Culinary stirs things up

A new report on the Culinary Union's nationwide operations found no links to organized crime, but did disclose widespread financial wrongdoing.

Court-appointed monitor Kurt Muellenberg issued the report Friday. The report portrays former Hotel Employees and Restaurant Employees Union President Edward Hanley Sr. as using union money to finance a high-living lifestyle. The Hotel Employees and Restaurant Employees Union (HERE) is better known in Las Vegas as the Culinary Union.

But while the report shows Hanley to be free-spending, it shows his successor, John Wilhelm to be a reformer. Wilhelm is the former Las Vegas-based Western regional director for the union who is credited with helping increase Culinary Union membership here. He took over the union's top spot Aug. 1. He also serves on a national commission studying the social and economic impacts of the gaming industry.

Wilhelm said Monday he was pleased the report found no organized crime links, not just for the sake of the union but for the sake of the gaming industry.

"Had there been a different finding on organized crime, that would have been a big problem for the industry," Wilhelm said.

Wilhelm said the union's executive board has adopted all 48 recommendations in Muellenberg's report.

The report criticizes HERE's former regime for everything from abusing union credit cards to leasing high-priced cars at union expense and buying them for a cheaper price when the lease expires.

HERE spends about $425,000 per year on leased vehicles. One lease was for a 1993 Cadillac Allante two-seat convertible. Hanley bought the car after the union had leased it at $1,685 per month for three years. Another unidentified vehicle was bought for $5,000 with 5,000 miles on the odometer, according to the report. Moreover, the report says the union leased luxury vehicles for three retired general officers.

But the report notes that Wilhelm, as then secretary treasurer of the international union, reached an agreement with a sole vendor for leased vehicles about one year ago and issued a memo about it to union staff.

"It is hoped that the publication of the General Secretary-Treasurer's memoranda is intended as an initial step in a much greater effort toward fiscal responsibility," the report states.

Muellenberg also criticizes the union's auditing procedures. Out of a five-person audit staff, only one had a college degree in accounting. Yet Muellenberg said Wilhelm had initiated changes in that area.

"Mr. Wilhelm and I are in general agreement, and I appreciate his invitation to work with him and his staff on this matter," Muellenberg wrote.

As for individual locals, the only mention of Local 226 in Las Vegas is that it is where most the biggest increases have been made in union membership. Local 226 Secretary-Treasurer Jim Arnold said the new officials of the international union have passed scrutiny by the monitor.

"I think our new officials will do an excellent job," Arnold said.

The Las Vegas local accounts for more than 35,000 of HERE's 244,000 members.

The report states that most of the problems center around Local 1 in Chicago, Hanley's old local. For example, while international president, Hanley received $31,000 from that local for being its "executive director," something the report called a "no-show" job.

Among the other criticisms:

* The union paid for a luxury condominium, complete with a stocked 25-bottle wine rack in the Georgetown area of Washington, D.C. Although the union's offices are located there, Hanley only spent about 25 days per year in Washington.

* The existence of a field office in Palm Springs where Hanley has a vacation home. The report said there was no need for a field office there, and the office has since been closed.

* The report says many of the high-level officials of the union appeared to have a personal relationship with Hanley.

* Donations to charitable organizations between September 1995 and December 1996 totaled $418,870. Some appear to be for worthy causes, including a $10,000 donation to the Las Vegas Anti-Defamation League and a $5,000 donation to the Bishop Gorman High School Endowment. The report says many of the donations are to Irish organizations, noting Hanley and many of his senior officers are of Irish descent.

Hanley announced his retirement in May and his term ended July 31. Muellenberg, who was appointed to rid the union of wrongdoing, agreed not to charge Hanley in return for his retirement and repayment of $13,944 related to the purchase of leased vehicles.

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