Former UAW official sentenced to 28 months in corruption scandal
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February 19, 2020 02:05 PM

Former UAW official sentenced to 28 months in corruption scandal

Vince Bond Jr.
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    VINCE BOND JR.
    Former UAW official Michael Grimes, left, speaks to reporters after his sentencing in U.S. District Court in Detroit.

    DETROIT — Michael Grimes, who worked as an assistant in the UAW's General Motors department, was sentenced Wednesday in U.S. District Court here to 28 months in prison for wire fraud and money laundering.

    Government prosecutors filed a motion moving away from the initial recommended sentencing guideline range of 46 to 57 months. They asked the court for a 24-month sentence based on Grimes' cooperation, but U.S. District Judge Bernard A. Friedman went with 28 months to send a stronger message.

    Grimes is among 12 people who have pleaded guilty in an ongoing federal investigation.

    U.S. prosecutors say Grimes conspired with two unidentified senior UAW officials on multiple schemes going back to at least 2006. Grimes, according to prosecutors, pressured a vendor of custom UAW logo products into giving him a $60,000 mortgage and periodic bribes totaling nearly $900,000.

    The prosecution's criminal information against Grimes says the trio also arranged for the same vendor to sell the joint UAW-GM training center 50,000 "Team UAW-GM" jackets for $6 million in 2011 and 55,000 backpacks for $5.8 million in 2016. Grimes got the vendor to give him more than $1 million in kickbacks for those orders, according to the prosecution.

    Grimes used bribe payments to buy, among other things, a 2017 Jeep Wrangler Unlimited and property in Florida.

    “It is imperative that the UAW leadership continues to be held accountable to their fiduciary duties and responsibilities,” U.S. Attorney Matthew Schneider said in a statement. “Today’s sentence represents another step forward in our efforts to target and prosecute corrupt UAW leaders who place their drive for personal enrichment ahead of the mission of the union.”

    Grimes, who described himself as a third-generation UAW member, asked God for forgiveness and apologized to the union during the proceedings. He emphasized during his statement in court that he cooperated with the investigation.

    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.

    Grimes said he worked hard for UAW members through the years and wishes he could take back what he did.

    Grimes' attorney, Michael Manley, said his client accepted bribes from a vendor but didn't embezzle funds from the union. Manley admitted that Grimes left a stain on the UAW and that there was no justification for his actions.

    In a statement, the UAW said Grimes violated his oath of office and betrayed the trust of the union's members.

    "That is why on January 31, 2019, the UAW International Executive Board filed its own action against Mr. Grimes, taking away his membership in the UAW," the statement said. "While our union is moving forward, we will never forget the costly lessons from our past."

    Michael Grimes, who worked as an assistant in the #UAW's General Motors department, was sentenced to 28 months in prison today in U.S. District Court in Detroit for wire fraud and money laundering charges. pic.twitter.com/OrHKncMtLr

    — Vince Bond Jr. (@VinceBond86) February 19, 2020
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