
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, February 1, 1991                   TAG: 9102010350
SECTION: BUSINESS                    PAGE: B4   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

TEAMSTER PRESIDENT ACCUSED AS RACKETEER

Teamster President William McCarthy was accused of racketeering Thursday by a court-appointed officer for allegedly awarding $3.8 million in union printing business to a company owned by his son-in-law and trying to obstruct an official investigation of the matter.

The charge was among several leveled in a scathing report to a federal judge by union administrator Frederick B. Lacey, who said McCarthy's "preferential treatment" of his relative "breaches [his] fiduciary responsibility" to rank-and-file union members.

Lacey said the company operated by McCarthy's son-in-law, Thomas Treacy of Sudbury, Mass., had no printing equipment. He said the $3.8 million printing contract, the single biggest piece of Teamster business, was symptomatic of "the pervasive nepotism . . . to be found at every level of the International Brotherhood of Teamsters and its affiliates."

McCarthy also lost a showdown with his general executive board Thursday, triggering threats of a new purge within the top ranks of the union.

In a move engineered by union Vice President R.V. Durham, a candidate to replace McCarthy in this year's Teamsters elections, the board rejected the nomination of Al Barlow, McCarthy's hand-picked candidate for a vacant seat on the board. The vote came at the last day of a three-day board meeting in Palm Springs, Calif.

McCarthy, who was appointed by the union's executive board in July 1988 to succeed the late Jackie Presser, has announced he will not seek re-election. - Los Angeles Times

by CNB