CHICAGO (AP) _ The Teamsters union is suspending a local president because of alleged organized crime connections and corruption.

Teamsters General President Ron Carey placed Local 743 into trusteeship after a review board found that Robert Simpson, president of the 20,000-member local, allowed former president Donald Peters to remain involved in the local's operation.

A 1989 settlement of racketeering charges against Peters barred him from holding any position in the Teamsters.

According to a probe by the Independent Review Board, which was established as part of the settlement, Peters continued to receive payment from Teamster funds for expenses and represented Local 743 at various meetings.

The review board also recommended charges against the Local 743 executive board for violating bylaws and giving three local union-owned luxury cars to retiring officials, including Peters.

''It is not clear whether other officers in the union will be suspended,'' Teamsters spokeswoman Nancy Stella said Monday. ''The trustee has the power to decide that.''

Named as the local's trustee was Eddie Kornegay, who previously served as the president of Teamsters Joint Council 55, an 18,000-member local in the Washington, D.C., area.