Hudson Valley Union Official Accused Of Bribery

NEWBURGH, NY — An Orange County man has been accused of using bribery in his official position as a union official. Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, said John Ulrich, 48, of Newburgh, was charged with soliciting tens of thousands of dollars in bribes from a health plan administrator in exchange for using his influence to keep using the plan.

"As alleged, John Ulrich abused his position as the vice president of a labor union and trustee for its health plan by selling his influence to the union's health care administrator," Berman said.

"As part of this alleged scheme, Ulrich betrayed the trust of the union members who elected him in order to line his pockets with bribe money," he said. "This office is committed to prosecuting those who abuse their positions of trust for their own financial benefit."

According to the allegations in the indictment, Ulrich was a member and officer of the union, as well as a trustee of the health benefits plan.

In 2013, he was experiencing financial difficulties, authorities said, and solicited bribe payments from an executive of the health plan, which was at risk of losing the union's business.

The executive of the plan agreed to make $5,000 quarterly payments to Ulrich, officials said.

The next year, Ulrich demanded increased bribe payments and the plan's executive began paying them.

In 2015, authorities said, Ulrich again asked for additional payments which he received.

Ulrich was terminated as vice president and trustee of the union and plan after a special board meeting in February 2016.

In total, he received tens of thousands of dollars worth of bribes before being removed from office, officials said.

Ulrich was charged in four counts with conspiracy to solicit and receive bribe payments to influence the operation of an employee benefit plan, which carries a maximum penalty of five years in prison; soliciting and receiving bribe payments to influence the operation of an employee benefit plan, which carries a maximum penalty of three years in prison; conspiracy to commit honest services health care fraud, which carries a maximum penalty of 10 years in prison, and honest services health care fraud, which carries a maximum penalty of 10 years in prison.

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