Labor Racketeering in The 1950s
In 1950, Dioguardi returned to labor racketeering. He was appointed Regional Director of the United Auto Workers-AFL (UAW-AFL), and received 12 charters for paper locals in the garment industry. Criminals formed the membership of the paper locals, and Dioguardi demanded money from employers who wished to remain union-free and extorted cash from unionized employers who wished to avoid strikes and other labor troubles. Dioguardi was arrested for extortion in July 1952. Meanwhile, New York state officials charged Dioguardi with tax evasion (see below). Although Dioguardi was never convicted for this labor racketeering incident, he was removed from his post in February 1953 by the UAW-AFL and ejected from the union in April 1954.
In the midst of the 1952-54 labor racketeering scandal, Dioguardi was charged with tax evasion. New York state tax officials charged that Dioguardi had taken a bribe when selling his Pennsylvania dress factory, and failed to report the bribe as income. Dioguardi denied the charge, but he was found guilty in March 1954 and sentenced to 60 days in prison. This conviction, rather than the allegations of labor racketeering, was the pretext used to remove him from his UAW-AFL position.
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