Former Fiat Chrysler executive charged with payoff scheme

Both, Fiat Chrysler and the United Auto Workers union have denied knowledge of the scheme. Three people were indicted in this pay off scheme.

 

On Wednesday, a former vice president of Fiat Chrysler has been indicted for making $1.2 million in improper payments to a former union vice president and his wife, said authorities.

In a statement, the automaker stated it along with the United Auto Workers (UAW) union were the victims of malfeasance by certain groups of their respective employees.

“These egregious acts were neither known to nor sanctioned by (Fiat Chrysler),” reads Fiat Chrysler’s statement.

The UAW stated it had hired independent outside counsel to conduct an internal investigation into the allegations.

The former vice president of employee relations at Fiat Chrysler has been charged in a U.S. District Court in Detroit with taking part in a multi-year conspiracy to pay money and gifts to UAW officials.

“Today’s indictment exposes a disturbing criminal collaboration that was ongoing for years between high ranking officials of FCA and the UAW,” said David Gelios, head of Detroit’s FBI office, in a statement.

David DuMouchel, a lawyer for Iacobelli, has declined to comment. Meanwhile Iacobelli, who left Fiat Chrysler in 2015 after an internal company investigation found evidence of wrongdoing, is expected to be arraigned next week.

Monica Morgan, the wife of former UAW Vice President General Holiefield, who died in March 2015, has also been indicted in this ruling. Their alleged payments include designer clothing, furniture, jewelry, and paying off $262,219 of mortgages on Holiefield’s and Morgan’s residence. The payments were made between 2009 and 2014.

A former financial analyst who served as the controller of the UAW-Chrysler National Training Center, (NTC) was also charged.

In a statement the UAW said, it had no knowledge of the fraudulent activities and came to know of their existing through the government.

“We nevertheless take responsibility for not doing more to exert our influence over the governance policies of the NTC, which might have uncovered this corruption sooner,” said the UAW in a statement.

Incidentally, the NTC is a separate legal entity from the UAW. It receives no union dues.

These alleged abuses “dishonored the union and the values we have upheld for more than 80 years,” said the UAW.

According to Fiat Chrysler, it had worked with the UAW “to implement governance, auditing and structural reforms to improve the accountability and transparency of the NTC.”

On Wednesday, a former vice president of Fiat Chrysler has been indicted for making $1.2 million in improper payments to a former union vice president and his wife, said authorities.

In a statement, the automaker stated it along with the United Auto Workers (UAW) union were the victims of malfeasance by certain groups of their respective employees.

“These egregious acts were neither known to nor sanctioned by (Fiat Chrysler),” reads Fiat Chrysler’s statement.

The UAW stated it had hired independent outside counsel to conduct an internal investigation into the allegations.

The former vice president of employee relations at Fiat Chrysler has been charged in a U.S. District Court in Detroit with taking part in a multi-year conspiracy to pay money and gifts to UAW officials.

“Today’s indictment exposes a disturbing criminal collaboration that was ongoing for years between high ranking officials of FCA and the UAW,” said David Gelios, head of Detroit’s FBI office, in a statement.

David DuMouchel, a lawyer for Iacobelli, has declined to comment. Meanwhile Iacobelli, who left Fiat Chrysler in 2015 after an internal company investigation found evidence of wrongdoing, is expected to be arraigned next week.

Monica Morgan, the wife of former UAW Vice President General Holiefield, who died in March 2015, has also been indicted in this ruling. Their alleged payments include designer clothing, furniture, jewelry, and paying off $262,219 of mortgages on Holiefield’s and Morgan’s residence. The payments were made between 2009 and 2014.

A former financial analyst who served as the controller of the UAW-Chrysler National Training Center, (NTC) was also charged.

In a statement the UAW said, it had no knowledge of the fraudulent activities and came to know of their existing through the government.

“We nevertheless take responsibility for not doing more to exert our influence over the governance policies of the NTC, which might have uncovered this corruption sooner,” said the UAW in a statement.

Incidentally, the NTC is a separate legal entity from the UAW. It receives no union dues.

These alleged abuses “dishonored the union and the values we have upheld for more than 80 years,” said the UAW.

According to Fiat Chrysler, it had worked with the UAW “to implement governance, auditing and structural reforms to improve the accountability and transparency of the NTC.”

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