On August 27, Larissa Iveson, daughter of a former treasurer of United Auto Workers Local 373, was sentenced in the 12th Judicial District Court of Jackson County, Michigan to two years of probation for theft in an unspecified amount from the Litchfield-based local. She had pleaded guilty in May. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
The fall of Dennis Williams seemed as inevitable as it was anticlimactic. Yesterday, August 27, Williams, who was president of the United Auto Workers during 2014-18, was charged in Detroit federal court with conspiracy to embezzle funds from the 400,000-member union for his own use, including $56,000 for housing and luxury travel. His immediate successor, Gary Jones, had pleaded guilty in June to embezzlement, racketeering and tax fraud related to his diversion of over $1 million in UAW funds. As Williams allegedly conspired with Jones in some of these thefts, he will have a hard time convincing a jury of his innocence. More than a dozen union officials and auto executives thus far have pleaded guilty as part of an ongoing probe of the union by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
On July 15, Douglas Dye, former unit chairman of United Auto Workers Local 12, pleaded guilty in U.S. District Court for the Northern District of Ohio to one count of embezzling $8,443 in funds from the Toledo union and one count of falsifying union financial records to conceal the thefts. The alleged offenses occurred during June 2013-April 2016. Dye had been indicted this January. The actions follow a probe by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡
The Gary Jones era at the United Auto Workers was brief. But if Jones wants a brief prison sentence, he’ll be at the mercy of prosecutors. Two days ago, June 3, Jones, UAW president until last November, pleaded guilty in U.S. District Court for the Eastern District of Michigan to embezzlement, racketeering and tax fraud related to his role in the diversion of between $1 million and $1.5 million in union funds toward personal luxuries such as vacations, golf outings and cigars, and their coverup. He is set for sentencing on October 6. Thus far, more than a dozen union and auto industry officials have been convicted following an ongoing probe by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General. A federal takeover of the 400,000-member UAW remains a possibility.
Union Corruption Update has been following this phase of the probe … 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 ➡
The wages of corruption at the United Auto Workers continue to be paid. On February 18, Michael Grimes, a retired senior official at the Detroit-based union’s General Motors Department, was sentenced in U.S. District Court for the Eastern District of Michigan to 28 months in prison and a year of supervised release for honest services fraud and money laundering conspiracy related to his extraction of roughly $2 million in payoffs from UAW vendors through multiple schemes. He also must pay about $1.5 million restitution plus a $200 assessment. Grimes had pleaded guilty in September after being charged in August. The actions follow a probe by the FBI, the IRS and Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Grimes, now in his mid-60s, a resident of Fort Myers, Fla., had served as a $150,000-a-year administrative assistant to United Auto Workers Vice President Estrada. Apparently, it wasn’t enough. … Read More ➡
The outcome couldn’t have been more inevitable for Vance Pearson. And it couldn’t have been less welcome for the people ranking above him. Last Friday, February 7, Pearson, former regional director for the United Auto Workers and a member of the union’s international board, pleaded guilty in Detroit federal court to conspiracy to embezzle hundreds of thousands of dollars in union funds, enabling him and other UAW officials to live large – or at least larger – for nearly a decade. In so doing, he may have brought prosecutors one step closer to bringing charges against former Auto Workers President Gary Jones and his immediate predecessor, Dennis Williams. The action follows a probe by the FBI, the IRS, and the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.
Lawrence Ackerman isn’t going to spend too much time behind bars, but his business career deservedly is over. On January 15, Ackerman, founder of two fake health insurance brokerages, was sentenced in Trenton, N.J. federal court to six months in prison and six months of home confinement for his role in a $6.6 million fraud scheme. He also was ordered to pay $1 million in restitution to the welfare fund of United Auto Workers Local 2326, now based in South River, N.J. Ackerman had pleaded guilty in December 2018 after being indicted in January 2017. His partner in crime, former union president Sergio Acosta, was sentenced a little over a year ago to three years of home confinement, and ordered to pay $32,000. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration.
Lawrence Ackerman, now 55, a … Read More ➡
Perhaps more than usual, corruption stories in 2019 involved the overlapping worlds of unions and politics. In Chicago, former Teamster boss John T. Coli Sr., whose ability to cut deals with City Hall and the Illinois legislature for years went virtually unchallenged, pleaded guilty in July to shaking down a television studio owner. One of his allies, State Senator Tom Cullerton, was hit with multiple embezzlement charges. In Boston, two city officials were convicted of putting the squeeze on a concert promoter on behalf of a Theatrical Employees local. In Philadelphia, an Electrical Workers business manager and seven other persons, including a city councilman, were indicted in January for embezzlement, wire fraud and bribery; a contractor and a fundraiser subsequently pleaded guilty.
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 ➡