UAW Board Member Charged with Embezzlement

Federal authorities have arrested Vance Pearson, a United Auto Workers Union regional director and board member, on charges of conspiracy, embezzlement, money laundering and mail and wire fraud.

The charges come two weeks after federal agents raided Pearson’s home and those of other UAW executives, including President Gary Jones and previous President Dennis Williams.

The raids were in connection with a separate probe into criminal activities involving the union and carmakers with which it had labor contracts. That probe has led to indictments or guilty pleas for nine union and company officials.

Pearson is among several unnamed senior UAW executives that U.S. Dept. of Labor investigators say diverted hundreds of thousands of dollars of union funds to pay for lavish meals, sets of golf clubs, extended stays at luxury villas and other extravagances.

The UAW calls the allegations “very concerning” but notes they alone are not proof of wrongdoing. The union adds that it remains focused on new contract negotiations with General Motors Co. to replace the four-year pact that expires next month.

Pearson is a 17-year UAW member who succeeded union President Gary Jones as director the union’s Region 5 in Missouri last year.

A 39-page affidavit filed by the Labor Dept. catalogs extravagant spending linked to Region 5 leadership conferences held between 2014 and 2018 when Jones was the unit’s director.

The spending included paying to house certain UAW officials for the 3-5-day conferences for as long as 105 days in off-site condominiums, buying $60,000 worth of cigars and smoking paraphernalia and covering $80,000 in golf resort fees.