Hawaii News

Former employee accused of embezzling $44,000 in union members’ due payments

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A former union employee is facing charges after reportedly embezzling more than $44,000 in union dues from the International Brotherhood of Electrical Workers (IBEW) Local Union 1186.

The Department of the Attorney General’s Special Investigation and Prosecution Division charged Lilinoe Smith, 44, with first-degree theft following an investigation conducted by the U.S. Department of Labor Office of Labor-Management Standards.

She turned herself in for arrest to the state Sheriffs Monday morning. Smith’s arraignment is scheduled for May 13 at 8:30 a.m.

First-degree theft is a Class B felony punishable by up to 10 years in prison and a fine not exceeding $25,000.

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According to charging documents filed in First Circuit Court, Smith stole approximately $44,367 — from October 2018 through July 2021 — in individual union members’ dues money and allegedly falsified union records to conceal the theft.

According to union officials, an internal audit revealed Smith was improperly taking money from union members who paid cash for their dues.

“Stealing from union members is a serious breach of trust. Union members expect that when they pay their dues that the money is being used for union business. My department will work to ensure that anyone who steals union resources will be held accountable,” said Attorney General Anne Lopez.

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Ed Oquendo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, said it’s the department’s mission to promote financial integrity and safeguard union funds and assets.

“We are committed to seeking justice on behalf of union members when anyone puts personal financial gain ahead of the best interests of their membership,” Oquendo said. “We will continue to work with our law enforcement partners to investigate these types of allegations.”

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