UAW Scandal


In July 2017, federal prosecutors revealed that millions of dollars intended to train workers was instead spent by leadership of the UAW and FCA on air travel, solid-gold pens, a swimming pool, a house and a Ferrari, among other luxuries. Four indictments and four guilty pleas -- so far -- have exposed fraud within the massive U.S. auto manufacturing union and called into question the collective bargaining agreements ratified in 2011 and 2015 with FCA. Will this scandal spread? Here is a timeline and our list of key players.


A timeline of events

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A list of key players

Alphons Iacobelli

Former FCA US labor relations chief. Iacobelli was accused of spending more than $1 million of union funds on luxury items, including his house, pool, outdoor spa and kitchen, a Ferrari and the two gold Montblanc fountain pens costing $37,500 each. He pleaded guilty in January 2018 to two or eight charges related to his involvement in siphoning more than $4.5 millions from the UAW-Chrysler National Training Center, an employee training fund. He awaits sentencing, and is believed to be cooperating with the investigation, as part of his plea deal.

General Holiefield

Former UAW vice president who led the union's Chrysler unit during the automaker's bankruptcy restructuring. Died March 10, 2015. Federal prosecutors allege Holiefield and his wife, Monica Morgan, used union funds to pay off the $262,219.71 mortgage on their Harrison Township, Mich., home, and credit card charges of $200,000 for jewelry, designer clothes and furniture.

Monica Morgan

Widow of General Holiefield and a prominent Detroit photographer. Federal prosecutors initially depicted Morgan as a key player in the scheme. However, in February 2018, she only pleaded guilty to subscribing a false tax return -- one of five charges, including conspiracy to violate the U.S. Labor Relations Act, she was initially indicted on. She did not sign a cooperation agreement as part of her plea deal.

Jerome Durden

Former FCA financial analyst. He pleaded guilty in August, 2017, to one count of conspiracy to defraud the U.S. government, a felony, and one misdemeanor charge of failing to file a tax return for the approximately $4,000 he received in 2013 under the conspiracy. He is believed to be cooperating with prosecutors as part of his plea deal.

Virdell King

A retired UAW Associate Director who was part of national collective bargaining negotiations in 2011 and 2015. King was accused of using a credit card from the UAW-Chrysler National Training Center to buy more than $40,000 worth of clothing, jewelry, luggage and other personal items for herself and other senior UAW officials. She has pleaded guilty to one felony count of conspiracy to violate the Labor Management Relations Act as part of a plea deal. She awaits sentencing, and is believed to be cooperating with federal officials.

Norwood Jewell

Former UAW vice president who headed the most recent round of contract negotiations with FCA US. Jewell's charity -- Making Our Children Smile Foundation -- has been identified by federal prosecutors as one of several to allegedly receive restricted funds. He has not been formally named or charges with any crimes.

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