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Ex-union business manager pleads guilty in extortion scheme

Posted at 2:57 PM, Aug 18, 2017
and last updated 2017-08-18 14:57:54-04

A Florida man who was a high-ranking official at a Michigan labor union has pleaded guilty in a scheme to force union employees to pay $5,000 in kickbacks.

The government says the money was supposed to cover union election expenses. Instead, John Hamilton used it for his own benefit, including $5,000 as a wedding gift for his daughter. He appeared in Detroit federal court on Friday.

Hamilton was business manager at Operating Engineers Local 324, based in suburban Detroit. Authorities say he kept $71,000 and gave $35,000 each to two allies after losing re-election in 2012.

The 62-year-old Hamilton lives in Riviera Beach, Florida. Two other former officials have pleaded guilty, including Steve Minella, who was president.

Local 324's website says it has 14,000 members in Michigan.