Tyrone Freeman Charged with Self-dealing and Financial Malpractice

Washington,DC--Service Employees International Union (SEIU) today announced formalcharges against Tyrone Freeman, president of United Long-term CareWorkers Local 6434 based in Los Angeles, California.  In a letter tothe International leadership, Trustee John Ronches charged Freeman withengaging in self-dealing and financial malpractice in violation ofSEIU's Constitution and Local bylaws.

SEIUopened its investigation on August 11 and appointed Ronches as Trusteeon August 22, with the International assuming trusteeship and oversightof all Local affairs.  SEIU also retained former California AttorneyGeneral John Van de Kamp, a nationally recognized legal expert, toassist in the International's investigation of the Local.

Atthe Trustee's request and per the International's Constitution,International President Andy Stern will assume jurisdiction in the caseand designate a hearing officer.

"Theallegations underlying the charges against Tyrone Freeman are deeplydisturbing, and we are going to proceed with a full and fair hearingprocess," said Stern.

SEIU'sinvestigation produced seven separate charges against Freeman forimproperly benefiting in transactions involving member funds.  Thecharges allege that:                                                                          

   * Freeman caused Local 6434 to make more than $600,000 in payments to acompany owned by his wife without proper disclosure to the LocalExecutive Board and/or observance of procedural safeguards.  Thesetransactions included payment for work that does not appearcommensurate with the value of the Local union expenditures.

     * Freeman improperly charged Local 6434 for certain expenses of his August 2006 wedding to Pilar Planells.

   * Freeman used the Homecare Workers Training Center Fund to pay forchildcare services that did not benefit the workers attending thetraining center but instead benefited himself, his wife, and hismother-in-law, along with Local staff.  In carrying out thistransaction, it is also alleged that he failed to make properdisclosures and implement procedural safeguards.

    * Freeman improperly entered into a consulting agreement with thenonprofit Long Term Care Housing Corporation that provided him with an"advance retainer."

     * Freeman accepted payments from the California United Homecare Workers that were intended for Local 6434.

     * Freeman failed to adequately document or substantiate the proper use of union funds on a private cigar club membership.

    * Freeman disregarded democratic accountability procedures with respectto use of the Local union funds and the funds of nonprofit entitiesrelated to Local 6434.

 Theannouncement of charges follows an intensive and ongoing internalinvestigation.  Following published allegations against Freeman, SEIUimmediately sent a team of auditors and investigators to Local 6434during the week of August 11.  Based on a this review of evidence, theInternational took the Local into trusteeship on August 22 andappointed John Ronches, a nationally respected 30-year veteran of thelabor movement, to oversee the investigation and day-to-day operations.

 "Ourmembers, who do some of the toughest jobs in America, deserveleadership of unquestioned honesty and integrity, and SEIU will delivernothing less," Stern said.

 SEIUalso announced today that the hearing in the trusteeship matterinvolving Local 6434 will be held on October 2-3 before formerCalifornia Supreme Court Justice Joseph Grodin.  Grodin, who served onCalifornia's high court between 1979 and 1987, is currentlyDistinguished Emeritus Professor at the University of California'sHastings College of Law.

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