Please ensure Javascript is enabled for purposes of website accessibility

Former UAW President Pleads Guilty to Embezzlement and Racketeering as Corruption Probe Continues

By John Bromels – Jun 3, 2020 at 5:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

United Auto Workers' Gary Jones now faces up to 5 years in prison.

Former United Auto Workers president Gary Jones pleaded guilty in federal court on Wednesday to embezzlement of union funds and racketeering. He has also agreed to cooperate with investigators. As part of a plea deal worked out with prosecutors, Jones faces up to five years in prison and a $250,000 fine.

The plea was the latest development in a yearslong investigation into corruption among members of UAW leadership and executives at Fiat Chrysler (FCAU). Automakers Ford (F -2.35%) and General Motors (GM -3.52%) have announced they are cooperating with the investigation. 

A gavel rests on a bunch of $100 bills.

Image source: Getty Images.

A lavish lifestyle

The probe was first announced in July 2017, and centered around a training center that was jointly operated by Chrysler and the UAW. It rapidly expanded into a broad corruption probe. On August 28, 2019, Jones' home was raided by the FBI. Then, on November 20, Jones resigned his position with the UAW. On March 5, unsealed court documents revealed he was being charged with embezzling more than $1 million in union funds to finance a "lavish lifestyle" that included expensive cigars, liquor, and trips.

Jones has become the 14th person to plead guilty in the case, joining three Fiat Chrysler executives and 10 former union officials, including Vice Presidents Joe Ashton and Norwood Jewell. Ashton was the first UAW leader to sit on GM's board; he resigned that position in December 2017 after being implicated in the scandal. Prosecutors have informed GM that the company is not currently a target of the probe.

The probe is still ongoing, and is expected to lead to further charges. 

John Bromels owns shares of Ford. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
F
$11.20 (-2.35%) $0.27
General Motors Company Stock Quote
General Motors Company
GM
$32.09 (-3.52%) $-1.17
Fiat Chrysler Automobiles N.V. Stock Quote
Fiat Chrysler Automobiles N.V.
FCAU

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.