Ex-UAW chief Williams charged in corruption probe
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August 27, 2020 11:47 AM

Ex-UAW chief Williams charged in corruption probe

Michael Martinez
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    Williams: Went out to smoke — and wait for agents
    Bloomberg

    Williams had been implicated in the corruption probe several months ago.

    DETROIT -- Federal prosecutors on Thursday charged ex-UAW President Dennis Williams, who led one of the nation's most powerful labor unions from 2014 to 2018, with conspiring to embezzle funds from rank-and-file workers for nearly a decade.

    Court documents say Williams and others spent hundreds of thousands of member dollars on trips to Palm Springs, Calif., golf outings, fancy dinners and other luxuries.

    Williams, 67, becomes the 15th person charged in the ongoing corruption scandal. He's also the second former union president to be charged; his successor, Gary Jones, pleaded guilty to embezzlement and racketeering charges in June and awaits sentencing.

    Williams was charged in a criminal information, which means he's likely to plead guilty. He faces a maximum of five years in prison and a fine of up to $250,000.

    Williams information
    Williams information >

    "The charges today are further steps forward in our relentless effort to ensure that the over 400,000 men and women of the UAW have honest and ethical leadership," U.S. Attorney Matthew Schneider said in a statement. "The UAW's members deserve leaders dedicated to serving the members and their families, not serving themselves."

    Steven M. D'Antuono, special agent in charge of the Detroit field office, said in a statement that Williams was supposed to be a trusted figure as president but that he "trampled on that trust and used his position and influence to advocate for his own personal benefit. Today, Williams begins to face the consequences of his choice to break that trust and fiduciary responsibility."

    At attorney for Williams could not be reached for comment.

    UAW ScandalUAW scandal timeline and key figures: In charges filed since July 2017, federal prosecutors have revealed that millions of dollars intended to train workers was instead spent by some UAW leaders on assorted luxuries. The charges have exposed fraud within the massive U.S. auto manufacturing union. Will this scandal spread? Here is a timeline and our list of key players.

    Federal officials last year raided the homes of Jones, Williams and other UAW officials. Williams was reportedly handcuffed and held at gunpoint as agents searched his California home, according to The Detroit News.

    The UAW this month said it would stop paying Williams' legal fees related to the federal government's corruption probe and in June said he had paid back more than $50,000 in travel expenses deemed "not appropriate."

    The union has also sold a northern Michigan cottage built for Williams partly with nonunion labor.

    Williams rose to the union’s most powerful position in 2014 hoping to bring a disciplined, business-oriented mindset to the union. He restructured the UAW’s regions, cut costs, instituted budgets by departments and balanced the union’s books. UAW membership rose by 27,405 from 2014 to 2017, the last full year he was in office.

    But during that time, prosecutors say, Williams was living large on his members’ dime. Among the alleged indiscretions, Williams racked up tens of thousands of dollars staying at a villa in Palm Springs months at a time and paid with UAW funds.

    He also allegedly accepted a portion of $6,000 in golf certificates, given out by Jones, and paid for with UAW money. The feds also say he accepted a portion of cigars ordered by Jones.  

    The UAW, in a statement, said it is aware of the charges.

    “Any violation of Mr. Williams' oath of office and his responsibility to oversee our members and their sacred dues money, should rightfully face criminal penalty,” spokesman Brian Rothenberg said in a statement. “Today’s development is a sad day for UAW members. But it is also a humbling day of truth and justice demonstrating that no one is above the law, regardless of their position.”

    Rothenberg stressed reform efforts by current President Rory Gamble. Gamble recently met with Schneider to discuss further changes aimed at rooting out corruption.

    “As we have committed to our membership, when the UAW finds there has been wrongdoing, we will take all available actions to hold that person accountable, no matter how high the office they hold,” Rothenberg said. “Let us begin to turn the page to a better union -- but let us never forget the painful lessons of the past.”

    Talks to reform the UAW are going well but a federal takeover remains an option, Schneider said.

    Federal and union officials are "actively talking" and "making great progress," he told Reuters in an interview.

    "All options are still on the table and they will be until we can resolve this," he said.

    Reuters contributed to this report.

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