Federal Prosecutors Ask UAW Members for Tips in Corruption Probe
December 14 2019 - 9:29AM
Dow Jones News
By Nora Naughton
Federal prosecutors in Detroit say United Auto Workers leaders
aren't fully cooperating with the government's probe into alleged
corruption, prompting them to appeal to rank-and-file members to
come forward with any information.
Matthew Schneider, the U.S. attorney in eastern Michigan,
accused the union's leadership of withholding evidence and
information from his office, which is investigating allegations of
bribery, corruption and other financial misconduct involving
top-ranking UAW officials.
The criminal probe, which first became public in 2017, has
resulted in 11 convictions so far, including two former union vice
presidents.
Mr. Schneider, who is overseeing the probe, said UAW leaders
haven't been as open as his office had hoped, and that is why his
office is turning to the public.
"If we felt very secure we were getting all the cooperation we
needed, there would be no need to reach out to the men and women of
the union or to other people who have interaction with the UAW," he
said in an interview Friday with The Wall Street Journal.
A UAW spokesman said in a statement that the union continues to
cooperate in providing the government with any and all records
requested and pointed to recent changes intended to root out
corruption.
"The UAW has, as recently as two weeks ago, expressed a
willingness to further work with the government on the issues of
concern," the spokesman said.
The federal investigation into an alleged bribery scheme between
union officials and Fiat Chrysler Automobiles NV has widened to
other parts of the UAW, ensnaring several top officials and former
union leaders. Earlier this month, Joe Ashton, a former UAW vice
president and an ex- General Motors board member, pleaded guilty to
conspiracy to commit wire fraud and money laundering.
Mr. Schneider said his office is continuing to expand the scope
of its probe as investigators get more tips.
While much of the recent focus has been on UAW officials, Mr.
Schneider said investigations of Fiat Chrysler, GM and Ford Motor
Co. are still active. He declined to give details. The auto makers
have said they are cooperating with investigators.
The expanding UAW probe became a dramatic backdrop during
contract talks this year involving the three Detroit car companies,
with Gary Jones abruptly resigning as UAW president late last month
after leading a 40-day strike at GM.
Federal agents searched his home in August, and he faced
pressure from members of the UAW's board to resign before contract
talks heated up in September, according to people familiar with the
matter.
GM has used the federal investigation as a basis for a federal
racketeering lawsuit filed last month, alleging that Fiat Chrysler
bribed union officials to gain more-favorable labor contracts. Fiat
Chrysler has said it plans to fight the lawsuit, which it says is
without merit.
UAW leaders said last month that an internal investigation found
evidence that Mr. Jones spent union funds on personal expenses
during trips to California and then sought to cover up his
actions.
Mr. Jones's attorney didn't respond to a request for comment,
but has said his client had planned to resign before learning of
the union's allegations.
Mr. Schneider said the union failed to share new details on the
alleged wrongdoing with his office. He instead first learned of it
by reading it in newspapers.
"That's not quite complete cooperation," Mr. Schneider said.
Mr. Schneider said that since his office has started to speak up
publicly, it has received tips from rank-and-file UAW members who
say they have witnessed unlawful behavior. He declined to give more
details.
The UAW, under the newly elected president, Rory Gamble, says it
is making changes to address years of corruption. Among the changes
is a move to disband a regional office in Missouri, which has been
a focus of a federal probe. Mr. Gamble has also made changes
including the creation of a new position to review complaints from
members.
Mr. Schneider said it is too early to tell if the union's latest
efforts are adequate.
As investigators with the Federal Bureau of Investigation, Labor
Department and Internal Revenue Service continue to probe the
union's financial dealings, Mr. Schneider said his office is
considering various options regarding how to proceed, including the
possibility of federal oversight of the union -- an approach that
was used with the Teamsters to sever ties with organized crime.
"All of those options are still on the table, and none should be
taken off," he said.
(END) Dow Jones Newswires
December 14, 2019 09:14 ET (14:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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