UNITED STATES OF AMERICA 88 Civ (DNE) Plaintiff, APPLICATION LV OF THE --OPINION OF THE INTERNATIONAL BROTHERHOOD

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1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK UNITED STATES OF AMERICA 88 Civ (DNE) Plaintiff, APPLICATION LV OF THE v. INDEPENDENT REVIEW BOARD --OPINION OF THE INTERNATIONAL BROTHERHOOD INDEPENDENT REVIEW BOARD OF TEAMSTERS, et al., IN THE MATTER OF THE HEARING OF PETER MENECHINO, SR. Defendant. x x Pursuant to Paragraph 0. of the Rules of Procedures for Operation of the Independent Review Board ("IRB") for the International Brotherhood of Teamsters ("IRB Rules"), Application is made by the IRB for ruling by the Honorable David N. Edelstein, United States District Judge for the Southern District of New York, on the issues heard by the IRB during a hearing on September 16, 1997, and thereafter determined, on the charge filed against Peter Menechino ("Menechino"). Menechino was charged with knowingly associating with members of the Gambino Family of La Cosa Nostra while he was a member of Local Union 8, including, but not limited to, Salvatore Gravano and Edward V. Garafola. Having reviewed the evidence and post-hearing submission, by the Chief Investigator, the IRB found that the charge against Menechino was proved. As a penalty, Menechino has been permanently barred from membership in the IBT and may not hereafter obtain employment, consulting or other work with the IBT or any IBT-affiliated entity.

2 Given the IRB's determination, we do not find it appropriate to stay the Opinion or the penalty imposed pending review by Your Honor as we found it in the best interest of the IBT that Menechino immediately be barred from IBT membership. following exhibits: Enclosed with the October 9, 1997, Opinion are the 1) March 6, 1997, IRB Investigative Report w/exhibits 1-30; ) September 16, 1997, Menechino Hearing Transcript (w/exhibits 1-14). It is respectfully requested that an Order be entered affirming the IRB's October 9, 1997, Opinion if Your Honor finds it appropriate. Dated: October 9, 1997 By:! Member of the Independent Review Board

3 X IN RE: PETER MENECHINO SR. IBT Local Union 8 OPINION AND DECISION OF THE INDEPENDENT REVIEW BOARD On March 6, 1997, the Independent Review Board ("IRB") issued an Investigative Report (attached hereto as Exhibit A) and forwarded it to the General Executive Board of the International Brotherhood of Teamsters ("IBT") recommending charges against Peter Menechino, Sr. ("Menechino") as follows: While a member of Local 8 and the IBT, you brought reproach upon the IBT in violation of Article II, Section (a) and Article XIX, Sections 7(b)(1), () and (9) of the IBT Constitution, to wit: While a member of Local 8 and the IBT, you knowingly associated with members of the Gambino Family of La Cosa Nostra, including but not limited to Salvatore Gravano and Edward V. Garafola. On March 7, 1997, David L. Neigus, Deputy General Counsel to the IBT, sent a letter to the Independent Review Board advising the IRB that the IBT General President had adopted and filed the charges against Menechino for knowingly associating with members of organized crime, and that in accordance with past practice, the charges filed by the General President were referred back to the IRB for adjudication. On April 1, 1997, the IRB sent a Notice of Hearing, to

4 be held on June 4, 1997, to Menechino at his residence. Enclosed with the Notice, Menechino was provided with a copy of the IRB Investigative Report (with exhibits) and the IRB Operating and Hearing Rules. For his convenience, Menechino was given the opportunity to have the hearing held in New York and, if he so chose, to notify the IRB by April 7, On May 0, 1997, the IRB sent a letter to Menechino at his residence, advising him that the IRB had found it necessary to adjourn his hearing until 10:00 a.m. on July, Menechino was again given the opportunity to have the hearing held in New York and, if he so chose, to notify the IRB by May 6, On June 16, 1997, the IRB sent a letter to Menechino at his residence advising him that the IRB had approved his written request received by facsimile on that date to hold the hearing on August 1, 1997 at :00 p.m. at the offices of LeBoeuf, Lamb, Greene & MacRae, located at 15 West 55th Street, New York, New York. On August 1, 1997, Menechino appeared without counsel for the noticed hearing. However, Menechino advised the Board members that he was not prepared to go forward at this hearing, and obtained an adjournment of his hearing. On August 7, 1997, the IRB sent a letter to Menechino at his residence, confirming that at the August 1, 1997 hearing, the IRB had postponed his hearing and advising Menechino that his hearing had been rescheduled for September 16, 1997 at 10:00 a.m. at the offices of LeBoeuf, Lamb, Greene & MacRae, located at 15 West 55th Street, New York, New York. Thereafter, on September 10,

5 1991, the IRB sent a letter to Menechino at his residence, advising him that his hearing scheduled for September 16, 1997, would be held at the IRB offices, 444 North Capitol Street, N.W., Suite 58, Washington, D.C. at :00 p.m. In this letter, the IRB further advised Menechino that if he chose prior to September 16, 1997, to sign an agreement permanently resigning from the IBT, there would be no need for his personal appearance. On September 11, 1997, the IRB sent a letter to Menechino at his residence, advising him that unless his original executed affidavit and agreement of resignation were received by Monday, September 15, 1997, the hearing would go forward as scheduled in Washington, D.C. On September 16, 1997, the noticed hearing went forward before the IRB. Menechino did not attend this hearing. A copy of the hearing transcript, with the hearing exhibits, is annexed hereto as Exhibit B. Among those present at the hearing were the following: IRB Chief Investigator Charles M. Carberry; Dennis E. Milton, Special Counsel to the Chief Investigator; Assistant United States Attorney Beth Goldman; and Special Agent Brian F. Taylor of the Federal Bureau of Investigation. At the hearing the following exhibits were placed into the record: Ex. 1 Ex. Ex. 3 Local 8 Titan Printout Dues Record for Peter Menechino, Sr. Notice of Removal of Peter Menechino, Sr. from On Site Steward Position Transcript of Peter Menechino, Sr.'s Sworn Examination Testimony on January 9, 1997

6 Transcript of Peter Menechino Sr.'s Sworn Examination Testimony on August 5, 199 Transcript of Peter Menechino Sr.'s Sworn Examination Testimony on June 7, 1994 Declaration of FBI Special Agent John Iacovelli dated March 6, 199 Declaration of FBI Special Agent J. Bruce Mouw dated September 7, 199 Excerpts from New York State Organized Crime Task Force Corruption and Racketeering in the New York City Construction Industry Interim Report, dated June 1987 Investigations Office Charges Regarding Frank Fappiano Investigations Office Charges Regarding Michael DiLeonardo Investigations Office Charges Regarding Barbato Salvatore Investigations Office Charges Regarding Camillo Lombardozzi Frank Fappiano's Signed Agreement with the Investigations Office Michael DiLeonardo's Signed Agreement with the Investigations Office Salvatore Barbato's Signed Agreement with the Investigations Office Camillo Lombardozzi's Signed Agreement with the Investigations Office Removal of Joseph Cammarano, Jr. Joseph Cammarano Sr's Signed Agreement with the Chief Investigator's Office Superseding Indictment CR Judgment and Commitment Order of John Cody dated December 1, 198

7 Ex. 1 Self-Surrendered Report for John Cody dated January 0, 1984, Danbury, Connecticut Ex. Superseding Indictment CR Ex. 3 Plea Agreements of Defendants A) Robert Sasso B) Michael Carbone (Court Testimony Entering Plea) C) Michael Bourgal (Court Testimony Entering Plea) D) John Probeyahn (Court Testimony Entering Plea) E) Joseph Matarazzo (Court Testimony Entering Plea) Ex. 4 Ex. 5 Robert Sasso's Signed Agreement with the Investigations Office Michael Carbone's Signed Agreement with the Investigations Office Ex. 6 Michael Bourgal's Resignation from Local 8 Ex. 7 John Probeyahn's Resignation from Local 8 Ex. 8 Ex. 9 Ex. 30 Excerpt from 1988 Report of the Permanent Subcommittee on Investigations of the Senate Committee on Government Affairs Newspaper articles regarding Salvatore Gravano and Edward V. Garafola Declaration of FBI Special Agent Brian F. Taylor dated May 3, 1996 Special Agent Taylor was the sole witness at the hearing. In addition to testifying that the information contained in his declaration was true, Agent Taylor adopted the declarations of Special Agent John Iacovelli and J. Bruce Mouw. These declarations set forth information provided by Salvatore Gravano regarding thegambino organized crime family's infiltration of IBT Local 8. This relationship began in the early 1980s between Gambino family boss Paul Castellano and IBT leader John Cody. The relationship endured and was nurtured by Gravano and Cody's

8 successor, Robert Sasso. Sasso was under the control of Gravano, who moved and directed Sasso in furtherance of the Gambino's family's criminal enterprise. Gravano has stated that messages were passed between him and Sasso and Michael Carbone, and that Sasso and Carbone were associates of the Gambino Crime Family. Gravano stated that he considered IBT Local 8 to be controlled by the Gambino organized crime family. The declarations also established that Edward Garafola was considered by the FBI as a soldier in the Gambino organized crime family. Garafola is the brother-in-law of Gravano, and Gravano has testified that Garafola was a member of the Gambino Family. Gravano has further stated that the Gambino Family used Garafola to further its infiltration of labor unions and the construction industry. According to Gravano, Garafola handled IBT Local 8 for the Gambino Family after Gravano was arrested by the FBI. At his January 1997 sworn examination, M enec h i no testified that over a period of five years, from approximately 1986 to 1990, he met with Gravano or delivered messages to Gravano concerning Local 8 business on a regular basis. Menechino admitted that at the direction of Sasso and Carbone, he had delivered messages to Gravano. These messages contained the names of Local 8 members proposed for promotion to business agent and Working Teamster Foreman positions, and the approval of Gravano was necessary before their appointment would occur. Menechino testified that he carried messages between

9 Gravano and Sasso from approximately 1986 until 1990, when Gravano was incarcerated. Then Sasso used Menechino to deliver similar messages to Garafola, Gravano's mob replacement, to obtain Garafola's approval of the appointment of Working Teamster Foremen and business agents. Menechino testified that from 1990 until June 1995 he was present at approximately ten meetings with Sasso and Garafola, and had an additional twenty-five meetings with Garafola alone at Sasso's direction. After Sasso was removed from the Local, between 1993 and 1995, Menechino met with Garafola concerning union matters on about five occasions at the direction of Michael Bourgal. These meetings would involve union matters such as the discussion of contracts, and approvals of appointments to Working Teamster Foreman positions. In addition, Menechino stated that on two separate occasions, he delivered payoffs to Gravano and Garafola. Menechino testified that he gave an envelope containing approximately five thousand dollars to Gravano, and on a later occasion delivered an envelope containing about five thousand dollars to Garafola. Gravano has advised that when employer payoffs were generated in Local 8, he would receive money from either Sasso or Carbone. Menechino has given false testimony at two earlier sworn examinations. On August 5, 199 and June 7, 1994, Menechino falsely stated under oath that he did not know Gravano. Menechino's loyalty to the Gambino Family did not go unrewarded. Menechino joined Local 8 in 1978, and was made a

10 Working Teamster Foreman in 1980 by Sasso. Menechino's two sons, Michael and Peter, Jr., are members of Local 8 and were appointed to Working Teamster Foreman positions with Gambino Family approval during the years when Menechino met with Gravano and Garafola. Michael Menechino, now 8 years old, was appointed at the age of 18 to the Working Teamster Foreman position by Sasso. Peter Menechino, Jr., now 3 years old, joined Local 8 in 199 and was appointed to the on site steward (formerly Working Teamster Foreman) position in They continue to hold those positions. Menechino's conduct as described in his January 9, 1997 sworn examination reflected his direct knowledge of Gravano's and Garafola's ties to organized crime. On the basis of the testimony of Menechino at his sworn examination on January 9, 1997, the Board finds that there is just cause for determining that it has been established by a preponderance of the evidence that Menechino at all pertinent times has associated with Salvatore Gravano and Edward V. Garafola, members of the Gambino organized crime family. Accordingly, we determine that the Charge has been proved. PENALTY TO BE IMPOSED Menechino's knowing association with members of the Gambino organized crime family is repugnant to the idea of a corruption free Union. The IBT has committed itself to cleansing its ranks of organized crime's influence. Consistent with that

11 commitment, the only just punishment for Menechino is permanent debarment from the IBT. Members of the Independent Review Board Frederick B. Lacey r? William H. Webster Dated:

12 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK UNITED STATES OF AMERICA Plaintiffs, -v- INTERNATIONAL BROTHERHOOD OF TEAMSTERS. etal, MEMORANDUM & ORDER 88 Civ (DNE) Defendants. X EDELSTEIN. District Judse: WHEREAS on March , the Independent Review Board ("IRB") issued an Investigative Report ("the IRB Report") and forwarded it to the Genera! Executive Board of the International Brotherhood of Teamsters ("IBT") recommending charges against Local 8 member Peter Menechino, Sr. ("Menechino") for bringing reproach upon the IBT, and violating his membership oath by knowingly associating with members of the Gambino Famiiy of La Cosa Nostra, in vioiation of Article II, Section (a) and Articie XIX, Sections 7(b)(1), () and (9) of the IBT Constitution; and WHEREAS by letter dated March 7, 1997, David L. Neigus, Deputy General Counsel to the IBT, advised the IRB that the IBT General President had adopted and filed the recommended charges against Menechino and that the chargcs were referred back to the IRB lor adjudication; and WHEREAS on April 1, 1997, the IRB sent a Notice of Hearing, to be held on June 4, 1997, to Menechino, along with a copy of the IRB Report (with exhibits) and the IRB Operating and Hearing Rules; and WHEREAS on May 0, 1997, the IRB sent a letter to Menechino advising him that the IRB found it necessary to adjoum his hearing until 10:00 a.m. on July,1997; and WHEREAS on June 16, 1997, the IRB sent a letter to Menechino advising him that the IRB had approved his written request to hold the hearing on August 1, 1997 at :00 p.m. at the offices ofleboeuf, Lamb, Greene & MacRae, located at 15 West 55th Street, New York, New York; and WHEREAS on August 1, 1997, Menechino appeared without counsel for the noticed

13 hearing and advised the IRB members that he was not prepared to go forward at this hearing, and obtained an adjournment of his hearing; and WHEREAS on August 7, 1997, the irb sent a letter to Menechino advising that his hearing had been rescheduled for September 16, 1997 at 10:00 a.m. at the offices of LeBoeuf^ Lamb. Green & MacRae; and WHEREAS on September 10, 1997, the IRB sent a letter to Menechino advising him that his hearing scheduled for September 16, 1997, would be held at the IRB offices, located at 444 North Capitol Street, N.W., Suite 58, Washington, D.C. at :00 p.m.; and WHEREAS on September 16, 1997, the noticed hearing went forward before the IRB and Menechino did not attend and was not represented at the hearing; and WHEREAS the hearing proceeded with testimony taken from Federal Bureau of Investigation ("FBI") Special Agent Brian F. Taylor in which Special Agent Taylor testified that the information contained in his declaration was true, and that he adopted the declarations of Special Agent John Iacovelli and J. Bruce Mouw; and WHEREAS these declarations set forth information provided by Salvatore Gravano ("Gravano") regarding the Gumbino organized crime family's infiltration of IBT Local 8 which began in the early 1980s through Gambino family boss Paul Castellano and IBT leader John Cody, and was nurtured by Gravano and John Cody's successor, Robert Sasso ("Sasso"); and WHEREAS the declarations also established that Edward Garafola ("Garafola") was considered by the FBI to be a soldier in the Gambino organized crime family and that the Gambino Family used Garafola to further its infiltration of Local 8 after Gravano was arrested by the FBI; and WHEREAS at his January 1997 swom examination, Menechino testified that over a period of five years, from approximately 1986 to 1990, he mci.with Gravano or delivered messages to Gravano concerning Local 8 business on a regular basis, and delivered messages containing names of Local S members proposed for promotion which needed the approval of Gravano before the promotions would occur; and WHEREAS Menechino further testified that from 1990 until June 1995 he was present at approximately ten meetings with Sasso and Garafola, and had an additional twenty-five meetings with Garafola alone at Sasso's direction; and WHEREAS Menechino also testified that between 1993 and 1995, after Sasso was removed from the Locai, Menechino met with Garafola concerning union contracts and approvals of appointments to Working Teamster Foreman positions on about five occasions; and

14 WHEREAS Menechino stated that on two separate occasions, he delivered payoffs to Gravano and Garafota totaling approximately $10,000; and WHEREAS Menechino previously gave false testimony at two earlier sworn examinations where he falsely stated under oath that he did not know Gravano; and WHEREAS Menechino was made a Working Teamster Foreman by Sasso in 1980 and his two sons were made Working Teamster Foremen during the years when Menechino met with Gravano and Garafola; and WHEREAS having reviewed the IRB October 9, 1997 Opinion and Decision and all accompanying exhibits, this Court finds that the charge against Menechino has been proven by a preponderance of the evidence; and WHEREAS having reviewed the sanctions imposed by the IRB, this Court finds that the sanctions are proportionate to the severity of the misconduct of which Menechino was guilty; and granted; WHEREAS accordingly, this Court finds that Application LV of the IRB should be IT IS HEREBY ORDERED THAT Application LV of the Independent Review Board regarding the charges and sanctions imposed against Peter Menechino, Sr. is GRANTED. SO ORDERED. DATED: New York, New York October 15,1997.