Former Union Treasurer Sentenced To 18 Months for Embezzling Union Funds

     PHOENIX – On Sept. 14, 2015, Richard Wayne Johnson, 49, of Surprise, Ariz., was sentenced by U.S. District Judge David Campbell to 18 months of imprisonment, followed by three years of supervised release, for embezzling nearly $275,000 from a local union for which he served as treasurer.  In June, Johnson pleaded guilty to embezzlement, forgery, and false reporting charges stemming from the embezzlement and its attempted concealment.

     “The United States Attorney Office will vigorously prosecute those who abuse positions of trust within unions to steal from its members,” said United States Attorney John S. Leonardo.  “Johnson’s actions were harmful to the hard-working members of the union and to this community, and they are deserving of a prison sentence.”

    Richard Johnson, formerly a bus driver, served as the financial secretary and treasurer for the Amalgamated Transit Union Local 1433 for seven years, ending in January of 2012.  The union consists of bus and light rail operators, mechanics, and service workers in Arizona; and the union is funded by dues collected from its members.  For several years, Johnson embezzled funds from the union for his personal use.  He pleaded guilty to using the union debit card for an abundance of personal purchases, such as a home theater system, and for cash withdrawals.  He also admitted to forging union checks written to himself or to family members.  To conceal the embezzlement, Johnson doctored the union’s financial records and then provided those false records to the U.S. Office of Labor-Management Standards in periodic reports.  As part of his sentence, Johnson was also ordered to pay restitution of $273,489 – the amount of the embezzled funds.   

     The investigation in this case was conducted by the U.S. Department of Labor Office of Labor-Management Standards and the IRS-Criminal Investigation.  The prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-15-00653-PHX-DGC

RELEASE NUMBER:   2015-075_Johnson

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

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