Jury selection is in 2nd day in Boilermakers $20 million union racketeering trial
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- Jury selection entered a second day in the Boilermakers $20 million racketeering trial.
- Seven former union members were indicted in August 2024 on RICO and related felony counts.
- Three defendants have pleaded guilty and face sentencing dates in June and July.
Jury selection entered a second day on Tuesday in the federal racketeering conspiracy trial in Kansas City, Kansas, of former Boilermakers executives accused of scheming to steal $20 million in union funds.
Four ex-International Brotherhood of Boilermakers members, including ousted International President Newton Jones, face charges alleging they conspired to embezzle millions that went toward salary and benefits for jobs they didn’t show up for, luxury international travel, meals, vacation payouts and unauthorized loans.
The trial, in the U.S. District Court for the District of Kansas, is expected to last several weeks. The union’s headquarters was in Kansas City, Kansas, for more than a century, but relocated to Kansas City in 2023.
Jones — who was removed from office by his executive council in 2023 for allegedly misusing union funds — and his wife, Kateryna; former International Secretary-Treasurer William Creeden; and former International Vice President Lawrence McManamon are among seven former union members indicted in August 2024 for conspiracy to commit offenses under the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as other felonies.
A federal grand jury returned the indictment following an investigation by the FBI Kansas City field office and the U.S. Department of Labor.
Two others who were charged in the case pleaded guilty in March to one count of racketeering conspiracy and one count of embezzlement from a labor organization.
Warren Fairley — who took over for a short stint as Boilermakers president in 2023 after Jones was removed — and Jones’ son, Cullen Jones, are scheduled for sentencing on June 30.
The racketeering conspiracy count carries a maximum penalty of 20 years in prison, three years of supervised release and a $250,000 fine. The embezzlement count has a maximum penalty of five years in prison, three years of supervised release and a $10,000 fine.
The other defendant, Kathy Stapp — the union’s former human resources director-turned International Secretary-Treasurer — pleaded guilty in December 2024 to one count of racketeering conspiracy.
She is scheduled to be sentenced July 7.
The government has five prosecutors on the case, according to court records. Two are from the Justice Department in Washington, D.C., including Vincent Falvo, who is with the DOJ’s Violent Crime and Racketeering Section.
Court dockets show there are 12 attorneys representing the four defendants.
What does a boilermaker do?
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.
Many of the details in the government’s case align with those revealed in a 2012 Kansas City Star investigation, which found that Jones and other executives were living the good life. At that time, Jones’ salary and business expenses totaled more than $607,000, which put him above the presidents of the biggest unions in the country.
The Star also reported that several of Jones’ family members and relatives of other officers were earning hefty union salaries as well.
Jones strongly denied the allegations at the time, calling The Star’s story “sensationalized,” “distorted” and “contrived.”
A follow-up investigation by The Star 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.
And the union continued to give high-dollar vehicles as parting gifts for retired employees and spent hundreds of thousands of dollars on promotional events and videos — all while membership continued its downward spiral and the union’s pension fund struggled to stay afloat.
