Former FCA Executive Indicted For Allegedly Enriching Himself, UAW Officers And Employees

Paterniano Del Favero
Luglio 27, 2017

Federal prosecutors allege that a former Chrysler executive used funds from the training center for personal benefit - including the purchase of a sports vehicle and two $37,500 pens - and for innappropriate gifts to union officials during negotiations, and that the wife of a former UAW vice president helped him do it.

The indictment says a $262,000 mortgage was paid off on the couple's home in suburban Detroit.

"Today's indictment exposes a disturbing criminal collaboration that was ongoing for years between high ranking officials of FCA and the UAW", David Gelios, head of the Detroit FBI office, said in a statement. "These egregious acts were neither known to nor sanctioned by (Fiat Chrysler)".

Iacobelli was Fiat Chrysler's vice president for labor relations. After $0.46 actual earnings per share reported by Fiat Chrysler Automobiles NV for the previous quarter, Wall Street now forecasts 32.61 % EPS growth.

An unnamed FCA employee later instructed Durden in February 2012 to hide the National Training Center expenditures for the UAW, saying the expenditures could "raise eyebrows", according to the complaint. Iacobelli and Holiefield were co-chairmen.

Iacobelli, 57, and Morgan, 54, were charged with criminal violations of the National Labor Relations Act. Morgan's lawyer declined comment. A message seeking comment was left for his lawyer.

Williams says the UAW had no knowledge of the activity until they it was told by government officials. Upon learning of possible malfeasance in June 2015, the Company investigated the matter and, as a result, Mr. Iacobelli and Mr. Durden were promptly separated from the Company upon FCA US obtaining credible evidence of wrongdoing.

UAW president Dennis Williams said the allegations "dishonored the union and the values we have upheld for more than 80 years".

Iacobelli's last position of record is with General Motors, as executive director of labor relations, as of January 2016.

Wickham says he doesn't know Iacobelli's status with GM after the indictment Wednesday.

Iacobelli is accused of enriching himself, too.

The indictment alleges that numerous payments were routed through a joint union-company training center.

FCA said it is cooperating with federal prosecutors and "intends to pursue all potential legal remedies against Mr. Iacobelli and any other culpable parties".

The government alleges that a complex web of phony charities, sham corporations and credit cards was created to divert money from the training center.

Morgan was charged with using a photo company, among others, to hide payments from Iacobelli and others, while also failing to report the income she received. Holiefield was responsible for negotiating with Fiat Chrysler on behalf of the United Auto Workers. He became a UAW vice president in 2006. Morgan was the spouse of UAW Vice President General Holiefield, who died in March of 2015 after battling pancreatic cancer for several months.

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