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 Holifield, and Holifield’s girlfriend and … Read More ➡
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 ➡
In the overall scheme of things, Virdell King was a minor figure. But the evidence of her guilt was compelling all the same. On August 29, Ms. King, a former contract negotiator for the United Auto Workers, pleaded guilty in U.S. District Court for the Eastern District of Michigan to one count of conspiracy related to her diverting tens of thousands of dollars from the UAW-Chrysler National Training Center to her own use and the use of others. She had been charged on August 11. The two principals in the case, Monica Morgan, widow of late UAW Vice President General Holiefield, and Alphons Iaocbelli, a former Chrysler vice president and labor negotiator, were indicted in July for their roles in the scam. 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 … Read More ➡