Leaders Of Truckers` Union Sue Former Officials

October 28, 1992|By William B. Crawford Jr.

Reform leaders of the independent Chicago Truck Drivers Union filed a federal civil racketeering complaint Tuesday against two of the local`s previous top officials, charging them with cronyism, paying themselves inflated salaries and buying $1 million in coal and oil stock that now is worthless.

The lawsuit filed by the incumbent leaders of the small West Side trucking local accuses Paul Glover, the union`s former vice president and general counsel, of padding union payrolls with close associates, paying exorbitant commissions to a broker who handled union investments and unfairly enriching himself by simultaneously drawing salaries from the independent local and two affiliate locals.

FOR THE RECORD - Additional material published Nov. 20, 1992:
Corrections and clarifications.
A story in the Oct. 28 Business section reported that Paul Glover, former president of the independent Chicago Truck Drivers Union, and Matt Perovic, a former trustee, who had sued the union, had been named as counter-defendants in the same suit. In fact, only Glover was named as a counter-defendant. The Tribune regrets the error.

In filing the lawsuit, the incumbents, led by George Ossey, the local`s president, issued an accompanying statement in which they asserted Glover had attempted to buy their silence with cash payments and that they had been the

``subject of death threats.``

Brought under the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, the suit contends that Glover hired several people, including LaCoulton Walls, an administrative aide to Mayor Richard Daley, and paid them inflated wages to do union work for which they were unqualified. Walls, an attorney, and Eric Tolar, who was hired as a computer programmer, were placed on the union payroll because Glover ``had an acquaintanceship`` with Walls`

sister, the suit alleges. Tolar is the woman`s brother-in-law, the suit alleges.

The suit, which seeks unspecified damages, was brought against Glover and Matt Perovic, a former union trustee, by Ossey; Vice President Fred Boudreau; Anthony Cullota, the treasurer; and Jack Stewart, a trustee. The four headed a reform ticket that defeated an opposing slate headed by Glover in a landslide June election.

The suit represents the latest twist in a story that has unfolded for more than three years, since the U.S. attorney`s office acknowledged that Glover and John Johnson, the union`s former president who retired in spring, were under investigation by a federal grand jury.

Both men have acknowledged that they are under investigation and that they have declined to appear before the grand jury, citing their 5th Amendment privilege against self-incrimination.

Filed by attorneys Michael J. Kralovec, Terence P. Gillespie and Edward M. Genson, the suit contends that Glover invested $1 million of the union`s pension-fund money in Coalstar, later renamed Omega Gold, an oil and coal company.

The stock, which never traded publicly, ``has no value and will have no value in the future,`` the complaint charges.

In another instance, Glover invested $4.5 million in union funds in the Kemper Investment Portfolio through Susan R. Bennett, a former stockbroker. The suit alleges that the move was ``unsound, imprudent and irresponsible,``

because the union paid a 5 percent deferred sales charge to Bennett, a figure the suit contends was well more than industry standards.

The suit also charges that Glover invested $10 million in union funds in Sierra Capital and $5 million in JMB Corp., again using Bennett as a broker and paying her an $850,000 commission. The suit notes that two weeks ago Bennett filed a federal suit against Glover and Johnson, contending that they forced her to kick back $420,000 of her commissions to them under the threat of ``physical harm and economic harm`` to her and her family.

In their press release, Ossey and the others stated that they ``have been the subject of death threats and have been informed that a certain individual or individuals has solicited the murder of one of them, all in order to stop their attempts to uncover the corruption of the former union leadership.``