DETROIT – Fiat Chrysler Automobiles, which is now part of Stellantis, has pleaded guilty to a lengthy corruption investigation.
Company representatives donated more than $ 3.5 million in cash and other valuables to senior United Auto Workers officials, Detroit federal prosecutors said while accusing the FCA of conspiracy from 2009 to 2016.
FCA has agreed to federal oversight for the next three years. There will be a federal monitor who will make sure there are no undue payments to UAW in the future.
TO READ: Fiat Chrysler agrees to plead guilty and pay $ 30 million in UAW probe
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By Ed White with Associated Press
DETROIT (AP) – U.S. carmaker FCA pleaded guilty to conspiracy Monday, admitting it paid leaders of united automobile workers to try to win concessions in negotiations on thousands of factory workers.
FCA’s conviction follows a series of counts of guilt from UAW officials who received more than $ 3.5 million in cash and valuables from a jointly run training center over a period of eight years. years.
FCA means Fiat Chrysler Automobiles, which is now part of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot.
“The FCA violated federal labor law and undermined the collective bargaining process and the faith of UAW membership in its leaders,” acting attorney Saima Mohsin said.
The head of labor relations at the FCA, Al Iacobelli, executed the scheme with five UAW officials and a spouse, especially General Holiefield, who was union vice president. In 2014 he eliminated a $ 262,000 mortgage in 2014 with money from the training center.
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Union officials used credit cards to spend expenses.
“Your Honor, we plead guilty,” FCA General Counsel Chris Pardi told U.S. District Judge Paul Borman.
Lacobelli was sentenced to 5 1/2 years in prison in 2018, but his sentence was recently reduced to 18 months due to his collaboration. Holiefield died in 2015; his wife pleaded guilty to a tax offense three years later.
Holiefield’s successor, Norwood Jewell, was sentenced to 15 months in prison. His claim agreement included $ 60,000 in meals and golf paid for with credit cards from the training center.
FCA will pay a $ 30 million fine to the government. An independent monitor will be appointed to oversee the completion of the training center and manage other tasks.
The government’s investigation was made public in 2017, but officers soon discovered other cases of corruption in the UAW. Union dues were used to pay for golf, alcohol, and vacation villas in California, and contractors gave rewards to union businesses.
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Eleven officials have been convicted, including former presidents Gary Jones and Dennis Williams. They are awaiting sentencing in Detroit federal court.
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