GM Files State Lawsuits Against FCA Over Racketeering Claims

General Motors refuses to let the dismissal of its federal racketeering case against Fiat Chrysler Automobiles stand in the way of getting what it believes is true justice. On Monday, the automaker filed its latest claim with Wayne County Circuit Court in Michigan. These are separate from the New Jersey lawsuit it has targeting former board member and ex-UAW vice president Joe Ashton, who GM has accused of being a hired mole. However, Ashton was named in the trio of new court filings, along with Alphons Iacobelli — the man who pled guilty to embezzling union funds and kicked off a gigantic federal corruption investigation into the UAW.

The automaker also named some of the banks it claimed were involved in the union scandal and continues to allege that FCA “provided millions of dollars to co-conspirators via numerous undisclosed offshore bank accounts and utilized such accounts to purchase the support and silence of numerous high-level UAW officers and FCA executives.” Fiat Chrysler’s assumed goal? Forcing General Motors into a merger or destroy it if the merger failed by negotiating favorable terms with the union and encouraging leadership into adopting positions that would harm GM.

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Judge Denies GM Bid to Reinstate Racketeering Case Against FCA

General Motors’ attempt to revive its RICO lawsuit has failed after a federal court claimed the new evidence presented was too speculative to start the legal process back up. U.S. District Judge Paul Borman dismissed the case with prejudice in July, calling it a “waste of time,” but GM returned with new evidence it hoped might turn the tables.

Filed in November, the General’s case against FCA claims its rival finagled a labor advantage by bribing UAW officials during key contract negotiations. With a federal corruption case still probing the union, and with Fiat Chrysler’s known involvement, it seems like GM might have had a case here. But Judge Borman didn’t think there was sufficient evidence before, and hasn’t changed his mind since.

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Fiat Chrysler to Judge: GM's Being Paranoid, Please Ignore

General Motors desperately wants to reopen a case dismissed last month by a federal judge, but Fiat Chrysler’s having none of it.

The racketeering lawsuit filed by GM against its crosstown rival alleged that FCA secured unfair labor advantages over GM via bribed UAW officials, with the automaker claiming last week that it possesses new evidence capable of convicting its automotive foe. A number of offshore bank accounts fueled the bribery effort, GM claims, with the automaker’s court filing accusing former UAW Vice President (and ex-GM board member) Joe Ashton of being a paid mole.

Gripping stuff, but FCA says it’s seen this movie before — and it’s a stinker.

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GM Asks Court to Reinstate RICO Suit Against FCA, Claims New Evidence

Last November, General Motors filed a racketeering suit against Fiat Chrysler Automobiles, claiming its rival was involved in a prolonged bribery scheme with UAW leaders to gain an unfair labor-cost advantage. Despite FCA already having staff participating in a vast union corruption scandal, U.S. District Judge Paul Borman dismissed the GM case in July after claiming there was nothing to it beyond petty corporate squabbling.

Now GM is back, claiming it has new evidence against FCA that’s going to blow the lid off everything.

On Monday, the General asked the court to reinstate the racketeering lawsuit. It now claims that there’s evidence of foreign bank accounts used in the alleged bribery scandal. We say “alleged” despite the FBI’s continued investigation into the UAW (separate from the GM-FCA suit) showing criminal levels of corruption. The company even suggested that Alphons Iacobelli ( who is already serving time for bribing union officials) channeled sensitive information back to FCA after being hired by GM. The claimed plot then has Fiat Chrysler paying the Iacobelli family millions of dollars via overseas accounts.

“These new facts warrant amending the court’s prior judgment, so we are respectfully asking the court to reinstate the case,” GM said.

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Ex-UAW Official Sentenced in Union Bribery Scandal

Michael Grimes, former executive assistant and board member of the UAW-GM Center for Human Resources, was sentenced to 28 months in prison Wednesday after being convicted of money laundering and wire fraud.

While the sentence could have been longer, prosecutors reportedly asked for leniency due to Grimes’ cooperation with the broader investigation. Initially pushing for about four years of jail time, they eventually toned the recommendation down to just two. U.S. District Judge Bernard A. Friedman acknowledged the defendant’s usefulness in helping federal authorities sniff out more union and industry corruption, then decided to stick him with an extra couple of months to send a message.

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Bribery Overload at The 24 Hours of LeMons

Though I’ve been a Judge at The 24 Hours of LeMons for over 5 years now, it wasn’t until a brush with Stevens-Johnson Syndrome that I decided to amp up my Mad Bribery Skills.

Not just with cash, that’s horribly un-entertaining unless it involves getting busted F1 style. So like any good criminal, let me boast about my bounty of ill-gotten booty in a tale that’s sure to please.

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Weird Diecast Toy Car Bribes Continue To Flood The LeMons Supreme Court

As Chief Justice of the 24 Hours of LeMons Supreme Court, I receive many gifts from racers wishing to establish a foundation of mutual respect and understanding during the period in which I inspect the cars for possible cheating. The traditional judicial bribe tends to be a jug of top-shelf booze, but my drinking hasn’t kept pace with the intake of bottles of Stranahan’s bourbon and Zaya rum, and so I’ve been encouraging teams to bring weird diecast toy cars to lubricate the gears of justice. After the last round of LeMons Supreme Court diecast toy car bribes, I thought it would be hard to top the Leyland P76 and Moskvich 402, but the racers at the ’11 Southern Discomfort and the ’11 Gator-O-Rama have done so with the current crop of diecasts.

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Letter From The Widow Of A Deceased Nigerian Ruler In Re Daimler AG

Salutations, my good friends of the United States of America!

I am Mrs. Cammu Cori-Ganacha, the third wife of the former Nigeria head of State who died on the 8th of June, 1998. Under the strictest of confidence, I bring sad news that Automotive World are reporting that our good friends of Stuttgart, Daimler AG, are under investigation from the oppressive regime that is Nigeria’s Economic and Financial Crimes Commission for alleged bribes of 15 million of your U.S dollars. The alleged crimes of this upstanding and fine German company go back the 1970’s when they set up a joint with a local vehicle assembler called Anammco.

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What??? Egypt Probes Daimler For Bribery

The other day I heard a saying which I think is rather apt for this article:

“You can shear a sheep many times, but you can only skin it once”. Except in this article the “shear” is “fleecing” and the sheep is “Daimler.” Bah, bah, bah. Firstly, the U.S Government did a little shakedown of Daimler to the tune of $185 million. When that succeeded, our friends in Russia decided to check this gold mine for any left over deposits. Word spread of them thar gold in Sindelfingen. Incoming golddiggers! Forexyard (via Reuters) reports that Egyptian authorities are going to investigate the matter in relation to bribery in Egypt.

Yes, in Egypt.

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Daimler Probed By Russia After DOJ Shakedown

Have you ever done serious business in Russia? Nyet? If you want to keep your conscience pure, don’t. It’s a “gotta pay to play” country. If you don’t make regular payments, the best that can happen to you is that you are out of business. In more serious cases, you pay with your life – a common currency in that country.

Behind that backdrop, it’s humorous to read that “the Russian Prosecutor-General’s Office has asked the United States to provide information about corruption that reportedly accompanied the sale of Mercedes limousines by Russian law enforcement agencies, Prosecutor-General Yuri Chaika told the Federation Council.” That according to Russia’s news agency ITAR-TASS. (It’s “sale to law enforcement agencies.” Someone with lesser English may have made a payment. See video.)

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Judge Gives O.K. To Daimler Settlement

U.S. District Judge Richard Leon approved a $185m settlement between Daimler, the Department of Justice (DOJ,) and the Securities and Exchange Commission (SEC). The Feds had alleged that Daimler violated the U.S. Foreign Corrupt Practices Act (FCPA) by drowning foreign government officials in money and gifts until they relented and ordered Daimler products. According to Reuters, Daimler’s German and Russian units each agreed to plead guilty to two minor counts of violating U.S. anti-bribery laws. Its China subsidiary will be subject to the two-year deferred prosecution agreement as well. That said, the bad boys from Sindelfingen may go forth and sin no more. Except for one niggling detail …

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How To Make Hundreds Of Millions Without Even Trying

Last week, we shared with you an ingenious method of the U.S. Department of Justice to contribute to the deficit-afflicted holdings of the U.S. Treasury. The method involves shaking down foreign companies who grease the wheels to get deals in even more foreign lands. Or who even think about greasing the wheels. Caught between European laws and U.S. laws, these companies pay and promise to sin no more.

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