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Union Insider Pleads Guilty to $332,500 Fraud Scheme
BUFFALO, N.Y. – In a shocking turn of events, Frank Aquila, 76, a former union negotiator from Amherst, New York, has pleaded guilty to a massive $332,500 fraud scheme involving the Buffalo Educational Support Team (BEST), a union representing approximately 900 teacher’s aides and assistants in the City of Buffalo School District.
Aquila, who served as the chief negotiator for BEST during the 2008 collective bargaining negotiations with the City of Buffalo School District, used his position to embezzle funds from the union. The scheme, which lasted from March 2006 to December 2011, involved Aquila refusing to reach a final agreement with the district until certain conditions were met.
According to Assistant U.S. Attorney Russell T. Ippolito, Jr., Aquila demanded that the district agree to allow BEST to select its own insurance broker, make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST, and make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members.
What’s more, Aquila failed to disclose to the district or BEST that he would share in the commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members.
The plea is the culmination of an investigation by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office.
Aquila faces a maximum sentence of 20 years in prison, a fine of $250,000 or both. Sentencing is scheduled for January 28, 2015, at 9:00 a.m. before Chief U.S. District Judge William M. Skretny.
The case serves as a stark reminder of the importance of transparency and accountability in union leadership. As the investigation reveals, even the most trusted officials can be tempted by the promise of easy money.
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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