A former high-ranking boilermakers’ union staff official has pleaded guilty to one count of racketeering conspiracy for allegedly misappropriating union funds to purchase overseas trips, merchandise, meals and for other purposes not related to union business, the U.S. Dept. of Justice said.
DOJ said in a May 23 press release that that the former official, Tyler Brown, 44, of Kansas City, Mo., engaged in “numerous instances of unlawful misappropriation of union funds.”
According to a filing in federal court for the District of Kansas, from 2018 to 2022, Brown was concurrently special assistant to the union's international president, chief of staff for the union and executive director of the industrial sector operation. He reported directly to the union’s then-president, Newton B. Jones.
In the filing, the department said that Brown “and others known and unknown” formed an “an ongoing enterprise” to achieve the entity's objectives. DOJ also said that Brown was “a primary figure” in that enterprise and took part in its activities from about January 2013 until about October 2022.
DOJ said in a court document that the enterprise’s purposes included “enriching” enterprise members through “theft” from the union and “preserving and protecting" the enterprise’s “power and profits" by theft.
The actions included, among other things, using union funds for purchasing merchandise and "hundreds of restaurant meals" for Jones and his wife that were not needed to carry out union business, DOJ said in the release.
Brown was involved in employing family members of union officers who received several-hundred-thousand dollars in salaries, expense reimbursements, unearned vacation time and “benefit contributions for minimal or no productive work,” DOJ also said.
The department also cited payments for "dozens" of trips to Europe, Asia and Australia for what it described as “large entourages” of boilermakers officers, employees, families and guests, “whose travel was not necessary to conduct union business or benefit the union or its members."
Brown is scheduled to be sentenced on Aug. 22 in U.S. District Court in Kansas City, Kans. He faces a maximum penalty of 20 years in prison.
The boilermakers union–whose full name is the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers–has about 45,000 members, who work in a variety of industries, including construction.
The boilermakers union is one of 15 affiliates of North America’s Building Trades Unions.
The union said in a May 23 statement that it expects there will be "more convictions" in the case.
The union also recounted changes in leadership made last year, saying that then-international president Jones “was removed from office by the union’s executive council,” an action that took place on June 2, 2023.
District Court Chief Judge Eric F. Melgren last Aug. 1 issued a ruling upholding the union executive council’s action.
In the ruling, Melgren also said that on last July 31, Jones announced his retirement from his position.
Remedial Actions by Union
Remedial steps have been taken "to ensure that the practices which the former president engaged in will not happen again,” said the union.
In June 2023, the union’s board named Warren Fairley its new international president. Fairley is a long-time boilermakers official, whose most recent position was international vice president for the Southeast section.
The union also said it “is cooperating fully with the government’s investigation of actions taken by the former officers.”
In early June 2023, Jones said in a letter to union members that he shared with the Kansas City Business Journal, "I have not misappropriated any union funds. In fact, I have presided over a very clean organization in my 20 years as your International president."
According to a June 8, 2023 article in the Business Journal, Jones also said he stands by all of his expenses paid by the union.