Feds charge 16th person in UAW corruption probe following internal union audit

DETROIT — Federal prosecutors on Wednesday charged Tim Edmunds, a former UAW official at Local 412 in Warren, Mich., with embezzling millions of dollars and spending it on "gambling, guns and cars," nearly two months after an internal union audit discovered the improper spending.

Edmunds is the 16th person charged in the ongoing scandal and first since a court-appointed monitor was installed this year to oversee the union as part of a corruption case settlement.

UAW President Ray Curry, when he was secretary-treasurer, instituted a new internal auditing process in an attempt to reform the union from within. In September, the union announced those auditors had discovered $2 million in improper expenditures at Local 412 and had suspended the financial secretary.
 

Prosecutors on Wednesday alleged that Edmunds, who served as financial secretary, "systemically drained" the local's accounts of $2 million by using business credit cards for personal purchases, transferring cash to his personal accounts and cashing Local 412 checks into his personal accounts.

"Once Edmunds converted the funds to his own personal use, he used the money to gamble, purchase luxury clothing, high-end automobiles and firearms," prosecutors allege.

The vehicles included a $74,000 2016 Jeep Grand Cherokee SRT, a $96,000 2020 Jeep Grand Cherokee Trackhawk and a $76,000 2021 Dodge Durango, among others. Prosecutors allege Edmunds purchased roughly 10 firearms ranging in price from $500 to $2,000.

The feds say UAW auditors discovered he made more than $30,000 in unauthorized ATM transactions at downtown Detroit's Greektown Casino from 2018 to 2020 using a Local 412 credit card. A subsequent investigation found he put more than $16 million in play at the casino from 2016 to 2020.

A UAW spokesman on Wednesday referred to a September statement issued after the union discovered the improper spending.

"We have put together a very enhanced auditing system and while we are outraged that dues were embezzled, we are encouraged that the UAW auditors themselves discovered and reported this misuse of union dues through our new auditing guidelines," UAW Secretary-Treasurer Frank Stuglin said then. "We are confident that these new guidelines will identify any similar activity in our union and serve as a deterrent to prevent such activity in the future."

The latest charges call into question how long the corruption investigation could linger. It was largely wrapped up following the settlement with the union that involved a six-year period of oversight.

To date, prosecutors have charged 16 individuals. FCA US, now Stellantis, also pleaded guilty this year to charges that the company violated the Taft-Hartley Act.

The Detroit News reported the charges against Edmunds earlier Wednesday.