The FBI and U.S. Labor Department are looking into two deals involving Andy Stern — over a six-figure book contract given to the former head of the Service Employees International Union and payments to a labor leader convicted on separate fraud charges, a source familiar with the case told Fox News on Tuesday.
Alejandro Stephens, who was sentenced early this month to four months in prison and three months of home confinement for defrauding a non-profit organization in “bogus consulting agreements,” is former president of SEIU local 660 in Los Angeles.
Questioning of Stern, who is a member of President Obama’s debt commission, revolve around whether he paid Stephens $150,000 to do nothing as the local union boss. Stephens and Stern met with federal agents this summer to answer questions about the relationship.
An SEIU spokesman told Fox News that no labor official has been contacted in any way nor has received any inquiry of any kind from federal law enforcement officials regarding any investigation of Stern, who had signed off on Stephens’ contract.
But the spokesman noted that when several unions merged to form SEIU local 660 in 2007, Stephens was dropped as president. He was offered a $75,000 per year consulting job.
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