Former Teamsters President Ron Carey was indicted Thursday on charges of perjury and making false statements
in connection with an investigation of fund-raising during his 1996 re-election campaign.
According to the Associated Press, prosecutors said Carey made false statements to an election officer, an investigator and a review board. If convicted, Carey, 64, of New York City, could get up to five years in prison on each of seven counts.
The board was investigating allegations that the Carey campaign engaged in illegal efforts to raise money.
In late 1999, similar investigations led to the conviction of Carey's political director, William Hamilton, for embezzlement, mail and wire fraud, and perjury. Hamilton authorized $885,000 in contributions from the financially struggling Teamsters union to four political organizations in exchange for contributions to Carey's 1996 re-election campaign. He was sentenced to three years.
The situation apparently was a way for Carey's campaign team to get around laws prohibiting the union from paying for the election campaigns of union members. Carey has said he was unaware of the scheme.
Carey narrowly defeated James P. Hoffa in the 1996 election. His victory was later overturned after investigators found that Carey's campaign improperly benefited from donations made by the union, and he was ousted from the union.
Three consultants to Carey's campaign have pleaded guilty in federal court and await sentencing.
The Teamsters Union released a statement in support of the indictment. "The members of the Teamsters Union have paid a terrible price for the misdeeds of Mr. Carey," it says. "Their hard-earned dues money was squandered away by his illegal activities." The union has filed suit to recover the funds lost due to the misconduct.