News Release
U.S. Department of Justice
United States Attorney
District of Rhode Island
November 24, 2008
Indictment charges contractor, two union officials with
illegal payment conspiracy
A federal grand jury has charged Nicholas Manocchio, an employee of the Laborers International Union of North America (LIUNA), Harold Tillinghast, a former LIUNA employee, and Gerald Diodati, a construction contractor, with conspiring to make and receive unlawful payments from employers to labor union officials.
United States Attorney Robert Clark Corrente, Acting Assistant Attorney General Matthew Friedrich of the Department of Justice Criminal Division, and Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation, jointly announced the indictment, which the grand jury returned on November 21 in U.S. District Court, Providence.
The indictment was placed under seal until a court appearance by Manocchio today. It follows a criminal complaint filed against Tillinghast and Diodati last month.
According to the indictment, Manocchio and Tillinghast were employees of the Laborers New England Region Organizing Fund (NEROF) during the time period of the indictment, and Diodati was a contractor advancing the interests of two construction companies, Hemphill Construction and Rhode island Demolition.
The indictment alleges that between 2002 and 2005, the three conspired to generate illicit payments from persons affiliated with Hemphill and Rhode Island Demolition to LIUNA officials in order to gain unlawful advantage in Hemphill’s bidding on construction projects. The payments allegedly included cash, liquor and gift certificates.
The indictment alleges that Diodati gave $2,000 in cash to Tillinghast in May 2003 and that in July 2003, a person acting in the interest of Hemphill and Rhode Island Demolition gave $1,000 to a LIUNA Local 271 official. In November 2003, according to the indictment, a person acting in the interest of Hemphill and Rhode Island Demolition gave $500 to a LIUNA Local 271 official to pay a rental car bill for a trip to Florida taken by that official. The indictment also alleges that, in December 2003, Tillinghast accepted $500 in cash and Manocchio accepted $2,000 in cash from a person acting in the interest of Hemphill and Rhode Island Demolition.
FBI agents arrested Manocchio, 55, of Cranston, this morning. He appeared before U.S. Magistrate Judge Lincoln D. Almond, who continued the arraignment to December 5 and released Manocchio on unsecured bond. A summons will be issued for Tillinghast, 44, of Cranston, and Diodati, 59, of Seekonk, to appear for arraignment. They are free on bond after being arrested on the complaint last month.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty. In the event of conviction, conspiracy carries a maximum penalty of five years in prison and a $250,000 fine.
The investigation leading up to the indictment was conducted by the Federal Bureau of Investigation, the U.S. Department of Labor, Rhode Island State Police, and Providence Police. Trial attorneys Vincent Falvo and Scott Lawson of the Justice Department’s Organized Crime and Racketeering Section are prosecuting it.