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May 22, 2014

Department of Justice

United States Attorney William C. Killian Eastern District of Tennessee


Reda Overton Pleads Guilty To Embezzlement And Theft From A Labor Union

KNOXVILLE, Tenn. – On May 20, 2014, Reda Overton pleaded guilty in U.S. District Court to a one-count Information charging her with unlawfully and wilfully embezzling over $200,000 from Locomotive Engineers, a labor union.

Sentencing for Overton has been set for October 23, 2014, at 3:00 p.m., in U.S. District Court, Knoxville. She faces up to five years in prison, a fine of up to $10,000, a term of supervised release of up three years, and a $100 special assessment.

According to the plea agreement on file with the U.S. District Court, beginning on or about December 10, 2008, Overton was employed as the Executive Secretary to the General Chairman of a Locomotive Engineers’ committee. Locomotive Engineers is a labor organization which represents bargaining unit members who are employed by Norfolk Southern, a Virginia-based railway company that ships products across state lines throughout the United States. Overton was paid a bi-weekly salary in exchange for her secretarial and treasury duties that consisted of processing the payroll for herself and others. Acting unlawfully and willfully with the intent to defraud, in her official capacity as an employee, Overton transferred or overpaid herself over $200,000, which was union money taken from the organization’s bank accounts and deposited into Overton’s personal bank accounts, including at least one bank account that was held in Overton’s name. Overton confessed to United States Department of Labor (“DOL”) investigators that she embezzled over $200,000 from the union.

Special agents with Department of Labor investigated this case and it is being prosecuted by Assistant United States Attorney Brooklyn Sawyers.

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