Broward teacher union president target of criminal investigation

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Omayra Matamoros, MHSA, JDSend from MacTo: Omayra Matamoros Sent: Tuesday, November 15, 2011 9:31 AMSubject: Fw: BTU president target of criminal investigation

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BTU president target of criminal investigation

Broward Teachers Union president target of criminal investigation

By Cara Fitzpatrick, Sun-Sentinel

Pat Santeramo, long-time president of the Broward Teachers Union, is under investigation amid accusations he blew through $3.8 million in union reserves, used dues to reimburse people for campaign donations and has been overpaid for most of his tenure.

Santeramo, 64, said through his lawyer Monday he had no plans to resign, despite a criminal investigation by the Broward State Attorney's Office and a separate inquiry by the Florida Elections Commission.

Mike Moskowitz, Santeramo's lawyer, acknowledged Monday his client had been overpaid by about $30,000 over seven years — but attributed it to "innocent bookkeeping mistakes." And he said he hadn't been advised of "any criminal inquiry."

"There are no indications that Mr. Santeramo abused or misused union funds," he said. "If anyone has made that statement they can't back it up." However, Ron Ishoy, spokesman for the State Attorney's Office, confirmed Monday its investigation is focused on Santeramo and that the Broward Sheriff's Office also is involved. Ishoy would not provide details of the investigation.

Rumors of financial trouble have dogged the union for months, prompting its national affiliate, the American Federation of Teachers, to request a financial review in August. Santeramo also holds a top position within that organization. That audit, conducted over the past two months, hasn't been released publicly.

Ristow, a union spokesman, confirmed Monday the auditors found the union used $3.8 million in reserve funds over the last six years on political campaigns, rallies, protests and "intense contract negotiations" with the school district. However, he said about $2 million of that went toward an increase in state and national union dues that were not passed on to members.

Now, the teachers union, one of the largest in Florida with about 11,500 members, has only about $700,000 in cash, $728,000 in a "building reserve fund" and an office building and land in Tamarac, Ristow said.

Ristow also said the audit had uncovered "apparent campaign violations in the form of campaign contributions."

Top union leaders, staffers and their relatives — 26 people total — were involved, he said.

They were reimbursed for $19,500 in political contributions, which primarily went to top Democratic campaigns, including Hillary Clinton's failed presidential bid in 2008 and Sink's failed gubernatorial run last year.

Ristow declined to name the individuals involved, citing the criminal investigation.

It violates both state and federal election law to reimburse people for campaign contributions.

State law says, "A person may not make any contribution through or in the name of another, directly or indirectly, in any election."

On the matter of overpayments, auditors reported two top union officials — Bernie Schultz and Ronney Virgillito — also received amounts ranging from $10,000 to $30,000 each.

Ristow stressed those amounts could change and added, "It is also important to note that none of the officers appear to be aware that they were being overpaid."

Santeramo, who has been union president for 10 years, has railed against waste and corruption in the school district. He earned $189,000 a year until July when he took a 21 percent pay cut.

Santeramo was a persistent critic of former Superintendent Jim Notter. He brought a jar of olives — his version of an olive branch — to a board meeting in February as a gesture of good will during tense and prolonged salary negotiations.

But it wasn't until Notter retired in June that the teachers union settled its contract, with the district giving each teacher a $500 cash bonus.

Santeramo hasn't spared new Superintendent Runcie. He criticized him last month for giving salary increases to two top district administrators who were promoted. He said, "You have a select few now who are being given a lot of benefits."

Santeramo was a teacher for 17 years before joining the union full time.

Four members of the Broward union's executive board sent a letter Monday calling for Santeramo to be removed as president. Citing the audit, the members accused him of falsifying budget reports to conceal financial problems.

Moskowitz said those allegations were "completely untrue and fabricated."

A vote on Santeramo's expulsion could be taken at 4:30 p.m. Tuesday at BTU offices in Tamarac.

In a message to about 820 BTU stewards sent Monday, Santeramo and the executive board say the union will hire a new financial manager to oversee and manage union finances. The union also will "establish a new union budget, audit, constitution and bylaws committees."

"The process of evaluating the BTU's financial operations, moving the union forward in a positive direction and building a stronger, more united organization remains a top priority," the message says.

Staff researcher Barbara Hijek contributed to this report.

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