What began as an attempt to use United Public Workers' assets to repay a personal loan snowballed into a bogus consulting fee scheme that benefited union leader Gary Rodrigues and his family members, federal prosecutors contend. Lawyer seeks acquittal
for Rodrigues and
daughter in scamProsecutors wrap up their fraud
case against the union chiefBy Debra Barayuga
dbarayuga@starbulletin.comThe summary of what government prosecutors felt the evidence has shown in their criminal case against Rodrigues and his daughter, Robin Haunani Rodrigues Sabatini, was contained in a memo filed yesterday in U.S. District Court.
Rodrigues' attorney, Doron Weinberg, filed a motion for acquittal yesterday, arguing that the government failed to show the link between consulting fee payments made to Sabatini and the UPW's benefits contracts or that Rodrigues negotiated consulting fees that resulted in higher premiums for union members.
Rodrigues and Sabatini are charged with multiple counts of mail fraud, money laundering and defrauding a health care benefit program.
The receipt of consulting fees through the mail and depositing of the checks into Sabatini's two companies constitute the mail fraud and money laundering counts.
Rodrigues is also charged with embezzling from UPW by allegedly causing the fees to be paid to Sabatini and others without the knowledge of the union executive board and allegedly receiving kickbacks in connection with the life insurance benefits contract.
"Even if Robin received consultant fees, so what?" Weinberg argued. "If they say it was based on UPW premiums, where's the proof Gary negotiated it or that it cost anyone anything?"
The defense contends union members got better if not more benefits for what they paid and that UPW was not deprived of its funds because the premiums were not union assets.
The government also has not been able to show that Rodrigues intended to deprive the union of his honest services, an element of the mail fraud counts, Weinberg said. He also argued that there was no evidence of intent by Rodrigues or Sabatini to hide proceeds of an alleged scheme or that the source of the checks was fraudulent.
Lynn Panagakos, a Department of Justice trial attorney, argued that Rodrigues was bound by fiduciary duty to disclose profits received or conflicts of interest and that longtime union officers had testified that he should have disclosed the consulting fees to the board.
She also said that the reasonableness of the rates union members were paying is not relevant to the charge that Rodrigues used union assets for non-union purposes.
Sabatini was making $50,000 at a full-time job doing accounting and bookkeeping but making more than $100,000 over four days doing alleged consulting work relating to UPW contracts with no work product to show for it, Panagakos said. She said the bulk of the work Sabatini is alleged to have done was done by UPW employees.
Sabatini's attorney, Richard Hoke, said just because the government could not find any work product by Sabatini didn't mean she didn't do any work. Sabatini had submitted reports and continues to do work for the companies that handled the UPW contracts, he said.
Chief Judge David Ezra is expected to rule today on the defense's motion. If he denies the motion, the trial will resume with the defense presenting its first witness.