Burlington Trucking Company Executive and Company Sentenced for Illegal Activity Related to International Brotherhood of Teamsters Local 25
JUL 31--Boston, MA Mark R. Trouville, Special Agent in Charge of the U.S. Drug Enforcement Administration in New England; Gordon S. Heddell, Inspector General of the U.S. Department of Labor's Office of Inspector General, Office of Labor Racketeering; James M. Benages, Regional Director of the Employee Benefit Security Administration; Paul F. Evans, Commissioner of the Boston Police Department; and Michael J. Sullivan, United States Attorney announced today that Thomas A. DISILVA, age 63, of 7 Webster Street, Lexington, Massachusetts, was sentenced by U.S. District Judge Douglas P. Woodlock to 5 years' probation, the first year of which is to be served in home confinement with electronic monitoring. Judge Woodlock also ordered DISILVA to pay a $50,000 fine. On April 18, 2003, DISILVA pleaded guilty to a superseding information detailing two illegal schemes in which DISILVA was involved with union officials of International Brotherhood of Teamsters Local 25 ("IBT 25") located in Charlestown, Massachusetts.
At the earlier plea hearing, DISILVA admitted to his participation in a scheme to provide health benefits to IBT Local 25 members who were otherwise ineligible for benefits by submitting false documents to the International Brotherhood of Teamsters Local 25's Health Services and Insurance Plan ("IBT Local 25 HSIP"). DISILVA falsely reported that these individuals were employed by him when, in fact, they were not. Additionally, it is alleged that George Cashman, IBT Local 25's President since 1992, and William Carnes, its Vice President, participated in this scheme and directed benefits from DISILVA's companies to the bogus employees in violation of the Taft-Hartley Act.
DISILVA also pleaded guilty to his participation in a scheme to launder an illegal payment from representatives of Cardinal Health, an Ohio based pharmaceutical distribution company, to Cashman. According to prosecutors, this payment was made in conjunction with the settlement of a pension fund liability that Cardinal owed to the New England Teamsters and Trucking Industry Pension Fund after a lengthy strike at Cardinal's Peabody, Massachusetts facility. According to prosecutors, Cashman solicited the payment from the attorney for Cardinal and a Cardinal executive and directed them to send the money to DISILVA.
In conjunction with DISILVA's plea, HUTCHINSON INDUSTRIES, INC., located at 20 A Street in Burlington, Massachusetts, also pleaded guilty on April 18, 2003, to all counts of a pending indictment which addressed the above-described health benefits scheme. HUTCHINSON is one of several DISILVA owned companies. Judge Woodlock also sentenced HUTCHINSON today to one year of probation as well as a $140,000 fine and a $11,600 special assessment. Additionally, as part of its agreement with the government, HUTCHINSON will pay restitution in the approximate amount of $68,000 to IBT Local 25 HSIP. The investigation is continuing.
The case is being investigated by the U.S. Drug Enforcement Administration; the U.S. Department of Labor's Office of Inspector General, Office of Labor Racketeering; the Boston Police Department; and the Employee Benefit Security Administration.
Press Contact: Anthony J. Pettigrew,