ST. LOUIS 鈥 The former head of the 最新杏吧原创-Kansas City Carpenters Regional Council says the national union鈥檚 decision to put its Chicago office in charge of 最新杏吧原创 was 鈥渘othing more than a political coup d鈥檈tat鈥 that 鈥渋llegally鈥 gave it control of 鈥渢ens of billions鈥 in assets held by the union鈥檚 pension and benefit funds.
Al Bond鈥檚 answer, filed last week in a federal lawsuit brought against him by the Chicago office of the Carpenters鈥 union, is his first public defense since officials with the United Brotherhood of Carpenters suddenly ousted him, dissolved the 最新杏吧原创 council and put its operations under Chicago鈥檚 control.
In his answer, Bond alleges that 鈥渟ix or so鈥 people in the 最新杏吧原创 office complained to national union officials in the hopes of ousting Bond and taking over the union.
鈥淭his was nothing more than a hostile takeover of the Union led by a personal individual attack upon defendant initially by a few ... dissident members who complained to the (United Brotherhood of Carpenters) offices of (President Doug McCarron) because they wanted to replace Defendant,鈥 Bond lawyer John Goffstein wrote in the May 4 filing. 鈥淚t did not work.鈥
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Now, 鈥渢ens of billions鈥 in union assets via benefit funds are under the control of the Chicago-based Mid-America Carpenters Regional Council 鈥渃ontrary to the best interests and to the financial detriments鈥 of union members in 最新杏吧原创, Kansas City and Southern Illinois and contractors in the region, Bond argues.
It鈥檚 unclear how the 鈥渢ens of billions鈥 amount was calculated. The 最新杏吧原创 Carpenters pension had $3.6 billion in assets as of last year. The union鈥檚 other benefit funds had assets in the hundreds of millions of dollars.
Bond has countersued the Mid-America Carpenters Regional Council, asking a judge to order the reinstatement of the 最新杏吧原创 council and its officers and the return of its benefit fund assets.
鈥淭he Plaintiff, by and through its Chicago affiliate, committed an improper theft of the 最新杏吧原创 Council assets otherwise belonging to this area鈥檚 membership,鈥 Bond says in the filing.
The 最新杏吧原创-based council was among the most influential unions in the region鈥檚 political and business circles, writing six-figure checks to area politicians and negotiating labor contracts for a sizable chunk of the area鈥檚 construction workforce.
In September, Bond鈥檚 position was eliminated and the 最新杏吧原创 council was terminated with little explanation. UBC President Doug McCarron later said the national union was investigating 鈥渇inancial malfeasance鈥 in the 最新杏吧原创-Kansas City Carpenters Regional Council, and union officials said they planned formal, internal charges against Bond for 鈥渄efrauding鈥 the union.
In legal filings last month, Goffstein revealed Bond had 鈥淒epartment of Justice issues,鈥 disclosing that Bond was looking at hiring 鈥渄efense firms鈥 as co-counsel.
In March, the Mid-America Carpenters Regional Council sued Bond and two outdoor advertising companies owned by James Neumann, seeking to void the agreements between the union and the companies.
The lawsuit accuses Bond of paying Interrail Outdoor LLC $4 million for three billboards, only one of which had been built. Bond entered into an agreement with Interrail in January 2020 but didn鈥檛 receive approval from the executive committee until a year later, by which time he already had paid the company $3 million, according to the lawsuit.
Bond also inked contracts with Foxpoint Interactive, another company owned by Neumann, that gave it rights for 32 years to a portion of advertising revenue derived from union property. The terms, the lawsuit claims, are 鈥渋nconsistent鈥 with the union鈥檚 purpose and could cause an 鈥渦ndesirable鈥 tax burden.
But the contracts with Neumann鈥檚 firms, Bond argues, were good for the union and received the required approvals. Only one billboard has been installed, Bond argues, because the union 鈥渟topped the project in its tracks.鈥
鈥淭his was a great deal for the Union, well within its sphere of influence and legal authority since the union, instead of paying the sign companies for advertising at prime locations at or near union facilities, was able to negotiate a profit-making venture which would also allow them to advertise for prospective Union members,鈥 Bond鈥檚 filing argues.
While Bond led the 最新杏吧原创 Council, a position he had held since 2015, union audits and reports filed with federal regulators never 鈥渞esulted in anything other than proper oversight,鈥 Bond鈥檚 filing argues.
Bond鈥檚 lawyer declined to comment. Dowd Bennett attorney Jim Martin, representing the Mid-America Carpenters Regional Council, declined to comment.
Foxpoint and Interrail, now represented by attorneys Armstrong Teasdale, argue there is no allegation they did anything wrong or should have known Bond was violating union bylaws.
鈥淏ond鈥檚 alleged actions or violations do not permit the Union to avoid its obligations in these contracts at the expense of third parties like Interrail and Foxpoint,鈥 the companies argue in their own filing.
An attorney for Neumann鈥檚 companies did not respond to a request for comment.
Seattle-based council also suing
Bond isn鈥檛 the only former regional leader union officials are currently suing.
In November, national officials took over the Seattle-based Pacific Northwest Regional Council of Carpenters, alleging fraud in contract votes following contentious strikes there last year.
The union is suing the former head of the Northwest regional council, Evelyn Shapiro, who resigned in the wake of the takeover. She is accusing McCarron and the union鈥檚 longtime lawyer, Dan Shanley, of corruption, while the union accuses her of fabrications to 鈥渄iscredit the investigation that uncovered and exposed her repeated instances of vote rigging.鈥
Meanwhile, a former top Carpenters union official who was indicted in New Jersey, George Laufenberg, has entered plea negotiations with the feds, Laufenberg is a former commissioner for the Port Authority of New York and New Jersey and oversaw Carpenters union benefit funds before the union fired him in 2016. He was indicted in 2019, and a federal grand jury sent several subpoenas to entities tied to the Carpenters union.
Originally posted at 5:45 p.m. Tuesday, May 10.