The Warner Cable Arena in Charlotte, North Carolina, on September 5, 2012 in the second day of the Democratic National Convention (DNC).
Mladin Antonov | AFP | Getty Images
DETROIT – Fiat Chrysler executives and United Auto Workers leaders has become involved in General Motors.
Michael Grimes, retired senior official with the union's GM division , has been charged with wire fraud and money laundering for allegedly receiving $ 2 million in kickbacks from UAW vendors.
Grimes' plea at a hearing Sept. 4 at Ann Arbor would be a major milestone in the Department of Justice of America's largest unions.
However, the allegations against Grimes differ from those of the Fiat Chrysler. [1
There were no allegations that the UAW's collective bargaining with GM, as there was with the Italian American automaker.
In a statement, GM called the alleged conduct of Grimes and other union officials "deeply disturbing" and said it is "fully cooperating" with the investigation.
"These serious allegations represent a stunning abuse of power and trust," GM said in a statement. They represent – and to steal CHR funds invested by GM for training our hourly employees. "
The charges arrive at inopportune time for the union and the Big Three Detroit automakers, who are signing new contracts for 158,000 UAW workers. The expansion of the investigation could make the contracts more difficult, according to officials.
Kristin Dziczek, Vice President of Industry, Laboratory and Economics at the Center for. "This is because of the trust in leadership," said Kristin Dziczek Automotive Research at Ann Arbor.
When the federal investigation was made public in July 2017, it focused on a focused training center between the UAW and Fiat Chrysler. GM and Ford Motor, which has previously been confirmed cooperating with the investigation.
Fiat Chrysler executives, including former.
The sample has been linked to the conviction of the UAW and three Fiat Chrysler executives
Grimes, who faces up to 20 years in prison, was one of Federal officials, in court documents, unsealed Aug. 14, accuse the
Grimes' attorney, Michael P. Manley, of the United States. did not respond for comment.
Former UAW vice president Joe Ashton speaks during a GM announcement at a Spring Hill, Tenn. in
While the court documents did not name the two other union officials, The Detroit News, citing sources, identified them UAW Vice President Joe Ashton and One of his top lieutenants, Jeff Pietrzyk.
Ashton – the first UAW Leader on GM's board – resigned from the board in December 2017 after being reportedly linked to the investigation. He has not been charged.
GM declined to comment on the circumstances surrounding his resignation. Ashton did not return a phone message seeking comment.
'Shocking and absolutely disgraceful'
The charges against Grimes, who retired from the union in 2018, give credence to Cindy Estrada, ashton , what of interest to federal prosecutors. Grimes served as Estrada's top assistant.
Estrada, who started as a vice president in 2010, has not been charged with any crimes or named in any court filing with the corruption probe.
UAW Vice President Cindy Estrada speaks during an event at General Motors' assembly plans in Flint, Mich. in August 2015.
A spokesman for the UAW is hereby declaring, "Grimes is benefiting only himself, not the UAW membership, and should be fully prosecuted to the extent of the law. "
A separate statement on behalf of the union's board, which includes Estrada, called Grimes' alleged actions," shocking and absolutely disgraceful. " It also contravenes corruption, including adopting a "strict three-bid process" for vendors of the union and the joint training centers.