Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Wasilla man has been sentenced in federal court for embezzling approximately $80,000, over the course of nearly five years, from the Alaska Chapter of the Association of Civilian Technicians labor union.
Timothy Carrol Smith, 49, of Wasilla, was sentenced on Friday, Oct. 19, 2018, by Chief U.S. District Judge Timothy M. Burgess, to serve eight months in prison, followed by three years of supervised release. Smith was also ordered to pay $80,990.61 in restitution to ACT Chapter 84. Smith previously pleaded guilty in April 2018 to one count of making a false statement.
According to court documents, from 2007 to 2015, Smith held volunteer positions as secretary-treasurer and then president, for Alaska Chapter 84 of the Association of Civilian Technicians (ACT) at Joint Base Elmendorf-Richardson, a labor union representing approximately 70 dues-paying members who are Army National Guard civilian technicians throughout Alaska.
During that time, Smith was responsible for managing the organization’s funds, including making travel arrangements, co-signing checks, paying bills, and meeting reporting requirements. Specifically, Smith was responsible for submitting annual financial disclosure reports to the Department of Labor Management and Standards, regarding how the organization’s funds were disbursed. Smith filed the required Form LM-3 on behalf of ACT Chapter 84 for the fiscal years ending 2011, 2012, 2013, and 2014.
Over the course of nearly five years, beginning in January 2011, Smith knowingly and willfully embezzled, stole, and illegally converted union funds to his own personal use in a total amount of $80,990.61, by conducting hundreds of unauthorized transactions. Smith then concealed his embezzlement by filing false reports to the Department of Labor by omitting the full amount of money he was receiving from the union.
For example, between January 2011 and September 2015, Smith used ACT Chapter 84 ATM card to make over 200 unauthorized cash withdrawals totaling $59,401.85. Between December 2010 and September 2015, Smith used an ACT Chapter 84 debit card to pay for over 300 unauthorized transactions totaling $20,988.76. In December 2013, Smith wrote a check payable to “cash” in the amount of $600 and cashed the check for an unauthorized expense. Smith used the stolen funds to pay personal expenses rather than ACT Chapter 84 expenses.
The U.S. Department of Labor, Office of Labor-Management Standards (OLMS) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Aunnie Steward and Stephen Corso.
SOURCE: news provided by JUSTICE.GOV on Monday, October 22, 2018.