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Former Union President Indicted for Embezzling $185,000

GavelThe former president of the union representing Jackson County Department of Corrections employees was indicted by a federal grand jury today for a wire fraud scheme in which he embezzled more than $185,000 from the union local.

Jesse E. Morgan, 38, of Kansas City, Mo., was charged in a 29-count indictment returned by a federal grand jury in Kansas City. Morgan was president of the American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from 2008 through Oct. 20, 2012.

Today’s indictment alleges that Morgan engaged in a wire fraud scheme from Nov. 1, 2008, through Oct. 22, 2012, to steal from AFSCME Local 1707. The federal indictment charges Morgan with 29 counts of wire fraud.

According to the indictment, Morgan wrote $9,700 in unauthorized checks from the union local’s bank account, payable to himself. Morgan allegedly made $69,540 in electronic payments from the AFSCME Local 1707 bank accounts to others, for his own benefit. Morgan allegedly made $56,231 in unauthorized ATM withdrawals from AFSCME Local 1707 bank accounts. Morgan allegedly made $50,091 in unauthorized counter withdrawals from AFSCME Local 1707 bank accounts.

The indictment also contains a forfeiture allegation, which would require Morgan to forfeit to the government any property derived from the proceeds of the alleged wire fraud scheme.

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor – Office of Labor-Management Standards.

This press release provided by Don Ledford, Public Affairs Officer for the U.S. Attorney’s Office – Western District of Missouri.

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