:strip_exif(true):strip_icc(true):no_upscale(true):quality(65)/d1vhqlrjc8h82r.cloudfront.net/03-01-2021/t_c231350b3bfc4fbabe7dcd71c6ff2a9b_name_Fiat_Chrysler_Peugeot_Merger "Fiat Chrysler pleads guilty to corruption case")
DETROIT Fiat Chrysler Automobiles, now part of Stellantis, has pleaded guilty in a long-running corruption case.
Representatives of the company gave more than $ 3.5 million in cash and other valuables to senior officials at United Auto Workers, federal prosecutors in Detroit said as they charged the FCA from 2009 to 2016 with conspiracy.
FCA has agreed to federal oversight for the next three years. There will be a federal monitor that will ensure that there are no improper payments to UAW from now on.
READ: Fiat Chrysler agrees to pay $ 30 million in UAW investigation
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By Ed White with Associated Press
DETROIT (AP) – Automaker FCA US on Monday pleaded guilty to conspiracy and confessed to paying United Auto Workers leaders to try to win concessions in the negotiations covering thousands of factory workers.
The FCA’s conviction follows a series of convictions by UAW officials who received more than $ 3.5 million in cash and valuables from a joint training center over an eight-year period.
FCA stands for Fiat Chrysler Automobiles, which is now part of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot.
“FCA has violated federal labor laws and undermined the collective bargaining process and the belief of the UAW’s membership in their leaders,” Acting U.S. Attorney Saima Mohsin said.
The head of FCA labor relations, Al Iacobelli, carried out the scheme with five UAW officials and a spouse, most notably General Holiefield, who was a vice president of the union. He eliminated a $ 262,000 home mortgage in 2014 with money for training centers.
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Union officials used credit cards to spend money.
“Your honor, we plead guilty,” FCA General Counsel Chris Pardi told U.S. District Judge Paul Borman.
Lacobelli was sentenced in 2018 to 5 1/2 years in prison, but the sentence was recently reduced by 18 months due to his cooperation. Holiefield passed away in 2015; his wife pleaded guilty three years later to a tax crime.
Holiefield’s successor, Norwood Jewell, has been sentenced to 15 months in prison. His plea deal paid $ 60,000 in meals and golf with credit cards for the training center.
FCA will pay a fine of $ 30 million to the government. An independent monitor will be appointed to oversee the end of the training center and to handle other tasks.
The government investigation became known in 2017, but agents soon discovered other corruption at the UAW. Trade unions have been used to pay for golf, liquor and vacation villas in California, and contractors are giving back to unions.
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Eleven officials have been convicted, including former President Gary Jones and Dennis Williams. They are awaiting their sentences in federal court in Detroit.
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