Advertiser Staff

United Public Workers State Director Gary Rodrigues and his daughter were indicted today by a federal grand jury for allegedly defrauding the union. Prosecutors are seeking a forfeiture of over $200,000 as part of the case.

U.S. Attorney Steven Alm said Rodrigues, 59, and Robin Haunani Rodrigues Sabatini, 36, devised a scheme to defraud UPW and its members of money from the union's dental benefits and health benefit programs.

It was not immediately clear how much was allegedly taken in total in the alleged scheme, but federal prosecutors are seeking a return of $200,200 on the money laundering counts of the indictment.

Federal prosecutors allege that Rodrigues did not disclose that UPW premiums for dental benefits were more than required to cover expenses. The premiums were inflated to include a consulting fee that Rodrigues negotiated, the government alleges, which he directed be used to pay off a personal loan and to be given to a company that Sabatini incorporated.

The indictment further charges that Rodrigues failed to disclose to the union's executive board and members that he negotiated a consulting fee for Sabatini's company relating to a UPW contract for medical benefits.

Rodrigues and his daughter were indicted on 43 counts of fraud, embezzlement and money laundering. The maximum penalties for the most serious charge are 20 years in prison and a fine of up to $500,000.