Hasan Zahdeh, Embezzlement of Labor Union Funds, Michigan 2021

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Muskegon Man Sentenced to Prison for Embezzling Labor Union Funds

GRAND RAPIDS, MICHIGAN – In a shocking case of union corruption, a Muskegon man has been sentenced to a year and a half in prison for embezzling hundreds of thousands of dollars from the Michigan Union of Healthcare Workers.

Hasan Zahdeh, a former resident of Muskegon, was sentenced to 14 months in federal prison by United States District Court Judge Paul L. Maloney. Zahdeh was also ordered to pay $140,498.03 in restitution to the Michigan Union of Healthcare Workers and serve three years of supervised release following his prison term.

According to court documents, Zahdeh embezzled union funds by using the union’s debit card and writing checks to pay for personal expenses such as international travel, utility bills, home maintenance, and communication bills. The embezzlement scheme lasted from May 2017 to November 2020, during which time Zahdeh served as president of the Michigan Union of Healthcare Workers.

The investigation into Zahdeh’s embezzlement was sparked by a tip from the Department of Labor Office of Labor-Management Standards (DOL-OLMS) after they determined that the union’s annual report filed by Zahdeh contained inaccurate information. A grand jury indictment was returned in January 2021, charging Zahdeh with embezzlement and theft of union funds.

In April 2021, Zahdeh entered into a plea agreement in which he admitted to falsifying union records, writing checks to the union’s attorney and depositing them into his personal bank account, and using union funds for personal expenses.

U.S. Attorney Andrew Birge praised the efforts of the Department of Labor Office of Labor-Management Standards and the U.S. Attorney’s Office for the Western District of Michigan in bringing Zahdeh to justice. “When union officers such as Hasan Zahdeh abuse their authority and line their own pockets, my office will pursue justice, including restitution where appropriate,” Birge said.

The case is a stark reminder of the importance of transparency and accountability in labor unions. It also highlights the importance of cooperation between law enforcement agencies in rooting out corruption and bringing perpetrators to justice.