Ex-UAW Official Sentenced for Accepting Bribes in Chrysler Scandal

Virdell King wasn’t the main character in the self-dealing among certain officials of Fiat Chrysler Automobiles (FCA) and the United Auto Workers. But she may be headed for a brief stretch behind bars anyway. On November 13, Ms. King, a former contract negotiator for the UAW, was sentenced in U.S. District Court for the Eastern District of Michigan to two months in prison plus a year of supervised release for her receipt of tens of thousands of dollars from the till of the company’s National Training Center (NTC) in return for a promise to drop certain union demands during collective bargaining a few years ago. She also was ordered to pay a $5,500 fine and a $100 special assessment. The sentencing follows a joint probe by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

Union Corruption Update has provided continuous … Read More ➡

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Two Chrysler Executives, UAW Official Sentenced for Roles in Bribery Conspiracy

The fallout from the Chrysler-United Auto Workers scandal continues. On November 7, two former executives of Fiat Chrysler Automobiles (FCA), Jerome Durden and Michael Brown, along with an ex-UAW official, Keith Mickens, were sentenced in Detroit federal court for their roles in a broad scheme in which representatives of the auto manufacturer bribed union negotiators to avoid raising key issues during contract negotiations a few years ago. They are the third, fourth and fifth defendants to be sentenced in the scandal, estimated at $4.5 million, which also involved embezzlement and income tax evasion. The latest actions, said U.S. Attorney Matthew Schneider, represent “further strides in our effort to root out corruption” at FCA and UAW.

Union Corruption Update has covered this pay-for-play scandal many times since it broke last July. The primary culprits were Chrysler Vice President Al Iacobelli, UAW Vice President General Holiefield, and Holiefield’s girlfriend and … Read More ➡

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Ex-Chrysler Executive Sentenced in UAW Training Fund Scandal

As a key figure in the Chrysler-United Auto Workers training fund scandal, Al Iacobelli expected a stiff sentence. And that’s what he got. On August 27, Iacobelli, former vice president of Fiat Chrysler Automobiles, was sentenced in U.S. District Court for the Eastern District of Michigan to 66 months in prison and 24 months of supervised release for attempting to bribe certain UAW officers with more than $1.5 million in cash and other things of value in 2015 in hopes of persuading them to drop contract demands, and for embezzling funds for his own use. Iacobelli was ordered to pay $853,522 in restitution, a $10,000 fine and a $100 assessment. He had pleaded guilty in January after being indicted last July. The actions follow an investigation by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

Alfons “Al” Iacobelli, now 58, a … Read More ➡

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Widow of UAW Executive Sentenced for Tax Fraud

Monica Morgan seemed to have married well. In the end, she regretted the experience. On July 13, Morgan, widow of the late United Auto Workers Vice President General Holifield, was sentenced in U.S. District Court for the Eastern District of Michigan to 18 months in prison, to be followed by one year of supervised release, for tax fraud in the amount of $190,747 related to a much larger scheme involving executives at Fiat Chrysler Automobiles (FCA) who diverted an estimated $4.5 million from the company’s training center to certain union officials, including Holifield. She also was ordered to pay full restitution plus a $25,000 fine. Ms. Morgan had pleaded guilty in February following her indictment last July. The actions follow a probe by the FBI, the IRS and the Labor Department.

According to court records, Monica Morgan, now 54, a resident of Harrison Township, Mich., operated two Detroit-based companies, Monica … Read More ➡

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UAW Vice President Charged in Chrysler Scandal; Pleads Guilty

For a while, Norwood Jewell managed to avoid prosecution in the Fiat Chrysler-United Auto Workers pay-to-play scandal that so far has produced over a half-dozen convictions. But his run of good luck has ended. Yesterday, April 2, Jewell, a UAW vice president until last year, pleaded guilty in Detroit federal court to illegally accepting tens of thousands of dollars in bribes from Chrysler executives via the employer-funded National Training Center. He had been charged on March 18. His offenses were part of a wide-ranging probe into a years-long pattern of bribery and embezzlement involving an estimated $4.5 million in NTC funds. Jewell is set for sentencing in August. The latest charges loom especially significant given that the UAW’s current contract with Chrysler, General Motors and Ford expires in September.

Union Corruption Update has described this investigation on numerous occasions since the initial indictments came down in July 2017. Certain officials … Read More ➡

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Top Ten Union Corruption Stories of the Year

On one level, 2017 was a very good year. President Trump, a man who works with unions rather than for them, took office in January. He named Marvin Kaplan and William Emanuel (each approved by the Senate) to fill National Labor Relations Board vacancies, and Peter Robb, another ally of individual worker liberty, as NLRB general counsel. This contrasted with former President Obama’s picks, which created a natural 3-2 pro-union board majority. The reconstituted board already has made a difference. Last month, in PCC Structurals Inc., the board raised the bar for “micro-union” organizing, overturning the misguided Specialty Healthcare decision of 2011. At the state level, Kentucky and Missouri early in the year passed Right to Work legislation (each signed by the respective governors) to protect private-sector nonunion workers from having to pay union dues to keep their jobs.

Crucial as such countervailing forces to union power were, unions … Read More ➡

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