TERRE HAUTE, Ind. Missing funds from a local union have sparked an investigation. Now the national chapter of Laborers International Union is involved.
This week a letter appeared on the front door of Local Union #204 in Terre Haute. It was a message to all union members that until June 4th the union will be under the trusteeship of the international union.
The national chapter has conducted an investigation into more than $12,000 in missing funds; the letter claims since 2008, initiation fees and dues had gone missing.
It also said that when the loss was discovered, the business manager paid the funds back. But, not before receiving a more than $2,000 advance on his wages in order to pay it back.
Why is this a problem?
Federal law prohibits local unions from making loans of over $2,000 to union officials.
News 10 reached out to the Local Union 204 and spoke with Chuck Toth. He told us when accusations occur; the letter and investigations are standard procedure
According to him no wrongdoing has been found. A hearing is set for the 4th of June at the holiday inn in Terre Haute.