Investment Manager Charged for Providing Meals, Hotel Rooms, Airline Tickets, and Other Things of Value to Union Official

A criminal information was filed charging Nicholas Delbrocco with two counts related to providing things of value to a person affiliated with the Ohio and Vicinity Regional Council of Carpenters in an effort to obtain business regarding the union’s pension and annuity fund, federal law enforcement officials announced today.

Delbrocco, 48, lives in North Kingston, Rhode Island. He was charged with offering, accepting, or soliciting to influence operations of an employee benefits plan; and conspiracy to commit mail fraud and honest services mail fraud.

Delbrocco was employed by and had an ownership interest in several investment advisory firms, according to the information.

PE61 was an officer, agent, and employee of the Carpenters’ Union, according to the information.

Michael Forlani and others were engaged in a project to develop facilities for use by the Louis Stokes Cleveland Veterans Affairs Medical Center in Cleveland. In and around 2007 and 2008, Forlani enlisted the help of several people, including PE61, to obtain financing for the project, according to the information.

Delbrocco provided things of value to PE61 to persuade PE61 to award and administer the Carpenters’ Union’s pension and annuity funds to Delbrocco and his businesses. Those things of value included airline tickets, frequent flier miles, rental vehicles, hotel rooms, meals, theater tickets, sporting event tickets, firearms, and help for Forlani with the VA Development project for a person identified, according to the information.

In one example, PE61 and a travel companion flew from Cleveland to Palm Springs, California, using approximately 75,000 airline miles Delbrocco had provided on or about February 24, 2006, according to the information.

On May 16, 2006, PE61 voted to allocate the investment of $25 million of Carpenters’ pension fund money to a Delbrocco’s business. The fund subsequently signed a contract and entered into an investment management agreement with Delbrocco’s business.

The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland, and Nancy L. Kelley following an investigation by the Federal Bureau of Investigation, the Department of Labor, and Internal Revenue Service-Criminal Investigation.

An information is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The Cuyahoga County corruption investigation is ongoing.