U.S.

Department of Justice

United States Attorney
Southern District of New York



86 Chambers Street
New York, New York 10007

J une 4, 2014


By hand and ECF

The Honorable Richard M. Berman
United States District J udge
United States Courthouse
500 Pearl Street
New York, New York 10007

Re: United States v. District Council of Carpenters, 90 Civ. 5722 (RMB)

Dear J udge Berman:

This Office represents plaintiff the United States in the above-named action, and we submit
this letter on behalf of the United States, the District Council of Carpenters, and the District
Councils Benefits Funds. We write in response to the Courts recent memo-endorsement stating
that Your Honor would likely not schedule a conference to consider the recently submitted
Stipulation and Order Regarding Appointment of an Independent Monitor before Labor Day.
We respectfully request that, if the Court is unable to fully consider the Stipulation this summer,
the Court instead schedule a more limited conference in the near future, preferably before the end
of J une 2014, to address only the transition provisions of the proposed Stipulation and Order, in
particular paragraphs 3.c. and 8.b.ii.
The government, the District Council, and the Benefit Funds all believe these transition
provisions are critical and time sensitive. As the Court is aware, the current Review Officer does
not intend to serve in any capacity past the end of 2014. See Eighth Interim Report of the
Review Officer, J une 3, 2014, at 1 (ECF no. 1531). The parties negotiated in good faith to reach
this agreement, and all agree on the need for continued Court oversight as provided in the
Stipulation. The orderly transition provided in the Stipulation between the outgoing Review
Officer and the Independent Monitor, ending on September 30, 2014, is critical to all parties. If
the Court does not consider the transition until after Labor Day, the work of the parties in
ensuring a sufficient amount of time for the transition will be undone.
Although the Court has continued the provisions of the J une 3, 2010, Stipulation and Order
until the Court makes a decision regarding the implementation of the newly proposed Stipulation
and Order, a transition to a new Court-appointed officer remains essential, given the Review
The Honorable Richard Bennan
- Jumr"4-;-20tzt
page2
Officer's intent to leave office by the end of2014, and the need for him to prepare a final,
closing report to the Court by the beginning of December, see 5./.ii. The
Independent Monitor needs sufficient time to learn the workings of the Council and the Funds
prior to the September 30, 2014, transition date, to ensure that th.e level of oversight of the
Council and the Funds continues without interruption.
As previously described to the Court, the government, the District Council, and the Benefit
Funds all share the view that Glen G. McGorty of the firm Crowell & Moring would serve as an
excellent Independent Monitor. Mr. McGorty is currently consulting with a port terminal_
operator on a project involving the implementation of compliance protocols and anti-corruption
reforms in 'an international labor union, and as a former Assistant United States Attorney in this
district, he has substantial experience in investigating and prosecuting federal crimes, including
organized crime, money laundering, and racketeering offenses under RICO.
The government, the District Council, and the Benefit Funds share the Court's view about the
importance of having a full public hearing before entering the proposed Stipulation and Order.
However, moving forward with the transition between the two Court-appointed officials will not
undermine that concern, as oversight will continue under the provisions of the Court's interim
order. Considering just the transition elements at this time would protect the agreement of the
parties and ensure the smooth transition to a new Independent Monitor should the Stipulation
eventually be so-ordered by the Court.
Accordingly, we request that Your Honor schedule a conference in June 2014 and consider
the transition provisions at a time that will allow the new Independent Monitor to have a
sufficiently robust transition period with a transition date of September 30, 2014.
Attorney for the Benefit Funds
cc:
Bridget Rohde, Esq. (by e-mailj
Dennis Walsh, Esq. (by e-mail)
,,
Respectfully,
Attorney for the District Council
of New York City and Vicinity of
the United Brotherhood
of Carpenters
United States Attorney
By: Is/ Tara M La Marte
BENJAMIN H. TORRANCE
TARA M. LaMORTE
Assistant U.S. Attorneys
Telephone: 212.637.2703
Fax: 212.63 7.2702