The Bureau of National Affairs’
Construction Labor Report (CLR) Nov. 1 reported that a federal jury in northern Indiana has found two Indiana Regional Council of Carpenters Local 1005 officials guilty of embezzling more than $140,000 from a union training program.
According to the CLR, between June 1998 and May 2003, former council head Paul Hernandez and training program leader Kenneth Castaldi created a secret bank account and wrote checks to themselves, allegedly embezzling more than $19,000 from the Northwest Indiana Carpenters Joint Apprenticeship Committee. CLR also reported that Hernandez allegedly stole nearly $17,000 from the union’s training program during the five-year scheme.
An article in the May, 25, 2005, edition of the Northwest Indiana Times reported that federal prosecutors alleged that Hernandez received a $203,000 grant from the Indiana Department of Commerce to hire scaffolding erection instructors, but instead conducted the training himself despite the fact that he had “taught few if any such classes.”
CLR said Hernandez and Castaldi will be sentenced in January and could each receive up to 10 years in prison.