Michael Lackey Indicted in $69K Union Fund Heist

Michael Lackey, 43, of Bremen, Ga., is staring down federal prison time after a nine-count indictment accused him of looting $69,194 from the Communications Workers of America, Local 3901, in Oxford, Ala. The former union president allegedly ran a years-long scheme to siphon cash from union accounts at Wells Fargo and Regions Bank for personal use, federal prosecutors announced today.

Lackey, who served as Local 3901 president from October 2008 to October 2014, held sole control over the union’s finances. Prosecutors say he abused that power between February 2010 and October 2014 by writing checks to himself for fake travel expenses, making unauthorized cash withdrawals, and using union-issued debit cards for personal spending—actions that constitute bank fraud and embezzlement of labor union funds.

The indictment, unsealed in U.S. District Court in Birmingham, details how Lackey bypassed internal controls and federal requirements by failing to keep records of his transactions and avoiding approval processes mandated by both federal law and the union’s own bylaws. The U.S. Department of Labor’s Office of Labor-Management Standards led the investigation, uncovering a paper trail of deception that spanned nearly five years.

Charges include three counts of bank fraud, each carrying a maximum penalty of 30 years in prison and a $250,000 fine. The four counts of embezzlement each carry up to five years in prison and a $10,000 fine. Two additional counts for failure to maintain labor union records threaten up to one year in prison and a $10,000 fine per count.

Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting the case, which paints a damning portrait of a union leader who allegedly treated worker dues like a personal piggy bank. “Union officials are entrusted to safeguard the financial interests of their members,” said U.S. Attorney Joyce White Vance. “We will not tolerate betrayal of that trust.”

Lackey remains presumed innocent until proven guilty in court. The indictment marks the latest in a string of federal crackdowns on labor fund mismanagement in the Southeast. A trial date has not yet been set.