A second former officer of United Steelworkers Local 1011, representing
members at ArcelorMittal’s Indiana Harbor facility, has been indicted in
federal court for conspiring to embezzle union funds, the U.S. Attorney’s
Office for the Northern District of Indiana said.
Charged in a superseding indictment filed on April 13 was former Local 1011
president Loren Hanson.
Previously charged in January was former financial secretary Jesse Lee
Hanson and Daniels together embezzled approximately $40,950 as part of a
conspiracy “to receive more pay” from Local 1011 “than that to which they
were entitled, without obtaining authorization from members,” the
superseding three-count indictment alleges.
Specifically, Hanson would instruct a secretary to prepare checks to Daniels
and himself “in amounts that exceeded what they were authorized to receive”;
they would then “sign checks to themselves, and to each other, in amounts
that exceeded what they were authorized to receive”; and that they “would
not seek authorization” from the local for those checks, the indictment
On Feb. 1 and Feb. 23, 2007, Daniels signed checks to Hanson for salary, the
indictment alleges; while on May 1 and May 15, 2007, Hanson signed checks
The total amount embezzled by Daniels, as alleged by the indictment,
$19,500; the total amount by Hanson, $21,450.
In a press statement released in January, the U.S. Attorney’s Office said
that “Daniels was entitled to a monthly salary of $500 for his union duties”
but from “November 2005 through March 2009 he received an additional $500
per month without proper approval from the union membership or the Executive
The case was investigated by the Department of Labor’s Office of Inspector
General and Office of Labor-Management Standards, the U.S. Attorney’s Office