U.S. Attorney Announces Indictment Of Former Union President For Embezzling Union Funds

Preet Bharara, United States Attorney for the Southern District of New York, and Andriana Vamvakas, District Director of the Office of Labor-Management Standards, U.S. Department of Labor (“OLMS”), announced today that a grand jury sitting in White Plains has returned an Indictment charging BRIAN W. SCOTT with embezzlement of union funds, mail fraud, and making false statements to the Department of Labor.

Manhattan U.S. Attorney Preet Bharara said:  “Brian Scott allegedly abused the trust placed in him by the hard-working men and women of Local 503 by stealing the union’s money and spending it on himself.  I thank the Department of Labor’s Office of Labor-Management Standards for their work in this investigation.” 

OLMS District Director Andriana Vamvakas said:  “Embezzlement of union funds doesn’t only violate the law, it also betrays the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets.  We thank U.S. Attorney Bharara’s office for its work on this case and look forward to working again with it and other agencies to root out such corruption.”

The Indictment[1] alleges that SCOTT, the former president of Local 503 of the International Brotherhood of Electrical Workers in Monroe, New York, embezzled more than $63,000 from Local 503 between July 2008 and February 2012.  According to court filings, SCOTT made unauthorized charges to Local 503’s credit cards for personal items such as computers and other electronic devices, and travel, dining, and entertainment expenses.  SCOTT also charged fees for a bail bond to Local 503’s credit card following his arrest on unrelated charges in 2012.  In addition, SCOTT wrote checks to himself from Local 503’s checking account.  SCOTT claimed the checks were reimbursement for a clothing allowance and unused vacation time, neither of which was permitted under Local 503’s policies.

SCOTT, 46, of Miami Beach, Florida, faces a maximum sentence of 20 years in prison on the mail fraud count, five years in prison on the embezzlement count, and one year in prison on the false statement count.

The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the Court.

Mr. Bharara praised the investigative work of the Department of Labor’s Office of Labor-Management Standards.  

This prosecution is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Maurene Comey and James McMahon are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.