DETROIT – A former executive of Fiat Chyrsler Automobiles and the wife of the former UAW vice president were indicted on federal charges including conspiracy and tax evasion.
READ: UAW releases statement in response to indictment of former FCA exec and former UAW VP's wife
Alphons Iacobelli and Monica Morgan are both charged with conspiracy to violate the labor management relations act. Iacobelli is also charged with paying and delivering prohibited money and things of value to union officials, conspiracy to defraud the U.S., subscribing false tax returns and willful failure to file tax return.
Iacobelli was the FCA vice president for employee relations and the senior official responsible for negotiating with the UAW. Morgan was the spouse of UAW Vice President General Holiefield, who died in March of 2015 after battling pancreatic cancer for several months.
The indictment alleges that Iacobelli and other co-conspirators acting in the interest of FCA unlawfully paid $1.2 million in prohibited payments to Holified between 2009 and 2015. The payments included personal travel, designer clothing, furniture, jewelry, and paying off the $262,219 mortgage on Holiefield and Morgan’s home.
An email from May of 2011 allegedly sent from FCA financial analyst Jerome Durden to Iacobelli describes travel arrangements made for Morgan to fly first-class from Detroit to San Diego.
Later that day, Iacobelli allegedly responded, “wouldn’t put this in writing. No worries, we can cover.”
More than $30,000 in airline tickets were allegedly bought for Morgan authorized by Iacobelli and other co-conspirators with funds provided by FCA.
Morgan established Wilson’s Diversified Products and allegedly used the corporation to conceal prohibited payments. More than $425,000 of funds provided by FCA were allegedly transferred to the corporation, and later withdrawn for personal purchases.
FCA released the following statement:
"FCA US and the UAW were the victims of malfeasance by certain of their respective employees that held roles at the National Training Center (NTC), an independent legal entity. These egregious acts were neither known to nor sanctioned by FCA US. Upon learning of possible malfeasance in June 2015, the Company investigated the matter and, as a result, Mr. Iacobelli and Mr. Durden were promptly separated from the Company upon FCA US obtaining credible evidence of wrongdoing. The Company has also worked with the UAW to implement governance, auditing and structural reforms to improve the accountability and transparency of the NTC. FCA US has cooperated fully with the U.S. Attorney’s office in its investigation of this matter. We remain committed to ensuring that the Company and its employees act in a manner consistent with high standards of legal compliance, ethics, integrity and quality. The Company intends to pursue all potential legal remedies against Mr. Iacobelli and any other culpable parties. As the U.S. Attorney’s investigation is ongoing, the Company cannot comment further."
Read the full indictment below:
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