Union Target in Probe of Spending

Federal and local authorities are investigating whether leaders of a Los Angeles union for school workers misappropriated union money and improperly funded efforts to elect Martin Ludlow to the City Council in 2003, labor officials said.

The investigation by the U.S. attorney, Los Angeles County district attorney and Los Angeles Ethics Commission grew out of a probe by the international headquarters of the Service Employees International Union alleging that Local 99’s former executives misspent money on excessive salaries, bonuses and personal travel.

The union, which represents 38,000 Los Angeles area school workers, has been placed in trusteeship since 2004 by the international union leadership, which has removed all 34 executive board members and officers, including President Janett Humphries.

Members of the service employees union work for school districts, providing food services and building maintenance, and include classroom aides, special education instructors, interpreters, bus drivers and warehouse operators.

Ben Boyd, communications director for the union’s international headquarters, said “external investigations” are focused on individuals, not the union itself, and his office is cooperating.

Former members of the local’s executive board said federal and local prosecutors have, in recent weeks, interviewed half a dozen former union officials to determine whether the organization’s funds were spent on supporting Ludlow’s election without following proper internal procedures or complying with state and city campaign finance laws.

Local 99’s political action committee reported spending nearly $43,500 on an independent campaign for Ludlow that year, including $14,000 for precinct walking and $3,300 for phone calls. Ludlow was the former western regional director of the union.

Two former executive board members said Monday that investigators have questioned other ex-board members about whether money spent to support Ludlow was approved by the political action committee’s board.

Speaking on condition of anonymity because they fear retaliation, they also said they have told investigators they suspected that political operatives had been added to the union payroll mainly to help elect Ludlow.

“I was very upset about what was going on,” said one of the former board members. She said she saw checks written for campaign activities that had not been approved by the committee’s board.

Ludlow resigned from the council to become head of the Los Angeles County Federation of Labor in July.

The Times previously reported that federal investigators were looking into his involvement in trying to steer a contract to an associate on a Metropolitan Transportation Authority project.

A representative of Ludlow confirmed he is talking with investigators.

In a statement issued Tuesday, Ludlow said the federation does not comment on pending investigations of an affiliate, but promised “my full cooperation” in any such probe.

Former union board members for Local 99 said they did not know whether Ludlow was aware his candidacy was getting extra help that might not comply with campaign finance laws.

Humphries, the former union president, was a politically powerful figure appointed in 2003 by then-City Council President Alex Padilla to the city’s Central Area Planning Commission. She was replaced a little more than a year later.

Humphries denied that she misspent union funds on herself or on improper campaign activities. She contended that other unnamed union officials wanted to unseat her by making false accusations.

“Janett Humphries is a victim of misinformation and dishonest individuals seeking to avoid responsibility for their actions,” said her attorney, Ricardo A. Torres II. “She will meet with any and all investigating authorities and work through the courts, if necessary to secure her good name and reputation.”

Representatives of the three investigative agencies declined comment. “I can’t comment on a current investigation,” said Jane Robison, a spokeswoman for Dist. Atty. Steve Cooley.

A two-year initial review by Trustee Valarie Long, detailed in a report filed Sept. 19 with the Department of Labor, alleged the misspending.

“The local discovered that overpayment of salaries, auto allowances and other payroll related expenses were paid on behalf of officers of the local,” Long wrote.

An internal union report, obtained by The Times, indicates that thousands of dollars from the union were spent on improper foreign travel and Humphries’ salary went above board-set limits, growing from $72,588 in 2000 to $112,000 five years later.

Humphries defended her compensation, saying she had been “working more than 14 hours, seven days a week.”