TDU                                           

Teamster Anti-Corruption Czar Resigns

Says “Organized crime again threatens the union”
Says Hoffa  undermined anti-corruption efforts
Obstruction of investigations of Hoffa allies caused resignation

Citing a pressure campaign from Teamster General President James Hoffa’s office that undermined investigations into corruption and organized crime, Edwin Stier has resigned from his post as director of the Hoffa administration’s internal anti-corruption program, Project RISE. 

In a sharply worded resignation letter, former federal prosecutor Stier said, “I can no longer permit my presence in the union to act as an endorsement of [Hoffa’s] sincerity.”

Stier’s letter accused Hoffa of undermining investigations into organized crime influence, corruption and misconduct that implicated his close associates—including investigations into conduct in the General President’s office.

Cover-up of organized crime in Chicago: Stier prepared a detailed report on organized crime in the Teamsters in Chicago. Hoffa not only failed to act on the report but, according to Stier, the investigation was derailed by the General President’s office “on behalf of individuals whose interests were threatened” by the investigations. To this day, Stier’s report on organized crime in the Chicago Teamsters has never seen the light of day.  Stier informed the union’s General Counsel that “a coordinated effort was underway to shut down [Project RISE’s] efforts in [Chicago] and that the power of the union itself was being used to achieve that objective.” But the pressure campaign to undermine the investigations continued.

 Embezzlement in Houston: Hoffa refused to take action against Teamster Local 988 officials accused of embezzlement and other violations in what Stier called, “a corruption case, the magnitude of which dwarfs any in recent years.” Stier says Hoffa dragged his feet on the case until the Independent Review Board (IRB) forced Hoffa’s hand by recommending a trusteeship—“leaving the clear impression that the union is slow to react to corruption issues and is insensitive to witnesses’ justifiable fears of retaliation.”

As the pressure campaign mounted, Stier announced that he would prepare a “comprehensive report on the investigations” and a recommended “course of action” so Hoffa could “restore the credibility of the anti-corruption program or remain passive.” But Hoffa refused to meet with Stier. 

“Based upon Jim Hoffa’s reaction to our report, in which we have made it clear that we have substantial reliable information that organized crime again threatens the union, I have become convinced that my continued efforts and those of our investigators to create a an anti-corruption program for the Teamsters Union would be futile,” Stier’s letter said.

“Hoffa wanted Stier for PR purposes but when Project RISE wanted to act against corruption that struck close to home, Hoffa pulled the plug,” said Tom Leedham, Secretary-Treasurer of Oregon Local 206 who ran for Teamster General President against Hoffa in 2001.  “We said all along that the test of Project RISE or any anti-corruption program was whether the General President would act against corruption even when that corruption implicates top officials or political associates. Hoffa failed that test.”

Stier’s resignation is a blow to Hoffa’s expensive public relations campaign to position himself as a president capable of running a clean union. Stier’s letter reveals for the first time the immense cost of Project RISE—$15 million—a program launched with great fanfare in 1999 as Hoffa’s alternative to government oversight of the union. Hoffa hired Stier, a former federal prosecutor who earned wide praise for anti-corruption efforts in the mob-dominated New Jersey Local 560, as part of a lobbying effort to convince the Bush Administration to end government oversight of the union.

In the wake of Stier’s investigation, the issues raised in Project RISE’s investigative reports are being referred to the IRB and the Department of Labor—except the investigation into conduct within the General President’s office, which will be handled by a lawyer selected by Hoffa himself.

 “Of all the matters discussed in our report this is the one that most requires referral to the IRB,” Stier says. “Jim Hoffa will likely be a witness as will others with whom he has had long-standing close personal relationships.”

The IRB was established pursuant to the Teamsters Union's 1989 racketeering consent order. The three IRB members are jointly appointed by the union leadership and the Justice Department, and have the power to hold hearings regarding union corruption and remove officials found to be corrupt.  Hoffa has made the union's number one political goal to end the IRB, and end impartial supervision of union elections.  RISE was established in 1999 with the goal of becoming the internal union structure that would replace the IRB.

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Excerpts from Edwin Stier’s resignation letter

“Based upon Jim Hoffa’s reaction to our report, in which we have made it clear that we have substantial reliable information that organized crime again threatens the union, I have become convinced that my continued efforts and those of our investigators to create an anti-corruption program for the Teamsters Union would be futile.” [pg. 6]

“In spite of our efforts to convince General President Jim Hoffa to remain committed to fighting corruption, I have concluded that he has backed away from the Teamsters’ anti-corruption plan in the face of pressure from a few self-interested individuals. Because the General President plays such a critical role in enforcing standards of conduct within the union, my position has now become untenable.  I can no longer permit my presence in the union to act as an endorsement of his sincerity.” [pgs. 1-2]

“[Hoffa] has permitted anti-corruption investigations to be undermined to a degree that honest Teamsters who came forward with information believing that the union would protect them, now feel abandoned.  They are convinced that once again those who have influence in the General President’s office have immunity.” [pg. 4]

“[T]he pressure to undermine our investigations intensified to a point where I finally informed the General Counsel that I felt compelled to prepare a comprehensive report on the investigations and recommend a course of action. Jim Hoffa would then have a clear choice of whether to take the steps necessary to restore the credibility of the anti-corruption program or remain passive. While the report was being written, the pressure against us increased and I began to receive calls informing me that the General President’s office was circulating information that Project RISE was being shut down.” [pg. 5]

“The General Counsel and I agreed that when the report was submitted, I would meet with Jim Hoffa and others to discuss further action. No such meeting occurred. Jim Hoffa has refused to meet with me. Instead he has surrounded himself with political consultants and lawyers.” [pg. 5]