Federal officials announced yesterday that Vincent Callaghan, business representative of Local 798 Theatrical Make-Up Artists, Hairstylists of The International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts of the United States, Its Territories and Canada has been charged with a scheme to defraud Local 798 of the intangible right to the honest services of a Business Representative of Local 798 through the use of the mails.

According to the complaint, Callaghan entered into contracts to sell condominium apartments in a union-owned building to his relative, his relative’s girlfriend and a company owned by the girlfriend when these transactions had not been authorized by Local 798's Executive Board.

According to the charge, by statute, a union official owes a fiduciary duty to the union and its members. Specifically, under the labor laws, a union official must hold the union’s money and property solely for the benefit of the union and its members and to manage and invest the union’s assets in accordance with its constitution and by-laws and any resolutions of the governing bodies. In addition, a union official is required by statute to refrain from dealing with the union on behalf of an adverse party in any matter connected with his or her duties.