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Key figure in UAW corruption probe gets shorter sentence

A judge has cut 18 months off a 5 1/2-year prison sentence for a former Fiat Chrysler executive who looted a training center for auto workers

Via AP news wire
Monday 04 January 2021 14:48 EST
UAW Corruption
UAW Corruption (Copyright 2018 The Associated Press. All rights reserved.)

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A judge on Monday cut 18 months off a 5 1/2-year prison sentence for a former Fiat Chrysler executive who with union members looted a training center for auto workers.

Al Iacobelli's sentence reduction was a bit larger than prosecutors had requested in rewarding him for cooperation in an investigation of corruption at the highest levels of the United Auto Workers.

Iacobelli was the head of labor relations at Fiat Chrysler and co-chairman, with a UAW official, of the UAW-Chrysler National Training Center in Detroit He admitted to showering more than $1.5 million in cash and gifts on high-ranking members of the union to gain an advantage during negotiations, including a $262,000 mortgage payoff.

At the same time, Iacobelli was enriching himself with a Ferrari, jewel-encrusted pens, and hundreds of thousands of dollars in improvements and additions at this home, according to the government.

Iacobelli was sentenced to 5 1/2 years in prison in 2018. U.S. District Judge Paul Borman reduced the sentence to four years and recommended home confinement near the end of the term. Prosecutors had asked for a 14-month reduction, while Iacobelli was hoping for a 30-month break.

The government's investigation began at the training center but stretched to other corrupt acts at the UAW. Eleven officials have been convicted, including two former presidents. Investigators found that union dues were used to pay for golf, booze and vacation villas in California.

The UAW recently agreed to have an independent monitor watch union finances and operations.

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