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DETROIT – Fiat Chrysler Automobiles, now part of Stellantis, pleaded guilty to a lengthy corruption investigation.
The company’s representatives awarded 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.
The FCA has agreed with federal oversight for the next three years. There will be a federal monitor to ensure that no more inappropriate payments are made to the UAW.
READ: Fiat Chrysler agrees to plead guilty and pay $ 30 million in UAW probe
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By Ed White with the Associated Press
DETROIT (AP) – US carmaker FCA pleaded guilty to conspiracy on Monday, acknowledging that it bore United Auto Workers leaders to try to win concessions in negotiations covering thousands of factory workers.
The FCA’s conviction follows a series of complaints by UAW officials, who received more than $ 3.5 million in cash and valuables from a jointly run training center for eight years.
FCA represents Fiat Chrysler Automobiles, which is now part of Stellantis, a company created by merging Fiat Chrysler and PSA Peugeot.
“The FCA violated federal labor law and undermined the collective bargaining process and the UAW’s belief in their leaders,” said U.S. Attorney General Saima Mohsin.
FCA’s head of labor relations, Al Iacobelli, executed the scheme with five UAW officials and a husband, especially General Holiefield, who was the union’s vice president. He eliminated a $ 262,000 home mortgage in 2014 with money from the training center.
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Union officials used credit cards for expenses.
“Honor, we plead guilty,” FCA attorney general Chris Pardi told U.S. District Judge Paul Borman.
Lacobelli was sentenced to 5 and a half years in prison in 2018, but his sentence was recently reduced by 18 months due to his cooperation. 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 complaint agreement included $ 60,000 in meals and golf paid for with training center credit cards.
The FCA will pay a $ 30 million fine to the government. An independent monitor will be appointed to oversee the end of the training center, as well as to manage other tasks.
The government’s investigation became public in 2017, but agents soon discovered other corruption in the UAW. Union fees were used to pay for golf, alcohol and vacation villas in California, and contractors gave rewards for union business.
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Eleven officials were convicted, including former presidents Gary Jones and Dennis Williams. He is awaiting sentencing in federal court in Detroit.
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