UAW Boss Pleads Guilty, Another Charged in Criminal Schemes

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 ➡

Feds Raid UAW Presidents’ Homes, Conference Center; Charge Ex-Union Official

A few weeks ago, U.S. Attorney for Eastern Michigan Matthew Schneider said after the sentencing of a United Auto Workers official, “We’re not done.” He wasn’t kidding. This Wednesday, FBI and IRS agents in four states raided the homes of UAW President Gary Jones (in photo) and former UAW President Dennis Williams, plus the union’s rural Michigan conference retreat/training center and a couple of other sites in search of evidence of corruption. The actions follow the convictions of several UAW and Chrysler officials for their roles in a bribery and embezzlement scheme, and charges announced this August 14 against now-retired union senior official Michael Grimes for receiving the bulk of nearly $2 million in vendor kickbacks. He pleaded not guilty to wire fraud and money laundering on Wednesday.

Union Corruption Update has covered the United Auto Workers-Fiat Chrysler scandal since it broke wide open in July 2017. The focus … Read More ➡

Corporate America Gets Behind Deceptively Named ‘Equality Act’

Rep. Vicki Hartzler

Much of corporate America is once again banding together to attack the social construct of the nation and many of its liberties, all in the name of conferring special rights and privileges upon individuals who don’t accept or acknowledge the gender they were born with.

The occasion this time was to get behind the “Equality Act,” which the Democrat-controlled U.S. House recently passed. The misnamed legislation purports to enact law that prohibits “anti-Lesbian/Gay/Bisexual/Transgender/Queer (LGBTQ) discrimination,” but in practice would put the kibosh on almost all other rights and freedoms Americans possess –including speech, association, privacy, and property rights. Most of what the law would do is bastardize the Civil Rights Act of 1964 by adding “sexual orientation” and “gender identity” to “race, color, religion, sex, or national origin” discrimination protections.

The “Equality Act” would produce draconian outcomes, including (list compiled by staff of Rep. Vicki … Read More ➡

Trump Should Make GM Repay Bailout Costs

In response to General Motors’ intention to close American assembly plants and effectively move manufacturing offshore, President Trump should seek repayment of costs associated with the auto bailout. The direct loss to taxpayers when the Treasury sold the last of its GM shares in 2013 was approximately $10 billion.

There is precedent for requiring direct bailout costs to be paid back. In January 2010, President Obama proposed a new fee on the banks that took TARP funds, even though TARP funds were already in the process of being paid back, and with interest. Obama said, “We want out money back. We want our money back, and we are going to get it.”

In 2013, the National Legal and Policy Center asked then-GM CEO Dan Akerson to repay the $10 billion, prompting his widely publicized refusal during a speech at the National Press Club.

The rationale for the bailout was to … Read More ➡