President of Port Authority Union Pleads Guilty to Embezzling
Defendant Admits to Stealing Nearly $300,000 in Union Funds
Daniel Hughes, the former president of the Port Authority Field Supervisors Association, Inc., Local 111-S (“Local 111-S”), pleaded guilty today to a felony information charging him with embezzling union funds. The proceedings were held before United States District Judge Eric N. Vitaliano at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Robert E. Van Etten, Inspector General for The Port Authority of New York and New Jersey.
Local 111-S’s membership is comprised of approximately 250 Port Authority of New York and New Jersey Operations/Field Supervisors who worked at Port Authority facilities including various, tunnels, and airports. As president of Local 111-S, Hughes had the authority to write and cash checks from the union’s bank account, withdraw money from the union’s bank account, and charge items and services necessary and proper to conduct Local 111-S business. Hughes also had a duty to hold the union’s money solely for the benefit of the organization and its members. Instead, from approximately January 2005 to December 2009, Hughes stole approximately $294,000 in union funds for his personal use.
“The defendant took advantage of his position as a trusted agent of the union to embezzle proceeds for his personal gain,” stated United States Attorney Lynch. “A union relies on its leaders to act with honesty and integrity. When union members are defrauded by one whose job it is to act on their behalf, we will bring the wrongdoer to justice.”
Inspector General Van Etten stated: “This Port Authority employee took advantage of his position as the President of a Union and abused it in a calculated and egregious manner. He embezzled the hard earned moneys of union members and spent it on personal items that were in no way related to his duties and responsibilities as the Union’s president.”
When sentenced, Hughes faces a maximum of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Todd Kaminsky, Marisa Megur Seifan, and Duncan Levin.
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