By Doug Cunningham

SEIU International has sued its California United Health Care West affiliate in federal court, alleging financial misconduct against ten officers of the California local. The suit alleges that UHW-W President Sal Rosselli and nine other officers diverted $3 million of UHW-W dues money to a fund they created and control.

The suit accuses the UHW-W officers of creating the fund under false pretenses to have access to money to fight any attempt by SEIU International to take over the local union.

SEIU International spokesperson Andrew McDonald says, “The highest ranking UHW-W officers used millions of dollars in members’ dues money to run a shadow operation off the books and they intentionally deceived their own members and the federal government about how the money would be used." Rosselli calls the suit a “PR circus” and a waste of dues money.

SEIU International is asking that the federal court to “impose a constructive trust” over United Healthcare Workers West and the fund in question – called the Patients Education Fund. The suit demands an accounting of UHW-W money diverted to the fund.

The suit also seeks a preliminary and permanent injunction to prevent Rosselli and the other defendants from disbursing any of the funds and asks the court to order the return of all UHW-W monies from the new fund.

The suit is the latest volley in an internal battle within SEIU. UHW-W wants to reform SEIU, alleging that the union isn’t being run democratically and that SEIU is too closely cooperating with employers in “top-down” organizing and collective bargaining deals.

UHW-W has expected SEIU to use a trusteeship to take over operation of the local in retaliation for the local's internal poltiical dissent. SEIU has insisted a trusteeship aimed at silencing internal political dissent isn’t in the works. But a lawsuit alleging financial misconduct could well be the prelude to an SEIU International takeover of its 141,000 member California local.