Former Fiat Chrysler Automobiles labor chief Alphons Iacobelli has been indicted by a Grand Jury for his alleged role in a conspiracy to line the pockets of United Auto Workers (UAW) union officers and employees with more than $1.2 million in funds and gifts, The Detroit News reports. Iacobelli, 57, was a top labor negotiator at FCA before leaving suddenly in 2015 ahead of contract negotiations with the UAW.
Mr. Iacobelli is charged with criminal violations of the Labor Management Relations Act, for allegedly playing a part in making prohibited payments to now-deceased UAW VP General Holiefield, his wife Monica Morgan, and others from 2009 to 2014. The payments came from the UAW-Chrysler National Training Center, authorities say.
Iacobelli is accused of lining his own pockets, too. He allegedly used more than $1 million from the same training center to enrich himself, spending the funds on things like a swimming pool, a Ferrari 458 Spider, hundreds of thousands of dollars in home improvement projects, and lease of a private jet.
Fiat Chrysler and the UAW have not yet commented on the indictment, says The Detroit News, but Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service – Criminal Investigation Division, did. “Today’s indictment alleges an outrageous abuse of power and misuse of this Chrysler executive’s position of trust,” he said in a statement. “The diverted funds from the [National Training Center] could have and should have been used to benefit Chrysler employees.
“IRS Criminal Investigation and our law enforcement partners are particularly committed to stopping those individuals who use double fraud schemes to defraud corporate funds, bribe others for their own gains and cushion their personal wallets.”
Iacobelli’s last position of record is with General Motors, as executive director of labor relations, as of January 2016. According to the report, it’s unclear if he’s still with the company.