Two ex-Boilermakers to plead guilty in $20M embezzlement case involving KC union
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- Two former Boilermakers plan guilty pleas in a $20M RICO case.
- Indictment says funds went to no‑show salaries, tuition, rent, travel, loans.
- Seven former executives charged; one from this indictment pleaded and awaits sentencing.
Two former Boilermakers union members set to go to trial in May on federal racketeering conspiracy charges have filed notice that they intend to change their “not guilty” pleas.
Warren Fairley — who took over for a short stint as president of the Kansas City-based union in 2023 after its leaders ousted longtime leader Newton Jones — and Jones’ son, Cullen, notified the U.S. District Court in Kansas City, Kansas, last week of their decisions.
A change-of-plea hearing for both men is scheduled for March 16.
The two are among seven former union executives and employees indicted in August 2024 for conspiracy to commit offenses under the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as other felonies. They’re accused of scheming to steal $20 million in union funds for personal gain.
The money allegedly went toward salary and benefits for jobs they didn’t show up for, tuition, rent, luxury international travel, meals, vacation payouts and unauthorized loans, the Justice Department said.
A federal grand jury returned the 57-count indictment following an investigation by the FBI Kansas City field office and the U.S. Department of Labor.
Fairley faces one count of racketeering conspiracy and seven counts of embezzlement from a labor organization and aiding and abetting. Cullen Jones is charged with one count of racketeering conspiracy; two counts of embezzlement from a labor organization and aiding and abetting; one count of health care fraud conspiracy and aiding and abetting; and one count of theft in connection with health care and aiding and abetting.
Fairley’s attorney, J.R. Hobbs, declined to comment on the change-of-plea decision. Cullen Jones’ attorney, Jackson Hobbs, did not respond Sunday to a request for comment.
In addition to Fairley and Cullen Jones, the others charged in the case were Newton Jones and his wife, Kateryna Jones, all of Chapel Hill, North Carolina; former International Secretary-Treasurer William Creeden, of Kearney, Missouri; former International Vice President Lawrence McManamon, of Rocky River, Ohio; and Kathy Stapp, former International Secretary-Treasurer, of Shawnee.
Stapp pleaded guilty in December 2024 to one count of racketeering conspiracy. As part of her plea agreement, the government dropped the 49 remaining counts against her and agreed not to recommend a fine or restitution.
Her sentencing was set to take place on Tuesday but has been continued until July 7.
She faces a maximum sentence of 20 years in prison, three years of supervised release and a $250,000 fine. Federal law also says that if any person derived financial gain or loss because of the offense, the defendant may be fined twice the amount of that gain or loss.
The International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers has about 44,000 members who fabricate and maintain steam boilers and engines for industrial uses in heavy manufacturing, shipbuilding, utility, rail, metal work and construction industries in the United States and Canada.
The union represents members in collective bargaining with employers throughout the United States and Canada. Its headquarters was in Kansas City, Kansas, for decades, but relocated several years ago to Kansas City.
The Star investigated the Boilermakers in 2012, finding that Jones and other executives were living the good life. Jones’ salary and business expenses totaled more than $607,000, which put him above the presidents of the biggest unions in the country. The newspaper also found that several of Jones’ family members and relatives of other officers were earning hefty union salaries as well.
A follow-up story in 2017 found that little had changed. Six-figure salaries were still common for officers and their relatives, as were fine dining, stays in posh hotels and expensive hunting retreats.
Cars were still given as parting gifts for retired employees, and hundreds of thousands of dollars continued to be spent on promotional events and videos — all while membership continued its downward spiral and the union’s pension fund struggled to stay afloat.
Turmoil that had been brewing within the union’s leadership ranks hit the public radar when the union’s executive council voted to remove Jones as international president in June 2023, accusing him of misusing union funds for personal gain. Among the allegations was that Jones was funneling large sums of money to his Ukrainian wife for work she never performed.
That led to a monthslong court battle over who controlled the union.
In August 2023, a federal judge upheld the union executives’ decision to remove Jones as president and replace him with Fairley, who had recently retired as an international vice president.
Fairley’s reign as president was short-lived. After he was indicted, Fairley announced his retirement as president and was replaced by Timothy Simmons, then one of the union’s five international vice presidents.
Another former union official awaits sentencing in a separate racketeering case filed in May 2024.
Tyler Brown pleaded guilty in May 2024 to one count of racketeering conspiracy. Brown, who served as the union’s chief of staff and as special assistant to Jones, was accused of scheming with “others known and unknown” to steal from the union. His sentencing is scheduled for the same time as Stapp’s in July.
This story was originally published March 9, 2026 at 5:30 AM.
