently. (Ex. 2 at

106-07)213 In fact, as explained below, the cars all had

considerable mileage on them. Scalf, however, did not seek to

learn the facts.

____________________

212 Article II, Section 4(h) of the IBT Constitution provides:

[t)he General Executive Board, upon good cause

shown, may waive any or all of the eligibility

requirements of this Section 4 in connection

with an election being conducted in a Trusteed

Local Union as a preliminary step to the

release of. the Local Union from Trusteeship

pursuant to the provisions of Article VI,

Section 5(i).

(Ex. 252)

213 One time her brakes did not work and another time the

power steering on the car she drove broke. (Ex. 2 at 106-07)

148

Wilkerson purchased eight automobiles for Local 631 as

follows: three In May 2000; one June, one In July, two ,in August

and one on September 1, 2000. (Ex. 150) The mileage and year for

four of the cars Wilkerson replaced in 2000 were as follows:

128,117 miles on a 1994 Ford Crown Victoria; 120,242 miles on a

1996 Ford F-150; 93,234 miles on a 1995 Chevrolet Pickup and 84,063

miles on a 1995 Chevrolet Silverado. (Ex. 150)214 Hoffa claimed

that one of the reasons Wilkerson was removed was that he purchased

the cars outright for a total of $194,000 instead of taking car

loans or leasing the cars. (Ex. 78 at 50) However, the Local had

sufficient assets to pay for the cars. (Ex. 256)215

Moreover, lending an even increased air that Passo's

explanations to Scalf were pretextual is that Wilkerson purchased

the cars months before the decision was made to terminate him. (Ex.

150)216 That this was a make-weight argument for his removal was

____________

214 The other four cars Wilkerson replaced were as follows: a

1995 Ford F-150, a 1993 Mercury Sable, a 1995 Ford Crown Victoria

and a 1994 Ford Crown Victoria. (Ex. 150)

215 According to Hoffa, "[i]ts not a good idea to pay cash out

of a local. He paid cash for these cars." (Ex. 78 at 50) During

the period in which Wilkerson purchased the cars, Local 631 had

between $685,008 and $774,861 in the bank. (Ex. 256)

216 Indeed, the General President himself adopted similar

reasoning in his March 21, 2001 decision dismissing the charges

Murphy filed against F. Christian. (Ex. 195) In his decision

adopting the hearing panel's recommendation, Hoffa stated,

[t)he panel found that although Brother

Christian was not without blame for his action

on June 9, 1999, neither Brother Murphy nor

149

underscored by Passo being at the Local during this time period,

capable of reporting any problem with the purchase of the vehicles

to Scalf immediately. Although Scalf claimed that Wilkerson was

told that he must obtain approval for purchasing the vehicles (Ex.

12 at 131), the IBT had no record of informing Wilkerson of such an

obligation. (Ex. 257) In addition, the IBT did not have a manual

for Trustees setting forth their duties. (Ex. 12 at 43) The

Local's omnipresent monitor Passo did nothing about it in a timely

fashion and, as was consistently the case, suffered no

consequences.

The only correspondence with Wilkerson the IBT provided

concerning his activities was a November 1, 2000 letter to

Wilkerson stating that he should not dedicate the union hall to a

former officer. (Ex. 258) Indeed, again adding to the air of

pretext for his removal, this letter was written after the decision

was made to terminate Wilkerson. The day before, on October 31,

2000, Scalf had already asked Jacobson if he would replace

Wilkerson. (Ex. 92 at 12) On October 31, 2000, Scalf contacted

Jacobson, the Secretary-Treasurer of Local 252 in Centralia, WA, an

Dispatcher Breymann intervened, as one would

expect if they felt these actions were truly

improper. The panel also found it highly

suspicious that Brother Murphy waited until

September to discharge Brother Christian for

an offense that occurred on June 9.

(Ex. 195)

150

IBT Representative in the Building Trades Division and the Director

of Building Trades for the Western Region, and asked him to report

to Las Vegas to replace Wilkerson as. Local 631 Trustee. (Ex. 92 at

12)

With respect to the claim that Wilkerson did not

communicate with the IBT, Scalf himself acknowledged that Wilkerson

contacted the IBT when he testified that, "it seemed like every

time that Jim called, it was about Dane interfering." (Ex. 12 at

134) Scalf also acknowledged that Wilkerson alerted him about

Passo's substandard agreement with Simon's company, which alarm

Scalf ignored. (Ex. 12 at 101-02) Given this and other facts, it

also appears that the claim regarding Wilkerson's reported lack of

communication may have been pretextual. Despite being Hoffa's

point man, Passo never disclosed to Hoffa his manoeuvering with

Simon and Hogan even after the lunch Hoffa had with the three of

them. (Ex. 78 at 29) Passo never told Scalf or Hoffa of his and

Hogan's meeting with a Local 631 employer, without the Trustee or

any Local employee. (Ex. 20 at 199, 204, 272-74) Indeed, according

to Hoffa's and Scalf's testimony, Passo concealed from them his

activities with Simon and Hogan to sabotage the red book agreement

covering over 1,400 members in the Las Vegas trade show and

convention industries. (Ex. 78 at 29, 32; Ex. 12 at 98, 100, 111-

151

112)217 Wilkerson alerted them. (Ex. 12 at 101) Passo remained

undisciplined and responsible for monitoring Local 631. This blind

allegiance to Passo, whose known misconduct dwarfed the allegations

against Wilkerson, undercuts Hoffa's and Scalf's claims that

Wilkerson's alleged lack of reporting caused his removal.

When Wilkerson was terminated, Scalf traveled to Las

Vegas to oversee his replacement. (Ex. 12 at 153) Passo returned

to Las Vegas the day before Wilkerson was terminated. (Exs. 134-

35)`218 While in Las Vegas, Scalf met with Passo, Jacobson,

Santangelo and the Local's attorneys. (Exs. 134-35) Passo's crony

Locascio, the former Local 714 member who had no Local position but

was interested in running for Local office and whose relatives were

Hogan's neighbors, also attended this meeting. (Ex. 12 at 153; Exs.

134-35; Ex. 21 at 322) Santangelo acknowledged that he did not

know why Locascio was present at this meeting. (Ex. 32 at 39-40)219

_______________

217 For example, in his conversations with Scalf, Passo

falsely claimed that his agreement with Simon called for hourly

wages between 75 cents and one dollar less than the red book

agreement. (Ex. 12 at 111-112) As detailed below, Passo's

arrangement was at least $2.49 per hour less than the red book

agreement for wages alone. Moreover, Passo did not tell Scalf

about the most favored nations clause in the red book contract or

that, under his agreement, benefit fund contributions would not

immediately be made on behalf of the United employees. (Ex. 12 at

100, 112)

218 Passo left Las Vegas on October 26, 2000 and returned on

November 5, 2000. (Exs. 132-35)

219 Former Local 714 member Locascio testified that he

complained to Scalf about the way Wilkerson ran the Local and told

Scalf that the Local needed a Trustee that would "bring the

152-

W. Trustee Jacobson's Conduct

On November 6, 2000, Jacobson became Trustee of Local

631. (Ex. 92 at 9; Ex. 148) Jacobson was not told why Wilkerson

had been removed as Trustee. (Ex. 92 at 14-15)220 Although Jacobson

was- appointed after Stier, from the IBT's RISE program, told

Santangelo, Hoffa and Scalf that Teamsters should not have contact

with Simon, when Jacobson became Trustee no one mentioned Simon or

the company United to him. (Ex. 92 at 17; Ex. 12 at 114-16, 126;

Ex. 78 at 75-76; Ex. 32 at 44-45) Scalf knew of Simon's

involvement with Local 631 because Passo introduced him to Simon at

the Indigo Lounge in Las Vegas while Passo was trying to arrange an

agreement with Local 631 on behalf of Simon's company. (Ex. 12 at

94-97)221 He had also instructed Passo not to stay involved with

Simon. (Ex. 12 at 114)

1. Jacobson's Ex Parte Meeting with Michael Hogan

in Connection with the Super Show

To provide a screen for Simon and Passo, Michael Hogan

reappeared as United's advocate. On or about December 18, 2000,

Jacobson met with Michael Hogan, the CEO of Show Biz USA, the

_________________

membership together." (Ex. 147 at 63-67)

220 Jacobson testified that he was told that Hoffa and

Wilkerson had "philosophical differences." (Ex. 92 at 14)

221 Scalf recalled he might have told Simon at the Indigo

Lounge to agree to a "good contract." (Ex. 12 at 96)

153

general contractor for the Super Show in Las Vegas. (Ex. 6 at 213;

Ex. 92 at 61; Ex. 149 at 37-38)222 Jacobson excluded the trade show

business agents from this meeting. (Ex. 92 at 60-61)223 Jacobson

explained he attended the meeting alone because that was what the

employer wanted. (Ex. 92 at 61, 65) Michael Hardy from Show Biz

USA asked him to go to the meeting by himself to "get to know the

employer and to also talk about the Super Show." (Ex. 92 at 61,

65)224 Only Jacobson came alone; Michael Hogan was present with

others on behalf of Show Biz. Later that same day, another meeting

was held at which Jacobson permitted the trade show business agents
to attend. (Ex. 92 at 62-64)

In January 2001, Michael Hogan sent Jacobson a letter

memorializing an arrangement Jacobson had agreed to at the private

meeting:

Per our conversation when we met in Las Vegas,

so that I have a clear understanding of what I

________________

222 Local 631 members worked on the Super Show from

approximately January 15 through January 26, 2001. (Ex. 259)

223 Jacobson testified that at the meeting Michael Hogan

stated that he was from a union family and wanted to work with the

Local. (Ex. 92 at 62-64) However, Michael Hogan's company, Show

Biz USA, was not a signatory to the red book agreement. (Ex. 92 at

64) Rather, Show Biz USA's workers on the Super Show were paid

through payroll companies Empioyco, Expo Group and Union Payroll,

which were signatories to the red book agreement. (Ex. 6 at 222;

Ex. 155 at 19; Ex. 147 at 42-43; Ex. 188; Ex. 92 at 60, 64)

224 Michael Hardy had been Local 714's chief steward at

McCormick Place in Chicago prior to Local 714 being placed in

Trusteeship. (Ex. 174 at 11-12) He was then employed at Show Biz

USA. (Ex. 260)

154

can and cannot do. I would like to confirm

with you that on the break of the show, if

Teamsters Local 631 cannot supply me with the

total amount of manpower needed for the

empties, I will be able to supplement the

workforce with a labor service, namely United

Temporaries . . . .

I would need to do this so that I could

fulfill my contractual agreement with The

Super Show. Kindly respond to this letter as

soon as possible so that I know that I am

covered. I will probably be needing somewhere

between two hundred (200) to three hundred

(300) men and women to complete the task. . .

(Ex. 154) Jacobson testified,

I remember receiving a fax from Show Biz USA

addressed to me indicating that they had -- if

they could not fill the call, that they could

hire whomever they wanted. I took that fax to

Roberta [Whitfield] and to Chuck [Benboe], and

I said, 'This is what we agreed to," and I

handed the fax to them.

(Ex. 92 at 72)

The use of United employees on the Super Show was not

discussed at the meeting Jacobson permitted the business agents to

attend. (Ex. 149 at 38-40; Ex. 6 at 213-229) This obviously was an

arrangement reached when Jacobson was closeted with Michael Hogan

apart from the other Local 631 representatives. Jacobson never

wrote back to Hogan disagreeing with Hogan's characterization of

his arrangement with Jacobson. (Ex. 92 at 75-76; Ex. 1 at 175-76)

He never communicated his disagreement with Michael Hogan's summary

in any way to Show Biz USA. He let Hogan's representation stand

unchallenged. Indeed, after first denying the existence of any

155

such letter in a letter to the IRB (Ex. 298), when confronted with

it during his sworn examination, Jacobson admitted that he had

reached this agreement with Michael Hogan. (Ex. 1 at 72) Jacobson

knew of Michael Hogan's family relationship with Hogan. (Ex. 92 at

63) This arrangement Jacobson reached with Michael Hogan provided

a strong explanation as to why Jacobson allowed the GES grievances

concerning United to go unpressed. As detailed below, GES

representatives went to Chicago to meet William Hogan about these

grievances.

Indeed, Jacobson was strikingly eager not to run afoul of

the Hogan family's influence at Local 631. For example, in

December 2000, Jacobson called Passo to ask him if former Local 631

steward Bob Hill had ties to the Hogan family as Hill had stated,

a point absolutely irrelevant to running the Local. (Ex. 92 at 36-

37)225 When asked why he wanted to know if Hill had ties to the

Hogan family, Jacobson testified,

Well, because I'm trying to find a way to

trust the membership because I am new in town

and a lot of them trusted Wilkerson. And

sometimes its difficult to establish a

relationship. You need to know if they're

honest with you or not. I was just trying to

do a verification.

(Ex. 92 at 36-37) The proffered explanation was nonsensical

______________.

225 During the Super Show, Hill leased warehouse space to

Michael Hogan's company, Show Biz USA. (Ex. 291 at 9-10)

156

2. Selection of Stewards on the Super Show

After this ex parte meeting with Michael Hogan and the

other Show Biz representatives, contrary to Local precedent,

Jacobson became involved in selecting the stewards on the Super

Show, for which Michael Hogan's company, Show Biz USA, was the

general contractor. (Ex. 92 at 45-47, 49-50) Locascio also was

involved in attempting to remove the steward who had filed three

previous grievances against GES for using United workers.

Locascio, who was not employed at Local 631, obtained from the

administrator of the Teamsters Local 631 Security Fund the number

of hours steward Robertson had worked in the convention industry.

(Ex. 147 at 94-96)226Locascio then informed Jacobson that

Robertson had worked more hours than any other steward and other

members should be used as stewards on this show. (Ex. 147 at 94)

After this conversation with Locascio, Jacobson told

business agent Whitfield that she was showing favoritism toward

Robertson and other members should be used as stewards. (Ex. 92 at

47-48) Robertson was an obvious target to attack to communicate to

stewards and business agents that the use of United employees

should go unchallenged. As discussed above, Robertson had filed at

least three grievances against GES for the use of United employees

____

226 Passo had solicited Local 631 members to make complaints

about Robertson. (Ex. 82 at 113-14) Assistant Trustee Frates

testified that he believed that Passo wanted Robertson removed

because Passo could not control Robertson. (Ex. 82 at 113-14)

157
on the MAGIC show in August 2000, the SEMA show in November 2000

and the CES show in January 2001. (Exs. 151-53)

Jacobson requested Locascio to recommend stewards on the

Super Show. (Ex. 92 at 45-48)`2' Since Passo left Las Vegas on

November 19, 2000, he and Locascio remained in frequent contact.

(Ex. 147 at 29-30)228

Jacobson acknowledged that, for the first in any instance

since he became Trustee, he was involved in choosing the stewards

_______________

227 In order to obtain work for himself on the Super Show,

former Local 714 member Locascio called Hogan in Chicago. (Ex. 147

at 39-40) According to Hogan, Passo may have given him a message

about Locascio seeking work on the Super Show. (Ex. 15 at 129)

Hogan testified that he told Locascio to speak to his brother,

Michael Hogan. (Ex. 15 at 129) Locascio called Michael Hogan and

told him that he had been a member of Local 714. (Ex. 147 at 38-41)

Locascio also told Michael Hogan,

. . . that I was an A list conventioneer with

call by name rights. And if he needs any

truck drivers or he needs me to run a door or

he needs me to do anything for the company, I

would be more than happy to come to work for

him.

(Ex. 147 at 40)

228 Locascio testified, "I talk to Dane almost every day.

We're friends." (Ex. 147 at 29) Locascio testified that he usually

called Passo. (Ex. 147 at 147) However, between November 19, 2000

when Passo left Las Vegas and February 25, 2001, the last date for

which Passo's IBT telephone records were obtained, there were 22

calls from Passo's cellular telephone to Locascio's telephone.

(Exs. 51-52, 225, 282-84) In addition, when Locascio traveled to

Chicago over Thanksgiving, he met with Passo two or three times.

(Ex. 147 at 29) Passo also called Locascio on Christmas day and

spoke for thirty-four minutes. (Ex. 52, 225) Hogan's son, Robert,

the principal officer of Local 714, saw Locascio over the Christmas

holidays when Locascio visited his cousin who lived across the

street from William Hogan. (Ex. 86 at 30-31)

158

for the Super Show. (Ex. 92 at 46)229 According to Jacobson,

although he was "not happy" about the selection, he allowed

business agent Whitfield to appoint Robertson a steward. (Ex. 92 at

46-47) In addition to Robertson, the other stewards were Stephen

"Skip" Geiger ("Geiger"), who was appointed the number one steward,
Navara and Doug Manning ("Manning"). (Ex. 92 at 47; Ex. 155 at 6)

In addition to selecting the stewards for the Super Show,

Jacobson, who had reached an arrangement with Michael Hogan

granting him permission to use United, instructed the stewards that

they should try not to file grievances concerning the show. (Ex.

205 at 32-33; Ex. 156 at 52-53; Ex. 247 at 7-8)230 From the

combination of his actions, it appears that Jacobson was attempting

to ensure the use of the United employees would go unchallenged.

Locascio arranged for Geiger, the number one steward on

the Super Show, to speak to Passo on the telephone. (Ex. 20 at 247-

50; Ex. 155 at 15-17; Ex. 147 at 88-90) According to Passo,

Locascio had told him that Geiger was going to be one of the

stewards on the Super Show. (Ex. 20 at 247-50) Passo testified

that while he and Locascio, who was in the Local 631 office, were

____________________

229 According to Jacobson, in addition to Locascio, he also

asked other members who they recommended to be steward. (Ex. 92 at

48-49)

230 Robertson testified that Jacobson repeatedly told the

stewards that "good stewards don't write paper. Good stewards

handle things . . .." (Ex. 156 52-53) Among stewards in the trade

show industry in Las Vegas to "write paper" refers to writing

grievances. (Ex. 6 at 46)

159

on the telephone, Geiger was also in the Local's offices. (Ex. 20

at 247-50) Passo testified that Geiger talked to him about the

Super Show. (Ex. 20 at 249-50)231

Jacobson told Robertson that "the Hogans" did not want

him to be a steward on the Super Show. (Ex. 156 at 70, 80-81, 83)

Robertson testified that shortly before the Super Show began, he

received a call on his home telephone which he described as

follows:

. . . And the voice was really deep, and the

voice said, "You should leave town. You

should remove yourself from this union. In

one week there will be some people coming

here." It is amazing that one week was that's

when the Super Show would start.

And he said he had some pretty mean friends.

And "if I were you, basically, I'd be careful.

I'd leave."

(Ex. 156 at 70)

Manning, another steward on the Super Show, also received

"a little funny phone call . . .." (Ex. 247 at 27) According to

Manning, he received a call immediately before the Super Show and

was told "to watch who I made my stand with." (Ex. 247 at 28)

Manning testified that, "I had a feeling it was somebody playing

around because I believe my only place to take a stand would be on

the show floor." (Ex. 247 at 28)

In addition, on or about January 17, 2001, during the

231 Geiger testified that he and Passo spoke about "how things

were going out here" and the weather. (Ex. 155 at 15-17)

160

Super Show, two men went to Local 631 member Hernandez's home and

told her that she should not speak to the IRB. (Ex. 216) As

discussed above, Hernandez had tried to persuade the United

employees to register with the Local 631 dispatch office. (Ex. 83

at 10)

Despite Jacobson's efforts, the Local 631 field employees

and stewards would not ignore Michael Hogan's attempt to use United

employees in violation of the red book agreement. On the Super

Show, Michael Hogan's company, Show Biz USA, tried to use United

employees to perform Teamster work. (Ex. 155 at 21; Ex. 90 at 35-

37; Ex. 156 at 41-42)232 According to stewards Geiger and

Robertson, vans with United employees appeared at the show site

during the Super Show. (Ex. 155 at 21; Ex. 156 at 41-42) According

to number one steward Geiger,

It was late in the afternoon. It was tear-

down, and a long van, we thought at first it

was a GES van, pulled, up, and a number of

people got out. Some were changing shirts.

We stopped them. Asked them who they were.

One of them gave themselves up as United Temp

Services. And we -- I don't know who made

contact with the company, but while I was out

there, I told them to get back on that van.

They are not working this show.

I recognized one of them. I had talked to him

before to try to get him to join the Teamsters

union.

____________

232 This was unsurprising given the letter Michael Hogan sent

to Jacobson expressing his intent to use United employees if Local

631 could not meet the call. (Ex. 154)

161-

They got back in the van. They left.

(Ex. 155 at 25-26) Business agent Whitfield also was involved in

preventing the United employees from performing Teamster work on

the Sdper Show. (Ex. 156 at 42)

3. Inaction on Grievances concerning the use of United

Employees

Local 631 members complained to Jacobson about the

inaction on the grievances against GES concerning United. (Ex. 205

at 24-25; Ex. 203 at 23; Ex. 156 at 49-51)233 During the IRB's

books and records examination at the Local between November 27 and

December 1, 2000, the Local was requested to provide, among other

things, copies of grievances filed against GES for the use of

United employees. (Ex. 294) During their January 2001 sworn

examinations, Trustee Jacobson and business agent Benboe were

questioned about the status of the grievances filed against GES for

using United employees. (Ex. 92 at 93-95; Ex. 2 at 212-228) In

addition, on February 13, 2001, Local 631 was asked to provide

records concerning grievances filed against GES. (Ex. 248)

Subsequently, on March 21, 2001, Jacobson, business

agents Benboe and Whitfield, two stewards from the GES warehouses

___________________

233 For example, during a membership meeting, Navara asked

Jacobson about the status of the grievances filed against GES for

using United employees. (Ex. 205 at 24-25) According to Navara,

Jacobson told him that such issues should be raised at a craft

meeting. (Ex. 205 at 25-26)

162

and International Representative Ron Schwab, whom the IBT had

appointed to assist Local 631 in the 2001 trade show contract

negotiations, met with GES management representatives. (Ex. 1 at

157-66; Ex. 2 at 229-230; Ex. 169 at 22-26; Ex. 261 at 18-19, 42)

Local 631 business agent Incandella, whom Wilkerson hired at

Passo's insistence and who had regular contact with Passo, also

attended the March 21, 2001 meeting with GES after he asked

Jacobson permission to attend as an "observer." (Ex. 1 at 157-58;

Ex. 2 at 230)234 Incandella had no role in the convention industry.

Prior to this meeting, in January 2001, the same week as

Jacobson's first sworn examination, GES consulted with Hogan in

Chicago without any Local 631 representative present about these

grievances. (Ex. 15 at 123-131) Hogan never alerted anyone at

Local 631 about these discussions. (Ex. 15 at 125-27; Ex. 1 at 186-

87) Two days before the March 21, 2001 meeting with GES in Las

Vegas, Passo and Scalf met with Jacobson at Local 631. (Ex. 1 at

133-34)

During the March 21, 2001 meeting with the GES

representatives, the outstanding grievances filed against GES for

using United employees were discussed. (Ex. 2 at 229-230; Ex. 1 at

_____________
234 During his January 2001 sworn examination, Incandella; who

has known Passo for more than fifteen years, testified that he

regularly spoke to Passo on the telephone. (Ex. 228 at 18) Between

September 2, 2000 and February 25, 2001 there were nineteen calls

from Passo's cellular telephone to Incandella. (Exs. 49-52, 60,

231, 282-84)

163

161-64) In addition, the upcoming contract negotiations for the

red book agreement were also discussed. (Ex. 2 at 229-230; Ex. 1 at

165-66) According to Benboe, it was agreed that a four man panel

would be scheduled for the grievances Local 631 filed in September

2000 concerning the use of the United employees on the MAGIC show.

(Ex. 2 at 219-220) According to Local records, however, it had

already been decided on December 7, 2000, more than three months

earlier, that these grievances would be heard at a four man panel.

(Ex. 262) Pursuant to the red book agreement, a four man panel was

to have been held within thirty days of the request to hold such a

hearing. (Ex. 4 at 20) 235 As of March 29, 2001, no date had been

set for the four man panel hearings. (Ex. 2 at 219-229)

X. William Hogan's Continued Involvement with Local 631

1. Hogan Met with a Representative of Trade Show

Contractor Freeman
As discussed above, Hogan had no IBT assignment in Las

Vegas. (Ex. 12 at 60) Nevertheless, sometime after Local 631 was

placed in Trusteeship, Hogan met with Barry Rappaport

("Rappaport"), who was the head of Freeman's operations in Las

Vegas. (Ex. 15 at 52; Ex. 20 at 201)236 According to Hogan,

Rappaport informed him that he had concerns about the Local 631

____________

235 Benboe attempted to excuse the Local's passive acceptance

of the delay by blaming it upon frequent personnel changes at GES

in Las Vegas. (Ex. 2 at 127, 129, 154, 219)

236 Hogan testified that he held this meeting at the request

of the Freeman representatives. (Ex. 15 at 52-53, 120)

164

Trusteeship. (Ex. 15 at 52-53) No Local 631 representative was

present. (Ex. 15 at 55)

Hogan asked Passo to attend a breakfast meeting in Las

Vegas with Rappaport. (Ex. 15 at 55-56) Passo, Hogan and Rappaport

discussed the proposed arrangement with Simon's company. (Ex. 20 at

203-04) Passo admitted to Rappaport that he had acceded to Simon's

request that the United employees be paid less than the red book

contract required. (Ex. 20 at 203-04) According to Passo,

Rappaport, an employer, then explained to Passo that the

concessions were a bad idea because the contract negotiations for

the red book agreement were coming up in 2001 and Passo's proposed

arrangement would undermine the Local's bargaining position. (Ex.

20 at 203-04; Ex. 21 at 273)

Business agent Whitfield testified that in approximately

May or June 2000, Freeman management representative Dick Jamison

informed her that Passo had spoken to him about using employees of

Simon's company. (Ex. 6 at 195-97) Passo never told the Trustee,

Assistant Trustee or convention industry business agents about

these discussions. Whitfield recalled:

When Dane went over to talk to him [Dick

Jamison] and ask him about Rick Simon's

company, Dick Jamison called me on the phone

and was adamantly pissed off.

He did not want those people in that industry,

does not want anything to do with them. And

he chewed my butt about it- because he wanted

to know what Dane was over there doing and why

he was asking.

165

He [Jamison] was a little annoyed with the

fact that Dane had went to his office without

either one of us, you know, and spoke to him

about having an extra labor pool like this to

pull from Rick Simon's company.

(Ex. 6 at 196-98)

Hogan was not concerned with any impact the arrangement

for Simon would have on IBT members or United employees. His

explanation was GES was Freeman's main competitor in Las Vegas and,

because GES had a relationship with Simon's company, Freeman did

not want to use Simon's employees. (Ex. 15 at 51-55) He did not

explain, whatever the motivation, why Freeman's frank admission

that Passo and Hogan were damaging the Local's bargaining position

was wrong.

Scalf, who supervised Passo and Hogan, asserted that

neither Hogan nor Passo ever told him that they had met with a

representative of Local 631 employer Freeman in Las Vegas. (Ex. 12

at 145-146)237 Nevertheless, despite never reporting to Hoffa

meetings with Local 631 employers without the Trustee present or

reporting such meetings to the Trustee, Passo remained as Hoffa's

and Scalf's monitor of Local 631.238

______________

237 Indeed, Scalf testified that he never heard of Freeman.

(Ex. 12 at 145-46)

238 Indeed, Passo and Scalf visited Local 631 together on

March 19, 2001. (Ex. 1 at 140-41)

166

2. GES Representatives Traveled to Chicago to

Meet with Hogan

' During his February 7, 2001 sworn examination, Hogan

testified that he met in Chicago with GES representatives from Las

Vegas during the week of January 29, 2001. (Ex. 15 at 125-27)239

According to Hogan, the GES representatives requested this meeting.

(Ex. 15 at 125) Hogan had no official role in Local 631. (Ex. 12

at 59-60) Thomas Acker, then the GES Labor Coordinator from Las

Vegas, and Pete Carroll, the regional representative for GES in

Chicago, conferred with Hogan and his son, Robert Hogan, the

principal officer of Local 714, at a restaurant in Chicago. (Ex. 15

at 125-27; Ex. 86 at 11-24)240 No one from Local 631 was present.

The GES representatives complained to Hogan about the

grievances Local 631 had filed concerning the use of United

employees. (Ex. 15 at 126; Ex. 86 at 11-18) Hogan's brother was

Vice President of United. (Ex. 18) Acker told the Hogans that GES

used the United employees because Local 631 was unable to provide

workers. (Ex. 15 at 126; Ex. 86 at 11-18) According to Hogan, the

GES representatives asked him what they should do about the

_____________

239 During his February 2, 2001 sworn examination, Passo

testified that approximately one week before his sworn examination,

he had discussed with Locascio the grievances Local 631 filed

against GES concerning the use of United employees. (Ex. 20 at 192;

Ex. 21 at 277) This appears to have been shortly before the GES

representatives met with Hogan.

240 Acker was reportedly terminated from GES sometime after

this meeting. (Ex. 86 at 15; Ex. 2 at 127-29)

167

grievances and the Local's reported inability to supply workers.

Hogan claimed he told them, "I don't have a clue. You figure that

out on your own." (Ex. 1 5 at 12 6) Hogan did not tell the Local

Trustee about this meeting. (Ex. i5 at 125-27; Ex. 1 at 186-87)

This was not the only Local 631 business GES consulted

Hogan on. The upcoming red book contract negotiations were also

discussed during this lunch meeting in Chicago. (Ex. 86 at 11-18)

Hogan had no involvement with those negotiations. Hogan described

this meeting as follows:

the general discussion I had with this guy is

they got a contract coming up in May, and they

are a nervous wreck because they don't think

anybody there -- Ed Jacobson, from what I

understand, is a construction guy, and they

know that, and they feel that labor people

with trade show experience should be involved.

So he is coming to me looking for direction:

"Who can we talk to? Who do we deal with out

there?"

So I have a call out for Carlow to explain

what their concern is, and then it's up to the

International. And at one point Jacobson, I

was told, was looking for me to help him too.

But I understand the industry, and I may get

asked to go out and assist in negotiations. I

know the contractors like that, because they

know I know what I'm doing and I know the

industry.

(Ex. 15 at 127-128)

As with his meeting in Las Vegas with the Freeman

representative, Hogan never told Scalf, his supervisor at the IBT,

168

about this meeting with GES representatives from Las Vegas. (Ex. 15

at 127; Ex. 12 at 47, 143-44)241 Nor did he tell anyone at Local

631, the concerned Local. (Ex. 15 at 125-27; Ex. 1 at 186-87) He

did, however, request Hoffa and Scalf to place him on the

negotiating team for Local 631's contract. (Ex. 78 at 98-99; Ex. 12

at 195-96)
3. Hogan Sought to Negotiate Local 631's 2001 Red

Book Contract

Since member action prevented United from being used at

the Super Show in January despite the arrangement Michael Hogan had

reached with Jacobson, a new tack was needed for the schemes. In

approximately March 2001, while General President Hoffa and Scalf

were in Chicago, Hogan requested them to allow him to negotiate the

collective bargaining agreement with the trade show contractors in

Las Vegas. (Ex. 78 at 98-99) The red book agreement expires on May

31, 2001. (Ex. 4) According to Hoffa, Hogan "said that there could

be a strike there and that I know all of those people and that I

should negotiate the contract." (Ex. 78 at 98-99) General

President Hoffa told Hogan, "that's not a good idea." (Ex. 78 at

98-99) When asked why he thought Hogan's involvement in the

______________-

241 During his February 7, 2001 sworn examination, Hogan

claimed that he had tried to contact Scalf to tell him about this

meeting. (Ex. 15 at 127) However, during his March 2, 2001 sworn

examination, Scalf testified that he was not aware of Hogan meeting

with GES representatives from Las Vegas. (Ex. 12 at 143-45)

169

negotiations would not be appropriate, Hoffa responded, "just

because of the background of all the things that have happened with

the IRB, I didn't think it was a good idea for him to be

negotiating that contract." (Ex. 78 at 99)

According to Scalf, Hogan also asked him if he could

negotiate Local 631's contract with the trade show contractors.

(Ex. 12 at 144) Scalf told Hogan that he could not. (Ex. 12 at

144) Scalf testified that Hogan told him that, "[h]e just thought

they needed help and that he knew everybody in that industry and he

would be able to help them." (Ex. 12 at 144-145) Hogan did not

disclose to either Hoffa or Scalf his brother's role as both a

general contractor and an officer of United. (Ex. 78 at 30-31; Ex.

12 at 61-62, 97 )

Y. Passo Appears to Have Tried to Interfere with the IRB's

Investigation

It appears that Passo tried to interfere with the IRB's

investigation. Between Monday, January 29 and Wednesday, January

31, 2001, the sworn examinations of Local 631 employees and members

were conducted. Passo, who had not been in Las Vegas since

November 19, 2000, traveled to Las Vegas on January 29, 2001 at IBT

expense. (Ex. 20 at 53; Ex. 141) The IRB sent sworn examination

notices to Local 631 employees and members on January 12, 2001.

(Ex. 263) Passo's travel arrangements were made after the sworn

examination notices were sent to the Local 631 employees and

170

members. (Exs. 138-39; Ex. 12 at 200)142 Passo was in Las Vegas

between January 29 and January 30, 2001 allegedly in connection

with the IBT convention. (Ex. 20 at 51-54; Ex. 12 at 200-02)

Accordingly, Passo had no need to go to Local 631 or to meet with

its employees. Nevertheless, he went to Local 631's offices on

January 29, 2001, the day he arrived in Las Vegas and the date the

sworn examinations began. (Ex. 79 at 10, 30-34)

While in Las Vegas, Passo spoke individually to five

people, including Trustee Jacobson, business agent Incandella,

Local 631 organizer Isner, IBT Organizer Norm Bouley and Local 631

member Locascio before their sworn examinations. (Ex. 228 at 23-24;

Ex. 92 at 34; Ex. 147 at 29-30; Ex. 79 at 30-32; Ex. 20 at 54-55)293

On January 29, 2001, Passo had dinner with Locascio and Incandella.

(Ex. 147 at 29-30; Ex. 228 at 23-24) Locascio's and Incandella's

sworn examinations were conducted the next day, January 30, 2001.

(Exs. 147, 228) In addition, on the morning of Locascio's sworn

________________

142 According to IBT records, it appears that Passo's travel

arrangements were made on January 24, 2001. (Exs. 138-39)

143 The following calls were made from Passo's cellular

telephone on January 4, 2001 which was after Passo's sworn

examination notice was delivered: at 4:53 p.m. to Local 631 for 34

minutes; at 5:26 to Locascio for 8 minutes; at 5:34 to Local 631

for 8 minutes; at 5:41 to Locascio for 30 minutes; at 6:18 to Local

631 for 11 minutes and at 6:28 to Locascio for 7 minutes. (Exs. 282

and 299) Accordingly, it appears that in the approximately 103

minutes between the hours of 4:53 and 6:36 p.m. that day, Passo

spoke to Locascio for approximately 45 minutes and with an

individual or individuals at the Local for approximately 53

minutes. (Ex. 282)

171

examination, Locascio spoke to Passo by telephone. (Ex. 147 at 29-

30)244

In addition, Passo had lunch with Isner, Bouley and

Incandella at the Big Dogs Bar and Restaurant before their sworn

examinations. (Ex. 79 at 30-32; Ex. 20 at 57) Jacobson was also at

the restaurant for part of the lunch. (Ex. 92 at 34)

Z. Conditions at the Local after Passo's Involvement

It appears that Passo's actions at Local 631 exacerbated

the problems which were given as the reasons for the imposition of

the Trusteeship. For example, Passo advocated that the non-union

United employees should perform Teamster work at substandard wages

without being contested. (Ex. 20 at 87; Ex. 6 at 127-132) Passo

also advocated that the Local enter into a substandard agreement

with United when one of the reasons given for the Trusteeship was
that the Local " . . . has negotiated substandard agreements with

employers." (Ex. 14) Passo caused Assistant Trustee Frates and

Trustee Wilkerson, who opposed the use of the United employees and

the substandard agreement, to be terminated. Passo, as explained

above, took steps to make it more difficult for the Local to meet

the call and easier for contractors to use United to do Teamster

work.

Nepotism was described in Santangelo's January 2000

___________________

244 Locascio testified that he called Passo to wake him up.

(Ex. 147 at 29-30)

172

report to Hoffa as one of the grounds for placing the Local in

Trusteeship. (Ex. 3) Yet, Passo aided Hogan who was pushing a

substandard contract on behalf of a company with a history of labor

racketeering, that was a known labor leasing company and at which

Hogan's brother was an officer and whose owner was Hogan's friend.

(Ex. 15 at 148) The proposal Passo and Hogan were urging Local 631

officials to approve had no benefit to Local 631, its members or

any working person employed through United.

Moreover, although the inexperience of the Local's

business agents was one of the grounds given for the Trusteeship,
instead of having Local business agents attend the TLA, Passo

arranged for his crony, Locascio, who held no union position, to

attend the TLA for officers and business agents at Local expense .245

In addition, as detailed above, Passo instructed Trustee Wilkerson

to hire his friends, who were without appropriate experience, for

various positions at the Local. He would turn to Scalf to ensure

his demands were met. As detailed above, these individuals

included Incandella, who was hired as a business agent; Locascio,

who was hired to work on the IBT's 2000 GOTV efforts; and Billy

Cooper, who was hired as a Local organizer. None of these

individuals had previously been employed by any IBT entity other

than Cooper who had been a Local's janitor.

_________________

245 According to Trustee Jacobson, Locascio was not qualified

to be a business agent. (Ex. 1 at 153-54)

173

Furthermore, although the failure to process grievances

was one of the grounds for the Trusteeship, Local 631 still has a

backlog of grievances involving GES and United. For example, as

detailed above, despite GES's repeated use of the non-union United

employees, who were paid substandard wages, to perform Teamster

work, as of March 29, 2001, the grievances filed against GES

concerning United remained unpursued for beyond the time provided

for in the red book contract and remain unresolved. Passo, the

General President's monitor, did not ensure these grievances were

pursued.

That a business agent made an ethnic slur was another

reason Hoffa gave for imposing the Trusteeship. Yet, shortly after

Local 631 was placed in Trusteeship, Passo made an anti-Semitic

remark to Arthur Goldberg, the owner of Bally's Hotel, and was

thrown out of that hotel. (Ex. 78 at 74-75; Ex. 12 at 180-81) IBT

Local 995 represents the valet attendants at Bally's. (Ex. 264; Ex.

78 at 74-75)296 In addition, Passo slandered IBT International Vice

President Cammack. (Ex. 78 at 62-64; Ex. 12 at 171-74) Both of

these incidents were known to Hoffa.

___________________

246 Hoffa directed Passo to apologize to Goldberg. (Ex. 78 at

74-75)

174

V. ANALYSIS

A. Passo and Hogan Lacked Credibility

As detailed below, on significant issues central to their

efforts to get an agreement for Simon's company, Passo and Hogan

lacked credibility. For example, Passo repeatedly grossly

misrepresented the extent of his concessions to Simon. In

addition, Passo's and Hogan's attempts to explain their activities

in Las Vegas with Simon were not credible. Furthermore, Passo's

claimed lack of memory regarding notable incidents in his efforts

to obtain an agreement for United was not believable. Moreover,

given the close relationship between Hogan and Passo, the frequency

of their contact and Michael Hogan's presence in Las Vegas, Passo's

claim that he was unaware of Michael Hogan's involvement with

United was not credible.

As detailed below, the concessions Passo made to Simon

from the red book contract would have been detrimental to Local

631's members and to United's employees and would have undercut the

Local's bargaining position for the 2001 contract negotiations.

In an effort to minimize his concessions, Passo claimed that the

wage rate he approved for the United employees was "like $11 or

$12; $11 something an hour." (Ex. 20 at 86) Passo testified this

was between seventy-five cents and one dollar less than the red

book agreement required. (Ex. 20 at 81) Passo also minimized to

Scalf the concessions he made to Simon. (Ex. 12 at 100, 112) In

175

contrast to his claims, the late August 2000 handwritten

memorialization of Passo and Simon's arrangement reflected more

significant concessions to Simon. The base wages were $10.00 an

hour for an employee with less than 250 hours in the industry and

$11.00 per hour for an employee with more than 250 hours in the

industry. (Ex. 84) For employees with less than 150 hours in the
industry, this was $2.49 per hour less than the red book agreement

in wages alone. (Ex. 4 at 11) For employees with more than 250

hours in the industry, this was $2.69 per hour less than wages in

the red book contract. (Ex. 4 at 11) Furthermore, Passo's

agreement with Simon eliminated overtime pay for hours worked

between 10:00 p.m. and 6:00 a.m., hours United employees frequently

performed Teamster work. (Ex. 84; Ex. 6 at 236-37; Ex. 90 at 36)

As a result, unless they worked more than eight hours in a day or

more than 40 hours in a week, during the hours of 10:00 p.m. and

6:00 a.m., Simon's employees would be paid at least $9.53 less per

hour in wages alone than individuals dispatched from Local 631

under the existing contract. (Ex. 84; Ex. 4 at 13; Ex. 207)

In a further attempt to conceal his significant

concessions to Simon, Passo testified that, under his agreement,

United would begin to make benefit fund contributions on behalf of

its employees after such employees had worked fifty hours. (Ex. 20

176

at 81)247 In contrast, Passo's late August handwritten notes

reflected that Simon would not make benefit fund contributions

until his employees worked more than 250 hours, a benefit for Simon

five times greater than Passo asserted in his sworn examination.

(Ex. 84) Based upon this concession, even if Simon, whom Passo

would have allowed to control the dispatching of workers and which

agreement did not contain any seniority provisions, allowed any of

his employees to work more than 250 hours, Simon would have saved
more than $1,900 per employee by not making benefit fund

contributions until they had worked 250 hours.

Furthermore, in an attempt to justify his actions, Passo

inexplicably claimed he was willing to grant Simon concessions from

the red book agreement because it was a "first contract." (Ex. 20

at 204) Despite being a statement of fact, the phrase provided no

explanation as to why Passo was willing to sabotage the red book

agreement on Simon's behalf. This purported justification ignored

that there was an existing multi-employer contract. The "most

favored nations" clause in the red book agreement would have

brought all Teamsters down to the level of concessions made to

Simon. Trustee Wilkerson and Assistant Trustee Frates repeatedly

told Passo about this. (Ex. 4 at 32; Ex. 26 at 48; Ex. 82 at 54)

________

247 Passo also did not tell Scalf that under his agreement the

United employees would not have benefit fund contributions made on

their behalf immediately. (Ex. 12 at 100-01) Under the red book

contract, these benefit fund contributions, which amounted to $7.90

per hour, were paid from the first hour worked. (Ex. 4 at 26-27)

177

Notably, when he described for Scalf his arrangement with United,

Passo did not tell him about the most favored nations clause in the

red book agreement. (Ex. 12 at 112)

As detailed above, when asked about the most favored

nations clause, Passo claimed he did not understand it. (Ex. 20 at

158-59) The concept is obvious and common. If Passo truly was

incapable of understanding it, he should have recognized he was

incompetent to negotiate the contract. Indeed, the late August

memorialization of the Passo-Simon arrangement with the deletion of

the subcontracting clause from the red book agreement established

exactly what Passo was about: working a deal with employers that

sold out the workers.

Furthermore, to try to legitimatize William Hogan's

presence at the Local 631 offices and at the Las Vegas Convention

Center in early March 2000 prior to the imposition of the

Trusteeship, at a time when Hogan had no International position and

no assignment regarding Local 631, Passo claimed, "I'm a younger

guy in Chicago and I looked up to him for his experience in the

labor movement." (Ex. 21 at 263)248 This, however, provided no

___________

248 Passo testified as follows:

Q: Why did you ask him [Hogan) to come over [to Local 631]?

A: Probably because I was new at this.

Q: And was Mr. Santangelo going to be going with you?

A: Yes.

178

explanation for the intimate involvement of the conflicted Hogan in

the United discussions. Hogan's brother was an officer of the

company. Hogan's son took a gift from Simon during the

negotiations. Hogan bypassed the Trustee and Assistant Trustee,

involving Passo in meetings with Freeman, a convention industry

employer, from which Local employees were excluded. (Ex. 15 at 119;

Ex. 20 at 200) Hogan failed to disclose meetings he had with Local

employers to the Trustee or the International. (Ex. 15 at 125-27;

Ex. 1 at 186-87)

In an attempt to cloak his activities on behalf of United

with some legitimacy, Hogan testified,

. . . Rick Simon would establish a legitimate

work force. Okay.

So now we got, say, 300 good solid people

committed; that when the Union opened their

doors to add people, they would take them from

Rick's company and they would be -- go over to

the Union. So they would be on the Union.

Now Rick would then lose control of that

ability to supply these people. They would

then become Union people, strictly as their

lists open up.

Because I guess they have some rules, or

something, about how many people are on their

lists. There is something about hours, or

something. That whole thing is a little vague

to me. I'm not really sure .. . . .

Q: So you weren't going alone?

A: Right.

(Ex. 21 at 262-63)

179

But that was the idea. He would establish

good Teamsters. And eventually they would

move in, work strictly for the Union, and, you

know, they wouldn't wind up on the A list at

some point.

And in the meantime, Rick would be continually

bringing in people, you know, to keep training

them. Because you get a big turnover out

there, and there is a lot of competition for

the labor out there.

(Ex. 15 at 79-80) However, Hogan's rationale for his actions

concerning United, where his brother was an officer and from whose

owner his son received a substantial gift, was nonsensical since

there were no limits on the number of individuals who could

register with the Local's dispatch office for work in the

convention industry. Local 631 had, under the red book contract,
an open dispatch office where anyone, whether a union member or

not, could register for work. (Ex. 7 at 68-70; Ex. 2 at 190-91)249

Moreover, there was in place a Convention Training Trust designed

to train workers to perform trade show work. (Ex. 2 at 247-250)

Left unexplained was how Hogan's "solution" to create more

Teamsters through agreeing to allow one employer to pay his

employees less and provide less benefits was helpful to Local 631

and its members.250 Moreover, in this right-to-work state, the

__________

249 Non members were required to pay a monthly $40 dispatch

fee. (Ex. 7 at 70)

250 As a result of the August 1996 Local 714 Trusteeship

report which described various conflicts of interest between the

Hogan family union officials and their relatives with ownership

interests with companies, Hogan was on notice of the impropriety of

180

United employees would not necessarily become Teamsters.

Furthermore, all discussions were held solely with the employer.

Hogan also asserted that entering into the arrangement

with Simon's company would solve the Local's alleged inability to

meet the trade show contractors' calls. (Ex. 15 at 55-58) As an

initial matter, as detailed above, the evidence did not support

Hogan's claim that the Local was regularly unable to meet the
calls. (Ex. 9 at 14, 37; Ex. 8 at 13-19) Moreover, under the

arrangement with Simon, a new system would have been created in

which Simon, not Local 631, dispatched workers. (Ex. 84)

Furthermore, even if Passo and Hogan believed that there was a need

for additional trade show workers to be dispatched from Local 631,

they never tried to organize the United employees or encourage the

United employees to register with the dispatch office. In

addition, they took no steps nor directed anyone else to take steps

to increase the number of people registered with the Local 631

________________

such conflicts of interest. Nevertheless, Hogan continued to

assist United, where his brother was an officer, to try to get a

substandard agreement with Local 631. Indeed, during his February

2001 sworn examination, Hogan claimed, " . . . I don't know what's

wrong with helping my family, but apparently somebody has got a

problem with that." (Ex. 15 at 58-59) Moreover, even though his

brother, through Show Biz USA which did trade show work in Las

Vegas, had a direct interest in the red book contract negotiations,

Hogan tried to participate in those negotiations. (Ex. 78 at 97-99;

Ex. 12 at 144) Furthermore, even though knowing Simon was

negotiating with Local 631 and even though Hogan himself was

involved to the point of arranging Simon's lunch with Hoffa, Hogan,

who was on the committee for the Hoffa Memorial Scholarship Fund

golf tournament, still allowed his son to accept a substantial gift

from Simon. (Ex. 15 at 89; Ex. 85)

181

dispatch office. Rather, they made enormous economic concessions

to Simon and Michael Hogan's company.='=

Moreover, the arrangement Passo and Hogan were pushing,

rather than solving any problem the Local allegedly had in meeting

the trade show contractors calls, would have created two new

subclasses of employees, the Dl and D2 workers, who would have

received lower wages and fewer benefits than were available to even

non-members by merely registering with the Local's dispatch

office. 252

In a further example of his lack of credibility, Passo

claimed that he could not recall Frates' and Whitfield's opinions

of his proposed arrangement with United. (Ex. 20 at 93-94, 162-

____________

251 Indeed, both Hogan and Passo objected to the dispatchers

increasing the number of people available to be dispatched by

contacting non-IBT Locals in Las Vegas for workers once all people

registered with Local 631 were working. Hogan and Passo stated

that the non-IBT unions would infringe upon the Teamsters

jurisdiction. (Ex. 20 at 145-47; Ex. 15 at 40-41) Instead of

having Local 631 dispatch union members to work at the red book

contract wage rate, Hogan and Passo preferred to enter into a

substandard arrangement with Simon's company where Simon would

control the dispatching. Their position was detrimental to Local

631 and its members, the other unions in Las Vegas and the United

employees. Hogan's and Passo's conduct was designed to benefit the

trade show contractors and the company where Hogan's brother was an

officer.

252 For example, for the first 1,000 hours they worked in the

industry, Simon's employees would not receive any overtime pay for

work during the hours of 10:00 p.m. and 6:00 a.m. unless they

worked more than eight hours in a day or 40 hours in a week.

182

63)253 Passo had repeated conversations with both Frates and

Whitfield during which he tried to persuade them to enter into the

substandard agreement. (Ex. 6 at 97-105, 111-12, 124; Ex. 82 at 54-

57, 70-73; Ex. 20 at 92, 177) During these conversations, Frates

and Whitfield expressed their strong opposition to his substandard

proposal and pointed out the deficiencies in the arrangement he was

promoting. (Ex. 6 at 99-105, 111-12, 124-25; Ex. 82 at 54-57, 70,

___________

253 Passo testified as follows:

Q: Did you tell [Frates] you thought it was a good idea for

Local 631 to enter into this agreement with Mr. Simon's

company?
A: Yes, I'm sure I did, yes.

Q: And what was Mr. Frates' response?

A: He wasn't really -- I don't think he had too much to say

either way.

Q: And did you tell [Whitfield] you thought it was a good

idea for 631 to enter into the agreement with Mr. Simon's

company that had some concessions off the GES contract?

A: I'm sure I did, yes.

Q: What was her view of that?

A: I don't remember her view. I don't remember which way

she was going with it.

Q: Did she ever tell you that she didn't think it was a good

idea?

A: I can't remember.

(Ex. 20 at 162-63)

183

234) They both told Passo they opposed giving concessions to Simon

and stated that Simon should sign the red book contract. (Ex. 6 at

124-25; Ex. 82 at 54) Passo's claimed lack of memory was suspect.

Passo also incredibly claimed that he did not know that

Michael Hogan was involved with United. (Ex. 20 at 68-69)254

William Hogan, who described his relationship with Passo as "good

friends", grudgingly acknowledged that he "probably" told Passo

that his brother was involved with United. (Ex. 15 at 39, 76)255

__________

254 Passo testified as follows:

Q: Does Michael Hogan have any position with Rick Simon's

company?

A: I don't know.

Q: Did you ever hear that Michael Hogan was the Vice

President of Rick Simon's company?

A: No.

Q: Did you ever hear that Mike Hogan had any contact with

Rick Simon's company?

A: No.

Q: Bill Hogan never mentioned that to you when he talked to

you about Rick Simon's company

A: No, he didn't.
(Ex. 20 at 68-69)

255 Hogan testified as follows:

Q: Did you ever tell Mr. Passo that your brother Michael was

involved or worked for United Maintenance?

A: Probably, but I'm not sure. I don't know that I ever

made that known to Dane.

184

During the seven months between April and November 2000 when Passo

was in Las Vegas trying to get an agreement for Hogan's brother's

company, there were, at least, 229 calls from Passo's cellular

telephone to Hogan's cellular telephone and from Hogan's cellular

telephone to Passo's cellular telephone. (Exs. 44-51, 54-60, 68-76)

Passo, who had met Michael Hogan in approximately 1996 or 1997 in

connection with the Hoffa campaign, also saw Michael Hogan in Las

Vegas at Bally's Hotel during the summer of 2000. (Ex. 20 at 107-

When Mike came over in Las Vegas that time Dane was

there, it's very possible then I said to Dane: "You know,

Mike is -- you know -- he is my brother. He is talking

to those guys from the Local."

And that's a possibility, but I really don't recall. I

don't know that I ever did that.

Q: And since that time at the Western Region meeting that we

have talked about, did you ever tell Mr. Passo that your

brother worked for United Maintenance?

A: Not that I recall, no. I could have. I don't know.

When I say that, now, let me clarify that, because with

everything that's going on here, you know, when this

first came up, you know, that they want all my records,

and supposedly about Las Vegas, I could very easily have

said something, because my brother's name was being

thrown around, my name was being thrown around.

So I could very likely have said something to Dane about

that, you know, "Rick Simon's company has become a

problem here. My brother works for Rick." That is a

very strong possibility." . . .

(Ex. 15 at 38-39)

185

08)256 Given the ongoing talks and meetings between Passo and Hogan

concerning United, Passo's claim that he was unaware that his close

friend's brother was involved in the company was not credible.

Indeed, Passo was frequently in contact as noted above with his

cronies in Local 631. Even members on the floor of the convention

center knew of Michael Hogan's relationship with United. (Ex. 156

at 36; Ex. 205 at 15-16) In addition, Jacobson admitted he sought

out Passo when he was not in Las Vegas to determine if a member had

connections to William or Michael Hogan. (Ex. 92 at 36-37) See,

United States v. McDermott, 2001 US App. Lexis 5277 (2d Cir. March

29, 2001) .

Furthermore, Passo's testimony concerning his lack of

memory about the lunch among Hogan, Simon, Hoffa and Passo was also

incredible. First, he denied that he had ever seen Simon in

Chicago.257 Then, he claimed he did not know if Hoffa ever met

___________

256 Passo testified that William Hogan was also in Las Vegas

at this time. (Ex. 20 at 107) According to Passo, Michael Hogan

told him that he was "having a show or was out there for a show .

. .." (Ex. 20 at 107-08)

257 During his sworn examination, Passo testified as follows:

Q: All the time that you've seen Mr. Simon, has that ail

been in Las Vegas?

A: Yes.

Q: You've never seen him in Chicago

A: Never.

(Ex. 20 at 103)

186

Simon. When pressed, Passo's testimony evolved, admitting the

lunch in Chicago with Hogan, Simon and Hoffa but being evasive.258

Passo denied that the agreement with Simon's company was discussed

during the lunch meeting in Chicago with Hogan, Simon and Hoffa.

(Ex. 20 at 168)259 In contrast, Hoffa recalled that an agreement

with Simon's company was discussed at this lunch. (Ex. 78 at 28)

Given Passo's investment in the Simon arrangement, it was

incredible for Passo to claim Simon did not speak to Hoffa about

____________________

258 During his sworn examination, Passo testified as follows:

Q: Did Mr. Hoffa ever meet Mr. Simon?

A: Did he ever meet him? I don't know, I don't know if he

ever met him.

Q: Did you ever introduce Mr. Hoffa to Mr. Simon?

A: Did I ever introduce him? I never introduced him to Mr.

Simon, no, I don't think so, no.

Q: Did you ever see Mr. Simon and Mr. Hoffa together?

A: I can't remember. I think we were at an AFL-CIO meeting

together in Chicago and Bill Hogan came to lunch -- came

to pick us up to go to lunch in a break and Simon was

with Bill Hogan, that's right.

(Ex. 20 at 165)

259 During his sworn examination, Passo testified about the

Chicago lunch with Hogan, Simon and Hoffa as follows:

Q: Was there any discussion of the proposed agreement with

Mr. Simon's company?

A: No, I don't think so, no.

(Ex. 20 at 168)

187

the proposed agreement.

B. Passo and William Hogan Colluded with Simon, an Employer,

to Attempt to Force Local 631 to Enter into a Substandard

Agreement with Simon's Company

As detailed above, to the detriment of the Local 631

members employed in the trade show and convention industries and

the United employees, Passo and Hogan colluded with United CEO

Simon to try to force Local 631 officials to enter into a

substandard agreement with United. Hogan and Passo would have

created two subclasses of lower paid workers that would have

performed Teamster work. This would have given the trade show

contractors a strong economic incentive to use the United employees

over the higher paid workers dispatched from Local 631.`60 The

arrangement with United Passo and Hogan advocated would also have

undermined the Local's bargaining position in the 2001 contract

negotiations. In addition, by pushing Local 631 officials to enter

into an agreement with United without having spoken to any United

employees, Passo and Hogan violated IBT procedures.

In addition to Passo's and Hogan's proposed arrangement

with Simon being harmful to the Local 631 members employed in the

trade show and convention industries, the evidence of their

______________

260 Indeed, evidencing the substantial economic benefits to

the general contractors who were signatories to the red book

agreement, GES, the contractor most aggressively attempting to

bring in United employees, allegedly would agree to waive the most

favored nations clause if it could use the United employees. (Ex.

82 at 70)

188

collusion with Simon included the following: Hogan introduced his

brother, an officer at United, a labor broker, to Local 631

officials in order to assist United to obtain a substandard

arrangement to provide labor to the trade show contractors in Las

Vegas;261 no attempt was ever made to organize the United employees

(Ex. 20 at 109-110; Ex. 15 at 22-26, 60; Ex. 79 at 14-20; Ex. 80 at

20-24; Ex. 81 at 22-26, 29-32); without ever speaking to any United

employee, Passo urged Local 631 officials to enter into a

substandard agreement that would have created new subclasses of

employee, D1 and D2 workers, who would have been paid less and

would have received fewer benefits than any individual who

registered with the Local 631 dispatch office (Ex. 84); with

Passo's assistance, Hogan, who had no official role at Local 631,

interjected himself into Local 631 affairs and met with employers

regarding .Local 631 matters without the Local 631 Trustee being

present or notified of the meetings; Passo and Hogan failed to

disclose to their superiors at the IBT their activities concerning

Local 631 employers ;262 Hogan failed to disclose to Hoffa and Scalf

____________________

261 Traditionally, labor brokers have undermined working

conditions for employees. (Ex. 26 at 49-50; Ex. 32 at 31)

262 For example, although he participated with Hoffa in the

Chicago lunch meeting Hogan arranged with Simon, Passo did not

disclose to Hoffa either before or after the lunch that he was

actively engaged with Simon in trying to enter into an agreement.

(Ex. 78 at 25-29) Hogan and Passo failed to report to Scalf or

Trustee Wilkerson the meeting during which the Freeman

representative objected to their proposed substandard agreement

with United. (Ex. 12 at 145-46) Hogan also failed to disclose to

189

that his brother was an officer of United (Ex. 78 at 30-31; Ex. 12

at 62, 196); Passo lied to Trustee Wilkerson falsely claiming that

high-ranking IBT officials approved the substandard agreement when

they had not; Passo concealed the extent of his substantial

concessions to United during his sworn examination and during his

conversations with Scalf; and Passo caused Local 631 officials who

opposed his proposed arrangement with United to be terminated.263

Passo's and Hogan's failure to speak to any of the United

employees emphasized the extent of their collusion with Simon.

Passo and Hogan did not direct Local 631's Director of Organizing,

the Local's organizer or the IBT organizer assigned to Local 631,

to organize the United employees. (Ex. 79 at 19-20; Ex. 80 at 21-

23; Ex. 81 at 29-32)264 The United employees never designated the

IBT and Local 631 to be their bargaining representative.

Scalf or Local 631 Trustee Jacobson that he met with Las Vegas GES

representatives in Chicago to discuss grievances Local 631 filed

against GES for the use of the United employees and the upcoming

contract negotiations. (Ex. 15 at 126-27; Ex. 1 at 186-87; Ex. 12

at 47, 143-44)

____________

263 While Hogan was advocating for the substandard agreement

for United, Simon paid $1,200 in golf fees for Hogan's son, Local

714 member James Hogan, to attend the Hoffa Scholarship Fund golf

tournament in Las Vegas in September 2000. (Ex. 85; Ex. 86 at 32-

33; Ex. 15 at 98)

264 Indeed, Norman Bueley, an IBT Organizer assigned to Local

631 during parts of 2000, recognized the unusual nature of Passo's

activities concerning United when he testified that he heard that

there was a "top down" organizing campaign at United. (Ex. 81 at

28, 48) When asked what he meant by a "top down" organizing

campaign, Bueley responded, "[t]hat there wasn't a traditional

drive going after an election." (Ex. 81 at 28)

190

Passo's and Hogan's actions also failed to comply with

the Local's Bylaws and IBT's procedures for negotiating first

contracts. Section 27 of the Local 631 Bylaws required a meeting

of the effected members to be held to formulate bargaining demands

whenever a contract was to be negotiated. Analogously, Passo and

Hogan did not speak to any United employee, let alone hold any such

meeting prior to discussing a contract with Simon and advocating

that Local 631 officials enter into the substandard agreement.

Indeed, the IBT's Organizing Guide emphasized communication with

employees. For example, the IBT's Organizing Guide provided for

the following five steps when negotiating a first contract:

1. Hold meetings and conduct one-on-one

surveys with all workers to find out

what issues they want addressed in

their first contract.

2. Supervise the election of a

negotiating committee from among all

the workers to represent the union

during negotiations.

3. Begin face-to-face negotiations with

the employer based on the proposals

developed.

4. Reach a tentative agreement on all

issues between your committee and

the employer.

5. Bring back that agreement to all the

workers for ratification or

rejection by secret ballot vote.

(Ex. 292 at 49) Further evidencing their collusion with Simon,

Passo and Hogan followed none of these procedures.

191

VI. PROPOSED CHARGE

Based upon the foregoing, it is recommended that Dane

Passo and William Hogan, Jr. be charged as follows:

While members of the IBT and International

Representatives, you brought reproach upon the IBT by colluding

with an employer in violation of Article II, Section 2(a) and

Article XIX, Section 7(b)(2) of the IBT Constitution and in

violation of your fiduciary obligations to the IBT and its members,

29 U.S.C. §501(a), to wit:

Between at least March 1999 and the present, as detailed

in the above report, each of you colluded with Richard Simon, the

CEO of United Service Companies, to cause Local 631 to enter into

a substandard contract with a Simon company and to have those

employees perform Teamster work in the Las Vegas trade show and

convention industries for which Simon's company would pay lower

wages, make less benefit fund contributions and receive other

concessions from what the existing collective bargaining agreement

required. As part of this scheme, which was to the detriment of

IBT Local 631 and its members, each of you attempted to cause Local

631 officials to enter into a substandard agreement with Simon's

company, of which Hogan's brother, Michael, was an officer.

192

-- EXHIBITS TO REPORT REGARDING DANE PASSO AND WILLIAM T. HOGAN

Ex. 1 Sworn Examination of Eddie L. Jacobson dated March 29,

2001

Ex. 2 Sworn Examination of Charles Benboe dated March 29, 2001

Ex. 3 James Santangelo Report dated January 2000 to James Hoffa

Ex. 4 Collective Bargaining Agreement between Local 631 and GES

Exposition Services, Inc. for the period from June 1,

1997 to May 31, 2001

Ex. 5 Sworn Examination of David Breyman dated December 20,

2000

Ex. 6 Sworn Examination of Roberta Whitfield dated December 19,

2000

Ex. 7 Sworn Examination of Jennifer Dodds dated March 29, 2001

Ex. 8 Sworn Examination of Frances Almaraz dated January 31,

2001

Ex. 9 Sworn Examination of Jennifer Dodds dated January 30,

2001
Ex. 10 Letter appointing Dane Passo Personal Representative to

Local 631

Ex. 11 Dane Passo's IBT Personnel records

Ex. 12 Sworn Examination of Carlo B. Scalf dated March 2, 2001

Ex. 13 Letter appointing James Santangelo Personal

Representative to Local 631

Ex. 14 Trusteeship Notice for Local 631

Ex. 15 Sworn Examination of William T. Hogan dated February 7,

2001

Ex. 16 Trusteeship Report Regarding Local 714

Ex. 17 Form LM-2 for Local 705 for 1992

Ex. 18 Business Card of Michael Hogan for United Services

Ex. 19 Corporate Records United Service Companies

Ex. 20 Sworn Examination of Dane Passo dated February 2, 2001

Ex. 21 Sworn Examination of Dane Passo dated February 9, 2001

Ex. 22 Michael Hogan'-s Business Card for Show Biz USA

Ex. 23 Corporate Records for Show Biz USA

Ex. 24 United Temps of Nevada Incorporation Papers

Ex. 25 Sworn Examination of Timothy Murphy dated December 20,

2000
Ex. 26 Sworn Examination of James E. Wilkerson, Jr. dated

December 18, 2000

Ex. 27 Records from United Services Website

Ex. 28 News articles regarding Ben Stein

Ex. 29 2"d Circuit Decision Re Dominic Senese

Ex. 30 FBI 302 Concerning February 4, 1988 Interview of Richard

Simon

Ex. 31 News Article regarding Dominic Senese

Ex. 32 Sworn Examination of James Santangelo dated February 8,

2001

Ex. 33 Dane Passo's Cellular Telephone Records for Invoice dated

April 26, 1999

Ex. 34 Dane Passo's Cellular Telephone Records for Invoice dated

May 26, 1999

Ex. 35 Dane Passo's Cellular Telephone Records for Invoice dated

June 26, 1999

Ex. 36 Dane Passo's Cellular Telephone Records for Invoice dated

July 26, 1999

Ex. 37 Dane Passo's Cellular Telephone Records for Invoice dated

August 26, 1999

Ex. 38 Dane Passo's Cellular Telephone Records for Invoice dated

September-26, 1999

Ex. 39 Dane Passo's Cellular Telephone Records for Invoice dated

October 26, 1999

Ex. 40 Dane Passo's Cellular Telephone Records for Invoices

received between November :., 1999 and December 5, 1999

Ex. 41 Dane Passo's Ceil u 1 ar Te 1 e~:,hone ?~acords for Invoices

recei-:ed between December 5, 1999 and January 5, 2000

Ex. 42 Dane Passo's Cellular Telephone Records forInvoices

received between January 6, 2000 and February 5, 2000

Ex. 43 Dane Passo's Cellular Telephone Records for Invoices

received between February 6, 2000 and March 5, 2000

Ex. 44 Dane Passo's Cellular Telephone Records for invoices

received between March 6, 2000 and April 5, 2000

Ex. 45 Dane Passo's Cellular Telephone Records forInvoices

received between April 6, 2000 and May 5, 2000

Ex. 46 Dane ?asso's Cellular Telephone Records forinvoices

received between May 6, 2000 and June 5, 2000

EX. 47 Dane Passo's Cellular Telephone Records for Invoices

received between. June 6, 2000 and July 5, 2000

Ex. 48 Dane Passo's Cellular Telephone Records for Invoices

received between July 6, 2000 and August 5, 2000

Ex. 49 Dane Passo's Cellular Telephone Records for Invoices

received between September 6, 2000 and October 5, 2000

Ex. 50 Dane Passo's Cellular Telephone Records forInvoices

received between October 6, 2000 and November 5, 2000

Ex. 51 Dane Passo's Cellular Telephone Records forInvoices

received between November 6, 2000 and December 5, 2000

Ex. 52 Dane Passo's Cellular Telephone Records forInvoices

received between December 6, 2000 and January 5, 2001

Ex. 53 Dane Passo's Cellular Telephone Records for Invoice dated

March 7, 2000

Ex. 54 Dane Passo's Cellular Telephone Records for Invoice dated

April 8, 2000

Ex. 55 Dane Passo's Cellular Telephone Records for Invoice dated

May 8, 2000

56 Dane Passo's Cellular Telephone Records for Invoice dated

June 7, 2000

Ex. 57 Dane Passo's Cellular Telephone Records for Invoice dated

July 7, 2000

Ex. 58 Dane Passo' s Cellular Telephone Recorus for Invoice gated

August 3, 2000

Lx. 59 Dane Passo's Cellular Telephone Records for Invoice dated

September 7, 2000

Ex. 60 Dane Passo's Cellular Telephone Records for Invoice dated

October 9, 2000

Ex. 61 Local 714 Telephone Records for bills thru August 11,

1999

Ex. 62 Local 714 Telephone Records for bills thru September 11,

1999

Ex. 63 Local 714 Telephone Records for bills thru October 11,

1999

Ex. 64 Local 714 Telephone Records for bills thru November 11,

1999

Ex. 65 Local 714 Telephone Records for bills thru January 11,

2000

Ex. 66 Local 714 Telephone Records for bills thru February 11,

2000
Ex. 67 Local 714 Telephone Records for bills thru March 11, 2000

Ex. 68 Local714 Telephone Records for bills thru April 11, 2000

Ex. 69 Local714 Telephone Records for bills thru May 11, 2000

Ex. 70 Local 714 Telephone Records for bills thru June 11, 2000

Ex. 71 Local714 Telephone Records for bills thru July 11, 2000

Ex. 72 Local 714 Telephone Records for bills thru August 11,

2000

Ex. 73 Local 714 Telephone Records for bills thru September 11,

2000

Ex. 74 Local 714 Telephone Records for bills thru October 11,

2000

Ex. 75 Local 714 Telephone Records for bills thru November 11,

2000

Ex. 76 Schedule of Telephone calls between Dane Passo and

William T. Hogan

Ex. 77 Local 631 Dispatch Rules

Ex. 78 Sworn Examination of James Hoffa dated March 21, 2001

Ex. 79 Sworn Examination of Raymond Isner dated January 31, 2001

Ex. 80 Sworn Examination of r~Iilliam Cooper dated February 7,

2001

Ex. 81 Sworn Examination of Norman E. Bouley, Jr. dated January

30, 2001
Ex. 82 Sworn Examination of Martin rates dated January 18, 2001

Ex. 83 Sworn Examination of Alina Hernandez dated December 19,

2000

Ex. 84 Letter dated April 11, 2001 from Bruce Maffeo, Esq. with

attachments

Ex. 85 United Maintenance Donations to the James R. Hoffa

Memorial Scholarship Fund

Ex. 86 Sworn Examination of Robert A. Hogan dated March 23, 2001

Ex. 87 Blank

Ex. 88 IRB Document Request dated February 9, 2001 to the IBT

Ex. 89 IBT Letter dated April 11, 2001 to the IRB

Ex. 90 Sworn Examination of Charles Justice dated March 28, 2001

Ex. 91 Letter dated February 4, 2000 from Joint Council 25 to

James Hoffa

Ex. 92 Sworn Examination of Eddie L. Jacobson dated January 31,

2001

Ex. 93 Sworn Examination of Mary Hardiman dated April 3, 2001

Ex. 94 Dane Passo Expense Report for March 1999

Ex. 95 Dane Passo Credit Card Statement for March 1999

Ex. 96 Dane Passo Expense Report =or ;.pril 1999

Ex. 97 Dane Passo Credit Card Statement for Lori! 1999

Ex. 98 Dane ?asso Expense Report for May 1999

Ex. 99 Dane Passo Credit Card Statement for Mav 1999

Ex. 100 Dane Passo Expense Report for June 1999

Ex. 101 Dane Passo Credit Card Statement for June 1999

Ex. 102 Dane Passo Expense Report for July 1999

Ex. 103 Dane Passo Credit Card Statement for July 1999

Ex. 104 Dane Passo Expense Report `or August 1999

Ex. 105 Dane Passo Credit Card Statement for August 1999

Ex. 106 Dane Passo Expense Report for September 1999

Ex. 107 Dane Passo Credit Card Statement for September 1999

Ex. 108 Dane Passo Expense Report for October 1999

Ex. 109 Dane Passo Credit Card Statement for October 1999

Ex. 110 Dane Passo Expense Report for November 1999

Ex. 111 Dane Passo Credit Card Statement for November 1999

Ex. 112 Dane Passo Expense Report for December 1999

Ex. 113 Dane Passo Credit Card Statement for December 1999

Ex. 114 Dane Passo Expense Report for January 2000

Ex. 115 Dane Passo Credit Card Statement for January 2000

Ex. 116 Dane Passo Expense Report for February 2000

Ex. 117 Dane Passo Credit Card Statement for February 2000

Ex. 118 Dane Passo Expense Report for March 2000

Ex. 119 Dane Passo Credit Card Statement for March 2000

Ex. 120 Dane Passo Expense Report for April 2000

Ex. 121 Dane Passo Credit Card Statement _`or z%pril 2000

Ex. 1 22 Dane Passo xpense ?epcr t =:,r :11ay 2000

Ex. 123 Dane Passo Credit Card Statement for ",?ay 2000

Ex. 124 Dane Passo Expense Report for June 2000

Ex. 125 Dane Passo Credit Card Statement for June 2000

Ex. 126 Dane Passo Expense Report for July 2000

Ex. 127 Dane Passo Credit Card Statement for July 2000

Ex. 128 Dane Passo Expense Report for August 2000

Ex. 129 Dane Passo Credit Card Statement for August 2000

Ex. 130 Dane Passo Expense Report for September 2000

Ex. 131 Dane Passo Credit Card Statement for September 2000

Ex. 132 Dane Passo Expense Report for October 2000

Ex. 133 Dane Passo Credit Card Statement for October 2000

Ex. 134 Dane Passo Expense Report for November 2000

Ex. 135 Dane Passo Credit Card Statement for November 2000

Ex. 136 Dane Passo Expense Report for December 2000

Ex. 137 Dane Passo Credit Card Statement for December 2000

Ex. 138 Dane Passo Expense Report for January 2001

Ex. 139 Dane Passo Credit Card Statement for January 2001

Ex. 140 Dane Passo Expense Report for February 2001

Ex. 141 Dane Passo Credit Card Statement for February 2001

Ex. 142 Schedule of meals between Dane Passo and Ronald Dudash

Ex. 143 List of IBT International Representatives and Organizers

Ex. 144 Schedule of meals between Dane Passo and Vito Locascio

Ex. 145 Teamster Leadership Academy records regarding Vito

Locascio
Ex. 146 Dues Record for Vito Locascio

Ex. 147 Sworn Examination of Vito Locascio dated Januar%~ <0, 2001

Ex. 149 James Wilkerson's Termination

Ex. 149 Sworn Examination of Charles Benboe dated January 29,

2001

Ex. 150 Local 631 Records regarding Purchase of Automobiles

Ex. 151 Magic Show Grievances with Fax Cover Sheet Showing they

were sent on September 5, 2000 (Three Grievances)

Ex. 152 SEMA Show Grievance dated November 2000

Ex. 153 CES Grievance dated January 2001

Ex. 154 Show Biz USA Letter to Trustee Jacobson

Ex. 155 Sworn Examination of Stephen Geiger dated March 28, 2001

Ex. 156 Sworn Examination of Michael Robertson dated January 29,

2001

Ex. 157 Article XIX, Section 5(a) of IBT Constitution

Ex. 158 Excerpt from IBT LM-2 for 1999 regarding Passo's

Allowances

Ex. 159 Charge Report Against Daniel Ligurotis

Ex. 160 Decision of Independent Administrator Involving Daniel

Ligurotis

Ex. 161 Opinion & Order of Judge David N. Edelstein Involving

Daniel Ligurotis

Ex. 162 Sworn Examination of William T. Hogan dated May 29, 1996

Ex. 163 Blank

Ex. 164 William T. Hogan's Resignation from the Hoffa Slate

Ex. 165 Schedule of Meals Between Dane Passo and William T. Hogan

Hogan in Las Vegas in 2000

Ex. 166 Schedule Showing Trips to Las Vegas by Dane Passo and

William T. Hogan

Ex. 167 Dues Record for Frank Incandella

Ex. 168 Sworn Examination of Terry Newton dated December 20, 2000

Ex. 169 Sworn Examination :, ~~i:~c :iacDonaid aated March 28, .20.01

Ex. 170 Local 631 Dispatch Records for Carpenters Union Members

Ex. 171 Business Card for Richard Simon

Ex. 172 News Articles re:Richard Simon & United dated September

1980 from the Chicago Tribune and dated April 1997 from

the Chicago Sun Times

Ex. 173 Sworn Examination of Michael P. Hogan, Jr. dated February

22, 1996

Ex. 174 Sworn Examination of Michael Hardy dated January 25, 1996

Ex. 175 Sworn Examination of James M. Hogan dated May 22, 1996

Ex. 176 Dues Record for Michael P. Hogan

Ex. 177 O'Hare Exposition Maintenance Incorporation papers

Ex. 178 Incorporation Papers and Annual Reports from Illinois

Secertary of State regarding O'Hare Exposition

Maintenance

Ex. 179 Sworn Examination of William Hogan, Sr. dated June 21,

1977

Ex. 180 Certificate of Dissolution for O'Hare Exposition

Maintenance

Ex. 181 1979 Incorporation Papers and Annual Reports Records from

Illinois Secretary of State regarding Rosemont Exposition

Services

Ex. 182 Excerpt from the Sworn Examination of James M. Hogan

dated May 22, 1996

Ex. 183 Sworn Examination of Dale Torii dated February 22, 1996
Ex. 185 Western Region Delegates Meeting Records for June 1999

Ex. 186 William T. Hogan Travel Records Showing his attendance at

the 1999 Western Region Delegates Meeting in Las Vegas

Ex. 187 Local 631 Records re Timothy :Murphy for June 1-999

Ex. 188 Local 631 Employer List Showing McNabb Carpet, Exhibitor

Carpet Service, Freeman, GES and Employco Union Payroll

Ex. 189 Complaints Received by Joint Council 42 Re: Locai.63.1_

Ex. 190 IRB Letter asking for all records re: Telephone Calls to

the IBT re Local 631

Ex. 191 IBT Response with Two Telephone Messages attached

Ex. 192 Sworn Examination of Charles Leo Deaner dated April 3,

2001

Ex. 193 Letter dated March 3, 2000 from Timothy Murphy to James

Hoffa

Ex. 194 Charges Filed by Timothy Murphy Against Frank Christian

Ex. 195 Dismissal of Charges Filed by Timothy Murphy Against

Frank Christian

Ex. 196 Local 631 General Membership Meeting Minutes dated

September 15, 1999

Ex. 197 Letter dated October 4, 1999 from Frank Christan to James

Hoffa

Ex. 198 IBT Appointment of James Wilkerson as Trustee of Local

631

199 Memo dated April 2, 1997 from Bill Marovitz announcing

"Chicago Salutes Bill Hogan, Jr."

Ex. 200 Dues Record of Roberta Whitfield

Ex. 201 Schedule of Dane Passo's expenses in Las Vegas in the

year 2000

Ex. 202 Document reflecting the Federal Minimum Wage

Ex. 203 Sworn Examination of William Christian dated January 31,

2001

Ex. 204 Sworn Examination of Henry Ortega dated March 28, 2001

Ex. 205 Sworn Examination of Shane Navara dated January 29, 2001

Ex. 206 Local 631 Telephone Bills Showing May 26 and June 13,

2000 Telephone Calls to United Offices in Chicago,

Illinois

Ex. 207 Schedule Comparing the Rates to-the Wage

Rates Proposed by Dane Passo

Ex. 208 Expenses of James Santangelo Showing that he was in Las

Vegas on May 4 to 7, 2000 and May 19 to 20, 2000

Ex. 209 Expenses of James Santangelo Showing that he was in Las

Vegas from July 9 to 12, 2000

Ex. 210 Carlo Scalf's Expense Report and Credit Card Statement

Showing that he was in Las Vegas from July 9 to 12, 2000

Ex. 211 Local 631 Telephone Records: Bill date of July 18, 2000

Ex. 212 Grievance filed Against GES for Suspensions

213 James Hoffa Expense Report and Credit Card Statement for

July and September 2000 Showing that he was in Chicago,

Illinois

Ex. 214 Letter from Martin Frates with telephone records and

Richard Simon's business card

Ex. 215 Document Showing the Dates of the Magic Show between

August and September 2000

Ex. 216 Memorandum of Contact of Special Investigator Raymond

Wren Re Hernandez

Ex. 217 Copy of Tape Recording Made by Roberta Whitfield

Ex. 218 Transcript of Tape Recording Made by Roberta Whitfield

Ex. 219 Grievance filed by Ronald Dudash

Ex. 220 Sworn Examination of Ronald Dudash dated January 31, 2001

Ex. 221 James Hoffa Expense Report and Credit Card Statement for
August 2000 Showing Meals in Las Vegas with Dane Passo,

Ronald Dudash and Vito Locascio

Ex. 222 Martin Frates Letter re Ronald Dudash Grievance

Ex. 223 Charges Filed by Ronald Dudash Against Roberta Whitfield,

Martin Frates and Charles Benboe

Ex. 224 Eddie Jacobson's Letter Dismissing the Charges Filed by

Ronald Dudash

Ex. 225 Schedule of Telephone Cans from Dane Passo's cellular

telephone to Vito Locascic

Ex. 226 Local 631 Wage and Expense e ':,.ecords of Vito Tiocascic

Ex. 227 Sworn Examination of Harold Klein dated January 29, 2001

Ex. 228 Sworn Examination of Frank Incandella dated January 30,

2001

Ex. 229 Schedule Showing Meals Between Dane Passo and Frank

Incandella

Ex. 230 Local 631 Records Showing the Hiring of Frank incandella

Ex. 231 Schedule of Telephone Calls between Dane Passo and Frank
Incandella

Ex. 232 Local 631 Records Showing the Hiring of William Cooper

Ex. 233 Schedule Showing Meals Between Dane Passo and William

Cooper

Ex. 234 Joint Council 25 Minutes for August 22, 2000 Showing the

Hiring of William Cooper

Ex. 235 Dispatch History for Vito Locascio

Ex. 236 Southwest Administrators Records re Vito Locascio

Ex. 237 Local 631 Wage and Expense Records of Wayne King

Ex. 238 Vito Locascio Court Records Showing his Conviction in May 1987

Ex. 239 Local 631 Records Re Hiring of Vito Locascio between

October 14 and November 10, 2000

Ex. 240 DRIVE Reimbursement Check to Local 631 dated February 6,

2001

Ex. 241 List of Participants at Teamster Leadership Academy

between October 2 and 6, 2000

Ex. 242 Article XXII, Section 2(a) of IBT Constitution

Ex. 243 List of Participants at Teamster Leadership Academy

during 1999 and 2000

Ex. 244 List of non-officer/employees Participants at Teamster

Leadership Academy _n 199: and 2000

Ex. 245 Joint Council 25 Minutes of March 9, 2000 Appointing

William T. Hogan as President of the Joint Council

Ex. 246 Documents Showing the Dates of the Unity Conference and

the James R. Hoffa Scholarship Golf Outing

Ex. 247 Sworn Examination of Douglas Manning dated March 28, 2001

Ex. 248 Letter dated February 13, 2001 From TRB to Local 631

Requesting Copies of All Grievances Filed Against GES

After august 1, 2000

Ex. 249 Letter dated February 26, 2001 from Local 631 Responding

to the IRB letter dated February 15, 2001

Ex. 250 Grievances Filed Against GES for Terminations

Ex. 251 Copies of All Grievances Provided

Ex. 252 Article II, Section 4(h) of the IBT Constitution

Ex. 253 Trusteeship Notice for Local 815

Ex. 254 Sworn Examination of George Miranda dated December 9,

1996

Ex. 255 Letter dated April 12, 2001 from George Miranda as

Principal Officer of Local 815

Ex. 256 Local 631 Trustee Reports for May - September 2000

Ex. 257 Letter dated March 16, 2001 from Patrick Szymanski, Esq.,

IBT General Counsel, stating that the IBT has no other

letters addressed to James Wilkerson

Ex. 258 Letter dated November 1, 2000 from IBT to Local 631 re

Dedication of Union Hall

Ex. 259 Local 631 Records Showing that Members Worked on the

Supershow between January 15 and 26, 2001

Ex. 260 Show Biz USA Business Card for Michael Hardy

Ex. 261 Sworn Examination of Milan Dobrijevich dated March 28,

2001

Ex. 262 MAGIC Grievances Re: Four Man Panel

Ex. 263 IRB Sworn -Examination Notices Sent Cut on January I2-,- --

2001

Ex. 264 Local 995-Employer List Showing Bally's as an Employer

Ex. . 265. Local 714 Credit Card Statement for William Hogan B1l_1_ing _.,_,_

Closing date February 28, 2000

Ex. 266 Local 714 Credit Card Statement for William Hogan Billing-, .

Closing date March 29, 2000

Ex. 267 Local 714 Credit Card Statement for William Hogan Billing

Closing date May 30, 2000

Ex. 268 Joint Council 25 Check Voucher No. 38377 dated April 24,

2000

Ex. 269 Joint Council 25 Check Voucher No. 38427 dated May 10,

2000

Ex. 270 Joint Council 25 Check Voucher No. 38434 dated May 19,

2000

271 Joint Council 25 Check Voucher No. 38484 dated June 2,

2000

Ex. 272 Joint Council 25 Check Voucher No. 38504 dated June 7,

2000

Ex. 273 Joint Council 25 Check Voucher No. 38505 dated June 7,

2000

Ex. 274 Joint Council 25 Check Voucher No. 38567 dated July 24,

2000

Ex. 275 Joint Council 25 Check Voucher No. 38645 dated August
2000

Ex. 276 Joint Council 25 Check Voucher No. 38653 dated August 10,

2000

Ex. 277 Joint Council 25 Check Voucher No. 38657 dated August 10,

2000

Ex. 278 Joint Council 25 Check Voucher No. 38748 dated September

6, 2000

Ex. 279 Joint Council 25 Check Voucher No. 38834 dated October

12, 2000

Ex. 280 Joint Ccuncil 25 Check Voucher No. 38952 dated November

8, 2000 _

Ex. 281 Joint Council 25 American Express Statement Closisag Date

December 29, 2000

Ex. 282 Dane Passo Cellular Phone Record fro January 4, 2001

Ex. 283 Dane Passo Cellular Phone Records for Invoices Received

January 6, 2001 - February 5, 2001

Ex. 284 Dane Passo Cellular Phone Records for Invoices Received

February 6, 2001 - March 5, 2001

Ex. 285 Form LM-2 for Local 714 for 1980

Ex. 286 Form LM-2 for Local 714 for 1981

Ex. 287 Form LM-2 for Local 714 for 1982

Ex. 288 Form LM-2 for Local 714 for 1983

Ex. 289 Form LM-2 for Local 714 for 1984

Ex. 290 Form LM-2 for Local 714 for 1985

Ex. 291 Sworn Examination of Robert Hill dated December 19, 2000

Ex. 292 IRB Letter dated December 22, 2000 to the IBT

Ex. 293 Teamsters Organizing Guide

Ex. 294 IRB Investigator Memo of Raymond Wren dated November 27,

2000

Ex. 295 Local 631 Check No. 34146 dated October 20, 2000 Re: Vito

Locascio's Airfare to the Teamster Leadership Academy

Ex. 296 Local 631 Bylaws

Ex. 297 Sworn Examination of Nicole Pollard dated May 14, 2001

Ex. 298 Jacobson Letter to Chief Investigator dated January 26,

2001 via Fax

Ex. 299 Dane Passo sworn examination notice dated December-21,

2000
Ex. 300 Sworn Examination of John Allen dated January 29, 2001