Feds indict ex-labor chief Tyrone Freeman

Tyrone Ricky Freeman, who used to be president of Service Employees International Union Local 6434 — that's the United Long-Term Care workers union — was indicted Tuesday afternoon by a federal grand jury on charges of embezzling tens of thousands of dollars from the union that represents tens of thousands of home healthcare workers. More from the US Attorney's office:

Freeman, 42, who is currently residing in Pittsburgh, Pennsylvania, was charged with four counts of mail fraud, seven counts of embezzlement and/or theft of labor union assets, one count of making a false statement to a federally insured financial institution, and three counts of subscribing to a false tax return.

The mail fraud charges and four of the embezzlement charges relate to a scheme in which Freeman allegedly pilfered money from Local 6434 by diverting reimbursement payments from a public-sector union that had close ties to the SEIU local. The indictment alleges that Freeman collected $2,500 per month from Local 6434 and the California United Homecare Workers (CUHW), which was established in 2005 by SEIU and the American Federation of State, County, and Municipal Employees to represent public sector employees working in the homecare industry in California.

“From in or about January 2007 through on or about August 22, 2008, defendant Freeman concealed from the Local 6434 Executive Board and the CUHW Executive Board that, through the scheme, defendant Freeman was receiving payments of $2,500 per month in addition to the regular salary that he received from Local 6434,” according to the indictment....

Two of the embezzlement charges stem from Freeman allegedly stealing money from Local 6434 by routing funds through another entity closely aligned with the union – the Long Term Care Housing Corporation (LTCHC), which was a not-for-profit corporation organized in 2004 for the purpose of developing affordable housing for members of Local 6434. The indictment alleges that Freeman took nearly $17,000 from Local 6434 in June 2008 by requesting the Local 6434 Executive Board to make payments to LTCHC without disclosing to the Executive Board that Freeman would then divert those funds to himself.

According to the feds, each count of mail fraud and making a false statement carries a maximum sentence of 30 years in federal prison. Each count of embezzlement and/or theft of labor union assets and subscribing to a false tax return carries up to ten years. Freeman has agreed to appear for an arraignment in United States District Court on September 24, the US Attorney statement says.

Previously on LA Observed:
Tyrone Freeman banned for life by SEIU
Tyrone Freeman steps aside
Tyrone Freeman, big spender

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