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Wednesday, 18 August 2021 17:18

FCA to Pay $30M Fine for Illegal Payments to UAW Officials

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...that union members could have confidence in their union leaders. FCA violated these principles through corruption. By lavishing millions of dollars in gifts and cash upon UAW leaders, the FCA sought to improve its relationship with UAW leaders, and FCA thereby harmed the hardworking men and women of the UAW.

 

"A compliance monitor and a significant fine are important steps towards ending this type of systemic corruption and deterring future corporate malfeasance.”

 

Thus far, as part of this investigation of illegal payments by FCA to UAW officials, as well as fraud and embezzlement by other UAW officers, 14 individuals have been convicted of federal crimes, including three former FCA executives:

 

  • Former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison)
  • Former FCA Financial Analyst Jerome Durden (15 months in prison)
  • Former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison)
  • Former UAW presidents Dennis Williams (21 months in prison) and Gary Jones (28 months in prison)
  • Former UAW vice presidents Norwood Jewell (15 months in prison) and Joseph Ashton (30 months in prison)
  • Former UAW Region 5 Director and UAW board member Vance Pearson (12 months in prison)
  • Former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison)
  • Former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Michael Grimes (28 months in prison) and Monica Morgan, widow of Holiefield (18 months in prison). Holiefield died in 2015. 

 

Mohsin commended the outstanding work of the IRS-Criminal Investigations, the U.S. Department of Labor–Office of Labor-Management Standards and Office of Inspector General, and the FBI in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

 

Source: U.S. Attorney's Office Eastern District of Michigan

 

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