Monday, March 30, 2020

Union Probe Finds Close Biden Ally Misappropriated Millions

One of Joe Biden's closest labor allies inappropriately siphoned nearly $1 million from a union pension fund as the labor group suffered from a "Systemic misrepresentation in financial reporting," according to an internal probe obtained by the Washington Free Beacon.

According to the 105-page document, the audit has thus far found that Schaitberger and Thomas Miller-Kelly's predecessor as the general secretary-treasurer-illegally earned millions of dollars from the union pension fund over the last two decades.

Kelly's audit also found that the union misreported millions of dollars in union funds while diverting millions of dollars for a purpose unrelated to their original designation.

Schaitberger, who is one of Joe Biden's closest and oldest allies in the labor movement, directed the IAFF to endorse the former vice president during his first campaign rally back in April 2019, making his group the first national union to endorse Biden.

The probe threatens to sow further division in the union.

As part of his probe into the union's finances, Kelly contracted BDO USA, an international auditing agency, to examine IAFF records and asked three separate legal firms to evaluate whether the union pension system is compliant with IRS requirements.

The union already pays Schaitberger roughly $388,000 every year, according to Labor Department records, but Kelly's team found that Schaitberger has collected an additional $5,105 every month from the union's pension system ever since he became the general-president in September 2000.

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