Former United Auto Workers President Gary Jones pleads guilty to embezzlement, racketeering, and tax evasion

Posted at 3:09 PM, Jun 03, 2020
and last updated 2020-06-03 17:42:10-04

(WXYZ) — Former United Auto Workers President Gary Jones has pleaded guilty to conspiring to embezzle UAW dues, conspiring to us a facility of interstate commerce to aid racketeering, and conspiring to defraud the United States.

Jones admitted to embezzling over $1 million in UAW dues, furthering racketeering and evading taxes.

During today's hearing, Jones admitted to concealing personal spending in the costs for UAW conferences held in both Palm Springs and Coronado California, as well as Lake of the Ozarks, Missouri. He admitted to using UAW money to pay for golf clubs, private villas, cigars, green fees, and high-end liquor and meals.

Jones also admitted to assisting in a conspiracy to embezzle fund from the United Auto Workers Midwest Community Action Program, as well as impeding the IRS from collecting taxes, and causing the UAW to file false tax returns with the IRS.

Under the conspiracy charges, Jones faces up to 10 years in prison and a fine of $250,000. However, under the plea agreement, he will face a sentencing guideline of between 46 and 57 months in prison.

Jones also agreed to forfeit almost $150,000.

Jones is the 14th person convicted in the federal investigation into corruption in the United Auto Workers.

“With UAW President Gary Jones’ guilty plea today, we move into a new phase of the Justice Department’s investigation of the UAW. While our criminal cases and the investigation of criminal conduct by individuals and entities continue, we will shift our focus to reforming the UAW so it serves the working men and women of the union first and foremost. I look forward to meeting with UAW President Rory Gamble as soon as possible to have these important discussions,” said US Attorney for the Eastern District of Michigan Matthew Schneider.