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The union, Local 1181 of the Amalgamated Transit Union, has been placed in trusteeship, and Salvatore Battaglia, its president, has pleaded not guilty to federal charges of extortion, bribery and cooperating with the Genovese crime family.
In an unusual move, one of the locals in New York City's largest municipal union was placed in trusteeship late Friday after its embattled president was faulted for losing $1 million in members' dues in the stock market and buying a $41,000 Cadillac for her predecessor as a retirement gift.
The Los Angeles local was placed in trusteeship last week and all of its officers were removed.
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At the start of the Iraq war, around $23bn-worth 23bn-worthofey was placed Iraqie trusteeship of the US-led coalition by the UN.
For 12 years, he was the court-appointed trustee of Teamsters Local 560, the first union organization placed in a trusteeship under the federal Racketeer Influenced and Corrupt Organizations Act.
He noted that Local 325 had been temporarily placed into trusteeship in 1999 because of financial irregularities and undemocratic practices.
Mr. Saunders said he intended to bring more democracy and accountability to union locals, especially those placed into trusteeship.
Dave Regan, the S.E.I.U. official who leads the local placed into trusteeship, said that with this defeat, the rival union would be short on resources and should close down.
Ray Marshall, a former labor secretary, has been appointed the hearing officer in the dispute and is expected to rule this week on whether Mr. Rosselli, who was re-elected to a three-year term on Tuesday, should be ousted and his local placed into trusteeship.
The announcement comes 11 days after a second Los Angeles local, representing 155,000 home-care workers, was placed into trusteeship because the local and its training center had paid hundreds of thousands of dollars to companies run by the wife, mother-in-law and friends of the local's president.
The union placed the local in trusteeship and the national leadership took over, reopening negotiations.
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