Formal Charges Against the President, Judy Sheridan-Gonzalez, RN & Treasurer, Patricia Kane,

RN

1. These charges are being brought by a number of active NYSNA members (listed at the end of the document) in accordance with Article III of the NYSNA Bylaws and the policy for Internal Disciplinary Complaints and Charges available at: https://actionnetwork.org/user_files/user_files/000/035/359/original/Disciplinary_Policy_(00342490).pdf [Last viewed Oct 22, 2019]

2. We are all members in good standing of the organization.

3. We allege, in summary, that the President of the union, Judy Sheridan-Gonzalez, RN, and the Treasurer of

the union, Patricia Kane, RN, are both receiving improper financial benefits in the forms of “salaries”, stipends, or other remuneration, which they have arranged for themselves, with zero oversight or accountability. We allege they have functionally put themselves on the payroll of the organization in direct violation of NYSNA Bylaw Art. 10, §2. Furthermore, we allege that, considering there is no oversight or 1

accountability of what either individual does to earn her “salary”, both have engaged in conduct that is detrimental and injurious to the Association, by paying themselves and securing a personal pecuniary interest in their positions and personally profiting at the expense of the organization.

4. Ms. Sheridan-Gonzalez receives an improper annual salary of approximately $50,000.00 (sometimes more,

discussed infra). Ms. Kane receives an improper annual salary of approximately $160,000.00.

5. We believe it makes no difference if the “salary” is characterized as a stipend, lost-time wages, or other form of remuneration. We believe the important fact is that substantial sums of money have been paid to each of these individuals, which clouds and impacts their ability to be impartial and make decisions in the best interest of the organization - perhaps most evident in their desire to remain in their positions for years beyond the otherwise prescribed term limits. We believe this is precisely why NYSNA Bylaw Art. 10, §2 was created - because there are no safeguards under our structure to avoid the obvious conflicts of interest between paid staff of the organization and board members. We allege it is a meaningless distinction to suggest they are not staff (because they receive a stipend or payment by virtue of a lost-time arrangement) for purposes of this Bylaw, and this conduct violates the spirit, if not the letter, of NYSNA Bylaw Art. 10, §2. (Incidentally, it is reported on the LM-2 as a salary). 2

6. We also allege that even if their salaries and stipends were held to be proper, in the course of receiving

these salaries, they have abused their positions of power within the organization to secure additional financial benefits, including gross overpayment of their salary, and an illegal loan .

7. We believe that this conduct not only violates NYSNA Bylaw Art. 10, §2, but we also allege it is illegal, violating the Labor-Management Reporting and Disclosure Act (“LMRDA”) §§431, 501, & 503, et. al., NYS Not-for-Profit Corporation Law (“NPCL”). They are violating their most basic Fiduciary Duty under the LMRDA, as well as their Duty of Care, Loyalty, and Obedience to the organization pursuant to NPCL. This conduct is injurious to the organization because it not only misappropriates union funds, unfairly utilizes the resources of the organization, and compromises the judgement of the leadership, but it has also tarnished the reputation of the organization.

Outline of Facts & Charges Against President Judy Sheridan-Gonzalez

8. Despite the repeated claim that Ms. Sheridan-Gonzalez does not receive a salary, for nearly every year she has served as President, she has received tens of thousands of dollars.

1 NYSNA staff members may not be candidates for, nor may they serve in, any position. 2 See any LM-2 filed in the past decade on behalf of NYSNA.

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9. The duties of the President are outlined in NYSNA Bylaw Art. 5, §4. They have not changed substantially

(if at all) from the time when the President received no remuneration (2005), to today where the president 3

receives over $50,000 (2019 LM-2).

10. The real increase in payments (from $15,000 to $50,000) took place only after Ms. Gonzalez retired and went through a personal financial crisis. Absolutely nothing about her role or duties as president changed with the increase. The salary has been crafted to fit a retired individual and a specific set of circumstances - and not the position. If the next president worked Full Time for a hospital as a bedside nurse (as our bylaws envisioned would always be the case), it would be absurd to suggest they should also receive a salary from the union on top of their regular pay.

11. We are unaware of how earlier decisions were made to increase the amount of the payment, however we recognize and do not dispute that the NYSNA Board of Directors voted in approximately 2016 or 2017 to increase her salary from $15,000.00 to $50,000.00.

12. Despite the apparent and rumored approval of the Board of Directors, we believe they erred in awarding such a large sum of money to be paid, without any oversight or accountability.

13. What we find most egregious is that there are no records, communication, accountability, or explanations offered to the membership to explain the very significant increase. We have no knowledge of any reports to members, delegates, board members, or anyone else for that matter. It is buried in the LM-2 for only the most scrutinizing members of the union to uncover.

14. Her work time is not recorded, reported, or accounted for. There has not even been an attempt to explain or justify the payment.

15. Some of the things we do know transpired while Ms. Sheridan-Gonzalez received these payments include campaigning for the office of presidency in NYSNA and excessive travel financed by NYSNA all over the world for personal benefit (including China, India, Paris, Cuba, Venezuela, and many trips to Puerto Rico where she owns a farm with her husband).

ILLEGAL LOAN

16. On the most recent LM-2 filing (FY 2018-2019) NYSNA records a receipt of $12,500 of income paid 4

from the President Sheridan-Gonzalez, to NYSNA. This is listed under Schedule 14, and is described as a “reimbursement”. The purpose is described as follows:

“REFUND 2019 PAYMENT ISSUED IN 2018”

17. According to the LM-2, this “reimbursement” was made on Feb 8, 2019.

18. §503(a) of the LMRDA prohibits both direct and indirect loans from labor organizations to any officer that exceed $2000. It is not necessary for the union or the officer to call the transfer of funds a “loan” as the courts have determined that a salary advance repaid at a later date constitutes a loan for purposes of the LMRDA. 5

3 A review of LM-2 filings reveals that prior to fiscal year 2004-2005, the president received no remuneration. Beginning in 2004-2005, a $4000 “allowance” was given to the president. In the time since Ms. Sheridan-Gonzalez became president in 2011, this figure increased first to approximately $10,000, then to $15,000, and later to over $50,000. It was also no longer referred to as an “allowance” but instead classified as a “salary”. 4 Filed with the Department of Labor on June 21, 2019. 5 OLMS Interpretative Manual, Revised Dec 2016, p. 80.

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19. We allege that not only did President Sheridan-Gonzalez orchestrate this loan to herself, but she utilized her

position as President to conceal this, being one of only two signatures on the LM-2s (the other, conveniently is Pat Kane). This loan was not discussed with other board members. This statement is submitted to the Department of Labor with their signatures immediately following this disclosure:

Each of the undersigned, duly authorized officers of the above labor organization, declares, under penalty of perjury and other applicable penalties of law, that all of the information submitted in this report (including information contained in any accompanying documents) has been examined by the signatory and is, to the best of the undersigned individual's knowledge and belief, true, correct and complete.

20. As these statements pertain to facts that relate specifically to the President, the President either committed

perjury or violated §503(a).

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Outline of Facts & Charges Against Patricia Kane

21. Despite the repeated claim that Patricia Kane is not staff of the organization, for nearly 3 years she has received her salary paid entirely by the union.

22. She has stated on previous occasions that she is not getting paid to be the treasurer. This raises more questions than it answers, since we do not have a clue what she is getting paid to do.

23. For all intents and purposes, she appears to have a “no show” job with no responsibilities, no supervision, and no duties.

24. We have no idea how her vacation, holidays, or other perks are being handled.

25. We recognize that officially, she is working under a lost-time arrangement with her former employer in Staten Island. However, we believe this is pretextual since she has been on lost-time now for nearly 3 years, despite the clear language of the contract limiting this role to only 1 year. Furthermore, in most examples of lost time, a member is released from their regular nursing job in order to perform specific tasks for the union - either assisting staff in their own facility, or assisting with other campaigns. However, in the case of Treasurer Kane, due to her position as an officer in the union, she does not report to anyone.

26. Her salary does not change year after year, despite changes in the SIUH contract (annual increases, etc.) If it were truly “lost wages” her checks should reflect this. Instead, they are a fixed amount set and determined by the union - not her former employer. (We believe the amount is also improper - discussed infra)

27. We allege, essentially, that she has utilized and abused her position as treasurer to arrange to be paid by the

union.

28. In fact, for much of 2018, she did little to zero work for the union while collecting the same salary, because she was campaigning for public office on Staten Island every day for much of the year. In addition, during Ms. Kane’s 2017/18 tenure as union staff she was running for union office. Thus the union effectively financed both of these campaigns.

29. She answers to no one and does no meaningful work in exchange for the remuneration she receives, financed by member dues. We are truly baffled that this has been permitted to persist for so long.

30. Lost-time wages are reported inconsistently on the LM-2, with all other instances for non-officers listed as expenses under Schedule 15 representational activities - except for Ms. Kane.

31. Ms. Kane should also be held accountable for signing off on Ms. Sheridan-Gonzalez’s pay and illegal loan.

OVERPAYMENT OF HER SALARY

32. The top of the pay scale in the SIUH contract that expired on Dec 31, 2017 (the year Ms. Kane initially came off their payroll) was $115,181.00.

33. Even considering the 3% increases and $50 increase in the experience steps, differentials for shift/education/etc., these figures do not come close to accounting for the $158,600.00 salary reported on the LM-2s. Furthermore, she received this amount in 2017 prior to the increases.

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34. Thus even if the lost-time arrangement were proper, and Ms.Kane had in fact legitimately performed actual duties on behalf of the organization while on lost time (a conclusion we believe the facts do not support in the slightest), the salary she earns greatly exceeds the salary she should receive.

35. There appears to be a gross overpayment of over $40,000 each year. Even if the original figure included

the costs of pension and healthcare fun, there is a serious discrepancy. The only other possible explanation might be for including payment of overtime or on-call pay. However, it is the regular established practice of the organization for any individual coming out on lost time to submit to their Area Director and the union a copy of their most recent paycheck. If the individual will be working full time during the time period in question, their “lost salary” will be computed on their base wage rate - not inclusive of overtime, on-call pay, or other additional payments that may have occurred during the paystub submitted.

36. Because Ms. Kane is the treasurer of the organization, she is uniquely positioned to not only be directly familiar with this policy, but has a specific and special duty to ensure that this practice is routinely followed, consistently and fairly applied, and not violated - particularly for her own personal gain.

Summary

37. Many unions allow staff to serve on their board. There is nothing inherently wrong with this. However, at NYSNA, we do not. Because we do not permit this, we lack any oversight mechanisms to safeguard union assets when those elected to the highest offices in our organization are simultaneously paying themselves and acting without any supervision or accountability.

By receiving any form of remuneration, be it a stipend or a salary, Ms. Sheridan-Gonzalez and Ms. Kane have arranged for their own personal benefit a process whereby they do an end run around the traditional and direct forms of payments. This is problematic in that it violates the bylaws, but perhaps more seriously, because it violates the law. As outlined throughout this charge, these officers owe specific duties to the organization due to their titles, and these payment arrangements skirt the official and direct channels for their own personal benefits. It is not objectionable that individuals might receive some payment at times. What is objectionable and should stop every board member directly in their tracks, is the following question: “What are these

individuals doing to earn this money? What systems have we created to ensure that members dues

money is being spent responsibly? Reasonably? Appropriately?” The unfortunate answer to these questions is nothing. When power goes unchecked, further abuses like the loan, overpayments, and travel take place.

38. We ask the board to remedy this appropriately. We are copying the Department of Labor on this charge and we are also pursuing an investigation and formal charges through the agency - a process that could become moot if this internal charge is dealt with appropriately and in a satisfactory manner.

Signatures

[See the following page] CC: Erica Weber, Investigator, Office of Labor-Management Standards (via email)

NYSNA Board of Directors (via email)

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Signatures Jaiveer Grewal, RN NY Presbytarian Hospital

Valerie A. Burgos-Kneeland, RN Mt. Sinai Hospital Robin Krinsky, RN Mt. Sinai Hospital / NYSNA Board of Directors Shanna Murphy, RN NY Presbytarian Hospital Cyndi Caruso, RN Vassar Brothers Medical Center Cliff Krinsky, RN Mt. Sinai St. Luke’s Hospital Patricia James, RN Kings County Medical Center Curlean Duncan-Britton, RN Kings County Medical Center Rose Green, RN Elmhurst Hospital Center

Anne Bové, RN Bellevue Hospital Center

(Retired) / NYSNA Board of Directors

Josephine Deocampo, RN Bellevue Hospital Center

Mary Simon, RN Jacobi Medical Center

Rosemarie Mason, RN Jacobi Medical Center

Yvonne Brown, RN Metropolitan Hospital Center

Jude Coye, RN Metropolitan Hospital Center

Evidence

Relevant Evidence we request be reviewed:

1. NYSNA Bylaws (not enclosed but we are confident you have access to them)

2. Recent LM-2s (not enclosed but we are confident you have access to them)

3. OLMS Interpretive Manual Please see the following link: https://www.dol.gov/olms/regs/compliance/interp_manual/InterpretativeManual_010617.pdf

4. DOL guidance on Lost Time Please see the following link: https://www.dol.gov/olms/regs/compliance/CompTipLostTime.htm

5. NYS non-profit law Please see the following link: https://www.charitiesnys.com/pdfs/Right-From-the-Start.pdf

6. LMRDA Please see the following link: https://www.dol.gov/olms/regs/compliance/compllmrda.htm

7. We were unable to include or locate a copy of the most recent SIUH contract but we are confident you have access to it.