WASHINGTON D.C. – A former union official plead guilty to embezzling more than $190,000 from two labor organizations he founded and an employee benefit plan, according to authorities.
Officials say JC Stamps, a retired detective, spent thousands on hotel stays, clothing and other personal expenses.
Stamps, 67, of Upper Marlboro, Maryland, pleaded guilty to one count of theft from an employee benefit plan.
U.S. District Judge Richard W. Roberts scheduled sentencing for Sept. 17, 2014. Stamps has also agreed to pay $194,611 in restitution and is subject to a forfeiture money judgment in the amount of $84,745, officials said.
Stamps, a retired detective from the Metropolitan Police Department, ftective from the Metropolitan Police Department (MPD), founded two labor organizations based in Washington, D.C.: the National Union of Protective Services Associations, which represented private security guards, and the National Union of Law Enforcement Associations, which represented police officers. In addition, he founded a security guard firm, Stamps Associates, which also was based in Washington, D.C.
According to court documents, between 2004 and 2008, Stamps devised a scheme to defraud and embezzle money in several ways from the unions and the National Union of Protective Services and Employers Health and Welfare Fund (Health and Welfare Fund), an employee benefit plan for which Stamps was a trustee.
In 2007 and 2008, for example, Stamps used money from the Health and Welfare Fund’s bank account to pay American Express for a total of $48,541 in credit card charges for personal purchases and union expenses. None of these charges were related to the administration and operation of the Health and Welfare Fund.
Instead, they paid for personal expenses, such as hotel stays, furniture, men’s fragrances, clothing, other retail purchases and online services, and for union expenses, including hotel rental charges for a holiday party and automobile rentals.
Also, according to court documents, from 2006 to 2008, Stamps caused the withdrawal of $36,203 from the Health and Welfare Fund’s bank account to pay an attorney for legal expenses incurred by the unions – and not for the fund’s intended purpose.
In addition to the theft and embezzlement from the Health and Welfare Fund, Stamps stole and embezzled at least $109,866 from the unions from 2004 to 2008. According to court documents, more than half of this money was used to cover debts of Stamps Associates, Stamps’ security guard company.
Other money was used for personal expenses and fraudulent salary payments for Stamps’ close personal friend, who is identified as “Person A” in court documents. “Person A” was nominally the sole owner of Stamps Associates, although Stamps controlled the company.