On January 27, Edward “Nick” Robinson, former president of the Midwest Community Action Program (CAP) Council of the United Auto Workers, was sentenced in U.S. District Court for the Eastern District of Michigan to one year in prison and one year of supervised release for his role in a conspiracy to embezzle about $1.5 million in union funds and avoid federal taxes based on that income. He also was ordered to pay a combined $342,000 to the UAW and the IRS. Robinson, along with several other union officials including now-convicted former International Presidents Gary Jones and Dennis Williams, submitted vouchers for nonexistent expenses and wrote fraudulent checks to divert funds from the council. He had pleaded in guilty in March 2020. 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.… Read More ➡
If a government takeover of the United Auto Workers looked like a possibility a few days ago, that possibility just became more real. Yesterday, March 5, Gary Jones (in photo), former president of the United Auto Workers, was charged in an information in Detroit federal court for his role in the embezzlement of well over $1 million in funds from the union, enabling himself and other union leaders to splurge on indulgences unrelated to UAW business. Forced from his post in November, Jones is the biggest catch yet in a union-auto industry probe that so far has netted over a dozen guilty pleas. As this is an information, not an indictment, a plea deal is virtually certain. The actions follow a 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 covered this case since it … Read More ➡
It’s official: The United Auto Workers has been declared a racket. On January 6, recently departed UAW President Gary Jones (in photo) and his immediate predecessor, Dennis Williams, were cited, albeit under assumed names, in Detroit federal court as participants in a racketeering enterprise. The designation was part of a new charge against Vance Pearson, former director of a major regional affiliate and a member of the union’s international executive board, of embezzlement conspiracy. U.S. Attorney Matthew Schneider had been hinting at such action these last few months. Jones had resigned his post under pressure in November. The actions follow a joint probe by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Union Corruption Update more than once has covered this scandal, the details of which provide a hard look into how the Detroit-based union, with around 400,000 active members, … Read More ➡
Gary Jones’ tenure as head of the United Auto Workers was brief. But he and the union are preparing for what may be a long ordeal. On November 20, Jones, beset by a slew of federal corruption charges involving extensive illegal payoffs exacted from vendors by ex-officials of the UAW’s General Motors Department, abruptly resigned as president. Nine days later, he ended his union membership. The actions occurred shortly after the UAW executive board filed paperwork to expel him and a regional director, Vance Pearson. While Jones has not been accused of anything (yet), his home was one of several sites raided in August by federal agents. In a related event, GM last month filed a racketeering suit against Fiat Chrysler on grounds that the latter misused the collective bargaining process to facilitate a merger.
If these were normal times, the 400,000-member, Detroit-based United Auto Workers might be … Read More ➡