Federal prosecutors say a group of five New York City trucking company employees worked together to steal $5 million from a union.
According to the Department of Transportation Office of Inspector General, John Farnsworth, 60, controlled four trucking companies and worked with four individuals placed in roles at the companies to enter into union contracts with the International Brotherhood of Teamsters Local 282.
While the companies were paid union wages of $30 an hour for drivers as well as benefits for the employees, much of the work performed was done by the non-union companies – in which drivers weren’t paid union wages. The five charged individuals allegedly pocketed the difference.
The companies – Greenwood 2 LLC, Rainbow Transportation Corp., and Nicholas J. LLC and Marky O’G LLC – performed work on projects receiving DOT grant funds, including the New York City Second Avenue Subway project and the World Trade Center Transportation Hub project.
Nicholas Farnsworth, 34, Toni Thomson, 30, Stephen Tripodi, 48, and William Taylor, 46, also face charges for embezzlement and fraud.
The investigation was completed jointly with the U.S. Department of Labor – Office of Labor Racketeering, Fraud Investigations and Employee Benefits Security Administration; the Port Authority New York & New Jersey OIG; Internal Revenue Service; Metropolitan Transit Authority OIG; and the New York City Business Integrity Commission.
The investigation began after Greenwood 2 sent the city Commission a registration application for trade waste removal in March 2009.