A former labor union local president has been accused of taking hundreds of thousands of dollars in kickbacks from union health providers, the New York Times reports:
Hector Lopez, the former president of Local 8a-28a, which represents metal polishers, sign painters and other tradespeople, set up an elaborate money-laundering operation involving several companies that funneled secret payments to him, according to a 29-page indictment that was unsealed in Federal District Court in Brooklyn.
In the most serious kickback scheme, Mr. Lopez, 54, is accused of accepting $740,000 over a seven-year period in exchange for guaranteeing one company the contract to administer the union’s benefits fund. The indictment did not name Mr. Lopez’s alleged accomplices or the names of the companies involved.
Lopez also betrayed members by allowing one company to overcharge the local union for renovations on a union hall. He is being held on $1 million bail in connection to the 15-charges of money laundering and fraud.