FBI investigates prominent labor leader Andy Stern

[I AM NOT THAT GUY 5,715]

WASHINGTON (AP) - People interviewed by federal agents report the FBI and the Labor Department are investigating prominent labor leader Andy Stern as part of a corruption probe involving the Service Employees International Union.

Two organized labor officials met with federal agents this summer to answer questions about Stern's role in approving money to pay the salary of an SEIU leader in California who performed no work and a book contract that Stern landed in 2006.

Both officials spoke on condition of anonymity because of the sensitive nature of the investigation. The FBI and the Labor Department's office of inspector general declined to comment for the record.

Stern abruptly resigned as president of the 2.2-million member SEIU in April.

http://www.breitbart.com/article.php?id=D9IGURA80&show_article=1

An SEIU spokeswoman flatly denied an Associated Press and Los Angeles Times reports today that the union and its former president Andy Stern are subject to an FBI investigation.

Ringuette said she'd had "not a single report of a federal inquiry" from the union's staff. "Andy hasn't been contacted" by the FBI, she said.

From the AP version:

One person who spoke to federal agents twice, in May and June, said they asked about a 2006 contract in which Stern received a $175,000 advance from Simon & Schuster to write the book "A Country That Works." The SEIU and its locals bought thousands of copies of the book after it was published. The union also paid thousands to fact-check and promote the book, but Stern pocketed the advance.

Ringuette said the SEIU's executive board fully vetted and approved the project. The board told local unions that purchasing Stern's book "is a truly voluntary decision on the part of those who make it, and no adverse impact will result for anyone or any entity who refrains from purchasing or promoting the book," according to documents obtained by the AP. The board also instructed locals to make sure any book purchases were authorized by the local's constitution and bylaws.

Ringuette said the Simon & Schuster contract "did not require the purchase of a single book by SEIU." Stern also received no royalties from book sales to the union.

The sources suggested to the AP and LAT that an investigation into a convicted former union official, Alejandro Stephens, had also spread to the international and to Stern, which Ringuette also denied.

"We have no idea what thees unnamed souces are talking about, but we have not been contacted by any federal agency on this matter," she said, blaming the story on the union's bitter California rivals.

"We did talk to [the FBI] a year ago, but we weren't the subject of investigation. We helped them unearth info about Stephens," Ringuette said.

UPDATE: Here's Ringuette's full statement is after the jump:

Today, there are media reports based on the allegations of two anonymous “union officials” that claim that Andy Stern is under investigation by the FBI in relation to Alejandro Stephens and the publication of A Country That Works.

To our knowledge, this is flat out false.

SEIU was aware that there was a federal investigation of Alejandro Stephens, and SEIU fully cooperated with that investigation. We have heard nothing about that investigation for over a year. Neither SEIU nor Andy Stern has been contacted by government authorities about an investigation of Andy Stern with respect to any matter, including Alejandro Stephens or A Country That Works. Nor has SEIU or Andy Stern had the slightest indication that any such investigation has occurred.

SEIU has had our own issues with Stephens. We believe Stephens violated the terms of his separation agreement with our union and since August 2008, we have aggressively been seeking through arbitration repayment of all monies paid to him for a consulting contract he failed to fulfill.

We’ve seen not the slightest indication that there has ever been a federal inquiry into the publication Andy Stern's book. SEIU's General Counsel and the International Executive Board of the union carefully examined and approved every aspect of the transaction related to the book. Andy Stern never received any royalties from any sales of the book.

There is a crisis for working people in this country, and SEIU members have long given voice to the traditionally powerless. Our members call out injustices, hold corporations accountable, and provide working people a vehicle to powerfully transform their lives. This has made the union a favorite target of corporate interests as well as disgruntled former union officials.

SEIU will always cooperate fully with any federal investigation into alleged misconduct as we always have. But we have to wonder why these anonymous allegations are being raised at this time, and what the motivation of the “union officials” may be. We dismiss these unsubstantiated allegations as a nuisance at a time when 25 million Americans are looking for work, and we will not be distracted from fighting for a more fair economy.

http://www.politico.com/blogs/bensmith/0910/SEIU_denies_investigation_reports.html