FBI, IRS Raid United Auto Worker President’s Home in Massive Corruption Case


The home of United Auto Worker President Gary Jones was raided ion Canton Township, Michigan, this week as part of a massive FBI and IRS corruption case.

The FBI and IRS were working in cooperation with Department of Labor’s Office of Inspector General and was part of a series of raids across the country.

“Raids were also conducted at the Black Lake Retreat in Chedoygan and at the Corona, California home that is believed to belong to former UAW President Dennis Williams,” according to WXYZ.

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Jones’ home was one of several targets hit by federal agents Wednesday, according to FBI spokeswoman Mara Schneider. Other locations in the multistate raid included the California home of former UAW President Dennis Williams as well as the union’s training center, golf resort and a conference center called Black Lake.

Additional locations, Schneider confirmed, included a local UAW office in Missouri, where Jones previously served as regional director, and the Wisconsin home of Williams’ former administrative assistant, Amy Loasching.

The raids are part of a growing investigation into the embezzlement of millions of federal dollars meant for training centers. The investigation has expanded to officials at Fiat Chrysler, the USA and General Motors.

The probe has already led to the convictions of five people at the UAW and three at Fiat Chrysler. Most notably, the head of Fiat Chrysler’s labor relations, Alphons Iacobelli, was sentenced last year to 5½ years in prison.

Michael Grimes, a retired senior official with the union’s GM division, was also hit with charges on the case, including wire fraud and money laundering for allegedly receiving $2 million in kickbacks from UAW vendors.

The UAW put out a statement about the raid:

The UAW and President Gary Jones have always fully cooperated with the government investigators in this matter. As the leader of the UAW, President Jones is determined to uncover and address any and all wrongdoing, wherever it might lead. There was absolutely no need for search warrants to be used by the government today — 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 UAW will continue to cooperate with the government in its investigation, as we have been doing throughout.

Trust in UAW leadership is never more important than during the bargaining process, when profit-laden auto companies stand to benefit from media leaks, false assumptions, and political grandstanding. The sole focus of President Jones and his team will be winning at the bargaining table for our members.

Follow Warner Todd Huston on Twitter @warnerthuston.

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