AutoInformed

Former UAW President Gary Jones, left, is awaiting sentencing after pleading guilty of fraud. On open issue is GM’s federal racketeering lawsuit against FCA and former FCA executives who previously have pled guilty in the federal corruption probe.

United States Attorney Matthew Schneider announced today that an agreement has been reached with the United Auto Workers Union to resolve the Eastern District of Michigan findings of fraud and corruption within the UAW. The parties also jointly filed a proposed Consent Order setting forth the terms of a settlement of the lawsuit.

The proposed settlement – subject to Court approval – fully and finally resolves the criminal and civil investigation of the UAW as an entity. The UAW also agrees to resolve a tax investigation by making a payment of $1.5 million to the Internal Revenue Service in connection with administrative fees that the union received from the three joint training centers that were operated with the  FCA, Ford and GM.

In a partial UAW victory, the civil lawsuit was not filed under the federal anti-racketeering RICO law because the investigation by the United States did not uncover any involvement by organized crime or the mafia in the operations of the UAW.  Instead, the civil complaint sets forth in detail a series of corrupt and fraudulent acts by former officers and board members of the UAW, as well as executives of Fiat Chrysler Automobiles. The status of another RICO suit by GM  related to the UAW corruption matter (updated 15 Dec) is GM’s federal racketeering lawsuit against FCA and former FCA executives is: “GM’s suit is ongoing. It’s directed against FCA, as well as individuals (Ashton, Iacobelli – both are in prison) who are former executives,” said David Caldwell of GM.

Continue reading →