EMBEZZLING EX-UNION CHIEF HAD DRUG HABIT

MASSILLON, OH -A substance abuse problem may have driven a former
Massillon union leader to embezzle more than $15,000 in cash,
according to prosecutors. Kenneth Saltz Jr., ex-president of United
Steelworkers Local 1124, was placed on two years probation last month
by U.S. District Court Judge Patricia Gaughan. Saltz also was ordered
to serve six months electronically-monitored house arrest, court
records show. As part of the sentence, Saltz was ordered to abstain
from drugs and alcohol. Local 1124 president Ray Perez declined to
comment Tuesday. In September, Saltz pleaded guilty to stealing
$15,800 from the union. According to court documents, Saltz forged and
cashed 55 union checks totaling $14,042 between May and August 2006.
Saltz reportedly wrote the checks on an account funded by union dues.

Local 1124 represents roughly 200 hourly employees at Republic
Engineered Products and Republic Special Metals. Court records also
show Saltz charged $1,767 on a union credit card. "Basically, he was
writing fictitious checks off the union account and someone discovered
it," said Assistant U.S. Attorney Carol Skutnick. "The checks required
two signatures. He was signing his name and somebody else's. (They)
got a little suspicious and it came to light." The United States Labor
Department launched an investigation into Local 1124's finances after
Saltz resigned as president in 2006 citing personal reasons. Saltz
repaid most of the money before he was indicted on federal charges.
"He had committed a crime so he still had to be prosecuted," Skutnick
said. The judge recommended probation for Saltz based on federal
sentencing guidelines, Skutnick said. One factor that worked in Saltz'
favor was the fact that he did not have a criminal record. If Saltz
doesn't follow the rules of his probation, another court hearing
likely would be scheduled.

It would be up to the judge's discretion to sentence Saltz to prison,
according to Skutnick.