9-133.000 - Embezzlement And Theft From Labor Unions And Employee Benefit Plans

9-133.010 - Introduction

This chapter focuses on two statutes that prohibit embezzlement or theft. Title 29 U.S.C. § 501(c) prohibits the embezzlement and theft of property from a labor organization covered by the Labor-Management Reporting and Disclosure Act (LMRDA) (29 U.S.C. § 401, et seq.). Title 18 U.S.C. § 664 prohibits the embezzlement and theft of property by any person from an employee pension or welfare benefit plan subject to Title I of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001, et seq, or a fund connected to such a plan.

[updated January 2020]

9-133.020 - Policy——Concurrent Federal-State Jurisdiction

In any matter which is a violation of 29 U.S.C. § 501(c) or 18 U.S.C. § 664 as well as a violation of state criminal law, the United States Attorney (USA) is authorized to determine after investigation whether the matter should be referred to local authorities for prosecution or whether it warrants federal prosecution. When such matters are referred to local authorities, the Federal Bureau of Investigation or the United States Department of Labor should be advised of the referral and requested to determine the status of the local prosecution 90 days after referral. In the event local authorities decline to take action upon the referral, the USA should reconsider whether federal prosecution is warranted and advise the FBI or DOL of its final decision.

[updated January 2020]

9-133.030 - Investigative and Supervisory Jurisdiction

The Labor-Management Unit of the Violent Crime and Racketeering Section, Criminal Division, has supervisory jurisdiction over 29 U.S.C. § 501 and 18 U.S.C. § 664.

By a Memorandum of Understanding dated January 18, 2005, between the Secretary of Labor and the Attorney General, criminal matters arising under 29 U.S.C. § 501(c) are investigated by the Federal Bureau of Investigation (FBI) and the Department of Labor. A similar Memorandum of Understanding dated February 9, 1975, refers to the FBI’s authority to investigate violations of 18 U.S.C. § 664. The U.S. Department of Labor has statutory authority to investigate violations of 18 U.S.C. § 664 as part of its authority to investigate criminal violations related to title I of the Employee Retirement Income Security Act (29 U.S.C. §§ 1001 to 1191c) and “other related Federal laws, including . . .  related violations of Title 18.” See 29 U.S.C. § 1136(b), as amended by Section 805 of the Comprehensive Crime Control Act; 98 Stat. 2134-35 (1984). Because the FBI and the Department of Labor have concurrent jurisdiction in these cases, each investigative agency should notify the appropriate United States Attorney's Office at the earliest possible stage of an investigation. Such investigations should be closely monitored to avoid duplication of investigative effort.

[updated January 2020]