Pubdate: Tue, 06 Jan 2009 Source: Independent, The (Massilion, OH) Copyright: 2009 The Independent Contact: http://www.indeonline.com/left.php?external=forms/letteredit.php Website: http://www.indeonline.com/ Details: http://www.mapinc.org/media/3545 Author: Doug Staley Bookmark: http://www.mapinc.org/corrupt.htm (Corruption - United States) EMBEZZLING EX-UNION CHIEF HAD DRUG HABIT MASSILLON, OH -A substance abuse problem may have driven a former Massillon union leader to embezzle more than $15,000 in cash, according to prosecutors. Kenneth Saltz Jr., ex-president of United Steelworkers Local 1124, was placed on two years probation last month by U.S. District Court Judge Patricia Gaughan. Saltz also was ordered to serve six months electronically-monitored house arrest, court records show. As part of the sentence, Saltz was ordered to abstain from drugs and alcohol. Local 1124 president Ray Perez declined to comment Tuesday. In September, Saltz pleaded guilty to stealing $15,800 from the union. According to court documents, Saltz forged and cashed 55 union checks totaling $14,042 between May and August 2006. Saltz reportedly wrote the checks on an account funded by union dues. Local 1124 represents roughly 200 hourly employees at Republic Engineered Products and Republic Special Metals. Court records also show Saltz charged $1,767 on a union credit card. "Basically, he was writing fictitious checks off the union account and someone discovered it," said Assistant U.S. Attorney Carol Skutnick. "The checks required two signatures. He was signing his name and somebody else's. (They) got a little suspicious and it came to light." The United States Labor Department launched an investigation into Local 1124's finances after Saltz resigned as president in 2006 citing personal reasons. Saltz repaid most of the money before he was indicted on federal charges. "He had committed a crime so he still had to be prosecuted," Skutnick said. The judge recommended probation for Saltz based on federal sentencing guidelines, Skutnick said. One factor that worked in Saltz' favor was the fact that he did not have a criminal record. If Saltz doesn't follow the rules of his probation, another court hearing likely would be scheduled. It would be up to the judge's discretion to sentence Saltz to prison, according to Skutnick. - --- MAP posted-by: Larry Seguin