Feds Charge Former UAW Vice President Ashton With Fraud, Money Laundering -- Update
November 06 2019 - 12:02PM
Dow Jones News
By Nora Naughton
Federal prosecutors charged former United Auto Workers vice
president and ex- General Motors Co. board member Joe Ashton with
fraud and money laundering, according to court documents filed
Wednesday, the latest in a yearslong criminal investigation into
corruption in the union's top ranks.
Mr. Ashton, who retired from the UAW in 2014 and left the GM
board in 2017, is accused of helping to orchestrate a scheme to
personally enrich himself and other UAW officials by steering
contracts to vendors in exchange for bribes and kickbacks,
prosecutors alleged.
GM and the UAW declined to immediately comment on the charges.
Mr. Ashton's attorney, Jerome A. Ballarotto of New Jersey, didn't
immediately return a phone message requesting comment.
Mr. Ashton is now the 13th person charged in the Justice
Department's widening criminal probe into allegations of
corruption, bribery and other financial misconduct among
top-ranking officials at the UAW, one of the nation's oldest
unions. The investigation has potentially implicated UAW President
Gary Jones, who over the weekend stepped aside to take a leave of
absence. Mr. Jones hasn't been charged and his attorney said he
took voluntary leave and didn't face pressure to do so.
Mr. Ashton is also the second former UAW vice president to be
charged in the investigation, which first became public in 2017 and
had initially focused on misuse of UAW training-center funds at
Fiat Chrysler Automobiles NV. Fiat Chrysler has said the misconduct
was perpetrated by a small group of individuals acting in their own
interest.
The latest charges mark another setback for the UAW leadership
at a time when union officials are still trying to secure new labor
contracts at Ford Motor Co. and Fiat Chrysler. The UAW late last
month reached a new labor agreement with GM after a 40-day
nationwide walkout.
(END) Dow Jones Newswires
November 06, 2019 11:47 ET (16:47 GMT)
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