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Former Teamsters Official, Three Others Sentenced For Health Care Scheme

March 4, 1987

DETROIT (AP) _ The son of former Teamsters president Frank Fitzsimmons and three others were sentenced to prison Tuesday for their roles in a kickback scheme involving a $19 million union health care contract.

U.S. District Judge Ralph Freeman sentenced Richard Fitzsimmons to five years in prison term and fined him $5,000 on his conspiracy conviction.

The younger Fitzsimmons is a former vice president of Teamsters Local 299 in Detroit. His late father served as president of the international group.

Freeman earlier had dismissed Fitzsimmons’ convictions for racketeering and bribery.

Three other men were sentenced on their September convictions for delivering Teamsters medical care services to Delaware Professional Services in Chicago in exchange for cash kickbacks and vacations.

Charles Collins, 42, was sentenced to concurrent terms of seven years each for racketeering and conspiracy and three years on each of four counts of bribery. Collins is former executive director of the Michigan Conference of Teamsters Welfare Fund.

Roger Towne, 51, was sentenced to three years in prison and fined $25,000 for conspiracy to violate racketeering laws and to commit bribery. Towne was an officer of Delaware Professional Services and of Occumedics Ltd. of Michigan.

Sol Schwartz, 69, was sentenced to five years’ imprisonment and fined $10,000. He was a manager of Federal Services Co. Ltd. and Federal Computer Systems Inc., both of which performed claims work for the Teamsters fund.

Fitzsimmons, Towne and Schwartz were allowed to remain free on bond pending appeal. Freeman denied Collins’ request for bail.

The September convictions completed a nine-month trial in which part of the evidence consisted of taped conversations of insurance executive Allen Dorfman and Edward Brown, owner of Delaware Professional Services who died of cancer in 1984.

Dorfman, suspected by federal authorities of being a link between the Teamsters and organized crime, was shot to death in 1983 near Chicago.

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