Teamsters Coli RICO Complaint

EASTERN DIVISION FOR THE NORTHERN DISTRICT OF ILLINOIS

IN THE UNITED STATES DISTRICT COURT

4592430

1 THROUGH 10, all of whose names : JOHN DOE CORPORATIONS : : and : : are unknown : 1 THROUGH 100, all of whose names : JOHN AND JANE DOES : : and : : Park Ridge, IL 60068, : 1300 W. Higgins Road, Suite 111 : TEAMSTERS LOCAL 727 : : and : : Park Ridge, IL 60068 : 1300 W. Higgins Road, Suite 111 : JOHN T. COLI, JR. : : and : : Park Ridge, IL 60068 : JURY TRIAL DEMANDED 1300 W. Higgins Road, Suite 111 : WILLIAM COLI : : and : : Park Ridge, IL 60068 : 1300 W. Higgins Road, Suite 111 : JOHN T. COLI, SR. : : Case No. v. : :

, : : Chicago, IL 60625, : 5303 N. Western Ave. : SCI ILLINOIS SERVICES, INC. :

Plaintiff

Case: 1:11-cv-07762 Document #: 1 Filed: 11/01/11 Page 1 of 65 PageID #:1

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. : : are unknown , : 1 THROUGH 10, all of whose names : OTHER JOHN DOE ENTITIES : : and : : are unknown :

Defendants :

COMPLAINT

INTRODUCTORY STATEMENT

Organizations Act, 18 U.S.C. § 1961,

protections and remedies afforded under the Racketeer Influenced Corrupt

above-captioned defendants and seeks the

Plaintiff, SCI Illinois Services, Inc., by and through its undersigned counsel,

hereby complains of the actions of the

et seq.

business even existed; (4) conspiring to

ness relating to a time period before the question; (3) including claims against a busi

were not even in the union or doing bargaining unit work during the time periods in

settlement agreements exist; (2) including in

including in fund audits claims that had previously been settled and for which signed

The scheme includes, but is not limited to, the following acts: (1)

fraudulently inflated audits of Plaintiff's funeral homes and repeated improper

The scheme, which dates back to 2002 and is continuing, relates to

perpetrated by Defendants over a number of years.

an extortionate, fraudulent scheme

Plaintiff brings this complaint for permanent injunctive relief and to

1.

recover damages sustained as a result of

2.

demands for contributions to union health, pension and education funds.

3.

audits claims on behalf of employees who

purposely avoid correcting and refusing to


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THE PARTIES

maliciously vandalizing three of Plaintiff's funeral home buildings.

to include witness tampering and obstruction of justice by, among other things,

no longer submit to Defendants' extortion and fraud, Defendants broadened the scheme

Recently, when Plaintiff determined to fully exercise its legal rights and

to bear and procuring greater amounts of thereby bringing additional financial pressure

that above-market interest rates and penalt

purposely delaying and avoiding efforts to resolve any discrepancies in the audits so

and fraudulent claims would be less expensive than continuing to fight; and (6)

forcing it to spend considerable time, effort and money so that payment of the bogus

and burdensome informational requests for the sole purpose of harassing Plaintiff and

) acting in bad faith by making irrelevant correct known errors in the funds’ audits; (5

ies would accrue for as long as possible,

revenue to the funds.

4.

(together “the Local 727 Funds” or “the Funds”).

trustee of Teamsters Local Union No. 727 Legal and Educational Assistance Fund

Local Union No. 727 Pension Fund; and (iii) a

"the Union"). Coli Sr. is also: (i) a trustee of Teamsters Local Union No. 727 Health and

60668. Coli Sr. is the Secretary and Treasurer of Teamsters Local 727 (“Local 727” or

W. Higgins Road, Suite 111, Park Ridge, IL individual with a place of business at 1300

Defendant, John T. Coli, Sr. ("John Coli, Sr." or "Coli Sr."), is an

principal place of business located at 5303 N. Western Avenue, Chicago, IL 60625.

Plaintiff, SCI Illinois Services, Inc., is an Illinois corporation having a

5.

6.

Welfare Fund; (ii) a trustee of Teamsters


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100, John Doe Corporations 1 through 10 and Other John Doe Entities 1 through 10

At all times relevant hereto, Defendants John and Jane Does 1 through

the names and addresses of residences of which are unknown.

Defendants Other John Doe Entities 1 through 10 are other legal entities,

names and addresses of residences of which are unknown.

Defendants John Doe Corporations 1 through 10 are corporations, the

names and addresses of residences are unknown.

Defendants John and Jane Does 1 through 100 are individuals whose

Higgins Road, Suite 111, Park Ridge, IL 60668.

cipal place of business located at 1300 W. United States and Canada, having a prin

Brotherhood of Teamsters, a labor union representing employees throughout the

Defendant, Teamsters Local 727, is a local chapter of the International

Jr. and Bill Coli are referred to as the “Coli Defendants.”

727, his uncle, Michael Coli, was the President

of each of the Local 727 Funds. Prior to John Coli, Jr. serving as President of Local

Coli Jr., the son of Coli Sr., is the President of Local 727 and, like his father, is a trustee

Road, Suite 111, Park Ridge, IL 60668. with a place of business at 1300 W. Higgins

Defendant, John T. Coli, Jr. ("John Coli, Jr. or "Coli Jr."), is an individual

Recording Secretary for Local 727, the Fund Administrator for the Local 727 Funds and

business at 1300 W. Higgins Road, Suite 111, Park Ridge, IL 60668. Bill Coli is the

Defendant, William Coli ("Bill Coli"), is an individual with a place of 7.

John Coli Sr.’s brother.

8.

of the Union. Collectively, Coli Sr., Coli

9.

10.

11.

12.

13.


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Union members as well as employers whose employees are represented by the Union.

have inherent conflicts of interest and self-dealing opportunities to the detriment of

The Coli Defendants, by dominating the Union with relatives and allies,

serves as the Fund Administrator and exercises control over the Funds' audit process.

Defendant John Coli, Jr. and Joseph Coli. Additionally, Coli Sr.'s brother, Bill Coli,

mily, including himself, and his two sons, members of Defendant Coli Sr.'s immediate fa

Of the four union-side Trustees of the Local 727 Funds, three are

their allies.

and protect employment and compensation security for themselves, their relatives and

to allow the Coli Defendants to control

James E. Coli, all have previously served in powerful leadership roles in the Union.

Defendant Coli Sr.’s brothers, James L. Coli and Michael Coli, along with their father,

to maintain control of Local 727 by installing

The Coli Defendants control Teamsters Local 727 and have and continue

forms of extortion and pressure when Plaintiff chose to resist rather than submit.

findings of amounts allegedly owed to the Funds and using violence as well as other

intentionally and falsely inflating audit scheme to defraud and extort Plaintiff by

the John Doe Defendants, have conducted the affairs of the Local 727 Funds through a

The Coli Defendants, in concert with each other, the Defendant Union and

(collectively, the "John Doe Defendants") were associated with and/or controlled by the

Coli Defendants and/or the Union, and are reasonably on notice of this complaint.

14.

15.

relatives and allies in positions of power.

This arrangement has allowed and continues

16.

17.


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financial interests and maintaining control of the Funds and the Union.

improving their image, consolidating their control and thereby protecting their own

scheme to wrongfully extort money that the Funds are not entitled to for the purpose of

The Coli Defendants are engaging in this with regard to the other union benefit plans.

at risk their job security and generous compensation packages. Similar motives exist

raising questions about their competence and issues of nepotism, cronyism,

of the Coli Defendants, causing their job performance to be called into question, and

ial source of embarrassment for and criticism status of the pension fund is also a potent

therefore seeking to augment the pension fund by engaging in this fraudulent and

primary revenue source for the Union. The Coli Defendants and the Union are

recruit and retain members, which has the effect of diminishing membership dues

the Funds impacts the Union’s ability to its leadership. The underfunded status of

rrassment and criticism for the Union and

The Union’s pension fund is seriously

Funds, the Coli Defendants and the Union are seeking to serve and protect their own

contributions from Plaintiff into the By engaging in the scheme to extort

soundness of the Funds by any, including illegal, means.

contributions from Plaintiff into the By engaging in the scheme to extort 18.

Funds, the Coli Defendants are seeking to increase the viability and perceived financial

19.

direct and indirect financial interests.

underfunded and a source of potential emba

− the

extortionate scheme to reduce the level of underfunding. The seriously underfunded

qualifications, experience and general fitness to carry out their responsibilities, placing


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JURISDICTION AND VENUE

THE DEFENDANTS' SCHEME

within this district.

and 18 U.S.C. § 1964(c), as the events which

Venue is properly placed in this district pursuant to 28 U.S.C. § 1391(a)

§§ 1331 and 1337.

This Court has jurisdiction pursuant to 18 U.S.C. § 1964(c) and 28 U.S.C.

20.

21.

give rise to the claims asserted occurred

audits relating to how much was owed to the Local 727 Funds, continually abusing the

used ERISA, the collective bargaining agreement and the courts as a bludgeon.

Defendants, in concert with one another and by controlling the Funds' management,

pay by using threatened and actual litigation which was in great part meritless.

ter amounts than Plaintiff was required to Plaintiff into submission and extorted grea

amounts well in excess of what was legitimately owed. Defendants have pummeled

Defendants have perverted this legitimate process into a scheme to

made as to whether the required amounts have been contributed.

intended to provide a legitimate means by which an accurate determination can be

employee. An audit process set forth in the Funds' Statement of Audit Procedures is

Union, Plaintiff is required to pay into

ctive bargaining agreement with the ("ERISA"), and the Plaintiff's colle1001,

Security Act of 1974, 29 U.S.C. Under the Employee Retirement Income

22. §

et seq.

the Funds certain amounts for each eligible

23.

defraud Plaintiff. For years, Defendants have falsified audit reports and demanded

24. Defendants have conspired to and have falsely and intentionally inflated


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and whether Coli Sr.'s. attendance at that

agencies. Discovery will reveal if there even was a meeting with the Mayor at that

name in the context of leaving a court-ordered deposition was a statement that Coli Sr.

authorities based in Chicago. Plaintiff believes that Coli Sr.’s mention of the Mayor’s

ship with Mayor Emanuel as a political

requiring him to testify. Plaintiff also

onship with the Mayor as a justification emergency basis. Coli Sr. was using his relati

icago, Rahm Emanuel, needed him on an a short time claiming that the Mayor of Ch

y, he unilaterally left the deposition after available for a full day of deposition testimon

Notwithstanding the Court’s instruction that Coli Sr. make himself

belligerent and uncooperative, stating, "For the record, go fuck yourself."

vigorously. When the court finally ordered him to attend he did appear, but was

key individuals, including Defendant John Coli, Sr. Coli Sr. resisted his deposition

Funds at the control and direction of the Defendants, Plaintiff sought the deposition of

enormous legal expenses, Plaintiff decided to fight instead. In litigation brought by the

Finally, after years of Plaintiff submitting to extortion and incurring

legitimate audit process year after year to extort as much money as possible from

Plaintiff for the Funds.

25.

26.

for violating with impunity the court order

believes that Coli Sr. was using his relation

threat to Plaintiff. Plaintiff has significant and ongoing dealings with city and state

is very close with the Mayor and could cause harm to Plaintiff’s economic interests by

interfering with Plaintiff’s legitimate need for interacting with local regulatory

time, how long this meeting actually lasted,

specific time was urgent.


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cially inflated amounts within audits settlement agreements; (5) including artifi

that are known to be subject to prior including individuals and locations in audits

included in audits when Plaintiff did not

) alleging deficiencies against businesses Plaintiff had already made contributions; (3

individuals in audits for whom Plaintiff d

the Funds through the use of fraudulent and misleading audits; (2) including

following methods: (1) artificially inflating the amounts alleged to be due and owing to

Plaintiff to continue to submit as Plaintiff had in the past.

of Defendants' effort to frighten and force Coli Sr. as a witness at trial in furtherance

te and corruptly deter Plaintiff from calling

Shortly after the second session of Coli Sr.'s deposition, Defendants

to be intimidated and continued to depose harassing and irrelevant. Plaintiff refused

Coli Sr.'s displeasure at being deposed and being asked questions Coli Sr. found

abruptly left, Coli Sr.'s attorney, Robert B. Greenberg ("Attorney Greenberg"), conveyed

At a status conference held after the deposition session where Coli Sr.

intervention for a second time, and Coli Sr. was again ordered by the Court to appear to

refused to return to complete his testimony. Plaintiff was forced to seek court

Following Coli Sr.’s decision to leave the court-ordered deposition, he 27.

complete his deposition.

28.

Coli Sr.

29.

vandalized multiple businesses owned by Plaintiff with the intention of obstructing

justice. Defendants intended to intimida

30. Defendants' scheme, used repeatedly to defraud Plaintiff, involves the

oes not owe contributions and/or for whom

owe contributions for such businesses; (4)

relating to livery removals and trips; (6) using litigation and the threat of steadily


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victims, predicate acts and other characteristics.

The scheme to defraud Plaintiff involv

its coffers with additional membership dues.

ion's ability to attract new members and fill

likelihood of embarrassment to and criticism of the Coli Defendants relating to the

a result of: (1) the Union's significantly

increase their political power and control over the Union and have greater job security

By increasing the size of the Local 727 Funds, the Coli Defendants

into the future.

scheme to defraud and extort will continue

The Coli Defendants have threatened Pl

The Defendants commenced the scheme to defraud Plaintiff in 2002

the value of the Funds, enriching the Defendants and increasing the Coli Defendants'

extort Plaintiff over a period of many years with the intent of fraudulently increasing

Defendants conceived and have carried out the scheme to defraud and

terest and penalties on such amounts. amounts not owed as well as exorbitant in

destruction as a threat to Plaintiff so that Plaintiff would simply submit and pay

force Plaintiff to settle disputed claims and pay amounts not owed; and (7) property

increasing interest and penalties on allegedly delinquent contributions as a sword to

31.

power within Local 727.

32. and it

continues through to the present day.

33. aintiff that additional audits will

be forthcoming, thereby indicating that the

34.

for themselves, their relatives and allies as

underfunded pension plan becoming more economically viable, thereby reducing the

status of the pension plan; and (2) the Un

35. es similar transactions, enterprises,


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The acts of Defendant Bill Coli as Fund Administrator were ratified and

The acts of all Defendants were the acts of the Defendant Union as agents

the Coli Defendants control the Union.

The acts of the Coli Defendants were the acts of the Defendant Union as

agents of the Union.

The acts of the Coli Defendants were the acts of the Defendant Union as

The act of each of the Defendants is the act of each of the other

furtherance thereof and previously committed.

scheme to defraud and extort Plaintiff.

The Defendants conspired with each other and, in concert, engaged in the

the scheme to defraud and extort Plaintiff,

The Defendants have violated federal racketeering laws in the course of

to defraud Plaintiff. furtherance of the scheme

ions of an employee benefit plan in

The Defendants have engaged in witness tampering, obstruction of justice

to defraud Plaintiff. furtherance of the scheme

The Defendants have repeatedly employed the U.S. mails and wires in 36.

37.

and unlawful influence regarding the operat

38.

and Plaintiff has been directly harmed as a

result of such violations.

39.

40. Each of the Defendants, upon joining the conspiracy, ratified the acts in

41.

Defendants.

42.

43.

44.

of the Union.

45.

approved by the other Defendants.


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Plaintiff for the period covered by the CBA (the "B&K audit").

performing payroll audits relating to funeral homes, to perform a field payroll audit of

accounting firm with no prior history of Kiener, L.L.P. ("B&K"), a certified public

Five days after the expiration of the CBA, Defendants directed Bansley &

The Bansley & Kiener Audit

to the Funds of the employee's benefit employee and Plaintiff following notification

virtue of a mutual agreement between the regional managers or area managers by

making contributions to the Funds for indi

ion 9.5, Plaintiff may be exempted from employees under the CBA. Pursuant to sect

Plaintiff is exempt from making co

the Funds on account of eligible employees covered by the CBA.

as well as funeral director and embalmer trainees.

The CBA covers auto livery chauffeurs, funeral directors and embalmers,

second covering July 1, 2010 through June 30, 2013.

bargaining agreements, the first covering July 1, 2007 through June 30, 2010 and the

Local 727 and Plaintiff have since been parties to two successor collective

agreement ("CBA") commencing July 1, 2002 and ending June 30, 2007.

Local 727 and Plaintiff were parties to a five-year collective bargaining

The Audit Process

Defendants, was acting as the agent of the other Defendants.

Defendant Bill Coli, in furtherance of the conspiracy between the 46.

47.

48.

49.

50. Under the CBA, Plaintiff is required to fund delineated contributions to

51. ntributions on behalf of certain

viduals employed as district managers,

package.

52.


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information and to monitor the status of the audit."

selection as an audit target, the Fund Office opened an audit file "to compile

Pursuant to the Fund's Statement of Audit Procedures, upon Plaintiff's

the Board of Trustees of the Funds. The stated purpose of the audit was "to determine

Plaintiff that it had been selected for a field payroll audit to be conducted on behalf of

On July 12, 2007, B&K sent a letter to Plaintiff wherein B&K advised

Trustees for the Funds, including, to Defendants John Coli, Sr. and John Coli, Jr.

The status of the audit procedure was regularly reported to the Board of

Defendant Bill Coli were approved, agreed to and/or ratified by Defendants Coli Sr. and

Bill Coli in his capacity as Fund Administrator. All actions and omissions by

The entire audit procedure was monitored and controlled by Defendant

funeral homes owned by Plaintiff in the State of Illinois.

The B&K audit was the first "employer-wide" audit that covered all

payroll audits of contributing employers in the funeral home industry on a location-by-

Professionals LLP ("Legacy") and

53. Prior to the B&K audit, the Funds had regularly retained Legacy

Thomas Havey LLP ("Thomas Havey") to perform

location basis.

54.

55.

Coli Jr.

56.

57.

[Plaintiff's] compliance with its obligation under the fringe benefit provisions of [the

CBA] with Local 727."

58.

59. The Funds were also required to send any Fund records necessary to the

auditor, including checking employer information sheets on file to determine if previous


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every one of Plaintiff's employees. The Defendants' purpose in causing B&K to seek

were not specific enough and that B&K needed more detailed descriptions for each and

Specifically, B&K claimed that the job descriptions provided by Plaintiff

of individuals for whom B&K claimed it need

employees.

and information relating to Plaintiff's

After receiving the July 12, 2007 letter,

inaccurate assessments.

amounts not owed, together with interest and penalties based on the underlying

to (3) strong-arm Plaintiff into paying

ount of purported delinquent contributions

K issue a report that artificially inflated extort money from Plaintiff by (1) having B&

The Defendants withheld such records as the first step in seeking to

prior audit results.

eements between Plaintiff and the Funds and including, inter alia, prior settlement agr

contribution information and copies of contact with the employer was made, employer

contracts for the audit period.

60. The Defendants intentionally failed to send necessary records to B&K,

61.

the scope and size of the audit and the am

owed by Plaintiff, and (2) having the Board of Trustees institute litigation based upon

the intentionally erroneous audit report, so as

62. Plaintiff cooperated with B&K by

regularly meeting with B&K representatives and providing thorough and detailed

payroll records, job descriptions, livery logs

63. In or around March 2008, B&K provided Plaintiff with a list of exceptions

ed additional information for purposes of

completing the audit.

64.


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("CFR") of the Funds, under the direction of Defendant Bill Coli, the Fund

Funds and B&K to provide documentation needed to allow for the proper revision of the

initial draft of the audit, Plaintiff made continuous concerted efforts to work with the

Contrary to Mr. Pater's letter to Defendant Bill Coli, after receiving the

the remaining payroll records "necessary to complete [B&K's] audit."

findings. Pater also requested in the May 5 letter the Funds' assistance in obtaining

regarding B&K's request for additional docu

to Defendant Bill Coli claiming that B&K ha

issued a copy of same to Plaintiff and Defendant Bill Coli.

On April 22, 2008, B&K prepared a preliminary report of deficiencies and

information before issuing its preliminary audit report.

B&K, at the direction of the Defendants, had

After its March 2008 meeting with B&K, Plaintiff began the lengthy and

the Defendants as a pretext for not removing the artificially-inflated numbers in the

The additional information that B&K claimed it needed was not actually

expensive as possible so that Plaintiff would pay amounts it did not owe.

rass Plaintiff and make the process as more detailed job descriptions was to ha

65.

necessary for purposes of completing the audit, but was requested at the direction of

B&K audit report.

66.

arduous process of compiling the additional information sought by B&K; however,

no intention of waiting for the additional

67.

68. On May 5, 2008, Gary Pater ("Pater"), a partner with B&K, wrote a letter

d not received any response from Plaintiff

mentation or B&K's draft of preliminary

69.

audit.

70. Upon receiving a draft audit report, a Collection and Field Representative


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audit had withdrawn from the Union in April 2005.

unequivocally established that a number of individuals included in the preliminary

provide B&K with letters in the possession of the Funds and the Union that

Under the direction of the Defendants, the Funds intentionally failed to

than was actually due.

settlement agreements so that the audit repo

ion relating to certain individuals and provide B&K with documentation and informat

all benefit fund contribution obligations.

settlement agreements with Local 727 wherei

dates included within the scope of the audit; and funeral homes which had entered into

Local 727 had released Plaintiff from all bene

covered by previous settlement agreements between Plaintiff and Local 727 wherein

in work covered by the CBA; individuals were not members of Local 727 nor involved

ns, including, for example: individuals who report to have intentional misrepresentatio

Affetto, under the direction of the Coli Defendants, caused the draft audit

was part of the negotiating committee for the CBA.

Affetto is also a member of Local 727 and, along with Defendant Coli Sr.,

audit. Affetto was acting at all times under the direction and control of the Defendants.

Ben Affetto ("Affetto") was the CFR for the Funds assigned to the B&K

within four weeks of receiving the draft report.

problems, note any issues, and communicate the results of the review to the auditor

Administrator, is required to review the report for apparent errors and potential

71.

72.

73.

fit fund contribution obligations covering

n the Union had released Plaintiff from

74. Under the direction of Defendants, the Funds intentionally failed to

rt would show a much larger deficiency

75.


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not legally owed to the Funds in order for Plaintiff to avoid litigation expenses and

including erroneous penalties for employees who were neither members of Local 727

The Defendants knew that the audits contained false information,

unnecessary expenses and litigation."

." Bill Coli went on to state that the

t contributions and the associated amounts Office "to discuss payment of the delinquen

ntiff and told Plaintiff to contact the Fund

to the Defendants.

period of time and demanding payment in excess of $528,000.

$317,000 in deficiencies over a five year Trustees for the Funds alleging more than

On March 30, 2009, B&K sent a final audit report to the Board of

showing the errors in the audit, B&K and the Funds refused to make appropriate

Despite Plaintiff's continued concerted efforts to provide documentation

and earning information and detailed employ

Affetto with documentation needed for the prop

Plaintiff continued to consistently provide B&K, Defendant Bill Coli and 76.

er revision of the audit, including wage

ee job descriptions requested by B&K and

the Funds.

77.

revisions.

78.

79. The final audit report contained intentional errors and deficiencies known

80. On April 2, 2009, Defendant Bill Coli sent the final audit report

containing the fraudulent inclusions to Plai

for interest, liquidated damages and audit fees

Fund Office must hear from Plaintiff by April 17, 2009, "in order for [Plaintiff] to avoid

81.

nor performing any work covered by the CBA, and intended for Plaintiff to pay sums

penalties. The Funds, under the control of Defendants, demanded significant


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Plaintiff's Chicago businesses;

David Klein, who had withdrawn from Local 727 and managed

managed Plaintiff's business;

Ronald Pasco who had withdrawn from Local 727 and who

employment dealt entirely with community relations, which is not bargaining unit

Adam Pilachowski, who had withdrawn from Local 727 and whose

Deborah Dougherty-Dominiak, who had withdrawn from Local 727

funeral homes:

misrepresentations included, but are not limited to, the following individuals and

ff. The material omissions and/or agreements between Local 727 and Plainti

by the CBA for the period in question and to have been the subject of prior settlement

ral homes known to have not been covered report for a number of individuals and fune

$215,000 plus interest and penalties for empl

ntiff and included demands in excess of

The Defendants concealed, failed to disclose and misrepresented the

pursuant to settlement agreements signed by a Fund Trustee and Union official.

s which were exempt from contributions contributions for individuals and businesse

82.

accuracy of the final audit report to Plai

oyer contributions within the final audit

(a)

and served as a Manager for Plaintiff;

(b)

work;

(c)

(d)

(e) Rose Lamb, who was an Area Manager and, with the knowledge

and consent of all parties, participated in the Plaintiff’s benefit plans rather than those

of the Union;


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nonetheless intentionally included in the final audit report.

by the CBA during the period of time covered by the audit. Pilachowski was

that Pilachowski had withdrawn from Local 727 and did not perform any work covered

the fact that Plaintiff had provided proof removed from the audit findings based upon

Although Adam Pilachowski had been included in the preliminary audit

contribution obligations covering dates included in the audit.

agreements with Local 727 wherein the Union released Plaintiff from all benefit fund

Funeral Home and Lloyd Mandel Levayah, all of which had entered into settlement

Cypress Funeral Home, Ridge Funeral Home, Kenny Brothers

dates included in the audit; and

the Union released Plaintiff from all benefi

whom had entered into settlement agreemen

time he had transferred to Florida;

uded in the audit for periods beyond the Florida location in January 2006 but was incl

Steven Parker, who had transferred from an Illinois location to a

2003 but was included in the audit for periods beyond the time he was no longer

Seymour Mandel, who had not worked for Plaintiff since January

an area manager for Plaintiff during the

Chris Balodimas, who had withdrawn from Local 727 and served as (f)

period of time covered by the audit;

(g)

employed by Plaintiff;

(h)

(i) Michael Delegatto, Patrick Cornick and Anthony DiCanio, all of

ts with Plaintiff and the Union wherein

t fund contribution obligations covering

(j)

83.

findings, Plaintiff was advised by the Funds and B&K that Pilachowski would be


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lawsuit against Plaintiff, captioned Teamsters Local Union No. 727 Health and Welfare

On June 22, 2009, at the direction of the Defendants, the Funds filed a

t SCI to recover the amount.

ll was received within ten days, he would Greenberg advised that unless payment in fu

damages, interest and auditing costs in the amount of $528,522.16." Attorney

letter to Plaintiff requesting payment for alleged "audit delinquencies, liquidated

claims rather than incur significant expenditures to defend the action.

litigation in an effort to strong-arm Plaint

provisions in the CBA in a wrongful and extortionate manner and instituted audit

The Defendants intentionally ignored Plaintiff's complaints of improperly-

thousands of dollars.

delinquencies claimed by the Fund to be due and owing by Plaintiff by hundreds of

Defendants to be beyond the scope of the audit, artificially inflated the alleged

including those alleged above.

to Affetto noting that the final audit included numerous erroneous delinquencies,

Director, David Klein, wrote a letter On April 30, 2009, Plaintiff’s Market 84.

85. The improper inclusion of individuals and funeral homes known by the

86.

included individuals and funeral homes in the audit, improperly used the penalty

iff into quickly settling the wrongly asserted

87. On June 2, 2009, Attorney Greenberg, counsel for the Funds, wrote a

institute legal action agains

88.

Fund, et al. v. SCI Illinois Services, Inc. d/b/a Cypress Funeral Home

“Cypress Funeral Home Lawsuit”) relating to the alleged audit delinquencies.

District Court for the Northern District of Illinois (the 09-cv-3736, in the United States

, Docket number


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o and not subject to the CBA, Plaintiff businesses and employees outside of Chicag

requests that B&K articulate the relevance of

Despite the Funds' and B&K’s refusal to respond to Plaintiff’s repeated

than it owed in order to save legal fees, costs and expenses.

ssible, while causing Plaintiff to incur individuals from the audit practically impo

for additional documentation with the intent to make the conditions for removing the

utilized the information in completing the audit originally.

pretext that the information was necessary to complete their audit, despite having not

voluminous documentation in order to remove certain individuals from the audit on the

present date, B&K and the Funds have continued to demand that Plaintiff provide

From the time the Cypress Funeral Home Lawsuit was filed through the

numerous material errors set forth in paragraph 82, above.

a copy to Coli Sr. and Affetto, wherein Plaint

On or about August 10, 2009, David Klein wrote a letter to Bill Coli, with

provide B&K and the Funds with documentation establishing that the audit was

After the Cypress Funeral Home Lawsuit was filed, Plaintiff continued to

e of the amounts sought by the B&K audit Defendants knew that a significant percentag

At the time the Funds filed the Cypress Funeral Home Lawsuit, the 89.

were not in fact due and owing to the Funds.

90.

materially flawed.

91.

iff again pointed out the serious flaws and

errors within the final audit and provided further documentation substantiating the

92.

93. B&K and the Funds made constantly changing, unreasonable demands

unnecessary costs and legal fees, all with the intention of making Plaintiff pay more

94.

requests for documentation pertaining to


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by the settlement agreements.

move the individuals and locations covered

shortly before a Court hearing where these settlement agreements were to be

accrue in favor of the Funds and to Plaintiff's detriment. Only nearly a year later, and

Funds and its auditors, they continued to ignore them while interest continued to

audit. Even after these dispositive documents were brought to the attention of the

and the Union years before, but were intentionally ignored for the purposes of this

settlement agreements. These settlement agreements had been signed by the Funds

Cypress Hill Funeral Home and Ridge Funeral Home as a result of their respective

into settlement agreements with the Union and Plaintiff and the amounts related to

the individuals who had entered 12, 2010, B&K issued a revised audit removing

Cypress Funeral Home Lawsuit, on May

the audit or the litigation in good faith.

moved the target, repeatedly demonstrating that they had no intention of conducting

complied, there would be a new burdensome request. B&K and the Funds constantly

r irrelevant documentation and Plaintiff Funds and B&K made a harassing request fo

confidentiality agreement, the Funds refused and provided no reason. Each time the

ture union purposes, be protected with a area union audit but could be used for fu

ion, which was not relevant to a Chicago Plaintiff asked that this sensitive informat

s all across the state of Illinois. When information, including salaries, for employee

pages of documents containing sensitive reluctantly acquiesced, providing thousands of

95. Over one year after issuing its final audit report and nearly eleven

months after the Funds had commenced the

only

referenced, did the Funds direct B&K to re


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for each employee in dispute, as such

On May 14, 2010, Plaintiff notified B&K that while it was unable to

additional information purportedly required by B&K in order to remove the individuals

perform any bargaining work during the time period of the audit. The letter detailed

still named in the revised audit report but were not Union members and/or who did not

B&K again demanded additional information

e May 12, 2010 revised final audit,

ess’s behalf that would protect her against by negotiating an arrangement on this witn

procure favorable testimony from Ms. Lamb deficiencies. The Defendants attempted to

tens of thousands of dollars in claimed

The Defendants also communicated with Plaintiff's employee Rose Lamb,

already informed the Funds he was not performing bargaining unit work.

efforts to speak with Balodimas that Plaintiff learned from Balodimas that he had

Court. It was only after Mr. Affetto’s meeting with Balodimas and Plaintiff’s own

audit and intentionally failed to disclose this information to either Plaintiff or to the

audit. Despite this information, the Defendants did not remove Balodimas from the

Affetto that he did not perform bargaining work during the period of time covering the

employee, Chris Balodimas ("Balodimas"), re

o located and met with Plaintiff’s former

During the course of the Cypress Funeral Home Lawsuit, without 96.

Plaintiff's knowledge, Fund CFR Ben Affett

garding the lawsuit. Balodimas advised

97.

an individual the Funds allege accounts for

certain personal liabilities.

98. In the cover letter accompanying th

regarding disputed individuals who were

from the audit.

99.

provide documents with detailed job descriptions


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disputed individuals from the revised final audit

fendants directed B&K to not remove the during the time period in question, the De

ion nor performing bargaining unit work in dispute were neither members of the Un

the format B&K requested, which informatio

Even after providing the Defendants with the detailed job descriptions in

information needed before removing these individuals from the audit.

ated by B&K. B&K’s May 12, 2010 letter to

were not covered by the CBA and should be removed from the audit. Plaintiff provided

tablish to Defendants that the individuals employment with particularity, to further es

ficiencies, setting forth the scope of their accounted for more than $160,000 in alleged de

approximately seven individuals who remained in dispute and who collectively

This request was made despite the fact that B&K’s certified audit noted only a

hundreds of Plaintiff's employees across the entire state of Illinois over a five-year

remaining individuals in dispute, they

to the May 14, 2010 letter by stating that in order to remove the approximately seven

individuals from the audit, B&K responded attempts to remove the improperly-included

documents did not exist, Plaintiff would create a document detailing each of the

disputed employee's responsibilities and duties.

100. In furtherance of Defendants' efforts to intentionally frustrate Plaintiff's

would need detailed job descriptions for

period.

select number of individuals at issue for alleged deficiencies.

101. Plaintiff provided B&K with detailed job descriptions for each of the

this information in a format specifically cre

Plaintiff’s attorney had indicated these specific job descriptions was the only remaining

102.

n clearly established that the individuals


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the intentionally inflated audit. the remaining disputed individuals from

approximately twenty months, did the Defendants instruct B&K to remove certain of

Finally, only following a Court-ordered mediation with a U.S. Magistrate

any explanation or documentation Plaintiff

would indicate [that the individuals should

up with "compelling documentation that

a letter on September 7, 2010 refusing to individuals in dispute, Pater responded vi

27, 2010 requesting an explanation as to how B&K suddenly came to the conclusion

B&K on August 12, 2010 and August

the artificially inflated audit. monies from Plaintiff on the basis of

Defendants to provide cover for Defendants' continued attempts to extort additional

ther was drafted by B&K at the request of individuals in dispute from the audit, but ra

Pater to Defendant Bill Coli was in no way necessary for purposes of removing the

The supposedly needed information cited in the July 21, 2010 letter from

because Plaintiff had failed to provide certain information.

at B&K was unable to complete the audit a letter to Defendant Bill Coli suggesting th

On July 21, 2010, at the request of Defendants, Gary Pater of B&K wrote 103.

104.

105. After counsel for Plaintiff wrote to

that certain provisions of the CBA applied to the approximately seven remaining

change the audit unless Plaintiff could come

be removed]." The information previously

provided was entirely clear on the issue, but no matter how much evidence was

presented, including settlement agreements actually signed by the Funds, the

Defendants instructed B&K to not accept

provided.

106.

Judge, and after Plaintiff had expended considerable resources in litigation over


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deposition was scheduled for June 1, 2011.

compelling his attendance. Eventually, after much time and expense, Coli Sr.'s

the deposition of Defendant Coli Sr. and was ultimately forced to obtain a court order

In the pending Cypress Funeral Home Lawsuit, Plaintiff sought to take

funeral homes, engaged in witness tampering and obstruction of justice.

virtue of damaging three of Plaintiff's Defendants' unlawful scheme, they have, by

threatened Plaintiff by destroying Plaint

As a result of Plaintiff's determinatio

and Obstruction of Justice Vandalism, Witness Intimidation

the fraudulent and intentionally misleading third revised final audit.

payment from Plaintiff on account of

payment.

individuals and funeral homes for whom Plaintiff had repeatedly provided proof of

revised final audit that still included alleged deficiencies in contributions for

already provided proof of payment.

ons for individuals for whom Plaintiff had included alleged deficiencies in contributi

lse audit. Even so, the revised audit still

litigation at considerable expense to Plaintiff

second revised final audit seeking only half of the amount the Funds had originally

On or about February 22, 2011, Attorney Greenberg sent Plaintiff a 107.

sought. It took over a year and a half of

to get the Funds to revise the knowingly fa

108. On or about October 18, 2011, Attorney Greenberg sent Plaintiff a third

109. The Defendants still continue to seek

110. n to no longer submit to extortion

and to vigorously defend the Cypress Funeral Home Lawsuit, the Defendants have now

iff's property. In furtherance of the

111.


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At a status hearing on June 7, 2011, six days after Coli Sr.'s June 1

meeting lasted.

Sr. actually did have a meeting with the Mayor that day and if so, how long that

agreed to reschedule the deposition for a later date. Discovery will reveal whether Coli

that he had not heard from Coli Sr. regarding the meeting with Mayor Emanuel and

ey Greenberg advised counsel for Plaintiff

Coli Sr. did not return to complete his deposition. After hours elapsed

during the ordinary course of its business.

th city and state officials in Chicago knowing that Plaintiff regularly interacts wi

appearance. Coli Sr. also mentioned the Mayor's name as a political threat to Plaintiff

leave the deposition in violation of the terms of the court order compelling his

Coli Sr. expressly mentioned Mayor Emanuel's name so that he could

on would recommence later that afternoon. 12:00 p.m. and represented that the depositi

the Mayor's office at 1:00 p.m. Greenberg adjourned the proceedings at approximately

s office requesting Coli Sr. to appear at had received a call from Mayor Rahm Emanuel'

Greenberg, serving as counsel for both the Funds and Coli Sr., announced that Coli Sr.

Approximately two hours into the deposition, at 11:18 a.m., Attorney

Exhibit "A" at p. 82. transcribe, "For the record, go fuck yourself."

was belligerent and uncooperative, saying at one point for the court reporter to

een himself, Local 727 and the Funds. He questions relating to the relationship betw

Throughout the June 1 deposition, Coli Sr. repeatedly refused to answer 112.

See

113.

114.

115.

following Coli Sr.’s abrupt departure, Attorn

116.

deposition, Attorney Greenberg expressed to counsel for Plaintiff that Coli Sr. was

frustrated and displeased with the prospect of having to continue his deposition and


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"C."

funeral homes owned by Plaintiff and those that are not is attached hereto as Exhibit

three funeral homes that were vandalized on July 10, 2011, delineating between those

vandalized. A map showing the locations of all funeral homes within the vicinity of the

same twelve-mile radius of the three Plaintiff-owned funeral homes that were

There are more than a dozen funeral homes not owned by Plaintiff in the

The three funeral homes that were vandalized are all located within

"B."

en windows are attached hereto as Exhibit of obscenities scrawled on the walls and brok

and (3) Oehler Funeral Home Ltd. Photos Memorial Chapels; (2) Lauterburg & Oehler;

re vandalized: (1) Weinstein Brothers

On the night of July 10, 2011, five days after Coli Sr.'s second deposition,

attendance. Eventually, on July 5, 2011, Coli Sr. was forced to appear.

deposed and Plaintiff was forced to obtain a second court order compelling his

intimidated. Coli Sr. again resisted being

rg that Plaintiff would continue to take

Despite the message conveyed by Attorney Greenberg at the June 7 status

complete his testimony.

deposition or at trial and instructed Greenberg to resist all attempts to force Coli Sr. to

conveyed Coli Sr.'s indignation. Coli Sr. did not want to be a witness either at a

117.

hearing, counsel for Plaintiff advised Greenbe

Coli Sr.'s deposition. Plaintiff refused to be

118.

three funeral homes owned by Plaintiff we

119.

approximately twelve miles of each other.

120.


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additional monies from Plaintiff above and beyond that which Plaintiff was legally

only the most recent scheme perpetrated by Defendants to fraudulently extort

The B&K audit which lead to the Cypress Funeral Home Lawsuit was

The Prior Auditing Schemes

forth above.

These acts were in furtherance of the scheme to defraud Plaintiff as set

1503.

Cypress Funeral Home Lawsuit and as a warning to Plaintiff to capitulate and pay the

by attempting to insulate themselves from further involvement as witnesses in the

By destroying Plaintiff's property, th

1512(b). Plaintiff to capitulate and pay the amounts demanded.

neral Home Lawsuit and as a warning to

engaging in witness tampering in an attempt to insulate themselves from further

By maliciously damaging Plaintiff's property, the Defendants were

Plaintiff had better pay into the Funds and not call Coli Sr. as a witness at trial.

re sending a message to Plaintiff that

The Defendants caused the property destruction at the three Plaintiff-

Home Lawsuit.

, is directly related to the Cypress Funeral

The vandalism of only those Chicago area funeral homes owned by 121.

Plaintiff, within days of Coli Sr.’s deposition

122.

owned funeral homes. The Defendants we

123.

involvement as witnesses in the Cypress Fu

See 18 U.S.C. §

124. e Defendants were obstructing justice

amounts demanded. See 18 U.S.C. §

125.

126.

obligated to contribute.

127. Prior to the B&K audit, payroll audits were conducted on behalf of the

Funds for each funeral home separately.


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June 30, 2002.

The payroll audit of Montclair covered the period from July 1, 1992 to

rmation relating to Plaintiff's employees. thorough and detailed payroll records and info

Thomas Havey by regularly meeting with Thomas Havey representatives and providing

that the Funds had authorized a payroll audi

After receiving the aforementioned letter from Thomas Havey notifying it

verify the correctness of payments made to the Funds."

ntclair, notifying it that the Funds had Montclair, Thomas Havey sent a letter to Mo

Shortly after being retained by Bill Coli to perform a payroll audit of

Fund Administrator, retained Thomas Havey to perform a payroll audit of Montclair -

In or around August 2002, Defendant Bill Coli, acting in his capacity as

The Montclair - Luciana Scheme

including, to Trustee, Defendant Coli Sr.

to the Board of Trustees for the Funds,

As with the B&K scheme, the status of the audit procedure during the

Administrator.

Bill Coli monitored and controlled the entire audit procedure in his capacity as Fund

As with the B&K scheme, during that round of payroll audits, Defendant

and 2005.

A previous round of payroll audits took place between in or about 2002 128.

129.

130.

first round of audits was regularly reported

131.

Luciana Funeral Home ("Montclair"), a funeral home owned by Plaintiff.

132.

authorized a payroll audit of Montclair, as a contributing employer to the Funds, "to

133.

t of Montclair, Plaintiff cooperated with

134.


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contained in the Montclair audit and demanded by Defendant Bill Coli on behalf of the

The total amount of purported exceptions to employer contributions

audit contained false information. Defendants knew that the Montclair

"in order for [Plaintiff] to avoid unnecessary expenses and litigation."

om Plaintiff within approximately two weeks, to state that the Fund Office must hear fr

delinquent contributions and the associated the Fund Office "to discuss payment of the

s to Plaintiff and told Plaintiff to contact improper inclusion of individuals and location

Defendant Bill Coli sent the Montclair audit report containing the numerous errors and

Soon after receiving the Montclair final audit report from Thomas Havey,

thus, beyond the scope of the audit.

l homes that were located out-of-state and, work at Montclair; and (iv) including funera

Plaintiff and the Union; (iii) including amounts on behalf of individuals who did not

(ii) including amounts that were subject to prior settlement agreements between

all required contributions had been made;

behalf of individuals who were not performing covered work for which contributions

s within the Montclair final audit Examples of the false representation

contained numerous false representations, which were known by Defendants to be

As with the B&K final audit report, the Montclair final audit report

On or around December 30, 2002, Thomas Havey sent the final audit 135.

report for Montclair to the Trustees of the Funds.

136.

false.

137.

report known by Defendants to be false were: (i) including amounts allegedly owed on

were required to be made and/or for whom

138.

amounts for interest, liquidated damages and audit fees." Defendant Bill Coli went on

139.

140.


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riarty, Trustee on behalf of the Teamsters lawsuit against SCI, captioned Thomas J. Mo

despite their knowledge to the contrary.

continued to contend that the amounts contained in the Montclair audit were proper,

monies from Plaintiff, Defendants In an effort to extort additional

ii) did not work at Montclair.

contributions had been made, (ii) were subject to prior settlement agreements between

for contributions involving individuals (i) who were not performing covered work for

t Bill Coli of the improper demand Plaintiff immediately notified Defendan

were subject to prior settlement agreements between Plaintiff and the Union; or (iii) did

required contributions had been made; (ii)

and individuals who: (i) were not performing

the Funds related to out-of-state funeral homes that were beyond the scope of the audit

A portion of the $122,332.97 demanded by Defendant Bill Coli on behalf of

devoting resources and funds to defending its legal rights.

audit fees. Defendants believed Plaintiff would simply pay that amount instead

Funds was for $122,332.97, which included claimed liquidated damages, interest and

141.

covered work for which contributions were

required to be made and/or for whom all

not work at Montclair.

142.

which contributions were required to be made and/or for whom all required

Plaintiff and the Union and/or (i

143.

144. On September 30, 2003, at the direction of Defendants, the Funds filed a

SCI Illinois Services, Inc. d/b/a MontclairLocal Union No. 727 Pension Fund, et al. v.

Funeral Home, Docket number 03C-6907, in the United States District Court for the

Northern District of Illinois ("the Montclair Lawsuit”) relating to the alleged audit

delinquencies.


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employees.

providing thorough and detailed payroll record

with Thomas Havey representatives and with Thomas Havey by regularly meeting

that the Funds had authorized a payroll au


Funds, "to verify the correctness of payments made to the Funds."

had authorized a payroll audit of Lloyd Mandel, as a contributing employer to the

Lloyd Mandel, Thomas Havey sent a letter to Lloyd Mandel, notifying it that the Funds


as Fund Administrator, retained Thomas Havey to perform a payroll audit of Lloyd

Bill Coli, acting in his capacity In or around September 2002, Defendant

The Lloyd Mandel Levayah Scheme

h was made for the purpose of avoiding was more than was actually owing but whic

settlement agreement related to the Montclair Lawsuit in the amount of $90,000, which

On or about April 28, 2004, Plaintiff and the Funds entered into a

After the Montclair Lawsuit was filed, Plaintiff continued to provide

At the time the Funds filed the Montclair Lawsuit, Defendants knew that 145.

amounts sought by the Montclair audit were not in fact due and owing to the Funds.

146.

Thomas Havey and the Funds with documentation establishing that certain elements of

the Montclair audit were materially flawed.

147.

further litigation expenses.

148.

Mandel Levayah ("Lloyd Mandel"), a funeral home owned by Plaintiff.

149.

150.

dit of Lloyd Mandel, Plaintiff cooperated

s and information relating to Plaintiff's


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information.

Defendants knew that the Lloyd Mandel audit contained false

ffice must hear from Plaintiff within

t of the delinquent contributions and the contact the Fund Office "to discuss paymen

cations to Plaintiff and told Plaintiff to and improper inclusion of individuals and lo

Soon after receiving the Lloyd Mandel final audit report from Thomas

s for whom Plaintiff had made all required (iii) including amounts relating to individual

behalf of individuals who were not performing covered work for which contributions

within the Lloyd Mandel final audit Examples of the false representations

representations, which were known by Defendants to be false.

The Lloyd Mandel final audit report contained numerous false

On or around December 30, 2002, Thomas Havey sent its final audit

June 30, 2002.

The payroll audit of Lloyd Mandel covered the period from July 1, 1992 to 151.

152.

report for Lloyd Mandel to the Trustees of the Funds.

153.

154.

report known by Defendants to be false were: (i) including amounts allegedly owed on

were required to be made; (ii) over-inflating amounts relating to livery removals; and

contributions through a different location.

155.

Havey, Bill Coli sent the Lloyd Mandel audit report containing the numerous errors

associated amounts for interest, liquidated damages and audit fees." Defendant Bill

Coli went on to state that the Fund O

approximately two weeks "in order for [SCI] to avoid unnecessary expenses and

litigation."

156.


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lawsuit against Plaintiff, captioned Thomas J. Moriarty, Trustee on behalf of the

proper, despite their knowledge to the contrary.

continued to contend that the amounts contained in the Lloyd Mandel audit were


required to be made or for whom all required contributions had been made through a

individuals who were not performing covered work for which contributions were

ant Bill Coli of the overly-inflated Plaintiff immediately notified Defend

$5,910.00, including interest and audit fees.

ributions contained within the final Without the improper claims for cont

related to individuals who were not performing covered work for which contributions

behalf of the Funds was based upon over-inflated figures relating to livery trips and/or

An overwhelming majority of the $73,063.20 demanded by Bill Coli on



contained in the Montclair audit and demanded by Defendant Bill Coli on behalf of the

The total amount of purported exceptions to employer contributions 157.

audit fees. Defendants believed that Plaintiff would simply pay that amount instead

158.

were required to be made or for whom Plaintiff had made all required contributions

through a different location.

159.

audit, the deficiencies within the Lloyd Mandel audit would have only totaled, at most,

160.

figures relating to livery trips and the improper demand for contributions involving

separate location.

161.

162. On November 26, 2003, at the direction of Defendants, the Funds filed a


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Teamsters Local Union No. 727 Pension Fund, et al. v. SCI Illinois Services, Inc. d/b/a

Lloyd Mandel Levayah Funerals

the correctness of payments made to the Funds."

ributing employer to the Funds, "to verify

Marsh, notifying it that the Funds had Marsh, Thomas Havey sent a letter to


Fund Administrator, retained Thomas Havey to perform a payroll audit of Marsh

In or around October 2002, Defendant Bill Coli, acting in his capacity as

The Marsh Funeral Home Scheme

owed in the interest of avoiding litigation expense.

global settlement involving audits for multip

continued litigation, capitulated and settled

On February 15, 2005, Plaintiff, to avoid the expenses relating to

ion establishing that portions of the

After the Lloyd Mandel Lawsuit was filed, Plaintiff continued to provide

that amounts sought by the Lloyd Mandel audit were not in fact due and owing to the

At the time the Funds filed the Lloyd Mandel Lawsuit, Defendants knew

, Docket number 03C-8634, in the United States

District Court for the Northern District of Illinois ("the Lloyd Mandel Lawsuit”)

relating to the alleged audit delinquencies.

163.

Funds.

164.

Thomas Havey and the Funds with documentat

Lloyd Mandel audit were materially flawed.

165.

the Lloyd Mandel Lawsuit as part of a

le SCI locations, paying more than was

166.

Funeral Home ("Marsh"), a funeral home owned by Plaintiff.

167.

authorized a payroll audit of Marsh, as a cont


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for interest, liquidated damages and audit contributions and the associated amounts

ce "to discuss payment of the delinquent told Plaintiff to contact the Fund Offi

numerous errors and improper inclusion of

On February 18 2003, Bill Coli sent the Marsh audit report containing

(iii) including funeral homes that were locate

ents between Plaintiff and the Union; and settled pursuant to prior settlement agreem

Union members at the time of the audit period; (ii) including amounts that had been

known by Defendants to be false were: (i) the inclusion of individuals who were not

within the Marsh final audit report Examples of the false representations


As with the B&K final audit report, the final audit report for Marsh

On or around December 30, 2002, Thomas Havey sent its final audit

rmation relating to Plaintiff's employees. thorough and detailed payroll records and info

Thomas Havey by regularly meeting with Thomas Havey representatives and providing

dit of Marsh, Plaintiff cooperated with that the Funds had authorized a payroll au


June 30, 2002.

The payroll audit of Marsh covered the period from November 20, 1997 to 168.

169.

170.

report for Marsh to the Trustees of the Funds.

171.

false.

172.

d out-of-state and, thus, beyond the scope

of the audit.

173.

individuals and locations to Plaintiff and

fees." Defendant Bill Coli went on to state that the Fund Office must hear from


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continued to contend that the amounts contained in the Marsh audit were proper,


(iii) out-of-state funeral homes. between Plaintiff and the Union; and

subject to prior settlement agreements the audit period; (ii) individuals who were

who were not union members at the time of for contributions involving: (i) individuals


$540.00, including interest and audit fees.

audit would have only totaled, at most,


Plaintiff and the Union and for out-of-state funeral homes that were beyond the scope

time of the audit period or who were subject to prior settlement agreements between

was for alleged deficiencies involving individuals who were not Union members at the

The overwhelming majority of the $72,173.38 demanded by Defendants


would simply pay that amount instead of fees. Defendants intended that Plaintiff

Funds was $72,173.38, which included claimed liquidated damages, interest and audit


Defendants knew that the Marsh audit contained false information.

Plaintiff by February 28, 2003, "in order for [SCI] to avoid unnecessary expenses and

litigation."

174.

175.

contained in the Marsh audit and demanded by Defendant Bill Coli on behalf of the

176.

of the audit.

177.

audit, the deficiencies within the Marsh

178.

179.


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riarty, Trustee on behalf of the Teamsters lawsuit against SCI, captioned Thomas J. Mo

180. On September 30, 2003, at the direction of Defendants, the Funds filed a

SCI Illinois Services, Inc. d/b/a MarshLocal Union No. 727 Pension Fund, et al. v.

Funeral Home

employer to the Funds, "to verify the correctness of payments made to the Funds."

Funds had authorized a payroll audit of Columbian Chapels, as a contributing

Columbian Chapels, Legacy sent a letter to


Inc. ("Columbian Chapels"), a funeral home owned by Plaintiff.

Fund Administrator, retained Legacy to perform a payroll audit of Columbian Chapels,

In or around June 2003, Defendant Bill Coli, acting in his capacity as

The Columbian Chapels Scheme

the amount of $470.00.

and the Funds entered into a settlement agreement related to the Marsh Lawsuit in

Funds, on or about March 2, 2005, Plaintiff frivolous lawsuit brought on behalf of the

Eventually, after expending considerable legal fees in defense of the

Marsh audit were materially flawed.

Havey and the Funds with documentation establishing that certain elements of the

After the Marsh Lawsuit was filed, Plaintiff continued to provide Thomas

amounts sought by the Marsh audit were not in fact due and owing to the Funds.

At the time the Funds filed the Marsh Lawsuit, Defendants knew that

, Docket number 03C-6909, in the United States District Court for the

Northern District of Illinois ("the Marsh Lawsuit”) relating to the alleged audit

delinquencies.

181.

182.

183.

184.

185.

Columbian Chapels, notifying it that the


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the Fund Office must hear from Plaintiff wi

butions and the associated amounts for

ld Plaintiff to contact the Fund Office "to

work at Columbian Chapels during the time inclusion of an individual who did not even

Soon after receiving the Columbian Chapels final audit report from

Columbian Chapels during the time period of an individual who did not even work at

Defendants intentionally included numerous alleged deficiencies on behalf

be false.

ons, which were known by Defendants to report contained numerous false representati

As with the B&K final audit report, the Columbian Chapels final audit

Columbian Chapels to the Trustees of the Funds.

On or around February 10, 2004, Legacy sent its final audit report for

detailed payroll records and information relating to Plaintiff's employees.

representatives and providing thorough and Legacy by regularly meeting with Legacy

mbian Chapels, Plaintiff cooperated with

After receiving the aforementioned letter from Legacy notifying it that the

1993 to June 30, 2003.

The payroll audit of Columbian Chapels covered the period from July 1, 186.

187.

Funds had authorized a payroll audit of Colu

188.

189.

190.

covered by the audit.

191.

Legacy, Bill Coli sent the Columbian Chapels audit report containing the improper

period covered by the audit to Plaintiff and to

discuss payment of the delinquent contri

interest, liquidated damages and audit fees." Defendant Bill Coli went on to state that

thin approximately two weeks, "in order for

[SCI] to avoid unnecessary expenses and litigation."


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captioned Thomas J. Moriarty, Trustee on behalf of the Teamsters Local Union No. 727

final audit report to the Trustees of the Funds, Defendants filed a lawsuit against SCI,


ained in the Columbian Chapel audit were


at Columbian Chapel during the time period relating to an individual who did not work

el audit, including the amounts sought for contributions within the Columbian Chap


most, $103.01, including interest and audit fees.

Chapel audit would have only totaled, at audit, the deficiencies within the Columbian


work at Columbian Chapel during the time period covered by the audit.

behalf of the Funds were for alleged deficiencies on behalf of an individual who did not


the Funds was for $9,466.00, which included claimed liquidated damages, interest and

contained in the Columbian Chapels audit and demanded by Defendants on behalf of


Defendants knew that the Columbian Chapels audit contained false 192.

information.

193.


194. The overwhelming majority of the $9,466.00 demanded by Bill Coli on

195.

196.

covered by the audit.

197.

continued to contend that the amounts cont

198. On December 22, 2003, more than five weeks prior to Legacy sending the


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Pension Fund, et al. v. SCI Illinois Services, Inc. d/b/a Columbian Chapels, Inc.

December 31, 2002.

The payroll audit of WHS covered the period from January 1, 1993 to

payments made to the Funds."

audit of WHS, as a contributing employer to the Funds, "to verify the correctness of

WHS, Legacy sent a letter to WHS, notifying it that the Funds had authorized a payroll


Fund Administrator, retained Legacy to perform a payroll audit of William H. Scott

In or around July 2003, Defendant Bill Coli, acting in his capacity as

The William H. Scott Funeral Home Scheme

the interest of avoiding further litigation

ement involving audits for multiple SCI Chapels Lawsuit as part of a global settl

On February 15, 2005, Plaintiff and the Funds settled the Columbian

of the Columbian Chapels audit were materially flawed.

After the Columbian Chapels Lawsuit was filed, Plaintiff continued to

knew that amounts sought by the Columbia

At the time the Funds filed the Columbian Chapels Lawsuit, Defendants

lating to the alleged audit delinquencies.

number 03C-9208, in the United States District Court for the Northern District of

, Docket

Illinois ("the Columbian Chapels Lawsuit”) re

199.

n Chapels audit were not in fact due and

owing to the Funds.

200.

provide Legacy and the Funds with documentation establishing that certain elements

201.

locations, paying more than was owed in

expense.

202.

Funeral Home ("WHS"), a funeral home owned by Plaintiff.

203.

204.


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Defendants knew that the WHS audit contained false information.

[Plaintiff] to avoid unnecessary expenses and litigation."

the Fund Office must hear from SCI within approximately two weeks, "in order for

butions and the associated amounts for

sent the WHS audit report containing the numerous errors and improper inclusion of

Soon after receiving the WHS final audit report from Legacy, Bill Coli

homes that were outside of the market and the Union; and (iv) including funeral

ior settlement agreements between Plaintiff including amounts that were subject to pr

amounts relating to livery removals; (iii) employed by Plaintiff; (ii) over-inflating

for periods of time after the individual had been terminated and was no longer

cluding amounts on behalf of an individual known by Defendants to be false were: (i) in

s within the WHS final audit report Examples of the false representation

numerous false representations, which were known by Defendants to be false.

As with the B&K final audit report, the WHS final audit report contained

WHS to the Trustees of the Funds.

On or around February 16, 2004, Legacy sent its final audit report for

payroll records and information relating to Plaintiff's employees.

regularly meeting with Legacy representatives and providing thorough and detailed

HS, Plaintiff cooperated with Legacy by

After receiving the aforementioned letter from Legacy notifying it that the 205.

Funds had authorized a payroll audit of W

206.

207.

208.

covered by the applicable collective bargaining agreement.

209.

individuals and locations to Plaintiff and told Plaintiff to contact the Fund Office "to

discuss payment of the delinquent contri

interest, liquidated damages and audit fees." Defendant Bill Coli went on to state that

210.


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continued to contend that the amounts contained in the WHS audit were proper,


subject to prior settlement agreements between Plaintiff and the Union.

outside of the applicable market and/or contributions involving locations that were

after the individual was no longer employed by Plaintiff and the improper demand for

inflated figures relating to livery trips, the inclusion of an individual for time-periods

ant Bill Coli of the vastly overly-Plaintiff immediately notified Defend

$16,623.69, including interest and audit fees.


bargaining agreement or were subject to a prior settlement agreement between

and locations that were outside of the market covered by the applicable collective

e individual no longer worked for Plaintiff inclusion of an individual for dates when th

behalf of the Funds was based upon over-inflated figures relating to livery trips, the

A substantial majority of the $58,383.54 demanded by Defendants on

defending its legal rights.

Plaintiff would simply pay that amount instead devoting resources and funds to

and audit fees. Defendants believed that included claimed liquidated damages, interest

contained in the WHS audit and demanded by Defendants was for $58,698.60, which

The total amount of purported exceptions to employer contributions 211.

212.

Plaintiff and the Union.

213.

audit, the deficiencies within the WHS audit would have only totaled, at most,

214.

215.


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Funds filed a lawsuit against SCI, captioned Thomas J. Moriarty, Trustee on behalf of

the final audit report to the Trustees of the Funds, at the direction of Defendants, the

216. On September 30, 2003, more than four months prior to Legacy sending

the Teamsters Local Union No. 727 Pension Fund, et al. v. SCI Illinois Services, Inc.

d/b/a William H. Scott Funeral Home


had authorized a payroll audit of Kenny Brothers, as a contributing employer to the

Kenny Brothers, Legacy sent a letter to Kenny Brothers, notifying it that the Funds


Funeral Home ("Kenny Brothers"), a funeral home owned by Plaintiff.

Fund Administrator, retained Legacy to perform a payroll audit of Kenny Brothers

The Kenny Brothers Scheme

than was owed in the interest of avoiding further litigation expense.

ts for multiple SCI locations, paying more

On February 15, 2005, Plaintiff and the Funds settled the WHS Lawsuit

and the Funds with documentation establishing that certain elements of the WHS

After the WHS Lawsuit was filed, Plaintiff continued to provide Legacy

not in fact due and owing to the Funds. certain amounts sought by the WHS audit were

At the time the Funds filed the WHS Lawsuit, Defendants knew that

Illinois ("the WHS Lawsuit”) relating to the


District Court for the Northern District of

alleged audit delinquencies.

217.

218.

audit were materially flawed.

219.

as part of a global settlement involving audi

220. In or around December 2003, Defendant Bill Coli, acting in his capacity as

221.


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ffice must hear from Plaintiff within

ent of the delinquent contributions and the to contact the Fund Office "to discuss paym

inclusion of overly-inflated amounts relating to

the Kenny Brothers audit report containing the numerous errors and improper

Soon after receiving the Kenny Brothers final audit report, Bill Coli sent

amounts for alleged deficiencies relating to livery trips.

that were known by Defendants to be false involved the inclusion of overly-inflated

The false representations within the Kenny Brothers final audit report


As with the B&K final audit report, the Kenny Brothers final audit report

Brothers to the Trustees of the Funds.

On or around May 3, 2004, Legacy sent its final audit report for Kenny

detailed payroll records and information relating to Plaintiff's employees.

representatives and providing thorough and Legacy by regularly meeting with Legacy

Funds had authorized a payroll audit of Kenny Brothers, Plaintiff cooperated with

After receiving the aforementioned letter from Legacy notifying it that the

1995 to September 30, 2003.

The payroll audit of Kenny Brothers covered the period from June 15, 222.

223.

224.

225.

false.

226.

227.

livery trips to Plaintiff and told Plaintiff

associated amounts for interest, liquidated damages and audit fees." Defendant Bill

Coli went on to state that the Fund O

approximately two weeks, "in order for [SCI] to avoid unnecessary expenses and

litigation."


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costs.

SCI locations, paying more than was owed in

to the Kenny Brothers audit as part of a global settlement involving audits for multiple

On February 15, 2005, Plaintiff and the Funds settled the issues relating


ained in the Kenny Brothers audit were


ntained in the Kenny Brothers audit report.

ant Bill Coli of the vastly overly-Plaintiff immediately notified Defend

most, $4,954.24, including interest and audit fees.

audit, the deficiencies within the Kenny Brothers audit would have only totaled, at


nflated amounts relating to livery trips. behalf of the Funds were based upon overly-i

The overwhelming majority of the $20,486.78 demanded by Defendants on

devoting resources and funds to defend its legal rights.


contained in the Kenny Brothers audit and demanded by Defendants on behalf of the


Defendants knew that the Kenny Brothers audit contained false 228.

information

229.


230.

231.

232.

inflated figures relating to livery trips co

233.

continued to contend that the amounts cont

234.

the interest of avoiding further litigation


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Piser Livery audit report containing numerous errors and improper inclusion of

As with the B&K final audit report, on May 13, 2005, Bill Coli sent the


As with the B&K final audit report, the final audit report for Piser Livery

On April 29, 2005, Legacy sent its final audit report for Piser Livery to the

March 16, 1995 to December 31, 2004.

by Defendants to expand the scope of its payroll audit of Piser Livery to the period

Sometime between April 6, 2005 and April 29, 2005, Legacy was directed

13, 2005.

April 5, 2005 letter stated that a representative of Legacy would be making an

Knowing that Piser Livery did not exist prior to September 2003, the

September 2003.

Piser Livery is owned by Plaintiff and first came into existence in


On April 6, 2005, Legacy sent a letter to Piser Livery, notifying it that the

("Piser Livery").

Fund Administrator, retained Legacy to perform a payroll audit of Piser Auto Livery

In or around April 2005, Defendant Bill Coli, acting in his capacity as

The Piser Auto Livery Scheme

235.

236.

Funds had authorized a payroll audit of Piser Livery, as a contributing employer to the

237.

238.

appointment to examine Piser Livery's records from the period October 1, 2003 to April

239.

240.

Funds.

241.

false.

242.


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been covered by settlements relating to audits of other locations.

for contributions pre-dating Piser Livery's existence for employees who had already


audit would have only totaled $91.60.

ributions prior to September 2003, Without the improper claims for cont

resolved by settlements entered into for previously audited locations.

another, previously audited location and any claims relating to their work were

of Piser Livery were employed by Before September 2003, all employees

Piser Livery did not exist prior to September 2003.

behalf of the Funds were for alleged deficiencies prior to September 2003.

The overwhelming majority of the $15,974.96 demanded by Bill Coli on

amount instead devoting resources and funds to defending its legal rights.

Funds was for $15,974.96. Defendants believed that Plaintiff would simply pay that

contained in the Piser Livery audit and demanded by Defendants on behalf of the


Defendants knew that the Piser Livery

"in order for [SCI] to avoid unnecessary must hear from Plaintiff by May 25, 2005,

went on to state that the Fund Office

of the delinquent contributions and the associated amounts for interest, liquidated

ld Plaintiff to contact the Fund Office "to discuss payment individuals to Plaintiff and to

damages and audit fees." Defendant Bill Coli

expenses and litigation."

243. audit contained false information.

244.

245.

246.

247.

248.

the deficiencies within the Piser Livery

249.


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against SCI, captioned Teamsters Local Union No. 727 Health and Welfare Fund, et al.

On May 21, 2007, at the direction of Defendants, the Funds filed a lawsuit

Funds to be due by Plaintiff, doing business as, Piser Auto Livery.

entered into a Tolling Agreement with Plainti

On October 14, 2005, Thomas J. Moriarity, as Trustee of the Funds,

knowledge to the contrary.

contend that the amounts contained in the Piser Livery audit were proper, despite their

In an effort to extort additional monies from SCI, Defendants continued to 250.

251.

ff relating to the amounts alleged by the

252.

v. SCI Illinois Services, Inc., an Illinois Corporation, individually and d/b/a Piser Auto

Livery and d/b/a Lamb Auto Livery

was owed in the interest of avoiding further litigation costs.

ts for multiple locations, paying more than

and the Funds entered into a settlement agreement related to the Piser Livery Lawsuit

Funds, on or about April 30, 2008, Plaintiff frivolous lawsuit brought on behalf of the

Eventually, after expending considerable legal fees in defense of the

Livery audit were materially flawed.

Legacy and the Funds with documentation establishing that elements of the Piser

After the Piser Livery Lawsuit was filed, Plaintiff continued to provide

that the amounts sought by the Piser Livery audit were not in fact due and owing to the

At the time the Funds filed the Piser Livery Lawsuit, Defendants knew

to the alleged audit delinquencies in the Piser Livery audit.


District Court for the Northern District of Illinois ("the Piser Livery Lawsuit”) relating

253.

Funds.

254.

255.

as part of a global settlement involving audi


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ganization Act, 18 U.S.C. § 1962(c)

COUNT I

Racketeer Influenced Corrupt Or

1512(b), under 18 U.S.C. §§ 1341 and 1343, witness tampering under 18 U.S.C.

racketeering activity” consisting of numerous predicate acts of mail and wire fraud

The Defendants conducted the affairs of the Funds through a “pattern of

participated, directly and indirectly, in the affairs of the Funds through a pattern of

In violation of 18 U.S.C. § 1962(c), the Defendants conducted and

“enterprise” whose activities affected interstate commerce.

Collectively, the Funds comprise an “association in fact” and an

activities affected and affect interstate commerce as defined by 18 U.S.C. § 1961(4).

At all relevant times, the Funds were “enterprises” engaged in, or whose

U.S.C. § 1961(1)

through 10 and Other John Doe Entities 1 through 10 were “persons” as defined by 18

Local 727, John and Jane Does 1 through 100, John and Jane Doe Corporations 1

At all relevant times, John Coli, Sr., Bill Coli, John Coli, Jr., Teamsters

Plaintiffs incorporate by reference the preceding paragraphs as if fully set

and Other John Doe Entities 1 through 10 and Jane Does 1 through 100, John and Jane Doe Corporations 1 through 10 John T. Coli, Sr., William Coli, John T. Coli, Jr., Teamsters Local 727, John

SCI Illinois Services, Inc.

vs.

256.

forth herein.

257.

258.

259.

260. At all relevant times, the Defendants were associated with the Funds.

261.

racketeering activity.

262.

§


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iff that the Local 727 Funds had authorized a

In or around August 2002, Thomas Havey used the U.S. mail to

intimidate Plaintiff include the following:

The mailings and wires in furtherance of the scheme to defraud and

scheme to defraud and intimidate.

and interstate private commercial delivery carriers as a result of the aforementioned

others of the United States mail, interstate

The Defendants foresaw or reasonably should have foreseen the use by

to be transmitted writings, facsimiles, emails and oral communications by means of

scheme to defraud and intimidate, the Defendants knowingly transmitted and caused

furtherance of the aforementioned In violation of 18 U.S.C. § 1343, in

received matter through private and commercial interstate carriers.

scheme to defraud and intimidate, the Defendants knowingly caused to be sent and


received matter through the United States Postal Service.

scheme to defraud and intimidate, the Defendants knowingly caused to be sent and


1954. operations of an employee benefit plan under 18 U.S.C.

1503 and unlawful influence regarding the obstruction of justice under 18 U.S.C. §

§

263.

264.

265.

wire communication.

266.

telephone calls, electronic mail and wires,

267.

(a)

send a letter to Plaintiff, advising Plaint

payroll audit of Montclair;


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to Plaintiff and requested payment from Pl

the U.S. mail to send the fraudulent and misleading final audit report for Lloyd Mandel

In or around January or February 2003, Defendant Bill Coli used

in the Montclair final audit report;

Plaintiff and requested payment from Plainti

the U.S. mail to send the fraudulent and misleading final audit report for Montclair to

In or around January or February 2003, Defendant Bill Coli used

which included numerous representations known by Defendants to be false;

mail to send its final audit report for Marsh to the Board of Trustees for the Funds,

On or around December 30, 2002, Thomas Havey used the U.S.

Funds, which included numerous representations known by Defendants to be false;



air to the Board of Trustees for the Funds, mail to send its final audit report for Montcl


payroll audit of Marsh;


In or around October 2002, Thomas Havey used the U.S. mail to


In or around September 2002, Thomas Havey used the U.S. mail to (b)


payroll audit of Lloyd Mandel;

(c)


(d)

(e)

mail to send its final audit report for Lloyd Mandel to the Board of Trustees for the

(f)

(g)

ff of the delinquent contributions set forth

(h)

aintiff of the delinquent contributions set

forth in the Lloyd Mandel final audit report;


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send the fraudulent and misleading final audit report for Columbian Chapels to

numerous representations known by Defendants to be false;

its final audit report for WHS to the Board of Trustees for the Funds, which included

On or around February 16, 2004, Legacy used the U.S. mail to send


its final audit report for Columbian Chapels to the Board of Trustees for the Funds,

On or around February 10, 2004, Legacy used the U.S. mail to send

the Local 727 Funds had authorized a payroll letter to Plaintiff, advising Plaintiff that

In or around December 2003, Legacy used the U.S. mail to send a

Local 727 Funds had authorized a payroll audit to Plaintiff, advising Plaintiff that the

In or around July 2003, Legacy used the U.S. mail to send a letter

Local 727 Funds had authorized a payroll audit to Plaintiff, advising Plaintiff that the

quent contributions set forth in the Marsh requested payment from Plaintiff of the delin

send the fraudulent and misleading final audit report for Marsh to Plaintiff and

On February 18, 2003, Defendant Bill Coli used the U.S. mail to (i)

final audit report within ten days;

(j) In or around June 2003, Legacy used the U.S. mail to send a letter

of Colombian Chapels;

(k)

of WHS;

(l)

audit of Kenny Brothers;

(m)

(n)

(o) In or around March 2004, Defendant Bill Coli used the U.S. mail to


in the Columbian Chapels final audit report;


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Livery final audit report within approximately two weeks;

quent contributions set forth in the Piser requested payment from Plaintiff of the delin

the fraudulent and misleading final audit

numerous representations known by Defendants to be false;

report for Piser Livery to the Board of Trustees for the Funds, which included

On April 29, 2005, Legacy used the U.S. mail to send its final audit

727 Funds had authorized a payroll audit of

On April 6, 2005, Legacy used the U.S. mail to send a letter to


mail to send the fraudulent and misleading final audit report for Kenny Brothers to

In or around May or June 2004, Defendant Bill Coli used the U.S.

included numerous representations known by Defendants to be false;

final audit report for Kenny Brothers to the Board of Trustees for the Funds, which

linquent contributions set forth in the WHS requested payment from Plaintiff of the de

l audit report for WHS to Plaintiff and

(p) In or around March 2004, Defendant Bill Coli used the U.S. mail to

send the fraudulent and misleading fina

final audit report;

(q) On or around May 3, 2004, Legacy used the U.S. mail to send its

(r)


in the Kenny Brothers final audit report;

(s)

Plaintiff, advising Plaintiff that the Local

Piser Livery;

(t)

(u) On May 13, 2005, Defendant Bill Coli used the U.S. mail to send

report for Piser Livery to Plaintiff and


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On September 22, 2009, Bill Coli used

amount was made in full within ten days;

ituted unless payment of the aforementioned

e amount of $528,522.16" and advising that damages, interest and auditing costs in th

letter to Plaintiff requesting payment for alleged "audit delinquencies, liquidated

ributions set forth in the final audit; payment from Plaintiff of the delinquent cont

fraudulent and misleading final audit repo

known by the Defendants to have been improperly included in the final audit;

unds, which included numerous individuals report to the Board of Trustees for the F

ff and requesting the Funds' assistance in of the necessary payroll records from Plainti

its audit because it had not received all Coli contending that it was unable to complete

cted for a field payroll audit and requesting

On July 12, 2007, B&K used the U.S mail to send a letter to (v)

Plaintiff, advising Plaintiff that it was sele

records from Plaintiff in connection with the B&K audit;

(w) On April 22, 2008, B&K used the U.S. mail to send a copy of their

preliminary audit report to Plaintiff and Defendant Bill Coli;

(x) On May 5, 2008, B&K used the U.S. mail to send a letter to Bill

obtaining same;

(y) On March 30, 2009, B&K used the U.S. mail to send its final audit

(z) On April 2, 2009, Bill Coli used the U.S. mail to send the

rt to David Klein of SCI and requested

(aa) On June 2, 2009, Attorney Greenberg used the U.S. Mail to send a

legal action against Plaintiff would be inst

(bb) the U.S. Mail to send a letter

to David Klein of SCI contending that Plaintiff needed to send B&K additional payroll


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the CBA, was "not adequate" for B&K to proceed

including a detailed spreadsheet of SCI employees that work within the area covered by

rmation provided to B&K by Plaintiff, Greenberg, stating that the additional info

th a carbon copy to Bill Coli and Attorney Steve Metzger, counsel to SCI ("Metzger"), wi

On April 15, 2010, Marino used the U.S. mail to send a letter to

unemployment quarterly reports;

for all SCI employees detailed on Illinois

On April 8, 2010, Marino sent an interstate email to counsel for

Lawsuit, and stating that Plaintiff need

John Coli, Jr. and Joseph Coli, would not agree to dismiss the Cypress Funeral Home

recommendation of Attorney Greenberg, the Board of Trustees, including John Coli, Sr.,

with an interstate carbon copy to counsel for Plaintiff, stating that upon the

On March 31, 2010, Bill Coli sent another email to David Klein,

the materially flawed audit and the Cypress Funeral Home Lawsuit;

aintiff, concerning reaching a settlement of carbon copy sent interstate to counsel for Pl

On March 25, 2010, Bill Coli sent an email to David Klein, with a

included or excluded from the audit; determining whether the individuals should be

requesting additional information for vari

with B&K ("Marino"), used the U.S. mail to send a letter to counsel for Plaintiff

On December 16, 2009, Tom Marino, a payroll audit supervisor

records in order to confirm that non-bargaining unit employees were not included in the

final audit report;

(cc)

ous individuals for the alleged purpose of

(dd)

(ee)

ed to provide B&K with the additional

information that they were requesting;

(ff)

Plaintiff needlessly requesting documentation

(gg)

with its review of the final audit and,


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information "goes in or out of the [B&K audit] report";

settlement agreements but that the Coli Defendants were powerless to control what

Defendants would pass along information to B&K and confirm with B&K previous

Sr. and Bill Coli stating that the Coli Hayes, counsel for SCI ("Hayes"), John Coli,

On May 14, 2010, John Coli, Jr. sent an interstate email to Joseph

members and/or not performing any bargaining work during the time period of the

disputed individuals who were still named in the report despite not being Union

On May 12, 2010, B&K used the U.S. mail to send a revised audit

Coli identifying the numerous errors contained in the B&K audit, for B&K's

of Plaintiff's August 10, 2009 letter to Bill stating that he would forward to B&K a copy

On May 4, 2010, Bill Coli sent an interstate email to Metzger

communication regarding this matter";

provided B&K with all of the documents requested, "we see no need for any further

referring the matter back to the Funds' legal counsel and, that, unless Plaintiff

g sufficiently detailed records to B&K, B&K was

Metzger, with a carbon copy to Bill Coli,

On April 30, 2010, Marino used the U.S. mail to send a letter to

unemployment quarterly reports;

for all SCI employees detailed on Illinois again, needlessly requesting documentation

(hh)

Attorney Greenberg and Gary Pater, stating

that as a result of Plaintiff not providin

(ii)

"consideration and action";

(jj)

report to Plaintiff along with a cover letter demanding additional information regarding

audit;

(kk)


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as a possible date for such a meeting;

ees for the fund and offering July 14, 2010 like to discuss the B&K audit with the Trust

Hayes, noting that his father, John Coli, Sr., had informed him that Mr. Hayes would

On July 6, 2010, John Coli, Jr. sent an interstate email to Joseph

stating, "I'm sorry to hear that. We still need

five-year period, Pater sent another interstate email to Metzger on May 17, 2010 simply

onerous of a task to draft job descriptions for every one of Plaintiff's employees over a

After Metzger responded to Pater that, although Plaintiff could

s requesting detailed job description

unemployment quarterly tax returns, and attaching a spreadsheet containing a list of

final audit report and the individuals indentified in B&K's review of the Illinois

ees remaining in question in the revised

On May 17, 2010, Pater sent an interstate email to Metzger, with a

727;

locations that were subject to prior settlement agreements between Plaintiff and Local

approximately $37,000 in alleged deficiencies related to certain individuals and

On May 14, 2010, Pater sent an interstate email to Metzger, with a (ll)

carbon copy to Bill Coli, attaching the revised final audit report, deducting

(mm)

carbon copy to Bill Coli, stating that it would be helpful if SCI would create a document

detailing the job descriptions of the employ

hundreds of employees for whom B&K wa

information;

(nn)

provide even more detailed job descriptions for each employee at issue, it would be too

that information as it is essential to the

completion of our audit.";

(oo)


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system; and

upon individuals and/or counsel located outside of Illinois through the court's ECF

e U.S. mail and/or electronically served Lawsuit and the Piser Livery Lawsuit via th

e Columbian Chapels Lawsuit, the WHS Mandel Lawsuit, the Marsh Lawsuit, th

wsuit, the Montclair Lawsuit, the Lloyd Plaintiff in the Cypress Funeral Home La

but not limited to the underlying complaints, served upon Plaintiff and/or counsel for

of any agreement between Local 727 and Plaintiff regarding Ms. Lamb being exempted

John Coli Sr. and Bill Coli had no knowledge

facsimile to Metzger stating that Rose Lamb would not be removed from the second

On February 28, 2011, Attorney Greenberg sent an interstate

support any further revisions to the final revised audit report;

ation provided by Plaintiff to B&K did not Metzger stating that the additional document

On September 7, 2010, Pater used the U.S. mails to send a letter to

letter to Bill Coli suggesting that B&K was unable to complete the audit because

Moreover, on July 21, 2010, Pater used the U.S. mails to send a

indicating that Plaintiff met certain obligations referenced in the CBA;

audit would not be removed from the audit unless Plaintiff provided documentation

approximately seven employees remaining in question within the B&K revised final

Metzger, with a carbon copy to Bill Coli, stating, for the first time, that the

On July 21, 2010, Pater used the U.S. mails to send a letter to (pp)

(qq)

Plaintiff had failed to provide certain information;

(rr)

(ss)

revised final audit report and stating that

from participation in the Funds;

(tt) Any and all pleadings, documents and correspondence, including


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om Plaintiffs money and contributions that defraud Plaintiffs and wrongfully extort fr

engaging in the aforementioned scheme to additional monies in the Local 727 Funds by

The Defendants' receipt of additional monies and/or agreement to receive

justice in the context of the Cypress Funeral Home Lawsuit.

e or obstruct the due administration of

predicate act of obstruction of justice in violation of 18 U.S.C. § 1503(a), insofar as

bargaining unit work during the time peri

Home Lawsuit and that Balodimas had advised Affetto that he did not perform

Affetto had met with Chris Balodimas during the pendency of the Cypress Funeral

Defendants' deliberate failure to disclose to Plaintiff or the Court that Ben

Cypress Funeral Home Lawsuit.

persuading Plaintiffs to not call Defendant John Coli, Sr. as a witness at trial in the

endeavored to obstruct or impede the due administration of justice by corruptly

obstruction of justice in violation of 18 U.S.C. § 1503(a), insofar as Defendants

Defendants on the night of July 10, 2011 constitutes a separate predicate act of

Defendant John Coli, Sr. as a witness at trial in the Cypress Funeral Home Lawsuit.

attempt by Defendants to intimidate or

tampering in violation of 18 U.S.C. § 1512(b) insofar as each act of vandalism was an

titutes a separate predicate act of witness Defendants on the night of July 10, 2011 cons

Each and every act of vandalism of Plaintiff's funeral homes by

acts as discovery may reveal.

All other acts of mail fraud, wire fraud and/or other RICO predicate (uu)

268.

corruptly persuade Plaintiff from calling

269. Each and every act of vandalism of Plaintiff's funeral homes by

270.

od covering the B&K audit constitutes a

Defendants corruptly endeavored to influenc

271.


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s allegedly due to the Funds; seeking

good cause; submitting audit reports to Plai

: auditing Plaintiff's funeral homes without Coli, Sr., Bill Coli and John T. Coli, Jr. from

Injunctive relief in the form of an Order prohibiting defendants, John T.

Other John Doe Entities 1 through 10 for:

John and Jane Does 1 through 100, John and Jane Doe Corporations 1 through 10 and

favor, and against John T. Coli, Sr., Bill Coli, John T. Coli, Jr., Teamsters Local 727,

WHEREFORE, Plaintiff, SCI Illinois Serv

injunction ordering Defendants to conduct the Funds' audits fairly and in good faith

As the scheme and conspiracy are continuing, Plaintiff requests an

to outside counsel and in-house attorneys,

nts and analysis, including but not limited

its vandalized funeral homes and costs of

Marsh Lawsuit, the Columbian Chapels Lawsuit, the WHS Lawsuit and the Piser

Cypress Funeral Home Lawsuit, the Montclai

SCI’s out of pocket and incurred expenses in connection with defending against the

The Defendants' violation of Section 1962(c) proximately and directly

plan in violation of 18 U.S.C. § 1954. the operations of an employee benefit

predicate act of unlawful influence regarding the Funds are not entitled to constitutes a

272.

caused injury to Plaintiff's business and property.

273. The injury to SCI’s business and property includes, but is not limited to,

r Lawsuit, the Lloyd Mandel Lawsuit, the

Livery Lawsuit as well as the costs to repair

responding to frivolous requests for docume

paralegals and employees of Plaintiff.

274.

and only when required by proper cause.

ices, Inc., requests judgment in its

(1)

ntiff that contain false, misleading and/or

inaccurate information regarding amount


Peter

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2

ganization Act, 18 U.S.C. § 1962(d)

COUNT II

Costs; and

Attorneys’ fees;

Interest;

Treble damages;

Compensatory damages;

Funds; and directly or indirectly causing any damage or harm to Plaintiff's property;

at are not in fact due and owing to the contributions to the Funds from Plaintiff th

(2)

(3)

(4)

(5)

(6)

(7) Such other relief as the Court may deem just and proper.

Racketeer Influenced Corrupt Or

agreeing to conduct the affairs of the Funds through a pattern of racketeering activity.

Bill Coli, John Coli, Jr. and the John Doe Defe

From approximately 2002 to the present date, Local 727, John Coli, Sr.,

U.S.C. § 1961(1)

through 10 and Other John Doe Entities 1 through 10 were “persons” as defined by 18

Local 727, John and Jane Does 1 through 100, John and Jane Doe Corporations 1

At all relevant times, John Coli, Sr., Bill Coli, John Coli, Jr., Teamsters

Plaintiffs incorporate by reference the preceding paragraphs as if fully set

and Other John Doe Entities 1 through 10 and Jane Does 1 through 100, John and Jane Doe Corporations 1 through 10

hn T. Coli, Jr., Teamsters Local 727John T. Coli, Sr., William Coli, Jo

SCI Illinois Services, Inc.

vs. , John

275.

forth herein.

276.

277.

ndants violated 18 U.S.C. § 1962(d) by


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Coli, Sr., Bill Coli and John T. Coli, Jr. from: auditing Plaintiff's funeral homes without

Injunctive relief in the form of an Order prohibiting defendants, John T.

Other John Doe Entities 1 through 10 for:

John and Jane Does 1 through 100, John and Jane Doe Corporations 1 through 10 and

favor, and against Teamsters Local 727, John T. Coli, Sr. John Coli, Jr., William Coli,

WHEREFORE, Plaintiff, SCI Illinois Serv

injunction ordering Defendants to conduct the Funds' audits fairly and in good faith

As the scheme and conspiracy are continuing, Plaintiff requests an

In the alternative, Local 727 aided and abetted the Coli Defendants and

Marsh Lawsuit, the Columbian Chapels Lawsuit, the WHS Lawsuit and the Piser

Cypress Funeral Home Lawsuit, the Montclai

SCI’s out of pocket and incurred expenses in connection with defending against the

SCI’s business and property.

The violation of Section 1962(d) proximately and directly caused injury to

other acts of mail fraud, wire fraud and/or other RICO predicate acts as discovery may

paragraphs 267 through 271 above, and all

Overt acts in furtherance of the conspiracy include but are not limited to 278.

the mailings, wires and actions described in

reveal.

279.

280. The injury to SCI’s business and property includes, but is not limited to,

r Lawsuit, the Lloyd Mandel Lawsuit, the

Livery Lawsuit as well as the costs to repair its vandalized funeral homes.

281.

the John Doe Defendants in conducting the affairs of the Funds through a pattern of

racketeering activity.

282.

and only when required by proper cause.

ices, Inc., requests judgment in its

(1)


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By: /s/ Chad W. Moeller

Respectfully submitted,

Costs; and

Attorneys’ fees;

Interest;

Treble damages;

Compensatory damages;

Funds; and directly or indirectly causing any damage or harm to Plaintiff's property;

at are not in fact due and owing to the contributions to the Funds from Plaintiff th

s allegedly due to the Funds; seeking

good cause; submitting audit reports to Plaintiff that contain false, misleading and/or

inaccurate information regarding amount

(2)

(3)

(4)

(5)

(6)

(7) Such other relief as the Court may deem just and proper.

Counsel for Plaintiff, SCI Illinois Services, Inc.

Facsimile: (215) 665-3165 Telephone: (215) 665-3000 Philadelphia, PA 19103-1895 1617 John F. Kennedy Boulevard One Penn Center, 19

OBERMAYER REBMANN MAXWELL & HIPPEL LLP

Michael V. Phillips Jeffrey S. Batoff Michael S. Pepperman

- and -

[email protected] Facsimile: (312) 750-6452 Telephone: (312) 269-8000 Chicago, IL 60602 2 North LaSalle Street, Ste. 1700 NEAL, GERBER & EISENBERG LLP Chad W. Moeller

Pro Hac Vice pending

th Floor


Peter

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Documents

Teamsters Coli RICO Complaint