Ten Members of Pennsylvania Ironworkers Union Arrested on RICO Charges

Ten members of the a Philadelphia-area ironworkers union have been arrested on RICO charges including racketeering and arson to coerce building contractors to hire them over non-union workers.

Federal prosecutors said they had arrested 10 of the union’s business officials and members on RICO charges on Tuesday, February 18th. United States Attorney Zane David Memeger announced the indictment of Joseph Dougherty, the union’s Financial Secretary and Business Manager had been charged with three counts of Racketeer Influenced and Corrupt Organization (RICO) conspiracy and arson; he also added the arrest and indictment of Local 401 business agents Edward Sweeney, Francis Sean O’Donnell, Christopher Prophet, William O’Donnell and union members James Walsh, William Gillin, Richard Ritchie, Daniel Hennigar and Greg Sullivan, who were all charged with RICO conspiracy, violent crime in aid of racketeering, multiple counts of arson and use of a fire to commit a felony and conspiracy to commit arson.

“Union officials and members who commit arson, destroy property, use threats of physical harm, and engage in other acts of violence to extort victims on behalf of their union need to be criminally prosecuted. Today’s indictment makes that clear,” Memeger said.

The men allegedly targeted properties like a Toys R Us in suburban Philadelphia, as well as a Quaker meetinghouse in Philadelphia’s Chestnut Hill neighborhood. The RICOindictments seem to back up long-standing complaints from the city’s developers over labor union tactics.

The 49-page indictment alleges that the union members formed “goon squads” to target, assault, and destroy property in order to prevent non-union laborers from receiving lucrative building contracts which went to members of the Ironworkers Local 401. One goon squad even referred to itself as The Helpful Union Guys, aka T.H.U.G.

Reportedly, members of the goon squads were told they would receive preferential treatment on job assignments and for positions within the union hierarchy.

The indictment followed 11 episodes during just over three years up to October 2013. One incident, in which the union members allegedly cut steel beams in a Quaker meetinghouse, led to $500,000 in property damage.

In a statement, Walter W. Wise, president of the Ironworkers international union, said “we have never and will never tolerate any of the alleged acts contained in the accusations.”

“While unions have the right to legally advocate on behalf of their members, my office will not tolerate the conduct of those who use violence to further union goals,” said Memeger.

What is RICO?

RICO charges involve the operation of an illegal business or enterprise, including a fraudulent scams, for an individual or entity’s personal profit.

The federal Racketeer Influenced and Corrupt Organizations Act (RICO) and similar state racketeering laws give the government a tremendous amount of power to go after those accused of racketeering.

The RICO act is broad and covers a variety of white collar crimes including:

• murder,
• the transportation and distribution of drugs,
• gambling,
• embezzlement,
• extortion,
• theft/armed robbery,
• money laundering, and
• bribery

The Strom Law Firm Can Help with RICO Charges

Being arrested or investigated for federal criminal charges can be very stressful. However, just because you are under a great deal of pressure does not mean that you are automatically guilty, or that you have no rights in court. For experienced RICO and federal criminal charges defense attorneys who will fight for your rights and work to have your charges reduced or even dismissed, contact the attorneys at the Strom Law Firm, today. We offer free, confidential consultations so that you can discuss the facts of your case with impunity, in a safe environment. Do not hesitate to contact us. 803.252.4800.