FEDERAL SA PROBE STILL ON, BUT ARRESTS NOT ‘IN NEAR FUTURE’
NEW YORK — Federal agents are continuing to probe alleged widespread bribery in the garment center, but do not expect further arrests or indictments in the near future.
“We continue to interview those individuals already arrested, follow those leads as far as possible and expect the investigation to lead to more arrests, but feel we are not close to any overt action in the near future,” an agent close to the Labor Department’s Office of Labor Racketeering probe said Monday.
His comments came in response to a report Sunday in New York’s Daily News implying that further arrests growing out of the probe into bribery to sidestep payments to the ILGWU benefit funds were imminent.
As reported in December, two ILGWU organizers and 17 contractors and executives were arrested and charged with taking part in the bribe-paying scheme. At the time, Norman S. Transeth, special agent in charge of the Labor probe, said more arrests were likely.