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Former UAW official charged in Fiat Chrysler payoff probe

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DETROIT: A former senior official at the United Auto Workers trade union was charged on with conspiring with other union officials to accept improper payments from Fiat Chrysler Automobiles NV officials over a four-year period.


Virdell King, 65, of Detroit, who a union official until February 2016, was charged with conspiracy to violate labour laws in US District Court in Detroit.


King was one of the senior UAW officials responsible for negotiating and administering the contract between Fiat Chrysler and the union, the government said.


A lawyer for King, John Shea, declined to comment on Friday. King is the fourth person charged in the investigation.


The Justice Department charged King with accepting thousands of dollars in designer shoes, clothing, jewellery, luggage and other personal items, all of which were purchased using credit cards issued through the UAW-Chrysler National Training Centre (NTC). She also made at least $40,000 in purchases for other UAW officials, the government said.


The government has said Jerome Durden, a former Fiat Chrysler official, conspired to divert over $4.5 million in NTC funds intended for UAW member training and education. He pleaded guilty on August 8 to conspiracy and preparing false tax returns and faces up to 37 months in prison under a plea deal.


A former Fiat Chrysler vice president of employee relations, Alphons Iacobelli, was charged last month with making $1.2 million in improper payments to a former union vice president and his wife. He has pleaded not guilty.


According to court documents, Iacobelli told senior UAW officials they could use the NTC credit cards to make personal purchases, stating “if you see something you want, feel free to buy it.”


The government said in court documents at least five senior UAW officials made personal purchases with NTC credit cards. — Reuters


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