U.S. Prosecutors Reach Deal With UAW to End Corruption Probe

(Bloomberg) -- Federal prosecutors have reached a tentative deal with the United Auto Workers to conclude a multiyear investigation into corruption at the labor union, which led two of its former presidents to plead guilty to conspiracy.

U.S. Attorney Matthew Schneider, who heads the probe, will announce the proposed deal in downtown Detroit on Monday at 1 p.m. New York time, prosecutors said in a statement. He will appear with Rory Gamble, who took over as the UAW International’s president a year ago, they said.

Facing a threatened government takeover of the union, Gamble started meeting with prosecutors in June to discuss ethics reforms, including the possible appointment of an independent monitor to prevent future corruption. Similar monitors at the International Brotherhood of Teamsters stepped back in February after more than three decades.

More than a dozen people have been convicted in the sweeping U.S. investigation into embezzlement and illegal payoffs to UAW officials by Fiat Chrysler Automobiles NV executives. Two former heads of the union have plead guilty to embezzlement, including ex-chief Dennis Williams in September and his successor, Gary Jones, in June.

A representative for the union declined to comment ahead of a planned joint statement with the government.

The UAW represents more than 400,000 active members and more than 580,000 retired members in more than 600 local U.S. unions.

©2020 Bloomberg L.P.