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Jones charge is ‘straightforward embezzlement case,’ expert says

March 6, 2020
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Schneider on Thursday also discussed the possibility of charges under the Racketeer Influenced and Corrupt Organizations Act, known as RICO.

What is RICO?

The criminal information states that Jones and other UAW officials are in violation of Title 18, the use of a facility of interstate commerce and of racketeering activity.

The act defines 35 offenses of racketeering including bribery, and allows the prosecution of all individuals involved in a corrupt organization.

The union also was implicated in a federal RICO suit filed last year by General Motors against Fiat Chrysler Automobiles. The suit contended that the late FCA CEO Sergio Marchionne bought the UAW’s support of an acquisition of GM. FCA denies the charges and is seeking to dismiss the case.

Henning also discussed the forfeiture allegations in the criminal information.

The government has the ability to take anything and everything from Jones, he said. They are going to be very aggressive, Henning said. Jones, 62, faces a maximum of five years in prison and a fine up to $250,000. He is cooperating with the government.

The UAW investigation isn’t over yet and the FBI continues to investigate other former UAW officials, The Detroit News reported.

Meanwhile, the UAW’s current leadership says it continues to reform the union’s operations.

In an interview from November, President Rory Gamble told Automotive News: “We need to do more in bringing integrity back to this union and regaining our members’ trust. We can’t do too much to protect this union. This organization is too important to too many people to fail.”

Erik Gordon, a law professor at the University of Michigan, said he hopes this is the end of the line of corruption at the UAW, but it’s hard to believe it will be.

He said: “You hope this is the end and the union can move on with being a union.”

Reuters contributed to this report.

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