From: William S.

Lebo

xxxx xxxx Blvd.

xxxxxx, N.Y. xxx10

Dated: June 1, 2011

Via Express Mail

To: Honorable Richard M. Berman

Unites States District Judge

United States District Court

For the Southern District of New York

500 Pearl St., Courtroom 21B

New York, New York 10007-1312

Re: United States v. District Council of New York City and Vicinity of the United
Brotherhood of Carpenters and Joiners of America, et al. (Index No. 90 Civ. 5722
(RMB): Objection to the Restructuring Plan Submission by the UBC.

Dear Judge Berman,

I write in regard to and in opposition of the UBC Restructuring Plan for the New York City District
Council of Carpenters (NYCDCC). I find that there are many unsaid issues in Kenneth Conboys
submission to the Court. I believe the UBC has skirted these issues purposely, and while my concerns
may appear Delphic in nature, these issues will disenfranchise a large majority of the membership of the
NYCDCC from fair and equitable access to jobs from the Out of Work List (OWL), that they should be
entitled to. This is no less than discrimination to the membership of the locals who don’t work strictly for
companies, but get their work from the OWL.

Furthermore, the decreasing of size, of jurisdictional areas that the UBC proposes, surely will result in
less jobs being available to the members of the local unions affected, and a decrease in the work hours
that will go into the funds at a time when the NYCDCC welfare fund needs every hour it get. This action
can and will cause harm and possibly irreparable harm to the welfare fund. If the supervisors of the
District council are willing to take these actions, they are in breach of their fiduciary duty to the funds,
and to the membership. It is an irresponsible act. I believe that the UBC supervisors, of the NYCDCC,
who come from New Jersey based locals, realize that New Jersey would benefit by the absorption of the
jurisdictional work area of the dock builders, and this is why they are pushing this issue. Also, there
needs to be an objective study done to find if these jurisdictional areas the UBC intends to strip from the
NYCDCC are better served by the locals or councils the will be absorbing them, I know they are not. This
study should compare the market share percentage of the intended recipient locals to the market share

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percentage of the NYCDCC locals affected, in those areas. There are unscrupulous, underlying reasons
for this and it must not be allowed.

This is what was left unsaid:

1. How will the OWL operate in regards to these “specialties”?

2. Will the “specialty” workers be broken down to specific aspects of the trade? (Such as drywall
hangers and framers,).

3. How will these “specialties” be determined?

4. Will these specialty workers be allowed to overlap other specialties? (Such as will a sheet rocker
be allowed to frame or put up ceiling grid?) Because this is what a carpenter could do.

5. What will happen to the “carpenters” left in the non “specialty” locals?

6. How are the “carpenters” who are in the non “specialty” locals to get work?

7. If they are broken down to these aspects of the trade will there be different pay scales for these
“specialties”?

8. What happens to members who have all aspects of the trade (drywall, heavy construction, etc.)?

9. Will all these “specialty” workers still be called carpenters?

10. When a contractor calls the OWL for a “specialty” will he/she only get a worker from Lu 395 or
the heavy construction local?

There are 3 reasons that the UBC would want to create local 395 as an Interior Systems specialty local
and a heavy construction local that will consist of members who are already working for companies.

1. These specialties will be broken down and wages will be set to the specialty.

2. The UBC will ask that the contractors be allowed to draw or request through the OWL from Lu
395 and the Heavy Construction local, thereby disenfranchising the rest of the membership from
a fair and equitable chance to work.

3. To create company locals whose memberships will be the largest in the NYCDCC and will
control the council thereby the contractors will control the council.

This bastardization of our noble trade is a disgrace to every hard working real carpenter in our union and
to those who came before us.

Unions were created to protect their members from abuses by the people they work for and to bargain
collectively. This will be destroyed by this plan.

Kenneth Conboy submits as Exhibit A: Ten Years of Court–Supervised Reform: A Chronicle and
Assessment.
In it I find a number of issues I find interesting and troublesome, in that they lead me to question, the
legitimacy, honesty, and underlying intentions of the UBC’s General President.

The following are issues in Exhibit A, I find in conflict with the UBCs Restructuring Plan submission. I’ll
explain them by paragraph:

P14 States: For many years the Genovese Crime Family used the District Council to create and maintain a
drywall cartel.

We are now waiting for our contracts to be negotiated. Kenneth Conboy states; in section 4, that the UBC
is now working with the Wall and Ceiling Association to negotiate our new contracts. This is the very
same association that had Joseph Olivieri as its president. I believe, this to be the very same “cartel” that
was mentioned in P14, with different players. Mr. Conboy states that, the rest of the contracts “will almost
certainly mirror” this one. What chance then, does the membership have of getting a fair and equitable
deal?

P12 states: The Genovese Crime Family controlled the District Council through its capo Vincent
DiNapoli. According to the FBI Teddy Maritas, District Council president from 1977 to 1981, was a
Genovese Crime Family associate.n29. Eventually, Maritas disappeared. Presumably, he was cooperating
with Federal Prosecutors. Therefore, the mob continued its control over the District Council through
Pascal McGuinness, president from 1982-1991.

P17 States: Organized crime flourished under McGuinness’s presidency…..McGuinness himself allegedly
committed seven of the racketeering acts listed in the Civil Rico Complaint.

P16 States: UBC International placed the District Council under trusteeship. Allegedly with
organized crimes blessing. (Emphasis added).

All these things being said, Paschal McGuinness was still able to be elected to the position of 2nd Vice
President of the UBC International after leaving the NYCDCC. He then moved up to 1st Vice President of
the UBC. McGuinness retired from the UBC office in 1995 allowing Douglas J. McCarron to move up to
that position.

After leaving the UBC, McGuinness was elected to the Building and Construction Trades Department of
the AFL-CIO, which he reportedly gave up due to federal investigations.

So, this is the organization we are affiliated with now, and our UBC General President Douglas J.
McCarron had Paschal McGuinness as his mentor, and predecessor.

UBC President McCarron is not without his own baggage:

General President Douglas J. McCarron was caught up in two scandals while he was on the board of
directors of ULLICO. (Union Labor Life Insurance Company).

The first ULLICO scandal occurred in 2002. In June of 1998 the NYCDCC hired Zenith Administrators,
a ULLICO subsidiary, to oversee the Councils 1.7 billion dollar pension and benefit funds. In 2002,
Federal prosecutors and the Department of Labor investigated the company for allegedly obtaining the
company through McCarron’s influence. The DOL sued ULLICO and Zenith Administrators for

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mismanagement of the Councils funds, although General President McCarron was not charged with any
crimes.

I have to wonder why he wasn’t charged.

McCarron was caught up in a second scandal in 2003 involving ULLICO. ULLICO President, chairman,
and Executive Officer, Robert Georgine, had instituted a stock trading scheme whereby ULLICO board
members, most of whom were union officials, could purchase the company’s stock at a low price. Since
ULLICO was a privately held company, the Board members themselves set the stock price. Once they had
set the price higher they could sell their stock at a large profit. The stock repurchase scheme was
uncovered, and McCarron and other directors were accused of breaching their fiduciary duty and breaking
Federal and State laws. McCarron returned his profits and resigned from ULLICO.

But again was not charged, why?

This establishes General President Douglas J. McCarron’s corrupt profile. This is who is running our
union, and this is who is proposing this restructuring plan and these bylaws.

In reference to the memberships getting their work through the NYCDCC’s OWL.

P13 in the second sentence states: Because construction work is usually short term, carpenters often
depend upon their union to get them jobs.

This is an extremely true statement, the actions of the Restructuring Plan and the fact that the UBC wants
to do away with the 50-50 rule will disenfranchise a large percentage of the membership from getting
jobs, in a fair and equitable manner, and will cause irreparable harm to those members. Those members
will not be able to get work, the financial harm will be extreme, and they will not have medical benefits
for themselves and their families. I am talking about thousands of dues paying members.

P78 states: The goal of the 1994 Rico suit, that Organized Crimes influence be purged from the District
Council has clearly not been achieved. The alliance between labor racketeers and corrupt union officials
has proved resilient and adaptable. As long as rank and file members see or perceive “business as usual”
in the District Council, they will be cynical about prospects for reform and therefore unwilling to stand up
against the old regime.

A perfect example of this could be seen at the last meeting of local 157, at which they held nominations
for their officers. Many of the nominated members were indeed a part of the old regime and if elected
business as usual will be the word of the day.

Membership involvement has been at an, all time low, in our union. The Review Officer Mr. Walsh has
commented time and time again that the attendance at local union meetings is dismal in comparison to the
past. There are simple reasons for this. The membership believes that there is nothing they can do to
change things. They have seen their locals arbitrarily wiped out, the rules they have worked by erased and
changed without so much as asking them what they think. They have gone to union meetings, where the
officers of their locals had absolutely no information for them as to what was happening, and no answers
to their questions. Basically they have no voice in the union that they pay dues and exorbitant assessments
to, and which holds the very future of their livelihoods in its hands.
The members of our union are all well aware of General President McCarron’s attitude, that the
membership is incapable of making its own decisions, and that he believes that he knows best what
direction the union should go. Bottom line is the Carpenters union is a dictatorship, run by a man who has
been involved with scandals and corrupt union officials. Under the UBC Constitution, the General
President has been given the power, by General President McCarron’s rubber stamp delegates, to dissolve
locals and councils at his discretion. If a local or council raises questions about his actions he simply
dissolves them, and either creates a new union body and appoints officers who will not question him, or
merge them with a union body that is already marching to his drummer.

We have seen the corruption that rubber stamp delegate bodies allowed here in the NYCDCC. This Court
has commented on it, as has Mr. Walsh and Kenneth Conboy when he was the IRO. The UBC
Constitution under section 6A, allows the General President to dissolve, and or merge local unions or
councils at his discretion. The UBC Constitution was amended over the years to allow things like this
by the same type of rubber stamp delegate body that allowed corruption to flourish here in the NYCDCC.

This concludes my comments in reference to Exhibit A.

In a Special Interim Report of the Investigations and Review Officer (SIR) of the
NYCDCC under the Consent Decree 90 Civ. 5722 (CSH) dated May 30, 1997, on page22, under
section II. D. 2nd ¶, the IRO at the time who was Kenneth Conboy states;

“The union now has the singular opportunity to wrest itself from the grasp of racketeers who, aided and
abetted by corrupt union officers, business agents, and stewards, have drained its life blood for decades. It
is my considered opinion and advise that the restructuring plan can help accomplish this goal, and
presents a well-considered system of administration and governance, which is consistent with the terms
and objectives of the Consent Decree.”

Given the present situation, IRO Conboy was clearly wrong, and the 1997 Restructuring Plan obviously
did not stop the pervasive, insidious, and unrelenting corruption and racketeering that plagues the
NYCDCC.

In the SIR, on page 25, under section III. B. IRO Conboy discusses abuses by business agents who would
take payments from contractors to insure that the contractor’s jobs would run smoothly. ¶s 4 and 5 of this
section state;

“This traditional autonomous system has been exploited by racketeers for decades. In that time, the
great majority of business agents have not been supervised nor been held accountable by the officers of
the District Council.”

“The restructuring plan would abolish this system. The centralization and computerization of job
referrals and appointment of business agents, with redefined responsibilities, to closely-supervised
positions with the District Council - - subject to the oversight of the executive secretary/treasurer, the
executive board, and ultimately the rank and file through delegates, - - is the aspect of restructuring most
feared by the racketeers. Their power to use the Carpenters Union as a tool of their rackets will be
drastically reduced if not eliminated. Locals will no longer serve as fiefdoms of the mob lords, and
business agents their vassals.”

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Again, given the present situation this clearly failed.

Why did the 1997 restructuring plan fail, and why will this one fail as well?

I believe the reason is that, no one seems to take into consideration the whole picture of where the
corruption comes from. The focus is, and in a large part should be, on the corruption and greed of union
officials. But these union officials are getting their payoffs from whom? The answer is the contractors. It
is simply dirty on both sides of the fence. The greed and corruption is, as much on the contractor’s side,
as it is on the union’s side. Who are the contractors and what are their affiliations? The union has no
control over this. Joseph Olivieri the ex- president of the Wall and Ceiling Association was indicted and
found guilty of perjury. An article in Newsday by Brian Kates dated October 28, 2010, called Joseph
Olivieri a Genovese soldier and the mobs go to guy in union construction.

Now Mr. Conboy, as the attorney for the UBC, is asking this Court to allow the UBC to give the
contractors of the Wall and Ceiling Association, the same association that was run by this reported
Genovese soldier, a Specialty System Local of their very own, and to revamp the OWL rules to suit this
same Association that was run by this reported Genovese soldier.

This all being said, it seems to me something’s very wrong here. If I add this up, a corrupt union official
like McGuinness. A General President, like McCarron, who took over for McGuinness, and who was
caught in two corrupt scandals and had to repay for one of them. The head of NYC’s largest contractor
association as a reported Genovese soldier. An ex-Federal Judge, as an attorney for a union, that was the
IRO to in the past, asking for this Court to give concessions to the very association that was headed by
this reported Genovese soldier, even though, the very reason this Court is involved, is to stop mob
influence in the NYCDCC. This whole situation is as wrong as it gets.

The 50-50 manpower rule set by the Court is the only way many members get a chance to work, doing
away with it would be discriminatory to those members, and they are in the thousands, and it would
disenfranchise the from a fair and equitable way to attain work.

The Court has the chance at this pivotal point in our unions insidious history to set things right, and this
restructuring plan, the bylaw draft and the move by the UBC to do away with the 50-50 rule is not the
way to set things right. The membership is at a point of apathy I’ve never seen in my 26 years in this
union. Most have all but given up any hope of real reform and change to put the governance and direction
of the union in its hands. The UBC is as corrupt as the NYCDCC ever was and, it seems to be calling all
the shots, the membership sees this.

The only saving grace seems to be the Review Officer Dennis Walsh, who has an unprecedented amount
of support from the membership. The IRO Conboy never had this type of support.

However, Mr. Walsh can only do so much, and is bound by the Consent Decree to focus only on
corruption and democratic furtherance. He cannot interfere with the merging of locals unless it would
allow corruption to flourish, or the negotiation of contracts by the UBC unless the finalized contracts
would also allow corruption to flourish. This is understood, but, this Court has the power to overrule the
UBCs Restructuring Plan, Bylaws, and OWL rules if it believes they are not sufficient to end the history
of corruption and mob influence in the NYCDCC and or if they are not in the best interest of the
membership.
For the reasons I have stated herein, I vehemently object to the UBC submission of the Restructuring Plan
for the NYCDCC.

I object to reducing the carpenter trade to specialties.

I object to the creation of lu395 and the Heavy construction local as a specialty/ company locals.

I object to the decreasing of the jurisdictional areas of the locals affected by this plan.

I object to the ending of the 50-50 manpower rule.

I object to the lack of information disseminated by the UBC to the membership.

I object to a corrupt UBC General President and his cronies negotiating our contracts, and believe the
negotiations and finalization should wait until such time as elected officials of the NYCDCC can be
installed.

I pray this Court takes my concerns and objections into account when it decides these issues.

Respectfully Submitted,

William S. Lebo

xxxx Wesxxxx xxx.

xxxx, N.Y. xxxx

Cellphone: xxxxxxxx

Email: bslebo@gmail.com

Cc: (via email)

Kenneth Conboy

Frank Spencer

Benjamin Torrance

Dennis Walsh

Michael Bilello