DETROIT – Federal officials have made it to the top of the ladder in the United Auto Workers corruption investigation, indicting former UAW President Gary Jones.
Federal prosecutors said Jones played a key role in funneling more than $1 million from the union. He used the money for lavish trips, expensive cigars and more, authorities said.
Jones is charged with embezzlement of union funds, tax evasion and racketeering. U.S. Attorney Matthew Schneider said Jones ran as a reformer.
About a year ago, Jones sold his indignation hard.
“I’m deeply saddened and irritated that some members of this union and some leaders in the auto companies exploited their positions to benefit themselves,” Jones said at the time. “It frustrates me and I know it frustrates you.”
A few months later, FBI and IRS agents raided Jones’ home in Canton Township, finding loose cash.
Federal officials call this a multifaceted embezzlement scheme. Hundreds of thousands of dollars were stolen and more than $60,000 in cash was delivered to Jones directly from UAW Region Five underling Edward Nick Robinson, according to federal officials.
“Instead of that cash and property going to help the men and women of the union, Mr. Jones spent it on his own personal enjoyment and on the whims of other high-ranking union officers,” Schneider said.
Federal officials said $129,336 was spent on luxury condos and villas and $80,904 was spent on greens fees and merchandise. UAW officials spent $65,338 on lavish restaurants, spa services, clothes, musicals, amusement park tickets and horse rides on the beach, according to authorities. More than $15,000 was used to buy expensive cigars, feds said.
“Some of the proposed changes I have seen I’m not impressed with, and I don’t think that’s going to do the trick,” Schneider said. “Some things might, but look, we have to talk about real, genuine reforms. We’re not really seeing that right now.”
UAW officials were very careful to say in their statement that new President Rory Gamble is not under investigation. The union decried Jones’ charges as a betrayal of trust. He’s been expelled from the union.
According to the document filed Feb. 27, Jones, along with co-defendants Vance Pearson and Robinson, conspired to embezzle union funds for their own personal use between 2010 and September 2019. Here is the filing (view here if it’s not showing below):
11 officials already have pleaded guilty in scandal
Eleven people have pleaded guilty in connection with the ongoing investigation into illegal payoffs to UAW officials by FCA executives and corruption within the union, according to authorities.
Here are the other UAW officials who have already pleaded guilty to a role in the scheme:
- Former FCA Vice President for Employee Relations Alphons Iacobelli -- 66 months in prison
- Former FCA Financial Analyst Jerome Durden -- 15 months in prison
- Former Director of FCA’s Employee Relations Department Michael Brown -- 12 months in prison
- Former senior UAW official Virdell King -- 60 days in prison
- Former senior UAW official Keith Mickens -- 12 months in prison
- Former senior UAW official Nancy A. Johnson -- 12 months in prison
- Former senior UAW official Monica Morgan, the widow of UAW Vice President General Holiefield -- 18 months in prison
- Former UAW Vice President Norwood Jewell -- 15 months in prison
- Former VP of UAW’s General Motors Department Joseph Ashton -- pleaded guilty and awaiting sentencing
- Former senior UAW official Jeffrey Pietrzyk -- pleaded guilty and awaiting sentencing
- Former senior UAW official Michael Grimes -- pleaded guilty and awaiting sentencing
- Former UAW officials Edward “Nick” Robinson has been charged in a criminal information, but his case is still pending