MAIL FRAUD BY SECRETARY/TREASURER OF UNION FOR FEDERAL CORRECTIONAL OFFICERS

A. Courtney Cox, United States Attorney for the Southern District of Illinois, announced today that on May 1, 2009, DON C. PADGETT, age 39, of Granite City, Illinois, pled guilty to an Indictment charging him with Mail Fraud By Secretary/Treasurer of a Union, in violation of Title 18, United States Code, Section 1341. The violation took place between November 20, 2001 and May 23, 2008 in Wayne County, Illinois. The charge carries a maximum statutory penalty of up to twenty years imprisonment, a fine of up to $250,000, three years supervised release and mandatory restitution. Sentencing is scheduled for September 4 , 2009.

As part of the plea, DON C. PADGETT admitted that as the Secretary Treasurer and Chief Financial Officer of the American Federation of Government Employees (AFGE) Local 1304, he issued unauthorized checks to himself, made unauthorized purchases on the union’s credit card and falsified information in the union’s financial reports and falsified reports filed with the Department of Labor. AFGE Local 1304's members consist of correctional officers at the Federal Correctional Institution in Greenville, Illinois. The Government alleged that DON C. PADGETT misappropriated approximately $186,997. The union is funded by union dues by correctional employees of $18 every two weeks.

The investigation of the case was handled by the United States Department of Labor, Office of Labor Management Standards. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.

If you suspect any union official is misappropriating funds or is involved in any other illegal activity involving a misuse of his/her position you may contact the U.S. Department of Labor, Office of Labor Management Standards at (314) 539-2667.