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DOCUMENT
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\ DATE FILED: ()3i')..o/l'b
OF
OM.BERMAN
e(elt-' -Ie ().c.Lt
Demian D. Schroeder
14 Meadow Street
Brooklyn, NY
-
11206
March 20, 2013
BY HAND
The Honorable Richard M. Berman
United States District Judge
!?..J,..,J ".'i?....AI
Daniel Patrick Moynihan
United States Courthouse
500 Pearl Street
Richard M. Berman, U.S.D.J.
New York, NY 10007-1312
.S.O.J.
Re: United States ofAmerica v. District Council of New York City and Vicinity of the United
Brotherhood of Carpenters and Joiners of America, et al., Case 1:90-cv-05722-RMB-THK
Dear Judge Berman:
In regard to the execution of the District Council/Wall-Ceiling contract (CBA) dated March 12, 2013
as set forth by the Court's March 13, 2013 Order [Document 1255] I submit for Your Honor
subsequent observations relevant to the Case:
During the District Council Delegate Body meeting of March 12,2013 Delegate John Musumeci of
Local Union 157 brought to the attention of EST Michael Bilello two discrepancies within the Wall
Ceiling Agreement.
1) Delegate Musumeci's identified the non-existent "stamp plan" (referred to by side-letter
enclosure of District Council attorney Murphy in submission [Document 1272J to Your
Honorable Court on March 15, 2013.) Said language needs to be stricken from the CBA.
2) Delegate Musumeci then presented a second discrepancy to EST Bilello within the Wall
Ceiling Agreement regarding an hourly-allocation of $2.12 to the Welfare Fund. Though not
vested by the August 5, 2011 District Council Bylaws with authority to do so, and in absence
of approval from the Delegate Body under its inherent and controlling plenary power and
authority, EST Michael Bilello entered into an illegal agreement on behalf of the District
Council with the WC&C and increased the Welfare Fund contribution by $2.12 per from
$11.25 to $13.37.
EST Bilello was questioned directly by Delegate Musumeci why he would execute a contract
allocating wage rates and fringe benefit contributions without debate or vote by the Delegate Body.
The EST has no authority either express or implied which allows him to subvert and hold unto
himself a power not reserved to him, thus his illegal actions require a veto by the Review Officer.
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 1 of 12
Page 2
EST Bilello refused to answer questions directly, and was conspicuously silent to the extent of
Delegate Musumeci's remaining allotted time. Though District Counsel attorney James Murphy and
the Review Officer Dennis Walsh were present, neither of them approached the dais to provide an
explanation for assembled Delegates, and attending rank-and-file Membership in the back gallery.
Contrary to the false claims stand the alleged wage & benefit increases "guaranteed throughout the
term of this agreement,"as it is immediately destroyed by Executive Secretary-Treasurer's (EST)
fraudulent use of the illegal reallocation clause.
There remains an urgent need to investigate the legitimacy of the entire process within the District
Council administration with specific regard to the District Council EST, Officers, and Benefit Fund
Trustees failure to acknowledge or abide by the by the August 5, 2011 by-laws approved by this
Honorable Court.
The lack of oversight provided by the United States Attorney's Office and the Court appointed
Review Officer for vetting contract language, or enforcing by-laws which they ostensibly authored is
alarming. The second discrepancy Delegate Musumeci found is particularly disturbing as it involves
the illegal transfer of approximately $38,340,000 dollars of rank and file member pay raises to the
Welfare Fund for one year. Over the proposed life of the contract expiring June 30, 2017 this would
amount to an illegal reallocation of $166,012,000 dollars (4.33 years x $38.34M) to the Welfare Fund
before the ink is dry on a ruling from this Court.
The District Council's program of illegal exactions and extortion of members Vacation Wages (Blue
Card See Attachment No.1 to 7) are prime examples which present the issue of an ongoing pattern
of continued fraud and racketeering, none of which should be sanctioned by the U.S.A.O. or the R.O.
- yet, in absence of your intervention, correction and a proper Order from this Honorable Court, it
shall continue unabated.
The August 5, 2011 By-Laws, Section 4(B) state:
(B) The full plenary power and authority of the District Council is hereby vested.
without limitation. in the Delegates to the Council that shall collectively form the
Council Delegate Body. In accordance with Section 7 of these Bylaws, the Council Delegate
Body shall be elected by the rank and file members of the United Brotherhood of each
affiliated Local Union. There shall be a total of One Hundred (100) Delegates to the District
Council from the Local Unions, such Delegates to comprise the Council Delegate Body. Each
Local Union shall have at least one Delegate to the District Council, with the remaining
Delegates allocated proportionally amongst the Local Unions based upon the total
membership of each Local Union as a percentage of the aggregate membership of all Local
Unions of the District Council. The Council Delegate Body shall exercise the authority
granted to it in Section 5 of these Bylaws by majority vote and each Delegate shall be elected
for a term of three (3) years. In the event of a tie vote, the President shall cast the tie-breaking
vote.
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 2 of 12
Page 3
The contract proposal presented in Court on February 27, 2013 and as executed March 12, 2013 states:
WALL-CEILING CBA - ARTICLE XII, Section 8. Wages & Benefits - Wage and Benefit
increases are not tied to any benchmarks such as total hours worked and are guaranteed
throughout the term of this agreement. Wage rates and fringe benefit contributions within
the bargaining unit shall be determined and/or reallocated by [the] Union at its sole
discretion.
In direct contravention to NYCDCC By-Law Sec. 4(B) stands the continued fraudulent attempt by
the District Council EST, its Officers and Executive Committee members, and the Wall-Ceiling &
Carpentry Industries of New York, Inc. and their joint desire to extinguish via collective bargaining
agreement (CBA) the Council Delegate Body's vested rights stated above, and thus negate its plenary
power and authority which are without limitation.
Given the United States Attorney and the Review Officer are well aware of these continued abuses
of power and have failed to act, the only prospective remedy going forward is an Order from this
Honorable Court directing the District Council and the Wall-Ceiling & Carpentry Industries of New
York, Inc. to expunge Article XII, Section 8 in its entirety from this CBA and to apply this Order to
any/all successor agreements and/or Memorandums of Understanding (MOU) which the District
Council attempts to execute both now or in the future.
The thirty-eight million, three hundred & forty thousand dollar pay raise, totaling $166M over the
4.33 year life ofthe contract, belongs in the rank & file member paychecks. The NYCDC and
contractor association cannot appropriate it to another use without proper motion, discussion, debate
and the binding vote of the Council Delegate Body as vested and held unto them under By-law
Section 4(B).
To allow this to occur would in essence mandate Court approval of the conversion/misappropriation
and sanction a plan of out and out extortion both of rights granted and of monies/raises duly owed
and guaranteed throughout the term of this agreement.
We pray the Honorable Court remedy this situation once and for all times, less the Court loses its
inherent authority.
Respectfully,
P
Demian D. Schroeder
3-- 2..0 - Is
Enclosure
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 3 of 12
Page 4
cc: BY E-MAIL
Benjamin H. Torrance
Assistant United States Attorney
Civil Division
Office of the United States Attorney
for the Southern District of New York
86 Chambers Street
New York, NY 10007
Dennis M. Walsh, Esq.
Review Officer
The Law Office of Dennis M. Walsh
415 Madison Avenue, 11th Floor
New York, NY 10017
Bridget M. Rhode, Esq.
Counsel to the Review Officer
Mintz, Levitz, Cohn, Ferris, Glovsky & Popeo. P.c.
666 Third Avenue
New York, NY 10017
New York City & Vicinity District Council of Carpenters
Executive Secretary-Treasurer Michael Bilello
395 Hudson Street
New York, NY 10014
James M. Murphy
Counsel for the New York City & Vicinity District Council of Carpenters
Spivak- Lipton, LLP
1700 Broadway
New York, NY 10019
John DeLollis
Executive Director
Association of Wall-Ceiling & Carpentry Industries of New York, Inc.
125 Jericho Turnpike, Suite 30 [
Jericho, NY 11753-1022
Mark A. Rosen, Esq.
Counsel for the Association of WaH- Ceiling & Carpentry Industries of New York, Inc.
McElroy, Deutsch, Mulvaney, & Carpenter, LLP
1300 Mount Kemble Avenue
Morristown, NJ 07962-2075
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 4 of 12
Page 5
ADDITIONAL SERVICE via E-Mail:
Robert F. Makowski,
Sterling Dadone,
Norman Saul,
Raynier Gamboa,
Veronica Session
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 5 of 12
NE\V YORK OF CARPENTERS
UN10N MANM:EMI'.:--IT
BENEFIT FUNDS
T1UlSTEfS 'rlt(JSTI'ES
Stuart R. GraBois
K,'vin l)'( .dl.l,w,iI.Hl
M icll.ld J. Fnrde
Executive Dirct:tor
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Dellis Shell
I l)'Errico Nnv York. N.Y. 1001*
ll.\vid T.
P,nti (nlr"'1\
'"hn E. Crt'allty I','kph'l!w: J('(l- non
./<)"'1'11 ( lI;vwrt
l 'h;lr"" I hrkin
lax: (212.) 3()()-7Hl
September 29.2008
Dear Member,
The Benefit Funds are in the process of updating our existing records. In order to process
vacation checks a new signed Vacation Assessment Authorization Card must be on file
for aU members.
Please complete the enclosed Vacation Assessment Authorization Card and return to us
as soon as possihle. A self tlddressed. postage paid envelope is provided for your
convenience.
Thank you for your prompt attention to this maUer.
New York Distrkt Council of
Carpenters Benelit funds
442
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 6 of 12
[ATTACHMENT]
JlNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA
.r
NEW YORK CITY DISTRlCT COUNCIL OF CARPENTERS
MICHAEl J FURDE
E xecu(llre Secrerary Treasurer
PETER THOM.... S E N 395 HUDSON STREET
President
NEW YORK, N.Y. 10014
PHONE: (212) 366-7500
Vice PreSldenr INSTITUTED AUGUST 11TH. 11381 FAX: (212) 675-3118
DENIS SHEIL 1lI
October 20, 2008
Dear Brothers and Sisters:
We have been receiving questions from many of you about t\1<;: mailing you recently
received from the Benefit Funds office asking you to sign and send in a new vacation fund
authorization card. At the Fund office these are commonly known as the "Blue Cards", Since
questions from some members may reflect questions many of you have, we thought we'd
write to answer some of them for you.
What is this Blue Card for? The Blue Card is a card every member signs when they
first join the Union. It is a legally required authorization for the withholding and payment of
your Union working dues and assessments. Each quarter, these fees are automatically
deducted from your vacation fund distribution and paid over to the District Council. A copy
of the old Blue Card and the new one is enclosed with this letter so you can compare them
and the differences between the two.
Why am I being asked to sign a new Blue Card? There are two simple, but very
important changes to the Blue Cards:
1. Cash Hounds and Cheaters Don't Deserve Vacation Checks. As many of
you know, over the past few years our anti-corruption program has exposed several
companies that have paid carpenters to work off the books, whether for cash or for no
benefits. Even more disturbing, some shop stewards and even Union delegates have been
caught and convicted of acting dishonestly to protect or cover up schemes to defraud our
Union and our Benefit Funds. Tri-Built and On Par are just two of the companies that have
paid hundreds of dishonest members off the books. These "members" (if you want to call
them that) cheat our Benefit Funds, deny honest Carpenters work opportunities and
undermine everything good you and your Union representatives work so hard to achieve and
keep. Many of those members have been identified. Those who have been identified have
been charged with violating the obligation of membership and defrauding the Union and our
Funds and have faced internal Union trials. Most of them have been fined and many have
been expelled from our Union.
At the same time that we pursue dishonest members, we also vigorously pursue
collection actions against these companies. We have collected millions of dollars so far, and
will collect millions more, in unpaid benefits from these companies as payback for their
2
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 7 of 12
[ATTACHMENT]
violations. However we often find ourselve!i in the incredible position of sending the very
same workers who conspired with these companies to cheat the Funds, vacation checks
from the money we have collected. Can you imagine that? This is just wrong. For
example. we collected unpaid benefits for almost one hundred cash hounds from Tri-Built
(the fonner owners of which have been ordered by the federal courts to pay $1.3 million
more). Additionally we stand to collect millions for cash paid out by On Par to over a
hundred workers. There is no way we should ever send those workers a cash reward in the
form ofa vacation cheekYor their misdeeds.
We collected unpaid benefits for almost one hundred cash hounds from Tri-Built
(and the former owners have been ordered by the federal courts to pay $1.3 million more).
We stand to collect millions for cash paid out by On Par to over a hundred workers. But
there is no way we should ever send those workers a cash reward in the form of a vacation
check for their misdeeds.
To prevent this injustice, in March ofth is year we encouraged the Fund Trustees to
adopt a rule disqualifying anyone found guilty of defrauding the Funds by working for
cash or supporting a scheme to pay workers in cash from receiving health benefits in
retirement. We also resolved that the fines imposed for these violations should be
recoverable from the vacation benefit distributions. So the Blue Cards have been re-worded
to authorize the deduction of these fines from the vacation benefit distribution. If these
violators don't have vacation monies to seize, we will collect their fines through other legal
action.
How can you argue with that? The 99% ofour membership that is honest and hard
working will never be affected by thi.'f change. Monies recovered from the dishonest
cheaters will help go to reduce overhead costs of your Union, including your anti-corruption
program.
2. Union Member Privacv. The second reason new Blue Cards are being
collected is to advance the conversion from social security numbers to UBC#'s. A space has
been added to record your UBC# in addition to your social security number. As time goes
on, to protect your privacy, all of the Union's and Funds' record keeping will be maintained
by your UBC# instead of social security numbers
Your Union's leadership wants you to know that they are committed to protecting
your wages and benefits from anyone who would try to take them away.
Enclosed with this letter is another Blue Card and a self addressed postage paid return
envelope for you to use. If you have not already done so, please sign your new Blue Card
and return it to the Benefit Funds office as soon as possible. [fyou have already done so, we
thank you for supporting our efforts in protecting you and your family's future. [fyou have
any questions about this or any other matter regarding your Union, do not hesitate to contact
your Business Representative or the District Council offices.
Fraternally,
NYC District Council
Executive Committee
3
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 8 of 12
b1:.if
ENT1
VACATION FUND AUTHORIZATION CARD
!'I!'EW YORK anDISTRlcr COUNaL CARPThlERS \:KATION FUND
VAC-A (5M) 8106
395 Hudsoo Street New York. l',y 10014-9889
Fund Administrator (212)366-7300
New York District Council
<@eM2
Carpenters Vacation Fund
Dear Member.
You are bereby authorized and directed to deduct from my vacation pay wben distnnuted to me. soch amounts as desigDlited, orlIS hereafter
designated, by the District Cmmdl of Carpenters aDd my Local Union, if it is affiliated with tbe Ne.. York DIstrlct COUDCil of Carpenters, lIIId remit
soch SIIIDS to the District Coonc:il of Carpenters and/or my Local Union. The said amooot SO deducted I1!preseuts a working assessment Whidt I
hereby direct to be paid to said District C0WI!!11 or Local Union, as the aL'OC may be.
TIns anfllm'i:rJUion sball be irrevocable except during a periDd of len (10) days prior to: (l)ooeyear from the date of tbis authorization (2) any
anniversary of its effective date and/or (3) termination of the applicable Collective Agreement, whkhe>'t!r 0ttUrS sooner.
1. NAl\IE
6. LU#
2. ADD
7. SS#
3. CITY & STATE
8. D.O.B.
4. ZIP
MEMBER'S SIGNATIJRE DATE
5. TEL
NEW
VACATION FUND AUTHORIZATION CARD
NEW YORK CITY DISTRICT COUNClL OF CARPENTERS WELFARE l ) - VACATION BENEFIT
395 Hudson Street New York, NY 10014-9889
(212) 366-7300
Fund Administrator
New York District Council of Carpenters
Welfare Fund - Vacation Benefit
Dear Fund Administrator.
You are hereby authorized and directed to deduct from my ,,,,cation pay when distributed to me. such amounts as designat 0< as hereafter designated,
by the Deltrie! Council of Carpenten; and my Local Union. if it is affiliated with the New Yorl< Dimict Council of Ca:rpente and remit such sums to Ibe
District Coundl of Carpenters andlor my Local Union. The said amount so deducted represent' a working assessment:andlor fines or penalties which J
hereby direct to be paid to said District Councilor Local Union. as the case may be.ln !:he exlent permiSSible under applicable 'law, .."'.
This authorization shall be irrevocable except during a petiod of ten (IO) days prior to: (I) one year from the date of the authorization (2) any
anniversary of its effective date and/or (3) termination of the applicable CoU""tive Agreement, whichever occurs sooner.
1. NAME 6.W#
2. ADDRESS 7. SS#
3. CITY AND STATE. 8. D.O.B.
4. ZIP CODE 9.UBC#
5.PHOt-.'t
MEMBER'S SIGNATURE DATE
Being used to
prevent ID theft.
4
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 9 of 12
NO POSTAGE
NECESSARY
IFMAlLED
[NV-5A (5M) 7/06 ..... 442
filII
IN THE
UNrrED STATES
BUSINESS REPLY MAIL
FIRSTCLASS MAil PERMIT NO. 4237 NEW YORK. N. Y.
POSTAGE WILL BE PAID BY ADDRESSEE
NEW YORK DISTRICT COUNCIL OF CARPENTERS
BENEFIT FUNDS
395 HUDSON STREET
NEW YORK, N.Y. 10014-9889
11," 1111 '"11111111111,,1,,1.1'11,1.1111111,1
S
ATT: VACATION DEPT.
fl
I
;;::
m
z
(J1
.:j
NEW YORK CITY DISTRICT COUNCIL OF CARPENTERS WELFARE FUND - VACATION BENEFIT
39511udsol1 Street New York, NY 100149889
(212)366.7300
Fund Administratot .

New YorkDistrkt Council of Carpenters'
Welfare FundVacation Benefit
Dear Fond Administrator. . . . .. . ..'
You are hereby authdrized and directed to deduct from my vacation to me, such amounts as.designated, or as hereafter designated,
by the District Council of Carpenters and my Local Union, if It is the New York District CcrullcilofCarpenters,and remit such sums to the
Di strict Council of Carpenters and/or my. Local Union. The said amount so deducted representS' a working assessment and/or fines or penalties which I
hereby to ';e p'aid to said Council Uniol1. the' caSe may, be to extent permissible under lipplicable law. .'.
ThIS authonzatlOn shall be irrevocable except dunng. a pennd of ten. (10) dayspnor to: (1) one .year from the date of the authorization (2) any
anniversary of its effective date andlor (3) terttlinationof the applicable Collective Agreement,. whichever occurs sooner.
1. NAME 6.W #.
2. ADD Ri:SS 1.S9#
3. CITY AND STATE 8:0.0.8.'
4. ZIP CODE g.bBe#
5. PHONE
MEMBER'S SIGNATURE DATE
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 10 of 12
---------------
[ATT;..QHMENTJ
NEW YORK DISTRICT LtOUNCIL OF CARPENTERS
UNION
TRUSTEES
Michael J. Forde
Chairman
Perer Thornasoen
Denis Sheil
Lawrence D'Errico
John E, Greaney
Charles Harkin
BENEFIT FUNDS
Stuart R. GraBois
Executive Director
395 Hudson Street
New York, N.Y. 10014
Telephone: (212) 366-7300
Fa.x: (212) 366-7444
February 19,2009
MANAGEMENT
TRUSTEES
Kevin O'Caliaghan
Co-Chairman
l\lfred G. Gerosa
George Greco
David T. Meberg
Paul O'Brien
Joseph Olivieri
"
Our records indicate that we do not have an updated signed Vacation Assessment Authorization
card pertaining to working assessment and/or fines or penalties on file for you. In order to
process your vacation check, authorization must be on file for all members.
Please fill out the missing information and sign at the bottom this authorization and return it to us
as soon as possible in order to receive your March vacation check which is approximately
$1,544.75. This figure is based on hours that are currently in our system. A self-addressed,
postage-paid envelope is provided for your convenience.
Dear Vacation Benefit Administrator:
You are hereby authorized and directed to deduct from my vacation pay when distributed to me,
such amounts as designated, or as hereafter designated, by the District Council of Carpenters and
my Local Union, if it is affiliated with the New York District Council of Carpenters, and remit
such sums to the District Council of Carpenters and/or my Local Union. The said amount so
deducted represents a working assessment and/or fines or penalties which I hereby direct to be
paid to said District Council or Local Union, as the case may be to the extent permissible under
applicable law.
This authorization shall be irrevocable except during a period of ten (10) days prior to: (1) one
year from the date ofthe authorization (2) any anniversary of its effective date and/or (3)
termination of the applicable Collective Agreement, whichever occurs sooner.
Members Signature________________ Date________
Date of Local Union
Phone
6
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 11 of 12

NE\vYORK DISTRICT \....OUNCIL OF CARPENTERS
UNION
BENEFIT FUNDS
MANAGEMENT
TRUSTEES
J. Forde
Chairman
Stuart R. GraBois
Executive Director
TRUSTEES
Kevin O'Callaghan
Co-Chairman
Peter Thomassen
Alfred G. Gerosa
Denis Sheil
395 Hudson Street
George Greco
Lawrence D'Erri<.:o
New York, N.Y. 10014
David T. Meberg
John E. Greaney
Charles Harkin
Telephone: (212) 366-7300
Fax: (212) 366-7444
Paul O'Brien
Joseph Olivieri
May 14, 2009
Dear Member,
On advise of Counsel, the Trustees are releasing this Vacation Check. Please be advised that the
Trustees remain concerned about participants working for cash and the resulting loss of revenue to
the Funds. The Trustees are committed to combating these practices and will soon be communicating
measures that they believe will effectively address these concerns.
Sincerely,
Board of Trustees

7
Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 12 of 12