Demian D. Schroeder 14 Meadow Street Brooklyn, NY 11206 March 20, 2013 BY HAND The Honorable Richard M.

. Berman United States District Judge Daniel Patrick Moynihan United States Courthouse 500 Pearl Street New York, NY 10007-1312 Re: United States of America v. District Council of New York City and Vicinity of the United Brotherhood of Carpenters and Joiners of America, et al., Case 1:90-cv-05722-RMB-THK Dear Judge Berman: In regard to the execution of the District Council/Wall-Ceiling contract (CBA) dated March 12, 2013 as set forth by the Court's March 13, 2013 Order [Document 1255] I submit for Your Honor subsequent observations relevant to the Case: During the District Council Delegate Body meeting of March 12, 2013 Delegate John Musumeci of Local Union 157 brought to the attention of EST Michael Bilello two discrepancies within the Wall- Ceiling Agreement. 1) Delegate Musumeci's identified the non-existent stamp plan (referred to by side-letter enclosure of District Council attorney Murphy in submission [Document 1272] to Your Honorable Court on March 15, 2013.) Said language needs to be stricken from the CBA. Delegate Musumeci then presented a second discrepancy to EST Bilello within the Wall- Ceiling Agreement regarding an hourly-allocation of $2.12 to the Welfare Fund. Though not vested by the August 5, 2011 District Council Bylaws with authority to do so, and in absence of approval from the Delegate Body under its inherent and controlling plenary power and authority, EST Michael Bilello entered into an illegal agreement on behalf of the District Council with the WC&C and increased the Welfare Fund contribution by $2.12 per from $11.25 to $13.37.

2)

EST Bilello was questioned directly by Delegate Musumeci why he would execute a contract allocating wage rates and fringe benefit contributions without debate or vote by the Delegate Body. The EST has no authority either express or implied which allows him to subvert and hold unto himself a power not reserved to him, thus his illegal actions require a veto by the Review Officer.

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EST Bilello refused to answer questions directly, and was conspicuously silent to the extent of Delegate Musumeci's remaining allotted time. Though District Counsel attorney James Murphy and the Review Officer Dennis Walsh were present, neither of them approached the dais to provide an explanation for assembled Delegates, and attending rank-and-file Membership in the back gallery. Contrary to the false claims stand the alleged wage & benefit increases "guaranteed throughout the term of this agreement,as it is immediately destroyed by Executive Secretary-Treasurers (EST) fraudulent use of the illegal reallocation clause. There remains an urgent need to investigate the legitimacy of the entire process within the District Council administration with specific regard to the District Council EST, Officers, and Benefit Fund Trustees failure to acknowledge or abide by the by the August 5, 2011 by-laws approved by this Honorable Court. The lack of oversight provided by the United States Attorneys Office and the Court appointed Review Officer for vetting contract language, or enforcing by-laws which they ostensibly authored is alarming. The second discrepancy Delegate Musumeci found is particularly disturbing as it involves the illegal transfer of approximately $38,340,000 dollars of rank and file member pay raises to the Welfare Fund for one year. Over the proposed life of the contract expiring June 30, 2017 this would amount to an illegal reallocation of $166,012,000 dollars (4.33 years x $38.34M) to the Welfare Fund before the ink is dry on a ruling from this Court. The District Councils program of illegal exactions and extortion of members Vacation Wages (Blue Card See Attachment No. 1 to 7) are prime examples which present the issue of an ongoing pattern of continued fraud and racketeering, none of which should be sanctioned by the U.S.A.O. or the R.O. yet, in absence of your intervention, correction and a proper Order from this Honorable Court, it shall continue unabated. The August 5, 2011 By-Laws, Section 4(B) state: (B) The full plenary power and authority of the District Council is hereby vested, without limitation, in the Delegates to the Council that shall collectively form the Council Delegate Body. In accordance with Section 7 of these Bylaws, the Council Delegate Body shall be elected by the rank and file members of the United Brotherhood of each affiliated Local Union. There shall be a total of One Hundred (100) Delegates to the District Council from the Local Unions, such Delegates to comprise the Council Delegate Body. Each Local Union shall have at least one Delegate to the District Council, with the remaining Delegates allocated proportionally amongst the Local Unions based upon the total membership of each Local Union as a percentage of the aggregate membership of all Local Unions of the District Council. The Council Delegate Body shall exercise the authority granted to it in Section 5 of these Bylaws by majority vote and each Delegate shall be elected for a term of three (3) years. In the event of a tie vote, the President shall cast the tie-breaking vote.

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The contract proposal presented in Court on February 27, 2013 and as executed March 12, 2013 states: WALL-CEILING CBA - ARTICLE XII, Section 8. Wages & Benefits - Wage and Benefit increases are not tied to any benchmarks such as total hours worked and are guaranteed throughout the term of this agreement. Wage rates and fringe benefit contributions within the bargaining unit shall be determined and/or reallocated by [the] Union at its sole discretion. In direct contravention to NYCDCC By-Law Sec. 4(B) stands the continued fraudulent attempt by the District Council EST, its Officers and Executive Committee members, and the Wall-Ceiling & Carpentry Industries of New York, Inc. and their joint desire to extinguish via collective bargaining agreement (CBA) the Council Delegate Bodys vested rights stated above, and thus negate its plenary power and authority which are without limitation. Given the United States Attorney and the Review Officer are well aware of these continued abuses of power and have failed to act, the only prospective remedy going forward is an Order from this Honorable Court directing the District Council and the Wall-Ceiling & Carpentry Industries of New York, Inc. to expunge Article XII, Section 8 in its entirety from this CBA and to apply this Order to any/all successor agreements and/or Memorandums of Understanding (MOU) which the District Council attempts to execute both now or in the future. The thirty-eight million, three hundred & forty thousand dollar pay raise, totaling $166M over the 4.33 year life of the contract, belongs in the rank & file member paychecks. The NYCDC and contractor association cannot appropriate it to another use without proper motion, discussion, debate and the binding vote of the Council Delegate Body as vested and held unto them under By-law Section 4(B). To allow this to occur would in essence mandate Court approval of the conversion/misappropriation and sanction a plan of out and out extortion both of rights granted and of monies/raises duly owed and guaranteed throughout the term of this agreement. We pray the Honorable Court remedy this situation once and for all times, less the Court loses its inherent authority. Respectfully, Demian D. Schroeder

Enclosure

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cc: BY E-MAIL Benjamin H. Torrance Assistant United States Attorney Civil Division Office of the United States Attorney for the Southern District of New York 86 Chambers Street New York, NY 10007 Dennis M. Walsh, Esq. Review Officer The Law Office of Dennis M. Walsh 415 Madison Avenue, 11th Floor New York, NY 10017 Bridget M. Rhode, Esq. Counsel to the Review Officer Mintz, Levitz, Cohn, Ferris, Glovsky & Popeo, P.C. 666 Third Avenue New York, NY 10017 New York City & Vicinity District Council of Carpenters Executive Secretary-Treasurer Michael Bilello 395 Hudson Street New York, NY 10014 James M. Murphy Counsel for the New York City & Vicinity District Council of Carpenters Spivak- Lipton, LLP 1700 Broadway New York, NY 10019 John DeLollis Executive Director Association of Wall-Ceiling & Carpentry Industries of New York, Inc. 125 Jericho Turnpike, Suite 301 Jericho, NY 11753-1022 Mark A. Rosen, Esq. Counsel for the Association of Wall- Ceiling & Carpentry Industries of New York, Inc. McElroy, Deutsch, Mulvaney, & Carpenter, LLP 1300 Mount Kemble Avenue Morristown, NJ 07962-2075

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ADDITIONAL SERVICE via E-Mail: Robert F. Makowski, Sterling Dadone, Norman Saul, Raynier Gamboa, Veronica Session

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