Memo from former SEIU leader to U.S. Dep't of Justice and Dep't of Labor regarding top SEIU officials' roles in SEIU scandal involving Tyrone Freeman 09.27.2013

7/27/2019 Memo from former SEIU leader to U.S. Dep't of Justice and Dep't of Labor regarding top SEIU officials' roles in SEI

1/5

TO: TANYA BIRKS, OFFICE OF LABOR MANAGEMENT STANDARDS

FROM: MIKE WILZOCH

RE: TYRONE RICKY FREEMAN

DATE: 9/27/13

CC: US ATTORNEY CHERYL OCONNORUS ATTORNEY MAGGIE CARTER

This is to follow up on our phone conversation. Thank you for agreeing to pass on this

communication to those responsible for pursuing this case in the DOL. Im also copying in 2 DOJ

attorneys I have communicated with before on this case who are also in a position to act on these

issues:

I have two primary concerns:

1) As I have expressed to US Attorneys involved in the investigation and successful prosecution ofFreeman, heclearly relied on many union officials to enable and hide from the membership

and public his criminal activities. There is credible testimony on the record that several of the

highest SEIU officials are among those who were directly informed of Freemans behavior as early

as 2001. There is also the fact that it is a practical impossibility that other members of the SEIU

Executive and many more in the chain of command from 2001 on did not know of the years of this

abuse. Will they be held accountable?

2) Freemans despicable behavior goes beyond the criminal activity forwhich he was convictedbut

also involves violations of labor law and DOL standards which I presume were outside of

the scope of the DOJs investigation. These include writing the Local Unions constitution tomake it absurdly impossible for anyone to challenge Freeman or his hand-picked slate when he

ran for election. The LA Times reported on 8/16/08 that the DOL was investigating complaints

about these provisionswhich required challengers to submit petitions with4,800 members

signaturesof home care workers spread across the state in only 3 weeks to be eligible to

contest Freemans continued reign. This constitution had to be approved by the International,

so claims that they were shocked, shocked by illegal and unethical conduct are as credible as

their hapless public position that no one at the IU knew about any wrongdoing until the Times

reports. Will the case end with whatever scope the DOJs defines as their purview? Or will

the other dishonorable and actionable activities of so many others be held up to the

scrutiny of the rules which govern labor unions?

Freeman is scheduled to be sentenced on October 7th. It goes without saying that, as he is

facing a long prison sentence, right now would be the time he will have the motivation to

come clean to reduce his well-earned severe penaltieswhile facilitating holding accountable

all of those he knew were involved in his egregious conduct.

-1-


2/5

With the sole exception of SEIU possibly being his silent partner in paying his massive legal bills

he has every reason to cooperate. Knowing Freeman, he would need little pressure to give up the

whos who in the Union who he knows first-hand offered their acquiescence, support, or at minimum

hid their knowledge of his nefarious activities.

I mean no disrespect in raising what I hope are pro forma issues. Perhaps they have already been

examined and taken as far as all of the witnesses and evidence allows. If so, I beg your pardon. If

not, I would be very concerned as to why the DOJ, DOL, or others who announced ongoinginvestigations, didnt pull these threads to dramatically minimize the possibility that working people

are ever subjected to this truly evil conduct again. I have already heard back from US Rep George

Millers staff that his Education and Labor Committee passed the baton to the DOJ and did not nor

will not hold the hearings they referred to in 2008.

Based on the evidence I reference below, and my long experience with many of the parties involved, I

repeat that it is a practical impossibility that all of the members of the SEIU Executive and many more

in the chain of command from 2001 on did not know of the years of this abuse. Some actively

supported and enabled it to continue. Others failed in their duty to the workers not to knowingly allow

a member to be harmed. If anyone had the courage of their convictionsand took their oaths and

obligations under the law to be more important than their careers and rising paychecks this could

have been stopped in its tracks in long ago.

While there are too many potential witness interviews, documents, and other leads supporting my

concerns to list here, there are three at this late hour that I believe are worth some serious scrutiny.

(Again, apologies if these have been examined and followed up on fully):

A) LA TimesQuestions to answer

1) Included in the award winning reporting were startling references which included SEIU

spokesperson Steve Trossman. These bear directly on the issue of the International Unions role

in enabling/covering up this scandal, their credibility, veracity, and possible perjury. Perhaps the

most alarming words were Trossmans own, which reflect ham handed attempts to use the I have

no recollection, Senator, defense for himself and the Union. Some statements, including one

made on behalf of SEIU President Andy Stern, were later flatly contradicted by the sworn

testimony of another SEIU official*, in addition to a source whose statements make a lot

more sense than the IUs self-serving and unconvincing memory lapsesthen denials.

(*see testimony of Jim Philliou in B)

2) 9/9/08: In an e-mail, Stern spokesman Steve Trossman said: "As far as I can determine, theInternational Union has not received allegations concerning [Freeman's local] . If theInternational Union receives allegations about a local that warrant further action, we have internalunion procedures for handling them."

3) 9/17/08: A source close to the union said Trossman was informed six years ago ofallegations involving Freeman's finances and personal relationships. It is unclear whether areview was undertaken at that time; Trossman said that the SEIU might have performed an auditof the local because of the allegations, but that he couldn't be sure.

-2-


3/5

The source, who asked not to be identified because he feared retribution, said Trossman helpeddevelop a strategy in 2002 to keep the allegations from embarrassing the SEIU at a time ofepic membership growth.

Trossman's efforts succeeded, the source said. Freeman's local continued to expand as part ofSEIU President Andy Stern's much-celebrated campaign to organize entire industries state bystate. Last week, Trossman said, "I don't remember exactly what happened" in 2002.

Trossman said that he did remember a Times reporter calling him then about the allegations andthat he believes he referred the inquiry to the local. Trossman said he did not talk to Freemanabout the accusations, and does not recall whether Stern was informed.

The source, who told of discussing the allegations with Trossman In an e-mail, Trossmansaid the union was "reviewing records and conducting interviews" at the local but offered nodetails. In response to the July inquiries, Trossman had issued a statement on behalf of Sternthat said the union had received no allegations about Freeman's local .

The source, who said he was party to internal conversations about Freeman in 2002, told TheTimes last week: "The international knew that there were allegations of impropriety many

years ago. This is not news to them."

Nelson Lichtenstein, director of UC Santa Barbara's Center for the Study of Work, Labor andDemocracy, goes on to provide another motive for supporting and covering up for Freeman:the union clearly had an "investment" in Freeman, a Stern protege who has been a high-profile loyalist in the SEIU push to consolidate regional locals into statewide chapters. That effortis being resisted by a handful of dissidents, notably the president of a 150,000-worker Oaklandaffiliate. Stern wants to move 65,000 workers from that local to Freeman's, a proposal thathas triggered a nasty internecine fight.

4) QUESTIONS:

Did Trossman ever get the interview under oath, which he so richly earned? Not to mentionthat this would be essential to establish the scope of the IUs involvement and their credibility

especially considering the hapless nature of Trossmans responses to the reporter and facts

which contradict his statements.

Which of the SEIU Execs, and those in the chain of command, were interviewed under oath?

o Andy Stern, Anna Burger, Eliseo Medina, Tom Woodruff, Mary Kay Henry, Dave Regan,

Mike Fishman, Sheila Velasco, Dave Kieffer, Jon Barton.?

Was the Times source ever given an opportunity to explain their story and be evaluated for

their credibilitywith or without a guarantee of continued anonymity?

Was Jim Phillious subsequent testimony ever used to challenge the clearly dishoneststatements made by the IU at the time the Times broke the story publicly?

B) Deposition of Jim Philliou11/11/09

(US DISTRICT COURT, NORTHERN DISTRICT OF CALIFORNIA

SEIU vs SAL ROSELLI, No. C 09- 00404WHA7)

1) From 1997 to 2004, Jim Philliou was the Organizing Director for SEIUs Western Region,

and reported to International Executive VPs Eliseo Medina and Tom Woodruff.

-3-


4/5

2) Philliou was assigned by the IU to co-sign each and every check issued by Freeman. He

testified that he refused to continue this duty in 2001 due to his concerns about the

large amounts being issued to questionable recipients, such as the child care center,

which turned out to be one of Freemans scams . This one skimmed union funds and directing

them towards his mother in law and trusted aide Rickman Jacksonwho is still drawing a 6

figure paycheck from SEIU.

3) Philliou testified that he informed Sheila Velasco, Eliseo Medinas Chief of Staff, ofhis

concerns, as well as Dave Kieffer, SEIUs Nursing Home Director.4) Philliou was relieved of this oversight dutywhich was then assignedTO NO ONE! Philliou

testified that while he had no first-hand knowledge of a promised audit, Kieffer told him later

that there had been some type of audit and the expenditures were, quote, questionable but

legal, unquote.

5) What kind of audit would not even contact the person with familiarity of the local and its

finances, who went so far as to refuse to co-sign checks he considered dubious which

supposedly generated the alleged audit?

6) Has anyone seen this audit to ascertain if it had been in fact conducted, and if so, how it

managed to miss glaring evidence of unethical and/or illegal activity?

7) Freeman was widely recognized by those in the IU (and in the locals) who communicate

constantly as a less than honorable figure. Freemans Local was the largest in California, was

very high profile for the Union, Andy Stern, his Executives, and his hand-picked loyalist

appointee Freeman. Would anyone care to argue that incendiary reports of this nature,

reaching the highest echelons of SEIU with all that was at stake, never made it to an

agenda topic at Exec Board meetings? Was never discussed by IU staff and officers at

their regular meetings and conferences, not to mention their personal interactions?

8) As quoted in the New York Times on 9/2/08: Jono Shaffer, a leader of the unions Justice

for Janitors campaign in Los Angeles, wondered why it had taken so long to uncover the

problems in that citys giant home-care local. I wish I could say this is unbelievable, but forthose of us in Southern California, the only surprise is that it took so long to make it to the

public, Mr. Shaffer wrote.

THE BOTTOM LINE: There need be no speculation about the veracity of the IU

Trossman claimed in 2008, on Sterns behalf, thatthe International Union has not

received allegations concerning [Freeman's local].

Philliou testified that he refused to co-sign Freemans dubious checksand reported

this in 2001 to Eliseo Medinas chief of Staff and the head of the Nursing Home Division,

which allegedly generated an audit. How does this not count as the IU receivingallegations concerning [Freeman's local]?

It is now a rhetorical question as to which is far more likely to be true. Even without the

source and the dramatically evident self- interest of the IU to duck and coverit

wouldnt take Sherlock Holmes to determine the truth. The only question is who has/will

be interviewed under oath and the penalty of perjuryand how far up the ladder the

investigating parties (DOJ/DOL) arewilling to go to hold accountable all who violated

laws & standards applicable to the individuals in question.

-4-


5/5

C) Freemans Objections to Sentencing Report 07/22/13

(US DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIAUS vs. TYRONE R. FREEMAN Case 2:12-cr-00734-ABC Document 185-1 Filed 07/22/13Page 1 of 2 Page ID #:4523)

1) Freeman is haplessly arguing that his time spent at the Grand Havana Room in Beverly Hills,where the $9/hr homecare workers paid his $9K initiation fee, $800/mo for his personalhumidor, and countless meetings where $175 glasses of cognac and other working class fare

was served, was work related and therefore not subject to any negative sentencingrecommendation.

2) More importantly, it is revealed that staff members participated, from what appears in theemails he used as evidence, in a regular Friday from 4 to 7 pm meeting at this den of iniquity,courtesy of the members dues dollars.

3) The email lists officials and staff who apparently participated in this grotesque violation of thesame ethical and legal standards Freeman so casually disregarded. They certainly deservetheir day in court. They are listed in the aforementioned case, and include MatthewMaldonado, Freeman's top aide; Will Hirst, a close aide to Freeman; Tom Csekey, thecurrent Membership Director of Local 6434; Wendy Duchen, the current Director of Regions 1

and 4 for Local 6434; Benigno Delgado;Yvonne Olivares; Louis Jamerson; and others.

WHY I AM FOCUSED ON THIS CASE

I am a 23 year veteran of SEIU. I have served as an organizer, representative, director, and Union

President. I knew personally many of the officials involved in this disaster besides Tyrone Freeman,

including Andy Stern, Eliseo Medina, Sheila Velasco, Tom Woodruff, Dave Regan, and a number of

as-of-yet unnamed (to my knowledge) staffers and leaders of the SEIU International.

We have enough problems dealing with widespread illegal and unethical conduct from employers and

the corporate elite. They dont need any help right now from labor leaders who may have done great

things once, but lost the plot and forgot just who it is who pays the bills, including their escalatingcompensation packages. When the abuse of poor homecare workers is handled as a PR problem,

then those who knew about and/or enabled it feed a culture of arrogance, entitlement and corruption.

If they are not held accountable, they and everyone else learns that being well connected is more

important than taking seriously the responsibility to advocate honestly and relentlessly for working

people and our families. They not only continue to profit, sometimes extravagantly, from the honest

work of the rank and file, but are also recycled through the labor movement.

For instance, Louis Jamerson, part of Freemans Beverly Hills crew listed above, is now a Deputy

Trustee at the Local I helped build for 15 yearsSEIU Local 105 in Denver. My salary as Presidentwas $40K/yra few bucks a week more than the staff I supervised. While all things change, I would

like to hope that the poisonous culture of staff entitlement and disrespect for the workers at

Freemans little shop of horrorsand elsewhereis not spread more than it already has. He is just

one notable symptom of a larger tragedy. This is a cancer which I have seen first-hand cause painful

damage to the cause of justice for workers in this countryand the prospects for a principled and

thriving labor movementwhich is needed now more than ever. Please do everything in your

power to pursue justice for these workers, no matter how high up the ladder the evidence

leads.

-5-

Documents

Memo from former SEIU leader to U.S. Dep't of Justice and Dep't of Labor regarding top SEIU officials' roles in SEIU scandal involving Tyrone Freeman 09.27.2013