January 23, 2004
John Yembrick
P. O. Box 61129 Houston, TX 77208
Phone: 713/567-9388 Fax: 713/718-3389
E-Mail: usatty.txs@usdoj.gov
FORMER INTERNATIONAL PRESIDENT OF UNITED TRANSPORTATION UNION PLEADS GUILTY TO LABOR RACKETEERING
CONTACT AUSA: Edward F. Gallagher
PHONE: (713) 567-9343
(HOUSTON, TX) United States Attorney Michael Shelby announced that Charles Little, 69, of Leander, Texas, the former International President of the United Transportation Union, pled guilty today to labor racketeering conspiracy. Little is the highest ranking union official ever convicted in the Southern District of Texas. Little now becomes disqualified by law from employment with labor organizations or employee benefit plans or from service as a labor relations consultant for a period of 13 years after the completion of any term of imprisonment resulting from this conviction. Little will forfeit to the United States $100,000, representing proceeds of the racketeering activity.
During today's rearraignment hearing before U. S. District Judge Sim Lake, Little admitted to using his position as international president from 1995 to 2001 to solicit and collect cash payments and other things of value, and direct other union officials to do the same, from attorneys doing business with the union beginning with his campaign for international president in 1994, and ending with his retirement from the union in February 2001. Little used the money to fund his campaigns and for his personal use.
"This conviction is a significant step toward seeking justice for the many honest and hard working members of the UTU. Union officials who abuse their authority through bribery and greed will be prosecuted to the fullest extent of the law", said U. S. Attorney Shelby.
Little was indicted by a grand jury on September 12, along with current UTU international president, Byron Alford Boyd, Jr., 57, Seattle, Washington; former UTU
Director of Insurance Ralph Dennis, 51, Boone, Iowa; and special assistant to Boyd, John Russell Rookard, 57, Olalla, Washington. All four were charged with conspiring to violate federal mail and wire fraud statutes, and interstate transportation in aid of racketeering through commercial state bribery, by using their positions of authority to solicit and collect cash payments and other things of value from attorneys doing business with the union. Boyd served as Little's assistant president and took over the position as international president following Little's February 2001 retirement.
Little told U.S. District Judge Sim Lake that he and current International President Byron Boyd collected thousands of dollars in cash from attorneys seeking to become designated by the union and designated attorneys seeking to keep to their designation. Little also admitted that he and Boyd caused Ralph Dennis and John Rookard to travel at union expense around the United States to personally solicit cash from designated legal counsel (DLC) to be used for Little's 1995 and 1999 campaigns and unspecified special projects. During the conspiracy, Little personally benefitted approximately $100,000 and has agreed to forfeit an equal amount to the Government.
Little acknowledged that the racketeering acts involved a scheme to dominate and control the UTU and the designated legal counsel (DLC) program of the UTU through the commission of mail fraud, wire fraud, interstate travel in aid of racketeering, state commercial bribery, and union embezzlement. The scheme was used to generate illegal income for himself, his co-defendants, and others. Little admitted that the cash he received either directly or indirectly from DLC was tendered by DLC with an understanding and belief by Little and the DLC that Little's official conduct as an officer of the UTU would be influenced.
Little caused the use of the United States mail by sending letters from the UTU signed by him in his capacity as International President to the DLC, and to Chairpersons, U.S. Local Chairpersons, and State legislative Directors of the UTU in furtherance of the scheme. Among the many mailings was a mass mailing to all DLC in December 1995 requiring the DLC to submit letters of resignation; specific letters sent to attorneys awarding them a designation with the UTU as DLC where the attorneys paid thousands of dollars cash to Little either before or after receiving their designation; and mass mailings to DLC and union officials identifying a list of DLC and the rules of conduct that governed the DLC, including a prohibition against becoming involved in union politics.
Little told the court that he and his Assistant President, Byron Boyd, directed Ralph Dennis and John Rookard to expend union funds to travel in interstate commerce to various cities in the United States for the purpose of soliciting and collecting cash payments from various DLC. Little resigned his position as international president in February 2001, well before the July 2003 elections, after securing an agreement from Boyd to pay Little $100,000.00 cash and a new pickup truck as a retirement gift.
Little faces a maximum of twenty years imprisonment and a fine of $250,000 at his sentencing which is scheduled for April 09, 2004.
Dennis pled guilty to racketeering conspiracy last October and agreed to forfeit $25,000 to the United States. Boyd and Rookard are scheduled to go to trial March 22, 2004. Dennis faces up to twenty years imprisonment and fines up to $250,000.00.
The United Transportation Union (UTU) is an international labor organization based in Cleveland, Ohio, with over 125,000 members consisting of railroad, bus, airline, and mass transit employees and retirees. Boyd and Rookard will continue in their positions pending the outcome of the criminal charges.
Defendants are presumed innocent unless and until convicted through due process of law.
The investigation of former and current officers of the UTU was initiated in 1999 by agents of the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General and Office of Labor Management Standards. The investigation continues. The case will be prosecuted by Assistant United States Attorneys Edward Gallagher and Richard Magness, Houston Organized Crime Strike Force, and Trial Attorney Vincent Falvo, U.S. Department of Justice, Organized Crime and Racketeering Section, Labor Unit.
8:37:43 PM 
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