Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Former UAW official charged in expanding corruption probe

Published 03/21/2018, 01:14 PM
Updated 03/21/2018, 01:20 PM
© Reuters.  Former UAW official charged in expanding corruption probe

By Nick Carey

DETROIT (Reuters) - A former United Auto Workers official who served on the union's committee that negotiated a 2015 labor agreement with Fiat Chrysler Automobiles NV (FCA) (MI:FCHA) was charged on Wednesday with accepting illegal payments from the automaker.

The charges are part of an expanding U.S. Justice Department investigation into alleged misspending at UAW union training centers.

The U.S. Attorney's Office for the Eastern District of Michigan said charges had been filed against Nancy Johnson, 57, who served as the second most senior UAW official responsible for the union's FCA department from 2014 to 2016.

Johnson was charged with participating in a conspiracy in which she and other union officials "accepted a stream of concealed payments and things of value from FCA executives in the months leading up to the 2015 collective bargaining negotiations," the attorney's office said in a statement.

According to court documents, Johnson illegally accepted tens of thousands of dollars worth of designer clothing, golf resort fees, luxury accommodations and first-class travel.

Johnson could not be reached for comment and a lawyer for Johnson could not immediately be identified.

Alphons Iacobelli, 58, a former vice president of employee relations at Fiat Chrysler, pleaded guilty in January to making at least $1.5 million in improper payments to UAW officials.

Iacobelli's plea agreement states that he paid out FCA funds in cash and items of value to UAW officials and employees to obtain concessions for FCA in negotiating and implementing collective bargaining agreements between the automaker and the union, and to influence union decisions on pension funds.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Last month, the widow of former UAW Vice President General Holiefield, the union official at the center of the U.S. probe, pleaded guilty to tax fraud in relation to the case. Holiefield died in March 2015.

The UAW did not immediately respond to a request for comment on Wednesday. But in a letter to rank-and-file members in January, UAW President Dennis Williams said claims that payments to Holiefield had compromised contract talks or impacted union funds were baseless.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.