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Compliance March 26, 2009
Union Officers Indicted for Embezzling Pension Funds
March 26, 2009 (PLANSPONSOR.com) - A federal grand
jury indicted the former president and recording secretary of
the Waterfront Guard Association Local 1852, I.W.A. (WGA) for
embezzling funds from the union's pension and welfare
plans.
Reported by Rebecca Moore
According to an announcement from United States Attorney for the District of Maryland Rod J. Rosenstein, the 18 count indictment also said Paul S. Peters, II and Brian Armentrout, from January 2002 through September 2005, embezzled funds from the union’s operating account. The former officers allegedly used the union money for personal expenses and purchases, including vehicles, boarding costs for horses, home improvements, stock transactions and home mortgage payments.
The indictment alleges that Peters would transfer funds from the union’s pension and welfare plans to the union operating account. Peters and Armentrout would make cash withdrawals from the union operating account, as well as write checks payable to themselves on the union operating account then cash the checks or deposit the union funds into their personal bank accounts, the announcement said.
Peters faces a maximum sentence of five years in prison for each of seven counts of embezzlement from a labor union, six counts of embezzlement from an employee benefit plan, and conspiracy. Armentrout faces the same sentence on each of four counts of embezzlement from a labor union and conspiracy.