The FBI and DOL investigators have suddenly taken an interest in the activities of Andy Stern, the former president of the SEIU. Two issues are being scrutinized: first, a book publishing deal that saw the union bite the bullet for thousands of copies, and second, Stern’s role in the approval of the salary of Alejandro Stephens, a corrupt SEIU leader in California who apparently performed no work. The SEIU and its locals bought thousands of Sterns book after it was released by Simon and Schuster, and paid thousands to fact-check and promote the book, although Stern pocketed the full $175,000 advance. Stephens is on his way to jail for stealing $52,000 from a voter outreach program, while narrowly escaping additional embezzlement charges. Prior to his conviction, the disgraced labor leader had been displaced from his role as president of an SEIU local when his local was merged with another. Shortly thereafter, he was engaged as a “consultant” to the SEIU under a secret agreement Stern allegedly approved. However, Stephens apparently did little to no work in exchange for the salary, and federal law prohibits labor unions from creating what amounts to “no–show” jobs that pay someone for work they do not perform. Upon the disclosure of the investigation, Bill Wilson, president of Americans for Limited Government, called on President Obama to fire Stern from the National Debt Commission and to cease meeting with him in the White House. Included in Wilson’s issued statement,
“Stern has no business sitting on a presidential commission while the FBI is investigating him, or meeting with top White House officials, including Obama. “If the White House will not fire Stern, then members of Congress must urge Obama to do so. Congress has a vested interest in the findings of the debt commission not being tainted by a union corruption scandal, and assuring that White House appointments are properly vetted.”
