UNION PRESIDENT CHARGED WITH EMBEZZLING MORE THAN $757,000
WEDNESDAY JULY 20, 2011
Public Affairs Officer
CINCINNATI – A federal grand jury has charged Diana Frey, the elected president of the Cincinnati Organized and Dedicated Employees (CODE), a labor union representing approximately 800 employees of the City of Cincinnati, with wire fraud alleging that she embezzled more than $757,000 from the union between 2005 and June 2011.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Lesta A. Chandler, District Director of the U.S. Department of Labor, Office of Labor-Management Standards announced the indictment returned today.
The indictment alleges that Frey, 51, of Cincinnati, fraudulently and without authority caused CODE to pay funds by checks, direct wire transfers, ATM withdrawals, and credit card purchases to her various bank accounts or for her personal benefit. Frey allegedly misrepresented the union’s finances to other CODE officers and members.
The indictment seeks forfeiture of $757,009.82 which represents the proceeds of the alleged wire fraud scheme.
Wire fraud is punishable by up to 20 years in prison and a fine of $250,000 or twice the actual loss. Frey has been summoned for an initial appearance and arraignment before U.S. Magistrate Judge Stephanie K. Bowman at 1:30 p.m. on July 28.
Assistant U.S. Attorney Timothy Mangan is prosecuting the case, which is being investigated by agents from the U.S. Department of Labor.An indictment is merely an accusation. A defendant should be presumed innocent until and unless proven guilty in court.
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