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PATRICK ADAMS, individually, andon behalf of all others similarlysituated;
Plaintiffs,
vs.
INTERNATIONAL UNION OFOPERATING ENGINEERS, a tradeunion;JAMES T. CALLAHAN, anindividual;BRIAN E. HICKEY, an individual;WILLIAM C. WAGGONER, anindividual;PATRICK L. SINK, an individual;JERRY KALMAR, an individual;RUSSELL E. BURNS, an individual;
RODGER KAMINSKA, an individual;JAMES M. SWEENEY, an individual;ROBERT T. HEENAN, an individual;DANIEL J. MCGRAW, an individual;DAREN KONOPASKI, an individual;MICHAEL GALLAGHER, anindividual;GREG LALEVEE, an individual;TERRANCE E. MCGOWAN, anindividual;LOUIS G. RASETTA, an individual;VINCE GIBLIN, an individual;CHRIS BROWN, an individual;
PAUL BENSI, an individual;SANDRA ACOSTA, an individual:CORNEL SNEEKES, an individual;JIM SCRANTON, an individual;DENNIS LUNDY, an individual;ABLE ENGINEERING SERVICES, a
business entity of unknown type;ABM ENGINEERING SERVICES; a
business entity of unknown type;ENRIQUE ALCALA, an individual;ED CURLY, an individual;JOHN T. AHERN, an individual;JOHN M. HOLLIDAY, an individual;KUBA J. BROWN, an individual;BRUCE MOFFATT, an individual;JAMES T. KUNZ, JR. , an individual;JAMES ZAZZALI, an individual;MICHAEL R. FANNING, anindividual;CVS CAREMARK CORPORATION,a Delaware corporation;
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TRIVANTAGE PHARMACYSTRATEGIES, LLC, a business entityof unknown citizenship;TRUVEN HEALTH ANALYTICS,INC., a Delaware corporation;KENNETH CAPEHART, formerlysued as Doe 1; and,DOES 2 through 100, inclusive,
Defendants.
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TABLE OF CONTENTS
TABLE OF CONTENTS ....................................................................................... iI.
INTRODUCTION .......................................................................................... 1
II. JURISDICTION AND VENUE...................................................................... 1III. THE PARTIES TO EACH CLAIM FOR RELIEF ......................................... 2
A. Plaintiffs ..................................................................................................... 2B. Defendants .................................................................................................. 5
1. The IUOE Defendants ........................................................................ 52. The ABM Defendants ......................................................................... 93. The Able Defendants ........................................................................ 104. Local 501-Affiliated Defendants and Related Professionals ........... 115. Caremark/PBM Defendants .............................................................. 116. Removed Defendants and Doe Defendants ...................................... 12
IV. DEFENDANTS MISCONDUCT ................................................................ 14A. Misconduct by the Able and ABM Defendants Caused Injury to Taft-
Hartley Trust Funds Created to Benefit Plaintiffs and Local 501
Members ................................................................................................... 141. Plaintiffs Discovered Evidence That ABM and Able Conspired
with the IUOE to Divert or Withhold Millions of Dollars from
Numerous Member Benefits Funds .................................................. 142. ABM and Able Conspired with IUOE to Operate Double-
Breasted and Deprive Local 501 of Members and Revenues ........ 193. IUOE Conspired With ABM and Able to Allow Them to
Circumvent Their Contract With Local 501 and Use Retired
Employees to Avoid Benefit Fund Obligations ............................... 224. Able and ABM Management Employees Are Improperly
Participating in the Central Pension Fund ........................................ 23
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5. Able and ABM Targeted Local 501 Employees Sympathetic to theResistance and This Lawsuit ............................................................ 25
B. Caremark Overcharged Local 501 Members and Other MembersNationwide and IUOE Conspired with Caremark to Make This
Possible ..................................................................................................... 261. Defendants Diverted Caremark Reimbursements from Local 501s
Health & Welfare Fund to IUOE and Imposed Caremark on IUOE
Despite the Excessive Costs ............................................................. 262. IUOE Conspired with Caremark to Force Caremark on Members,
Despite Caremarks Higher Prices ................................................... 273. Caremark Unilaterally Increased Rates to Pay for a Settlement in
Which It Had to Reimburse for Overcharges ................................... 294. Caremark and IUOE Engaged in Bid Rigging and IUOE
Threatened Retaliation Against Locals to Ensure That Caremark
Was Selected as the PBM in all of the Largest IOUE Locals .......... 315. In Addition to Unilaterally Raising Rates, Caremark Engaged in
Unfair and Deceptive Practices to Overcharge Locals Health &
Welfare Funds................................................................................... 33C. IUOE Forced Plaintiffs Serving As Officers or Employees of Local
501 and Others to Contribute to the Presidents Club/EPEC, a Political
Action Fund .............................................................................................. 34D. Plaintiffs Discovered Many Examples of Embezzlement and Asset
Diversion from Local 501 and IUOE Accounts Created for the Benefit
of Union Members, But the IUOE Defendants Undermined Efforts to
Recover Diverted Assets by Engaging in Conduct Violative of Their
Duties of Loyalty to Members ................................................................. 381. Dennis Lundy Embezzled from the Apprenticeship Trust Account 38
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2. IUOE President Giblin Protected Lundy by Providing HimEmployment at IUOE ....................................................................... 39
3. After Lundys Departure from Local 501, Audits Uncovered theSubstantial Amount of Lundys Embezzlement ............................... 39
4. Lundy Helped Operate a Sham BOMA and EPA 608 CertificationTesting System ................................................................................. 41
5. Lundy Absconded with Re-Election Campaign Funds .................... 446. Plaintiffs Advised the DOL and IUOE About Lundys
Embezzlement .................................................................................. 447. Pressure to Abandon the Lundy Investigations, Originating From
Giblin, Was Applied to Local 501; Meanwhile, the Employer
Trustees Loyal to Giblin Failed to Pursue Lundy ............................ 468. Jim McLaughlin Unsuccessfully Attempted to Appease Giblin,
Who Frequently Expressed His Intention to Kill Those Who
Challenged Him ................................................................................ 489. Giblin Forced Out the Duly-Elected Business Manager of Local
501 .................................................................................................... 5010. After the Ouster of Jim McLaughlin, Plaintiffs Again Sought
Assistance from the DOL ................................................................. 5611. Newly Appointed Business Manager Chris Brown Was Ordered by
Giblin to Fire Plaintiffs Pette and Himmelberg ............................... 6212. IUOE and Curly, Acting Under IUOE Orders, Embezzled Monies
From Local 501 Members Related to the Members Efforts to
Protect Mr. Pette and Mr. Himmelberg ............................................ 6313. Giblins Demand that Local 501 Settle the Acosta Lawsuit to
Avoid His Deposition ....................................................................... 64
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14. IUOEs Leadership Used Threats of Physical and EconomicViolence, and Suborned Perjury, to Suppress Investigations and
Usurp Control Over Local 501, All of Which Conduct Violated
IUOEs Obligations to Its Members ................................................. 65E. Professionals Under IUOEs Control Acted at the Direction of IUOE to
Harm Local 501 ........................................................................................ 74F. Giblin and IUOE Selected Zazzali to Fabricate the Appearance of
Ethical Conduct by IUOE, While Actually Using Zazzali as Another
Tool for the Oppression of Members Challenging IUOEs Widespread
Corruption ................................................................................................ 75G. Election Abuses and Related Misconduct Harming Local 501s
Members ................................................................................................... 781. Decertification Election Tampering by Giblin and IUOE at UCLA
Cost Local 501 Roughly 600 Members and Was Used as One
Pretext for Terminating McLaughlin ............................................... 782. IUOE and IUOEs Hand-Picked Operatives Refused to Permit
Local 501 Members to Nominate and Elect Delegates of Their
Choosing to Attend the IUOE General Convention in April 2013 .. 803. Curly, Capehart, and Other Incumbents, with IUOEs Help,
Conspired to Steal the Recent Election, Using Such Tactics as
Withholding State Worker Address Corrections from the Master
Mailing List Used for Ballots to Reduce Votes from Demographic
Groups Viewed as Hostile to Curly, Capehart and the Other
Incumbents ........................................................................................ 844. Rick Alcala, Leading a Separate Spoiler Slate of Candidates,
Harassed City of Los Angeles Employees Who Spoke with the
Resistance Slate as Part of His Plan to Ensure That Curlys
Incumbent Slate of Candidates Won the Election ............................ 85
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H. Defendants and Their Agents Destroyed or Removed Records ThatShould Have Been Retained by Local 501 for 5 Years ........................... 90
V. CLASS ACTION ALLEGATIONS .............................................................. 91VI.
CLAIMS FOR RELIEF ................................................................................ 96
FIRST CLAIM FOR RELIEF .............................................................................. 96SECOND CLAIM FOR RELIEF ....................................................................... 103THIRD CLAIM FOR RELIEF ........................................................................... 121PRAYER FOR RELIEF ..................................................................................... 128
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I. INTRODUCTION1. Officers of labor unions are held to the highest standards of
responsibility and ethical conduct in administering the affairs of the union.
Unfortunately, while some union officers and trustees do place members interests
above their own and act in accordance with the high standards governing their
conduct, others, as this case unquestionably demonstrates, do not. This action
arises from years of illegal activity by the International Union of Operating
Engineers (IUOE or the International) and its controlling officers and co-
conspirators. Local 501, a local trade union, and its members, were victimized by
those many years of illegal activity, both by the IUOE and local officers of Local
501 and trustees of its employee benefit plans. The unlawful abuses suffered by
Local 501 and its members takes three predominant forms. First, millions upon
millions of dollars were withheld and/or embezzled from Local 501, its affiliated
trusts, and its membership, including Plaintiffs and class members. Second, Local
501 was prevented from expanding its membership; the employers violating their
contracts with Local 501 were protected by Defendants, who were receiving
kickbacks for their protection. And, third, the membership of Local 501 was
denied the right to freely select its own officers and General Convention delegates,
through fair and honest elections.
2. The conduct of Defendants harkens back to the days of unrepentantracketeering by organized crime, which makes some sense here. The IUOE
conducts its affairs with the same disregard for others rights as the mob.
II. JURISDICTION AND VENUE3. The action is brought, among other bases, under the Interstate
Commerce Clause of the United States Constitution, and under ERISA. In
addition, this action is brought pursuant to Article 1, Section 1 of the Constitution
of the State of California and other statutes and laws of the State of California.
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4. Jurisdiction is specifically conferred on this Court by various federalstatutes including, but not limited to ERISA 502(e)(1), 29 U.SC. 1132(e)(1).Original jurisdiction lies with this Court as to the federal questions raised herein,
pursuant to 28 U.S.C. 1331.
5. Jurisdiction over any California state law claims for relief contained inthis Complaint arises under the doctrine of supplemental jurisdiction, 28 U.S.C.
1367(a).
6. Venue as to each Defendant is proper in this District becauseDefendants are engaged in interstate and foreign commerce, and a substantial part
of the events giving rise to the claims for violations of Federal law occurred in this
District, all in the course of interstate and foreign commerce. Venue is also proper
in this District pursuant to ERISA 501(e)(2), 29 U.S.C. 1132(e)(2).
III. THE PARTIES TO EACH CLAIM FOR RELIEFA. Plaintiffs7. Plaintiff Finn Pette is, and at all relevant times was, a member of Local
501. Mr. Pette also previously was financial secretary of Local 501, and a Business
Representative for Local 501. Other than as to Defendants Able, ABM, Scranton,
Sneekes, and Bensi, who were not parties to any agreement between Mr. Pette and
IUOE, Plaintiff Pette limits his claims in this action to those events occurring on or
after May 1, 2012. Plaintiff Pette was employed by Defendant ABM until 2002.
8. Plaintiff James McLaughlin is, and at all relevant times was, a memberof Local 501. Mr. McLaughlin served as a Business Manager of Local 501. Mr.
McLaughlin was the chairman of Local 501s Health & Welfare Trust, and the
Apprenticeship Trusts of Southern California and Southern Nevada. Mr.
McLaughlin was also the Vice President of the Western Conference of Operating
Engineers. From April 1998 to June 30, 2009, Mr. McLaughlin served as a Vice
President of the IUOE General Executive Board. He was re-elected by the general
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members of the IUOE every 5 years to serve as a Vice President of the IUOE. On
June 30, 2009, there were 14 Vice Presidents that served on the General Executive
Board. At the time he was forced to resign as Vice President, he was the second
most senior Vice President of the IUOE. Other than as to Defendants Able, ABM,
Scranton, Sneekes, and Bensi, who were not parties to any agreement between Mr.
McLaughlin and IUOE, Plaintiff McLaughlin limits his claims in this action to
those events occurring on or after May 1, 2012.
9. Plaintiff Daniel Himmelberg is, and at all relevant times was, amember of Local 501. Mr. Himmelberg was Chairman of the JAC, a Taft Hartley
trust fund at Local 501, and also served Local 501 as its Assistant Business
Manager. Other than as to Defendants Able, ABM, Scranton, Sneekes, and Bensi,
who were not parties to any agreement between Mr. Himmelberg and IUOE,
Plaintiff Himmelberg limits his claims in this action to those events occurring on or
after May 1, 2012.
10. Plaintiff Glenn Szalay is, and at all relevant times was, a member ofLocal 501.
11. Plaintiff Jay Brophy is, and at all relevant times was, a member ofLocal 501. Mr. Brophy is retired.
12. Plaintiff Anne Brophy is, and at all relevant times was, a member ofLocal 501. Mrs. Brophy is retired.
13. Plaintiff Robert (Bob) Fox is, and at all relevant times was, amember of Local 501. Robert Fox is a former Business Manager of Local 501 and
former Vice President of the IUOE. Mr. Fox retired as Business Manager of IUOE
Local 501 and IUOE Vice President in 1992.
14. Plaintiff John Crooks is, and at all relevant times was, a member ofLocal 501 assigned to the Las Vegas division of Local 501. He served as assistant
training director of the JAC until January 2010, when he resigned.
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15. Plaintiff Nye Nelson is, and at all relevant times was, a member ofLocal 501 and is retired from the position of Local 501 Business Agent in Los
Angeles.
16. Plaintiff Linda Pette is, and at all relevant times, was:(a) the spouse of Local 501 member Finn Pette; and,(b) a beneficiary of member Finn Pettes pension and healthcare
benefits, provided by the Central Pension and the Health &
Welfare Fund, respectively.
17. Plaintiff Judy McLaughlin is, and at all relevant times, was:(a) the spouse of Local 501 member James McLaughlin; and,(b) a beneficiary of member James McLaughlins pension and
healthcare benefits, provided by the Central Pension and the
Health & Welfare Fund, respectively.
18. Plaintiff Christine Himmelberg is, and at all relevant times, was:(a) the spouse of Local 501 member Dan Himmelberg; and,(b) a beneficiary of member Dan Himmelbergs pension and
healthcare benefits, provided by the Central Pension and the
Health & Welfare Fund, respectively.
19. Plaintiff Erik B. Smith is, and at all relevant times was, a member ofLocal 501. He was employed by Defendant Able Engineering Services until he
was terminated in and around January 2013 at least in part as retaliation for his
unwillingness to put up with the wrongful conduct of Able and/or IUOE.
20. Plaintiff Christopher Menor is, and at all relevant times was, a memberof Local 501.
21. Plaintiff Patrick Adams is, and at all relevant times was, a member ofLocal 501. Plaintiff Patrick Adams last served in the position of Super Chief
before being terminated by Defendant Able Engineering Services for cooperating
with Local 501 members actively resisting IUOEs efforts to control Local 501 and
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oppress its members. Mr. Adams was employed by Able from April 2008 to
December 31, 2012. Mr. Adams has been employed by ABM since February 11,
2013.
22. All the Local 501 member Plaintiffs identified above are participantsand/or beneficiaries in the Operating Engineers Local 501 Security Fund (more
commonly known as the Health & Welfare Fund, which describes its healthcare
benefit function) and the Local 501 Southern California Operating and
Maintenance Engineers Apprenticeship and Training Trust (more commonly
known as the Training Trust, the JAC, or Joint Apprenticeship Committee).
All Plaintiffs were participants in the Central Pension Fund, with the exception of
the spouses of members, and they are beneficiaries under the Central Pension Fund.
23. The Plaintiffs identified as members of Local 501 are also intendedbeneficiaries of all collective bargaining agreements entered into on their behalf
with employers, including but not limited to defendants ABM and Able. In March
2013, it was announced that Local 501 retirees would be dropped from the Health
& Welfare plan unless they paid the full price of coverage, which, for some retired
members, would cost at least $1,000 per month, and often much more, compared to
the several hundred dollars per month that retired members were paying for many
years prior.
24. Plaintiffs reserve the right to seek leave to amend this complaint to addnew plaintiffs, if necessary, in order to establish suitable representative(s) of the
Class proposed herein and/or any necessary sub-Class.
B. Defendants1. The IUOE Defendants
25. Defendant International Union of Operating Engineers (IUOE orthe International) is a trade union that primarily represents operating engineers,
who work as heavy equipment operators, mechanics, and surveyors in the
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construction industry, and stationary engineers, who work in operations and
maintenance in building and industrial complexes, and in the service industries.
IUOE also represents nurses and other health industry workers, a significant
number of public employees engaged in a wide variety of occupations, as well as a
number of job classifications in the petrochemical industry. Founded in 1896,
IUOE today has approximately 400,000 members in approximately 123 local
unions throughout the United States and Canada. IUOE is the 10th largest union in
the AFL-CIO. Local 501 is a stationary local.
26. Defendant James T. Callahan is the General President (GP) ofIUOE, allegedly selected in November 2011. Callahans ascension to the position
of GP was nothing than an appointment by outgoing GP Giblin, as all officers of
GEB swear allegiance to the GP and to his named successor. There has never been
a contested election in the history of the IUOE for the position of General
President. Defendant Callahan served as the IUOE General Secretary-Treasurer and
was chosen as IUOE Vice President in 2008. Defendant Callahan is also a Trustee
of the IUOE General Pension Fund.
27. Defendant Brian E. Hickey is General Secretary-Treasurer of IUOE,chosen in November 2011. Mr. Hickey has served as an IUOE Vice President
since 2001. Defendant Hickey is also a Trustee of the IUOE Central Pension Fund
and also Business Manager of Local 399, located in Chicago, Illinois. Local 399 is
also a stationary local. Defendant Hickey is the Treasurer of IUOEs EPEC
Political Action Fund.
28. Defendant William C. Waggoner is the First Vice President of IUOE.Mr. Waggoner was first chosen as an IUOE Vice President in 1980. Mr. Waggoner
is also the Western States Director and Business Manager of Local 12
headquartered in Pasadena, California.
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29. Defendant Patrick L. Sink is the Third Vice President of IUOE. Mr.Sink was first chosen as an IUOE Vice President in 2004. Mr. Sink is Business
Manager of IUOE Local 18 headquartered in Cleveland, Ohio.
30. Defendant Jerry Kalmar is the Fourth Vice President of IUOE. Mr.Kalmar was first chosen as an IUOE Vice President in 2005. Mr. Kalmar is the
Business Manager of IUOE Local 39.
31. Defendant Russell E. Burns is the Fifth Vice President of IUOE. Mr.Burns was first chosen as an IUOE Vice President in October 2006. Mr. Burns is
the Business Manager for IUOE Local 3 headquartered in Alameda, California.
32. Defendant Rodger Kaminska is the Sixth Vice President of IUOE. Mr.Kaminska was first chosen as an IUOE Vice President in 2008. Mr. Kaminska is
the Business Manager for IUOE local 101 headquartered in Kansas City, Missouri.
33. Defendant James M. Sweeney is the Seventh Vice President of IUOE.Mr. Sweeney was first chosen as an IUOE Vice President in 2009. Mr. Sweeney is
Business Manager for IUOE Local 150 headquartered in Countryside, Illinois.
34. Defendant Robert T. Heenan is the Eighth Vice President of IUOE.Mr. Heenan was first chosen as an IUOE Vice President in 2009. Mr. Heenan is the
Business Manager of IUOE Local 542 headquartered in Fort Washington,
Pennsylvania.
35. Defendant Daniel J. McGraw is the Ninth Vice President of IUOE.Mr. McGraw was first chosen as an IUOE Vice President in 2011. Mr. McGraw
also has served as the Northeast Regional Director for the IUOE and is
headquartered in Albany, New York. He is also the Business Manager for IUOE
Local 158 headquartered in Albany, New York. IUOE locals in Albany, Rochester,
Binghamton and Syracuse were merged to form Local 158. The merger was
completed in January 2012.
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36. Defendant Daren Konopaski is the Tenth Vice President of IUOE. Mr.Konopaski was first chosen as an IUOE Vice President in 2011. Mr. Konopaski is
the Business Manager of IUOE Local 302 headquartered in Bothell, Washington.
37. Defendant Michael Gallagher is the Eleventh Vice President of IUOE.Mr. Gallagher was first chosen as an IUOE Vice President in 2011. Mr. Gallagher
is the Business Manager of IUOE Local 793 headquartered in Oakville, Ontario,
Canada.
38. Defendant Greg Lalevee is the Twelfth Vice President of IUOE. Mr.Lalevee was first chosen as an IUOE Vice President in 2011. Mr. Lalevee is the
Business Manager for IUOE Local 825 headquartered in Springfield, New Jersey.
39. Defendant Terrance E. McGowan is the Thirteenth Vice President ofIUOE. Mr. McGowan was first chosen as an IUOE Vice President in 2011. Mr.
McGowan is also a Trustee of the IUOE General Pension Fund. He is the Business
Manager of IUOE Local 139 headquartered in Pewaukee, Wisconsin.
40. Defendant Louis G. Rasetta is the Fourteenth Vice President of IUOE.Mr. Rasetta was first chosen as an IUOE Vice President in 2012. Mr. Rasetta also
serves as the Chairman of the Board of the IUOE General Pension Fund. He is
Business Manager of IUOE Local 4 which is headquartered in Medway,
Massachusetts.
41. Defendant Vincent (Vince) Giblin was General President of IUOEfrom about 2005 until his retirement in November 2011.
42. Defendant John (Jack) T. Ahern is the current Business Manager ofLocal 30, located in Richmond Hill, New York. Mr. Ahern served as a General
Executive Board Member for IUOE and is currently serving on the GEB as one of
five trustees for IUOE (the trustees on the GEB are constitutional positions tasked
with monitoring the financial activities of the GEB).
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43. Defendant John M. Holliday is the current Business Manager of Local917, located in Chattanooga, Tennessee. Mr. Holliday is currently serving on the
GEB as one of five trustees for IUOE.
44. Defendant Kuba J. Brown is the current Business Manager of Local94, located in New York City, New York. Mr. Brown is currently serving on the
GEB as one of five trustees for IUOE.
45. Defendant Bruce Moffatt is the current Business Manager of Local955, located in Edmonton, Alberta, Canada. Mr. Moffatt is currently serving on the
GEB as one of five trustees for IUOE.
46. Defendant James T. Kunz, Jr. is the current Business Manager of Local66, located in Pittsburgh, Pennsylvania. Mr. Kunz is currently serving on the GEB
as one of five trustees for IUOE.
47. Defendant James Zazzali is a retired New Jersey Supreme CourtJustice. Mr. Zazzali is currently associated with the law firm Zazzali, Fagella,
Nowak, Kleinbaum, and Friedman, located in Newark, New Jersey. He was
appointed by former IOUE General President to the position of Ethics Officer in
2007. His hiring was ratified at the General Convention in 2008.
48. Defendant Michael R. Fanning is the Chief Executive Officer forIUOEs General and Central Pension Funds.
2. The ABM Defendants49. Defendant Cornel Sneekes was, at some relevant times, a management
employee of ABM. Mr. Sneekes served as an employer/management Trustee on
the Local 501 JAC board. ABM had under-contributed to the JAC Trust Fund
during many of the years that Mr. Sneekes served as a Trustee. Sneekes took no
action, as a fiduciary, to halt this conduct, to the detriment of the beneficiaries and
participants whose interests he was required to serve with a single eye.
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50. Defendant Jim Scranton was, at relevant times, the President of ABMEngineering Services. Mr. Scranton served as an employer/management Trustee on
the Local 501 JAC board. ABM had under-contributed to the JAC Trust Fund
during many of the years that Mr. Scranton served as a Trustee. Mr. Scranton
served as a Trustee for the Health & Welfare Trust Fund through at least August
2009, and then again in 2012. ABM had under-contributed to the Health &
Welfare Trust Fund during many of the years that Mr. Scranton served as a Trustee.
Scranton took no action, as a fiduciary on these funds, to halt this conduct, to the
detriment of the beneficiaries and participants whose interests he was required to
serve with a single eye.
51. Defendant ABM Engineering Services is a business entity owned byABM Industries, Inc. which has employed many class members and certain of the
named Plaintiffs, as discussed above.
3. The Able Defendants52. Defendant Paul Bensi is the CEO of Able Engineering Services and a
Trustee of the Central Pension Fund for the IUOE. Mr. Bensi, at all times relevant,
served as an employer/management Trustee on the Local 501 JAC board. Mr.
Bensi has served as a Trustee for the Health & Welfare Trust Fund through at least
2013, becoming the Chairman of the Trust earlier this year. Mr. Bensi is one of
only two Employer Trustees for the Local 39 Pension Plan. Mr. Bensi is also one
of only two Employer Trustees on the Local 39 Annuity Trust Fund. Mr. Bensi
also serves on the Joint Apprenticeship Committee for Local 39. Bensi has
knowingly allowed under-contributions by Able to these funds while serving as a
fiduciary to the funds participants and beneficiaries.
53. Defendant Able Engineering Services is a business entity whollyowned by Able Services, which has employed many class members and certain of
the named Plaintiffs, as discussed above.
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4. Local 501-Affiliated Defendants and Related Professionals54. Defendant Ed Curly is the current Business Manager of Local 501,
with fiduciary duties in that capacity to the members of Local 501. Defendant Curly
was appointed by IUOEs GP to this position after Chris Brown was terminated by
Callahan following Mr. Browns appointment by former GP Giblin. Defendant Ed
Curly is currently operating Local 501 under the supervision of the current IUOE
President, James Callahan. Mr. Curly has served, at relevant times, as a Trustee for
the Health & Welfare Trust Fund.
55. Defendant Kenneth Capehart, formerly sued as Doe 1, is the currentPresident of Local 501, with fiduciary duties in that capacity to the members of
Local 501.
56. Defendant Sandra Acosta was, at all relevant times, an employee ofIUOE Local 501. Mrs. Acosta served as a business representative.
57. Defendant Dennis Lundy was, at relevant times, the Director of JAC.Dennis Lundy also serves on the Joint Apprenticeship Committee, California Unit
#12, for Local 39. Dennis Lundy now serves as Western Regional Director of
IUOE.
58. Defendant Enrique (Rick) Alcala is a member of Local 501. He wasat one time an instructor for the JAC. He recently ran against Ed Curly and Finn
Pette for Business Manager in Local 501s election that took place in August 2013,
finishing last.
5. Caremark/PBM Defendants59. Defendant CVS Caremark Corporation is a Delaware corporation.
CVS Caremark Corporation (Caremark) was formed following the 2007 merger
of CVS Corporation and Caremark Rx, Inc. Defendant Caremark is not currently
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qualified to conduct business in California, according to the California Secretary of
States website.
60. Defendant Trivantage Pharmacy Strategies, LLC is a business entityorganized in a state not currently known to Plaintiffs. In 2009, Trivantage
Pharmacy Strategies, LLC was acquired by Thomson Reuters. In 2012, Thomson
Reuters agreed to sell Thomson Healthcare, including Trivantage Pharmacy
Strategies, LLC, to Veritas Capital. The new company that was created out of this
sale is Truven Health Analytics.
61. Defendant Truven Health Analytics, Inc. is a Delaware corporationand the successor-in-interest to the obligations of Defendant Trivantage Pharmacy
Strategies, LLC a business entity acquired by Thomson Reuters in 2009. On
information and belief, Defendant Truven Health Analytics is financially
responsible for the misconduct of Defendant Trivantage Pharmacy Strategies, LLC,
though it is not alleged that Defendant Truven Health Analytics participated in any
manner in the misconduct perpetrated by Defendant Trivantage Pharmacy
Strategies, LLC.
6. Removed Defendants and Doe Defendants62. James Van Dyke, no longer sued herein, was the Chief of Staff for
IUOE, but he is now retired.
63. Richard Griffin, no longer sued herein, was General Counsel for IUOEand has since left that position.
64. Chris Brown, no longer sued herein, was the former Business Managerof Local 501, having been appointed by GP Giblin to fill the vacancy created when
Giblin forced Mr. McLaughlin to resign as the duly elected Business Manager of
Local 501. Mr. Brown was later removed from that position by Callahan after Mr.
Brown disclosed Callahans instruction to Mr. Brown to provide false testimony at
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a deposition. Mr. Brown also served as a Trustee for the Health & Welfare Trust
Fund.
65. Louis Levy, no longer sued herein, was an attorney that representedthe Board of Local 501 and membership of Local 501. Mr. Levy previously
worked for IUOE three years earlier, performing legal services.
66. Cynthia Escanuelas, no longer sued herein, was, at relevant times, theoffice manager for JAC.
67. Randy Henningfield, no longer sued herein, was a Certified PublicAccountant hired to audit Trusts for Local 501, including the Apprentice Training
Fund (JAC). Henningfield was married to Cynthia Escanuelas.
68. Mike Russell, no longer sued herein, is a former President of Local501 and former local Executive Board member, at times relevant herein.
69. Plaintiffs do not know the true names or capacities of the persons orentities sued herein as DOES 2-100, inclusive, or have not determined the nature of
extent of their liability to Plaintiffs, and therefore sue said Defendants by such
fictitious names. Each of the DOE Defendants was in some manner legally
responsible for the violations alleged herein. Plaintiffs will amend this complaint
to set forth the true names and capacities of these Defendants when they have been
ascertained, together with appropriate charging allegations, as may be necessary.
70. At all times mentioned herein, the Defendants named as DOES 2-100,inclusive, and each of them, were residents of, doing business in, availed
themselves of the jurisdiction of, and/or injured Plaintiffs and aggrieved employees
in the State of California, among other locations.
71. At all times mentioned herein, each Defendant was the agent, servant,or employee of the other Defendants and in acting and omitting to act as alleged
herein did so within the course and scope of that agency or employment.
Defendants acted in concert or participation with each other, and/or aided and
abetted one another, and/or were joint participants and collaborators in the acts
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complained of, and/or were the agents or employees of one another in doing the
acts complained of herein, each and all of them acting or omitting to act within the
course and scope of said agency and/or employment by the others, each and all of
them acting in concert one with the other and all together. Each Defendant was the
co-conspirator, aider and abettor, agent, servant, employee, assignee and/or joint
venturer of each of the other Defendants and was acting within the course and
scope of said conspiracy, agency, employment, assignment and/or joint venture and
with the permission and consent of each of the other Defendants.
72. The term Defendants as used herein includes DOES 2-100(Defendant Capehart has been identified herein as Doe 1).
IV. DEFENDANTS MISCONDUCT
A. Misconduct by the Able and ABM Defendants Caused Injury toTaft-Hartley Trust Funds Created to Benefit Plaintiffs and Local
501 Members
1. Plaintiffs Discovered Evidence That ABM and AbleConspired with the IUOE to Divert or Withhold Millions of
Dollars from Numerous Member Benefits Funds
73. Able, a signatory to contracts with IUOE local unions, controlsroughly 25% of all stationary engineering positions in the state of California.
74. ABM, a signatory to contracts with IUOE local unions, control roughly70% of all stationary engineering positions in the state of California.
75. When Mr. Pette became the Financial Secretary of Local 501 in June2007, he was asked by Mr. McLaughlin to investigate Lundys possible
embezzlement of funds from the Training Trust (sometimes referred to herein by its
other common name, the JAC Fund). Ultimately, in addition to discovering that
Lundy had, in fact, embezzled tens of thousands of dollars by submitting personal
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expenses, such as lunches with his mistress, for reimbursement, Mr. Pette also
observed that contributions to the Training Trust seemed insufficient and requested
an audit. After an audit, it was determined that, in 2009, ABM had shorted the
Training Trust approximately $180,000 and Able had shorted the Training Trust
approximately $280,000. The shortfall should have been easy to detect and correct,
were it not for the invidious usurpation of control of Local 501 by Defendants.
76. Under the BOMA contracts that were in effect for the 5-year periodspanning 2007-2011, the Training Trust received $179 per member per year from a
signatory employer employing a member. Because membership numbers are
relatively stable, the contributions to the Training Trust should also be stable.
However, an examination of IRS form 990 shows that this was not the case.
Year Employer Contributions
2004 $484,739.00
2005 $438,760.00
2006 $613,517.00
2007 $719,827.00
2008 $590,124.00
2009 $1,079,473.00
2010 $1,273,390.00
The 2009 and 2010 figures represent the payments after Able and ABM were
forced to address the shortfalls in their contributions.
77. Paul Bensi of Able, and Jim Scranton and Cornel Sneekes of ABM, satas Employers Trustees of the Training Trust, including in 2009. In that capacity,
they helped conceal for years the underpayments by Able and ABM to the Training
Trust. They also used their influence to prevent audits of years prior to 2009.
78. The $179 annual payment that Able and ABM were obligated to payinto the Training Trust for each member was not the only benefit fund contribution
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that Able and ABM were obligated to pay for members. In addition to that annual
payment, Able and ABM both agreed, pursuant to the BOMA CBAs, to contribute
to members other benefit funds, including the Health & Welfare Fund and the
Central Pension Fund. Contributions to the Health & Welfare Fund and the Central
Pension Fund were and are calculated on an hourly basis. That is, the more hours a
member worked each year, the higher the contributions to those benefit funds.
79. Despite their obligations under the BOMA CBAs, Able and ABMwere also shorting their contributions to the Health & Welfare Fund at Local 501,
established to purchase benefits, like healthcare plans, for members. The shorting
scheme was fairly simple: Members were required to work a specific number of
hours to be eligible for benefits through the Health & Welfare Fund. Once an
employer reported that an employee worked the necessary number of hours, the
employer was obligated to contribute money for each hour worked by the
employee. After a certain number of hours were worked the employee-member
would have fully funded that years benefits.
80. For full-time employees, Able and ABM reported the number of hoursneeded to entitle the employee-member to full benefits for the year in question, but
then Able and ABM stopped reporting all additional hours worked in order to
eliminate their obligation to keep contributing to the Health & Welfare Fund
beyond the minimum necessary to fund benefits. (Many class members worked far
more than the minimum hours needed to become entitled to full benefits for the
year.) While this would facially seem to cause no harm to Local 501 members, it
was, in fact, highly prejudicial to the interests of members. When a member
received additional Health & Welfare Fund contributions beyond the minimum
necessary, those additional contributions would have, had they been paid, provided
for payment of benefits in future years, including upon retirement. By
underfunding the Health & Welfare Fund, Able and ABM deprived Local 501
members of this supplemental benefit cushion, causing great financial harm to
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them. It is believed that Able and ABM may have jointly underfunded the Health
& Welfare Fund by millions of dollars over the Class period.
81. Paul Bensi, Jim Scranton and Cornel Sneekes also used their influenceon the Health & Welfare Fund to ensure that the results of a promised audit of
contributions of Able and ABM to the Health & Welfare Fund were never
completed or presented.
82. Beyond the underfunding of the Health & Welfare Fund, theunderreporting of hours resulted in a staggering cascade of other harm to Local 501
and its members, including the underfunding of the Central Pension Fund for Local
501 members. As explained above, since contributions to the Central Pension Fund
also depend on the number of hours worked, Able and ABM were underfunding
their contributions to the Central Pension Fund, by underreporting hours worked by
members for benefit purposes. In addition to the underfunding of benefit funds, the
underreporting of hours worked by members deprived Local 501 of much needed
administrative operating contributions that would have been much higher had the
correct number of hours been reported. This harmed Local 501s ability to operate.
83. Despite this patent disregard of contractual obligations intended tobenefit Local 501 members (and other locals members around the country), Able
and ABM were allowed to financially benefit by Defendants, including, but
certainly not limited to, IUOE and Vince Giblin, who should have demanded the
cessation of under-reporting and under-contributing. In return, Able and ABM
rewarded the other Defendants.
84. One example of the improper exchanges of favors and kickbacksbetween IUOE and contractors ABM and Able involved Dennis Giblin, son of
Vince Giblin. Dennis Giblin was criminally charged under ERISA for receiving an
improper gratuity. Under federal law, it is a crime for an employee of an ERISA-
covered fund to receive or solicit any fee, kickback, commission, gift, loan, money,
or thing of value because of any of the individuals actions, decisions, or other
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duties relating to such fund. In 2010, Dennis Giblin pleaded guilty in Newark
federal court to receiving kickbacks and embezzling in connection with a business
transaction during his tenure as head of Local 68s job training and education
program. The guilty plea was entered relatively quickly by Dennis Giblin to
discourage deeper investigation into Local 68, which would have uncovered wider-
ranging kickback schemes with Able and ABM.
85. Due to his conviction, Giblin was ineligible to work for IUOE or Local68 under the LMRDA. So Vince Giblin approached Paul Bensi at Able and sought
a kickback for Ables continued ability to operate double-breasted and underfund a
number of Trusts created for the benefit of rank and file union members, including
members of Local 501. Defendant Bensi created a high-paying position at Able for
Dennis Giblin, despite his conviction, and Dennis Giblin was immediately hired by
Able as consideration to Vince Giblin for allowing it to underfund member benefit
funds and engage in other wrongful conduct related to the Central Pension Fund
(offering access to management-level employees who were not union members).
On one occasion, believed to be in and around May 2010, while Lundy was
working for IUOE in support of a Senate re-election campaign, Lundy received a
call from Vincent Giblin. Lundy used a speakerphone on the call. Others
overheard the call. Vincent Giblin advised Lundy that he had completed a deal
with Able to employ Dennis Giblin following Denniss criminal charges in Local
68. Vincent Giblin also said that he made all audits in 501 go away. The audits
referred not only to the audits directed at Lundy, but the audits targeting Able and
ABM as well, and likely to uncover the extent of underpayments to JAC, the Health
& Welfare Fund, and the Central Pension Fund.
86. And Lauren Lundy, the daughter of Dennis Lundy, was given a job byBensi and Able in its Chicago, Illinois division, despite the fact that Dennis Lundy
left Local 501 after looting the Training Trust.
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2. ABM and Able Conspired with IUOE to Operate Double-Breasted and Deprive Local 501 of Members and Revenues
87. Union contracts with ABM and Able require, at minimum, that anybuilding that is unionized through Local 501 must remain unionized in subsequent
labor contracts and new buildings added must be opened to Local 501 for
organization of the labor force in those new buildings. Among other things, ABM
and Able are obligated to provide the names and contact information for all
employees in non-unionized buildings added subsequent to the entry of the most
recent labor contract. ABM and Able, with the cooperation of IUOE following the
payment of some of their improperly retained profits to IUOE leadership, did not
comply with their labor contracts.
88. Instead, ABM and Able blatantly operate double breasted. In laborparlance, double breasted refers to the side-by-side operation of unionized and
non-unionized workforces, though it is a term that is also, and more commonly,
used to describe a business owner creating a second company to circumvent a
collective bargaining agreement. For example, in a January 28, 2011 email, Maira
Rodriquez circulated job opportunities at ABM and requested feedback on any
necessary changes. The job opportunities listed both union and non-union
stationary engineer positions:
Date: Position Available Details Job No.
12/30/2010 Union JourneymanEngineer
Multiple Locations - LosAngeles/ Orange County. M-Fdays. Starting ASAP. Pay RateUnion scale. Deadline untilfilled.
16092923RWS
1/27/2011 Building Engineers(Chief, Assistant Chief,Utility Engineer, andBuilding Engineer)
San Diego, Day shift, startingASAP, $18-$35/hr, Operationsand maintenance engineermust be experienced [sic] inHVAC boilers, chillers, andenergy management systems,as well as electrical and
1677TE
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plumbing. Deadline until filled.
1/14/2011 Journeyman BuildingEngineer
600 W. 7th Street. LosAngeles, Swing shift M-F,starting ASAP, Data Center,pay rate Union scale, strongelectrical background, deadlineuntil filled.
16043160RD
3/30/2010 Union JourneymanEngineer
Century Plaza Towers, CenturyCity, Mon-Fri swing shift,Starting ASAP, Class A HighRise, Union Scale, Experienceneeded, Deadline until filled.
16054042RWS
And, in a December 30, 2010 email, Maira Rodriquez circulated job
opportunities at ABM and requested feedback on any necessary changes. The jobopportunities listed both union and non-union stationary engineer positions,
including the sample listed below:
Date: Position Available Details Job No.
4/15/2010 Certified/ Non CertifiedOMP
Newport! Irvine, M-F days,starting ASAP, Class "A"
Complex, Union BOMA Contractpayscale, 5-8 years OMPexperience, deadline until filled.
1652CVB
6/10/2010 Union Cert One PersonPlant
West LA, M-F Days, StartingASAP, Union Scale, 5-8 years orhigher of OPP experience.Deadline until filled.
1602CVB
11/23/2010 Central Plant Operator 900 Corporate Pointe, CulverCity, Days M-F, January 1st,central plant campus, $38-$40/hr.
deadline until filled.
16042877RD
8/3/2010 NU Engineer - Bldg.Engineer
Beverly Hills, day shift M-F,starting date to be determined,Mid- rise, $30-$35, Strong HVACand strong electrical, EPA cert inrefrigeration, deadline until filled.
1607KS
8/3/2010 NU Engineer - Bldg.En ineer
Beverly Hills, day shift M-F,startin date to be determined
1604RD
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Mid- rise, $30-$35, Strong HVACand strong electrical, EPA cert inrefrigeration, deadline until filled.
3/30/2010 Union JourneymanEngineer
Miracle Mile, Los Angeles, M-Fdays (8-4), Starting ASAP, Class
A High Rise, Union Scale,Experience needed. Deadlineuntil filled.
16042014RWS
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Century Plaza Towers, CenturyCity, Mon-Fri swing shift, Starting
ASAP, Class A High Rise, UnionScale, Experience needed,Deadline until filled
16054042RWS
3/24/2010 Non-Union Engineer(Part-Time)
Los Angeles,Part Time, 2-3 daysper week, Starting ASAP, $35/hr,Strong HVAC and strong
electrical, EPA Cert inrefrigeration, Deadline until filled.
16093080KS
N/U or NU are non-union job opportunities.
89. ABM also failed to disclose to Local 501 its contract to providestationary engineers to the entire California Courts system.
90. Able also engages in widespread double-breasted operations. In onesuch case, referred to as the Jamison contract, notorious double-breasted building
owner, Dr. David Lee (through Jamison Services, Inc.), contracted with exclusively
with Able Engineering for staffing engineers in his buildings. But a comparison of
the complete listing of all Able Engineering properties under the Local 501 CBA
with that list of David Lee properties obtained from his company's website, reveals
numerous buildings never disclosed to Local 501 for organization by Able. Well
over 100 properties are missing from the Local 501 contract.
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3. IUOE Conspired With ABM and Able to Allow Them toCircumvent Their Contract With Local 501 and Use Retired
Employees to Avoid Benefit Fund Obligations
91. Stationary Engineers are sometimes difficult to temporarily replacewhen they are unavailable for work for any reason. A policy was put in place to
allow retired employees to work up to 40 hours a month in temporary coverage
positions while still retaining their Central Pension Fund benefits. The purpose was
to allow retired employees to cover spot vacancies for permanent employee
members, when, for example, the permanent employee took a two week vacation or
needed to take sick leave. Able and ABM misused the provision, bringing in
retired employees for longer periods. Able and ABM then paid them by 1099 to
hide them from detection during simple audits. Normally, Able and ABM would
have been required to pay a portion of Health & Welfare benefits for those retired
employees and pay into the Central Pension Fund for these retired employees
working in excess of 40 hours a month in any given month. Able and ABM never
paid their share of the Health & Welfare benefits and never paid into the Central
Pension Fund for the time worked by those retired members.
92. The use of 1099 payments hid this practice from Local 501. Mr. Pette,Mr. Himmelberg and Mr. McLaughlin were removed by Mr. Giblin to prevent them
from detecting the full scope of this activity. This practice harmed Local 501
membership but benefitted Bensi, who received enhanced bonuses based on
lowered labor costs, and benefited Able and ABM, which avoided payments they
should have made if they reported honestly.
93. Because they were also Health & Welfare Fund Trustees, Mr. Bensi,for Able, and Mr. Scranton, for ABM, knew that Mr. Pette and Mr. Himmelberg
were initiating audits into Ables and ABMs practices causing underpayments to
JAC, Health & Welfare and the Central Pension Fund. Vincent Giblin, whose son
was employed by Able following his criminal ventures at Local 68, could not allow
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anything to upset his relationship with Able. Vincent Giblin immediately began his
campaign to remove Mr. Pette, Mr. Himmelberg and Mr. McLaughlin from any
position of authority in Local 501.
94. The actions of Able and ABM were harmful to Local 501. An activemember, next on deck, who should have been employed, was denied work due to
the use of retired workers in the 1099 scheme. This harmed Local 501 and the
active member denied employment, as well as the various funds that did not receive
contributions for hours worked.
4. Able and ABM Management Employees Are ImproperlyParticipating in the Central Pension Fund
95. At least 27 management employees of Able and ABM are improperlyparticipating in the Central Pension Fund (erroneously labelled the general
pension fund in the First Amended Complaint), and there are undoubtedly more.
Bob Fox called the Central Pension Fund and spoke with Mike Fanning in an initial
attempt to identify the individuals improperly participating in that Fund. Mike
Fanning said that the information would not be provided to him, could only be
provided at the request of the local business manager, Curly, who has thus far (to
Plaintiffs knowledge) refused to make such a request.
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96. Other participants include the following:
PAGAC, BRIAN V 1,039.98 42,897.96 $6,239.88 $135,000.44 02/13/1960 04/84 YES 06/12 22.00 $3,520.89
MCTAGUE, LOU 1,039.98 63,816.67 $6,239.88 $199,110.83 09/04/1960 07/82 YES 06/12 26.00 $5,676.63
MIRZAYAN, GEORGE 1,039.98 20,320.30 $6,239.88 $63,272.38 10/18/1958 10/89 YES 06/12 10.50 $1,445.37
PAXTON, WILLIAM 1,039.98 41,223.71 $6,239.88 $66,476.36 06/07/1956 11/78 YES 06/12 20.00 $2,014.69
SITZMAN, KURT 1,039.98 62,723.39 $6,239.88 $196,262.29 10/03/1959 03/83 YES 06/12 30.00 $5,636.54
SESTO, ROMEO M 1,039.98 46,176.83 $6,239.88 $157,320.25 04/07/1956 01/88 YES 06/12 23.00 $4,355.20
TURKICH, JOHN 1,039.98 20,089.29 $6,239.88 $101,044.93 08/04/1969 02/03 YES 06/12 9.70 $2,240.22
WONG, STEVEN 1,039.98 58,118.59 $6,239.88 $196,316.66 01/27/1962 01/86 YES 06/12 27.00 $5,591.95
MANNING, BRUCE C 1,140.00 58,600.60 $6,840.00 $170,680.05 05/11/1958 10/78 YES 06/12 27.10 $4,555.00
SNEEKES, CORNEL 0.00 21,447.17 $0.00 $55,102.74 08/30/1956 08/82 YES 12/06 10.90 $1,814.08
SORENSEN, E 0.00 32,479.89 $0.00 $99,038.77 07/01/1965 05/88 YES 02/10 16.00 $3,006.87
LUTES, ROBERT MICHAEL 0.00 36,719.42 $0.00 $117,964.82 01/20/1970 01/91 YES 10/07 17.00 $3,933.11
97. Ables ability to access the Central Pension fund and include Ablesnon-union personnel in the IUOE Central Pension Fund could not be approved on a
local union level and had to be approved by the International General President, at
that time, Vincent Giblin. Able grew rapidly as a result of assistance from IUOE
that included permission to offer participation in the IUOE central pension fund(restricted to IUOE members) to managerial employees of building owner/operators
as an enticement to leave ABM and hire Able to provide stationary engineering
services. IUOE encouraged Ables growth through these unlawful means so that
ABMs position in the industry would weaken and IUOE could play ABM and
Able off against each other. Able grew in a matter of a few years from an obscure
company to the second largest in the country with regard to the number of buildings
it manages. Once Able had attained an adequate market share, Giblin could
credibly offer Bensi a Trustee position on the Central Pension Fund as well, further
ensuring Bensis and Ables loyalty to Giblin and IUOE leadership.
98. Jim Scranton was a managerial-level employee at ABM and was noteligible to participate as a management employee in the IUOE Central Pension
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Fund. Nevertheless, Mr. Scranton is currently receiving distributions from the
Central Pension Fund.
99. The inclusion of non-union members in the Central Pension Fundunreasonably exposes union member plan participants to the risk that, in the event
of an underfunding, the union members will be forced to contribute additional
funds to cover distributions to non-members in a pension fund that was established
exclusively for IUOE members. When Giblin allowed such behavior to occur, he
breached his fiduciary duties to members, both in his role as a union officer and as
a Trustee. Likewise, James Callahan breached his fiduciary duties to members,
both in his role as a union officer and as a Trustee. Paul Bensi, a Trustee on the
Central Pension Fund, has also breached his fiduciary duties to members as a
Trustee. The GEB members, who all continue to passively permit this
inappropriate arrangement, have also breached their fiduciary obligations to IUOE
members in the Central Pension Fund.
100. The inclusion of non-member, management employees createsconflicting incentives regarding compensation and benefits packages, since
management-level employees benefit from any emphasis on pension benefits, to the
exclusion of other forms of compensation for union members. The creation of this
inappropriate incentive also violates fiduciary obligations to union members.
5. Able and ABM Targeted Local 501 Employees Sympatheticto the Resistance and This Lawsuit
101. Individuals known or believed to be sympathetic to or cooperative withthe resistance in Local 501 are now being targeted in retaliation by Able and ABM.
Pat Adams, a Super Chief, and Erik Smith were terminated from their positions
with Able because it was believed that they were sympathetic or cooperative with
the resistance in 501. Able personnel were at union meetings and observed Mr.
Smith and others wearing clothing or pins indicating their support for the
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resistance at Local 501. Able personnel observed resist buttons on Mr. Smith
and others at their job site.
102. Eric Sorenson, an ABM Vice President,