citypaper: archives

Membership has its privileges.
In discussions with Washington Teachers' Union officials, board trustees were careful to ask if all the bills were paid. But they didn't bother to ask what the bills were for.

Cover Story

Until October, Leroy Holmes was a fixture in the lobby of the K Street offices of the Washington Teachers' Union. Holmes wasn't on the union's payroll, yet everyone on staff knew him. He was the guy you'd get to help carry heavy boxes or make deliveries. He was the union's odd-jobs man, President Barbara Bullock's personal driver. Anywhere she needed to go, he would take her in one of his three Cadillacs.

He was there for the big jobs, too.

Holmes helped spearhead the union's creative approach to financial management. Here's how it went: Checks were made out to Holmes, he cashed them, and then he forwarded the proceeds to union officials or their relatives, while pocketing some for himself, according to a union audit released last week. On some checks, the names of payees were crossed out and Holmes' name was put in their place. More than $1 million in union checks passed through Holmes' hands from 1998 to 2001, the audit alleges.

"When I noticed [Holmes] was getting a lot of checks in his name and he wasn't reporting that income, I told him he shouldn't be cashing any more checks for them," says James Goosby Jr., Holmes' tax preparer. Goosby also prepared the tax forms for Bullock and the union--documents that the FBI alleges are wildly inaccurate.

"I don't think he understood the legal ramifications of what he was doing. He's not too bright when it comes to the law," says Goosby. "I think he wanted to keep his job, so he didn't complain enough."... Continued

Issue of Jan. 24 - 30, 2003

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