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AK union member admits stealing $16K in co-workers' checks.

By Dave Greber

Staff Writer

Wednesday, January 14, 2009

CINCINNATI — The man who admitted to stealing thousands of dollars from his co-workers during one of the largest labor disputes in the country of its time will have to wait until April to find out his punishment.

Jeffrey Baker, a former employee of AK Steel Corp., pleaded guilty in October to federal charges that he forged and cashed more than 100 union checks — totaling more than $16,000 — that didn't belong to him. The checks were being distributed by the International Association of Machinists and Aerospace Workers Local Lodge 1943 as part of the union's defense fund to assist out-of-work members.

Baker, who appeared Wednesday, Jan. 14, in U.S. District Court, faces a maximum penalty of one year in prison and one year probation. He will be sentenced April 7.

As part of the plea agreement, Baker was ordered to pay to the union restitution of $16,050 — a check of which was turned over to the union Wednesday — and he also gives up his right to appeal his sentence.

Baker was charged in October, with one count of falsifying records maintained by a union and aiding and abetting falsifying records maintained by a union. Soon after, he and the U.S. Attorney Office reached a plea deal on the misdemeanor charge of falsifying record.

"He's accepted full responsibility and he's made full restitution," said Baker's attorney David Chicarelli, of Franklin. "He's sorry he did it."

Chicarelli declined to answer a question about why Baker stole the checks and forged signatures other than his own.

Officials from the U.S. Attorney Office said last month Baker escaped felony charges because he was not a member of the union's executive committee. However, he was one of the members appointed by the local union's executive committee to pass out the $150 defense fund checks.

The lockout between AK Steel and its hourly work force lasted from March 1, 2006, to March 14, 2007. From August 2006 through February 2007, the Machinists International union provided weekly defense fund checks to its members.

Current and former members of the union's executive committee have denied the thefts were widespread. Still, IAM Local Lodge 1943 President Scott Rich has described the situation as "taking money from the collection plate."

He said Wednesday he was pleased that full restitution had been made, "but certainly, I wish this never would have happened."

Rich, who said he's known Baker for nearly three decades, and Neil Douglas, the local union's vice president, provided statements to the court in advance of sentencing.

"This just affected our representatives and our members' distrust in the executive board and union as a whole," Douglas told U.S. District Magistrate Judge Timothy S. Hogan. "It made us look bad to the international and the community."

Rich said he and other executive committee members understand some rank-and-file members believe the case goes beyond Baker, and that additional members were involved.

Rich said he firmly believed that was not the case, and officials from the Department of Labor confirmed Wednesday their investigation was now complete.

Contact this reporter at (513) 820-2112 or dgreber@coxohio.com.

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