Gary Jones, the former President of the international United Auto Workers union, was charged today in a Criminal Information with conspiring with other UAW officials to embezzle over $1 million of UAW dues money, to furthering racketeering activity, and to evading taxes announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Gary Jones, 62, of Canton, Michigan, is charged with conspiring to embezzle UAW dues money and conspiring to use a facility of interstate commerce to aid racketeering crimes between 2010 and September 2019.  He is also charged with conspiring to defraud the United States by evading the payment of taxes on embezzled funds and causing the UAW to file false tax returns during the same period of time. 

Between June 2018 and November 2019, Jones served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”).  The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.  Prior to serving as UAW President, Jones was the Director of UAW Region 5 and a member of the UAW’s International Executive Board from October 2012 through June 2018.  The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.        

The Criminal Information charges that Jones conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Jones and other senior UAW officials.  Jones and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri.  Between 2010 and 2018, Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences.  In truth, however, Jones and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

The Information charges that Jones and other senior UAW officials used UAW money to pay for personal expenses, including golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds.  For example, in just one of the years of the conspiracy, Jones is charged with ordering over $13,000 in cigars for the use of high-level UAW officials.    

Besides using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Jones is charged with assisting in a conspiracy to embezzle UAW funds from the UAW’s Midwest CAP.  The UAW Midwest CAP is one of the UAW’s many Community Action Programs.  Jones is charged with accepting over $60,000 in cash from co-conspirator Edward Robinson who cashed over $500,000 in fraudulent UAW Midwest CAP checks and embezzled money from the UAW Labor Employment Training Corporation.       

Besides conspiring with other UAW officials to embezzle UAW funds, Jones is also charged with conspiring with UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Jones and other UAW officials.  The conspirators also caused the UAW to file false tax returns with the IRS. 

Based on each of the two counts of conspiracy, Jones faces a maximum of five years in prison and a fine of up to $250,000.

A Criminal Information is only a charge and is not evidence of guilt. 

Jones is the fourteenth defendant to be charged in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives.  The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths).  In addition, the following UAW officials have pleaded guilty and are awaiting sentencing:  former UAW Vice President Joseph Ashton, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director UAW Board member Vance Pearson, and former UAW Midwest CAP President Edward “Nick” Robinson.           

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The charges today demonstrate our continuing progress towards restoring honest leadership for the over 400,000 men and women of the UAW,” said United States Attorney Matthew Schneider.  “The union’s leaders must be dedicated to serving their members and not serving themselves.” 

“An important mission of the Office of Inspector General is to investigate allegations of labor racketeering and corruption within labor unions. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

"While union corruption is not new, each instance slowly undermines the trust members have in their organization. In order for unions to be effective, their members must trust their leadership to do what is best for the entire union and not just for themselves. In this case, that trust has been broken over and over again," said SAC D'Antuono. "While today represents a significant development in this investigation, it does not represent its end. Our work on this case will continue until we are satisfied that everyone who should answer for these crimes is brought to justice."

“Honest and hardworking UAW members are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," Internal Revenue Service – Criminal Investigation Special Agent in Charge Sarah Kull said. "IRS-CI enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others”. 

 “Today’s information alleges an outrageous abuse of power and misuse of former President Gary Jones’ position of trust to enrich himself and other officers within the UAW at the expense of the UAW’s hardworking members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “This information leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.

Edward “Nick” Robinson, the former President of the United Auto Workers Midwest CAP and the former Director of the UAW Labor and Employment Training Corporation, pleaded guilty today to conspiring with other UAW officials to embezzle over $1 million of UAW dues money and to defraud the United States by evading the payment of taxes announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Edward “Nick” Robinson, 72, of Kirkwood, Missouri, pleaded guilty to conspiring to embezzle UAW dues money between 2010 and September 2019.  Between at least 2010 and September 2019, Robinson served as the President of the UAW’s Midwest CAP of Region 5 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”).  The UAW Midwest CAP is one of the UAW’s Community Action Program Councils which are supported through UAW dues money.  The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.  Robinson also served as the Assistant to the President of the UAW Labor and Employment Training Corporation headquartered in Hazelwood, Missouri.  The UAW-LETC was supposed to provide workforce training and development programs.      

During the plea hearing, Robinson admitted that he conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Robinson and other senior UAW officials.  Robinson and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri.  Between 2010 and 2018, other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences.  In truth, however, Robinson and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

For example, Robinson and other senior UAW officials used UAW money to buy sets of golf clubs, individual clubs, and other golf equipment that cost thousands of dollars.  They spent over $100,000 to purchase golf clothing, shirts, hats, sunglasses, golf balls, jackets, and fashion shorts from various pro shops at golf courses in California and Missouri.  And they spent tens of thousands of dollars in UAW funds at the Indian Canyons golf course in Palm Springs on green fees for golfing outside of the time of the UAW conferences.

As part of the conspiracy, Robinson and his co-conspirators embezzled over $60,000 in UAW funds for the purchase of boxes of cigars, humidors, cigar cutting equipment, and lighters from 2014 to 2018.  The costs of the cigars were hidden within the expenses for the Region 5 conferences.  Pearson caused the UAW to file false reports with the Department of Labor wherein the various embezzlement activity was concealed.

During search warrants executed by federal law enforcement in August 2019 in connection with the investigation, agents recovered dozens of cigars, humidors, and other tobacco-related items in the personal residences of UAW officials.  In addition, agents seized hundreds of high-end bottles of liquor, hundreds of golf shirts, multiple sets of golf clubs, and over thirty thousand dollars in cash.  Agents seized sets of golf clubs from the homes and offices of UAW officials which were paid for with embezzled UAW funds.

Besides using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Robinson also wrote over $500,000 in fraudulent checks from the UAW Midwest CAP account.  Robinson then turned these checks into cash and kept some of the money for himself, shared some with other UAW officials, or spent the money on personal expenses to benefit himself and other high-level UAW officials.     

Besides conspiring with other UAW officials to embezzle UAW funds, Robinson also conspired with other UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Robinson and other UAW officials.

Based on each of his embezzlement and tax fraud conspiracy convictions, Robinson faces a maximum of five years in prison and a fine of up to $250,000.

As part of his guilty plea, Robinson agreed to pay $42,000 in restitution to the Internal Revenue Service owed on his own personal taxes.  In addition, the court will determine additional restitution at the time of sentencing based on the embezzlement of UAW funds.           

Robinson is the thirteenth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself.  The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths).  In addition, the following UAW officials have pleaded guilty and are awaiting sentencing:  former UAW Vice President Joseph Ashton and former senior UAW official Jeffrey “Paycheck” Pietrzyk.           

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“Our office will never tolerate the abuse of union funds for the benefit of corrupt union officials,” said United States Attorney Matthew Schneider.  “We will continue our work until the men and women of the UAW have confidence that their union leadership is serving and advancing their interests — instead of the personal interests of union bosses.”

“Robinson conspired with senior UAW officials to embezzle more than $1,000,000 in order to personally enrich himself at the expense of the hard-working men and women of the UAW.  We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“It is hard to discuss the criminal behavior of these UAW executives without acknowledging the damage it has done to the faith union members have in their leadership,” said Steven M. D’Antuono, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI stands committed to these types of investigations in order to restore the union to its core purpose of negotiating for and protecting the rights of its hard-working members who put their trust in their union officials.”

“Robinson not only defrauded his union members for ten years, he also defrauded the American people by causing false tax returns to be filed and not paying his fair share.” stated Special Agent in Charge, Sarah Kull of the Internal Revenue Service – Criminal Investigation. “Today’s guilty plea shows a tremendous lack of ethical character and greed.”  

“Instead of serving the interests of his fellow UAW members, Edward Robinson executed elaborate schemes to embezzle hundreds of thousands of dollars from the UAW, including dues paid by hard working union members, to fund an extravagant lifestyle for him and other high-ranking UAW officers,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS will continue to work with its fellow law enforcement partners and the U.S. Attorney’s Office to remove corrupt union officers and other officials within the UAW International Union.”

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.

Michael Grimes, a former high-level official in the UAW’s General Motors Department, was sentenced to 28 months in federal prison today for conspiring with other UAW officials to engage in honest services fraud by taking over $1.5 million in bribes and kickbacks from UAW vendors and contractors and for conspiring to launder the proceeds of the scheme, announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

In September, Michael Grimes, 66, of Ft. Myers, Florida, who is a native of Grand Blanc, Michigan, pleaded guilty to conspiring with two other high-level UAW officials—Joseph Ashton and Jeffrey Pietrzyk—to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources (CHR). Ashton, 71, of Ocean View, New Jersey, and Pietrzyk, 78, of Grand Island, New York, have since pleaded guilty. This “pay to play” scheme which began in 2006, and lasted over twelve years, reaped Grimes over $1.5 million which he spent on property, houses, cosmetic surgery for a relative, and a host of other items which never benefited the UAW membership.

The CHR is supposed to be a center for training UAW workers employed by GM. But Grimes, Pietrzyk, and Ahston, each of whom served on the Executive Board for the CHR, abused the power they had to approve contracts with vendors for watches, jackets, backpacks, and UAW stores at GM manufacturing facilities, and demanded kickbacks for their own financial gain. For example, in 2011, Grimes, Ashton and Pietrzyk demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.”  Grimes collected the $300,000 kickback and delivered the proceeds to Ashton and Pietrzyk. Grimes demanded an additional kickback of $525,000 from the same vendor for the same jacket contract. 

In another scheme to defraud, Grimes, Ashton and Pietrzyk demanded kickbacks on a $3.9 million contract for the CHR to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture.” The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM CHR received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Grimes also conspired to launder the proceeds of the kickback scheme by using a series of complicated schemes, including funneling the money through a sham consulting company run by a relative, to conceal and disguise the bribes and kickbacks. 

As part of this investigation, the government has forfeited money and real property from Grimes totaling over $1.5 million.  

Grimes is one of many to plead guilty and be sentenced in connection with the ongoing criminal investigation into corruption within the UAW. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Most recently, former UAW Region 5 Director Vance Pearson pleaded guilty last week.      

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“It is imperative that the UAW leadership continues to be held accountable to their fiduciary duties and responsibilities,” said United States Attorney Matthew Schneider. “Today’s sentence represents another step forward in our efforts to target and prosecute corrupt UAW leaders who place their drive for personal enrichment ahead of the mission of the union.” 

“Michael Grimes engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $1.5 million in bribes and kickbacks from vendors. Grimes' criminal actions were an effort to enrich himself at the expense of dues-paying UAW members.  We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“The trail of money has led to the truth, an ugly truth of bribery, kickbacks and sham corporations, ultimately netting Michael Grimes $1.5 million dollars at the expense of UAW workers.  Today’s sentence brings the UAW one step closer to removing the greedy and corrupt leadership that once embodied UAW officials across the country,” said Sarah Kull, Special Agent in Charge of Detroit’s IRS Criminal Investigation.

“Michael Grimes failed his fiduciary duties as a UAW official and betrayed the trust of the UAW membership when he used his union position to demand bribes and kickbacks from vendors in excess of $1.5 million so that he could enrich himself and other UAW officials,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Today's conviction leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”

The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.

Vance Pearson, the former Director of the United Auto Worker’s Region 5 and a former member of the UAW’s International Executive Board, pleaded guilty today to conspiring with other UAW officials to embezzle hundreds of thousands of dollars of UAW dues money and to further racketeering activity announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Vance Pearson, 58, of St. Charles, Missouri, pleaded guilty to conspiring to embezzle UAW dues money and conspiring to use a facility of interstate commerce to aid racketeering crimes between 2010 and September 2019.  Between June 2018 and September 2019, Pearson served as the Director of Region 5 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”).  The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.  As Region 5 Director, Pearson was a member of the UAW’s International Executive Board, which governs the affairs of the union.  Between 2016 and June 2018, Pearson served as the Assistant Director of Region 5.   

During the plea hearing, Pearson admitted that he conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Pearson and other senior UAW officials.  Pearson and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri.  Between 2010 and 2018, Pearson and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences.  In truth, however, Pearson and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators. 

For example, Pearson and other senior UAW officials used UAW money to buy sets of golf clubs, individual clubs, and other golf equipment that cost thousands of dollars.  They spent over $100,000 to purchase golf clothing, shirts, hats, sunglasses, golf balls, jackets, and fashion shorts from various pro shops at golf courses in California and Missouri.  And they spent tens of thousands of dollars in UAW funds at the Indian Canyons golf course in Palm Springs on green fees for golfing outside of the time of the UAW conferences.

Pearson and other UAW officials also spent hundreds of thousands of dollars in UAW funds to rent villas in gated communities in Palm Springs for senior UAW officials for long periods of time outside of the dates set for the UAW conferences.  In one instance, a high-level UAW official received the use of a Palm Springs villa for four months, all paid for with UAW funds.     UAW funds were also used to pay for meals for senior UAW officials at high-end restaurants outside the time periods of the UAW conferences.                

As part of the conspiracy, Pearson and his co-conspirators embezzled over $60,000 in UAW funds for the purchase of boxes of cigars, humidors, cigar cutting equipment, and lighters from 2014 to 2018.  The costs of the cigars were hidden within the expenses for the Region 5 conferences.  Pearson caused the UAW to file false reports with the Department of Labor wherein the various embezzlement activity was concealed.

During search warrants executed by federal law enforcement in August 2019 in connection with the investigation, agents recovered dozens of cigars, humidors, and other tobacco-related items in the personal residences of UAW officials.  In addition, agents seized hundreds of high-end bottles of liquor, hundreds of golf shirts, multiple sets of golf clubs, and over thirty thousand dollars in cash.  Agents seized sets of golf clubs from Pearson’s UAW office and from the home of another UAW official which were paid for with embezzled UAW funds.

Besides conspiring with other UAW officials to embezzle UAW funds, Pearson also conspired with UAW officials to aid racketeering crimes by using a facility of interstate commerce, in this case, the internet and electronic mail, to aid racketeering activity.

Based on his racketeering and embezzlement conspiracy conviction, Pearson faces a maximum of five years in prison and a fine of up to $250,000.

As part of his guilty plea, Pearson agreed to forfeit $81,000 from his so-called “Flower Fund.”  A UAW Regional Director’s Flower Fund was ostensibly to be used for the purchase of flowers for the funerals of UAW members and their families.  In practice, however, UAW officials have been forced to pay into the flower funds and the money has been exploited by senior UAW officials for their own personal use.  In addition, Pearson agreed to forfeit $38,000 held in a “Members in Solidarity,” which was an account ostensibly to be used for campaign expenses associated with UAW elections.  Finally, Pearson agreed to forfeit the set of custom made Titleist golf clubs seized from his office and which was paid for with UAW dues money.          

Pearson is the twelfth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself.  The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison).  In addition, the following UAW officials have pleaded guilty and are awaiting sentencing:  former UAW Vice President Joseph Ashton, former senior UAW official Michael Grimes, and former senior UAW official Jeffrey “Paycheck” Pietrzyk.  Former UAW Official Edward “Nick” Robinson has been charged in a criminal information, and his case is still pending.         

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“Today’s guilty plea is one more leap forward in our drive to prosecute corruption at the highest levels of the United Auto Workers union,” said United States Attorney Matthew Schneider.  “The UAW needs to be led by men and women of integrity who are dedicated to bettering the lives of the hard-working members of the union, not dedicated to lining their own pockets.” 

“Vance Pearson conspired with senior UAW officials to embezzle hundreds of thousands of dollars in union dues to further their racketeering activity.  His actions were an effort to personally enrich himself at the expense of dues-paying UAW members. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Mr. Pearson is the twelfth UAW official to plead guilty as a result of a criminal investigation which has made clear that corruption has become systemic within this organization,” said SAC D’Antuono. “The FBI and our law enforcement partners are committed to doing what is necessary to restore this great organization to its original purpose – serving hard-working union families, not enriching the powerful few.”

“As Director of the UAW’s Region 5, Vance Pearson was responsible for serving the interests of tens of thousands of UAW members across 16 states. Instead, Pearson assisted in orchestrating an ongoing criminal enterprise to enjoy a life of absolute luxury, spending hundreds of thousands of dollars with his co-conspirators in union member dues on golf, custom clubs, cigars, booze, vacations and high-end restaurants.  IRS-CI is committed to investigating crimes of embezzlement, conspiracy and racketeering,” stated Sarah Kull, Special Agent in Charge of Detroit’s IRS Criminal Investigation.   

“Vance Pearson failed his fiduciary duties as a UAW officer when he used his position to embezzle over $100,000 of UAW funds so he and his co-conspirators could live a lavish lifestyle at the expense of the union members he was elected to represent,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS will continue to work with the U.S. Attorney’s Office and our fellow law enforcement agencies to eliminate the corruption within the UAW International Union.”

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey Steven Cares.

Joseph Ashton, former Vice President of the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking $250,000 in bribes and kickbacks from a UAW vendor and to conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Joseph Ashton, 71, of Ocean View, NJ, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2012 and 2016.  During the plea hearing, Ashton admitted that he conspired with Michael Grimes and Jeffery Pietrzyk, two former high-level UAW officials in the UAW’s GM Department who previously pled guilty to the same crimes, to take hundreds of thousands of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources.  The Center for Human Resources is supposed to be a center for training UAW workers employed by GM.  Ashton was the co-director of the Center for Human Resources. Ashton, Pietrzyk and Grimes also served on the Executive Board for the Center for Human Resources and they were responsible for approving contracts with the vendors. Ashton admitted that over the course of the conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from a vendor based in Philadelphia, PA, in exchange for securing or maintaining a contract to provide custom watches to the Center for Human Resources.

Ashton and his UAW co-conspirators demanded kickbacks on the $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $250,000 in kickbacks on the watch contract to be distributed between 2013 through 2016.  Some of the kickbacks were distributed in the form of checks payable to Ashton which were deposited into his personal bank account. The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor.  However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Besides conspiring with other UAW officials and vendors to the UAW, Ashton also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.  

Ashton is the eleventh defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Jeffery Pietrzyk and Michael Grimes have pleaded guilty and are awaiting sentencing.  

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The hard-working members of the UAW deserve to be represented by union officials dedicated to providing honest representation free of corruption and greed, and today’s guilty plea is another step in the right direction,” stated US Attorney Schneider.

“Joseph Ashton abused the power of his position in the UAW to brazenly demand kickbacks from a vendor. His actions deprived union members of the honest services they expect and deserve from those who are elected to make decisions in the union's best interest,” said SAC D’Antuono. “The FBI is committed to fighting such corruption, which does real and lasting damage to the trust union members should have in their elected leadership."

 “Joseph Ashton was elected to represent and bargain in the best interests of the UAW members, but instead he used his position to enrich himself and others within the UAW” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS.”

“Joseph Ashton engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $250,000 in kickbacks from a vendor. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.

Jeffery Pietrzyk, a former high-level official in the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking over $123,000 in bribes and kickbacks from UAW vendors and contractors and to conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Jeffery Pietrzyk, 74, of Grand Island, NY, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2006 and 2018.  During the plea hearing, Pietrzyk admitted that he conspired with two other high-level UAW officials in the UAW’s GM Department to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources.  The Center for Human Resources is supposed to be a center for training UAW workers employed by GM.  Pietrzyk and the other UAW officials served on the Executive Board for the Center for Human Resources, and they were responsible for approving contracts with the vendors. Pietrzyk admitted that over the course of the twelve year conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from the vendors in exchange for securing or maintaining contracts with the Center for Human Resources or with the UAW’s GM Department.    

Pietrzyk and his co-conspirators took bribes and kickbacks from the vendors in exchange for contracts with the UAW and/or the Center for Human Resources for watches, jackets, and UAW stores at GM manufacturing facilities.  For example, in 2011, Pietrzyk and two other UAW officials demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.”  One UAW official collected the $300,000 kickback and delivered the proceeds to Pietrzyk, who in turn delivered the money to another UAW official. 

In another corrupted contract, Pietrzyk and his UAW co-conspirators demanded kickbacks on a $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM.  The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016.  Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture” which were deposited into Pietrzyk’s personal bank account. The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor.  However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Besides conspiring with other UAW officials and vendors to the UAW, Pietrzyk also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.  

Pietrzyk is the tenth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Michael Grimes has pleaded guilty and is awaiting sentencing.   

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The hard-working members of the UAW deserve to be represented by union officials dedicated to providing honest representation free of corruption and greed, and today’s guilty plea is another step in the right direction,” stated US Attorney Schneider.

“Jeffrey Pietrzyk engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $120,000 in bribes and kickbacks from vendors. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“In his official role, Mr. Pietrzyk was charged with protecting the interests of his fellow union employees, but today he admitted to abdicating this responsibility to serve his own interests,” said Steven M. D’Antuono, Special Agent in Charge of the FBI’s Detroit Field Office.  “We will continue to work with our law enforcement partners to investigate corruption and ensure the financial integrity of our country's labor unions.”

“Bribes, kickbacks, and money laundering permeated UAW culture for years and years, all at the expense of its membership.  Today’s guilty plea is yet another reminder that the Internal Revenue Service – Criminal Investigation and its law enforcement partners are dedicated to uncovering and stopping illegal and corrupt business leaders from taking advantage of not only their employees, but also the American tax payers,” said Special Agent in Charge Muriel, Detroit Field Office, Internal Revenue Service – Criminal Investigations.  

“Jeffery Pietrzyk betrayed the trust of the union membership when he used his position to enrich himself and others within the UAW by accepting bribes and kickbacks from UAW vendors and contractors,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS.”

The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.

Michael Grimes, a former high-level official in the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking over $1.5 million in bribes and kickbacks from UAW vendors and contractors and to conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Rainer S. Drolshagen, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Michael Grimes, 65, of Ft. Myers, Florida, who is a native of Grand Blanc, Michigan, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2006 and 2018.  During the plea hearing, Grimes admitted that he conspired with two other high-level UAW officials in the UAW’s GM Department to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources.  The Center for Human Resources is supposed to be a center for training UAW workers employed by GM.  Grimes and the other UAW officials served on the Executive Board for the Center for Human Resources, and they were responsible for approving contracts with the vendors.  Grimes admitted that over the course of the twelve year conspiracy, he and the other two UAW officials demanded bribes and kickbacks from the vendors in exchange for securing or maintaining contracts with the Center for Human Resources or with the UAW’s GM Department.    

Grimes and his co-conspirators took bribes and kickbacks from the vendors in exchange for contracts with the UAW and/or the Center for Human Resources for watches, jackets, backpacks, and UAW stores at GM manufacturing facilities.  For example, in 2011, Grimes and two other UAW officials demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.”  Grimes collected the $300,000 kickback and delivered the proceeds to two other UAW officials.  In addition, Grimes demanded an additional kickback for $525,000 from the same vendor for the same jacket contract. 

In another corrupted contract, Grimes and his UAW co-conspirators demanded kickbacks on a $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM.  The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016.  Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture.”  The majority of the kickbacks were distributed as cash.  In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor.  However, the watches were never distributed to UAW members.  Instead, the watches have been sitting in storage in a warehouse for over five years.                    

Besides conspiring with other UAW officials and vendors to the UAW, Grimes also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions involving millions of dollars.  

Grimes is the ninth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself.  The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison).      

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“The hard-working members of the UAW deserve to be represented by leaders who give them true leadership — and that means leadership that isn’t driven by corruption and greed,” said United States Attorney Matthew Schneider.  “Today’s guilty plea is another step in the right direction of our battle against corruption in the union leadership.”

“Michael Grimes abused his former fiduciary position as an International United Auto Workers Union official by demanding and accepting over $1.5 million in kickbacks from vendors.  Grimes chose greed over bargaining in the best interest of UAW members to personally enrich himself.  We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

"Today’s guilty plea highlights a years-long criminal investigation of wrongdoing between high ranking UAW officials and vendors,” said Acting Special Agent in Charge Drolshagen. “The FBI and our federal partners will remain vigilant in our efforts to expose these corrupt fraud schemes that continue to undermine the trust and hard work of union members.”

“For more than a decade Michael Grimes and other UAW officials were part of a corruption club that conspired to launder proceeds generated from the illegal kickback scheme.  Grimes and others concealed the source of the money through a series of convoluted transactions totaling millions of dollars.  This behavior served one purpose; self-enrichment and this greed became an epidemic throughout the corruption club,” stated Manny Muriel, Special Agent in Charge of Detroit’s IRS Criminal Investigation.

“Michael Grimes betrayed the trust of the union membership who rightfully expected him, as a union official, to protect and safeguard their union’s funds and assets instead of using his position to enrich himself and others within the UAW,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “The charges filed against Grime leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”

The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson,  Eaton Brown and Adriana Dydell.

Norwood Jewell, the former Vice President of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”) and the highest official in the UAW’s Chrysler Department was sentenced to prison today based on his conviction for accepting bribes from high-level executives of Fiat Chrysler Automobiles US LLC (“FCA” or “Fiat Chrysler”), announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Rainer S. Drolshagen, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.

Norwood Jewell, 61, of Swartz Creek, Michigan was sentenced today to 15 months in prison based on his April 2019 conviction for conspiring with other UAW officials and FCA executives to take illegal payments from Fiat Chrysler.  Between 2014 and 2016, Jewell was the highest UAW official responsible for administering and negotiating the collective bargaining agreements on behalf of tens of thousands of UAW members employed by FCA.  Jewell served as a member of the UAW’s National Negotiating Committee in 2015 responsible for negotiating the collective bargaining agreement between the UAW and Fiat Chrysler.

During the course of the conspiracy, Jewell accepted over $90,000 in illegal payments from Fiat Chrysler for his own personal benefit, for the benefit of his friends, and for the lavish entertainment of the UAW’s senior leadership.  Jewell spent tens of thousands of dollars in Fiat Chrysler money to pay for lavish meals, liquor, and cigars for the personal enjoyment of himself and other senior UAW officials.  For example, Jewell caused to be spent $6,912.81 in Fiat Chrysler money for liquor and an extravagant meal at the London Chop House in Detroit Michigan in September 2015 for himself and other senior UAW officials, while Jewell and those same UAW officials were negotiating with Fiat Chrysler executives over a new collective bargaining agreement.  Jewell also expended thousands of dollars in Fiat Chrysler money to pay for fancy meals, a three bedroom villa with a private pool and hot tub, and twenty-nine rounds of golf for himself and other senior UAW officials in Palm Springs, California.  Jewell used Fiat Chrysler money to acquire over $2,000 in tickets and passes at Disney World and Universal Studios in Orlando, Florida for Jewell’s best friend.  Finally, Jewell conducted two lavish parties, each costing over $25,000, at the joint UAW/FCA National Training Center for the members of the UAW’s International Executive Board.  The parties included thousands of dollars in Fiat Chrysler money spent on twenty boxes of cigars, ultra-premium liquor, personalized bottles of wine, and women paid to light the cigars of senior UAW leaders. 

The Court’s sentencing of Jewell marks the eighth defendant to be sentenced in the ongoing criminal investigation into illegal payoffs to UAW officials.  On July 13, 2018, defendant Monica Morgan was sentenced to 18 months in prison and ordered to pay $190,747 in restitution for her tax fraud in connection with the receipt of illegal payments by her husband, the now deceased Holiefield, who had served as the Vice President of the UAW in command of the Chrysler Department.  On August 27, 2018, Alphons Iacobelli, FCA’s Vice President for Employee Relations, was sentenced to 66 months in prison and ordered to pay $835,523 in restitution for his involvement in the conspiracy to bribe UAW officials and his submission of false tax returns.  On November 7, 2018, defendant Jerome Durden, an FCA executive and Controller of the Joint UAW/FCA National Training Center, was sentenced to 15 months in prison and ordered to pay $8,000 in restitution for his involvement in the conspiracy.  Also on November 7, 2018, defendant and FCA executive Michael Brown was sentenced to 12 months in prison and ordered to pay a $10,000 fine for lying to and misleading a federal grand jury in order to cover up FCA’s involvement in the conspiracy.  Also on November 7, 2018, defendant Keith Mickens, who served as the UAW’s Director of the National Training Center, was sentenced to 12 months in prison and a $10,000 fine for conspiring to take prohibited payments from FCA.  On November 13, 2018, defendant Virdell King, a senior UAW official, was sentenced to two months in prison and a fine of $5,500 for her participation in the conspiracy with FCA and other UAW officials.  Finally, on December 18, 2018, defendant Nancy A. Johnson, the second highest official in the UAW’s Chrysler Department, was sentenced to 12 months in prison and ordered to pay a $10,000 fine.                      

“Jewell’s actions as an elected UAW official who took tens of thousands of dollars in illegal payments from Fiat Chrysler amount to a betrayal of the UAW’s members and their families,” said U.S. Attorney Schneider.  “Our office will continue to stand up for the men and women of the union by vigorously prosecuting UAW  corruption.”

“Mr. Jewell abused his fiduciary position as the former UAW Vice-President by conspiring to accept FCA funds at the expense of the hard working rank and file members of UAW.  We will continue to work with our law enforcement partners to protect the integrity of labor unions and their benefit plans,” said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.”

“Mr. Jewell’s criminal conduct was part of a broader pattern of dishonesty and self- enrichment among those convicted as a result of this investigation,” said Rainer S. Drolshagen, Acting Special Agent in Charge, Detroit Division of the FBI. “He chose to take almost $100,000 from FCA for his personal gain instead of looking out for the best interests of UAW members.  The FBI and its federal partners will remain vigilant in investigating and exposing anyone – regardless of their position - who violates federal labor laws and betrays the trust of the workers they represent."

“Norwood Jewell betrayed the trust of the union membership who rightfully expected him to protect and safeguard their union’s funds and assets.  Instead, Jewell chose to use his elected union position to enrich himself, live a lavish lifestyle, and curry favor with the UAW’s leadership,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “Jewell’s conviction leaves no question as to the agency’s commitment to root out corruption within the labor community and seek justice when anyone uses their elected position to put their personal financial gain ahead of the best interests of union members.”

These cases are being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin S. Shaw, and Adriana Dydell.

Norwood Jewell, the former Vice President of the UAW and the highest official in the UAW’s Chrysler Department, pleaded guilty today to conspiring with other UAW officials and Fiat Chrysler executives to make illegal payments to union officials announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Acting Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Norwood Jewell, 61, of Swartz Creek, Michigan pleaded guilty to conspiring to violate the Labor Management Relations Act by accepting, arranging for, and approving illegal payments from Fiat Chrysler executives to high-level UAW officials from 2014 through 2016.  After the now-deceased UAW Vice President General Holiefield retired in 2014, Jewell and other UAW officials began running the UAW’s Chrysler Department, responsible for dealing with executives at Fiat Chrysler.  During the plea hearing, Jewell admitted to participating in a conspiracy that had existed at least from 2009 through 2016 whereby Fiat Chrysler executives conspired with one another, with Fiat Chrysler, with UAW officials, and with the UAW to funnel money and things of value worth millions of dollars from Fiat Chrysler to UAW officials and the UAW.  Fiat Chrysler and the UAW, and their executives and officials, used the joint UAW-Chrysler National Training Center in order to conceal and make the payoffs from Fiat Chrysler to senior UAW officials.      

The things of value funneled to UAW officials from Fiat Chrysler included personal travel, golf resort fees, lavish meals and parties, theme park tickets at Disney World and Universal Studios, limousine services, designer clothing, designer shoes, golf equipment, electronics, and custom-labeled bottles of wine.  Jewell admitted that in 2014 he had knowingly joined a “culture of corruption” and a conspiracy at the UAW that had been in place since 2009, whereby Fiat Chrysler illegally paid for lavish entertainment and other things of value for UAW officials.      

Jewell himself admitted to approving tens of thousands of dollars in extravagant meals for high-level UAW officials paid for by Fiat Chrysler at Detroit’s London Chop House and at multiple high-end steakhouses in Palm Springs, California in 2015 and 2016.  For example, in July 2015, Fiat Chrysler paid $8,494.37 so that the UAW’s National Negotiating Committee, including Jewell, could dine at the London Chop House right before collective bargaining negotiations with Fiat Chrysler began.  After the UAW and Fiat Chrysler negotiated a new collective bargaining agreement in September 2015, Fiat Chrysler paid $6,912.81 for the UAW’s negotiators, including Jewell, to again dine at the London Chop House in order to celebrate.  The agreement that had been negotiated was then voted down by the UAW’s membership.  Jewell and other UAW officials also accepted almost ten thousand dollars from Fiat Chrysler through the National Training Center in order to pay for multiple rounds of golf at the Indian Canyons Golf Resort in Palm Springs for senior UAW officials.            

As part of his plea, Jewell stated that other Fiat Chrysler executives continued the conspiracy to make illegal payoffs to senior UAW officials up through the end of 2016 after co-defendants and Fiat Chrysler executives Alphons Iacobelli and Jerome Durden left the company in June 2015.   

Jewell is the eighth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs involving UAW officials and FCA executives.  The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced:  former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), and Nancy A. Johnson (12 months in prison), and Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison).       

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

“Today’s conviction of a UAW Vice President demonstrates that our efforts to clean up labor corruption will not rest until the 400,000 UAW members and their families are represented by union officials of honor and integrity,” said United States Attorney Matthew Schneider.  “Labor leaders must always put the best interests of the hard working men and women of the union over their own personal interests.”     

“Mr. Jewell chose to forsake his obligation to serve the rank and file of the UAW when he accepted and authorized his subordinates to spend in excess of $40,000 in FCA funds on lavish meals, liquor, and entertainment. We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” said Irene Lindow, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

"Mr. Jewell’s criminal actions were an effort to enrich himself and his colleagues at the expense of dues-paying UAW members and denied those same hard-working men and women the assurance that union leadership was bargaining in their best interests," said SAC Slater. "The FBI will continue to work alongside our federal partners to expose these conspiracies and ensure those who violate the law are held accountable.”

“Mr. Jewell callously conspired with other UAW officials and Fiat Chrysler executives to accept illegal payments from funds meant for the hard working rank and file members of the UAW.  IRS-CI is prepared to investigate any disregard of fiduciary responsibilities entrusted to corporate and union officials who aim to selfishly enrich their own pockets.”

 “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS,” said Thomas Murray, District Director of the Office of Labor-Management Standards (OLMS) Detroit-Milwaukee District Office.  “We will continue to work cooperatively with our law enforcement partners to ensure that anyone who abuses their union position for personal financial gain will be brought to justice.”

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin Shaw, and Steven Cares.