Yesterday, former Service Employees International Union (SEIU) chieftain and appointment to President Obama's "Deficit Panel" Andy Stern was reportedly being investigated by the FBI for his role in a couple of shady dealings while he was at the helm of the forced unionism leviathan.  But that wasn't the only big story coming out yesterday about widespread SEIU union hierarchy corruption during his tumultuous reign. From Ed Barnes on FoxNews.com:

Despite a finding by the Federal Election Commission's general counsel that the Service Employees International Union violated election law when it required local affiliates to contribute to its political action fund, the FEC's full board nonetheless quietly voted to overrule its staff attorney and dismissed the original complaint -- clearing the way for the union to squeeze its locals to amass a $9 million war chest for the next election.

Moreover, the group that filed the complaint, the National Right to Work Foundation (NRWF), didn't receive a full explanation of the FEC's decision in the case until after 111 days had passed, ensuring that its right to file an appeal had lapsed.

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The NRWF, long a thorn in the side of the 1.8 million-member union, filed its complaint in October 2008, challenging an amendment to the union's constitution that required each local to contribute $6 per member to the international's political action committee. Those locals that didn't comply would be charged the difference between what they owed and what they raised -- plus, a 50 percent penalty.

"To us it was a prima facie case for coercion," [National Right to Work President Mark] Mix said. "Plus, it looked like a money laundering scheme as well, because locals would pay the penalties from their general funds into the political action committee. General union treasury funds are not allowed to be used for political purposes," he said.

Frankly, it's very unfortunate that the FEC seems interested in allowing Big Labor political corruption.  As Mark Mix explained in the Washington Examiner earlier this month:

Imagine the outcry if McDonalds executives demanded that franchise owners collect “voluntary” contributions totaling $25,000 for the company’s Political Action Committee (PAC) from employees at every restaurant.

What if the fast food titan’s headquarters followed up with a threat - pay us, or face a $37,500 fine? Do you think this heavy handed scheme would raise a few eyebrows at the Federal Election Commission (FEC)?

Replace “McDonalds” with “SEIU” in that description and you’ve got a pretty good idea of Big Labor’s latest political fundraising strategy. To meet their ambitious fundraising targets, Service Employees International Union bosses are now threatening to fine any local affiliate that doesn’t meet its PAC contribution requirements.

The only problem with this racket is that FEC guidelines explicitly prohibit organizations from collecting PAC funds by threatening members with financial reprisals. SEIU bosses aren’t exactly hiding their intentions, either – they actually wrote this fundraising provision into the union’s constitution at their annual convention.

If McDonalds had the nerve to collect contributions from employees using similar threats, you can bet the FEC would be all over the case. The SEIU, however, seems to have gotten away scot-free.

In The Washington Examiner, Right to Work President Mark Mix takes on the Federal Election Commission's lax oversight of suspicious Big Labor political fundraising:

Imagine the outcry if McDonalds executives demanded that franchise owners collect “voluntary” contributions totaling $25,000 for the company’s Political Action Committee (PAC) from employees at every restaurant.

What if the fast food titan’s headquarters followed up with a threat - pay us, or face a $37,500 fine? Do you think this heavy handed scheme would raise a few eyebrows at the Federal Election Commission (FEC)?

Replace “McDonalds” with “SEIU” in that description and you’ve got a pretty good idea of Big Labor’s latest political fundraising strategy. To meet their ambitious fundraising targets, Service Employees International Union bosses are now threatening to fine any local affiliate that doesn’t meet its PAC contribution requirements.

FEC Fails to Investigate Teachers’ Complaint of NEA Union Money Laundering Scheme

Employee rights advocate weighs federal lawsuit

Washington, DC (January 5, 2010) – Apparently without conducting a field investigation, the Federal Election Commission (FEC) dismissed a complaint against one of the most politically active unions in America after evidence surfaced that union officials deposited illegally laundered dues money into its political action committee (PAC).

Citing in part lack of sufficient funding to enforce the law, the FEC junked a complaint filed by the National Right to Work Legal Defense Foundation and two Alabama teachers who discovered a union scheme to divert convention reimbursements into the National Education Association (NEA) union’s PAC.

When attending the NEA’s 2004 national convention, Daphne Middle School science department chair Claire Waites was deceived into supporting the NEA’s PAC and was determined that it would not happen again. However, Waites and Assistant Principal Dr. Jeanne Fox, both members of the Baldwin County Education Association (BCEA), Alabama Education Association (AEA), and NEA unions, discovered the practice continues.

Click here to read the full release.

When Nashua, New Hampshire postal worker Philip Wakeman paid dues to the National Post Mail Handlers Union (NPMHU), a division of the Laborers' International Union, he had no idea that union bosses would illegally launder his money into their political coffers.

In July 2006, Mr. Wakeman gave a check to the NPMHU union for the full amount of his annual union dues. On the "Memo" line at the bottom of the check, he wrote "Union Dues."  A union official later acknowledged receipt of the dues and everything seemed fine – that is – until he received a bizarre phone call.

In October 2008, over two years after submitting the check to the NPMHU union, a stranger informed Wakeman that she found his information on the internet and suggested he do a "Google" internet search of his name. The search results were astounding:  Mr. Wakeman found his name disclosed as making a contribution in the exact amount of his annual NPMHU union membership dues to the NPMHU Political Action Committee (PAC) – all without his knowledge.

Apparently NPMHU union bosses had illegally diverted his dues payment to the union's PAC.  Wakeman contacted the National Right to Work Legal Defense Foundation and Foundation attorneys filed a complaint with the Federal Election Commission. 

It is illegal for union officials to fund union PACs using "dues, fees, or other moneys required as a condition of membership in a labor organization."  NPMHU union bosses are also accused of violating federal election law by making a political campaign contribution in another person's name and failing to inform Mr. Wakeman that his membership dues would be used for political purposes.

To read the Foundation's media release regarding the FEC complaint, click here.

To read the FEC complaint, click here.

Today, the National Right to Work Foundation announced it will file a formal complaint with the Federal Election Commission on behalf of two Alabama educators and itself against the National Education Association teacher union and two NEA affiliates for an illegal political fundraising scheme by the union hierarchy:

Washington, DC (January 13, 2009) – The National Right to Work Legal Defense Foundation announced today it will file a formal complaint with the Federal Election Commission (FEC) asking it to investigate charges made by two Alabama educators who discovered a union scheme to divert their money into the National Education Association’s (NEA) political action committee (PAC).

Claire Waites, the chair of the science department, and Dr. Jeanne Fox, an assistant principal, both work at Daphne Middle School in Bay Minette, Alabama. Waites and Fox are both members of the Baldwin County Education Association (BCEA), Alabama Education Association (AEA), and NEA teacher unions.

In July 2008, Waites and Fox attended the NEA’s annual convention in Washington, DC, as delegates of the BCEA. By telephone, BCEA union president Saadia Hunter informed Waites and Fox that contributions to a “children’s fund” in their names were made from money included in their expense reimbursements for their trip to the convention.

Read the rest of the Foundation's press release here. A PDF copy of the complaint is available here.

This summer, we told you about one of the nation's largest unions imposing a fundraising quota on locals and workers in an illegal scheme to fund its political action committee. Here's the latest:

The National Right to Work Legal Defense Foundation will file a formal complaint with the Federal Election Commission asking it to investigate a campaign fundraising scheme adopted by the Service Employees International Union (SEIU) at its convention this summer.

The union and its officers appear to be violating federal labor law and the Federal Election Campaign Act by imposing financial penalties on local affiliates who fail to meet Political Action Committee (PAC) fundraising targets. On June 3, delegates to the SEIU convention approved Constitutional Amendment #317 in time to take effect for this year’s federal elections.

The policy imposes on each SEIU local an “annual SEIU COPE fundraising obligation.” SEIU COPE is the SEIU’s federal PAC. If a local fails to meet this requirement, the SEIU imposes heavy fines. However, federal election law forbids unions from “utilizing money…secured by…financial reprisals… or the threat of … financial reprisal” to fund a PAC.

Read the full press release here.