DULUTH, Minn. -- A former chairman of UTU General Committee 325 (Duluth, Winnipeg & Pacific) was sentenced by a federal court this week to three months in prison and a fine and restitution of $78,000 after pleading guilty to embezzling union funds and collecting unearned disability payments in 2005 and 2006, reports the Associated Press.
Edward G. Kobe, 61, of Duluth was sentenced in Minneapolis by U.S. District Court Judge Patrick Schiltz. The fine totaled $30,000 and restitution was set at $48,000.
In his plea agreement, reports the Associated Press, Kobe admitted embezzling the money by falsely representing to union officials that he was authorized to receive monthly payments for his rental housing in addition to his monthly compensation.
Kobe also admitted receiving $32,778.30 in disability payments in 2005 and 2006 while he was being paid by $1,200 per month by the union, a violation of disability rules.
Kobe was accused of falsely telling the Railroad Retirement Board that he was donating his time to the union when he was actually being paid.
(The preceding article was distributed by the Associated Press.)
