2 USW officials found not guilty of embezzlement

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Updated: March 5, 2012 8:05AM

A federal jury found two former officers with United Steelworkers Local 1011 in East Chicago not guilty of embezzling money from the union, according to court records.

The four-day jury trial at U.S. District Court in South Bend for Jesse Daniels Sr. and Loren Hanson wrapped up Thursday with the verdict. The two men were accused last year of padding their paychecks from 2005 to 2008. Federal prosecutors argued that Daniels, who served as the union’s secretary, paid himself an extra $19,500 while Hanson paid himself an extra $21,450.

The jury sided with the defendants, however. Elliot Zinger, attorney for Daniels, said he was pleased with the trial.

“We asked the jurors to used their common sense, and I think they did,” Zinger said.

Zinger said the two men never intended to commit a crime and that the whole issue was a mistake. According to court filings, Daniels had found out his salary had decreased at a time when other union officers got raises. Zinger said there was never any talk in the union about Daniels getting a pay cut and that, in fact, Daniels did more work than any other officer.

Zinger said everyone on the executive board signed checks during those years and that everything was kept in the union’s ledger.

Hanson’s attorney, Kevin Milner, could not be reached for comment.