October 27, 2009

Dear Members,

In the past several days, The Detroit News reported on several statements allegedly made to the FBI by John Orecchio, the former head of a Chicago-based investment firm, AA Capital Partners, concerning me and others. As has already been widely reported, Mr. Orecchio, who has admitted to engaging in criminal activity, has been charged by the U.S. government in an Illinois Federal Court with fraud and embezzlement, including the alleged misappropriation of millions of dollars in assets entrusted to him by the Local 324 Pension Fund and several other Detroit-based trade union funds. I categorically deny the statements about me attributed to Mr. Orecchio in the press, and can only assume that they are part of an attempt by Mr. Orecchio to gain favor with the government to lessen his exposure to punishment for his admitted misdeeds.

Fraternally,



John M. Hamilton
General Vice President &
Business Manager

 

Published in Dragline, October 30, 2009, on the Michigan Construction News web site. Written by Guy Snyder


Is a certain construction union leader under criminal investigation in the Detroit area? As far as we can tell he isn’t. But that hasn’t stopped the Detroit News from printing the ramblings and possible ravings of a gentleman accused of misappropriating union pension funds.

The man, John Orecchio, of AA Capital Partners, apparently convinced the Operating Engineers Pension Fund to invest $65 million with his company. That’s assuming what the Detroit News reported is correct. We’re not so sure it can be trusted. Other union pension funds were also supposed to be involved, though the story didn’t name them.

The newspaper was able to obtain documents about testimony Mr. Orecchio gave to the Federal Bureau of Investigation. They weave a strange fable — something we find improbable — about Mr. Orecchio somehow being approached by third parties to arrange for the sale of a residence owned by John M. Hamilton, business manager and general vice president of Operating Engineers Local 324. The way this unsubstantiated and highly suspect story goes is that the house was sold at an inflated price, as a “favor” to Mr. Hamilton for giving him the business.

We needn’t mention that such investments have to be approved by a pension board and are subjected to detailed investigation before decisions are rendered. No individual member is empowered to make a pension investment. It’s up to the board.

That doesn’t mean a mistake by the board can’t be made. But we’ve known Mr. Hamilton for many years. And we will gladly swear on as many Bibles as you’d like to stack before us about his impeccable integrity. What boils us is the newspaper believes it can publish Mr. Orecchio’s story without there being any indication at this time of FBI concern about it. Which makes us suspect it’s not a “stretch of the truth” but an outright falsehood.

As Mr. Hamilton stated on his local’s web site yesterday: “As has already been widely reported, Mr. Orecchio, who has admitted to engaging in criminal activity, has been charged by the U.S. government in an Illinois federal court with fraud and embezzlement, including the alleged misappropriation of millions of dollars in assets entrusted to him by the Local 324 Pension Fund and several other Detroit-based trade union funds. I categorically deny
the statements about me attributed to Mr. Orecchio in the press, and can only assume that they are part of an attempt by Mr. Orecchio to gain favor with the government to lessen his exposure to punishment for his admitted misdeeds.”

You can say that again, Mr. Hamilton. The problem is, the general news media aren’t showing the decency to assure the public that people are presumed innocent until proven otherwise. We sincerely apologize for our journalistic colleagues dragging your name in the mud.

October 30, 2009