Second Auto Union Boss Charged In Corruption Probe, As Union Seeks To Bolster ‘Ethical Policies’

TOPLINE

Even as the United Auto Workers, one of the nation’s largest labor unions, works to boost “financial and ethical policies and controls,” it continues to face questions about its former bosses’ legal woes, including Thursday, when former UAW President Dennis Williams was charged with conspiracy to embezzle union funds in a long-running federal probe.

KEY FACTS

Williams, who was president of the 400,000 member union from June 2014 to June 2018, was accused Thursday of conspiracy tied to a years-long federal probe into racketeering, bribery and other crimes that has pushed one of the nation’s most powerful unions to the brink of a federal takeover, according to the Detroit News, which has closely followed the saga.

Williams, 67, of Corona, California, is charged with conspiring with former UAW President Gary Jones and others to embezzle UAW dues money between 2010, when Williams was the Secretary-Treasurer, and September 2019, according to the Justice Department; agents with the FBI, Labor Department and Internal Revenue Service allege the labor leaders received bribes and illegal benefits from union contractors and Fiat Chrysler Automobiles NV executives, the News said.

In a statement, the UAW called Thursday a “sad day for UAW members,” but chose to focus on the future, saying: “we are aware of criminal charges filed against former UAW President Dennis Williams,” but adding that it plans to “focus on comprehensively reviewing and strengthening our union’s financial and ethical policies and controls.”

A conviction of Williams could be used to pressure the UAW to agree to federal oversight aimed at eliminating corruption, the News said; in June, Jones, 63, of Texas, pled guilty to one count of conspiring to embezzle UAW dues money and conspiring to use a facility of interstate commerce to aid racketeering, according to the Justice Department.

Williams, who could not be reached for comment, is the fifteenth defendant to be charged in the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by Fiat Chrysler  executives, the Justice Department said in a news release.

The union has endorsed Democratic presidential Nominee Joe Biden, announcing its official support for him in mid-April, after rivals Elizabeth Warren and Bernie Sanders had dropped out.

crucial quote

“The charges today are further steps forward in our relentless effort to ensure that the over 400,000 men and women of the UAW have honest and ethical leadership.”

U.S. Attorney Matthew Schneider

key background

The government’s formal charging document, called an information, alleges that Williams and other senior UAW officials used UAW money to pay for personal expenses, including months-long stays at private villas in Palm Springs, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals.  During the course of the conspiracy, while Williams was UAW president, co-conspirators Gary Jones and others provided themselves and Williams with “thousands of dollars in such personal items,”  prosecutors said. UAW officials concealed hundreds of thousands of dollars in personal expenditures — including lavish entertainment and personal spending —in the cost of UAW conferences held in Palm Springs and Coronado, California, along with Missouri, prosecutors said. Williams faces a maximum of five years in prison and a fine of up to $250,000.  A UAW spokesman declined to discuss what impact the criminal probe may have on the union’s effectiveness as a backer for Biden, especially in key mid-western states crucial to Biden’s bid for the White House.  In 2016, Donald Trump won Michigan, a union stronghold, by fewer than 12,000 votes.

further reading

Ex-UAW boss Williams charged in embezzlement scandal as federal probe continues (Detroit News)

Former International UAW President Charged With Conspiring to Embezzle Union Funds

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