When it comes to self-dealing, the United Auto Workers’ General Motors Department might rival its Chrysler Department. On September 4, Michael Grimes (in photo), a now-retired senior UAW official, pleaded guilty in U.S. District Court for the Eastern District of Michigan to honest services fraud and money laundering in connection with his receipt of over $1.5 million in illegal payoffs from UAW vendors over a dozen years. Eight days later, on September 12, a prominent union regional official, Vance Pearson, was arrested and charged with fraud, embezzlement and money laundering connected to separate schemes. The actions follow a joint investigation 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 described the case of Michael Grimes a few weeks ago. Grimes, now 65 and living in Fort Myers, Fla., had served as a $150,000-a-year administrative assistant to United … Read More ➡