AFM Taking Action Over Alleged Money-Skimming

In-house audits at the American Federation of Musicians (AFM) have uncovered possible scams involving the union's health-care and retirement fund.

AFM has fired Enex Steele, who was national executive director of the Sound Recording Special Payment Fund at the union's headquarters in New York. According to AFM president Thomas F. Lee, Steele commited acts that were "in flagrant disregard of the fiduciary obligation" owed to the fund. Insiders say Steele may have been involved in skimming money from the fund, which provides health and retirement benefits to non-featured artists on recording sessions. "The investigation will continue to determine to what extent, if any, the fund has lost any money because of Mr. Steele's actions," says Lee.

Additionally, at AFM's behest, the Los Angeles Police Department has issued felony warrants to two members of the union's Local 47 branch. John Rosenberg and Robert O'Donnell have been charged with grand-theft embezzlement. The two are alleged to have engaged in a scheme of falsely claiming to have participated as sidemen in a number of nonexistent recording sessions over the last five years. The two allegedly scammed "many thousands of dollars" from the fund, according to AFM. The warrants were issued Aug. 17 following a yearlong investigation by the union and LAPD.