(Bloomberg News circulated the following story on September 16.)
NEW YORK — The present and former presidents of the biggest U.S. railroad union were charged Monday with illegally accepting payments in exchange for steering workers to lawyers approved by the union to file injury claims.
The indictment of Byron Boyd, 57, of Seattle, who leads the 125,000-member United Transportation Union, and his predecessor, Charles Little, 69, of Leander, Texas, followed a four-year investigation, said U.S. Attorney Michael Shelby in Houston.
Boyd and Little allegedly received money and unspecified “things of value” from people who were placed on a list of recommended claims lawyers. The indictment includes racketeering, conspiracy and other charges. A total of $477,000 was paid to union officials, Shelby said.
“We cannot and will not tolerate union officials who abuse their position of trust,” Shelby said. “Every union has the right to expect that his or her elected leaders will conduct themselves honestly.”
Boyd said in a statement released by the union, which is based in Cleveland: “I have every intention to pursue this matter to a final and full conclusion that completely exonerates me. I respond to the allegations made today in Houston by declaring that they are unfounded.”
John Rookard, 57, of Olalla, Wash., and Ralph Dennis, 51, of Boone, Iowa, also were charged. Little and Rookard, who works for the union in Cleveland, were in Houston on Monday, said union spokesman Frank Wilner. They couldn’t be reached to comment. Dennis resigned from the union in July and didn’t say where he was going, Wilner said.
Injured rail employees are covered by a 95-year old statute called the Federal Employers Liability Act, which requires workers to sue their employer in order to obtain compensation.
If convicted, the union officials could face as much as 20 years in prison and a fine of $250,000 on the racketeering and conspiracy charges. The indictment also includes charges of mail fraud against Boyd and Little that carry a penalty of as many as 10 years in prison and a $250,000 fine.
The Federal Bureau of Investigation and the Department of Labor’s inspector general conducted the investigation.