A union manager’s greed has finally caught up to him. Michael J. Carney, 63, of Ashburn, Virginia, pleaded guilty to one count of conspiracy to commit honest services wire fraud and theft and embezzlement of labor union funds before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for Oct. 18, 2019.
According to court documents, Carney is a former facilities and real estate manager for a large, international union located in Herndon, Virginia. Between in or about May 2012 and at least in or about mid-2015, Carney received tens of thousands of dollars in kickbacks from a heating, ventilation, and air conditioning (HVAC) company located in Maryland, in exchange for the awarding of the union’s HVAC service agreements and maintenance contracts.
The benefits included high-end outdoor kitchen and free HVAC and plumbing services for Carney and a relative over a multi-year period. With Carney’s knowledge, the president and majority owner of the HVAC company, Howard W. Janoske, and his subordinates submitted inflated and fraudulent invoices to the union to recoup expenses for these personal benefits. Janoske pleaded guilty to a similar charge on March 1, 2019, and is awaiting sentencing.
The investigation was conducted by the Department of Labor’s Office of Inspector General and the Office of Labor Management Standards. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section is prosecuting the case.
Carney’s crimes were a betrayal of the trust placed in him as a union manager. His actions undermined the very purpose of the union, which is to protect and advocate for its members. The people of Virginia deserve better from their union leaders.
The case is a reminder that corruption will not be tolerated in our society. Those who abuse their power and break the law will be held accountable.
In addition to his guilty plea, Carney faces significant penalties, including the possibility of prison time and fines. The exact amount of the fines is not specified in the plea agreement.
Key Facts
- State: Virginia
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
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