FORMER JACKSONVILLE TEACHERS UNION PRESIDENT AND VICE PRESIDENT SENTENCED IN $2.6 MILLION EMBEZZLEMENT SCHEME

JACKSONVILLE, FLORIDA — The former president and executive vice president of Duval Teachers United (DTU), a labor union representing thousands of public school employees in Duval County, have been sentenced to federal prison after admitting to a years-long scheme that siphoned more than $2.6 million in union funds for personal benefit.

Chief U.S. District Judge Marcia Morales Howard sentenced Teresa Brady, 70, to 27 months in federal prison. Ruby George, 82, received a sentence of one year and one day in federal prison followed by six months of home confinement. Both defendants pleaded guilty to conspiracy to commit wire fraud and mail fraud, as well as aiding and abetting wire and mail fraud. Brady additionally pleaded guilty to one count of money laundering.

The court ordered forfeiture of $2,600,235.99, representing proceeds of the criminal conduct. The same amount was ordered in restitution to Duval Teachers United.

Duval Teachers United represents approximately 6,500 members, including teachers, paraprofessionals, and office personnel within Duval County Public Schools. The organization represents roughly 80 percent of eligible employees in the district and operates on annual revenues of approximately $5 million, generated primarily from member dues.

According to court filings, the scheme spanned nearly a decade, from 2013 through 2022. Prosecutors established that Brady and George manipulated internal compensation systems by selling back leave time that they had not accrued or earned. In addition to falsified leave payouts, the defendants issued themselves unauthorized bonuses and fabricated reimbursement payments.

The method relied on internal control circumvention. Brady and George allegedly signed each other’s checks to authorize payments without independent review, preventing scrutiny from the union’s secretary-treasurer and board of directors. Court records indicate that the pair concealed distributions by providing inaccurate information to auditors and by failing to disclose the improper payments in legally required annual financial statements submitted to the State of Florida’s Public Employee Relations Commission.

Mail fraud charges stemmed in part from annual financial disclosures that were transmitted to state regulators. Wire fraud charges were tied to electronic fund transfers and interstate communications used to execute the scheme. The money laundering charge against Brady reflects the movement and concealment of proceeds derived from the fraudulent activity.

Federal sentencing in public trust fraud cases typically weighs duration of misconduct, total financial loss, abuse of fiduciary responsibility, and attempts at concealment. In this case, the extended timeline and the defendants’ leadership roles within the organization were central to the court’s determination.

Labor unions operate as fiduciary institutions under federal and state labor laws, with leadership obligated to safeguard member dues and maintain transparent accounting practices. Financial misrepresentation within such organizations can undermine collective bargaining stability and member confidence. Federal prosecutors emphasized that the integrity of internal governance systems depends on adherence to disclosure requirements and independent oversight.

The investigation was conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Prosecutors from the U.S. Attorney’s Office for the Middle District of Florida handled the case, including forfeiture and restitution proceedings.

Both defendants have now been sentenced following their guilty pleas. The restitution order seeks to return the full amount of misappropriated funds to Duval Teachers United.

The case concludes a prolonged internal embezzlement scheme that diverted member-funded resources over nearly ten years and reinforces federal enforcement against financial crimes involving fiduciary abuse.

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