STLA Stellantis NV

By Nora Naughton 

A former top aide at the United Auto Workers union pleaded guilty Wednesday to conspiracy charges, the latest development in a federal investigation into corruption within the leadership ranks that recently expanded to current and former UAW presidents.

Michael Grimes, a retired official who was assigned to the UAW's General Motors Co. division and once served as an administrative assistant to a union vice president, stood accused of wire fraud and money laundering. He entered into a plea deal with federal prosecutors for a lesser sentence. The charges carry a maximum of 20 years in prison.

Mr. Grimes is the first senior official from the UAW's GM department to be charged in the ongoing criminal probe, which first became public in 2017 and has largely focused on financial misconduct involving executives at Fiat Chrysler Automobiles NV and their union counterparts.

Federal prosecutors say Mr. Grimes received about $2 million in kickbacks and bribes from vendors hired to provide clothing and other promotional accessories to the UAW's training center for GM workers. In one instance, they say he used his power as a union official to coerce a watch vendor to pay $60,000 on his mortgage, according to court documents filed last month.

Last week, federal agents searched the homes of UAW President Gary Jones, the union's highest-ranking official, and his predecessor Dennis Williams. Neither man has been charged with a crime.

(END) Dow Jones Newswires

September 04, 2019 13:04 ET (17:04 GMT)

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