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Another Guilty Plea in UAW Corruption Probe
Another former United Auto Workers union official, this one from the union’s General Motors department, has pleaded guilty to money laundering and wire fraud.
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Another former United Auto Workers union official, this one from the union’s General Motors department, has pleaded guilty to money laundering and wire fraud.
The plead by Michael Grimes in a U.S. District Court in Michigan, is the latest in a federal investigation into kickbacks, bribes and other illegal activity between the union and the companies whose hourly workers it represents. The charges against Grimes were unsealed two weeks ago.
The probe began more than two years ago. It initially focused on a joint worker training center operated by the UAW and Fiat Chrysler Automobiles NV. It has since expanded to other current or former UAW executives connected with the union’s GM department.
Federal prosecutors say Grimes had conspired since at least 2006 with two unidentified senior UAW officials to pressure a GM vendor into paying hefty kickbacks on contracts to supply jackets and backpacks for union members.
A contrite Grimes acknowledges his transgressions and regrets damaging the UAW’s reputation, according to his lawyer. Grimes faces as many as 20 years in prison.
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