2014 01-06 PLD-4AC - final - Local 12 - Cerritos Community News

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Case 2:12-cv-10506-DDP-VBK Document 145-1 Filed 01/06/14 Page 1 of 290 Page ID #:1903

EXHIBIT "A"

Case 2:12-cv-10506-DDP-VBK Document 145-1 Filed 01/06/14 Page 2 of 290 Page ID #:1904

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1 J. Mark Moore, State Bar No. 180473

jmm@

2 H. Scott Leviant, State Bar No. 200834

hsl@

3

MOORE & LEVIANT LLP 20700 Ventura Blvd., Suite 140

4 Woodland Hills, CA 91364

Telephone: (877) 360-7020

5 Facsimile: (310) 870-7020

6

Jeffrey K. Berns (SBN 131351) jberns@

7 Albert G. Lum (SBN 259053)

alum@

8 BERNS WEISS LLP

20700 Ventura Blvd. Suite 140

9

Woodland Hills, CA 91364 Telephone: (818) 961-2000

10 Facsimile: (818) 999-1500

LeelwAe. iWsse@isbse(randsmweititsesd.cpormo hac vice) BERNS WEISS LLP 585 Stewart Avenue, Suite L-20 Garden City, NY 11530 Telephone: (516) 222-2900 Facsimile: (818) 999-1500

11 Attorneys for Plaintiffs

12

UNITED STATES DISTRICT COURT

13

CENTRAL DISTRICT OF CALIFORNIA

14

15

MARIO SALAS, individually, and on Case No.: 12-cv-10506 DDP (VBKx) behalf of all others similarly situated;

16 MELVIN CHAMBERLAIN,

individually, and on behalf of all

CLASS ACTION

17 others similarly situated;

ALBIN WATSON, individually, and FOURTH AMENDED CLASS

18

on behalf of all others similarly situated;

ACTION COMPLAINT

19

JOHN PAXIN, individually, and on behalf of all others similarly situated;

DEMAND FOR JURY TRIAL

20

Plaintiffs,

21

vs.

22

INTERNATIONAL UNION OF

23 OPERATING ENGINEERS, a trade

union;

24

WILLIAM C. WAGGONER, an individual;

25 VINCE GIBLIN, an individual;

26

27

28

Page 1 FOURTH AMENDED CLASS ACTION COMPLAINT

Case 2:12-cv-10506-DDP-VBK Document 145-1 Filed 01/06/14 Page 3 of 290 Page ID #:1905

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1 JAMES T. CALLAHAN, an

individual;

2 RUSSELL E. BURNS, an individual;

PATRICK L. SINK, an individual;

3

PATRICIA M. WAGGONER, an individual;

4 BERT TOLBERT, an individual;

MICKEY J. ADAMS, an individual;

5 RON SIKORSKI, an individual;

DAN BILLY, an individual;

6

DAN HAWN, an individual; LARRY DAVISON, an individual;

7 C. W. POSS, an individual;

WALT ELLIOT, an individual;

8 MICHAEL CRAWFORD, an

individual;

9

BRUCE COOKSEY, an individual; MIKE PRLICH, an individual;

10 DON BOURGUIGNON, an

individual;

11 KENNETH BOURGUIGNON, an

individual;

12

PAUL VON BERG, an individual; JIM HULSE, an individual;

13 MIKE GOMEZ, an individual;

OPERATING ENGINEERS FUNDS

14 INC. a non-profit corporation;

KENNETH D. WAGGONER, an

15

individual; CHRIS LAQUER, an individual; and

16 DOES 1 through 10, inclusive,

17

Defendants.

18

19

20

21

22

23

24

25

26

27

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Page 2 FOURTH AMENDED CLASS ACTION COMPLAINT

Case 2:12-cv-10506-DDP-VBK Document 145-1 Filed 01/06/14 Page 4 of 290 Page ID #:1906

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TABLE OF CONTENTS

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3 TABLE OF CONTENTS ....................................................................................... i

4 I. INTRODUCTION ..........................................................................................1

5 II. JURISDICTION AND VENUE......................................................................2

6 III. THE PARTIES ...............................................................................................3

7

A. Plaintiffs .....................................................................................................3

8

B. Defendants..................................................................................................4

9

1. The IUOE, the GPs, Senior GEB Members and William

10

Waggoner............................................................................................ 4

11

2. Officers and Other Fiduciaries of Local 12........................................6

12

3. Non-Union Trustees for the Local 12-Affiliated Employee

13

Benefit Plans.......................................................................................7

14

a) The Employee Benefit Plans...................................................7

15

b) Management-Side Trustee Defendants .............................. 12

16

4. Other Defendants .............................................................................. 15

17

C. Significant Non-Parties ............................................................................ 16

18 IV. STATEMENT OF FACTS ...........................................................................17

19

A. The IUOE ................................................................................................. 17

20

B. The Union IUOE and Local 12 Defendants Have For Years

21

Illegally Required Employee Class Members To Make Mandatory

22

Contributions from Their Wages to Political and/or Union Slush

23

Funds ........................................................................................................ 19

24

1. Defendant Waggoner Has Forced Plaintiffs and Other

25

Employees of Local 12 and Its Related Entities, including

26

OETT and OEFI, to Contribute to The BA's Fund..........................19

27

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Page i FOURTH AMENDED CLASS ACTION COMPLAINT

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2. All Employees of Local 12 and Its Affiliated Trusts, Other

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Than Some Clerical Workers, Must Pay a Portion of their

3

Compensation to Local 12 As Purported "Union Dues" Despite

4

Not Being Covered By Any Collective Bargaining Agreement ......25

5

3. IUOE, With the Willing Assistance of Its First Vice President,

6

Defendant Waggoner, Forced Union Members, Plaintiffs and

7

Class Members Serving As Officers or Employees of Local 12

8

to Contribute to a Political Action Fund ..........................................26

9

a) The Scheme to Extort Employee Contributions ................26

10

b) The Scheme to Extort Member Contributions ...................30

11

C. The Defendant Trustees and Trust Fund Fiduciaries Breached

12

Their Fiduciary Duties and Violated ERISA in Many Respects .............33

13

1. Defendant-Trustee William Waggoner Wrote Off or Declined

14

to Collect Millions of Dollars of Employer Debts Without

15

Obtaining Approval of a Majority of the Trustees When the

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Debts Were Owed by Employers Management-Side Trustees or

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Employers Favored by Waggoner or His Long-time Close

18

Associate, OEFI Funds Manager Leo Majich .................................. 34

19

a) Leo Majich and Majich Bros. ................................................35

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b) Defendant C.W. Poss and C.W. Poss, Inc...........................36

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c) The Millions of Dollars of Unpaid Contributions in

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the "Secret" Files .....................................................................38

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2. Misconduct and Embezzlement as to the Training Trust .................39

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a) Waggoner and Other Local 12 Defendants Embezzled

25

Property Purchased by OETT and Embezzled OETT

26

Labor ........................................................................................ 39

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Page ii FOURTH AMENDED CLASS ACTION COMPLAINT

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