As set forth in the superseding indictment and as shown by the evidence at trial, from 1989 until 2011, the Fazios used their leadership positions to collect unlawful payments from various employers whose employees had been unionized by the UFCW. The Fazios utilized the threat of possible labor disruptions and other means to extort annual or biannual cash payments from approximately 12 employers and an administrator who handles and processes medical reimbursement claims on behalf of Local 348’s Health and Welfare Benefit Funds. The Fazios personally collected these secret cash payments from employers and the fund administrator. At least one employer was extorted by as much as approximately $25,000 per year by the Fazios, and the fund administrator was extorted by as much as $5,000 every month by the Fazios.
In addition to demanding extortionate and unlawful labor payments from employers unionized by the UFCW, Fazio, Sr. and John Fazio engaged in a money laundering scheme to steal funds directly from Local 348 and its affiliated Benefit Funds. Among other things, Fazio, Sr. and John Fazio concocted a scheme whereby Local 348 was billed using fraudulent invoices for non-existent goods and services. The Local 348 funds used to pay those bogus invoices subsequently were laundered into cash and siphoned back to Fazio, Sr. and John Fazio.
Over the time period set forth in the superseding indictment, the Fazios extorted and stole well over $1 million from the Union, Local 348’s Benefit Funds, and employers whose employees belonged to the Union.
FBI Press release link: here