Former Union Official Receives Prison Term for Stealing Union Welfare Funds
Forged Checks Totaled More Than $454,000

PORTLAND—Thomas V. Wallace, 50, of Wamic, Oregon, was sentenced today before U.S. District Court Judge Garr M. King to one year plus one day in prison after pleading guilty to one count of forgery in connection with a theft of union benefit funds. In May of last year, Wallace admitted forging checks drawn on bank accounts controlled by Division 757 of the Amalgamated Transit Union, while he was serving as Financial Secretary-Treasurer of the Union.

An information filed by the United States Attorney charged that Wallace forged approximately 176 checks totaling over $454,000 during the period 2000 to 2006. The checks were made payable to Wallace or to cash and were used for his personal expenses. The funds were taken from bank accounts which held special employee benefits funds contributed by employers pursuant to union contracts. The thefts were discovered during an audit of Division 757 funds in early 2007.

During the sentencing hearing, Wallace’s attorneys asked the court for leniency, noting that Wallace had repaid about $140,000 to the union. They also claimed that the thefts were the result of a gambling addiction and other personal and health related circumstances. The court nevertheless imposed the prison sentence, but directed that Wallace not report to serve his sentence until July 2009. He was also ordered to continue to work and pay restitution during the interim. Until he reports to prison, Wallace will be on a schedule of home detention monitored by a probation officer. He will be allowed to leave his home only for work, medical appointments or as permitted by his probation officer.

This case was investigated by the U.S. Department of Labor, Office of Labor-Management Standards, assisted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Lance Caldwell.

 

 

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