11/1/07

Union embezzlement case looms

The state Labor Department has ordered the Montana AFL-CIO to repay more than $35,000 in federal job-training funds. An audit found that a former coordinator of a union job-training office approved paying out more than $35,000 for his stepdaughter's college education.

Jim Baker was coordinator of the AFL-CIO's Project Challenge: Work Again office in Cut Bank. He enrolled stepdaughter Karol Zubach in the program in 2002. Baker approved spending $35,111 in job training money over four years. He later admitted he didn't inform program supervisors that Zubach was his stepdaughter.

The Labor Department turned the matter over to the state Justice Department for a criminal investigation. The state, in turn, has submitted a case file to the U.S. attorney's office for prosecution.

(montanasnewsstation.com)

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