October 17, 1981
Nine members of the Laborers International
Union have filed suit to recover union funds allegedly misused
by their indicted president and other officers.
The suit, filed in U.S. District Court here
Thursday, demands the return of union money allegedly used by
union President Angelo Fosco and others in an illegal kickback
It accuses union officials of diverting union
money for their personal benefit and in one case of making political
contributions in the hope of deflecting a criminal investigation
by federal officials during the years of the Carter administration.
Fosco and 15 other defendants were indicted
in June by a federal grand jury in Miami on charges of conspiring
to receive kickbacks for steering pension funds and insurance
business to certain firms.
The indictment also named two reputed Mafia
figures, Anthony Accardo and Santos Trafficante.
The suit asked for an accounting of all the
union funds allegedly involved in various schemes and the eventual
return of the money to union control.
The suit cites charges that Fosco and his
son, Peter, who is the union's Chicago regional manager, and former
union vice president Terence O'Sullivan abused union office by
diverting funds for their personal benefit. It also asks the recovery
of funds allegedly diverted to pay for lawyers in criminal cases.
Also cited were charges that union officers
misused funds for campaign contributions, hoping to deflect criminal
investigations launched by the Justice Department in 1980. The
union leaders are accused of having that in mind when they authorized
a donation of $25,000 to President Carter's campaign and another
$125,000 to the Democratic National Committee.
The suit was filed on behalf of union members
Chris White of Fairbanks, Alaska, and eight other members in various