Evening star., 1960-12-07
Hoffa Indicted
On Z Counts
OF Mail Fraud
Union Fund Misuse
In Florida Lund
Deal Charged to 3
By the Associated Press


the Teamsters Union was in
dicted by a Federal grand jury
at Orlando, Fla, today on mail
fraud charges involving alleged
misuse Of union funds.
Attorney General Rogers, who
announced the indictment, said
it also names Henry Lower.
former president Of a Detroit
Teamsters local. and Robert E.
Mccarthy, jr., onetime branch
manager of the Bank of the
Commonwealth, Detroit.
Mr.. Rogers said the indict-
ment accuses the three of using
more than a half million dol
lars Of Teamsters funds in a
land development project in
Brevard County. Fla.
The 12-count indictment
charges use of the mails to
defraud on eight occasions, and
use of interstate telephone or
telegraph service for the same
purpose on four other occa-
sions.
4 Locals Named as Victims
The land development project
was launched in late 1954by q
company known as Sun Valley
Inc, which maintained its
principal Offices in Detroit with
Mr.. Lower as president.
The indictment said Sun VAL
ley's operating funds came
from Detroit Teamster locals
Truck Drivers No. 299, Food
and Beverage Drivers No. 337
Automobile Drivers No. 376 anc
Teamsters Joint Council 43.
The grand jury charged that
Mr.. Hoffa. Mr.. Lower and Mr.
Mccarthy Schemed to defrauc
these four Teamster units. anc
falsely represented that the
Sun Valley company was spon'
sored by the Internationa
Brotherhood of Teamsters
whereas it was owned, operated
and controlled by Mr.. Hoffs
and Mr.. Lower.
Financing Described
The indictment said Sun Val.
LEY, in November Of 1854
bought an option to purchasI
some 2.475 acres Of land ir
Brevard County for $150.000
and that the defendants opened
a checking account in the name
Of Sun Valley in the Florids
National Bank at Orlando ant
obtained bank loans by de-
posting 100000 Of unior
money in that bank.
The indictment said another
loan for 100000 was latel
obtained after q deposit in tina
amount had been made.
Mr.. Hoffa and Mr.. Lower
were accused Of using Sun Val
Iley's funds for their persona
use.
The grand jury said the lanc
development was represented
as an ideal location for re-
tired teamsters and that build
ing lots were advertised a!
being "all on high, dry anc
rolling land. whereas In fac
many of the lots offered anc
sold were so low and permeatec
with water as to make then
unsuitable for construction oi
homes and dwellings"
Lower Taken Into Custody
The frauds charged are pun.
ishable by imprisonment up
to five years and fine of ur
to $1,000. or both. on each
count.
The Justice Department saic
shortly after the indictment
was announced that Mr.. Lower
had been taken into custody II
Detroit.
It said the others at thai
time still were at liberty.
The Justice Department sale
the Orlando indictment was thl
result Of more than 13 months
Of investigation by postal in
spectors, Internal Revenue
agents. the FBI and the stat
Of department attorneys.
Mr.. Hoffa, now At, and tn,
provisional president of the in
ternational union since 1857
repeatedly has clashed will
Federal authorities.
In July, 1857, before he be-
came Teamsters president. h,
was acquitted on charges o
conspiring to plant a spy OF
the staff of the Senate Racket
Committee which was investi
eating him.
Later in 1857 a New Yorl
trial at which he was charget
See HOFFA, Page A.