Former Hospital Union Head In Alabama Accused Of Embezzling $132K

From Alabama Media Group on 3/12/2015:

The former president of the union for federal employees at Birmingham's Veterans Affairs hospital has been indicted on charges that she embezzled more than $132,000 in chapter funds.

Stephanie Hicks, 43, of Birmingham, was indicted on bank fraud, forgery and aggravated identity theft charges, according to a news release from U.S. Attorney Joyce White Vance.

"Union members elect officials to represent them and protect their interests," Vance said in a statement. "A labor union official who chooses, instead, to live the high life by stealing from local members has committed a crime and should prepare to go to prison."

According to the indictment, Hicks served as president of the American Federation of Government Employees, Local 2207, AFL-CIO, at the hospital from July 2007 to July 2013. Dues collected from the chapter's 440 members were kept in two bank accounts, a general operating account and a legal fund account at Wachovia Bank, then Wells Fargo.

Hicks is accused of using her position as president to make unauthorized transactions from the accounts for her benefit, including writing checks for travel that didn't happen, forging the names of other officers and members, and making debit card purchases and cash withdrawals, according to the news release. She is also accused of covering up the expenses by not keeping records, in violation of federal laws and the local's constitution and bylaws, and didn't seek approval for the charges.

Hicks faces eight bank fraud, eight forged security and three aggravated identity theft counts.

She was indicted last month and the indictment was unsealed after her arrest Wednesday.

"This indictment is a testament to the excellent interagency cooperation with the U.S. Department of Labor and the U.S. Department of Justice," said Monty Stokes, the special agent in charge of the Department of Veterans Affairs' Office of the Inspector General. "As president of the local union, Hicks represented Local 2207, with more than 400 VA members. VA OIG will continue to pursue those that abuse their positions of trust and steal from innocent victims."

The Veterans Affairs OIG and the Department of Labor's Office of Labor-Management Standards and OIG investigated the case. Assistant U.S. Attorney Xavier O. Carter is prosecuting it.

"OLMS aggressively investigates allegations of financial mismanagement by union officers," said Hollis Lindley Jr., the investigator with the Office of Labor-Management Standards. "Union members have an expectation that their elected officers are using the union funds for legitimate union purposes. This particular case was severe in the amount of money stolen and in the degree of concealment."

Scandals at the Central Alabama Veterans Healthcare Systems led to James Talton, the system's director, being removed from his position last year.