Former Maryland union official Anthony Frederick was charged Wednesday with defrauding a union of $1.7 million of funds, which he allegedly used for personal items, entertainment, overseas travel and Arab politics.
The Department of Justice brought a number of charges against Frederick, including theft, wire fraud and laundering. Frederick allegedly manipulated a union for which he was a business manager — Local 657 of the Laborers International Union of North America (LIUNA). He allegedly used the funds for personal use, home payments and to fund third party politics in the Arab nation of Qatar.
“The indictment alleges that, from May 2013 to June 2014, Frederick directed more than $1.7 million in Local 657 funds to STS Contracting,” the Justice Department detailed. “Without the knowledge or authorization of the Local 657 Executive Board or officials in the LIUNA International.”
According to the indictment, Frederick grossly overpaid STS General Contracting for services. One incident involved renovating the Local 657 administrative building. The renovation was not authorized, and reportedly not much was done despite a $1.1 million bill.
The indictment also charged STS General Contracting owners Gary Cooper and Christopher Kwegan. They allegedly knew about Frederick illegally redirecting the union funds and assisted him, and took a cut of the money for themselves.
“The indictment further alleges that Cooper and Kwegan used the stolen Local 657 funds to make a down payment of $225,000 on a home purchased by Frederick,” the Justice Department continued. “And to pay for the construction of a three-car garage on the property, and directed more than $600,000 to a corporation owned in part by Frederick’s wife.”
“In addition, Cooper and Kwegan allegedly depleted a company bank account, which primarily contained stolen Local 657 funds, by withdrawing more than $500,000 in cash,” the department added. “Sending hundreds of thousands of dollars to third parties in Qatar, and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel.”
LIUNA and STS General Contracting did not respond to for comment.
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