Former Boilermakers Executive Testifies on Misuse of Union Funds
Union exec: Boilermakers funds covered Maui suites, alcohol and no-show family jobs
Kansas City Star
Image: Kansas City Star
Kathy Stapp, a former executive of the International Brotherhood of Boilermakers, testified in federal court that union funds were misused for personal expenses, including luxury hotel stays in Maui and excessive alcohol purchases. Seven union employees, including former president Newton Jones, face charges for embezzling millions through no-show jobs and extravagant spending. The trial is ongoing in Kansas City, Kansas.
- 01Kathy Stapp testified that union funds covered personal expenses, including an eight-night stay in a presidential suite at the Sheraton Maui Resort and Spa costing $59,220.
- 02Stapp revealed that Newton Jones and his family members were hired for no-show jobs, with Kateryna Jones receiving over $120,000 in back pay for work she did not perform.
- 03The union's vacation policy was ignored, resulting in a payout of $484,800 to former International Secretary-Treasurer William Creeden for 74 weeks of unused vacation.
- 04Stapp disclosed that union funds were used for significant alcohol expenses, with Jones regularly charging alcohol to the union's account for hospitality at meetings.
- 05The trial includes allegations of health care fraud involving a terminally ill man placed on the union payroll to secure benefits for his family.
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In a federal court in Kansas City, Kansas, Kathy Stapp, the former human resources director of the International Brotherhood of Boilermakers, testified about the misuse of union funds by several executives, including former president Newton Jones. Stapp detailed extravagant expenses, including $59,220 for hotel stays in Maui and significant alcohol purchases charged to the union's account. She indicated that Jones hired family members, including his wife, Kateryna, who received over $120,000 in back pay for work she did not perform. Additionally, the union's vacation policy was reportedly ignored, leading to a $484,800 payout to Creeden for unused vacation time. Stapp also revealed allegations of health care fraud, stating that a terminally ill man was placed on the union payroll to secure benefits for his family. The trial involves charges against seven union employees for embezzlement and racketeering, with defense attorneys arguing that the actions were in line with union practices. Stapp's testimony is critical as the trial progresses, highlighting serious concerns about financial misconduct within the union.
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The misuse of union funds raises concerns about financial integrity and accountability within labor organizations, potentially affecting union members and their trust in leadership.
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