Jim McGough

Member of Laborers for Justice & Democracy-Local

"The Proof Is In The Pudding"

I told 225 that if they are serious about informing their members, they will request from Sherman Carmell a copy ofthe brief he filed on behalf of the Chicago Federation of Labor saying that the criminal mail fraud statues can not be used against Palumbo . Inc to recover monies it cheated the Laborers pension and welfare funds out of. That brief did no favors for union members and protected corrupt union officials who do not enforce collective bargaining agreements.

Sherman said he felt like a traitor and a Judas filing the brief but did it anyway. Some attorneys will do anything for money.

Sherman Carmell was defense counsel for John Serpico in the 1985 Presidential Crime Commission hearings. John Serpico was forced out of LIUNA because he was proven to be a member of organized crime. John Serpico, who appears on the Chicago Crime Commission chart of the Chicago Outfit, will be indicted soon for his role in giving a bribe to Capitol Bank

He will probably testify against Coia in return for leniency. I will have the Capitol Bank Case up soon. Defendant A (Serpico) gave Capitol Bank in Chicago the Union's pension and welfare fund in return for a below market interest rate mortgage loan. Last fall(1996) Capitol Bank pled guilty to the federal indictment, paid an $800,000 fine, and agreed to cooperate with authorities. Serpico and my high school classmate "Johnny Boy" D'Arco were going to finance the proposed addition to Amalgamated Bank (The "Teamster Bank" where John Daley was vice president) but the deal went south and the addition was not built.

Sherman Carmell, known affectionately in law enforcement circles as "Scumbag", was accused of legal malpractice in the Teamster RICO suit, Local 705 v. Ligurotis DC NIL 95 C 0828, 2/27/96. The insurance companies paid $13.5 million.

The RICO suit pointed to a conflict of interest scheme involving Ligurotis and Sherman Carmell, the general counsel of the pension and health funds. Carmell, "actually facilitated and implemented Ligurotis' looting schemes to the detriment of the funds" the suit stated. See Mike Bologna's excellent report in the BNA Daily Labor Report attached.

Sherman Carmell was counsel to Bruno Caruso in his election campaign. He reneged on his promise to me to provide copies of Coia's depositions he had in return for Coia's motion for reconsideration of the Election officer's decision to require release of the LIUNA Draft RICO complaint.

In Coia's motion Coia said the U.S. DOJ considered Bruno Caruso to be a member of organized crime, an issue Coia never raised in the election campaign. Carmell never gave me Coia's depositions and threatened legal consequences if I didn't return copies of the transcripts of the Chicago District Council's Trusteeship hearings I got via e-mail from the court reporter.

Sherman Carmell does not want the members of the Laborers union to know anything about the District Council despite the fact that our dues pay his fees and the salaries of the District Council Officers., For local 225 to retain Sherman Carmell as legal defense counsel in its trusteeship hearings does not say much about its judgement.

If John Galioto is innocent and believes in protecting the interests of the union and its members, he will ask Sherman Carmell for

(1) a copy of his brief on behalf of the Chicago Federation of Labor,

(2) a copy of all the documents involved in Local 705 v. Ligurotis ,

(3) and copies of all documents involved in Serpico's law suit against the International wherein Carmell represented LIUNA locals 1,2, 5, 1006 and 225 in their attempts to have the Jan.18,1995 emergency amendments declared unconstitutional under the theory the threatened RICO suit did not constitute an emergency.

The "Emergency" amendments created the Ethics and Disciplinary Procedure, the process and mechanism for removing the influence of organized crime from LIUNA without meeting the higher burden of proof required under civil and criminal law. They were also passed as a defense to the immediate injunctive relief sought in the RICO suit, Coia's ouster etc.

Having paid Sherman Carmell's legal fees in the suit, as the client local 225 has every right to demand from Carmell a copy of everything in the file except his legal notes. I will publish everything free of charge on the internet if John Galioto gives me the documents. The proof is in the pudding. John Galioto says he is innocent. Let him demonstrate his innocence at the same time he educates his members............................."


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