News

Actions

Former senior UAW official pleads guilty to conspiracy with FCA execs

CORP-Digital-Default-Image-1280x720-WXYZ.png
Posted at 3:24 PM, Jul 23, 2018
and last updated 2018-07-23 15:24:05-04

A former senior UAW official in the union's Chrysler department pleaded guilty on Monday to conspiracy charges for conspiring with other UAW officials and FCA executives to make illegal payments.

Nancy Johnson, 57, accepted and arranged for illegal payments from FCA executives to high-level UAW officials between 2014 and 2016. She was facing five counts of corruption charges in a scandal focused on high-ranked UAW officials who used training funds to enjoy a luxury lifestyle.

Johnson was charged in March 2018 in an indictment with three other defendants. It alleged that Johnson made lavish expenses with money intended for the UAW-Chrysler National Training Center. The expenses include:

  • A $2,382 first-class plane ticket to California 
  • $4,587 spent at a steakhouse in California
  • More than $1,800 at a golf resort in Palm Springs
  • More than $6,900 at the Renaissance Resort and Spa in Palm Springs,
  • $1,160 for a pair of Christian Louboutin shoes

During her plea hearing, she admitted that she participated in a conspiracy that existed at least from 2009 through 2016.

Between 2014 and 2016, 100 percent of the UAW salaries of a large number of union officials and employees were paid for by FCA through the NTC.

Johnson is the seventh defendant ot plead guilty in connection to the ongoing investigation involving the UAW and FCA. Others who pleaded guilty include: former FCA Vice President for Employee Relations Alphons Iacobelli, former FCA Financial Analyst Jerome Durden, former Director of FCA’s Employee Relations Department Michael Brown, former senior UAW officials Virdell King and Keith Mickens, and Monica Morgan, the widow of UAW Vice President General Holiefield.

“Today’s conviction of yet another senior UAW official further exposes the dishonorable scheme between UAW officials and Fiat Chrysler executives to corrupt the collective bargaining process at the expense of rank and file union members,” United States Attorney Matthew Schneider said in a release. “The conviction reveals that part of this scheme involved the wrongful use of UAW funds for extravagant meals, entertainment, golf, and travel for little, if any, union-business purpose.”