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Feds Investigate Payments to Ex-LA Labor Leader

SEIU paid disgraced Alejandro Stephens big consulting fee

By Kevin Spak,  Newser Staff

Posted Sep 28, 2010 2:07 PM CDT

(Newser) – Federal authorities are investigating $150,000 in consulting fees that LA’s powerful Service Employees International Union paid to its disgraced ex-leader, the LA Times reports. The US Attorney last year considered using the payment as the basis for an embezzlement charge against that leader, one Alejandro Stephens, but decided against it. Now, Stephens is headed to prison on other charges, but authorities are still questioning SEIU officials about the payments agreed to by then-President Andy Stern.

Investigators want to know if the SEIU ever expected Stephens to do anything for the money. A spokeswoman for the union says that Stephens “violated the terms of his … agreement with the union, and we are aggressively seeking the return of all payments made to him.” She added, “Alejandro Stephens has had no role or involvement with the union for several years.” Stephens says he did the work required under the 2007 contract, and says the union still owes him $75,000.

Security guards march through the financial district of San Francisco in this Sept. 25, 2007 file photo.
Security guards march through the financial district of San Francisco in this Sept. 25, 2007 file photo.   (AP Photo/Ben Margot)
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COMMENTS
Showing 3 of 10 comments
LoginsSuck
Sep 29, 2010 10:15 AM CDT
We all should be upset by the corruption and at the individuals responsible and not at which "side" the individuals who did the deed are with or support. Each "side" has corruption issues, but its the individuals and not the whole "side" that is corrupt. Its the individuals and their corruption that both sides should be against and work together to stop. Efforts spent pointing the finger and blaming the other side are a waste and pull attention away from the initial corruption. The issue is deflected and while the arguing about which "side" is wrong is going on, the people who did this are left alone. Hold everyone accountable who is involved and not the "sides". Individuals will soon learn that neither side will allow corruption.
SilenceDogood
Sep 28, 2010 8:26 PM CDT
Guys, Guys, remember the double standard; Unions = OK, Businesses and Conservatives = Not OK.
whizzjef
Sep 28, 2010 7:11 PM CDT
I am shocked that nobody blamed this on G. W. Bush. This is the mother of all mistakes generated by federal authorities to shame hardworking leaders of the unions. What next, ACORN, NAACP, Medicaid, Nancy Pelosi, Barney Frank?
 

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