BATH, Maine — A former official for the largest union at Bath Iron Works is scheduled to plead guilty in federal court on Wednesday to embezzling more than $280,000 from Local S6 of the machinists union.
Ryan Jones, 34, of Bath was indicted in August on a single Class C felony count of embezzlement of union funds.
Prosecutors said that from May 2012 to November 2016, while serving as secretary-treasurer of the union, Jones embezzled approximately $280,865 in union funds.
Assistant U.S. Attorney Daniel Perry wrote in court documents that had the case gone to trial, he would have presented evidence including testimony, bank records and fraudulent bank records.
Jones served as secretary-treasurer of the local from 2010 to early this year. He was elected in October 2009 as the local union was resuming control of its operations after it was placed under trusteeship in 2008 amid charges of financial improprieties.
New union President Mike Keenan, Vice President Rocky Grenier and Secretary-Treasurer Jason Perry were elected in October and took office in January.
Union officials on Friday declined to comment on the plea. Jones’ attorney, Richard Berne, did not immediately return a phone call seeking comment.
The new union officials discovered financial discrepancies and contacted federal investigators, according to court documents. An investigation revealed that Jones allegedly had made approximately 199 unauthorized withdrawals from the union bank account, and generated fraudulent monthly bank statements to conceal the theft. He also provided fraudulent bank statements to union auditors, Perry wrote.
According to an agreement to plead guilty signed by Jones and his attorney, and filed Thursday with the court, Jones will agree to plead guilty to embezzlement from a labor union.
He faces a maximum sentence of five years in prison and $10,000. The court may also order him to pay restitution to the union.
In August, IAM Grand Lodge officials said in a statement that the grand lodge had discovered the missing funds and conducted an internal investigation according to the terms of the union’s constitution. That investigation determined that no other current or past Local S6 officers were involved in the alleged theft, according to the statement.
“The union found that the former officer misappropriated these funds and barred him from holding union office,” the statement continues. “The union then on its own initiative informed the Department of Labor of this theft and turned over all documents to the DOL, which resulted in this indictment.”
Officials said the union has filed a claim with its bonding company and expects full restitution to be paid to members of Local S6.
Jonathan Battaglia, spokesman for the IAM Grand Lodge, did not immediately return a phone call on Friday.