DETROIT -- The late Sergio Marchionne, former CEO of Fiat Chrysler Automobiles, in 2016 denied to federal investigators that he gave a top UAW official an expensive Italian watch years before, a Detroit newspaper reported Thursday.
It is the latest revelation to emerge in the widening $4.5 million scandal involving the automaker, the union and the UAW-Chrysler National Training Center.
Marchionne gifted then-UAW Vice President General Holiefield the Terra Cielo Mare watch and failed to disclose it to federal investigators, The Detroit News reported, citing two sources familiar with the matter.
Marchionne's denial of the gift when questioned by investigators could add more fodder to the corruption scandal. The sources told The Detroit News that Marchionne told investigators that he did not give UAW leaders valuable items.
The sources told the newspaper that federal investigators confronted Marchionne with evidence he had given Holiefield the watch in February 2010. Terra Cielo Mare produced custom-made, limited-edition timepieces with the Fiat logo emblazoned on the dial since at least 2006, worth several thousand dollars.
It is unclear whether investigators informed Marchionne of a note that came with the watch, which read, according to federal court records: "Dear General, I declared the goods at less than fifty bucks. That should remove any potential conflict. Best regards, and see you soon." Records indicate only that the note was written by an FCA executive, the newspaper reported.
There was no immediate comment from FCA about the report.
Authorities say a series of items were purchased from FCA for union labor leaders to curry favor with the UAW amid contract negotiations. Marchionne was pictured several times over the years at events with UAW leaders, including a well-publicized hug of former UAW President Dennis Williams.
Marchionne died July 25 and never was charged in the scandal, though charges potentially could have included making a false statement to investigators and violating a federal labor law barring employers from giving union officials money and valuable items, The Detroit News said.
Holiefield, who died in 2015, has been implicated in the scandal. His widow, Monica Morgan, pleaded guilty to one count of failing to file a tax return. She was sentenced to 18 months in prison in July.
Alphons Iacobelli, FCA's former labor relations chief, is scheduled to be sentenced Aug. 27. He is the highest-ranking company official charged in the scandal to date.
Five others are charged: former FCA financial analyst Jerome Durden; former FCA employee Michael Brown; ex-UAW Associate Director Virdell King; UAW official Keith Mickens; and Nancy Johnson, a former top aide to ex-UAW Vice President Norwood Jewell, who was charged with misusing funds but has not yet been arraigned. Jewell has been implicated in the scandal but not formally named as a conspirator by investigators.
You can reach Alexa St. John at astjohn@crain.com