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GM Cleared from Corruption By Federal Prosecutors

CBS Detroit - As reported by the Detroit News, federal prosecutors told General Motors they would no longer be the target in their investigation of the United Auto Workers.

The investigation goes back to the federal investigation involving bribery and kickback allegations from UAW officials who operated the Center for Human Resources Training Center with GM. The investigation has been ongoing for three years now, and in the process, three UAW officials have pleaded guilty and are awaiting sentencing. One of those who pleaded guilty was former UAW President Joe Ashton.

Credit: Mike Russell | Wikipedia - UAW-GM Center for Human Resources

The U.S.  Attorney's Office notified GM Thursday that it was not a target of a criminal investigation.  According to the Detroit News, this is rare but a welcome relief that the U.S. Attorney's rarely do.

"Recent media reports suggested that General Motors may be a focus of a 'newer front in the years-long criminal investigation' being conducted by the U.S. Attorney's Office in Detroit.," said GM. "This is simply not true. GM is not a target of the government's ongoing investigation. The U.S. Attorney's Office in Detroit officially confirmed this to GM."

This letter also comes on the heels of another huge corruption scandal at the UAW as their former President was recently charged with embezzlement and racketeering with union funds, and tax-dodging according to Car and Driver. He is the 14th person charged in a huge corruption scandal with the UAW. It is alleged Jones stole more than $1 million from the UAW, buying condos, cigar humidors, golf clubs, and other items.

The UAW has had 13 other officials charged in with corruption scandals as well. The letter to GM is welcome news as FIAT Chrysler and the UAW have been in the news recently too as being alleged partners in crime in schemes involving bribes and breaking federal labor laws.

In an interview with the Detroit News, U.S. Attorney Matthew Schneider said seizing control of the UAW through civil racketeering charges remains an option to rooting out corruption in UAW leadership.

© 2020 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Information from The Detroit News and Car and Driver contributed to this report.

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