I LA PRESIDENT ARRESTED BY FRI
Sloan Claims Innocence On Union
Embezzl
BY SUSAN USHER
ement, Fraud Cha
rges
Maintaining he is innoccnt, Willie
E. Sloan of Leland announced his
intent last week to continue as presi
dent of the International Longshore
man's Association local in Wilming
ton last week following his arrest by
the FBI on alleged federal labor law
violations and embezzlement of
union funds.
Sloan, 52, surrendered voluntarily
to FBI agents last Thursday. He is
president of ILA Local No. 1426
and a former Brunswick County
commissioner, having served from
Dcccmbcr 1974 until December
1978. He has been president of the
local for approximately 14 years.
In a prepared statement, Sloan re
sponded to the 10-count indictment
by stating that he is "ready and anx
ious" to defend the charges, which
he said arc unfounded and stem
from "bitter rivalries" within the
union leadership.
"Political rivals of mine within
Local No. 1426 have decided that
sincc they are unable to take control
of the union because of a lack of
support within its members, they
will attempt to destroy me" using
lies and distortions, according to his
statement.
Sloan was released under an unse
cured bond of SI00,(XX) after ap
pearing before U.S. Magistrate Will
iam Norton Mason.
According to U.S. Attorney
James R. Dcdrick, the indictment
followed an investigation by the FBI
and by the U.S. Department of Lab
or Office of Labor Racketeering. It
alleges violations of the Taft-Hartley
Act, embezzlement and misapplica
tion of union funds, and defrauding
the union membership of their right
to the honest services as their union
president.
The Taft-Hartley Act regulates
collective bargaining agreements for
unions. The alleged violation of that
act revolves around an alleged con
flict of interest related to Sloan's
ownership in and control of SRAC
CO Inc., a Route 2, Lcland-bascd
trucking firm that transported grape
fruit from Cape Fear Bonded
Warehouse in Wilmington to ships
docked at the North Carolina State
Port in Wilmington during the 1986
87 and 1987-88 grapefruit seasons.
Sloan was a director of and regis
tered agent for the firm.
Typically the union approves a
collective bargaining agreement
with a shipping company, then uses
a rotation system that gives each
union longshoreman a fair opportu
nity to obtain work. Longshoremen
typically load and unload cargo or
shipping containers.
According to the indictment,
Sloan deviated from the work rules
of the agreement then in effect for
the purpose of obtaining the truck
ing contract with Sea Gal Express
Inc. and Baltic-American Lines. He
allowed the two firms to hire certain
members of the union on a perma
nent basis at the same time SRAC
CO Inc. had a trucking contract with
the corporations. The alleged action
deprived other union members of
the opportunity to be so employed.
Between approximately Decem
ber 1986 and May 1988, Sloan al
legedly received monetary payments
and other things of value totaling
SI 14,850 from an employer and per
sons acting in the interest of an em
ployer.
A mail fraud charge concerns a
number of allegations, including one
that Sloan improperly manipulated a
recent union election to perpetuate
his control of the union "so that he
could utilize his office to further his
personal gain and private business."
Sloan was elected to a fifth term
as president on Oct. 8, 1991, amidst
argument over his proposal to en
large union membership. He was
challenged by union member Will
iam Freeman.
The indictment alleges that
around Oct 1, 1991, Sloan sent
through the mail a notice of the
union election scheduled Oct. 8,
Other alleged illegal efforts to de
fraud the union include threatening
members with loss of work, provid
ing supporters with work in viola
tion of the local's work rules and
making unauthorized payments to or
on behalf of supporters, improperly
excluding new members to continue
his control.
The alleged misapplications or
embezzlement of union funds were
as follows:
?One couni of using $9,000 in
union money between Sept. 26,
1991, and Nov. 23, 1992, to obtain
furniture for his personal use.
?Three counts of collecting three
weeks of vacation pay to which he
was not legally entitled, 51,500 in
December 1988, SI,384 in Decem
ber 1989 and $1,360 in December
1990.
?Two counts of spending unautho
rized union travel money to take
other union members to union con
ferences. The indictment says that
Sloan spent S510 on May 27, 1992,
for union member Luther Jordan,
who was elected to the state Senate
in November, to travel with him. On
Sept. 27, 1991, he allegedly spent
approximately the same amount of
unauthorized travel funds to take
John McCoy to a conference.
?One count of obtaining unautho
rized payment of S668.85 in union
money for a fence for a relative,
Henry Sloan.
?One count of obtaining unautho
rized payment of 51,767.50 to ob
tain T-shirts, which were supplied to
Local No. 1426 by Mr. Joe's Logos.
The maximum penalty for each of
the 10 counts, upon conviction,
would be five years imprisonment, a
S250.000 fine, or both, with a super
vised release term of three years.
According to Sloan, any expendi
tures were authorized either by the
local's membership or its executive
board, with documentation in union
records. He said he has never taken
funds for person use other than those
to which he is entitled or allowed
them to be used for purposes other
than to benefit the union.
Sloan wrote in his statement, "As
1 have done nothing but work hard
to bring success and pride to my
union and family, 1 have no doubt
that when I am judged by my peers
and both sides of this matter arc
heard that 1 will be found innocent
of these charges."
PEOPLE IN THE NEWS
Hilts Deployed On Carrier
Navy Petty Officer 1st Class
Christopher S. Hilts, son of Donna
M. Doling of Leland, recently de
ployed aboard the aircraft carrier
USS Theodore Roosevelt Battle
Group.
The group will relieve the carrier
USS John F. Kennedy BatUe Group
which deployed in Octobcr 1992.
The 1983 graduate of Herkimer
High School, Herkimer, N.Y., joined
the Navy in May 1985.
Reports To Ft. Bragg
Army Capt. Larry E. Bush has ar
rived for duty at Fort Bragg.
Bush's wife Bichson is the daugh
ter of Henry and Tarn Stevenson of
Southpcrt.
An adjutant, he is the son of
Charlie O. and Vera A. Bush of Col
quitt, Ga.
The captain is a 1973 graduate of
Miller County High School, Col
quitt, and a 1984 graduate of Albany
State College, Ga.
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