DETROIT, MI – Timothy Edmunds, the former Financial Secretary-Treasurer of Local 412 of the United Auto Workers union, pleaded guilty today to embezzling
Detroit FCA US LLC (FCA, a/k/a Fiat Chrysler Automobiles), one of the big three American automobile manufacturers, pleaded guilty to conspiring to violate the Labor Management Relations Act, also known as the Taft-Hartley Act, by making illegal payments to officers of the United Auto Workers union, Acting United States Attorney Saima S. Mohsin announced today.
FCA is the American operating subsidiary of Stellantis, and it is headquartered in Auburn Hills, Michigan.
Today, a representative of FCA appeared in a virtual court hearing before United States District Judge Paul D. Borman and admitted that the company had conspired with other entities and individuals to violate the Taft-Hartley Act by making more than $3.5 million in illegal payments to officers of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) during the period 2009 through 2016. During the conspiracy, executives of FCA, including Alphons Iacobelli, Jerome Du
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Settlement Reached with United Auto Workers Union to Reform Union, End Corruption & Fraud
The proposed settlement fully and finally resolves the criminal and civil investigation of the UAW as an entity. The UAW also agrees to resolve a tax investigation by making a payment of $1.5 million to the Internal Revenue Service in connection with administrative fees that the union received from the three joint training centers that were operated with the three car manufacturers.
In addition, the UAW has already paid back over $15 million to the training centers for improper chargebacks that the union received from two of the training centers.
UAW agrees to government monitoring, settles corruption suit
Consent decree with Justice Department calls for an independent monitor to investigate future corruption, discipline union officials.
Detroit, Michigan – The United Auto Workers (UAW) union has agreed to a consent decree with the U.S. Attorney’s Office in Detroit, settling a long-running corruption investigation that led to convictions or guilty pleas from several Fiat Chrysler Automobiles (FCA) executives and union officials including
The U.S. Department of Justice filed
anti-corruption and anti-fraud civil lawsuits against the UAW and immediately agreed to a consent order, effectively settling those cases with the union.
Credit UAW
Five years after the FBI began investigating corruption in the leadership ranks of the United Auto Workers union, the U.S. Justice Department and the union have agreed to a consent order that places the union under the oversight of an independent monitor.
The investigation began with charges against a former Fiat Chrysler official, and spread from there, ending with two former UAW presidents, Gary Jones and Dennis Williams, pleading guilty to embezzlement, among other crimes.
The monitor will be in place for six years, at least, unless he or she determines the oversight is no longer necessary sooner than that. The monitor will oversee most functions of the union except its contract negotiations with employers such as Detroit automakers; that is, unless there is evidence of corruption or fraud in those negotiations.