Fiat Chrysler to plead guilty, pay $38M in U.S. corruption probe
Fiat Chrysler Automobiles US has agreed to plead guilty and pay a US$30 million fine for a corruption scandal at the union that represents its factory workers, authorities said Wednesday.
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The Associated Press ·
Posted: Jan 28, 2021 1:54 PM ET | Last Updated: January 28
In this May 6, 2014, file photo, a vehicle moves past a sign outside Fiat Chrysler Automobiles world headquarters in Auburn Hills, Mich. (The Associated Press)
FCA Pleads Guilty for Role in UAW Scandal U.S. Attorney Matthew Schneider says FCA conspired to make improper payments to high-ranking UAW officials which were used for everything from personal mortgage expenses, lavish parties and entertainment expenses.
Fiat Chrysler Automobiles US will appoint an outside compliance officer and pay a $30 million fine after agreeing to plead guilty to a federal charge of criminal conspiracy to violate U.S. labor laws.
The automaker says the settlement with the U.S. Attorney for the Eastern District of Michigan “resolves an investigation into past misconduct of certain former FCA US employees involving the UAW-Chrysler National Training Center.”
by Ed White, The Associated Press
Posted Jan 27, 2021 2:23 pm ADT
Last Updated Jan 27, 2021 at 2:24 pm ADT
DETROIT Fiat Chrysler Automobiles US has agreed to plead guilty and pay a $30 million fine for a corruption scandal at the union that represents its factory workers, authorities said Wednesday.
Federal prosecutors in Detroit charged the company with conspiracy from 2009 to 2016. The government said company representatives gave more than $3.5 million in cash and other things of value to senior officials at the United Auto Workers.
Details of the payoffs have been public for a few years and acknowledged during guilty pleas by FCA employees and others.
Former Chrysler Exec, Widow of Auto Workers V.P. Indicted in Massive Ripoff
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With a certain reluctance, Chrysler Corporation accepted the Obama administration’s forcible transfer in 2009 of company stock to the United Auto Workers. The Auburn Hills, Mich.-based automaker now is feeling an aftershock. On July 26, Alphons Iacobelli, the company’s former labor negotiator, and Monica Morgan, the widow of UAW Vice President General Holiefield, were indicted in U.S. District Court for the Eastern District of Michigan for defrauding the UAW-Chrysler National Training Center of at least $1.2 million and likely much more. Prosecutors allege Iacobelli, who left Chrysler in 2015, wrote numerous checks from a center bank account to a shady nonprofit controlled by Holiefield, whose wife used much of the pilfered funds to finance her own enterprises and shopping sprees. Iacobelli and Morgan have pleaded not guilty. Another ex-Chrysler official, Jerome Durden, was charged separately
421 3 minutes read One of the UAW-GM joint training centers which became centers for corruption. Liberation photo: Jerry Goldberg.
The United Auto Workers international union entered a consent decree with the U.S. Department of Justice on Dec. 14, to resolve a fraud and embezzlement complaint brought against the union. The complaint was a product of an investigation conducted over several years by the DOJ, which resulted in criminal charges being brought against former UAW presidents Gary Jones and Dennis Williams; UAW vice presidents Joe Ashton, Alphonse Iacobelli, General Holiefield and Norwood Jewell; and other UAW leaders and staff.
All of the indicted individuals have pled guilty to the charges of corruption brought against them. The total amount embezzled or fraudulently obtained by these union officials approximates $20 million.