Auto executive accused of labor union payoffs
DETROIT — A former Fiat Chrysler executive was charged Wednesday with looting a training center for blue-collar workers by giving $1.2 million through a variety of ways to a UAW leader, his wife and other senior union officials.
Al Iacobelli was indicted in an alleged conspiracy involving United Auto Workers vice president General Holiefield and Holiefield’s wife, Monica Morgan. Holiefield died in 2015.
The indictment describes a multiyear scheme to reward Holiefield and Morgan with firstclass travel, designer clothing and jewelry. A $262,000 mortgage on their home in suburban Detroit was paid off, according to the grand jury.
Iacobelli treated himself to more than $350,000 for a Ferrari, the government alleged.
The “indictment exposes a disturbing criminal collaboration that was ongoing for years between high ranking officials of FCA and the UAW,” said David Gelios, head of the FBI in Detroit. FCA is Fiat Chrysler Automobiles.
In June 2015, Iacobelli suddenly departed from Fiat Chrysler with little explanation. He was the company’s North American labor relations chief and head of Mexico human resources. Holiefield was responsible for negotiating with Fiat Chrysler on behalf of the UAW.
The allegations call “into question the integrity of contracts negotiated during the course of this criminal conspiracy,” Gelios said.
The government said the money came from the UAW-Chrysler National Training Center in Detroit, which was created to retrain autoworkers. Fiat Chrysler made annual payments of $13 million to $28 million to the center, from 2009 to 2014.
Morgan and Iacobelli are charged with conspiracy and tax crimes. Iacobelli is also charged with making illegal payments to a union official.
Morgan’s lawyer declined to comment. A message seeking comment was left for Iacobelli’s lawyer.
In separate statements, Fiat Chrysler and the UAW said they were unaware of the alleged scheme while it was unfolding. The automaker said it got rid of Iacobelli and Jerome Durden, who worked in finance, after “obtaining credible evidence of wrongdoing” in 2015. Durden was also charged.
Iacobelli landed another job — at rival General Motors as executive director of labor relations. GM spokesman Tom Wickham said he didn’t know his status after the indictment.
The indictment said $40,000 was transferred from the training center to complete Iacobelli’s purchase of two solid gold Mont Blanc pens.
He also is accused of taking thousands more to install a pool, outdoor kitchen, spa and landscaping at his home in Rochester Hills, Mich.
Durden reported that he, Iacobelli and others set up a liberal policy for credit cards as part of an effort to keep union officials “fat, dumb and happy,” according to the indictment.