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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

Friday, December 13, 2019

Two convicted of stealing from labor union

HOUSTON - Two 67-year-old Houston women pleaded guilty today for their roles in an embezzlement scheme, announced U.S. Attorney Ryan K. Patrick.  

Beverly Davis and Evelyn Smith were each employed with the Communications Workers of America Local 6222 in Houston. Davis was employed from 2010 to 2017, while Smith served as secretary/treasurer from 2005 to 2018.

At the plea today, Davis admitted she used union funds to pay for personal expenses and other unauthorized charges. By the time she ceased doing so in 2017, she had embezzled union funds in the amount of $85,536.77.  

Smith began using union funds to pay for personal expenses in 2011. She stopped in 2018, but had taken $50,967.76 during that time.

According to the plea agreement, Davis administered a fund intended to help union members in financial hardships. As part of the scheme, she falsified reports to hide her activity. Smith had control over the general fund at the time she made the unauthorized transactions.

U.S. District Judge Keith P. Ellison accepted the pleas today and set sentencing for Feb. 28, 2020. At that time, each woman faces up to five years in federal prison and a possible $10,000 maximum fine.

They were permitted to remain on bond pending those hearings.

The U.S. Department of Labor-Office of Labor Management Standards conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.

Financial Fraud
Updated December 13, 2019