|
Former New York State Assemblyman and Labor Leader
Brian McLaughlin Sentenced to Ten Years in Prison
for Racketeering and False Statement Crimes
LEV L. DASSIN, the Acting United States Attorney for
the Southern District of New York, JOSEPH M. DEMAREST, JR., the
Assistant Director-in-Charge of the New York Field Office of the
Federal Bureau of Investigation ("FBI"), DANIEL R. PETROLE, the
Deputy Inspector General of the United States Department of Labor
("DOL-OIG"), and ROSE GILL HEARN, the Commissioner of the New
York City Department of Investigation ("DOI"), announced the
sentencing today of BRIAN M. McLAUGHLIN, 57, a former New York
State Assemblyman and labor organization leader, to 120 months in
prison for racketeering and making a false statement on a loan
application. United States District Judge RICHARD J. SULLIVAN
presided over the sentencing in Manhattan federal court.
McLAUGHLIN had previously entered a plea of guilty on March 7,
2008, to Counts One and Forty-Four of the Indictment, charging
those offenses.
According to the Indictment, statements made at the
guilty plea proceeding, and additional information presented to
the court at sentencing:
McLAUGHLIN functioned as the highest ranking official
of the J Division of Local 3 of International Brotherhood of
Electrical Workers ("IBEW"), which represents electrical workers
in New York City. Members of the J Division typically install
and maintain street lights and traffic signals in New York City.
McLAUGHLIN stole money from a J Division bank account; accepted
payments from union contractors; secretly maintained an interest
in a company doing business with union employers, using his
position as a union official to advance that company's, and thus
his own, financial interests; and directed activities of J
Division members for his own personal gain and profit. For
example, McLAUGHLIN misappropriated over $275,000 dollars from a
J Division account that was maintained for the benefit of the J
Division and its members. The account was funded largely by
deductions from union members' paychecks, as well as by
contributions from contractors to support the union. McLAUGHLIN
used those funds for his personal benefit. McLAUGHLIN also
accepted payments from contractors that employed J Division union
members, and also accepted vehicles and other personal benefits.
McLAUGHLIN also served as the President of the New York
City Central Labor Council (the "CLC"), a chartered affiliate of
the American Federation of Labor and Congress of Industrial
Organizations, from which he misappropriated approximately
$268,000. McLAUGHLIN had the CLC hire one person, who did little
or no substantial work, as both a consultant and an employee.
That person funneled his pay from CLC back to McLAUGHLIN, who
used it to help pay personal expenses.
McLAUGHLIN was also a New York State Assemblyman,
representing the 25th Assembly District in Queens, New York, from
1993 through 2006. As an Assemblyman, McLAUGHLIN misappropriated
over $32,000 from the State of New York. In particular,
McLAUGHLIN created fictitious positions on his legislative staff
and pocketed a share of the salary for one of the purported
employees. He also submitted false claims for reimbursement of
his daily expenses.
Finally, in April 2003,in order to obtain a mortgage on
a second residence, McLAUGHLIN submitted a loan application in
which he falsely stated that he was renting out his current home
at a rent that exceeded the mortgage payments he would be making
on the loan he was seeking.
In addition to the prison term, Judge SULLIVAN
sentenced McLAUGHLIN to three years of supervised release,
ordered that he pay restitution to his victims, and ordered that
he forfeit all of the proceeds from his criminal conduct in an
amount of over $3 million, which includes his interest in
proceeds from the sale of real property, an automobile and
campaign committee funds.
Judge SULLIVAN ordered that McLAUGHLIN will be required
to begin serving his sentence by July 21, 2009.
Mr. DASSIN praised the FBI, DOL-OIG, and DOI for the
investigation of this case and thanked them for their work. Mr.
DASSIN said the investigation is continuing.
This case is being handled by the Office's Public
Corruption Unit. Assistant United States Attorney DANIEL BRAUN
is in charge of the prosecution.
Press Releases | New York Home
|
