Federal Indictment Alleges Chrysler And UAW Execs Stole Millions From Employee Training Programs

Tyler Durden's picture

For any UAW employees out there who still think their union is anything more than a ponzi scheme designed to effectively tax membership while enriching a few 'bosses' at the top of the pyramid, you should probably take note of a federal indictment that was filed late last week alleging that Chrysler executives conspired with UAW leaders to siphon millions in funds earmarked for employee training to line their own pockets.

As Automotive News points out, as of now, only two Chrysler employees have been charged but the indictment lays out a scenario in which many more charges could be levied against Chrysler employees and other high-ranking UAW officials who may have been involved.?

The indictment, unsealed last week, describes the alleged illegal dealings of former FCA labor relations chief Alphons Iacobelli, deceased UAW Vice President General Holiefield and his widow, Monica Morgan, a prominent Detroit photographer. Morgan will be arraigned in a Detroit federal court today, July 31. Iacobelli will be arraigned Tuesday, Aug. 1.


Federal investigators claim the three were at the center of a conspiracy from 2009 through 2014 that included Iacobelli personally pocketing $1 million and helping funnel $1.2 million from the UAW- Chrysler National Training Center to Holiefield, Morgan and other high-ranking members of the union.


The indictment specifically mentions at least eight unnamed people while vaguely mentioning "other" groups of people. Separately, federal officials announced fraud charges against former FCA financial analyst Jerome Durden, who is accused of creating false tax returns to hide payments to Holiefield, Iacobelli and other beneficiaries who were not identified.


"More could be charged," said Peter Henning, a former federal prosecutor in Washington, D.C., and professor at Wayne State University Law School. Henning said it's typical in investigations such as these for additional witnesses, informants and co-conspirators to be named after the initial round of arraignments.

So, what did they buy with their embezzled funds?

Alphons Iacobelli, Chrysler's Labor Relations Chief, apparently really needed a brand new Ferrari and $100,000 pool in his back yard...

A $350,000 Ferrari 458 Spider

• Lease on a private jet

• 2 limited-edition Mont Blanc pens costing $37,500 each

A $96,000 swimming pool, outdoor kitchen and outdoor spa at his home in Rochester Hills, Mich.

• $73,000 in landscaping

More than $300,000 in personal credit card expenses

• Paid off a relative’s student loan for $44,491

...looks like it all turned out really nice.



Meanwhile, UAW Vice President General Holiefield and his widow, Monica Morgan, invested their stolen loot in jewelry, designer clothes and expensive vacations.

• Paid off the $262,219.71 mortgage on their Harrison Township, Mich., home. Less than a year later, Morgan took out a new mortgage for $130,000.

• Credit card charges of $200,000 for jewelry, designer clothes and furniture

• $30,000 in airfare for San Diego, Miami, Las Vegas and Los Angeles

4 nights at the Beverly Hills Hotel for $3,100 per night



But federal investigators appear to think the situation involved more than two people. In addition to the eight unnamed FCA executives or UAW leaders in the indictment, "other" groups of people are referenced as well.

The document says Bob King, who was UAW president from June 2010 to June 2014, told Iacobelli and Holiefield in 2011 that they could "go to jail" for giving union and charity business to Morgan, Holiefield's girlfriend at the time. They married in 2012.


King, according to the indictment, instructed them to stop giving business to Morgan. The three allegedly reacted to King's warning by setting up a new company in early 2012, the indictment said.


Other unnamed people, according to the indictment, were responsible for approving the illegal spending.


"It's quite possible some of the unnamed people in the indictment are going to cooperate and provide information and testimony," Henning said.

Of course, the UAW was 'blindsided' by these latest corruption allegations.

"The UAW is appalled at the allegations contained in the Department of Justice’s (DOJ) indictment, which constitute a betrayal of trust by a former vice president of our union. The UAW has zero tolerance for corruption or wrongdoing of this kind at any level," according to the statement. "The UAW had absolutely no knowledge of the fraudulent activities detailed in this indictment until they were brought to our attention by the government. We nevertheless take responsibility for not doing more to exert our influence over the governance policies of the (UAW-Chrysler National Training Center), which might have uncovered this corruption sooner."


Fiat Chrysler issued a statement saying the Auburn Hills automaker has cooperated fully with the U.S. Attorney's Office and "intends to pursue all potential legal remedies against Mr. Iacobelli and any other culpable parties."


"FCA US and the UAW were the victims of malfeasance by certain of their respective employees that held roles at the National Training Center (NTC), an independent legal entity," the company said in a statement. "These egregious acts were neither known to nor sanctioned by FCA US. "

We simply can't imagine why the OEMs can't seem to turn a profit on their U.S. plants...

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Joebloinvestor's picture

So much for "zero" tolerance.

Stackers's picture

So if they have zero tolerance for corruption of "this kind". I wonder what kind of corruption they do have tolerance for ?

Jim Sampson's picture

I'm sure they learned their lessons... OMG LOOK!  SOME KID IS SMOKING POT!  SHOOT HIM!!!

Arnold's picture

when my UAW leadership rented us a hall in Elmira and showed us Union pukes breaking Ford windows, and fed us hot dogs, it had nothing to do with the contract they negotiated that eliminated me, and kept them.

Actually, i held back the impulse to smack Union Leadership with my Union Issue axe handle.

Arnold's picture

That would be at SMCC, Horseheads, a Hillary creation.

Creepy_Azz_Crackaah's picture

WHAT?!?!?! Union leadership corrupt?


Completely shocked, I tell you.

No doubt the gubmint unions are just as bad but they take their income from people via threat of gubmint violence.

NidStyles's picture

Take a look at that hungry young Black fellow in that image and tell me that he's not trustworthy...


Come on, do it.


What surprises me, is that they are going after the UAW but not these other monopolies, Alphabet, Amazon, etc....

Delving Eye's picture

Another reason I'll never buy a Chrysler. Inadequate training = inadequate cars

847328_3527's picture

"...siphoning off millions..."


It be fair since surely they're entitled to it, right?


Taint Boil's picture

I worked at the Sterling Heights Assembly Plant (SHAP) as a maintenance manager for a short period and I actually saw that POS speak to all the Tyrones and Latisheas at some stupid rally ... what a joke, I had to walk away ... literally couldn't take it. Thought I was at the Detroit Zoo gorilla exhibit at banana feeding time. ..... if you get my drift.

I would never buy a Chrysler product ..... you can't believe what I saw. Oh and the plant manager at the time dressed like a pimp going to court .... jaw would drop to the floor when I saw that idiot.

Best day in my life was quitting that job .... couldn't make it past a year.


booboo's picture

Obama may be made of Teflon but his cronies look like easy targets and Justice may start running rough shod over their asses, I am sure it's a target rich environment.

Nobody For President's picture

Well, I'm appaleld I tell you, appalled. I thought itl was all part of the bail-out program.

El Oregonian's picture

"FCA financial analyst Jerome Durden, who is accused of creating false tax returns..."

Any relation Tyler? LOL

jcaz's picture

Bob King- still pimpin'.....

Where be yo hat, Bob?  Playa.....

GUS100CORRINA's picture

Federal Indictment Alleges Chrysler And UAW Execs Stole Millions From Employee Training Programs

My response: ROFL!!!!!!!!!


You gotta love socialism!!!!! Just ask Mr. Marxist himself, Bernie !the crook) Sanders!!!

Yeh ... that single payer healthcare bill looks like the right medicine for America. NOT!!!!!!!!!!!!

itburnswhenitheta's picture

Basically all of the other types of corruption

chrsn's picture

I'm completely appalled . . . that an embezzler would get such a cheeseball McMansion with his stolen money

Arnold's picture

An Island retreat, like Bernie, at least.

land_of_the_few's picture

It's impressive but still peanuts compares to what the top oligarchs are siphoning out of the economy. Millions huh. Whatta small-time loser.

And, some justice will come this guy's way. The oligarchs and crooked pols ... tumbleweed.

Miss Expectations's picture

...cheeseball landscaping always includes inappropriate use of retaining wall blocks.

Donald J. Trump's picture

A picture of the nog with the headline about stealing.  Dat's rayciss.

Lucky Leprachaun's picture

Letting a coon near the loot always ends up the same way. Their 'principle' seems to be 'if it can be stolen then what are you waiting for?'

And who the fuck would Christen a child 'General'?

shovelhead's picture

Because Commodore might sound a bit pretentious?

any_mouse's picture

The coon needed a complicit wop, Alphons Iacobelli, to pull the scam.

Unless either of the two are crypto, the kikes skate on this affair.

Vatican_cameo's picture


Here's a News Flash.  All those Union bastards have been fleecing everyone for a long, long time.

wherewasi's picture

No way!   I'm shocked.   Hahahahahahahahah

peopledontwanttruth's picture

When it is a question of money, everybody is of the same religion.


shovelhead's picture

Wouldn't you really rather buy a Buick?

Twee Surgeon's picture

No Shit !? Who'da thunk it ? I thought those Union guys were saintly and looking out for the little guy, the virgin snow would not melt in their mouthes. I guess I was wrong again. Drat.

itstippy's picture

See?  The training fund worked.  Everyone learned a valuable lesson, much more valuable than the "sensitivity training" the funds were earmarked for.  

Doom Porn Star's picture

A decent aluminum baseball bat would have accomplished as much; but, point conceded...

Chippewa Partners's picture

Same as it ever was.......union turds don't change .........follow the money and look what happens........

A. Boaty's picture

Who needs training? Let'em dig ditches.

wherewasi's picture

Indeed.... looks like the Union leadership has already graduated.

Pollygotacracker's picture

There is no end to the looting, fleecing, thieving, and stealing. Hell isn't half full. 

Arnold's picture

Only in the movies do pigs heard sheep.

Oh, and Unions.

Omen IV's picture

it would  be nice if the corporations, unions and federal, state and local governments accelerated the looting so we can get to collapse faster


Im tired of waiting

Doom Porn Star's picture

I posit that no matter how many go to Hell it will never be too full to accept just as many as are already there.

Further, you may substitute the word 'History' for Hell in the above and it still works, too!

any_mouse's picture

Side story. General Holiefield was at the kitchen table cleaning his .45 Desert Eagle after a trip to an indoor range. He was clearing the weapon by placing his finger on the trigger and shot Monica Morgan in the abdomen. He was demonstrating to friends how to clean the weapon.

Blacks and Guns.


Nunyadambizness's picture

The man is obviously a genius.

Bunghole's picture

.45 Desert Eagle says it all.

Did he get the gold plated edition or just the schlomo non-Jew variant


Arnold's picture

I have a DE and several barrel lengths.
It is too much for me to shoot with accuracy in .44 mag.
Step up pissers.

Blazing in BC's picture

Well he avoided getting charged then, but this time not so lucky

azusgm's picture

Well, he may be charged but his wife is referred to as his widow. Skates again.

whatswhat1@yahoo.com's picture

.50 Desert Eagle is the most powerful handgun I have ever fired.  The owner of the indoor range ran upstairs and yelled "no firing of elephant guns on this range".  The muzzle flash was six feet long by eighteen in diameter.  If Monica Morgan was hit dead on in the abdomen she would have been airlifted to the nearest wall with a hole in her back the size of a garbage can lid.  No one could survive a direct hit to the abdomen.  She must have gotten lucky, so to speak, getting mostly a flesh wound.  Her husband, General Holiefield (not a real general) is an idiot.

NoPension's picture

He was holding it sideways, "hood style" ,so the aim was a little off.

That is the proper way to clear a gun in kneegrowville, though.

CNONC's picture

The black sheriff of Clayton county Georgia did the same thing. Shot his girlfriend while "demonstrating law enforcement tactics." At about 5'1", he is known as the "walking small" sheriff.