Former UAW President Gary Jones charged in embezzlement scheme

Source: Detroit News

Federal prosecutors Thursday charged former United Auto Workers President Gary Jones with embezzling more than $1 million, according to a criminal filing that indicates he will plead guilty and cooperate with an investigation that could lead to the government seizing control of one of the nation's most powerful unions.

Jones is the highest-ranking UAW official charged during a years-long crackdown on corruption within the U.S. auto industry that has produced 13 convictions and revealed labor leaders and auto executives broke federal labor laws, stole union funds and received bribes. The investigation has pushed the UAW to the brink of a federal takeover being considered by prosecutors to root out pervasive corruption.

Jones, 63, was charged in a criminal information, which indicates a guilty plea is imminent, following months of increasing pressure from investigators. The investigators are armed with bank records and cooperation from several Jones aides who admitted helping embezzle money from rank-and-file workers that was spent on personal luxuries, including private villas, lavish travel, food, liquor and golf.

“Jones is a guy who contributed to taking down the union and now he may cooperate in a process that saves the union from its leadership,” said Erik Gordon, a University of Michigan business professor.

Read more: https://www.detroitnews.com/story/business/autos/2020/03/05/former-uaw-president-gary-jones-charged-embezzlement-scheme/4940018002/