The public employees’ union AFSCME Maryland Council 3 paid out $1 million to an apparently fictitious Washington, D.C., law firm three years ago – losing all of the money but never admitting the loss to its members.

Seven large payments were electronically transmitted to “The Law Offices of Brian Lace, P.C.” between January and June 2022 before the council realized it was “a victim of a phishing scam,” according to a document filed by the union with the U.S. Department of Labor.

Amounting to $1,006,150 overall, the money went to an apartment building near Dupont Circle, “initially for legal fees,” but was also described as “advisory services – phishing scam,” according to the union’s LM-2 disclosure report.

Council 3 says it contacted “law enforcement,” but The Brew found no record of any public investigation or any legal filings in Maryland.

The Baltimore State’s Attorney’s Office said there are no records of a complaint filed by AFSCME. “Brian Lace” is not listed as a member or former member of the District of Columbia Bar.

The funds were never recovered, the union said in a 900 IRS form filed last December. This is the first time the financial loss has been reported in the media.

Disclosure of the phishing incident comes as Council 3 is still grappling with the workplace deaths of two members while on their trash collection routes last year.

The union’s Local 44, which represents Baltimore blue-collar municipal employees, subsequently came under harsh criticism from union members, who said the union failed to advocate for sanitation workers’ suffering from dangerous working conditions and years of low pay.

(Sanitation workers’ allegations were documented as part of a lengthy report by Baltimore’s inspector general, who noted that her request to obtain financial documents was denied by the union.)

Last month’s election at the local, meanwhile, has prompted multiple challenges and is now under investigation by the international’s judicial panel.

Unanswered Questions

Many questions remain about how Maryland’s largest union, which represents 50,000 government and higher education employees across scores of locals, became a victim of what it said was a phishing scheme.

In particular, how did such payments – many times higher than normal union disbursements – go undetected for so many months?

Individual disbursements to “Brian Lace” started off at $49,680 in January 2022, but escalated to $289,450 and $348,650 just days before Council 3 said it uncovered the “scam” in June 2022 (see below).

During the same time, the union’s regular law firm, which handled grievance and disciplinary cases, was submitting bills for $5,000, $18,000 and $32,000, or a fraction of the “Brian Lace” payments.

Council 3 has not responded to written questions by The Brew or to a request for a sit-down interview with Patrick Moran, the union’s president.

Previously, Moran banned The Brew from entering its headquarters building (at the invitation of a member), and his subordinates have ordered candidates for Local 44 offices not to speak to the media.

According to Council 3’s constitution and its 61-page Financial Standards Code, the president co-signs with the secretary-treasurer all checks drawn from union accounts, “verifying expenses are appropriate and documented.”

Article VIII of the constitution goes on to say that the president “may, with the approval of the Council Executive Board, designate an alternate to sign instead. No checks shall be issued without the signature of either the secretary-treasurer or the president.”

Moran has been Council 3 president since 2012. Cherrish Vick has been its part-time secretary-treasurer since 2020.

Vick receives no compensation, while Moran was paid a $144,840 salary in 2024, plus $103,229 more for “official business disbursement,” according to the union’s latest LM-2 report.

The union also reported spending $2.1 million in representation activities, $285,000 for political activities (including $97,000 in campaign contributions), $1.7 million in general overhead and $720,000 for administration in 2024.

Key Documents

–0–

• To reach a reporter: reuttermark@yahoo.com