Former Postal Worker Indicted in $92K+ Union Fund Heist

SAN JUAN, P.R. – Amalia López-Santiago, a former treasurer of the American Postal Workers Union (APWU) Local 1070, is facing serious federal charges after a grand jury indicted her for allegedly pilfering over $92,965.89 from the union’s coffers. The indictment, returned on December 28, 2016, accuses López-Santiago of a calculated scheme to line her own pockets at the expense of the workers she was entrusted to serve.

The charges are extensive: one count of embezzlement of union funds, one count of false statements to the federal government, one count of aggravated identity theft, and four counts of wire fraud. Federal investigators allege that from January 2008 through June 2, 2012, López-Santiago authorized improper salary payments and wage reimbursements to herself, totaling approximately $77,543.30 – funds she wasn’t entitled to under the Union’s own rules.

But the alleged theft didn’t stop at inflated paychecks. The indictment details how López-Santiago allegedly used the Union’s credit card to rack up over $15,422.59 in personal purchases at a local wholesale supermarket. She then allegedly covered these expenses with payments from the APWU Local 1070 bank account, effectively using union members’ money for her own benefit. To further conceal her actions, she is accused of falsifying the Union’s annual financial reports for 2008, 2009, 2010, and 2011.

“The United States Attorney’s Office, in partnership with our fellow federal investigative agencies, will continue to investigate and prosecute union officials who abuse their positions of trust,” stated U.S. Attorney Rosa E. Rodríguez-Vélez. “Let this be a clear message, that stealing and embezzling from labor unions carries serious penalties and consequences, including prison and fines.”

Federal officials are sending a clear message that such betrayal won’t be tolerated. Andriana Vamvakas, District Director of the Department of Labor’s Office of Labor-Management Standards (DOL-OLMS), emphasized that embezzlement “doesn’t only violate the law, it also betrays the trust of the union membership.” Douglas A. Leff, Special Agent in Charge of the FBI’s Puerto Rico Field Office, added, “Those who defraud civil organizations…will face the strength and reach of the criminal justice system.”

The case, investigated jointly by DOL-OLMS and the FBI, is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit. If convicted on all charges, López-Santiago faces a potential prison sentence of up to five years for the embezzlement and false statements, a mandatory minimum of two years for aggravated identity theft, and additional time for the wire fraud counts. The full extent of the penalties will be determined by the court.