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UAW Offers Direct Meeting With FBI Amid Corruption Scandal

United Auto Workers President Rory Gamble has offered a direct meeting with federal investigators who are currently in the midst of an investigation of union corruption. This offer comes in response to outspoken criticism from federal prosecutors. The UAW is trying to avoid the government from coming in and taking control of the Union itself due to corruption. The UAW has hired a New York law firm to attempt to police themselves and try to root out whatever corruption exists within the union. The statement from the union described the law firm’s function as “technical assistance with our ethics and compliance reform efforts.”

Original Case Details

The FBI has been investigating possible ties between the UAW president and one of the union’s vendors, with bribery being the main implication. The UAW looks as if they are now intending to cooperate in order to avoid a complete government takeover. The UAW has stated its intention to cooperate by producing any documents and records that investigators ask for and bringing in any witnesses the government wants to speak to. A possible measure that the UAW is proposing to help root out any existing corruption is to allow union members to directly elect union leaders. Multiple UAW and Fiat Chrysler officials have been indicted so far in this wide-reaching probe. A number of these officials who have been charged have agreed to cooperate with the federal government.

Federal Charges Involved

• Former UAW President Gary Jones has been charged with conspiracy to embezzle UAW funds and conspiracy to defraud the United States. It is expected that Jones is going to plead guilty and cooperate.
• Retired UAW Vice President Joe Ashton was charged with conspiracy to commit fraud and conspiracy to commit money laundering. He has since pled guilty to one count of conspiracy to commit wire fraud and conspiracy to commit money laundering.
• Former UAW Vice President Norwood Jewell has pled guilty to federal labor laws and has been sentenced to 15 months in federal prison.
• Former Fiat Chrysler Vice President Alphons Iacobelli has pled guilty to one count of filing a false tax return and conspiracy to violate the Labor Management Relations Act. He has been sentenced to five and a half years in federal prison.
• Monica Morgan-Holiefield, widow to late Vice President of the UAW has pled guilty to a federal tax crime and sentenced to 18 months in federal prison
• Former Fiat Chrysler financial analyst Jerome Durden has been sentenced to 15 months in federal prison for filing false tax returns and helping steer nearly $400,000 to a fake charity.
• Other, lower level associates of the UAW and Fiat Chrysler have also either pled guilty or committed to cooperate with the federal government during this probe.

What Happens Now?

This case is still ongoing, with an organization as big as the UAW, more charges could easily be in the future. The UAW is one of the most prominent labor unions in the United States today. It was founded in 1935 here in Detroit and has almost 400,000 active members. It is estimated that the UAW has over 600,000 retired members within its ranks. The UAW has over 1,000 contracts with over 1,500 different employers. The main thing that the UAW is now trying to avoid is a complete government takeover. This effort by the current UAW may help them avoid this takeover, but it also may simply be too late.

Any Further Questions?

If you have any additional questions relating to this case or anything else related to public corruption, then we are happy to offer a FREE consultation. If you or someone you love is facing a criminal charge or is currently being investigated for a possible criminal charge, then it is important to seek the advice and counsel of an attorney immediately. At Grabel & Associates, we have over 100 years of combined experience in successfully representing clients in both federal and state court respectively. We are a criminal defense firm, it’s all we do. We are available by phone on our 24/7 defense line at 1-800-342-7896. You can contact us online or come visit us at one of our three statewide offices. We can also come to you.

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