Former President of Alaska Railroad Workers Union Sentenced for Embezzlement of Union Funds

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that the former President of the Alaska Railroad Workers Union was sentenced in federal court in Anchorage today to serve one year and a day in federal prison for embezzling approximately $92,000 in union funds.

Jeffrey W. Davies, 43, of Wasilla, served as the President of the union between 2006 and 2014. According to Assistant U.S. Attorney Joseph Bottini, Davies began embezzling union money in 2011 and continued to steal or misapply union funds for his personal benefit until 2014 when the embezzlement was discovered. Following an investigation by the Federal Bureau of Investigation, it was determined that Davies had embezzled over $90,000 of union money in a three-year period of time. Davies was charged last year with felony embezzlement, and plead guilty in May of last year to stealing the funds.

In sentencing Davies to just over a year in federal prison, U.S. District Judge Sharon L. Gleason rejected Davies’ request that he be sentenced to a term of probation, noting that the embezzlement had taken place over a long period of time, and that Davies had grossly abused his position of trust with his fellow union members. Judge Gleason also ordered Davies to pay restitution to the Alaska Railroad Workers Union in the amount of $92,766.00, and directed that he pay a first installment of $3,000.00 of that amount by the end of this week, with payments of $1,500.00 per month thereafter. Following service of his jail sentence, Davies will be on supervised release for a period of three years and his compliance with paying the ordered restitution will be monitored by the United States Probation Office in Anchorage.

Mr. Schroder commends the Federal Bureau of Investigation for the investigation of this case, and also commends the assistance provided by the present management of the Alaska Railroad Worker’s Union.