Ex-Fiat Chrysler Exec Pleads Guilty in Union Payoff Scheme

Labor News

Photo: Paul Sancya, AP: In this July 25, 2011 file photo, Al Iacobelli, former Vice President Employee Relations, Chrysler Group LLC, speaks at Chrysler Group LLC headquarters in Auburn Hills, Michigan. Iacobelli who handled labor relations for the company has pleaded guilty to showering more than $1.5 million in cash and gifts on high-ranking members of the United Auto Workers. Iacobelli admits that he was trying to gain an advantage for Fiat Chrysler during his relationship with the union. He pleaded guilty Monday January 22, 2018 to conspiracy and a tax crime and faces eight years in federal prison.

Reprinted from The San Francisco Chronicle by Ed White on January 22, 2017.

A former Fiat Chrysler executive pleaded guilty Monday to showering more than $1.5 million in cash and gifts on high-ranking members of the United Auto Workers, admitting he turned the budget of a company-sponsored training center into a slush fund to curry favor with union officials.

Al Iacobelli said a key beneficiary was General Holiefield, a UAW vice president who was responsible for negotiating with Fiat Chrysler on behalf of the union. A $262,000 mortgage on his suburban Detroit home was paid off in 2014 with a check from the training center.

Iacobelli pleaded guilty to conspiracy and a tax crime and likely faces eight years in federal prison. He failed to report $861,000 in money taken from the training center in 2014.

“Fiat Chrysler’s most senior labor negotiator colluded with top UAW leaders for many years to illegally line UAW officials’ pockets,” U.S. Attorney Matthew Schneider said.

Holiefield died in 2015, but his wife, Monica Morgan, is charged in the case.  …

SF Chronicle 1/22

About Jeffrey Burman 3201 Articles
Jeff Burman represents assistant editors on the Guild’s Board of Directors. He can be reached at jeffrey.s.burman.57@gmail.com.

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