The trial of the Washington Teachers Union officials accused of embezzling $4.6 million resumed yesterday with testimony from a man who said he established a shell company to cash union checks, then hide the money for defendants.
Errol Alderman said in U.S. District Court that he started Expressions Unlimited for longtime friend Michael Martin, a relative of defendant Gwendolyn Hemphill, but was never paid for his work.
“I accepted checks written to me that I didn’t work for, [but] I didn’t get a dime for it,” said Alderman, who awaits sentencing for conspiracy to launder money.
Alderman, 30, explained that Martin, 45, said he could not start the company because he was related to Mrs. Hemphill. The men met while working at the Coalition for the Homeless organization and the District’s HIV/AIDS agency.
“I [started the company] because he was a friend of mine and someone I could trust,” Alderman said.
Martin has testified and is awaiting sentencing for conspiracy to launder money.
Alderman’s testimony came in the seventh week of trial for former union office manager Mrs. Hemphill, 63; former union treasurer James O. Baxter II, 50, and former accountant James A. Goosby Jr., 56.
Mrs. Hemphill and Mr. Baxter are accused of conspiracy and embezzling millions of dollars. Mr. Goosby is charged with helping hide the thefts of union money.
Also yesterday, Stephen Willeitz, district director of the U.S. Department of Labor, said a legally required financial report in 1998 showed no paperwork for expense accounts and other financial transactions from union President Barbara A. Bullock, 66, and Mr. Baxter.
The legal file shows that Mr. Baxter was paid $35,567, while Bullock received $86,408. Both had signed the legal statement.
However, Bullock, who is serving a nine-year sentence, testified a week ago about concealing expenses for clothing, jewelry, mink coats, parties, wigs, other expensive items and gifts to other union officials.
“The union must report every penny that is spent that fiscal year,” Mr. Willeitz said. “There were no expenses paid to her.”
He also said the investigation started with a tip from the Justice Department about suspected misappropriations.
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