Recent allegations, that HTC denies, accuse Rich Maroko of overseeing a union full of “corruption, misconduct and malfeasance,” according to a whistleblower report.
The report alleges that union officials at HTC have been taking home gifts of liquor, gourmet food, and even Xbox and PlayStation gaming systems.
Here’s how Crain’s New York Business describes the allegations:
“A letter from the whistleblower, which was shared with Crain’s, claims that hotel union President Richard Maroko is overseeing an enterprise rife with “corruption, misconduct and malfeasance.” The four-page letter, delivered to the union on March 10, alleges officials have violated the Racketeer Influenced and Corrupt Organizations Act.”
“The whistleblower alleges union officials received free gifts of liquor, gourmet food and electronics including an XBox and PlayStation from hotel-industry executives. The letter further alleges that union officials defrauded UNITE HERE Local 6, a Midtown-based chapter of the union, out of nearly $3 million by paying below-market rent for Eighth Avenue office space it owned. It also claims that union officials interfered with and rigged an arbitration proceeding involving a Lower Manhattan hotel.”
These allegations are just that–allegations–and the union claims internal investigations have found no evidence of wrongdoing. A group of New York hotel owners has hired a former federal prosecutor to conduct an investigation of the whistleblower’s claims of corruption at the union. More broadly, corruption allegations would not be out of place for a labor union. Unions often get themselves into trouble by accepting bribes or gifts. The United Auto Workers, for example, found itself in a major corruption scandal for accepting bribes just a few years ago.
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