Former Labor Union President Sentenced to 30 Months in Federal Prison for Wire Fraud

PANAMA CITY, FLORIDA – Danny L. Hubbard, 49, of Panama City, was sentenced today to serve 30 months in federal prison for committing wire fraud by stealing approximately $91,600 from the American Federation of Government Employees (AFGE) Local 1380.

AFGE Local 1380 is a labor union that represents federal employees who work at the Naval Support Activity in Panama City, Florida.  Hubbard became the acting president of AFGE Local 1380 in or around November 2006 and served as the president through 2008.  While president, Hubbard wrote checks to himself or to cash, a local convenience store, and Boomtown Casino in Biloxi, Mississippi.  Additionally, he conducted other numerous financial transactions and withdrew $6,650 from the union’s savings account.  The funds disbursed as a result of Hubbard’s actions were not used for AFGE Local 1380’s official business or for the union.  He did not obtain approval from AFGE Local 1380’s executive board or membership before disbursing the funds to himself, cash, or other third-party entities.  He was ordered to pay restitution in the amount of $91,600 as a result of his scheme to defraud.

Hubbard was also sentenced to serve a 3-year term of supervised release, and ordered to pay a $2,400 special monetary assessments.

This conviction results from an investigation by agents of the U.S. Department of Labor and was prosecuted by Assistant United States Attorney Kathryn Risinger.