dictionary

Former Teamsters President Ron Carey

By Phil Hirschkorn
CNN New York Bureau

NEW YORK (CNN) -- The secretary to Teamsters President Ron Carey in 1996 told a federal jury Wednesday how Carey approved a series of political donations that led to his downfall.

Monie Simpkins suggested Carey probably knew how the fund-raising scheme -- an illegal cash swap -- benefited his 1996 re-election bid, but she later said Carey did not try to get her to cover it up.

In a two-week period in fall 1996, the Teamsters gave $885,000 to four political groups -- Citizen Action, the National Council of Senior Citizens, Project Vote and the AFL-CIO. The groups then channeled funds to the Carey campaign or the consulting group working for it.

Simpkins told the jury she was unwittingly an agent of the scheme.

Simpkins said Carey campaign manager Jere Nash told her in October 1996 that "individuals in the organizations the Teamsters would be making contributions to would be making contributions to Mr. Carey's campaign."

Simpkins said Nash asked her to expedite Carey's approval for each Teamsters contribution. She told the jury she never thought anything was wrong with the donations.

"He [Nash] said the attorneys had approved this and it was perfectly fine," she testified.

Simpkins said she told Carey about her discussion with Nash but that the union boss moved to another subject.

Conferring with Carey as he was frequently traveling, Simpkins obtained his approval over the phone. Documents introduced as evidence showed "RC/MS" -- the initials of Carey and Simpkins -- and the date of the calls.

Carey, who denies knowing of the cash swap scheme, is charged with lying about it on seven occasions before government investigators and a grand jury.

Simpkins said that once the scheme came to light Carey was "encouraging to tell the truth."

Loyal to Carey, Simpkins testified that she "did feel if he knew about the scheme he would have stopped it."

The fund-raising spree was designed to pay for a $700,000 direct mail campaign targeting the union's 1.4 million members.

Nash and four other Carey aides behind the scheme have pleaded guilty to various charges. Nash testified as part of his cooperation agreement to avoid prison. He faces a maximum of 10 years.

LEGAL RESOURCES Latest Legal News Law Library FindLaw Consumer Center Select a topic Bankruptcy Discrimination Divorce Estate Planning Landlord-Tenant Personal Injury Taxes

Earlier in the day, Nash completed his testimony by telling the jury he believed in 1996 that Carey might not have been as clean as his reputation.

On redirect examination by Assistant U.S. Attorney Debbie Landis, Nash said he had discussed with Carey soliciting campaign contributions from other labor union leaders -- a violation of Teamsters election rules.

Nash said Carey never questioned the tens of thousands dollars received from top officers of the AFL-CIO, the American Federation of State County and Municipal Employees, and the Service Employees International Union.

AFL-CIO Secretary-Treasurer Richard Trumka alone funneled $50,000 to Carey's campaign, much of it in cash, according to Nash.

"Did he ever indicate any confusion or lack or understanding of what the two of you were talking about?" Landis asked.

"No," Nash said.

Nash said he further doubted Carey's commitment to reform principles when he added some men with "reputations for dishonesty" to his slate of candidates for lower offices.

"He was willing to compromise to win the election," Nash said.

Carey narrowly won the election over challenger James P. Hoffa. But after election monitors discovered the improper fund raising, they nullified his victory and barred Carey from the rerun, won by Hoffa, the current union president who is seeking re-election later this year.

Hoffa is seeking to release the Teamsters from the government supervision it has been under since settling a racketeering suit in 1989 to free the union from the influence of organized crime.