EXCLUSIVE: Labor Dept. investigates theft from union - Hawaii News Now - KGMB and KHNL

EXCLUSIVE: Labor Dept. investigates theft from union

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The U.S. Labor Department and Honolulu Police are investigating the alleged theft of more than $80,000 from the Hawaii Carpenters Union.

In a filing with the Labor Department, the union said it discovered that one of its supervisors was behind the alleged fraud and that it would seek to prosecute the man.

The suspect worked at the union's Kalihi headquarters and has since been fired.

Hawaii News Now is not naming the man because he has not yet been charged or arrested.

The Carpenters Union's most recent financial filings with the Labor Department spells out how the alleged scam worked.

The money came from sales of textbooks to apprentices who are just starting to learn the trade.

Instead of depositing the cash into a union account, the manager is accused of pocketing it and issuing bogus receipts.  

Sources say the incidents occurred over several years and that the losses could exceed $80,000 dollars. The union has hired a forensic accounting firm to further investigate, they said.

Hawaii News Now spoke to the suspect today and he denied wrongdoing and claimed the union has made him the scapegoat for its losses.

The union declined comment, citing the ongoing investigation.