New Scandal Erupts at SEIU Local 721

According to various sources, a new scandal has hit SEIU Local 721 in Los Angeles, which represents 70,000 public-sector workers across Southern California. The information comes from various sources as well as an email, pasted below, issued by the local's Deputy Chief of Staff earlier today.

Here's what happening in this fast-breaking story:

The local's Deputy Chief of Staff, Rosanna Mendez, reportedly uncovered evidence that "two high-ranking staff members" at Local 721are involved in serious violations, including misappropriating funds from the union's members. The violations, according to Mendez, implicate Local 721's President, Bob Schoonover and its Chief of Staff, Gilda Valdez. Mendez says that she and other staffers have contacted the U.S. Department of Labor and provided evidence that union funds were misappropriated to fund Schoonover's relection campaign. Schoonover is also a member of SEIU's International Executive Board.

After the Deputy Chief of Staff filed a complaint with SEIU's so-called "International Ethics Division," she was suspended from her job. She says other union staffers with evidence of the misdeeds have had the locks on their office doors changed in an apparent effort to silence them. Oh, and there are allegations of harassment, to boot.

Here's an excerpt from Mendez's email about the misappropriated funds (full text below):

These staff members didn't know if they should disclose this to Bob [Schoonover] or anyone else because they were concerned about how this information could potentially create a scandal "like what happened with Alejandro [Stephens]" if it got out. Gilda [Valdez] directed me not to file written complaints and said if I did, Bob would get angry and would consider me disloyal. My loyalty is to all 85,000 members who collectively pay my salary, and to the staff, not to the President of the Local or the Chief of Staff who hired me, so I filed the complaints.

The email also has info about about secret witnesses and cover-ups:

To protect the privacy of the two additional witnesses I mentioned in #4 above, I'm not sharing their names. I have tremendous respect for both of them even if they no longer speak up for fear of reprisal. I also informed Cathleen that I would disclose additional names of witnesses when/if the investigation occurs. In the beginning, I raised serious concerns and asked alot of questions, but what is happening now seems like an obvious attempt to conceal what I now believe is more serious than I had imagined. The extra security measures that are in place weren't this severe when there was a bomb threat against the Local. This must mean that Bob and Gilda are panic-stricken that certain truths may be discovered.

Here's the full text of the email that Mendez sent to her co-workers earlier this afternoon:

Dear SEIU 721 Staff,

Yesterday, you received an email from Bob and Gilda regarding the complaints I filed against two high-ranking staff members of the Local, which also implicate Bob and Gilda.

I didn't provide details to anyone because I didn't think it was appropriate to disclose the nature of the complaints or who the witnesses are. However, since Bob and Gilda have now disclosed some of the particulars and violated the confidentiality provision of the process, I'll clarify a few things.

1) In my ethics complaint, I did not assert that there is financial malfeasance (as I've told Bob and Cathleen in every email I've sent to them and to our International Ethics Division), although I believe it is happening. I filed the ethics complaint so that there could be an investigation, which is NOT currently taking place. A group of us have additionally contacted the Department of Labor related to misuse of Union funds by Bob for his re-election campaign for President, but we believe this is a DOL matter. I have notified our International as well as the Ethics Officer, but have not been informed whether this will be included in the ethics complaint or whether it is, in fact, a separate matter. We also stop contributing to Bob's re-election campaign last week, so he's not very happy right now.

2) Cathleen sent me an email on Fri., 8/10, informing me that the ethics investigation is SUSPENDED until an internal investigation related to another matter is conducted (the harassment and hostile work environment charge). Since I have not yet been interviewed and the ethics investigation is SUSPENDED, there is no reason for Bob or Gilda to expect that I would share details before being interviewed, and they're not supposed to be involved in the process either way. However, even though not required and no investigation has taken place, I sent Cathleen an email in advance of a meeting we had scheduled for today (that she canceled) with some of the details and specifics related to my complaints, including names of witnesses with direct knowledge about the concerns I raised.

3) Two of the prime witnesses, Zoltan and Al, who have information about the financial irregularities and who had previously spoken to Bob, Marc and Gilda about this, had the locks to their doors changed on Fri., 8/10. However, they were able to keep documents that will be entered as proof IF an investigation ever takes place. One of them may have been terminated, the other is rumored to be on the chopping block, and I'm on administrative leave. Judging by what Bob and Gilda stated in their email about not believing the charges have merit, I'm going to assume the other two, long-term and respected staff members have been silenced even before an investigation has occurred.

4) Zoltan and Al have direct knowledge about and are witnesses for the ethics complaint related to the finances; they are not complainants in the harassment and hostile work environment charge I filed. The other two, current staff members discovered serious concerns related to the finances and reported them to Bob and to me, which I then reported to Gilda. These staff members didn't know if they should disclose this to Bob or anyone else because they were concerned about how this information could potentially create a scandal "like what happened with Alejandro" if it got out. Gilda directed me not to file written complaints and said if I did, Bob would get angry and would consider me disloyal. My loyalty is to all 85,000 members who collectively pay my salary, and to the staff, not to the President of the Local or the Chief of Staff who hired me, so I filed the complaints.

5) To protect the privacy of the two additional witnesses I mentioned in #4 above, I'm not sharing their names. I have tremendous respect for both of them even if they no longer speak up for fear of reprisal. I also informed Cathleen that I would disclose additional names of witnesses when/if the investigation occurs. In the beginning, I raised serious concerns and asked alot of questions, but what is happening now seems like an obvious attempt to conceal what I now believe is more serious than I had imagined. The extra security measures that are in place weren't this severe when there was a bomb threat against the Local. This must mean that Bob and Gilda are panic-stricken that certain truths may be discovered.

Regardless of whether or not the ethics investigation is ever conducted, and regardless of how the truth is being spun, you should know that there are people who are still willing to stand up for what's right. This may be naive and certainly doesn't pay the bills, but I'd rather be able to look my kids in the eye and show them what I stand for rather than give grand speeches without substance. We ask workers to take a stand for what they believe in and to face their fears in spite of attacks and obstacles, so others and I who have taken a stand will do no less than what we ask of workers.

"The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy". - Marting Luther King, Jr.

All my best,

Rosanna