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October 3, 2011

BOSTON - Frank R. Rago, the former International Representative of the International Longshoremen’s Association (ILA) and former President of ILA Local 1604, was sentenced today by U.S. District Court Judge William G. Young to one year and one day in prison on charges that he made unlawful payments and falsified documents.

In January 2010, after a 13-day jury trial, Rago, 53, of Stoneham, was convicted of unlawful labor payments and falsification of documents required to be kept by the Employee Retirement Income Security Act (ERISA). At today’s sentencing, the Court dismissed a second conviction of unlawful labor payments. In addition to the prison sentence, Rago was sentenced three years of supervised release and ordered to pay $216,384 in restitution and $10,000 forfeiture.

Upon being appointed as an ILA representative, Rago secured a no-show job with the employer of Local 1604 members so that he could continue making his prior linehandler’s salary without performing any work. Rago directed that his salary would be financed from deductions from the contractual wage earnings of the Local 1604 members.

United States Attorney Carmen M. Ortiz; Mark Neylon, District Director, Boston District Office for the United States Department of Labor - Office of Labor Management Standards; and Robert Panella, Special Agent in Charge of the Office of Inspector General - Office of Labor Racketeering and Fraud Investigations for the United States Department of Labor; made the announcement today. The case was prosecuted by Assistant United States Attorney Suzanne Sullivan of Ortiz’s Major Crimes’ Unit and by Trial Attorney Vincent J. Falvo, Jr., of the United States Department of Justice, Organized Crime and Racketeering Section.



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