Portland, Ore. — Thomas V. Wallace, 50, of Wamic, Oregon, pled guilty to one count of forgery in connection with a theft of union benefit funds. He admitted forging checks drawn on bank accounts controlled by Division 757 of the Amalgamated Transit Union, while he was serving as Financial Secretary-Treasurer of the Union. An information filed by the United States Attorney charged that Wallace forged approximately 176 checks totaling over $454,000 during the period from 2000 to 2006. The checks were made payable to Wallace or to cash and were used for his personal expenses. The funds were taken from bank accounts which held special employee benefits funds contributed by employers pursuant to union contracts.
The thefts were discovered during an audit of Division 757 funds in early 2007. The matter was investigated by investigators of the U.S. Department of Labor Office of Labor-Management Standards, assisted by the Federal Bureau of Investigation. Wallace faces a maximum penalty of ten years in prison, a fine of $250,000 and three years of supervised release. The actual sentence will be determined in part by reference to federal sentencing guidelines.
Wallace entered his plea in U.S. District Court, Portland Oregon before the U.S. District Judge Garr M. King on Tuesday. Wallace will be sentenced on November 10, 2008. This case is being prosecuted by Assistant U. S. Attorney Lance Caldwell.
