Justice not probing AFSCME allegations

Monday, 31 January 2000 13:10 (ET)

Justice not probing AFSCME allegations By MICHAEL KIRKLAND

WASHINGTON, Jan. 31 (UPI) -- The Justice Department is not investigating insurance scam allegations against members of the American Federation of State, County and Municipal Employees, sources told United Press International on Monday.

Officials said that, contrary to published reports, the department will not move unless asked to do so by the Labor Department, which so far has declined to take action. "At the most, we're looking at the (internal AFSCME) report," one official said, "but no one here has begun an investigation."

The allegations, some which are old and have already been in the state courts, have been reported recently by the Wall Street Journal, the New York Times and the Washington Post.

Normally, the allegations would come under the jurisdiction of state and local prosecutors.

An internal AFSCME audit showed that more than $4.5 million in phony insurance claims may have been filed to cover fraud by about 40 of the union's 28,000 local and regional officials, mainly in New York.

In a letter to local and regional officials last week, AFSCME international President Gerald McEntee said the union has a "zero-tolerance policy" for "financial wrongdoing." But he insisted that "many of the press reports significantly overstate the scope of the incidents of wrongdoing and grossly understate the international's sweeping and unprecedented effort to root out any and all improper and illegal acts, and to punish those responsible."

McEntee added: "The problems we have found are not widespread. For us, however, any wrongdoing is intolerable."

The AFSCME president pledged to strip union membership from those responsible and make a vigorous effect to recover the funds.

-- Copyright 2000 by United Press International. All rights reserved.