Mexican Media Brands
Another Guilty Plea in UAW Corruption Probe
Another former United Auto Workers union official, this one from the union’s General Motors department, has pleaded guilty to money laundering and wire fraud.
#legal #labor
Share
Another former United Auto Workers union official, this one from the union’s General Motors department, has pleaded guilty to money laundering and wire fraud.
The plead by Michael Grimes in a U.S. District Court in Michigan, is the latest in a federal investigation into kickbacks, bribes and other illegal activity between the union and the companies whose hourly workers it represents. The charges against Grimes were unsealed two weeks ago.
The probe began more than two years ago. It initially focused on a joint worker training center operated by the UAW and Fiat Chrysler Automobiles NV. It has since expanded to other current or former UAW executives connected with the union’s GM department.
Federal prosecutors say Grimes had conspired since at least 2006 with two unidentified senior UAW officials to pressure a GM vendor into paying hefty kickbacks on contracts to supply jackets and backpacks for union members.
A contrite Grimes acknowledges his transgressions and regrets damaging the UAW’s reputation, according to his lawyer. Grimes faces as many as 20 years in prison.
RELATED CONTENT
-
Court Ruling Exposes GM to Punitive Damages Over Ignition Switches
A new ruling by the federal judge who presided over General Motors Corp.’s 2009 bankruptcy could expose post-bankruptcy General Motors Co. to a wave of costly punitive damage awards linked to the company’s defective ignition switches.
-
Tesla Sued Over Fatal Crash of Car in Autopilot Mode
Tesla Inc. has been sued by the family of a California man whose Tesla Model X crossover vehicle crashed into a highway barrier last year while the car was operating in semi-autonomous Autopilot mode.
-
China Prepares to Sanction U.S. Carmaker for Price Fixing
China is preparing to fine an undisclosed U.S. carmaker for ordering its distributors to fix prices beginning in 2014, according to China Daily. Media reports say General Motors Co. is the target.