Former Laborer's Union Cashier Sentenced to One Year in Prison for Stealing over $50,000 in Initiation Fees
Las Vegas, Nev. – A woman who was convicted of embezzling over $50,000 from the Laborers' International Union, Local 872, by pocketing the membership dues and initiation fees of union members, has been sentenced to prison and ordered to pay restitution to the union, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Stacy Johnson, 41, of Henderson, Nev., was sentenced by U.S. District Judge Gloria M. Navarro, on Aug. 23, 2012, to one year, plus one day in prison, one year of supervised release, and ordered to pay $53,500 in restitution to the union. Johnson was convicted by a jury on April 4, 2012, of seven counts of embezzlement from a union and three counts of falsifying union records.
From 2006 through 2009, Johnson, was employed by Laborers' International Union, Local 872, in Las Vegas, Nevada, as a cashier in the front office. In that capacity, Johnson collected membership dues and initiation fees from the union's members. New union members were required to pay a $500 initiation fee and $90 in dues, in cash, upon initiation to the union. Johnson collected the fees and dues, but pocketed most of the money for herself and deposited it into her personal bank account. In order to conceal her theft, Johnson falsified union records, including receipts and member records, causing the union to file inaccurate reports to its membership and to the Department of Labor. Johnson embezzled a total of approximately $500 on about 107 different occasions.
Johnson was permitted to self-report to federal prison by Nov. 21, 2012.
The case was investigated by the Department of Labor Office of Labor Management Standards and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Roger Yang.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.