Bakersfield union investigates huge embezzlement

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Updated: 7/14/2010 10:42 pm
A Bakersfield woman is under investigation on allegations of embezzling more than $350,000 of insurance premiums from local members of the Service Employees International Union.

Brandi Marcella Madewell told Bakersfield Police detectives she took the money to pay Internet gambling debts, investigative documents indicate.

Calls to Madewell's listed phone number were not answered Tuesday.

The Kern County Public Employee's Insurance Agency, doing business as Valley Benefits Inc, is an organization founded by members of the Kern County Public Employees Association in the late 1980s.

Today, Valley Benefits offers insurance to all members of SEIU Local 521. Members can buy casualty, life and disability insurance through Valley Benefits, and all commissions go back to the insurance agency to benefit the members.

In late February Madewell was placed on administrative leave amid reports from vendors they were not being paid, SEIU spokeswoman Khanh T. Weinberg said.

The union notified the Bakersfield Police Department, which started an investigation.
Madewell apologized to union officials for the theft, according to documents filed by detectives with the Superior Court.

"I interviewed Madewell on two occasions and she admitted to the embezzlement," Det. Jeff Watts also wrote in the report.

The investigation was submitted to the District Attorney's office Friday or Monday, Sgt. Mary DeGeare said Tuesday.

The case could result in grand theft charges, she said.

The union took over operations of the insurance agency in February and loaned Valley Benefits money to ensure all premiums were paid.

There has been no effect on members participating in Valley Benefits or their insurance coverage, Weinberg said, noting the union was working to notify employees of the theft.

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The views expressed here do not necessarily represent those of KGET TV 17 - In the Spirit of the Golden Empire

dhsssw - 7/18/2010 4:02 PM
The local union denies that Brandi Madewell was employed by them. If the former Valley Benefits Director was not an SEIU 521 staff member, how could she be placed on administrative leave by SEIU 521? Why was the SEIU 521 logo used on her business card and business letterhead? Why was her e-mail address "brandi.madewell@seiu521.org"? Why was her phone number and office address the same as the SEIU 521 office on 17th St? Why did the union website feature her on the SEIU Local 521 staff page? Why was she on the SEIU 521 "Meet the Staff" flyers and union bulletin boards? Why was SEIU 521 obligated to pay the $350,000 she stole?

Paranah - 7/14/2010 2:35 PM
Not to worry, the union will just increase the members fees to recoup the loss. And the members will be happy to pay the increase. The union is looking after their best interest.

Misunderstood - 7/14/2010 11:19 AM
Crime does not pay anymore. Computers and cameras make it easier than ever to get caught. Lack of National Regulation makes it easy for crooks to find victims. Watch what happens in the future, online cyberCourt? You heard it here first.Be vigilent.

Dragon - 7/14/2010 10:27 AM
Gee, someone stole from one of the biggest Legalized Extorionist Unions in the Nation. What's that they say about payback?
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