Robert Smith, III, 49, of Virginia Beach, is headed to federal prison for stealing more than a million dollars from the union he was sworn to serve. The former Business Agent and Financial Secretary of the International Longshoremen’s Association (ILA) Local 970 was sentenced to 41 months behind bars for a decade-long embezzlement scheme that bled the union dry.
Smith, once trusted with the financial integrity of a union representing workers at the Port of Virginia, instead used his position to fuel a personal spending spree. From March 2006 through April 2016, he siphoned off $1,072,669.10 in union dues and initiation fees paid by members and employers. The cash was meant to support labor protections and benefits — but Smith treated it as his private bank account.
Court documents reveal the brazen scope of his theft. Smith deposited union funds into official accounts, then withdrew over $700,000 in cash — much of which supported a drug habit. The rest went to personal credit card bills, gas, groceries, clothing, toys, entertainment, and home improvements. He lived large while rank-and-file members worked the docks, unaware their dues were vanishing into his pockets.
Smith pleaded guilty on October 14, 2016, admitting to the charges without contest. His betrayal came to light after a joint investigation by federal authorities who traced the missing funds through bank records and internal union audits. The FBI, Department of Labor’s Office of Inspector General, and Labor-Management Standards all played key roles in exposing the scheme.
At sentencing, U.S. District Judge Mark S. Davis handed down a 41-month prison term, followed by three years of supervised release. Smith was also ordered to pay full restitution: $1,072,669.10. Prosecutors, led by Assistant U.S. Attorney Melissa E. O’Boyle, argued the theft undermined the very foundation of worker solidarity the union was built to protect.
The case was announced by Dana J. Boente, then U.S. Attorney for the Eastern District of Virginia, along with FBI Norfolk Chief Martin Culbreth and Labor Department inspectors. It’s now a matter of public record in the Eastern District of Virginia under Case No. 2:16-cr-134, a permanent stain on Smith’s name — and a warning to others who think union treasuries are theirs for the taking.
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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