DAN HERBECK; News Staff Reporter
October 28, 1997
As president of the Laborers International
Union of North America, Arthur A. Coia worked closely with a watchdog
group and federal prosecutors in a huge effort to remove organized
crime figures from Local 210 and other union locals throughout
More than 100 officials in the laborers union,
including 28 in Buffalo, have been accused of consorting with
But now, the watchdog group -- and the U.S.
Justice Department -- are turning their attention to Coia.
Coia's alleged ties to organized crime are
under scrutiny by in-house investigators for the union, and also
by federal agencies, including the FBI and Labor Department, union
and law enforcement sources confirmed Monday.
The in-house probe is being conducted by
the inspector general's office of the international.
The federal investigation is being conducted
by agents in several cities, including Buffalo. The investigations
could lead to criminal charges and/or Coia's losing his job.
"(Coia) has already been questioned
and deposed several times. They've been looking at him, just as
they looked at the others. . . . They're going after him,"
said one source familiar with the inspector general's investigation.
Coia himself expects to be charged by the
A friend and political supporter of President
Clinton, Coia could not be reached Monday. But his office in Washington
sent The Buffalo News a copy of a letter in which Coia says he
expects to be charged by the union with ethical violations, but
denies any wrongdoing.
"I am innocent of those charges. . .
. There is no truth in the allegations," Coia said in the
letter to other union leaders. "I must answer a question:
Do I believe in this reform, now that I am its target? . . . The
answer must be yes."
The inquiries into Coia and his alleged mob
ties were "a long time in coming," said Marc Panepinto,
a Local 210 member who heads a group of laborers who are unhappy
with recent developments at the Buffalo local.
"If the international is going to clean
house, President Coia should be held to the same scrutiny that
was focused on 28 of our people here in Local 210," said
Panepinto, chairman of a group called the
Laborers Information Coalition. "I don't think there's any
question that he has had some relationships in the past with some
A number of angry Local 210 members have
claimed in the past that Coia was receiving special treatment
in the investigation being conducted by the Laborers' Inspector
General, W. Douglas Gow.
In court papers filed in 1995, Local 210
charged that the Justice Department had strong suspicions about
According to the court papers, Justice Department
lawyers described Coia in that year as someone who had been "associating
with members of the New England La Cosa Nostra family for a substantial
period of time, and had received kickbacks in connection with
the purchase of group insurance for (union) members."
In July 1996, former Local 210 business manager
Ronald Fino told a congressional panel that Coia was controlled
by the Mafia.
Fino, who left Buffalo and became an FBI
informant in early 1989, wore a black hood to protect his identity
during the hearing.
Fino testified that Coia once told him he
needed to get permission from Buffalo Mafia leaders before Fino
could run for vice president of the international.
At the same hearing, a Republican congressman
said Coia arranged for the union to donate $ 200,000 to the Democratic
National Committee and $ 80,000 to the Clinton presidential campaign
Meanwhile, the congressman said Coia gave
the president a $ 500 golf club and other gifts, including a basketball
autographed by Larry Bird.
After the hearing, Coia issued a statement
that scoffed at Fino's testimony and the allegations of wrongdoing.
Some Local 210 officials claim Coia made
a deal with the federal government, saving his own job by appointing
an inspector general to attack union leaders in Buffalo and other
Following years of allegations that Buffalo's
local is controlled by the Mafia, Gow filed charges last year
accusing 28 Local 210 officials of breaking union rules by belonging
to the Mafia or associating with mob figures.
The group of those charged included alleged
mob leaders Joseph Todaro Jr. and Leonard F. Falzone.
Sixteen of the 28 were accused of being actual
members of the Buffalo Mafia family. The other 12 were accused
of associating with mobsters.
The international said it wants to remove
the men from the union as part of an effort to clean up the Laborers,
which has about 700,000 members nationwide.
Todaro, Falzone and four others resigned,
rather than fight the charges at a hearing.
A hearing was held last summer and fall for
the 24 others who were charged. No decision has been issued yet
on their cases, Robert Luskin, prosecutor for the inspector general's
office, said Monday.
"I'm against the whole arrangement with
the government in the first place," said Richard Lipsitz,
a Local 210 attorney. "But since Mr. Coia is one of the authors
of it, he should be subjected to the same (investigations) as
Gabe Rosetti, a veteran laborers union official
from Syracuse, has been running the Buffalo local since early
1996. His actions are closely monitored by federal prosecutors.