Ex-UAW Vice President Joe Ashton Sentenced for Taking Bribes, Kickbacks

The unfinished business of the United Auto Workers scandal is nearing its end. A week ago, on November 17, Joe Ashton, former vice president of the UAW’s General Motors Department, was sentenced in U.S. District Court for the Eastern District of Michigan to 30 months in prison for receiving over $250,000 in illegal bribes and kickbacks from a union vendor, and for conspiring with two fellow union officials to launder the proceeds. He had pleaded guilty last December. Several ranking UAW officials, including its two previous presidents, already have pleaded guilty to embezzlement, racketeering and tax fraud charges. The actions follow a joint investigation by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

Ashton, now 72, a resident of Ocean View, N.J., is a retired UAW vice president. He now is also one 15 defendants convicted of financial crimes related to … Read More ➡

Ohio UAW Local Official Sentenced for Embezzlement

On November 5, Douglas Dye, former unit chairman of United Auto Workers Local 12, was sentenced in U.S. District Court for the Northern District of Ohio to one year of probation for embezzling funds from the Toledo union and another year of probation for falsifying union records to conceal the thefts. He also was ordered to pay a $2,500 fine and a $125 special assessment on top of the $8,490 in restitution he already paid. Dye had pleaded guilty in July to embezzling $8,443 in union assets and concealment after being indicted in January. The actions follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.… Read More ➡

Former UAW Treasurer in Michigan Sentenced for Theft

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 ➡

Ex-UAW President Dennis Williams Charged with Embezzlement

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.

Dennis Williams, now 67, was elected presidentRead More ➡

UAW Official in Ohio Pleads to Embezzlement and Concealment

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 ➡

Ex-UAW Chieftain Gary Jones Pleads Guilty to Corruption, Tax Evasion

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 ➡

Former UAW President Gary Jones Charged with $1M+ Embezzlement

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 ➡

Ex-UAW Official Sentenced for Collecting $2M in Shakedowns

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 ➡

UAW’s Pearson Pleads Guilty to Embezzlement

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.

As Union Corruption Update indicated a couple of weeks ago, Vance Pearson, now 58, a resident of … Read More ➡

Insurance Executive in New Jersey Sentenced for Role in $6.6M Scam

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 ➡