January 9, 2011
Dennis Walsh,
Your aggressive approach to ending the miss-use of funds by officers at the
District Council and Local Unions as well as holding those officers accountable
has been very promising. This is the memberships dues and assessment money
and is not the officers personal bank account. One of the funds I have not seen
mentioned yet is the Political Action Committee (PAC) fund. The PAC is funded
by money from a membership assessment of 5 cents an hour. I have spoken to
many delegates and several executive delegates they all told me they had never
seen a detailed report on the PAC fund expenditures. In fact the executive
delegates did not know credit cards even existed and never approved paying the
bills. I was also told that the only 2 expenditures approved, other than standard
expenditures, were Lobby Day in Albany and the NYS AFL-CIO event in
Saratoga. So I took it upon myself to review the records for 2006 thru 2010 on the
NYS Board of Elections website file #401226 NYC District Council of
Carpenters PAC. What I found is certainly questionable and may well be criminal.
I looked at two specific expenditures, credit card payments and reimbursements to
the District Council. The first thing that drew my attention was the box for
explanation of expenditure is left blank on all of them.’ also noticed that all
political contributions, promotional material, shirts and printing were all payed by
check. So what were the credit card bills and reimbursements to the DC for?
Below i alist ofthe expenditures for each year I reviewed and T am asking you to
investigate them:
Year Ending 2006 2007 2008 2009 2010
Credit Card Bills $47,215 $51,740 $78,205 $54,197 $3,601
Reimburse to DC $341,103 $366,173 $376,971 $442,322 $115,882
From 2006 thru 2009 these unexplained expenditures were between
$400,000 and $500,000 each year. In 2010 while under International supervision
these expenditures were considerably: less. This leaves me with two questions to
be answered:
1, From 2006 thru 2009 was Steve McInnis (PAC Director) and other officers
using the PAC fund as slush fund and were they violating NYS election law.2. Why were these expenditures considerably less in 2010 than in the previous 4
years? The obvious answer is that Frank Spencer and Terry Mooney found
something questionable or maybe even criminal and corrected it, While I
commend Spencer for finding and fixing the problem, I’m wondering if he turned
it over for further investigation as the Consent Decree and all subsequent
Stipulations and Orders mandate?
In closing I am requesting that you conduct a thorough investigation into the
PAC fund expenditures, their legitimacy and their benefit to the membership.
Also Frank Spencer and Terry Mooney should be investigated for possibly being
in contempt of court for failing to turn over for further investigation questionable
and maybe even criminal expenditures of the PAC fund. There should also be an
inquiry into any Campaign Finance Laws that may have been violated.
Anonymous For Fear of Retribution
cc Honorable Richard Berman
Lisa Zomberg Asst. US Attorney
Ben Torrance Asst. US Attorney
Douglas McCarron UBCJA
Gregory Petterson Chairman NYS Board of Elections