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.
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.
Former union vice president Norwood Jewel has become the highest ranking UAW member to be convicted of corruption charges in a federal investigation that has lasted four years and delivered prison sentences for eight people, including Fiat Chrysler’s former labor negotiator, Alphons Iacobelli. You might recall him from to his extravagant spending habits.
The probe amassed evidence showing UAW officials receiving extravagant gifts, private residences, vacations, parties, and even cash furnished by FCA. Bribes, essentially, to help draw union concessions. Investigators looked into claims that high-ranking UAW members received kickbacks after giving business executives contracts to produce union-branded chachkies (shirts, keychains, frisbees, etc) and concerns that union members’ donations to flower funds intended for funeral services were misappropriated by the leadership.
Ford and General Motors are also under the microscope, with both saying they’re in full cooperation with authorities and cannot comment further.
Norwood Jewell, the former head of the United Auto Workers’ unit attached to Fiat Chrysler Automobiles NV, has been charged by federal prosecutors in Detroit with violating the Labor Management Relations Act. This makes him the highest ranking UAW member to be charged in the union corruption case that appeared to be on pause while investigators reexamined suspects, following a string of convictions in 2018.
Federal investigators are relatively certain that FCA engaged in the widespread bribery of union officials who were able to tap into funds allocated for their National Training Center — a scheme dating back to 2009. According to defamed former FCA vice president Alphons Iacobelli, the goal was to keep union officials “ fat, dumb and happy.” Millions of dollars were believed to have been used to buy the UAW’s cooperation, and Jewell appears to have gotten a slice.
On Monday, former Fiat Chrysler Automobiles labor relations chief Alphons Iacobelli was sentenced to 66 months in federal prison for tax evasion and his key role in the corporate conspiracy to win favorable treatment from the UAW. Apparently, his plea agreement didn’t help him avoid jail time, but it was enough to shave a few years off his sentence.
Iacobelli pleaded guilty to federal charges of conspiring to violate the Labor Management Relations Act and for subscribing a false tax return in January. At the time, he was facing a maximum sentence that included eight years in prison. However, his $835,000 tax-restitution case is yet to be resolved and will be decided upon at a future date. Iacobelli will continue assisting with the investigation in the interim and, likely, beyond.
Remember the multi-million dollar corruption scandal involving UAW officials? Apparently, it was even more corrupt than previously reported. While the UAW-Chrysler National Training Center is suing both Fiat Chrysler and the union members involved, recent developments point to the money scheme being greenlit by former UAW President Dennis Williams.
As part of a plea agreement filed this week, ex-labor official Nancy Adams Johnson told investigators that Williams specifically directed union members to use funds from Detroit’s automakers, funneled through training centers, to pay for union travel, meals, entertainment, and more. If true, the accusation not only implicates the UAW of corruption at the highest level but also the potential involvement of staff from both Ford and General Motors — something the FBI is already looking into.
I believe the official industry term for something like this is a “shit show.”
The UAW-Chrysler National Training Center, which remains in the midst of a multimillion-dollar federal corruption scandal, is suing Fiat Chrysler Automobiles officials and a union leader’s widow for over $4.4 million in damages. If you’ll recall three FCA employees filed a federal lawsuit against the automaker and the UAW seeking hundreds of millions of dollars in damages over allegations that union officials colluded with company executives to influence collective bargaining earlier this year.
Now it’s time for the National Training Center to get a piece of the action. The lawsuit, filed Friday in Oakland County Circuit Court, targets former FCA labor negotiator Alphons Iacobelli; Monica Morgan-Holiefield, the widow of former UAW Vice President General Holiefield; and ex-FCA financial analyst Jerome Durden. Money was believed to be funneled through the training facility by a policy created by company officials to bribe UAW leaders into giving the automaker favorable treatment during collective bargaining.
The last of four people initially charged in the UAW-Fiat Chrysler corruption scandal pleaded guilty on Tuesday to one of five charges against her. That makes the entire quartet culpable, at least to some degree, to the financial misconduct that occured between the automaker and workers’ union.
However, the case is far from closed. While Monica Morgan, the widow of former UAW vice president General Holiefield, copped to one count of subscribing a false tax return, her plea bargain ignores the other charges against her. The prosecution’s leniency may indicate a hope that she might assist with the ongoing union corruption probe, even though the deal doesn’t require her to cooperate with investigators. Of course, the prosecution already has former FCA labor relations chief Alphons Iacobelli for that task
The multimillion-dollar corruption scandal involving the United Automobile Workers and Fiat Chrysler Automobiles is starting to cross the line from hubbub to full-on fiasco. Earlier this week, three FCA employees filed a federal lawsuit against the automaker and the UAW seeking hundreds of millions of dollars in damages over allegations that union officials colluded with company executives to influence collective bargaining.
Meanwhile, a recently released plea deal with former FCA labor relations head Alphons Iacobelli implicated former UAW Vice President Norwood Jewell — the man tasked with overseeing the most recent round of contract negotiations with FCA. Iacobelli claims he and other FCA employees transferred hundreds of thousands of dollars in illegal payments to tax-exempt organizations controlled by UAW officials, including Jewell’s Making Our Children Smile Foundation.
Former Fiat Chrysler labor relations chief Alphons Iacobelli pleaded guilty to two of seven charges relating to his role in a plan to divert more than $4.5 million in training center funds to union and company officials on Monday. As part of a plea deal with federal authorities, Iacobelli provided information regarding confidential retirement offers and a former union vice president being groomed to support company initiatives.
In an admission that he and other FCA employees paid various senior UAW officials over $1.5 million in an effort to “obtain benefits, concessions, and advantages for FCA in the negotiation, implementation, and administration,” Iacobelli is now helping map the deepening mire that is the FCA-UAW training center scandal.
The United Auto Workers’ executive board has selected Terry Dittes, current regional director on the East Coast, to become the union’s newest vice president. Dittes is tasked with overseeing the UAW’s Fiat Chrysler department, which is currently involved in an ugly federal corruption probe involving millions of dollars from a joint training center allegedly embezzled by both union and company officials.
Replacing Norwood Jewell, whose retirement became effective upon the close of 2017, Dittes is stepping in roughy six months before his first four-year term was supposed to end. While Jewell has not been formally charged with corruption, his supervisory role during the FCA-UAW scandal likely forced the early retirement.
General Motors has decided to cut ties with Alphons Iacobelli, the former Fiat Chrysler Automobiles labor relations chief accused of embezzling funds earmarked for worker training. That money is believed to have gone into extensive home renovations, the installation of a pool, personal credit card expenses, the leasing of a private jet, a $350,000 Ferrari 458 Spider, and two Mont Blanc pens worth $37,500 each.
While GM suspended Iacobelli in July (after federal officials charged him for his alleged role in a multi-million dollar criminal conspiracy during his time at FCA), it only recently confirmed his departure from the company.
Apparently, Fiat Chrysler Automobiles CEO Sergio Marchionne had an extended chat with authorities at the U.S. Attorney’s Office in downtown Detroit one year before the $4.5 million corruption scandal involving the automaker’s training center was made public.
Marchionne and his lawyer participated in a private meeting in July 2016, discussing the alleged corruption between FCA executives and high-ranking members of the UAW with investigators. One year later, former Fiat Chrysler Vice President Alphons Iacobelli was indicted and accused of funneling kickbacks to UAW officials.
A federal investigation that started with corruption charges against a former Fiat Chrysler labor executive and the wife of a deceased United Auto Workers vice president has expanded to include training centers created by both General Motors and Ford. Investigators issued subpoenas in recent weeks to amass information on the centers, which are jointly operated between the automakers and the UAW.
In the FCA case, company and union officials are alleged to have misappropriated an estimated $4.5 million earmarked for employee training. That money is believed to have gone into personal accounts and used to buy suspiciously extravagant items. The FBI appears to be concerned that similar activities could be happening at Ford and GM-backed training sites.
Automotive conspiracies are all the rage right now. However, my current favorite is the cooperative machinations between Fiat Chrysler employees and UAW representatives to embezzle millions from a joint training fund.
On Tuesday, former FCA financial analyst Jerome Durden entered a guilty plea at a hearing in federal courtroom in Ann Arbor, Michigan. Durden aims to cooperate with prosecutors (in exchange for a reduced sentence) as they build their case against other conspirators — specifically Alfons Iacobelli, FCA’s former head of labor relations, and Monica Morgan, widow of General Holiefield, the UAW’s former head of its Chrysler division.
The pair are alleged to have the siphoned over a million dollars from the FCA-UAW Joint Training Center between 2009 and 2014, blowing the majority of it on home expansions, fancy cars, first-class plane tickets, and extravagant baubles. Meanwhile, Durden was caught failing to file a tax return for the approximately $4,000 he received in 2013. Oh, and for conspiracy to defraud the U.S. government.
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- Dusterdude @El scotto , I'm aware of the history, I have been in the "working world" for close to 40 years with many of them being in automotive. We have to look at situation in the "big picture". Did UAW make concessions in past ? - yes. Do they deserve an increase now ? -yes . Is their pay increase reasonable given their current compensation package ? Not at all ! By the way - are the automotive CEO's overpaid - definitely! (That is the case in many industries, and a separate topic). As the auto industry slowly but surely moves to EV's , the "big 3" will need to be producing top quality competitive vehicles or they will not survive.
- Art_Vandelay “We skipped it because we didn’t think anyone would want to steal these things”-Hyundai
- El scotto Huge lumbering SUV? Check. Unknown name soon to be made popular by Tiktok ilk? Check. Scads of these showing up in school drop-off lines? Check. The only real over/under is if these will have as much cachet as Land Rovers themselves? A bespoken item had to be new at one time. Bonus "accepted by the right kind of people" points if EBFlex or Tassos disapproves.
- El scotto No, "brothers and sisters" are the core strength of the union. So you'll take less money and less benefits because "my company really needs helped out"? The UAW already did that with two-tier employees and concessions on their last contract.The Big 3 have never, ever locked out the UAW. The Big 3 have agreed to every collective bargaining agreement since WWII. Neither side will change.
- El scotto Never mind that that F-1 is a bigger circus than EBFlex and Tassos shopping together for their new BDSM outfits and personal lubricants. Also, the F1 rumor mill churns more than EBFlex's mind choosing a new Sharpie to make his next "Free Candy" sign for his white Ram work van. GM will spend a year or two learning how things work in F1. By the third or fourth year GM will have a competitive "F-1 LS" engine. After they win a race or two Ferrari will protest to highest F-1 authorities. Something not mentioned: Will GM get tens of millions of dollars from F-1? Ferrari gets 30 million a year as a participation trophy.