UAW receives $1.1M for controversial Mich. lake house

The luxurious lakefront house was being built for former President Dennis Williams, who was sentenced to prison in the union's embezzlement scandal.

July 28, 2021 08:19 AM

Wendy Guzman

Bloomberg

Williams in May was sentenced to 21 months in prison for being a key ringleader in the union's embezzlement scandal.

DETROIT — The UAW received $1.1 million for the purchase of a controversial lakefront house in northern Michigan built for former President Dennis Williams, The Associated Press reported this week.

Williams in May was sentenced to 21 months in prison for being a key ringleader in the union's embezzlement scandal along with his successor, Gary Jones. The multiyear federal investigation resulted in 15 convictions.

New UAW President Ray Curry wrote a note to members Tuesday that the property's sale was finalized July 23.

The property, Cabin 4 at the UAW conference center on Black Lake, was listed at $1.3 million and is located in Cheboygan County.

UAW 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.

Curry said the money will go to the union's general fund.

"This sale rights a wrong from the past, and I want each and every one of you to know that we continue to implement ethics reforms throughout the organization to ensure that the abuses of the past can never happen again," Curry said in his note.

The sale was delayed by the pandemic, easement issues and a federal affidavit that said the house was "subject to forfeiture to the United States," because of law violations related to the scandal.

Union spokesman Brian Rothenberg said the Justice Department dropped its objections and only wanted to find out who was buying the house.