the feds can have great fun with the teamsters local 707 pension fund suffolk county legislator union trustee, yrc prviding an employer trustee etc
the nfl players' blows the whistle and says the feds will review the books and revords of the pendion fund, its trustees and employers
las vegas will take action on the out ome of the federal investigation
mcaffrey was previously reminded at a union meeting that the dept of labor focuments he waived around while provlsi ing innocence was not an investigation by proper and compete t federal prosecutorial authority
get the sheet metal minnows off the road and plsy ball with the crimefamily allstars the teamsters
the i pending demise of the teamsters central states pension fund and the pbcg started with the cri inality of the central states pension fund and its budiness dealings
ladies and gentlemen start your engines and throw the uaw minnows in a great lake and look at the sharks. blood is easy to find and the teamsters consent decree showed no angels
Former UAW Official Pleads Guilty in Federal Probe of Union Corruption
Michael Grimes was a senior official dealing with General Motors; investigation has led to eight convictions
A former top aide at the United Auto Workers union pleaded guilty Wednesday to conspiracy charges, as part of a federal investigation into corruption within UAW leadership ranks that recently expanded to the union’s president and his predecessor.
Michael Grimes, a retired official who was assigned to the UAW’s General MotorsCo. GM 3.60% division and once served as an administrative assistant to a union vice president, stood accused of wire fraud and money laundering. Those charges carry a maximum of 20 years in prison. Under his plea deal, federal prosecutors will recommend he serve a sentence of no more than four years and nine months.
and once served as an administrative assistant to a union vice president, stood accused of wire fraud and money laundering. He entered into a plea deal with federal prosecutors for a lesser sentence. The charges carry a maximum of 20 years in prison.
Mr. Grimes is the first senior official from the UAW’s GM department to be charged in the continuing criminal probe, which first became public in 2017 and has largely focused on financial misconduct involving executives at Fiat Chrysler Automobiles FCAU 2.80% NV and their union counterparts.
Federal prosecutors say Mr. Grimes received about $2 million in kickbacks and bribes from vendors hired to provide clothing and other promotional accessories to the UAW’s training center for GM workers. In one instance, they say he used his power as a union official to coerce a watch vendor to pay $60,000 on his mortgage, according to court documents filed last month.
The charges allege Mr. Grimes and other unnamed union officials spearheaded the scheme—which started in 2006 and lasted until July 2018—to enrich themselves. Before retiring from the union last year, Mr. Grimes had worked alongside UAW Vice President Cindy Estrada and was on the UAW-GM training center’s board.
Mr. Grimes told the court in Ann Arbor, Mich., that he was experiencing financial hardship when he accepted the kickbacks. His attorney, Michael Manley, told reporters after the plea hearing that Mr. Grimes was devastated by his actions.
The Justice Department’s investigation has already resulted in eight convictions, including a prison term for Fiat Chrysler’s former head of labor relations.
Last week, federal agents searched the homes of UAW President Gary Jones, the union’s highest-ranking official, and his predecessor, Dennis Williams, marking a significant elevation in a probe that has concentrated on allegations that union officials used funds set aside for worker training programs for their personal benefit. Neither man has been charged with a crime.
The UAW has said its leadership is cooperating with federal investigators and the search warrants weren’t necessary.
“The conduct admitted by Mr. Grimes in his plea today is shocking and absolutely disgraceful,” the UAW said Wednesday.
The union said it has recently enacted reforms that provide more oversight and restrictions to the vendor-bidding process to ensure such behavior doesn’t occur again.
As the investigation accelerates, the UAW is working to negotiate new four-year labor contracts with the Detroit auto makers. The current contracts, representing nearly 150,000 U.S. factory workers at GM, Ford Motor Co. and Fiat Chrysler, expire on Sept. 14.
The union on Tuesday said it would target GM to bargain with first, aiming to reach a deal with the car company that it can use as a template for similar agreements with Fiat Chrysler and Ford Motor Co.
The federal investigation has gained momentum in recent months with the conviction of former UAW Vice President Norwood Jewell, who as a top-ranking official led bargaining with Fiat Chrysler. In August, Mr. Jewell was sentenced to 15 months in federal prison after pleading guilty to violating the Labor Management Relations Act. Charges filed against Mr. Jewell earlier this year say he knowingly accepted more than $40,000 in travel, lodging and meals from people acting in the interest of Fiat Chrysler.
The charges specifically indicate Mr. Jewell made purchases on a credit card funded by Fiat Chrysler through its UAW-Chrysler National Training Center.
Fiat Chrysler has said the misconduct involved a small group of individuals acting on their own and had no impact on the collective bargaining process.
The Italian-American auto maker disclosed in a securities filing in May it was negotiating a settlement with the Justice Department to resolve the investigation. These negotiations include the possibility of federal oversight of Fiat Chrysler and payments of less than $50 million, according to a person familiar with the talks.
The charges against Mr. Grimes make no mention of GM employees being involved in the kickback scheme.
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