DETROIT -- Former Fiat Chrysler labor relations chief Alphons Iacobelli, who feds believe to be at the center of a scandal involving individuals at the automaker and the UAW siphoning millions from an employee training fund, was released Tuesday on a $10,000 bond following his arraignment.
Iacobelli, 57, was indicted last week on several charges of illegal dealings involving deceased UAW Vice President General Holiefield and his wife, Monica Morgan, a prominent Detroit photographer who had a plea of not guilty enterd on her behalf and was released on a $10,000 bond Monday following her arraignment.
Iacobelli faces one count of conspiracy to violate the Labor Management Relations Act, two counts of paying and delivering prohibited money and things of value to a union official, one count of conspiracy to defraud the United States and four counts of subscribing a false tax return.
Morgan faces one count of conspiracy to violate the Labor Management Relations Act, one count of willful failure to file a tax return and three counts of subscribing a false tax return.
Iacobelli, who had a not guilty plea entered on his behalf, sat with his wife during the Tuesday afternoon proceeding. He declined to answer questions outside of the federal courthouse afterward.
Feds accuse Iacobelli of taking $1 million for personal benefit and helping funnel $1.2 million from the UAW-Chrysler National Training Center to Holiefield, Morgan and other high-ranking members of the union.
Prosecutors allege Iacobelli used the money to clear $300,000 in credit card expenses, pay off $44,491 in student loans for a relative and lease a private jet. Prominent among the litany of luxury purchases was a $350,000 Ferrari 458 Spider, and the purchase of two limited-edition Montblanc pens, priced at more than $37,500 each.
Iacobelli also allegedly spent union funds renovating his home in Rochester Hills, Mich., installing a $96,000 swimming pool, an outdoor kitchen and spa, and an additional $73,000 on landscaping, according to a 42-page indictment from the U.S. Attorney's Office.
Federal investigators claim Morgan, Iacobelli and Holiefield were at the center of the conspiracy from 2009 through 2014. Before an abrupt retirement in 2015, he worked with Holiefield as his main negotiating partner at the union.
The charges are the latest in a series of legal issues at FCA, which is currently under investigation for potential environmental, safety and securities law violations.
Iacobelli was most recently hired by General Motors in January 2016 as executive director of labor relations. The company has refused to confirm if Iacobelli remains an employee.
Others who are not identified in the indictment are expected to be charged in the case, including several FCA and union officials. Those who are referenced in the indictment, but remain unnamed, are accused of playing a part in the pay-off scheme.
Michael Wayland contributed to this report.