601 Te Set, W.W, ‘elf Recrenbach Sammunications on, 2.6, 20003-2707 Secretary Treasurer ee eee AFL-CIO, CLC. Small “fechensnon @ovncnin xg March 24, 2011 vie President, CWA Local 1101 Mere 1101 Patrick Gibbons Business Agent, CWA Local 1101 Re: For Gibk BF APpointment of Temporary Administrator for CWA Local 1101 Dear Messrs McAleer, Luzai & Gibbons: appoints REStie Board has reviewed your March 1, 2011 request to bt en 73 , Section 3b) ofthe CWA Constiration, ed Or by Artilo xan, darned eee OU emda es eqs wh ar addressed below. etn sn nAS 70 erent tinding Siereemnair ud irene eres and, ‘OF Participated in Local's erw and iutive Board members for many years, gal camscnSP® eran oe of Local 1101 wi oy and illegal cat Act, iachading President Jona Connolly, mec am Day eneeate Pecan, ea, James ‘Trainor and ‘Treasurer Teny “among others,” foul state these officers “and otiera" hey Sane age eae ee ey | as 8 1(g), (b) and @and2 of the Syn Coaettution and Article an geo 9 1 Local Bylaws and Rules, oe = ded | . nl it tr shen ea { Talsed” with the National Union and the Local 1107 Executive Board and | / ! Tort “woot eho Lute 3oWeMr. Joseph McAleer Mr. Al Luzzi Mr, Patrick Gibbons March 24, 2011 Page 2 and Bob Barbarelli wrote to On December 9, 2010, Local 1101 members Ruowo fled charges with the CWA Secretary Treasurer accusing hoon L728 39ve TOUT 7WoOT wo esptezaete Kevin Condy and Alphonse 22:0 rraz/8z/eo 1 |Lea 3¥d trick Gibbons Patri March 24, 2011 Page 3 a2 officers Connolly, Feliciano, James Trainer, Daly, Manley, Fiumano, SisGill and Pyzesid of violating Article XIX, Section U0) and 19 of the CWA Constitution. On January 3, 2011, the CWA Tragtive Hoard appointed a Prosecutor, David Palmer, to iaressag ts ‘those charges. On January 17, 2011, Mesers, Condy and Russo ord ‘two other Local 1101 members, Keith Purce and Jerome Peredes, fled onal, related charges which were referred by the CWA Brntay Board to Prosecutor Palmer on January 21, 201), ‘These charges donor ceftain democracy issues whicit have been raised agets in your letter, {he referendum mull and void because it did not confers to the ‘memberuhip's stated wishes at the November 23, 2010 meeting, Souiee 1a 20, 2011, Local 1101 member Douglas Grant fled chargeo against Local 1101 officers Connolly, Feliciano, Manley, Trainor and pntinets Agent Tony Fiumano and Chief Stewards Heather Teiee Farreal and Wiliam Nobeling accusing thera of violating Atcle 2G, Sections 1), (a) and!) of the CWA Constivaton. On February 15, sreauite CWA Executive Board appointed Vie Waller as Prose te gate thees charges which cancerned allegations of eva of toon T1Ok etx Gannon and Prosecutor Felner met with offcera of Local 1101 on December 17, 2010 and again on Fobruary 7, 8 and 17, 2011, 7 Caudition to information provided ty Local 1101, Ms. Gannon reviewed CWA internal ues records (CWA's Form H-166) a8 well ay other Janay 7 dan a 7 ater, Including a tape recording provilos oe Jasmaty 7, 2011 by Locel 1101 Vice President McAleer of an undated ‘wephove converation (which he described as beng atleast oes i | | 1192/82/60 TOUT O07 vO ispireeate —9z:0Twhich he had with Local 1101 President Joe Connolly, To specifically address the charges of “double dipping.” CWA alao asked Vorens Pros nce Payroll recorde for thoee Local officer who were alee Verona cemnyayees during the period from 2006-2010 but the company seted to cornply with that request, In lete February, 2011, CWA was notified the U.S. Department of Labor's Ofice of Labor: Management Stasdorae (DOL" that it was , Sees arene ‘The resulta of CWA’s investigation to date have been carefully considered By {he CWA Enscutive Board A summary of that Report Is atechod so hhas also been provided to the officers of Looal 101° Gocumentation or receipts. As such, it reprovente nesee income to | the . q Peleg when ABT, 2008, the Local anand a Remabngaed opening { Polley which Casited that the 8225 is Intended to componente eee | fl 2/82/68 isptezeete —azipT 110 TOT WOOT HO 21/70 30¥dtrick Gibbons March 24, 2011 Page § “use of their personal auto, including mileage, gia, insurance, tolls and tig fared in th natal cule eek eee (2) Establishing a 401(k) Plan for officers sind Executive Board Spent aang eNO athe a sation (including the expense year. ah no ver eed pes ee a eal 1 ts significant amount of additional though it algo represents, of compensation ‘duals over and above that epecitied in Article XXII of the Local's Although this Plan was approved by the Local's Executive Board, this slone is not enough to eatiefy concerns since the approve it were the be ofthe Plan. The CWA Exsoutive Board has the Local to coase ‘further contributions to this Plan until such time aa the Local menabersbip has approved this form of compensation. 3) the path many expenses submitted for reimbursement appear to contain the proper justification of businesg se and listing of ts, it appoars that some expenses were inadequately Sree Selected imprudent use af Local funda, auch ns eee, porto or day eleeng an average meal cost in exe of 5G per Parvon or daily hotel charges of $600 a night at the CW, Convention for ‘Stays at hotels other than the CWA Convention hotel ‘Because of these concerns about the late use of Local funds, the CWA Executive Booed bas determined ta ceignace ctr, acting as the Board's designee, {prove onenng nana oversight afficer acutance and authority to the Local on matters ‘compensation and expense reim! to ensure that the int ate of the members indie eoed & the tse and disburastnent of Local ace This ape teens 80 Dean takd to aavit the Local in taki “Sees to ensure that future membership mectngs and meshes 1 W007 wHO espiezeats zt. T1ezvez/e0 tor “1/se svwithin the Executive Board's authority under Article IX, Sections 41d), (€), (ke) and ofthe CWA Congiitution and ie intended to ensure that tre (ea See Cand with ita obligations under asticlo XM, Sections 9 aris shout a tite Board's appointment of@ Monitor wil address its conceems seat, financial overaight {anew that surfaced during CWA i fe well as the recommendations made by Prosecutor yeeet2 — aztbT 1/38 3Ovd TOIT WOOT vO asp ‘ i | r1ae/ez/e02128 3o¥E ‘Ms. Joseph MeAleer Mr. At Luzi Mr. Patrick Gibbons March 24, 2011 Page 12 TOT WoO sho. asptezaate ezint 192/82 /2021/88 39¥e November 18, 2010 Avenue, 17% Floor ‘New York, New York 10001-6708 Re: Request for Audit Dear Joe: Sl oF ae ee aguas Hom Oars of Local 1101 asking that an interests of te Cee at ls necessary to protect the members preslwy Ce ‘Among the reasons cited for the request are the folowing; 2 ongring requests for tnformation about Local nancial transactions, the issuance and use of corporate credit cards, have not been satisfactorily answered; 3, tatlure to provide the membership with about the Local's financial obligations we Oana eimatica reservess Mabie finanela fo ittcatioms concerning the use of Local to often for personal expenditures have not been satshetny HT WoO aM uspipesatz zit 10 razz eoJoseph Connally November 16, 2010 Page 2 &. sUuestions conceming the use of Local funds for office of reconstruction and the amount costs have not been ‘satisfactorily answered. Preliminaty = ‘an appointmens a officers, Plauze coopershe Ral eae ad to tall: you and ather ‘with this request, so that these matters can be promptly addressed, {Im addition, Article XIN. Section 9(cn) of the CWA each Loca tanta sae Sth ‘Constitution obligates in addition, please advise as to how this financial, was communicated to the Local's membership each yes “etoe feel fee tn call me tyou have any queetions about this situation, ‘Sincerely, woo wo dsptezaste sit t1az/azyeo Tort 21/68 o¥dSUMMARY OF CWA INVESTIGATION INTO REQUEST FOR TEMPORARY ADMINISTRATION AND RELATED MATTERS CWa's investigation began in November, 2010 and has continued ‘March, 2011. “CWA examined Local CWA examined payroll records for 14 indivichuals fll of the Local officers and charged ‘which were provided to CWA by Local 1101 for the six year period. CWA first compared those recards with its dice a Asptezaste — eztpt_ t1az/aze1 TOT WoO SHO. 21/81 3D¥eManley and to have worked 40 hours, wee rand had dues deducted by Verizon per the H-160 ipo ot ease Fanvantited, were paid 40 hours per week by the Local aft thar retirement, ae vent to ebtatn more accurate mformation on the issue, CWA Gaked Veriton to produce payroll records for the 14 individuals boy soe Senay refltsed to do wo. CWA also asked each of the indtvidete Venmeated i they would be willing to provide tax returns: Wd fata or year perpaytol stubs to very thelr Verizan compensation dung ies ng Sime CWA te cums. Some aaid they would do so, while others ihrces: tae saa 1s unable to compel production of these materials Bree tee that obany the individual, iis not possible to reach the Coie, The DOL Wn guble vouchering by some ofthese individuals toot oar FPR DOL is locking nto this tose and wil be able to conaval of the matertals determination, Because the ongoing DOL, investigation specifeally cludes “double dipping” Gicsations, CWA determined to defer further tngaty eee on {tie subject pending the outcome ofthat investigation, @) jdlseatlone Rearing the “Union Rulers und," CWA‘ {Rterviews with Local officers and athere included ” the fanaa Whether monies were contoted vauntanth aot eee, TOIT WOOT vO ispirzeatz —8ztbT AUT Bova 11az/@z/e8et/et BoWd sbursed to ‘were active contbutors, as of January 1, 2010 using a pro rata formula based on Fond. CWA's investigation indicates that Local 1101 officers received. that Fund in 2010, of Fund was misused and CWA does not believe that tt hag farisdi¢tion co ibegh a copy ot Lees eg vag volun Although a 8 1988 check was provided indicating 2 contribution to Uae Fund fore ake 7A Local Unions Supplemental Fension Severance Fund Trust, CWa's inquiry was fimited to review of Tecords covering the past cix years. CWA provided a copy of that check to the DOL investigator. (3) “Lack of Democratic Procedures," Membership Meeting on November 29, 2010 and Bylaws Referendum, It was alleged that Local 1101 members have bee enable @ {2 Gmale their opinions and grievances known" because of a pattern of “tnefiective and irregular’ general membership meetings in Part, from a membership meeting quorum requirement of 10% of the CWa's records indicate that this quorum has boon in place since at least 1964 but this is the Sret time that any Questions oF concerns about tt have bean raised with the National Union, quorum was wras not allowed to vate on a series of motions properly made and seconded at that meeting. Palmer ‘that future regular or apecial membership be conducted in a Semper win a hs mss ne 9 a dng 7 Prosecutor Palmer ‘that the Local review hg 10% quoru requirement (x effect atnoe at leaut 1964) 69 Spee anna ape Constitution do not address the: raised, utor TOIT O07 ¥NO espircoate eciet ttazez/e@Let Sava 4 Rrocess. The CWA Exeoutive Board has that report and has directed the Local to votd the results of tne beret sport and floes azpear that they are staffed and mect regulary, as we ist af the Committees and their current members provides Wy Rote attached, Local @ Financial and Aceounting Issues, @ Executive Committee,” ‘Sorparate credit card expenditures and costs of recent renovation project at the Local's oflnes Se Nev se 1 wo? wo sspivzests zip. 1192/82 /eR torLU/PT Bove Cane oF not thie was the cave, Local affcers di fully cooperate with Se Ain providing all relevant recards requested by Serlos Preece, Director Gannan during the course of CWA's inveatigation, as decerhed Sone eApensen, a8 well as submitted to the a of other business expenses for which officera were indicates that in most cases, but not all, sufficient evidence Fra business-related purpose was pregerited to justify reimbercer some specific vouchers and expense aDpearaa or exceesive spending, such as dinner expenditures Local officers ‘Person costs in excess of 8225 and 8600 room expenses at the CWA Well in excess of the Toom costa at the CWA Convention hotel. CWA'e ti ee Tequesta to engure cwa's TOIT Woo wo dsptecaatz — aztpt. 1192/87 /e06 approval er Gon 2 cease farther expense allowance payzssnts peeing ‘approval by the membership for such additional officer compencetns tseue not raised by the request for ~ the of whether Local 1101 members ever approved of a 401(k) Flan fe" and employees, As of December $1, 2010, 23 Local 110% employees Were participating in thie Pian to which. an total yeary ae ogra to fiteen (16%) percent ofthe employee's total yearly compensation (including the discxisced above). ‘appears in the Local's ‘that ‘Phe CWA Exncutive Board has determined that imposition of'a at Local 1101 ts not warranted at this time, eka arg as dlrected President Coben to appoint a Monitar acting on Pebalf of the Board, to warts directly with the Local 1101 offiese ts of ofler compensation and expense reimbursement to ensure that ar espiezeste —8z:Pt TOTT woo WHO L/St evs 192 /az/e0LUST 39¥a 7 Local Range Members are fully reflected tn the use and disbuirsemente of ‘The CWA Executive Board has also adopted : the Report and o David democratic at ths November ‘concerne about and has dirécted that the ohn ee TOIT "WOOT wD uspipzeate —eztbT 1122/82/60)‘Local 2202, CWA Committers Committee On tquity ll Cordova awn Sikfas Richard! Gerard in Sa Shavonda Mack Tom Balad Organizing Keith Hogarey sim Trainor keith urce Scholardhip Teny Daly Angel Felidana eUet 3804 TOIT "WoO? ¥HO lection Committee Pete Torres ‘Anthony Barres espipzeate eater Tez /ez 60