© 1999 Not for publication on the internet without the express written permission of Laborers for JUSTICE

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

UNITED STATES OF AMERICA, and
LABORERS' INTERNATIONAL UNION
OF NORTH AMERICA by and through
ROBERT LUSKIN, in his official                             99 C 5529
capacity as General Executive
Board Attorney,                                           Judge Gettleman

Plaintiffs,

DRAFT 8/31/99

V.                                                                                                                         

CONSTRUCTION & GENERAL LABORERS'
DISTRICT COUNCIL OF CHICAGO AND
VICINITY, an affiliated entity of 
the Laborers' International Union
of North America,

Defendant.

CONSENT DECREE

    This matter coming before the Court by agreement of the parties, the United States of America, the LIUNA General Executive Board Attorney (hereinafter "GEB Attorney") on behalf of the Laborers I International Union of North America, AFL-CIO, ("LIUNA") , and the defendant Construction and General Laborers' District Council of Chicago and Vicinity, (the "Chicago Laborers' District council" or "CLDC"), and the Court being fully informed in the premises, FINDS as follows:

    A. The organized crime syndicate known as La Cosa Nostra ("the LCN") has at various times had a corrupting influence on the affairs of the CLDC, various local unions comprising the CLDC, and other entities within the CLDC;

    B. Although the United States, by bringing certain criminal

prosecutions, and LIUNA, by imposing a trusteeship and bringing disciplinary charges, have made substantial progress in eliminating LCN influence from LIUNA nationwide, and the CLDC in particular, the LCN influence over the CLDC presents special problems associated with endemic, long-term corruption that requires additional measures;

    C. The United States, the GEB Attorney and the CLDC agree that there should be no corruption by the LCN over any entity anywhere within the CLDC, and thus, that further cooperative efforts, subject to judicial supervision and with judicial assistance, are necessary and appropriate;

    D. The parties agree that the resources of the CLDC should be preserved and used for the benefit of its members, and that it is essential that the duties outlined in this decree be carried out in a prudent and cost-effective manner;

    E. The parties agree that one of the purposes of this Consent Decree is to ensure that the affairs of the CLDC and its affiliated entities should be maintained and conducted in a democratic fashion, with integrity, for the sole benefit of its members and without unlawful outside influence;

    F. The parties agree that a further purpose of this Consent Decree is to facilitate the prompt election -of officers under circumstances that prevent the LCN from reasserting its influence over the CLDC; and they agree that the imposition of this consent Decree will help to foster an atmosphere where a freely democratic election is possible;

    G. This Consent Decree has been entered into on behalf of the rank-and-file members of the CLDC and its affiliated local unions;

    H. The parties affirm and agree that the prospective mission and responsibilities of the CLDC must be protected so as to represent the interests of the CLDC, its rank-and-file members and their families;

    I. The United States, the GEB Attorney and the CLDC have consented to the entry of this order; and

    J. A majority of the delegates duly elected to represent the constituent local unions comprising the CLDC have voluntarily and democratically consented to the entry of this order;

Accordingly, it is hereby ORDERED, ADJUDGED AND DECREED as follows:

Purpose and Summary

    1. The findings set forth in paragraphs A through J above are incorporated by reference in this paragraph and are agreed to by the undersigned parties. All of the parties are strongly committed to eradicating organized crime and criminal elements from all levels of LIUNA and the CLDC. To fulfill its commitment to eradicate organized crime and criminal elements from all levels of LIUNA, the International Union has adopted a variety of procedural, structural, and substantive reforms designed to accomplish that goal. Many of these reforms are embodied in the LIUNA Ethical Practices Code, which establishes standards of conduct for union

4

    2. As part of these reforms, LIUNA has retained the GEB Attorney, who has authority under the LIUNA constitution to take whatever action is necessary to accomplish the removal of organized crime and all other criminal elements from all levels of the union. LIUNA has also retained an Inspector General, who among other duties, investigates violations of the Ethical Practices Code.

    3. To achieve the mandate of this consent Decree, this decree also establishes: (i) a Monitor, who shall have authority to direct the investigation and prosecution of charges arising under this Consent Decree; (ii) an Adjudications Officer, who, among other things, will conduct proceedings resulting from charges brought under this Consent Decree; and (iii) a Trustee/Supervisor who is to supervise the daily activities of the CLDC.

Court Jurisdiction

    4. The parties acknowledge that this Court has jurisdiction over the subject matter of the action and personal jurisdiction over the parties to this Consent Decree. This Court has reviewed the factual allegations and the legal sufficiency of the complaint and finds that this Consent Decree is a valid exercise of the Court's jurisdiction and remedial authority.

    5. This Court shall retain exclusive jurisdiction over the subject matter of this action and over the parties to this Consent

5

Decree to supervise implementation of this Consent Decree and shall have exclusive jurisdiction to decide any and all issues arising under the Consent Decree, and any and all disputes growing out of the interpretation or application of this Consent Decree until further order of this Court. The parties, the Monitor, the Trustee/ Supervisor, the GEB Attorney, or the United States, may apply to this Court for any order necessary or appropriate to implement this Consent Decree, including orders preventing nonparties from interfering with the implementation of the Consent Decree. The parties, the GEB Attorney, the Monitor, the Trustee/Supervisor, and the United States shall have the right to intervene in the event of any and all disputes growing out of the interpretation or application of this Consent Decree.

Definitions

    6. Any reference in this Consent Decree to the term "Monitor" shall be construed to be a reference to the Monitor whose powers and duties are defined below.

    7. Any reference in this consent Decree to the term "Adjudications officer" shall be construed to be a reference to the Adjudications officer whose powers and duties are defined below.

    8. Any reference in this Consent Decree to the term "Trustee/ Supervisor" shall be construed to be a reference to the Trustee/Supervisor whose powers and duties are defined below.

    9. Any reference in this Consent Decree to the term "employee pension benefit plan" or "pension plan" shall be

6

construed to be a reference to any "employee pension benefit plan," and includes, but is not limited to, such plans as are defined in 29 U.S.C. § 1002(2) and any pension plans covering governmental employees.

    10. Any reference in this Consent Decree to the term "employee welfare benefit plan" and "welfare plan" shall be construed to be a reference to any employee welfare benefit plan, including, but not limited to, such plans as are defined in 29 U.S.C.§1002(l) or any welfare plan covering governmental employees.

    11. The term "United States" as used in this Consent Decree means the United States of America, by and through the United States Attorney for the Northern District of Illinois or any assigned Assistant United States Attorney for the Northern District of Illinois, or any attorney employed by the organized Crime and Racketeering Section of the Department of Justice or any other attorney assigned by the United States Attorney General. Any requirement in this Consent Decree to submit reports or other documents to the attorneys f or the United States shall be construed to require submission of such reports and documents to the United States Attorney for the Northern District of Illinois.

    12. Any reference to the term "CLDC and its affiliated entities" in this Consent Decree shall be a reference to the District Council, its affiliated Local unions and any LIUNA member, officer, or employee serving as a trustee or employee of any of its affiliated employee pension benefit plans, employee welfare benefit

7

    13. As used in this Consent Decree, the term "knowingly associating" shall mean that: (i) an enjoined party knew or should have known that the person with whom he or she was associating is a barred person; (ii) the association was more than fleeting or casual; and (iii) the association related directly or indirectly to the affairs of the union. A "barred person" is (i) any member or associate of any La Cosa Nostra crime family, or (ii) any person prohibited from participating in union affairs. Nothing in this paragraph shall preclude: (i) an enjoined party from meeting or communicating with a barred person who is an employer to discuss the negotiation, execution or management of a collective bargaining agreement, or a labor dispute, when the enjoined party represents, seeks to represent, or would admit to membership the employees of that employer; (ii) an enjoined party from meeting or communicating with a barred person who is a representative of a labor organization to discuss union matters; (iii) an enjoined party from meeting or communicating with an officer, employee or member of LIUNA and its affiliated entities; and (iv) an enjoined party from meeting or communicating with a relation by blood or marriage for solely social purposes, provided that in all such instances, reasonable prior notice of such meeting or communication is

8

Union Action

    14. Permanent Injunctions: All current and future officers, agents, representatives, employees and members of CLDC and its affiliated entities are permanently enjoined:

(a) from committing any act which is defined as an act of racketeering as defined in 18 U.S.C.§1961(l);

(b) from knowingly associating with any member or associate of the LCN or with any barred person;

(c) from knowingly permitting any member or associate of the LCN or barred person to exercise any control or influence, directly or indirectly in the conduct of the affairs of the CLDC and its affiliated entities except in the circumstances set forth in paragraph 13; and

(d) from obstructing or otherwise interfering, directly or indirectly, in any way or degree, with the work of anyone who is appointed under this decree, or working under their direction and control, or from interfering with the efforts of any officer, attorney, or employee of the CLDC and its affiliated entities in effectuating the terms of this decree

9

or in attempting to prevent the LCN from exercising influence on the conduct of the affairs of the CLDC and its affiliated entities.

    15. LIUNA Internal Reform Officials: Pursuant to the LIUNA Ethics and Disciplinary Procedure which was implemented as part of LIUNA Is internal reform program, the GEB Attorney and the Inspector General have been given the power by the General Executive Board of LIUNA to initiate and conduct investigations to remove organized crime and all other criminal elements as a source of influence in the affairs of LIUNA. Recognizing the success of the efforts of the Inspector General and the GEB Attorney in attacking organized crime influence in the CLDC and its affiliated entities and the substantial commitment of time and resources they have made, the Monitor may designate the GEB Attorney or the Inspector General to act on his behalf to investigate and prosecute charges under this decree whenever it is reasonable or efficient to do so. Whenever the GEB Attorney or Inspector General acts pursuant to a delegation of authority by the Monitor, he shall have all the authority granted by this decree to the Monitor. When a case is formally referred by the Monitor for investigation or prosecution, the GEB Attorney shall file a written report on the status of the investigation/prosecution with the Monitor and shall also provide a copy to the United States. Notwithstanding any delegation to

investigate or prosecute, no charge may be brought under this decree without the consent and approval of the Monitor. The Monitor must also approve of the disposition or settlement of any

10

The Monitor

    16. This Court appoints Steven A. Miller as Monitor. If it is necessary to appoint a replacement for the Monitor, the Court will appoint a replacement after receiving a joint nomination from the parties. If the parties cannot agree on a joint nomination, the Court may consider individual nominations from the parties. The mandate of the Monitor is to investigate and oversee the investigation and prosecution of charges arising under this decree in order to remove organized crime and all other criminal elements as a source of influence in the affairs of the CLDC and its affiliated entities.

    17. Powers: The Monitor shall have the right and power to conduct and oversee the discharge of those duties which relate to investigating and disciplining officers, agents, representatives, employees, and members of the CLDC and its affiliated entities for the purposes of complying with this Consent Decree and fulfilling its mandate. The Monitor shall also rule on the eligibility to run for and hold office in the CLDC.

    18. Reporting Requirements: on a quarterly basis, the Monitor shall file a written status report with this Court regarding the actions he has taken toward achieving the objectives and purposes of this Consent Decree. Copies of this report shall be provided to the parties, unless a conflict of interest precludes such notification, and the United States Attorney for the Northern

11

    19. Delegation of Authority: The Monitor may delegate any of his authority under this decree to persons selected by him, in his discretion, for their skill and experience in the investigation and prosecution of organized crime corruption. In accordance with paragraph 15, above, the Monitor may delegate his authority to the GEB Attorney, the Inspector General or their staff, where it is reasonable and efficient. No disciplinary charges may be brought or settled, or any subpoena issued without the approval of the Monitor. This approval authority may not be delegated.

    20. Disciplinary Powers: Consistent with his mandate as set forth in paragraph 16 above, the Monitor, either directly or through his delegees, shall have independent authority to investigate the operations of the CLDC or any of its affiliated entities and to initiate disciplinary charges against any officer, agent, representative, employee or member of the CLDC or any of its affiliated entities. In connection with these activities, the authority of the Monitor under this Consent Decree includes the same authority to initiate and conduct investigations and to initiate prosecutions as the GEB Attorney and Inspector General have under the LIUNA Ethical Practices Code, the LIUNA Ethics and Disciplinary Procedure, the Amended Job Referral Rules, and any other provision of the LIUNA Constitutions. Charges may also be brought for a violation of the injunctions adopted in paragraph 14 of this Consent Decree. Under this paragraph, charges may be

12

    21. Investigative Powers: The Monitor shall have the authority to take such reasonable steps as are lawful and necessary to be fully informed about the activities of the CLDC or any of its affiliated entities. To carry out his responsibilities under this Consent Decree, the authority of the Monitor includes the same rights and powers to initiate investigations, conduct investigations and prefer charges as the GEB Attorney and the Inspector General as set forth in paragraph 15 above.

(a) The Monitor shall have the discretion to refer allegations of misconduct by any officer, agent, representative, employee, or member of LIUNA or its affiliated entities to the GEB Attorney and to the United States.

(b) The Monitor shall have the discretion to assume jurisdiction over any matter referred by the GEB Attorney or Inspector General that relates to any officer, employee, or member of the CLDC or its affiliated entities.

13

(c) The Monitor shall have the authority pursuant to IS U. S. C.§1965 (b) , to issue subpoenas f rom this Court under this case name and number to any person or entity for the purpose of compelling testimony and requiring the production of books, papers, records or other tangible objects at hearings conducted by the Adjudications Officer.

    22. Review and Qualification of Candidates: Any candidate seeking to run for office of the CLDC must declare his candidacy according to procedures promulgated by the Trustee/Supervisor pursuant to paragraph 32 of this decree. The Monitor, after consulting with the Trustee/ Supervisor, the GEB Attorney, the LIUNA Inspector General, and the United States shall have the authority to disqualify any prospective candidate based upon a determination that the candidate's service in office would: (a) constitute or further an act of racketeering, as defined in 18 U.S.C.§1961; (b) further or contribute to the association, directly or indirectly, of any member, employee, or agent of the CLDC with any element of organized crime; (c) be contrary to or constitute a violation of labor law or ERISA; or (d) be inconsistent with the purposes of this Consent Decree. The Monitor may also disqualify a candidate if he or she fails to meet the qualifications set forth in Article VI Section 1 of the LIUNA Uniform District Council Constitution. Any decision of the Monitor to disqualify a candidate shall be subject to review by the District Court pursuant to the standards set forth in paragraph 39 below.

    23. Access to Information: The Monitor or his delegee shall

14

have the unfettered right to attend all executive board or general membership meetings of the CLDC. In addition the Monitor shall have the following additional rights: examine and copy all books and records of the CLDC and its affiliated entities; conduct interviews; receive and share information from law enforcement entities or any other component of the United States Government to the extent permitted by law; take sworn testimony; compel attendance at depositions and hearings. In addition, the Monitor shall have all rights and tools available to him under the Federal Rules of Civil Procedure.

    24. Staff: The Monitor shall have the authority to employ such personnel as are reasonably necessary to assist in the proper discharge of the duties imposed by this Consent Decree.

    25. Term: The term of the Monitor shall be for two years from the time of his appointment subject to the right of any party to petition the Court for a finding that the presence of the Monitor is necessary for a longer period to achieve the purposes of this decree. However, the Monitor shall retain his authority to resolve to completion all charges filed by the Monitor on or before the date on which the Monitor's term would otherwise end.

The Adjudications Officer .

    26. The Court appoints Seymour F. Simon as Adjudications officer. if it is necessary to appoint a replacement for the Adjudications officer, the court will appoint a replacement after receiving a joint nomination from the parties. If the parties

15

cannot agree on a joint nomination, the Court may consider individual nominations f rom the parties. The mandate of the Adjudications officer is to conduct hearings relating to charges brought pursuant to the grounds set forth in this decree. To achieve this mandate, the Adjudications Officer shall have the following powers, rights and responsibilities:

    27. Hearing Procedures: At any hearing conducted by the Adjudications Officer, the following procedures shall apply:

(a) Hearings before the Adjudications Officer shall be initiated by the filing of a written specific charge by the Monitor which shall be served upon the charged party.

(b) The charged party shall have at least 30 days prior to the hearing to prepare a defense. The Adjudications officer shall endeavor to conduct the hearing within 60 days after the filing of charges.

(c) The party charged may be represented by counsel at the hearing.

(d) A fair and impartial hearing shall be conducted before the Adjudications Officer in accordance with the LIUNA Ethics and Disciplinary Procedure.

(e) The hearing shall be conducted under the rules and procedures generally applicable in labor arbitration proceedings and decisions shall be made using a "just cause" standard

(f) The Adjudications officer shall have the authority pursuant to 18 U.S.C.§1965(b), to issue subpoenas from this Court under this case name and number to any person or entity for the purpose of compelling testimony and requiring the production of books, papers, records or other tangible objects at hearings conducted by the Adjudications Officer.

(g) The Adjudications Officer may require any component of LIUNA, or its affiliated entities, including the CLDC, or any officer, agent, representative, member or employee of LIUNA or any of its affiliated entities to produce any book, paper document, record, or other tangible object for use in any hearing conducted by the Adjudications Officer. Any failure by LIUNA or its affiliated entities to comply with any such request may be used by the Adjudications Officer to determine whether such -entity should be subject to the imposition of trusteeship, supervision, or discipline, as appropriate.

(h) All testimony and other evidence shall be received by the Adjudications officer under oath and shall be subject to the penalties of perjury to the same extent as if such evidence was submitted directly to the Court. The Monitor bears the burden of proving his charges by a preponderance of the evidence. The Adjudications Officer may review, consider and rely upon evidence presented in camera.

17

    (i) If any person who is the subject of an application for imposition of discipline, refuses to testify or to provide evidence before the Adjudications officer on the basis of his privilege against self-incrimination, discipline may be imposed by the Adjudications Officer on such person for that reason alone, consistent with the Code of Ethics of the American Federation of Labor-Congress of Industrial organizations, as adopted by LIUNA in 1958. Also, failure to testify or provide evidence in the absence of a valid claim of privilege may be the basis for discipline. Any person so refusing to testify or provide evidence before the Adjudications Officer may also be subject to punishment for contempt of court upon application to the Court by the Adjudications Officer.

    (j) At any hearing before the Adjudications Officer, the Adjudications officer may receive and consider, attaching such weight as he deems appropriate, the sworn testimony of any law enforcement officer regarding information given to a law enforcement agency by a reliable confidential source of information. In no instance shall such officer be required to reveal the identity of t he confidential source of information.

    (k) Any discipline imposed by the Adjudications Officer, or other decision of the Adjudications Officer, shall be final and binding on the parties to the hearing subject to review by the Court.

 

(1) copies of all decisions, opinions and rulings shall be made available to the Court, the GEB Attorney, the Trustee/Supervisor, and attorneys for the United States.

    28. Appeals of Adjudication Officer's Decisions: Any decision of the Adjudications officer shall be final and binding, subject to review by this Court. For a period of up to fourteen (14) calendar days af ter the mailing of the Adjudications Officer' s decision any person, party, or entity aggrieved by the decision shall have the right to seek review in this Court.

(a) The Monitor and the Adjudications Officer may request that the United States assist in any manner to carry out their responsibilities and mandate under this decree, including asking the United States to represent them in any proceeding before the Court or to provide any legal assistance or advice.

19

(b) The Monitor may apply to the Court for appropriate sanctions against any person who (i) has failed to comply with any of the Adjudications officer's decisions or orders, or (ii) has obstructed or interfered with him or anyone else appointed by the Monitor or Adjudications officer in the exercise of their duties under this Consent Decree.

    30. Staff: The Adjudications Officer shall have the authority to employ such personnel as are reasonably necessary to assist in the proper discharge of the duties imposed by this Consent Decree. To the extent that authority under this Consent Decree is granted to the Adjudications Officer, that authority is also delegated to personnel hired or retained by the Adjudications Officer to carry out his mandate under this Consent Decree.

    31. Term of office: The term of the Adjudications Officer shall be for two years from the date of appointment subject to the right of any party to petition the Court for a finding that the presence of an Adjudications Officer is necessary for longer period to achieve the purposes of this decree. However, the Adjudications officer shall retain his authority to resolve to completion all charges filed by the Monitor on or before the date on which the Adjudication officer's term would otherwise end.

The Trustee/Supervisor

    32. The Court appoints Robert E. Bloch as the Trustee/Supervisor to administer the daily operations of the CLDC. His powers include, but are not limited to, all powers granted to

20

a Trustee/ Supervisor under the respective provisions of Article IX, section 7 of the LIUNA international Union Constitution. The Trustee will also have the duty to establish election rules and procedures, and to call for and run elections for the CLDC pursuant to the approval of this Court. iiie Trustee will schedule an election of officers as early as six months, but in no event later than 12 months, after the entry of the consent Decree. The Trustee will promulgate rules and procedures for the election. The Trustee will resolve disputes relating to the election with the exception of issues relating to candidate eligibility, which shall be resolved by the Monitor prior to the scheduling of an election date. The Trustee will also certify the results of the election for the officers of the CLDC to the Court. After the election, the Trustee shall have his title changed to Supervisor and he shall supervise the actions of the elected officers of the CLDC to assure that the goals of this Consent Decree are fulfilled. The Trustee/Supervisor shall also have the right to hire appropriate staff to discharge his duties under this decree and to seek court orders necessary or appropriate to enforce this Consent Decree.

    33. Term of office: The term of the Trustee/ Supervisor shall be for two years from the date of his appointment by the Court subject to the right of any party to petition the Court for a finding that the presence of a Trustee/Supervisor is necessary for a longer period to achieve the purposes of this decree.

The United States

21

    34. The United States has the right to intervene in any matter or to appeal any decision arising out of this Consent Decree. The United States, in its discretion, may choose to assist the GEB Attorney, the Inspector General and the court authorized officers in the performance of thei~7-duties. The United States may appeal decisions of the Adjudications Officer to the Court. The United States may, if requested, 'also agree to represent any party or entity before this Court concerning any matter arising out of the subject of this decree.

Miscellaneous Provisions

    35. Compensation and Expenses,: The compensation, cost and expenses of the Adjudications Officer and Monitor, and of all persons hired under their authority, shall be paid by the CLDC, which may agree with LIUNA to apportion the payment of costs. In the event that the compensation and costs of the Monitor and persons retained by him, other than persons retained or employed by the GEB Attorney or LIUNA Inspector General, exceed $140,000.00 during any four month period, he shall obtain Court approval for the additional expense after explaining in writing the need to incur such expense.

    36. Indemnification, : The CLDC shall purchase a policy of insurance and/or bonds in an appropriate amount to protect the Monitor, Trustee/Supervisor and Adjudication Officer, and any persons hired by or acting on their behalf, from personal liability.

22

for any of their actions on behalf of the CLDC or any other action taken in connection with the exercise of duties under this decree. If such insurance is not available, or if the CLDC so elects, the CLDC shall indemnify the court authorized officers, and any persons hired by or acting on their behalf, from personal liability (and costs incurred to defend against any claim of liability) for any of their actions on behalf of LIUNA or pursuant to this consent Decree. in addition, the court authorized officers, and any persons hired by or acting on their behalf, shall enjoy whatever immunity from personal liability as may exist under the law for court officers.

    37. Future Actions: Nothing in this Consent Decree shall preclude the Government, or any of its departments or agencies, from taking any appropriate action in reliance on any federal law, including any criminal investigation or prosecution or civil action.

    38. Scope of Decree: This Consent Decree determines the rights of the parties hereto and concerns the affairs of the CLDC, its officers, employees, and members. Nothing, except as is specifically mentioned in this decree, shall be construed as creating any right, title or interest accruing to any third party, except the court authorized officers and any persons retained by any such officers to assist then in fulfilling their duties as described in this Consent Decree.

23

    39. Communication with officers: The court may communicate ex parte with any of the judicially appointed officers.

    40. Non-Admission Clause: Nothing herein shall be construed as an admission by the defendant or any signatory hereto of any wrongdoing, or of the truth or validity of any of the claims or allegations contained in the complaint, or any other papers filed or submitted by the United States in this action.

    41. Merger. This Consent Decree constitutes a final written expression of all terms of this Decree and is a complete and exclusive statement of those terms.

ENTER:

_________________________________
Robert W. Gettleman
United States District Judge