FBI Charges Fraud in Teamsters Election

Alleging a scheme to funnel union funds into Teamster President Ron Carey’s reelection campaign, the FBI on Friday arrested a Washington political consultant and indicated that others could be charged.

Martin Davis, 35, a co-owner of the November Group consulting firm, was charged with one count of mail fraud and released on $100,000 bond. His attorney said he would plead innocent.

Meanwhile, a federal grand jury continued to weigh allegations that the union election--which was funded with $22 million in federal money--was tainted by corruption.

The Teamsters issued a statement saying that the union has fully cooperated with the investigation and will continue to do so.

Under the rules of the federally supervised election, candidates were barred from using union funds or accepting donations from anyone who was an employer.

A statement from Carey’s campaign stressed that the complaint didn’t charge “any wrongdoing or knowledge of wrongdoing” by Carey.

“The Carey campaign . . . is prepared to take swift and decisive actions regarding any wrongdoing by any campaign staff,” the statement said.

Richard Leebove, spokesman for Carey’s challenger, James P. Hoffa, urged Barbara Zack Quindel, the federal official who oversaw the election, to overturn Carey’s election.

“Our belief is that the criminal complaint is enough evidence for the election officer to remove Ron Carey from office and declare Jim Hoffa the victor,” Leebove said. “Any further delay by the election officer in nullifying the results in the 1996 election can only mean she is complicit in a cover-up to protect Ron Carey.”

Quindel’s office, which is conducting its own investigation, declined comment.

In an FBI complaint filed in U.S. District Court in Manhattan, Davis was quoted as telling a confidential witness that the Teamsters knew of a plan to reimburse the wife of a Massachusetts telemarketing company for contributions she made to Carey’s campaign.

Barbara Arnold, of Carlisle, Mass., made $95,000 in donations when her husband, Michael Ansara, was doing work for the Teamsters through his telemarketing firm, Share Group Inc.