UAW UNDER INVESTIGATION. FBI Raids UAW President’s Home – By Todd Horwitz, Bubba Trading.

 

FBI Raids UAW President’s Home

Federal agents searched the homes of the United Auto Workers’ current and former presidents and a Northern Michigan conference center used by union leaders, widening a multiyear criminal investigation into alleged corruption in the UAW’s top ranks. 

The FBI executed search warrants Wednesday at the Michigan home of Gary Jones, who took over as UAW president last year, and the California residence of his predecessor, Dennis Williams, according to a bureau spokeswoman. Neither man has been charged with any crime. 

The searches mark a significant elevation in the federal probe, which has already led to convictions for eight of nine individuals charged in the investigation. They also come as the union negotiates new four-year labor contracts with the Detroit car companies.

In March, a former vice president of the union, Norwood Jewell, was charged with conspiracy in connection to an alleged conspiracy with Fiat Chrysler executives to buy meals and other perks with the automaker’s money, according to the Associated Press. Another union official was sentenced in December to a year in prison for scheming to strip millions from a Detroit worker training center financed by the automaker. Jones said in March that he was “deeply saddened and irritated” by the corruption scandal.

Mr. Jones, 62 years old, first joined the UAW as a worker at a Ford Motor Co. glass plant in Oklahoma. He rose through the union’s ranks, serving as a regional director in Missouri and a chief accountant for the UAW’s international operations.

The UAW in a statement said Mr. Jones has cooperated fully in the federal investigation and said the use of search warrants was unnecessary. “The UAW has voluntarily responded to every request the government has made throughout the course of its investigation, produced literally hundreds of thousands of documents and other materials to the government, and most importantly, when wrongdoing has been discovered, we have taken strong action to address it,” the union said.

Keep those stops tight
Todd “Bubba” Horwitz

Financial Markets and Political Commentary
 

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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.