of proving the Associate Membership Program Charge against Respondents Abrego, Ottman, McKay, Cahill, Brechner, and Simmons. See March 5, 1993 Opinion & Order, at 10-12. Respondents Abrego, Ottman, McKay, Cahill, Brechner, and Simmons thus breached their fiduciary duties to the members of IBT Locals 868 and 917 in violation of Article II, Section 2(a) and Article XIX, Section 6(b) of the IBT Constitution by executing a scheme, under the guise of an associate membership program, to enrich themselves. This is sanctionable conduct under the Consent Decree.
Only after carefully considering each Respondent's culpability, as well as the seriousness of their infraction, did the Independent Administrator impose a common penalty upon these six Respondents. Moreover, before even reviewing this matter, the Independent Administrator invited and received further submissions from these six Respondents in order to ensure the imposition of an appropriate sanction. After considering this material, the Independent Administrator reduced the penalty originally imposed. This Court finds that the penalty imposed on Respondents Abrego, Ottman, McKay, Cahill, Brechner, and Simmons by the Independent Administrator is the minimum sanction appropriate in light of Respondents' wrongdoing.
Respondents' assertion that those Respondents who gained the most from the impermissible conduct encompassed in the Associate Membership Charge benefitted from the imposition of this minimum sanction does not render the penalty arbitrary and capricious. Because Respondents Abrego, Ottman, McKay, Cahill, Brechner, and Simmons each engaged in similar conduct and have been disciplined under an identical charge, a uniform penalty is warranted. The fact that some Respondents may have received a greater benefit from their impermissible conduct than did others in no way obviates the propriety of imposing uniform sanctions on all six.
The Independent Administrator carefully considered the evidence presented and exercised his discretion in formulating a penalty for Respondents' wrongful conduct. On this record, the Independent Administrator's decision is not arbitrary or capricious. The penalty imposed on Respondents Abrego, Ottman, McKay, Cahill, Brechner, and Simmons is affirmed.
IT IS HEREBY ORDERED that Mario Abrego's, Robert Ottman's, Langston McKay's, Walter Cahill's, Saul Brechner's, and Walter Simmons' objections to the Independent Administrator's Supplemental Decision are DENIED; and
IT IS FURTHER ORDERED that, effective immediately, the stay of penalties imposed by the Independent Administrator is dissolved.
Dated: June 10, 1993
New York, New York
David N. Edelstein