Manhattan U.S. Attorney Announces Indictment Of Former President Of Law Enforcement Labor Union For Defrauding Union Of Funds

Preet Bharara, the United States Attorney for the Southern District of New York, and Andriana Vamvakas, the New York District Director of the U.S. Department of Labor's Office of Labor Management Standards ("DOL-OLMS"), announced the indictment of former union president JOHN EARVIN for engaging in a fraudulent scheme to embezzle funds from the United Federation of Law Enforcement Officers (“UFLEO” or the “Union”). The UFLEO represents Special Inspectors employed by the Metropolitan Transportation Authority of New York (“MTA”). EARVIN was arrested today and will be arraigned later today in Manhattan federal court before Judge Gabriel W. Gorenstein. The case has been assigned to Judge Paul A. Engelmayer.

According to the allegations in the Indictment filed in Manhattan federal court yesterday:

From February 2007 through April 2010, EARVIN was the Union’s president, supervising the affairs of the Union and managing the Union’s finances, including through sole control of the Union’s bank account (the “Account”). Through his presidency, EARVIN allegedly perpetrated a scheme to defraud the Union by diverting Union dues payments deposited into the Account for his own benefit, principally by making hundreds of ATM withdrawals at off-track betting facilities and other locations and making personal use of the funds. In furtherance of the scheme, and to prevent its discovery, EARVIN, as alleged, repeatedly lied to Union members about the Account by, for example, claiming that he could not provide an accounting of funds to Union members because an independent auditor was reviewing the Union’s finances. As a result of the scheme, EARVIN is accused of defrauding the Union and its members of approximately $48,012.

EARVIN, 67, of New Rochelle, New York is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The Indictment also seeks forfeiture of crime proceeds. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

U.S. Attorney Preet Bharara thanked the DOL-OLMS for its work in the investigation.

The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen and Jennifer Gachiri are in charge of the prosecution.

The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.

U.S. v. John Earvin Indictment