QUEENS, N.Y. — Eight individuals have been indicted for allegedly orchestrating a scheme to steal death benefits intended for the families of deceased members of the United Service Workers Union (USWU) Local 74, the Queens District Attorney’s Office announced Wednesday. The group is accused of fraudulently redirecting more than $180,000 over five years.
Catherine Wenzell-Reyes, a former employee of the union, is charged with being the mastermind behind the operation, which allegedly began in December 2017. According to the indictment, Wenzell-Reyes used her position to submit falsified life insurance claims, directing benefits meant for the rightful beneficiaries to her co-defendants.
“Hard-working union members trusted that their life insurance policy would be paid out to their grieving loved ones upon their death,” Queens DA Melinda Katz said in a statement. “Instead, union worker Catherine Wenzell-Reyes and her co-defendants allegedly engineered a stolen death benefit scheme.”
The defendants face charges including grand larceny, criminal possession of stolen property, and conspiracy. Four of the accused have already been extradited from Florida and appeared in court Wednesday, with two others expected to be arraigned later this month.
The investigation was initiated in April 2022 after a relative of a deceased union member reported irregularities in the processing of her brother’s life insurance claim. An inquiry by the DA’s Frauds Bureau revealed a broader pattern of fraudulent activity.
The defendants are accused of collecting benefits through falsified records in at least eight cases involving deceased union members, with payouts totaling approximately $181,900. The investigation is ongoing.
